Sep 14 2008 |
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Shortage of cash inhibits NPC work
AMMAN (Petra) - The National Petroleum Company (NPC) does not have the capital needed to develop and raise the production capacity of Al Risheh gas field, the firm's director general, Abdulelah Rousan, said Saturday."The company's fixed income is being eaten up by operational expenditure, which have doubled due to higher costs," Rousan indicated. " At present we are examining offers from international companies that were contacted in order to plug the working capital shortage."
According to Rousan, the bidders are offering to participate in developing the gas field to face the natural annual reduction in the output of 20 wells that currently produce about 22 million cubic feet. Moreover, the bidders are proposing to exploit new wells that would bring up the production volume.
Rousan said the company, which holds the prospecting rights for Al Risheh, was facing several challenges particularly the decline in the purchasing power from around JD5 million of earnings.
He said the skyrocketing oil prices on international markets have negatively reflected on the company's performance in terms of higher prices of material used in the production process in addition to the long delays in the delivery dates of needed items.
Rousan added that the company has increased the salaries of its employees by an average of 50 per cent while prices of gas produced by the company remained fixed, placing an additional financial burden to the company's expenditures.
He elaborated that between 30-40 per cent of qualified personnel in the oil sector are leaving their jobs without suitable replacements.
NPC is a public shareholding company incorporated in Jordan on June 21, 1995 with an authorised capital of JD20million that was reduced to JD15million after a merger with Petra Drilling Company on November 1, 2001. Its main objective is to explore for oil and gas in addition to other related activities.
© Jordan Times 2008
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