Jordan's Commercial Oil Shale Exploitation Jordan's Commercial Oil Shale Exploitation StrategyStrategyPart 1 Part 1

By: Eng. Munther S. BesiesoBy: Eng. Munther S. BesiesoSenior Technical AdvisorSenior Technical Advisor

Ministry of Energy and Mineral ResourcesMinistry of Energy and Mineral Resources

Part One (Eng. Munther Part One (Eng. Munther BsiesoBsieso))•• Energy Situation in Jordan Energy Situation in Jordan •• Jordan's Oil Shale Resources Jordan's Oil Shale Resources •• Oil Shale Previous Work Oil Shale Previous Work •• Current Activities Current Activities •• The Role of Oil Shale in the Kingdom's Energy The Role of Oil Shale in the Kingdom's Energy

Master Plan (The Strategy)Master Plan (The Strategy)Part Two (Part Two (Dr.TomDr.Tom Sladek Sladek -- BehreBehre DolbearDolbear & & IdRCIdRC) )

(Jordan Oil Shale Technical Assistance Project [JOSTA])(Jordan Oil Shale Technical Assistance Project [JOSTA])•• Technology Assessment Technology Assessment •• Economic Modeling Economic Modeling •• Evaluation of Environmental Effects and Water Evaluation of Environmental Effects and Water

Requirements Requirements

Presentation OutlinePresentation Outline

F u e l t y p e R e s e r v e s ,b i l l io nB l.O .E

P e r io d o ft im e ( y e a r )

O il 1 0 1 2 4 4

N a tu r a l g a s 7 5 0 6 7

C o a l 3 7 4 5 2 2 3

O il s h a le 1 5 0 0 -3 4 0 0 -

T a r s a n d 1 6 5 0 -

ItIt is generally agreed is generally agreed that worldwide that worldwide petroleum supply will petroleum supply will eventually reach its eventually reach its productive limit, peak, productive limit, peak, and begin a long term and begin a long term declinedecline

Cost of oil has risen in a decade from $15 per barrel to $83 at Cost of oil has risen in a decade from $15 per barrel to $83 at presentpresent

This gives a clear economic interest for Jordan to have theThis gives a clear economic interest for Jordan to have theoil shale developed as a possible strategic source of energyoil shale developed as a possible strategic source of energy

•• High oil prices in international markets will improve economics High oil prices in international markets will improve economics of shale of shale oil, drive development of technology, and reduce production costoil, drive development of technology, and reduce production costss

••Technology readiness and production costs will Technology readiness and production costs will determine when an oil shale industry will emerge determine when an oil shale industry will emerge

•• Oil Shale ResourcesOil Shale ResourcesIn JordanIn Jordan

What is Oil Shale?What is Oil Shale?

The term The term oil shale oil shale generally refers to any generally refers to any sedimentary rock that contains solid sedimentary rock that contains solid bituminous materials that are released as bituminous materials that are released as petroleumpetroleum--like liquids when the rock is like liquids when the rock is heated. To obtain oil from oil shale, the heated. To obtain oil from oil shale, the shale must be heated and resultant liquid shale must be heated and resultant liquid must be captured. This process is called must be captured. This process is called retortingretorting, and the vessel in which retorting , and the vessel in which retorting takes place is known as a takes place is known as a retortretort

Jordan 4.2%Jordan 4.2%

•• Jordan contains massive amounts of oil held in oil Jordan contains massive amounts of oil held in oil shale, distributed over about 65% of its land shale, distributed over about 65% of its land

•• Recoverable energy from these highRecoverable energy from these high--grade deposits grade deposits may be more than 80 billion barrels of crude oil may be more than 80 billion barrels of crude oil

JordanMoroccoEstoniaChinaEuoropeU.S.ABrazilC.V ( k cal/kg1800110020001500198618001340oil content (%)127207139.77

Organic Carbon(%)191119122017.32.6H2 (%)222.522.71.71.9O2 (%)1.89.67.5711.52.12.7N2 (%)0.34_0.20.380.21.30.6S (%)3.21.21.550.360.650.6

H2O (%)2.51011.51312.70.75.3Ash556444714568.379.8

•• Oil Shale Oil Shale covers more covers more than 60% of than 60% of JordanJordan’’s areas area

•• There are There are more than 25 more than 25 surface and surface and near surface near surface occurrences occurrences of oil shaleof oil shale

Oil Shale Deposits in Jordan ( Bilion Tons)

Wadi Mughur, 32

Althamad, 11.4

Attarat, 11.3

Jurf, 8.6

Lajjun, 1.3

Sultani, 1 Wadi MughurAlthamadAttaratJurfLajjunSultani

AlAl--LajjunLajjun Oil Shale DepositOil Shale Deposit

SultaniSultani Oil Shale DepositOil Shale Deposit

• Main StudiesMain Studies

TechnopromexportTechnopromexport--USSRUSSR-- PCPC--200 MW200 MW

Klockner/LurgiKlockner/Lurgi -- German (50,000 b/d) German (50,000 b/d) 300 MW CFB300 MW CFB

Bechtel / Bechtel / PyropowerPyropower CFB 400MW CFB 400MW +Test Burn in Finland+Test Burn in Finland

Combustion Engineering / Combustion Engineering / LummusLummus Canada CFB 400MW + Canada CFB 400MW + Test Burn in GermanyTest Burn in Germany

Sinopec / China Sinopec / China -- 1000 tons Retorting Test 1000 tons Retorting Test

EninEnin / Russia / Russia –– UTT 3000UTT 3000--GaloterGaloter

Suncor Alberta Suncor Alberta TaciukTaciuk Process (ATP)Process (ATP)

•• Economics of shale oil production in the Economics of shale oil production in the past have past have remained behind conventional oilremained behind conventional oilkeeping oil shale off nationkeeping oil shale off nation’’s energy agenda s energy agenda

•• When crude oil prices were ~ $12 per barrel When crude oil prices were ~ $12 per barrel (1980s (1980s -- early 1990s), estimates of selling early 1990s), estimates of selling price needed to make oil shale economic price needed to make oil shale economic were ~ were ~ $20 per barrel$20 per barrel

•• Crude oil prices have risen sharply starting Crude oil prices have risen sharply starting in 2004, reaching in 2004, reaching $80 per barrel$80 per barrel that makes that makes oil shale oil shale viable and strategicviable and strategic energy sourceenergy source

•• Jordanian oil shale is considered as a good and Jordanian oil shale is considered as a good and acceptable fuel to be burned in circulating fluid acceptable fuel to be burned in circulating fluid bed boilers (CFB) cleanly and efficiently. bed boilers (CFB) cleanly and efficiently.

•• Very high combustion efficiency in excess of Very high combustion efficiency in excess of 98.5%98.5% and very low emissionsand very low emissions

•• Oil yield is 10% and gas yield is 5% by weightOil yield is 10% and gas yield is 5% by weight

Main ResultsMain Results-- TechnicalTechnical

$20/Bl$20/Bl

5/kWh5/kWh

Main ResultsMain Results-- EconomicEconomic

Shell Oil thinks it can produce oil from oil shale at $30 per barrel using an in situ process where the shale is cooked without first mining it onto the surface

•• Emissions registered during combustion Emissions registered during combustion test of 75 tons of test of 75 tons of SultaniSultani Oil Shale Oil Shale conducted in conducted in LurgiLurgi Facility GermanyFacility Germany

•• SOSO22 ((ppmppm)) 2020--40 40 •• NONOXX ((ppmppm)) 140 140 –– 200200•• CO (CO (ppmppm)) 150 150 •• COCO22 ((ppmppm)) 14 14 •• Particulate (%)Particulate (%) 50 50

Main ResultsMain Results-- EnvironmentEnvironment

Current ActivitiesCurrent Activities

Three DirectionsThree Directions

• In-Situ Process

• Surface Mining

• Circulating Fluidized Bed

Oil Shale Above Ground Retorting TechnologiesOil Shale Above Ground Retorting Technologies

MOUMOU’’ssRoyal Dutch ShellRoyal Dutch Shell

In June 2006, the government In June 2006, the government signed an MOU with Royal signed an MOU with Royal Dutch Shell to test extraction Dutch Shell to test extraction of deep oil shale resources of deep oil shale resources using Shellusing Shell’’s ins in--situ situ conversion process in the conversion process in the AzraqAzraq and Aland Al--JafrJafr blocks of blocks of central Jordan central Jordan

• The Government of Jordan (GOJ) is currently negotiating with Shell to utilize the new extraction technique to reach an agreement and go ahead with the project.

• The project study will take about ten years and shall consist of the following main Phases:1. Negotiation of the Commercial Agreement and GOJ Approval -

(one year) 2. Exploration and Assessment of Oil Shale Resources - (2 years) 3. Appraisal of Selected Prospects - (2-3 years) 4. Localization of Demo Project - (2-5 years) 5. Project Definition and Final Commercial Investment - (4-5

years) •• Consequently, at least 10 and possibly more years will Consequently, at least 10 and possibly more years will

elapse before oil shale development will reach the elapse before oil shale development will reach the production growth phaseproduction growth phase

Recovery MethodsRecovery Methods•• InIn--situsitu retortingretorting

–– Heat shale slowly to 650 to Heat shale slowly to 650 to 700 degrees F700 degrees F

–– Recover 1/3 gas and 2/3 Recover 1/3 gas and 2/3 light oillight oil

–– Potential for 1 acre to yield Potential for 1 acre to yield 1 million barrels of oil1 million barrels of oil

Environmental concerns:Environmental concerns:–– Groundwater contaminationGroundwater contamination–– Energy consumptionEnergy consumption

Advantages:Advantages:–– Much less land disturbanceMuch less land disturbance–– No tailingsNo tailings–– Better recovery efficiencyBetter recovery efficiency–– Allows access to deeper oil Allows access to deeper oil

shale reservesshale reserves–– HigherHigher--quality productquality product

)

Water &

TemperatureMonitor Wells

FreezeWells

Heater &Producer

Wells

FracturedShaleWater

BearingZonew

SolidShale

PetrobrasPetrobras ((PetrosixPetrosixTMTM technology)technology)

•• March 2007 Jordan March 2007 Jordan signed MOU with signed MOU with PetrobrasPetrobras for for –– exploration of exploration of AttaratAttarat oil oil

shale shale –– technical and technical and

economical feasibility economical feasibility study for use of study for use of PetrosixPetrosixTMTM for production for production of oil from oil shaleof oil from oil shale

•• MOU is for 24 months MOU is for 24 months –– If the project is economically viable, the Jordanian If the project is economically viable, the Jordanian

government will award government will award PetrobrasPetrobras a concession for a concession for the exploitation of oil shale in part of althe exploitation of oil shale in part of al--AttaratAttarat areaarea

Oil Shale Energy of Jordan Oil Shale Energy of Jordan ((GaloterGaloter Technology)Technology)

•• November 5th 2006, November 5th 2006, Jordan signed MOU Jordan signed MOU with Oil Shale Energy with Oil Shale Energy of Jordan to of Jordan to –– carry out feasibility carry out feasibility

studies on surface oil studies on surface oil shale deposits in 1/3 of shale deposits in 1/3 of the Althe Al--LajjunLajjun block block

–– investigate retorting oil investigate retorting oil shale as source for shale as source for liquid & gaseous fuel liquid & gaseous fuel

–– employing employing GaloterGaloterTechnology Technology

Jordan Energy & Mining Jordan Energy & Mining (ATP technology) (ATP technology)

•• November 5th 2006, Jordan signed MOU November 5th 2006, Jordan signed MOU with Jordan Energy & Mining towith Jordan Energy & Mining to–– carry out feasibility studies on surface oil carry out feasibility studies on surface oil

shale deposits in 1/3 of the Alshale deposits in 1/3 of the Al--LajjunLajjun block block –– investigate retorting the oil shale as a investigate retorting the oil shale as a

source for liquid and gaseous fuel source for liquid and gaseous fuel –– employing the AOSTRAemploying the AOSTRA--TaciukTaciuk Process Process

(ATP) (ATP)

Engineering and economical analysis shows that this is a Engineering and economical analysis shows that this is a viable processviable process

Test program with a Canadian Company Test program with a Canadian Company ““SuncorSuncor”” for retorting for retorting Jordanian oil shale was carried out in 1998 Jordanian oil shale was carried out in 1998

International Corporation for Oil Shale International Corporation for Oil Shale Investment (Investment (KiviterKiviter technology)technology)

•• November 5th 2006, Jordan signed November 5th 2006, Jordan signed MOU with the International Corporation MOU with the International Corporation for Oil Shale Investment, tofor Oil Shale Investment, to–– Carry out feasibility studies on surface oil Carry out feasibility studies on surface oil

shale deposits in 1/3 of the Alshale deposits in 1/3 of the Al--LajjunLajjun block block –– Investigate retorting oil shale as a source Investigate retorting oil shale as a source

for liquid and gaseous fuel for liquid and gaseous fuel –– employing employing KiviterKiviter technology technology

Since the Since the KiviterKiviter retort cannot retort cannot accept fines below 2.5 cm and accept fines below 2.5 cm and the the GaloterGaloter retort requires fines retort requires fines of <of < 2.5 cm, the two retorts 2.5 cm, the two retorts complement each other for full complement each other for full resource utilization.resource utilization.

Cooperation With EstoniaCooperation With Estonia

Estonian experience in 2000 suggests that oil shale for power generation is viable at coal import prices above $40/t and natural gas import prices above $3.50/MBTU. The production of shale oil is competitive at crude oil prices above $25/bbl and at heavy fuel imports above $95/t.

EstoniaEstonia

Ash has shown good ability for grinding which assist Ash has shown good ability for grinding which assist in increasing the earlier strengthening for cement in increasing the earlier strengthening for cement

R&DR&D

PREHEATINGAND

MIST FORMATION

PYROLYSIS

STRIPPING ANDWATER GAS SHIFT

PARTIALCOMBUSTION

PARTIALCOMBUSTION

COMBUSTION

RESIDUECOOLING

PREHEATINGAND

MIST FORMATION

PYROLYSIS

STRIPPING ANDWATER GAS SHIFT

PARTIALCOMBUSTION

PARTIALCOMBUSTION

COMBUSTION

RESIDUECOOLING

Cyclohexane+benzene by mixing 28 %Carbon disulfide 24 %

Ethanol 0 %Cyclohexane+benzene 6.5 %Toluene 6.4 %Dichloromethane 6.74 %Petrolium spirit 9.09 %Trichlorofloromethane 9.87 %Carbon tetrachloride 11.7 %Perchloroethylene 12.34 %Xylene 13 %Chloroform 13.2 %

•• KerogenousKerogenous--organicorganic--matter matter did not dissolvedid not dissolveduring during SoxhletSoxhlet Extraction Technique; Extraction Technique; bitumen is the only dissolved organic matterbitumen is the only dissolved organic matter

•• The extraction yield and composition of the The extraction yield and composition of the extracts are quite different in the case of extracts are quite different in the case of different solventsdifferent solvents

•• Solvent Extraction in an agitating medium Solvent Extraction in an agitating medium enhanced organic solvent efficiency enhanced organic solvent efficiency

•• Solvent Extraction Technique Solvent Extraction Technique remains remains unprovenunproven technology in Oil Shale technology in Oil Shale ExploitationExploitation

The Role of Oil Shale in the The Role of Oil Shale in the Kingdom's Energy Master Kingdom's Energy Master

Plan (The Strategy)Plan (The Strategy)

•• As a result of H.M. King AbdullahAs a result of H.M. King Abdullah’’s great s great attention to the energy sector, a Royal attention to the energy sector, a Royal Committee was formed to overlook and Committee was formed to overlook and foster oil foster oil shale projectsshale projects aiming at securing the country's aiming at securing the country's needs for energy and facilitating local and needs for energy and facilitating local and foreign investment in this field. Therefore, oil foreign investment in this field. Therefore, oil shale will occupy a very shale will occupy a very prominent position in prominent position in the national energy agendathe national energy agenda

•• The GOJ has decided to start The GOJ has decided to start preparing for an integrated preparing for an integrated technical technical and economic feasibility studyand economic feasibility study to to determine the optimal utilization of determine the optimal utilization of this strategic source of oil shalethis strategic source of oil shale

•• The GOJ has evaluated various The GOJ has evaluated various options and considered options and considered oil shale as oil shale as the most appropriate optionthe most appropriate option that suits that suits JordanJordan’’s economy in the near future s economy in the near future

Why Oil Shale Strategy?Why Oil Shale Strategy?

•• Jordan is aJordan is a nonnon--oil oil producing country producing country •• Energy imports create a financial burden on Energy imports create a financial burden on

the national economy, representing the national economy, representing 23% of 23% of GDP GDP

•• Jordan ranks Jordan ranks third in oil shale reservesthird in oil shale reserves and and has become one of the most attractive has become one of the most attractive investment and operational acreage holders to investment and operational acreage holders to oil shale developmentoil shale development

•• Implementation of the oil shale strategy will Implementation of the oil shale strategy will open up the open up the market to competitionmarket to competition and create and create several investment opportunitiesseveral investment opportunities

•• The current oil shale policy will lead to The current oil shale policy will lead to a multia multi--purpose processpurpose process consisting of: consisting of: –– electricity generation, electricity generation, –– thermal retorting, thermal retorting, –– cement production cement production –– mineral extraction mineral extraction

•• to achieve to achieve high utilization factorshigh utilization factors for oil shale's for oil shale's chemical and energy potentialschemical and energy potentials

•• The strategy is proposed to make Jordan the The strategy is proposed to make Jordan the first country to have a diversified and first country to have a diversified and comprehensive oil shale implementation comprehensive oil shale implementation programprogram that will present oil shale processing that will present oil shale processing technology in commercial applicationtechnology in commercial application

Consultancy ServicesConsultancy ServicesThe GOJ has appointed two international The GOJ has appointed two international

Consultancy Companies:Consultancy Companies:1.1. Charles River InternationalCharles River International--EnglandEngland2.2. BehreBehre and and DolbearDolbear -- through a grant from the through a grant from the

United States Trade and Development Agency United States Trade and Development Agency (USTDA)(USTDA)

Purpose of Consultancy Services Purpose of Consultancy Services •• Provide a Provide a clear visionclear vision along with a short and longalong with a short and long--term term

strategy strategy •• Provide Provide competent advicecompetent advice and assistance in the form of and assistance in the form of

technical, financial, economical and legal aspectstechnical, financial, economical and legal aspects•• Evaluate and identify Evaluate and identify critical issuescritical issues, such as environmental , such as environmental

protection, resource access, and infrastructure constraints protection, resource access, and infrastructure constraints •• Develop a detailed and well determined Develop a detailed and well determined Negotiation StrategyNegotiation Strategy

leading to successful commercial agreements and project leading to successful commercial agreements and project closure closure

•• Review the terms of Review the terms of draft Commercial Agreementsdraft Commercial Agreements and and advise the GOJ during the course of negotiations on terms advise the GOJ during the course of negotiations on terms and conditions that lead to successful negotiations and conditions that lead to successful negotiations

•• Analyze current shale oil extraction Analyze current shale oil extraction recovery technologyrecovery technologyand examine their suitability for use in Jordan and examine their suitability for use in Jordan

•• Apply the Apply the best international expertisebest international expertise to the development of to the development of an oil shale industry in Jordanan oil shale industry in Jordan

• Facilitate the implementation of near-term actions (Road Map) leading to the commercial production of shale oil

• Provide recommendations and advice for royalties and suggest best revenue sharing arrangements

• Ensure that any project shall follow local and international standards regarding equipment, environment and water consumption

• Identify key environmentally acceptable oil shale waste disposal practices

• Increase understanding of engineering issues concerning the design and scale-up of oil shale extraction and utilization

Essential Measures Taken by the GOJ to Essential Measures Taken by the GOJ to Encourage Foreign Investments in Oil Shale Encourage Foreign Investments in Oil Shale

Processing and UtilizationProcessing and Utilization

•• Keep the Keep the door opendoor open for any company who is for any company who is interested to invest in the oil shale development interested to invest in the oil shale development

•• Provide all Provide all available related dataavailable related data free of charge, as free of charge, as most of the information relevant to oil shale most of the information relevant to oil shale development was generated 20development was generated 20––30 years ago 30 years ago

•• Grant Grant exploration and mining rightsexploration and mining rights for areas with for areas with adequate deposits adequate deposits

•• Sign long term Sign long term purchase agreementspurchase agreements of the energy of the energy products of any oil shale project products of any oil shale project

•• Facilitate all theFacilitate all the logistics logistics needed for oil shale needed for oil shale utilization utilization

Development StrategyDevelopment StrategyThe strategy is being implemented in The strategy is being implemented in two two phasesphases and is designed to achieve the following and is designed to achieve the following objectives:objectives:

•• To To encourage developmentencourage development of oil shale through of oil shale through direct burning, surface and deepdirect burning, surface and deep--mining retortingmining retorting

•• To To license a small portionlicense a small portion of resources to allow of resources to allow companies to develop their technology and companies to develop their technology and capabilitiescapabilities

•• To To award acreage in the futureaward acreage in the future to successful to successful companiescompanies

Oil Shale Known Retorting TechnologiesOil Shale Known Retorting Technologies

Exploitation AppraisalExploitation AppraisalThe exploitation appraisal is expected to The exploitation appraisal is expected to cover cover the full lifecycle of all activitiesthe full lifecycle of all activities necessary to necessary to exploit oil shale includes:exploit oil shale includes:

–– Construction, development and ownership Construction, development and ownership –– Operation and expansion of production facilities Operation and expansion of production facilities –– Mining operation Mining operation –– Processing and storage facilities Processing and storage facilities –– Power generation Power generation –– Transport and distribution infrastructure Transport and distribution infrastructure –– The wholesale and retail of finished products The wholesale and retail of finished products

either to the domestic market or for export either to the domestic market or for export –– Sales or safe disposal of bySales or safe disposal of by--products products –– Plant and mine decommissioning, land Plant and mine decommissioning, land

remediation activitiesremediation activities

•• In March 2006 the government decided to In March 2006 the government decided to issue a Call for Proposals to 14 companies for issue a Call for Proposals to 14 companies for developing a surface retortingdeveloping a surface retorting oil shale facility oil shale facility in Jordanin Jordan

•• The intention of the call for proposals was to:The intention of the call for proposals was to:–– Identify those companies Identify those companies ready to moveready to move quickly quickly

towards a real project towards a real project –– Allocate Allocate different areasdifferent areas other than that defined for other than that defined for

the Shell concessions to different companies the Shell concessions to different companies

Phase 1Phase 1

•• The bidding process completed with only The bidding process completed with only seven proposalsseven proposals from qualified companies from qualified companies

•• The proposals were The proposals were evaluatedevaluated based on a based on a series of clearly series of clearly defined and welldefined and well--focused focused criteriacriteria

•• Companies were selected through Companies were selected through two key two key measuresmeasures -- capability and strategic interest capability and strategic interest

•• The capability assessmentThe capability assessment was based on: track was based on: track record, technology assessment, project record, technology assessment, project management, and financial capabilities management, and financial capabilities

•• Strategic interestStrategic interest was based on the level of was based on the level of interest in Jordan, regional focus, and whether interest in Jordan, regional focus, and whether investment in Jordan would provide an investment in Jordan would provide an opportunity for the companies to develop and opportunity for the companies to develop and prove the capabilities of their technologyprove the capabilities of their technology

•• Phase one gave the companies the Phase one gave the companies the opportunity to opportunity to demonstrate their demonstrate their competenciescompetencies and for the GOJ to award and for the GOJ to award companies with increased resources should companies with increased resources should the the BFS BFS demonstrate a viable projectdemonstrate a viable project

•• This will be followed by This will be followed by good faith good faith negotiations on concludingnegotiations on concluding legally binding legally binding concession agreementsconcession agreements to allow for the to allow for the actual exploration and the commercial actual exploration and the commercial exploitation of oil shale exploitation of oil shale

The following five companies have The following five companies have signed signed MOU'sMOU's and currently involved in and currently involved in technotechno--economical studies: economical studies: –– Shell, using InShell, using In-- Situ Conversion Process Situ Conversion Process

(ICP) (ICP) –– PetrobrasPetrobras, using , using PetrosixPetrosix technologytechnology–– Oil Shale Energy of Jordan (OSEJ), using Oil Shale Energy of Jordan (OSEJ), using

GalloterGalloter technologytechnology–– Jordan Energy & Mining (JEM), using ATP Jordan Energy & Mining (JEM), using ATP

technology technology –– International Corporation for Oil Shale International Corporation for Oil Shale

Investment (INCOSIN), using Investment (INCOSIN), using KiviterKivitertechnologytechnology

Phase 2Phase 2•• To To attract interestattract interest from high capability from high capability

companies to invest in oil shale development companies to invest in oil shale development in Jordanin Jordan

•• To develop and execute a To develop and execute a further licensing further licensing roundround

•• Some of the Some of the other companiesother companies which which participated in Phase 1 were deemed not participated in Phase 1 were deemed not qualified and instead it was decided to offer qualified and instead it was decided to offer them the opportunity to participate in Phase 2 them the opportunity to participate in Phase 2 at a later stage, such that they have at a later stage, such that they have more more time to develop their capabilitiestime to develop their capabilities

•• Prior to awarding any acreage to interested Prior to awarding any acreage to interested companies, the GOJ will wish to ensure that companies, the GOJ will wish to ensure that the the companies have the capabilitiescompanies have the capabilities to to develop oil shale and that the acreage they develop oil shale and that the acreage they are awarded be suitable in size and scale to are awarded be suitable in size and scale to the capabilities of the company the capabilities of the company

•• It is planned that It is planned that a tender processa tender process be used for be used for license award. This will require the companies license award. This will require the companies to submit proposals and if successful to be to submit proposals and if successful to be awarded defined acreage rightsawarded defined acreage rights

ConclusionConclusion•• Oil Shale is one of the Oil Shale is one of the most abundant and accessible most abundant and accessible

energy resourceenergy resource in the countryin the country•• There is a There is a clear economic interestclear economic interest for Jordan to have oil for Jordan to have oil

shale developed and used as a strategic energy sourceshale developed and used as a strategic energy source•• Jordan is developing competition for access to its oil shale Jordan is developing competition for access to its oil shale

resources and has resources and has encouraged private sector involvement encouraged private sector involvement in this fieldin this field so that Jordan is at this stage well placed in so that Jordan is at this stage well placed in terms of implementing its strategyterms of implementing its strategy

•• Jordan has become one of the Jordan has become one of the top most attractive top most attractive investmentinvestment and operational acreage holders in regards to and operational acreage holders in regards to oil shale developmentoil shale development

•• Investment in oil shale is now open in Jordan Investment in oil shale is now open in Jordan on the basis of on the basis of production sharing agreementproduction sharing agreementand/or any agreement which suits Jordanand/or any agreement which suits Jordan

•• We are rapidly approaching a We are rapidly approaching a critical juncturecritical juncturefor oil shale development for oil shale development

•• In the short and medium term, oil shale will In the short and medium term, oil shale will dominate the worlddominate the world’’s energys energy supply system supply system

•• Oil shale is seen as a Oil shale is seen as a viable option at todayviable option at today’’s s oil pricesoil prices so that oil shale utilization will result so that oil shale utilization will result in significant savings in foreign exchange, in significant savings in foreign exchange, improves Jordanimproves Jordan’’s energy supply and security s energy supply and security and create new jobs and create new jobs

Oil shale will be on the energy policy agenda of Oil shale will be on the energy policy agenda of both U.S.A and Jordan and more attention has both U.S.A and Jordan and more attention has been directed at technology and energy market been directed at technology and energy market developments that might change the commercial developments that might change the commercial prospects for oil shaleprospects for oil shale

Production from Oil Shale by Region

0.00.1

0.10.2

0.20.3

0.30.4

0.40.5

2000 2010 2020 2030 2040 2050

GTO

E

SASPASCPAAFRMEAEEUPAOWEUUSA

Under high growth assumptions, Under high growth assumptions, an oil shale production level of 1 an oil shale production level of 1 million barrels per day is probably million barrels per day is probably more than 20 years in the future, more than 20 years in the future, and 3 million barrels per day is and 3 million barrels per day is probably more than 30 years into probably more than 30 years into the futurethe future

Thank You For Your Thank You For Your AttentionAttention

munther.besieso@gmail.communther.besieso@gmail.com