Author: Editor

Posted on

Health Facilities Reopened after Destruction by ISIL

Health facilities in Al-Karma officially reopen after destruction by ISIL

Two newly-rehabilitated health facilities – the External Consultancy Clinic and Al-Sijr Public Health Centre were officially reopened by the United Nations Development Programme (UNDP), Government of Australia and Anbar Governorate.

When ISIL captured Al-Karma, the health facilities across the region suffered extensive damages. Equipment was stolen and infrastructure was left destroyed. Prior to rehabilitation of the health facilities, residents were forced to travel more than fifteen kilometers to Fallujah Teaching Hospital for treatment and medical services.

The two facilities were rehabilitated by UNDP’s Funding Facility for Stabilization (FFS) with generous funding provided by the Government of Australia.  In addition, the Government of Denmark provided furniture and USAID supplied equipment to the Al-Sijr Public Health Centre.

“The reopening of the External Consultancy Clinic and Al-Sijr Public Health Centre in Al-Karma is an important milestone to restoring essential health services across the region. However, our commitment to building Iraq forward better and stabilizing areas affected by ISIL do not end here. We have also supported the rehabilitation of over 50 health facilities in Anbar alone. This includes clinics, public health centers, hospitals and even specialty hospitals such as maternity and dental clinics,” says UNDP Resident Representative in Iraq, Zena Ali Ahmad.

“We are here today because of the generous funding and longstanding partnership with the international community. The rehabilitation of the two facilities would not have been possible without the support provided by the Government of Australia. I would also like to thank Government of Denmark for providing the furniture and USAID for supplying the equipment at the Al-Sijr Public Health Centre,” she added.

“Australia values our longstanding partnership with the Government of Iraq and UNDP and is proud to support recovery efforts in this country. The conflict with ISIL left severe damage to vital infrastructure and impacted the lives of many Iraqis, says Ms. Paula Ganly, the Australian Ambassador to Iraq.

“The Australian Government believes that access to adequate health care is a basic human right. The rehabilitation and functioning of these clinics will provide essential health services to Karma district and surrounds,” she added.

Since 2015, through the Funding Facility for Stabilization, UNDP has completed around 3,100 stabilization projects across the liberated areas of Anbar, Diyala, Kirkuk, Ninewa, Salah Al-Din.  To date, the programme has supported the return of more than 4.8 million people back to their place of origin.

(Source: UN)

The post Health Facilities Reopened after Destruction by ISIL first appeared on Iraq Business News.

Posted on

Iraq Dust Storm puts 5,000 in Hospital

By John Lee.

Iraqi media reports that one person has died and more than 5,000 have been hospitalised on Thursday as a result of the latest dust storm.

The dust storm is the seventh this month, with some experts believing they are becoming more frequent due to climate change.

Road and air transport has been disrupted.

Areas affected include Baghdad, Najaf and Anbar.

(Sources: INA, AP, AFP, BBC)

(Picture: A dust storm approaching Al Asad military base in 2005, taken by Corporal Alicia M. Garcia, U.S. Marine Corps)

The post Iraq Dust Storm puts 5,000 in Hospital first appeared on Iraq Business News.

Posted on

Iraq to Increase Oil Export Capacity

By John Lee.

Basra Oil Company (BOC) has reportedly said that third offshore pipeline at the Khor Al-Amaya Oil Terminal (KAAOT) (pictured) will be completed by the end of 2023.

Acting Director General, Ahmed Fadel Dehaim, told the Iraqi News Agency (INA) that the new line will increase oil export capacity by 600,000 barrels per day (bpd).

He said another 300,00o bpd of capacity will become available sooner, following the completion of work to restore another pipeline that was damaged two years ago.

(Source: INA)

The post Iraq to Increase Oil Export Capacity first appeared on Iraq Business News.

Posted on

Iraq Oil Export Volumes hit 2-Year High

By John Lee.

Iraq’s Ministry of Oil has announced preliminary oil exports for April of 101,390,662 barrels, giving an average for the month of 3.380 million barrels per day (bpd), up from the 3.244 million bpd exported in March.

This is the highest daily export rate since the 3.438 million barrels per day achieved in April 2020.

The exports from the oilfields in central and southern Iraq amounted to approximately 98,100,042 barrels, while exports from the Kirkuk fields through the port of Ceyhan amounted to 2,991,060 barrels.

While not explicitly stated by the Ministry, these figures seem to imply that exports by road to Jordan have resumed as planned, and totalled 299,560 barrels for the month.

Revenues for the month were $10.55 billion, at an average price of $104.091 per barrel.

March’s export figures can be found here.

(Source: Ministry of Oil)

The post Iraq Oil Export Volumes hit 2-Year High first appeared on Iraq Business News.

Posted on

Refinery Targeted in Rocket Attack

By John Lee.

A rocket attack that targeted an oil refinery in the Khabat area of Erbil on Sunday has been widely condemned.

Six rockets were fired at the Kawergosk refinery, which is owned by KAR Group, reportedly damaging a storage tank.

The Iraqi Security Media Cell said it located a launch base near the Al-Fadhiliah area of Bashiqa district, in the Nineveh Plain, where a further four missiles were rendered rendered harmless.

Shafaq quotes a source as saying that one person sustained minor injuries in the attack.

In March, the home of the CEO of KAR Group, Baz Karim Barzanji, was badly damaged in a rocket attack attributed to Iran’s Islamic Revolutionary Guards Corps (IRGC).

(Sources: Iraqi Security Media Cell, Shafaq, Asharq al Awsat, NRT)

The post Refinery Targeted in Rocket Attack first appeared on Iraq Business News.

Posted on

WFP Iraq Country Brief

WFP Iraq Country Brief, March 2022

In Numbers

  • 710,492 people assisted in March 2022
  • US$ 2.25 million distributed in March 2022 through cash-based transfers
  • 1,686 mt of in-kind assistance distributed
  • US$ 39.4 million six months net funding requirements (April – September 2022)

Operational Updates

  • In March, WFP provided cash and food assistance to 182,152 internally displaced persons (IDPs), 68,419 refugees, and 8,118 people from vulnerable communities through resilience building initiatives. Through the School Feeding Programme, WFP supported 451,803 children.
  • WFP’s resilience-building initiatives continue to provide smallholder farmers with the support they need in order to improve their production and increase crop yields. In Ninewa governorate, WFP provided greenhouses, beehives, cattle and seeds to 325 farmers who utilize the knowledge and expertise shared by WFP to provide a sustainable livelihood for themselves and their families.
  • WFP collaborated with the Iraqi Ministry of Water Resources to organize the second Annual Baghdad International Water Conference, to help highlight and provide solutions to the issues of climate change and water scarcity facing Iraq’s people and agriculture. WFP presented its latest data and findings on the issue to support the government of Iraq with its Green Paper to address these serious challenges.
  • In its continued efforts to support Iraq’s youth, and confront climate change, WFP provided a new solar power system for the Career Development Centre at the University of Sulaymaniyah. The solar energy provided now effectively meets the electricity gap during power cuts or shortages, enabling seamless support to youth in need as they take part in the EMPACT (Empowerment in Action) project. Participation in this project supports students with relevant training in English, digital skills and entrepreneurship that enables them to find work opportunities, start small businesses and provide an income.
  • In collaboration with the University of Sulaymaniyah and German creative design platform JOVOTO, WFP celebrated the three young EMPACT graduates Aisha, Mohammed and Kawther, whose designs revolving around the EMPACT project won the first, second and third prizes respectively, in the first design innovation joint competition.
  • For International Women’s Day on 8 March, Urban Livelihoods participant and trainer Nada was invited by the Embassy of the Netherlands in Baghdad to visit from Basra, to participate in a special event to speak about her journey and experience. The impact of WFP’s Urban Livelihoods programme, implemented across southern Iraq and Ninewa, is apparent through star participants such as Nada. She attended the programme, then taught photography skills that she acquired from her training, quickly became a social entrepreneur, leader of a prolific youth creative group, and role model for her contemporaries in Basra.
  • Under the School Feeding Programme funded and coimplemented by the Government of Iraq, WFP organized several workshops and training sessions to further develop the capacity of the Ministry of Education, to be able to successfully implement the programme independently in the future, while WFP continues providing technical and logistics support and expertise. These included three Training of Trainers (ToT) sessions, three capacity building workshops and a Food Quality Control workshop that was delivered in cooperation with WFP’s Regional Bureau.
  • As part of the joint Social Protection Programme with the government and UN partners, WFP held three consultation workshops for more than 80 Government of Iraq and Kurdistan Regional Government staff members and key Ministerial participants. The workshops produced a roadmap for establishing a Single Registry based on multi-stakeholder discussions. The workshops also initiated dialogue on the improvement of Iraq’s social protection schemes with special focus on the public distribution system for food rations (PDS). In addition to multiple Ministry representatives, the workshops were attended by UNICEF, ILO, World Bank, GIZ and UNHCR.
  • Representatives of Canada and Germany visited Sharya IDP camp in Duhok and met with a number of displaced families to discuss their situation, reasons that prohibit their return to their homes, and ongoing needs.
  • In light of the rise in food prices as a result of the RussianUkrainian conflict, WFP temporarily increased its cash transfer value to vulnerable IDPs living in Jadaa-5 camp to mitigate the effects and ensure that families are not affected.

The full report can be downloaded here.

(Source: ReliefWeb)

The post WFP Iraq Country Brief first appeared on Iraq Business News.

Posted on

GKP outlines Payments to Govts for 2021

By John Lee.

Gulf Keystone Petroleum (GKP) has just published details of its payments to governments for the year 2021:

Introduction

This report sets out details of the payments made to governments by Gulf Keystone Petroleum Ltd and its subsidiary undertakings (“Gulf Keystone”) for the year ended 31 December 2021 as required under Disclosure and Transparency Rule 4.3A issued by the UK’s Financial Conduct Authority (“DTR 4.3A”) and in accordance with The Reports on Payments to Governments Regulations 2014 (as amended in 2015) (“the UK Regulations”) and our interpretation of the Industry Guidance on the UK Regulations issued by the International Association of Oil & Gas Producers. DTR 4.3A requires companies listed on a stock exchange in the UK and operating in the extractive industry to publicly disclose payments to governments in the countries where they undertake exploration, prospection, discovery, development and extraction of minerals, oil, natural gas deposits or other materials.

Basis for preparation

Total payments below £86,000 made to a government are excluded from this report, as permitted under the UK Regulations.

All of the payments made in relation to the Shaikan Production Sharing Contract (“Shaikan PSC”) in the Kurdistan Region of Iraq have been made to the Ministry of Natural Resources (“MNR”) of the Kurdistan Regional Government (“KRG”).

Production entitlements

Production entitlements are the host government’s share of production during the reporting period from the Shaikan Field operated by Gulf Keystone. The figures reported have been produced on an entitlement basis, rather than on a liftings basis. Production entitlements are paid in-kind and the monetary value disclosed is derived from management’s calculation based on the monthly oil sales invoices.

Royalties

Royalties represent royalties paid in-kind to governments during the year for the extraction of oil. The terms of the royalties are described within the Shaikan PSC. Royalties have been calculated on the same basis as production entitlements.

Licence fees and capacity building payments

These include licence fees, rental fees, entry fees, capacity building payments, security fees and other considerations for licences or concessions.

Infrastructure improvement payments

These include payments for infrastructure improvements, whether contractual or otherwise, such as roads, other than in circumstances where the infrastructure is expected to be primarily dedicated to operational activities throughout its useful life.

KRG

Production entitlements in-kind (1) (mboe (2))

5,151

Production entitlements in-kind (1)  ($ ‘000)

255,763

Royalties in-kind (1) (mboe (2))

1,255

Royalties in-kind (1) (2) ($ ‘000)

62,320

Licence fees and capacity building payments in-kind (3) ($ ‘000)

17,385

Infrastructure improvement payments (4)

342

Total (mboe (2))

6,406

Total ($ ‘000)

355,811

Notes

(1)  All of the crude oil produced by Gulf Keystone was sold by the KRG. All proceeds of sale were received by or on behalf of the KRG, out of which the KRG then made payment for cost oil and profit oil in accordance with the Shaikan PSC to Gulf Keystone, in exchange for the crude oil delivered to the KRG. Under these arrangements, payments were made by or on behalf of the KRG to Gulf Keystone, rather than by Gulf Keystone to the KRG. However, for the purposes of the reporting requirements under the UK Regulations, we are required to characterise the value of the KRG’s production entitlements under the Shaikan PSC (for which the KRG receives payment directly from the market) as a payment to the KRG.

(2)  Thousand barrels of oil.

(3)  Capacity building payments are deducted from the monthly crude oil sales invoice, no direct payment is made to the KRG. The value of licence, rental and security fees has been accrued and is not expected to be paid, but rather offset against revenue due from the KRG related to pre-October 2017 oil sales, which have not yet been recognised in the financial statements.

(4)  Drilling of water well, construction of water supply network and purchase of generators.

(Source: Gulf Keystone Petroleum)

The post GKP outlines Payments to Govts for 2021 first appeared on Iraq Business News.

Posted on

IDC starts Drilling 20 Oil Wells at Nasiriyah

By John Lee.

The Iraqi Drilling Company (IDC) has started work on the first of its 20 oil wells at the Nasiriyah oil field in Dhi Qar.

IDC’s Director General, Basem Abdul Karim, said that the project is part of a contract with the Dhi Qar Oil Company (DQOC) in cooperation with Weatherford.

The planned depth of the well is 2,200 meters.

The project is to be completed within 18 months.

(Source: Ministry of Oil)

The post IDC starts Drilling 20 Oil Wells at Nasiriyah first appeared on Iraq Business News.

Posted on

ShaMaran reports Record Oil Revenues at Atrush

ShaMaran Petroleum has released its financial and operating results and related management’s discussion and analysis (MD&A) for the three months and year ended December 31, 2021.

Dr. Adel Chaouch, President and Chief Executive Officer of ShaMaran, commented:

“2021 has been a transformational year for ShaMaran. The Company generated the highest annual oil sales revenues in its history at $102.3 million. ShaMaran’s 2021 EBITAX was more than triple that of 2020 and last year demonstrates the Company’s cash generating ability with cashflow from operations increasing by almost 5 times versus the year before.  Atrush continues to prove itself as a world class field with cumulative production now in excess of 54MM barrels and a continuation of full replacement of 2P reserves year on year.

“We are entering 2022 in a strong financial position and are excited about the growth opportunities that lie ahead for Shamaran. The Sarsang acquisition, expected to close in the coming months, will double the size of the Company and we continue to actively look at other market opportunities to further develop ShaMaran. We recently announced a one-of-its-kind climate action corporate sponsorship with the Hasar Organization for Earth Sciences in Kurdistan. This initiative represents a key early step in ShaMaran’s strategy towards significantly reducing its net carbon footprint.“

2021 Financial Highlights

Three months ended Dec 31

Year ended Dec 31

USD Thousands

2021

2020

2021

2020

Revenue

27,439

14,081

102,323

56,673

Gross margin on oil sales

12,662

10,253

49,889

7,106

Net result

4,061

(1,785)

13,383

(144,425)

Cash flow from operations

23,336

5,350

63,903

12,860

EBITDAX

18,456

6,614

66,375

20,052
  • The fourth quarter generated oil sales revenue of $27.4 million and during 2021 the Company generated the highest-ever annual oil sales revenues at $102.3 million;
  • A strong EBITDAX of $18.5 million for the fourth quarter and $66.4 million for the full year 2021, 3.3 times the EBITDAX of 2020;
  • Consistent oil sales and entitlement payments from the KRG with 75% of the KRG outstanding receivables paid during 2021;
  • 2021 and fourth quarter operating cash flow of $63.9 million and $12.9 million respectively; and
  • Reduction of the principal amount of the Company’s 2023 Bond by $15 million during 2021 with a further $3 million of the 2023 Bond bought back by the company at 2021 year end.

___________________________

1 All currency amounts indicated as “$” in this news release are expressed in United States Dollars. 

2021 Atrush Operational Highlights

  • Cumulative production of more than 54 million barrels of oil achieved by year end 2021;
  • Atrush Property gross 2P reserves2 had a 102% reserves replacement ratio increasing to 110.2 MMbbls as at December 31, 2021 from 109.9 in 2020, and Company gross 2P reserves increasing from 30.3 MMbbls to 30.4 MMbbls;
  • Full year 2021 average production of approximately 38,600 bopd, was very close to the 2021 guidance despite a longer than anticipated routine maintenance shutdown period in September 2021;
  • Full year 2021 lifting costs per barrel of $5.12 in line with 2021 guidance; and
  • Full year 2021 capital expenditure of $52.3 million ($14.2 million net to ShaMaran) in line with 2021 guidance.

Sarsang Acquisition

  • As announced on July 30, 2021, the Company has successfully issued and settled $111.5 million principal amount of the $300 million 12% senior unsecured bond 2021/2025 (the “2025 Bond”), which was issued at 98.5% of nominal value for gross cash proceeds to the Company of $109.8 million. This portion of the 2025 Bond and the $188.5 million balance will be issued to refinance existing indebtedness of the Company in connection with, and conditional upon completion of, the Company’s acquisition of TotalEnergies’ affiliate that holds an 18% non-operated participating interest in the Sarsang Block; and
  • The Company is currently finalizing the closing documentation for the completion of the Sarsang Acquisition and completion is expected in the first half of 2022.

2022 Atrush Guidance

  • 2022 average production guidance of 36,000 to 41,000 bopd;
  • Atrush capital expenditures for 2022 planned at $116 million ($32 million net to ShaMaran). This capital program includes:
    • The drilling and completion of three development wells, including one water injection well.
    • Initiation of the gas solution project which will significantly reduce emissions by using existing infrastructure to generate electrical power from produced gas. As the Atrush field is currently dependent on diesel-fueled generators for all electrical power, this project will also therefore greatly reduce future operating costs.
  • Atrush operating expenditure is forecast to be $76 million ($21 million net to ShaMaran) for 2022, in line with 2021 actual operating costs; and
  • Atrush average lifting costs per barrel are estimated to range from $4.80 to $5.80. Atrush lifting costs are mainly fixed costs and dollar-per-barrel estimates should decrease with increasing levels of production and operational efficiencies.

CORPORATE UPDATE

The Company is pleased to announce that the Record Date of May 6, 2022 has been set for the Annual General Meeting of Shareholders to be held on June 23, 2022.

____________________________

2 Reserves estimates, contingent resource estimates and estimates of future net revenue in respect of ShaMaran’s oil and gas assets in the Atrush Block are effective as at December 31, 2021, and are included in the report prepared by McDaniel & Associates Consultants Ltd., an independent qualified reserves evaluator, in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (the COGE Handbook) and using McDaniel’s January 1, 2022 price forecasts. Certain abbreviations and technical terms used in this MD&A are defined or described under the heading “Other Supplementary Information”.

OTHER

This information is information that ShaMaran is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on April 25, 2022 at 5:30 p.m. Eastern Time.  Arctic Securities AS (Swedish branch) is the Company’s Certified Advisor on Nasdaq First North Growth Market (Sweden), +46 844 68 61 00, certifiedadviser@arctic.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS

This news release contains statements and information about expected or anticipated future events and financial results that are forward‐looking in nature and, as a result, are subject to certain risks and uncertainties, such as legal and political risk, civil unrest, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management’s capacity to execute and implement its future plans.

The Covid-19 virus and the restrictions and disruptions related to it have had a drastic adverse effect on the world demand for, and prices of, oil and gas as well as the market price of the shares of oil and gas companies generally, including the Company’s common shares.  There can be no assurance that these adverse effects will not continue or that commodity prices will not decrease or remain volatile in the future. These factors are beyond the control of ShaMaran and it is difficult to assess how these, and other factors, will continue to affect the Company and the market price of ShaMaran’s common shares. In light of the current situation, as at the date of this news release, the Company continues to review and assess its business plans and assumptions regarding the business environment, as well as its estimates of future production, cash flows, operating costs, and capital expenditures.

Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward‐looking information. Forward‐ looking information typically contains statements with words such as “may”, “will”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “projects”, “potential”, “scheduled”, “forecast”, “outlook”, “budget” or the negative of those terms or similar words suggesting future outcomes.  The Company cautions readers regarding the reliance placed by them on forward‐looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company.

Actual results may differ materially from those projected by management. Further, any forward‐looking information is made only as of a certain date and the Company undertakes no obligation to update any forward‐ looking information or statements to reflect events or circumstances after the date on which such statement is made or reflect the occurrence of unanticipated events, except as may be required by applicable securities laws. New factors emerge from time to time, and it is not possible for management of the Company to predict all of these factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward‐looking information.

ABOUT SHAMARAN

ShaMaran is a Kurdistan focused oil development and exploration company which holds a 27.6% working interest, through its wholly-owned subsidiary General Exploration Partners, Inc., in the Atrush Block and, upon successful closing of the Sarsang Acquisition, will then also hold an 18% interest through its then wholly-owned subsidiary TEPKRI Sarsang A/S in the Sarsang Block.

ShaMaran is a Canadian oil and gas company listed on the TSX Venture Exchange and the Nasdaq First North Growth Market (Sweden) under the symbol “SNM”.

(Source: ShaMaran)

The post ShaMaran reports Record Oil Revenues at Atrush first appeared on Iraq Business News.