Category: Basra Oil Company (BOC)

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New Development Plan for West Qurna-2

LUKOIL and the Basra Oil Company (BOC) signed a Development Plan for the West Qurna-2 field that provides for an oil production plateau of 800 thousand barrels per day.

According to the Plan, the oil production of 480 thousand barrels per day will be reached in 2020 and 800 thousand barrels per day is expected in 2025.

These indicators will be achieved as a result of drilling and commissioning of new production and injection wells, construction and launching of oil treatment, storage and transportation facilities and facilities for gas treatment and power generation.

The experience acquired by the Company in the region, the existing infrastructure and cost compensation within the project development from the current production will ensure maximum efficiency of the project implementation.

The parties noted that due to the agreements reached, LUKOIL will remain one of the largest investors and employers in Iraq in the coming years. ​

(Source: Lukoil)

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New Contracts Signed to operate Majnoon Oilfield

By John Lee.

Basra Oil Company (BOC) has signed contracts with the Chinese company Anton Oilfield Services Group (Antonoil) and the US company KBR to operate and maintain the Majnoon oil field.

A statement from the Ministry of Oil put the value of the contracts at $118 million, adding that there would be “other secondary contracts” to follow.

BOC will take over operations at Majnoon from Shell by the end of June.

(Source: Ministry of Oil)

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Antonoil, Petrofac to take over Majnoon from Shell

By John Lee.

Oil executives have told Reuters that the Iraqi Oil Ministry has signed a two-year contract with China’s Anton Oilfield Services (Antonoil) and Petrofac to operate the giant Majnoon oilfield (pictured).

The companies will operate the oilfield on behalf of the state-owned Basra Oil Company (BOC), which will take over operations from Shell by the end of June.

(Source: Reuters)

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235-MW Rumaila Power Station Opened

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has officially opened the Rumaila power station.

The construction of the 235 MW plant was supervised by the China Petroleum Engineering & Construction Corporation (CPECC), the engineering and construction subsidiary of the China National Petroleum Corporation (CNPC).

The Minister said the project is considered as one of the largest projects organized by the Rumaila Operating Organization (ROO), which includes Basrah Oil Company (BOC), BP and PetroChina.

(Source: Ministry of Oil)

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KBR, Anton Oil to replace Shell at Majnoon?

By John Lee.

According to a report from Platts, the Iraqi oil ministry is about to award two management contracts to replace Shell at the Majnoon oil field.

Sources say the state-run Basra Oil Company (BOC) has opted to operate the field instead of replacing Shell, and junior partner Petronas, which announced last year it was relinquishing its 2010 technical service contract.

They added that KBR will play a project management consultant role, while China’s Anton Oil will handle production operations and management, ch after the recent oil price decline — which altered the financial equation for the contract.

More here from Platts.

(Source: Platts)

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Iraq to establish Gas Pipeline Company by end-March

By Padraig O’Hannelly.

Iraq’s Ministry of Oil is to establish a Gas Pipeline Company (GPC), which shall perform the functions of the Gas-to-Power Aggregator, by the end of this month.

According to documents obtained by Iraq Business News, the Director General of the Gas Pipeline Company will be appointed by the Council of Ministers based on the recommendation of the Minister of Oil and the relevant deputy minister.

By June 30, 2018, the GPC is to set up a website on which it will publish a description of the entire network, “planned expansions of the network, monthly utilization of capacity by Public Sector Shippers in the most recent full calendar year and in the current calendar year through the latest available date, and anticipated utilization of capacity by Public Sector Shippers in the following three calendar years.”

The current operators of the network are the Oil Pipeline Company of the Ministry of Oil and Basrah Oil Company (BOC); it is anticipated that they will transfer their gas and NGL transportation activities to the Gas Pipeline Company.

The GPC will initially act as both Gas Aggregator and operator of the network. These activities will be separated over time; it is anticipated that the GPC will remain the exclusive operator of the network for a considerable period of time, although it may enter into joint arrangements with or obtain financing from private sector operators or shippers. Additional operators may in the future take responsibility for segments of the network.

Detailed documents can be downloaded here.

(Picture credit: Shana)

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BOC “Preparing to Tender” for Water Injection Project

By John Lee.

The Basra Oil Company (BOC) is reportedly preparing to tender for a water injection project in Iraq if talks with ExxonMobil and PetroChina fail.

Reuters quotes the head of the Oil Ministry’s Petroleum Contracts and Licensing Directorate (PCLD), Abdul Mahdi al-Ameedi, as telling reporters at the CWC Iraq Petroleum Conference in Berlin, “we cannot wait for a longer time unless Exxon Mobil accepts the deal for the benefit of the two parties.”

He added that the delay in negotiations was partly related to initial production rates from the Nahr Bin Umar and Artawi oilfields.

(Source: Reuters )

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Majnoon Oil Output to Almost Double

By John Lee.

Iraq reportedly plans to increase production at the Majnoon oilfield from 240,000 bpd now to 450,000 barrels within three years.

Ahmed Abdul Razzaq, the head of a committee in charge of developing the field, told Reuters that the Basra Oil Company (BOC), which will take over operations from Shell, is studying proposals from three oilfield services companies to boost output at the field in southern Iraq.

(Source: Reuters)

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Japanese Firm Buys Shell’s Stake in West Qurna 1

By John Lee.

Japan’s Itochu has reportedly bought Shell‘s 20 percent stake in the West Qurna 1 oilfield.

Ihsan Abdul Jabbar, the head of state-run Basra Oil Company (BOC), told Reuters that the oil ministry discussed the required financial investments and operations at the field with Itochu, and approved the deal.

West Qurna 1, operated by ExxonMobil, currently produces around 405,000 barrels of crude oil per day.

The deal comes as Shell is also preparing to exit the Majnoon oilfield, handing it over to the BOC by the end of June 2018.

(Source: Reuters)

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KBR to help Develop Majnoon Oilfield

By John Lee.

Iraq has reportedly reached an agreement with US engineering firm KBR to help manage projects to develop production capacity at the Majnoon oilfield.

Shell is preparing to exit the Majnoon oilfield by the end of June 2018, handing it over to the state-run Basra Oil Company (BOC).

Ihsan Abdul Jabbar, the head of the BOC, told Reuters that he is targeting to cut the cost of the projects’ development by 30 percent this year, adding that the development cost for Majnoon set by Shell in 2017 was $1 billion.

He also said that Iraq was still in talks with another foreign engineering firm to operate the energy facilities at the field, with a deal expected before June.

Shell is now advising the Majnoon management on the tendering process, and on maintaining normal operations at the field, said Abdul Jabbar.

(Source: Reuters)