GULF OIL & GAS EXPLORATION COMPANY (GULFOGEC) was established as a wholly owned subsidiary of the GULF OIL EXPLORATION GROUP for upstream oil and gas operations. Gulfogec and its affiliate signed agreements in May 2008 with Kurdistan Regional Government of Iraq for the development of its substantial gas resources, including the launch of the Kurdistan Gas City.
Agreements include the development, processing and transportation of natural gas from the Khor Mor and Chemchemal Gas Fields, in order to provide natural gas supplies to fuel domestic electric power generation plants near Erbil and Suleymania.
Gas deliveries to the Erbil Power Station commenced on 6th November 2008 via the 180km pipeline within a record period of 15 months.
The Benefits to the Iraqi people include urgently needed electricity to 5 million Iraqi citizens alongside a saving of USD$3.5billion per year from the displacement of liquid fuel import costs.
In March 2007, Gulfogec and its affiliates entered into agreements with the Kurdistan Regional Government (KRG) of Iraq for the development of the substantial gas resources in the region. Under the terms of those agreements, the Kurdistan Regional Government, Gulfogec and its affiliates will jointly review the natural gas resources in the Kurdistan Region of Iraq with a view to the Optimization, development and subsequent utilization of the substantial resource.
In addition, GULFOGEC and its affiliates were appointed to develop process and transport natural gas from the Khor Mor Gas Field, in order to provide natural gas supplies to fuel domestic electric power generation PLANTS IN Erbil and Chemchemal. Further development of the gas reserves are planned to supply natural gas as feedstock and energy for local industries and also for export.
In May 2010, GULFOGEC entered into strategic partnership agreements with OMV and MOL for the joint development of the Khor Mor and Chemchemal Gas Fields. OMV, Austria’s largest listed industrial company, MOL Hungarian Oil and Gas Company, Hungary’s largest listed company, are two of Europe’s most dynamic integrated Oil and Gas Company, companies and the original architects of the Nabucco gas pipeline project. OMV and MOL each acquired a q0% equity interest in Pearl Petroleum Limited, the company which holds GULFOGEC interests in the Kurdistan Region of Iraq.
The first stage of the Khor Mor field development involving the hook up, testing and re-commissioning of existing gas wells, acquiring2D seismic, installing gas separation and treatment facilities and installation of 180kms of pipeline was completed in record time of 15 months and first gas deliveries to Erbil commenced in 2009. The gas is pumped via the 180kms pipeline to two power plants in Erbil and Suleymania. The pipeline passes close to other gas fields and will have spare capacity to transport additional volumes of gas at a later stage. The second stage involves the installation of a 2- train liquid petroleum gas (LPG) plant, which is scheduled for completion in the first half of 2011. The ultimate gas production capacity of the LPG plant is 300Mmscfdl, and further processing capacity will be added to handle additional gas quantities as they become available. The total investment of the Khor Mor development is over US$700 Million.
The Chemchemal appraisal programme includes acquiring seismic data, re-entry and re-testing of an existing well and drilling 2 appraisal wells. Chemchemal gas field is a large elongated anticline situated in the folded Zagros foreland basin. The structure is approximately 70kms long by 5kms wide, and is made up of three domes. The estimated cost and duration of this initial appraisal work programme is approximately US$65million and 12 months respectively. A development programme for full field development will be proposed based on the results of the appraisal programme.
These projects comprise the largest private sector oil and gas project to the implemented in Iraq for several decades. The gas produced is supplying the urgently needed electricity for over 5 million Iraqi citizens. In addition, this will provide Iraq with savings of approximately US$3Billion a year from the displacement of liquid fuel import costs.
The Company also plans to launch a multi billion refinery Gas city in Turkmenistan, a major gas utilization industrial complex designed to promote private sector investment in a variety of gas related industries that will benefit the Turks people through job creation, training and promotion of general economic activities.
Articles of Association
The Articles of Association for the Gulf Oil & Gas Exploration Company contains the following sections:
One: The Basics of the Company’s Foundation
Two: The Company’s Objectives
Three: The Company’s Capital
Four: The Board of Directors
Five: The General Assembly
Six: The Company’s Accounts
Seven: The Closing and Liquidation of the Company
Eight: The Final Provisions
The objectives of establishing the Company are:
1. Conducting operations related to exploration, drilling for prospective oil and gas as well as field’s development, production of oil and gas besides transporting, storing and delivering them, processing of oil and gas as well as exporting them.
2. Carrying out refineries operations, refining petroleum, manufacturing refining outputs in the form of industrial products as well as transporting, storing, exporting and distributing products from these operations.
3. Conduct all supporting operations and works that help in carrying out the above mentioned operations in 1 and 2, and implementing them appropriately.
4. Marketing and selling the State share of oil and gas, in the form of crude oil or after manufacturing it as derivatives or industrial products.
5. Holding the State share of any existing assets, any underway assets and any assets that may arise in future for utilizing the joint natural resources.
All activities shall be in accordance with the applicable laws, policies and in agreement with the existing laws.