IRAQI GAS DEVELOPMENT PLANS AN OVERVIEW SABAH H. AL-JOWHAR MANGER OF GAS DEPARTMENT PLANNING DIRECTORATE, MINISTRY OF OIL - IRAQ This views expressed in this presentation are those of it’s author and do not necessarily represent the policy or views of the Ministry of Oil of the Republic of Iraq

Main Topics Introduction Gas Reserves Gas Utilisation Strategy Short Term Plan Rehabilitation to Pre-War Capacities Medium Term Plan Utilisation of Associated Gas from New Projects Early Production for Power Generation Long Term Plan Full Development of Oil & Gas Fields Surplus Gas Utilisation Conclusions

Proven Gas Reserves is around 3150 BCM THE ETERNAL FIRE AT KIRKUK

Gas Utilization Strategy Gas Master Plan Minimise Gas Flaring Rehabilitation of existing gas plants Construction new gas utilization projects Maximizing liquid recovery from natural gas to enable LPG export Substitution of natural gas for power generation, instead of crude oil & oil products Surplus Gas Utilisation Conversion to: GTL , Chemicals & Fertilizer Gas Storage in depleted reservoirs Gas Export

Pre - War Design Capacities Gas Processing Plants NORTH GAS PLANT (535 MMSCF/D) DRY GAS ( 400 MMSCF/D) LPG (3340 T/D) N-GASOLINE ( 1050 T/D) SOUTH GAS (1050 MMSCF/D) DRY GAS (760 MMSCF/D) LPG (12100 T/D) N-GASOLINE (4200 T/D)

Pre - War Gas Production & Utilisation

Pre - War Dry Gas Sector Consumption

Present Status – 2005 (in mmscf/d) Natural Gas Daily Production = 1164 mmscf/d Natural Gas Daily Flare = 694 mmscf/d (~60 %) NOC PRODUCED, 228 NOC UTILIZED, 191 FLARED, 694 FREE, 174 SOC UTILIZED, 279 SOC PRODUCED, 936

Requirements to Restore Capacities Rehabilitation of the following: Gas Gathering System (Gas Compressor Stations) at Southern Field Region (Rumaila) Kirkuk Area Second Train in North Gas Plant Refrigerating Unit at NGL Plant North Rumaila The Two NGL Trains at Khor Al Zubair

Gas Production - Present NGL 2,3 LPG 3 AMMARA BASRAH SIBA MANSURIA JERA PIKA NAU DUMAN TEL GHAZAL NAFT KHANA KASHM AHMER QUMER GILABAT KIRKUK BAI HASSAN KHABAZ JAMBUR AJIL KORMOR CHEMCHEMAL HAMRIN GHARRAF RAFIDAIN NASRIYA BUZURGAN FAUQI ABU GHIRAB MAJNOON NAHR UMER 128 108 22 105 172 10 18 HALFAYAH 25 BAGHDAD 0 GAS 0 GAS AHDAB KUT AKKAS N.RUMAILA W.QURNA TUBA RATAWI LUHAIS SUBBA S.RUMAILA ZUBAIR 198 185 36 390 123 932 GAS LPG EXPORT TERMENAL MOSUL NGL+LPG SULAYMANIYAH 258 GAS 0 ADDITIONAL ERBIL ANBAR NGL 1 NGL +LPG direct injected in network + power generation existing capacity 350 DIYALA Gas Production - Present Rehabilitation of gas facilities and gas net work to pre-war status LPG demand ~ (1.8 MTPA) LPG imported for the domestic needs LEGEND DRY GAS P/L LPG P/L PROPOSED NEW NGL/LPG RAW GAS P/L TOWN EXISTING GAS PLANT AVERAGE PRODUCTION OF LPG 0.7 MTPA IMPORT ABOUT 1.1 MTPA

Medium Term Plan Utilisation of Mishrif Sour Gas (~65 mmscf/d) from N Rumaila Utilisation of (~ 200 mmscf/d) associated gas from Zubair Field, to be implemented in two phases Utilisation of West Qurna associated gas (~150 mmscf/d)

NGL 2,3 LPG 3 POWER STATION AMMARA BASRAH SIBA MANSURIA JERA PIKA NAU DUMAN TEL GHAZAL NAFT KHANA KASHM AHMER QUMER GILABAT KIRKUK BAI HASSAN KHABAZ JAMBUR AJIL KORMOR CHEMCHEMAL HAMRIN 50 GHARRAF RAFEDIN NASRIYA BUZURGAN FAUQI ABU GHIRAB MAJNOON NAHR UMER 0 GAS 128 108 22 105 172 10 18 HALFAYAH 25 BAGHDAD 0 GAS AHDAB KUT AKKAS N.RUMAILA W.QURNAH TUBA RATAWI LUHAIS SUBBA S.RUMAILA ZUBAIR 198 185 36 390 123 932 GAS LPG EXPORT TERMENAL MOSUL NGL+LPG SULAYMANIYAH 450 GAS 0 ADDITIONAL ERBIL ANBAR NGL 1 NGL +LPG direct injected in network + power generation existing capacity 1050 LPG 2.6MTA LPG 1.26 MTA TOTAL LPG 3.8 MTA 160 MW 180MW EXPORT LPG 2 MTA 200 MW DIYALA Medium Term After Rehab of existing natural gas facilities, and construction the new gas projects Construct new Fast Track Power Generation Projects (total 940 MW) using: Associated Flared Gas Partial Development of Gas Fields LEGEND DRY GAS P/L LPG P/L PROPOSED NEW NGL/LPG RAW GAS P/L TOWN EXISTING GAS PLANT

Long Term Plan Associated Gas Utilisation Gas Fields Development Power Generation Development of New Oil Fields Leading to Increased Associated Gas Marketing of gas products, LPG, Natural Gasoline Chemchemal Jeria pika Mansuriya Akkas Siba

Crude Oil Production Plan Discovered Fields 73 Fields Present Producing Fields 24 Fields Present Infrastructure Capacity ~ 3.5 mm bbl/day Future Plan to increase production capacity to 6 mm bbl/day: First Stage: Increase production from 3.5 to 4.0 mm bbl/day Development of Producing Reservoirs, Partial Development of Discovered but Undeveloped Fields Second Stage: Addition of 2 mm bbl/day through Cooperation with International Companies According to the Ministry Frame Work Agreement Models (Production Sharing, Service Contracts etc.)

Associated Gas Production - 6 mm bbl/day Plan 1000 2000 3000 4000 5000 6000 1 2 3 4 5 6 7 8 9 10 YEARS GAS PRODUCTION CAPACITY Mmscf/day PRODUCING FIRST STAGE SECOND STAGE Associated Gas Produced from Different Crude Type 1000 2000 3000 4000 5000 6000 1 2 3 4 5 6 7 8 9 10 YEAR LIGHT REGULAR MEDIUM HEAVY GAS PRODUCTION CAPACITY Mmscf/day

Gas Production from Northern Gas Fields (incl Akkas) 200 400 600 800 1000 1200 1400 1600 1800 2000 1 2 3 4 5 6 7 8 9 10 YEAR Mmscf/day JAMBUR AJIL KORMOR MANSURIA JARIA PIKA KASHM ALAHMR CHEMCHEMAL AKKAS

NGL 2,3 LPG 3 NGL +LPG POWER STATION AMMARA BASRAH SIBA MANSURIA JERA PIKA NAU DUMAN TEL GHAZAL NAFT KHANA KASHM AHMER QUMAR GILABAT KIRKUK BAI HASSAN KHABAZ JAMBUR AJIL KORMOR CHEMCHEMAL HAMRIN 300 100 175 75 5 GHARRAF RAFIDAIN NASRIYA BUZURGAN FAUQI ABU GHIRAB MAJNOON NAHR UMER 211 74 192 1127 GAS 115 116 22 78 172 200 18 15.2 22.8 HALFAYAH 164 577 940 257.2 1517 GAS NGL- LPG BAGHDAD 125 GAS 124 72 190 386 GAS AHDAB 45 KUT POWER AKKAS N.RUMAILA W.QURNA TUBA RATAWI LUHAIS SUBBA S.RUMAILA ZUBAIR 382 492 29 284 30 448 170 1858 GAS LPG EXPORT TERMENAL MOSUL MISAN NGL+LPG SULAYMANIYAH 530 GAS 400 ADDITIONAL ERBIL ANBAR NGL 1 LPG 2.6 MTA LPG 3.15 MTA LPG 0.7 MTA LPG 1.08 MTA LPG 4.24 MTA Longer Term Expected Natural Gas production, associated gas at 6 mmbbl/d from crude oil and free gas from Gas fields Expected LPG production Total LPG Production Potential Low Case = 13 MTPA High Case = 17.3 MTPA Maximum Local Consumption = 4 MTPA (2010 - 2015) LPG Export Potential Base Case = 9 MTPA High Case = 13.3 MTPA LEGEND DRY GAS P/L LPG P/L PROPOSED NEW NGL/LPG RAW GAS P/L TOWN EXISTING GAS PLANT LPG 5.55 MTA LPG 5 MTA

Power Generation Capacity & Demand Pre 1990 Installed Power Generation Capacity 8,500 MW Pre – War Power Generation Capacity ~ 5,000 MW Present Status: Power Stations operate at < 60% of Capacity All Existing Power Plant Require refurbishment & Overhaul to return to Pre 1990 Levels

Power Generation Fuel Forecast (to 2010) Development of Non Associated Gas Fields ~ 1925 mmscf/day Associated Gas Production (at 3.5- 4 mmbbld) ~ 2000 mmscf/day 8000 MW 8400 MW ELECTRICAL POWER DEMAND 17 000 MW 6600 MW 1300 MW Fuel Oil Produced at Refinery 260,000 bbl/day Crude Oil 50,000 bbl/day

Gas Fields Development Projects Full Development Fast Track Project Estimated Reserves (Bcm) Production Potential (mmscf/day) Producing Wells Production Capacity Existing Drilling Mansuria 90 – 110 300 15 50 4 Kormor 50 – 70 200 6 Jeria Pika 25 – 45 100 1 2 Khashm Ahmer 40 – 60 16 3 Chemchemal 12 (H) 3 (H) Akkas 120 – 130 400 14 Siba 20 – 35 125 10

Gas Balance Forecast 6 mmbbl/day Crude Fertiliser GTL Export Associated Gas 5000 mmscf/day Surplus Gas 1400 – 2800 mmscf/day Free Gas 1925 mmscf/day GTL Petrochemicals Estimated Consumption ~ 4100 mmscf/day ~ 1425 mmscf/day Gas Injection (if deemed necessary, TBC)

Conclusion Iraq needs an Integrated Energy Masterplan in addition to Gas Masterplan Reducing Gas Flaring for Power Generation Maximising Liquid Recovery to enable LPG / Condensate Export Gas Fields Development in Two stages, Early Production Projects for power generation and localised consumption Full Development Jointly with International Companies Techno-Economic Studies to evaluate the Surplus Gas for: Further Domestic Needs, Petrochemical, GTL, Fertiliser, Export