Lebanon calls for Restoration of Iraq Oil Pipeline

By John Lee.

The Speaker of the Lebanese Parliament has reportedly called for the restoration of an oil pipeline between Iraq and Lebanon, which ceased operation during the Iran-Iraq war more than 30 years ago.

On the last of a four-day visit to Iraq, during which he met with Iraqi President Barham Salih, Nabih Berri is also quoted as saying:

“We discussed Lebanese investment in Iraq and especially the subject of the oil installations between Kirkuk and Tripoli, a topic we must return to.”

(Sources: Al Bawaba, Office of the Iraqi President)

Gazprom Neft expands Oil Production at Sarqala

Russia’s Gazprom Neft has commissioned a third production well at its Sarqala field in the Kurdistan Region of Iraq (KRI)

Potential production at this new well is estimated at 12,000 barrels per day. Cumulative daily oil production at the field following the commissioning of the Sarqala-3 well has increased by 25 percent reaching 35,000 barrels.

The well runs to a total depth of 3,291 metres, with drilling having been undertaken under the challenging geological conditions of the Sarqala field — anomalously high pressure and reservoir temperature having demanded the use of a selection of 11 technological solutions. The construction of the Sarqala-3 well has, as a result, involved the use of large-diameter casing pipes with ultra-strong thread connections, weighted drilling mud for bottom-hole flushing, and cement incorporating mineral-based and iron-oxide additives.

Drilling the well has involved an international team, with members from 20 countries. The project was implemented by Gazprom Neft Middle East, with technical support from the Gazprom Neft Science and Technology Centre.

Vadim Yakovlev, First Deputy CEO, Gazprom Neft, commented:

“The Middle East remains an area of strategic interest to Gazprom Neft, being a region with a rich resource base, and a demonstrable willingness to allow access to investors. Experience in implementing projects from scratch — both in exploration and production — is important to us. We are continuing to evaluate opportunities for the further development of our business in the Middle East — independently and in partnership with other companies — both using the synergies offered by existing project infrastructure, as well as at other assets.”

(Source: Gazprom Neft)

Funding Appeal for Humanitarian Needs in Iraq

IOM Launches Funding Appeal to Address Most Urgent Humanitarian Needs in Areas of Displacement and Return in Iraq

Five years after the onset of the ISIL crisis and the subsequent massive internal displacement, IOM Iraq is launching its funding appeal for emergency assistance in the amount of USD 41.4 million.

Although the number of internally displaced persons (IDPs) has gradually declined since 2017, there are still around 1,750,000 Iraqis living in displacement as of February 2019, due to significant obstacles to return such as damage to houses; lack of livelihoods and basic services; perceptions of insecurity in areas of origin; and mental and psychosocial distress. Around a third of the current population of IDPs, over 530,000 persons, is still living in camps, which require critical support.

IOM’s funding appeal is aligned with the 2019 United Nations’ Humanitarian Response Plan (HRP) for Iraq, which estimates that approximately 6.7 million people are in critical need of support. Nearly 65 per cent of those are concentrated in Ninewa, Anbar, and Salah al-Din, the governorates most severely affected by the recent conflict.

IOM will focus its humanitarian support in Iraq on three groups of concern: IDPs who remain in displacement both within and outside camps, vulnerable host communities in areas of displacement and return – where services are overstretched – and IDPs who have returned to their areas of origin but whose basic humanitarian needs are not being met.

In 2019, IOM plans to maintain its life-saving assistance to IDPs in camp settings through the provision of Shelter and Non-Food Items (NFI) support, providing primary health services, monitoring and addressing protection and psychosocial needs, supporting Water, Sanitation and Hygiene (WASH) services, and supporting camp co-ordination and camp management (CCCM) of IDP camps and informal settlements.

The appeal also includes a request for the continuation of IOM Iraq’s Displacement Tracking Matrix (DTM) which provides real-time reliable quantitative and qualitative data on displacement and returns.

“We highly appreciate IOM’s efforts to provide life-saving humanitarian assistance to displaced families in and out of camps as well as support them upon return their communities of origin. We look forward to our continued cooperation in 2019,” said Naseer Abdel-Sattar, Executive Director of the Joint Coordination and Monitoring Centre (JCMC) of the Government of Iraq.

“The protracted displacement crisis is one of the critical challenges that needs our focused attention, as many displaced people still depend entirely on the provision of humanitarian assistance. The local resources and capacities are already overstretched and pushed to the limit. IOM has been one of the key partners to provide life-saving assistance to the displaced people inside and outside the camps. We value the continued support and cooperation with IOM to support the most vulnerable people,” said Hoshang Mohamed, the Director General of Joint Crisis Coordination Centre (JCC) in Iraq’s Kurdistan Regional Government.

“Funding for humanitarian assistance is crucial to uphold the basic needs and dignity of vulnerable Iraqis in displacement and areas of return. It will prevent a reversal of the gains made to stabilize areas that have been most severely affected by the conflict,” said Gerard Waite, IOM Iraq’s Chief of Mission.

“Through partnership and collaboration with other humanitarian partners, the Government of Iraq, the Kurdistan Regional Government and local NGOs, we hope to address the most critical humanitarian needs while seeking durable solutions for those in protracted displacement,” he added.

The appeal document is available here (Arabic version here)

Click here to watch our video on the Crisis funding appeal.

(Source: UN)

Funding Appeal for Humanitarian Needs in Iraq

IOM Launches Funding Appeal to Address Most Urgent Humanitarian Needs in Areas of Displacement and Return in Iraq

Five years after the onset of the ISIL crisis and the subsequent massive internal displacement, IOM Iraq is launching its funding appeal for emergency assistance in the amount of USD 41.4 million.

Although the number of internally displaced persons (IDPs) has gradually declined since 2017, there are still around 1,750,000 Iraqis living in displacement as of February 2019, due to significant obstacles to return such as damage to houses; lack of livelihoods and basic services; perceptions of insecurity in areas of origin; and mental and psychosocial distress. Around a third of the current population of IDPs, over 530,000 persons, is still living in camps, which require critical support.

IOM’s funding appeal is aligned with the 2019 United Nations’ Humanitarian Response Plan (HRP) for Iraq, which estimates that approximately 6.7 million people are in critical need of support. Nearly 65 per cent of those are concentrated in Ninewa, Anbar, and Salah al-Din, the governorates most severely affected by the recent conflict.

IOM will focus its humanitarian support in Iraq on three groups of concern: IDPs who remain in displacement both within and outside camps, vulnerable host communities in areas of displacement and return – where services are overstretched – and IDPs who have returned to their areas of origin but whose basic humanitarian needs are not being met.

In 2019, IOM plans to maintain its life-saving assistance to IDPs in camp settings through the provision of Shelter and Non-Food Items (NFI) support, providing primary health services, monitoring and addressing protection and psychosocial needs, supporting Water, Sanitation and Hygiene (WASH) services, and supporting camp co-ordination and camp management (CCCM) of IDP camps and informal settlements.

The appeal also includes a request for the continuation of IOM Iraq’s Displacement Tracking Matrix (DTM) which provides real-time reliable quantitative and qualitative data on displacement and returns.

“We highly appreciate IOM’s efforts to provide life-saving humanitarian assistance to displaced families in and out of camps as well as support them upon return their communities of origin. We look forward to our continued cooperation in 2019,” said Naseer Abdel-Sattar, Executive Director of the Joint Coordination and Monitoring Centre (JCMC) of the Government of Iraq.

“The protracted displacement crisis is one of the critical challenges that needs our focused attention, as many displaced people still depend entirely on the provision of humanitarian assistance. The local resources and capacities are already overstretched and pushed to the limit. IOM has been one of the key partners to provide life-saving assistance to the displaced people inside and outside the camps. We value the continued support and cooperation with IOM to support the most vulnerable people,” said Hoshang Mohamed, the Director General of Joint Crisis Coordination Centre (JCC) in Iraq’s Kurdistan Regional Government.

“Funding for humanitarian assistance is crucial to uphold the basic needs and dignity of vulnerable Iraqis in displacement and areas of return. It will prevent a reversal of the gains made to stabilize areas that have been most severely affected by the conflict,” said Gerard Waite, IOM Iraq’s Chief of Mission.

“Through partnership and collaboration with other humanitarian partners, the Government of Iraq, the Kurdistan Regional Government and local NGOs, we hope to address the most critical humanitarian needs while seeking durable solutions for those in protracted displacement,” he added.

The appeal document is available here (Arabic version here)

Click here to watch our video on the Crisis funding appeal.

(Source: UN)

Funding Appeal for Humanitarian Needs in Iraq

IOM Launches Funding Appeal to Address Most Urgent Humanitarian Needs in Areas of Displacement and Return in Iraq

Five years after the onset of the ISIL crisis and the subsequent massive internal displacement, IOM Iraq is launching its funding appeal for emergency assistance in the amount of USD 41.4 million.

Although the number of internally displaced persons (IDPs) has gradually declined since 2017, there are still around 1,750,000 Iraqis living in displacement as of February 2019, due to significant obstacles to return such as damage to houses; lack of livelihoods and basic services; perceptions of insecurity in areas of origin; and mental and psychosocial distress. Around a third of the current population of IDPs, over 530,000 persons, is still living in camps, which require critical support.

IOM’s funding appeal is aligned with the 2019 United Nations’ Humanitarian Response Plan (HRP) for Iraq, which estimates that approximately 6.7 million people are in critical need of support. Nearly 65 per cent of those are concentrated in Ninewa, Anbar, and Salah al-Din, the governorates most severely affected by the recent conflict.

IOM will focus its humanitarian support in Iraq on three groups of concern: IDPs who remain in displacement both within and outside camps, vulnerable host communities in areas of displacement and return – where services are overstretched – and IDPs who have returned to their areas of origin but whose basic humanitarian needs are not being met.

In 2019, IOM plans to maintain its life-saving assistance to IDPs in camp settings through the provision of Shelter and Non-Food Items (NFI) support, providing primary health services, monitoring and addressing protection and psychosocial needs, supporting Water, Sanitation and Hygiene (WASH) services, and supporting camp co-ordination and camp management (CCCM) of IDP camps and informal settlements.

The appeal also includes a request for the continuation of IOM Iraq’s Displacement Tracking Matrix (DTM) which provides real-time reliable quantitative and qualitative data on displacement and returns.

“We highly appreciate IOM’s efforts to provide life-saving humanitarian assistance to displaced families in and out of camps as well as support them upon return their communities of origin. We look forward to our continued cooperation in 2019,” said Naseer Abdel-Sattar, Executive Director of the Joint Coordination and Monitoring Centre (JCMC) of the Government of Iraq.

“The protracted displacement crisis is one of the critical challenges that needs our focused attention, as many displaced people still depend entirely on the provision of humanitarian assistance. The local resources and capacities are already overstretched and pushed to the limit. IOM has been one of the key partners to provide life-saving assistance to the displaced people inside and outside the camps. We value the continued support and cooperation with IOM to support the most vulnerable people,” said Hoshang Mohamed, the Director General of Joint Crisis Coordination Centre (JCC) in Iraq’s Kurdistan Regional Government.

“Funding for humanitarian assistance is crucial to uphold the basic needs and dignity of vulnerable Iraqis in displacement and areas of return. It will prevent a reversal of the gains made to stabilize areas that have been most severely affected by the conflict,” said Gerard Waite, IOM Iraq’s Chief of Mission.

“Through partnership and collaboration with other humanitarian partners, the Government of Iraq, the Kurdistan Regional Government and local NGOs, we hope to address the most critical humanitarian needs while seeking durable solutions for those in protracted displacement,” he added.

The appeal document is available here (Arabic version here)

Click here to watch our video on the Crisis funding appeal.

(Source: UN)

Iraq Oil Exports Down again in March

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for March of 104,686,779 barrels, giving an average for the month of 3.377 million barrels per day (bpd), down from the 3.621 bpd exported in February.

These exports from the oilfields in central and southern Iraq amounted to 100,899,853 barrels, while exports from Kirkuk amounted to 3,063,972 barrels, and from Qayara 722,954 barrels.

Revenues for the month were $6.679 billion at an average price of $63.804 per barrel.

February export figures can be found here.

(Source: Ministry of Oil)

Iraq to Export 1m bpd Oil through Jordan

Iraq announced on Thursday the completion of the “technical preparations” to extend a pipeline to export one million barrels of oil per day through Jordan, Petra has reported.

“The export capacity of the Basra-Aqaba pipeline, which runs through Jordan, is expected to reach one million barrels per day (bpd),” Iraqi oil minister, Thamir Al-Ghadhban, said in a statement.

Al-Ghadhban explained that Iraq had completed the planning arrangements of the pipeline’s construction work. “The arrangements included its [the pipeline’s] track, components, absorptive capacity, the mechanisms of linking it to the northern Kirkuk oil fields, funding sources, and implementation and operational means,” he said.

The Iraqi official stressed that his country was only depending on the southern portal city of Basra for oil exports, noting that the ministry has prepared “a major plan for its rehabilitation and development with the aim to increase its export capacity levels.”

The government, Al-Ghadhban pointed out, plans to establish three linked crude oil exporting ports.

Baghdad and Amman recently concluded six bilateral agreements to develop their relations, most notably in the oil and energy sectors. The two governments said the agreements aimed at “revitalising” their economies and strengthening ties between Iraq and Jordan.

(Source: Middle East Monitor)

Lukoil CEO and Iraqi PM discuss Cooperation

By John Lee.

The President of Lukoil, Vagit Alekperov, has held a meeting with Prime Minister of Iraq Adil Abdul-Mahdi in Baghdad.

The meeting was attended by the Russian Ambassador to Iraq, Maksim Maksimov.

The parties discussed the current status of projects, among them the geological exploration at Eridu field (Block 10) in the south of Iraq.

Mr. Abdul-Mahdi expressed his support for the intention to deliver first production at Eridu field ahead of time.

(Source: Lukoil)

GKP Declares Dividend; Shares Rise

By John Lee.

Shares in Gulf Keystone Petroleum (GKP) were trading up more than three percent on Thursday morning after the company proposed issuing $50-million in dividends this year.

The company, which produces oil at the Shaikan field (pictured) in Iraqi Kurdistan, issued the following statement as part of its 2018 Full Year Results:

Financial

  • Record revenue of $250.6 million (FY 2017: $172.4 million)
  • EBITDA of $149.3 million (FY 2017: $104.3 million)
  • Profit after tax of $79.9 million (FY 2017: $14.1 million)
  • Net capital investment in Shaikan of $35.7 million (FY 2017: $8.1 million)
  • Cash balance of $295.6 million at year end (2017: $160.5 million)
  • The Company anticipates being fully funded for all phases of the Shaikan expansion
    programme under its current set of assumptions
  • $100 million bond refinancing in July 2018

Dividend

  • The Board confirms a dividend policy to shareholders, which will comprise an annual dividend on the ordinary shares of the Company of no less than $25 million per financial year
  • The Company is therefore pleased to announce its intention to pay an ordinary dividend on the ordinary shares of $25 million in 2019 and, given its current financial strength, the Board is also proposing to complement the ordinary dividend in 2019 with a $25 million supplemental dividend to shareholders on the ordinary shares
  • The total dividend of $50 million will be subject to approval at the next AGM in June 2019.  One third of the total dividend will be paid following approval at the Company’s AGM, with the balance payable following release of the Company’s half-year results

Operational

  • Full year gross average production of 31,563 bopd (2017: 35,298), at the upper end of guidance
  • GKP and its partner MOL reached agreement with the MNR in June 2018 to recommence investment into Shaikan, towards an initial production target of 55,000 bopd by Q1 2020
  • Common vision for a phased development that will grow gross Shaikan production to 110,000 bopd
  • The development vision described by the revised Field Development Plan (“FDP”) was submitted in October 2018. This revision has not been accepted by the MNR, specifically due to a request for additional assurances on the timing and commitment to eliminate gas flaring. As the parties aim to progress this matter and reach an agreement, investment on the ground continues as per the initial phases of this plan
  • On target to achieve plant de-bottlenecking by year-end and tie-in of the pipeline from PF-1 to the export system mid-year
  • GKP internal review indicates an upgrade in Proven (1P) reserves and no material changes to Probable reserves (2P). A revised Competent Person’s Report to be released following FDP approval
  • Robust HSSE performance with one LTI in 2018, the first in three years

Corporate

  • Signature of Crude Oil Sales Agreement in January 2018 normalised payments in line with oil prices and production.  Renewed in February 2019 through to 2020 providing certainty over payments for the foreseeable future
  • Further strengthening of the Board in 2018 with Jaap Huijskes appointed as Non-Executive Chairman, Martin Angle as Senior Independent Non-Executive Director and Kimberley Wood as Non-Executive Director

Outlook

  • On track for material uplift in production to 55,000 bopd in Q1 2020
  • In 2019, gross Capex associated with 55,000 bopd phase of between $130 million and $150 million, in addition to $20 million to $45 million associated with the subsequent development phase
  • Dividend distribution from 2019 onwards
  • Gross production guidance for 2019 unchanged at 32,000 – 38,000 bopd

Jón Ferrier, Gulf Keystone’s Chief Executive Officer, said:

Throughout 2018, our focus was on laying the foundations for the delivery of the Company’s phased growth plans, which envisages a step change in production profile.  The Company is on track to achieve its near-term production target of 55,000 bopd in Q1 2020, and with our partner MOL continues to work towards delivering the staged investment programme. The remarkable Shaikan reservoir presents a straightforward, low-cost onshore development opportunity with unrivalled near-term upside.

The new dividend policy represents another major milestone for the Company. It crystallises returns to shareholders while we preserve the ability to fully fund the Shaikan development and maintain a strong balance sheet; our platform for growth.

More details here.

(Sources: GKP, Yahoo!)