UK company to explore gas, oil in Al Azraq, Al Sarhan

AMMAN — The Energy Ministry on Tuesday awarded the tender for exploring oil and gas in the areas of Al Azraq and Al Sarhan to the UK’s Southern Procurement Services Company.

The company will soon enter the negotiation phase for the articles of the joint agreement with the Jordanian government, which paves the way for moving forward with the required procedures to ratify the agreement by the Cabinet and Parliament, the Jordan News Agency, Petra, quoted Energy Minister Hala Zawati as saying on Tuesday. 

Once the law on the joint-production agreement is officially published, the company will conduct the necessary exploration studies, digging wells and analysing seismic activity in Al Azraq and Al Sarhan in accordance with a work plan to be agreed upon by the government and the company. 

As for the government's commitments during the exploration phase, Zawati said that the government will not carry any financial burdens, but the parties to the accord will commit to certain joint-production percentages that are to be agreed upon during the phase of commercial production.

Such joint-production articles are adopted by the government for all oil and gas exploration projects in the Kingdom, according to Zawati. 

Zawati said that the Energy Ministry announced at the end of 2017 that it is seeking interested companies to explore oil and gas in six areas open for exploration, which include Al Azraq, the Dead Sea, Al Jafer, northern hills, Al Safawi and Al Sarhan. 

The government previously contracted the National Petroleum Company to explore the eastern Al Safawi area as part of a joint-production agreement, in addition to the company’s work to increase production from the Rishah Field.