Amman: The Cabinet has approved a decision allowing the National Petroleum Company (NPC) to retain JD3.4 million in treasury dues from the 2024 fiscal year to support its strategic development projects, particularly those aimed at expanding the Risha gas field, according to the company's Director General, Mohammad Khasawneh. Khasawneh said the move is a critical step toward achieving energy self-sufficiency, adding that the company has developed a three-pronged strategy to raise daily gas production to 418 million cubic feet by 2030.
According to Jordan News Agency, under the production-sharing agreement between the government and NPC, the Cabinet agreed to allocate the state's share of gas revenues to the company to help execute its expansion plan. This includes drilling 80 wells as part of the initial phase aimed at scaling up domestic output. He noted that NPC operates under a concession law that stipulates an equal division of gas sale revenues between the government and the company, after deducting operational costs.
Speaking to the Jordan News Agency (Petra), Khasawneh explained that the ambitious production plan, which the government has endorsed, requires significant investment exceeding the company's current revenues, especially over the next three years. As a result, the government expressed its willingness to cover the anticipated funding gap, beginning with the 2024 allocation.
Outlining the company's plan, Khasawneh said it revolves around three key pillars. The first involves drilling 145 wells between 2025 and 2030 to reach the targeted output level. NPC has already started contracting procedures with international firms to provide turnkey drilling services using three rigs. The initial tendering phase is complete, with several companies qualified and tender documents distributed. Technical and financial bids are currently being prepared for the first 80 wells, a number that may increase depending on project needs.
The second track focuses on building the necessary infrastructure to handle the increased gas output. This includes expanding gas processing facilities and constructing new pipelines to connect wells to the treatment plant. The third pillar aims to link the gas output to the Arab Gas Pipeline, which runs from Aqaba in the south to the far north of Jordan, enabling distribution to key consumption points across the country.
Currently, NPC supplies gas exclusively to the Risha Power Station, the company's primary buyer. However, compressed natural gas (CNG) deliveries to the industrial sector have begun, with two companies already receiving gas and a third expected to follow suit shortly via Jordan Gas Company and Watani Gas. Two additional companies are preparing to launch gas compression and liquefaction facilities to serve more industrial clients. Khasawneh said this step will enhance the company's revenue base, strengthen its ability to fund operations, and cut energy costs for industrial consumers by 30% to 60%.