The Ministry of Energy and Mineral Resources of the Hashemite Kingdom of Jordan signed a deal with Canada’s Global Oil Shale Holdings Ltd. (GOSH) to study the economic feasibility of an oil shale project Jordan.
GOSH is an oil shale exploration and development company focused on the Hashemite Kingdom of Jordan. On September 17, the company’s general manager, David Argile, signed a 24-month Memorandum of Understanding with Energy Minister Alaa Batayneh granting an estimated 250 square kilometer area for study in GOSH’s main focus areas, Attarat Umm Ghudran and Isfir Al Mahatta in the central and southern regions of the country.
The signing of the agreement begins the 25-year, $32 billion mega-project aimed at fueling up to 25% of Jordan’s energy needs by exploiting its unconventional resources.
Under the agreement, GOSH is set to launch exploration in Al Attarat where a majority of the country’s estimated 40 billion tonne oil shale reserves are located. The goal is to produce 8,000 barrels of oil within the next two years. Ultimately, the target is 50,000 barrels per day.
"We are very pleased to sign this MOU with the Minister of Energy and Mineral Resources and will move quickly into an aggressive drilling campaign and exploration phase so that the company can delineate the area it plans to retain for development. We intend to complete our preliminary assessment over the next twelve months," said GOSH director, Dominic Traynor, in a prepared statement.
The company engaged Washington DC-based INTEK Inc. to assist with the initial techno-economic feasibility assessment and preparation of MOU application and proposal to the NRA for the two blocks. INTEK will continue working with GOSH as in-country management and technical lead for the next phase of this project. INTEK President, Khosrow Biglarbigi said, "There is a tremendous opportunity within Jordan to develop a viable oil shale industry, and we are pleased to be working with GOSH to achieve this outcome."
After completing the term, the company will enter into negotiations with the Jordanian government to conclude an agreement to exploit oil shale resources within the two areas.