AMMAN — Director General of the National Petroleum Company (NPC) Mohammad Khasawneh on Sunday welcomed the Cabinet decision allowing the company to retain JD3.4 million in government returns from 2024, to support key gas development projects at the Risha gas field.

 

Khasawneh stressed that the decision is critical to enabling the company to implement its strategic plan to achieve energy self-sufficiency.

 

The plan aims to boost daily natural gas production to 418 million cubic feet by 2030, through a three-pillar approach focused on expanding drilling operations, upgrading infrastructure, and integrating with regional gas networks, the Jordan News Agency, Petra, reported.

 

The retained funds will be used to drill 80 wells in the Risha field as part of the first phase of development, Khasawneh said adding that this move comes under the production-sharing agreement between the government and NPC, which grants the company the right to temporarily retain the state's share of revenues to reinvest in production capacity expansion.

 

Khasawneh noted that the company operates under a concession framework, which stipulates equal revenue sharing between the government and NPC after cost recovery.

 

He stressed that achieving the 2030 target requires significant upfront investment, particularly over the next three years, that far exceeds current revenues, highlighting that the government has agreed to temporarily forgo its share to bridge the funding gap, starting with the 2024 allocation.

 

He also explained that the company’s strategic plan includes drilling 145 wells between 2025 and 2030. "NPC has already launched the procurement process to contract international companies for turnkey drilling services using three rigs, he said.

 

"The prequalification phase has been completed, and shortlisted companies have received the tender documents. Technical and financial bids are currently being prepared, with the initial 80-well phase subject to expansion."

 

In parallel with drilling activities, NPC is advancing the second pillar of its plan: infrastructure development. This includes upgrading gas processing stations and constructing pipelines to link production wells with treatment facilities.

 

The third pillar focuses on connecting the Risha field to the Arab Gas Pipeline, allowing gas to reach major consumption hubs across Jordan, from Aqaba in the south to the northern border, thus maximising distribution efficiency and national benefit, he said.

 

Currently, NPC supplies gas primarily to the Risha power plant. However, the company has begun delivering compressed natural gas (CNG) to the industrial sector, with two companies already receiving supply and a third expected to start soon, via Jordan Gas Company and Watani Company.

 

Additionally, two new gas compression and liquefaction stations are under development, aiming to extend gas delivery to a broader range of industrial clients.

 

Khasawneh said that the expansion would significantly boost the company’s revenue, enhance its financial sustainability, and reduce energy costs for the industrial sector by 30 to 60 per cent.