Cursor International executes projects and collaboration activities across several industries.
By John Lee.
Iraq’s National Investment Commission (NIC) has just announced the list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February.
The 157 large- and medium-sized projects span all sectors of the Iraqi economy, including oil and gas, transport, housing, agriculture and education.
The full 46-page document can be downloaded here.
(Source: NIC)
Gulf Keystone Petroleum (GKP), operator of the Shaikan Field in the Kurdistan Region of Iraq, is today providing an operational and corporate update.
This is in advance of the Company’s full year results for the period ended 31 December 2017 which are expected to be announced on Wednesday 11 April 2018. The information contained herein has not been audited and may be subject to further review and amendment.
Operational Update
DNO ASA, the Norwegian oil and gas operator, today reported receipt of USD 53.71 million from the Kurdistan Regional Government as payment for October 2017 crude oil deliveries to the export market from the Tawke license.
The funds will be shared by DNO and partner Genel Energy plc pro-rata to the companies’ interests in the license.
The payment to DNO of three percent of gross Tawke license revenues during October 2017, as provided for under last August’s receivables settlement agreement, was previously received by the Company.
DNO operates and has a 75 percent interest in the Tawke license, which contains the Tawke and Peshkabir fields. Combined production from the two fields currently averages 110,000 barrels of oil per day.
(Source: DNO)
Genel Energy has announced that RPS Energy Consultants, as part of its work on the updated competent person’s reports (‘CPRs’) for the Bina Bawi and Miran West fields (Genel 100% and operator), has finalised its evaluation of the contingent gas resources at both assets:
A comparison of the revised 2C gross contingent resource numbers for both fields and the Company’s end-2016 number, which was based on the 2013 RPS reports plus the addition of the Company’s assessment of non-hydrocarbon gases, is summarised in the following table. Further detail is provided in an appendix to this announcement.
|
|
Gross (100% WI) 2C Contingent Resources Raw gas (Bscf) |
||
|
|
Previous |
Revised |
change |
|
Bina Bawi |
6,472 |
8,230 |
27% |
|
Miran West |
3,688 |
6,562 |
78% |
RPS’s updated analysis of the raw gas resources on both fields has benefitted from updated reservoir simulation modelling combined with analogue analysis jointly created and developed by the Company and Baker Hughes since the original reports were produced. As a consequence, the recovery factors for the gas reservoirs in both fields have, in most resource categories, been increased to reflect a better understanding of potential reservoir performance. Further appraisal activity, which is currently under consideration, could help refine reservoir performance and these recovery factor estimates.
Volumes agreed under the GLAs total 2,800 Bscf from Bina Bawi, and 2,000 Bscf from Miran West over a 12 year period, consisting of a two year build-up period and 10 year plateau period. The revised 2C and 3C raw gas resources for both fields significantly exceed these volumes. Following the completion of the upstream field development plans (‘FDPs’), sufficient progress on the midstream facilities and sales gas export route, and subsequent final investment decision, the Company expects that a percentage of the contingent raw gas resources will be converted to reserves, dependent on the volumes set to be produced under the FDPs.
The upstream FDPs for the gas and oil fields in the Bina Bawi and Miran PSCs, which are being carried out by Baker Hughes, are expected to be completed shortly.
RPS is continuing its evaluation of the oil bearing reservoirs at both fields, the results of which will be announced once finalised.
Appendix
Summary of Contingent Resources – Development unclarified (Gross 100% working interest basis) attributable to the Bina Bawi and Miran West fields as of 31 December 2017
|
|
Gross (100% WI) Contingent Resources |
|
|
Gross (100% WI) Contingent Resources |
||
|
BINA BAWI |
Raw gas (Bscf) |
Condensate (MMstb) |
|
MIRAN WEST |
Raw gas (Bscf) |
Condensate (MMstb) |
|
1C |
4,651 |
34 |
|
1C |
1,967 |
18 |
|
2C |
8,230 |
62 |
|
2C |
6,562 |
75 |
|
3C |
13,036 |
99 |
|
3C |
18,429 |
233 |
1 Genel figure based on the 2013 RPS reports plus the addition of the Company’s assessment of non-hydrocarbon gases
2 Based on a conversion factor of 5.8 MMscf/bbl
(Source: Genel Energy)
By John Lee.
Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has signed on Thursday a memorandum of understanding with BP to rehabilitate the oil fields in Kirkuk governorate.
Michael Townsend, CEO of BP, said that the company is going to prepare the necessary studies to increase production at the Kirkuk oil fields to 750,000 bpd.
The two men inspected the Kirkuk fields on Thursday and ordered a speeding-up of rehabilitation operations.
(Source: Oil Ministry)
By John Lee.
Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has signed on Thursday a memorandum of understanding with BP to rehabilitate the oil fields in Kirkuk governorate.
Michael Townsend, CEO of BP, said that the company is going to prepare the necessary studies to increase production at the Kirkuk oil fields to 750,000 bpd.
The two men inspected the Kirkuk fields on Thursday and ordered a speeding-up of rehabilitation operations.
(Source: Oil Ministry)
By John Lee.
US-based Chevron plans to resume drilling at the Sarta 3 block in Iraqi Kurdistan.
According to a report from Bloomberg, the company had temporarily halted exploration work in October after the Kurds voted in favour of independence.
Chevron acquired Reliance Exploration & Production DMCC‘s 80 percent interest and operatorship of the production sharing contracts (PSCs) covering the Rovi and Sarta blocks in 2012; Austria’s OMV holds of the other 20 percent interest.
The blocks are located north of Erbil and cover a combined area of approximately 490 square miles (1,124 square kilometers).
(Sources: Bloomberg, Reuters)
As the Kurdistan Regional Government has promised, and to prove its commitment to transparency in the entire oil and gas sector of the Kurdistan Region, today the first report by the international auditing company, Deloitte, is released.
The report, which includes verified numbers of export and sales of oil in the Kurdistan Region for the first six months of 2017, is available to the public.
According to the validated numbers, the total revenue generated from oil sales is 3,328,211,119 US Dollars, after deducting expenses. The average oil sales price for that period was 41.29 $/bbl for exported barrel of oil through pipelines, at a time when average Dated Brent price was approximately 51.71 $/bbl.
The auditing project was ordered by the Council of Ministers of the Kurdistan Regional Government through Decision No. (73) on 3rd of February 2016, as a continuation of Oil and Gas Law, and Oil and Gas Trust Fund Law.
In a transparent process and in accordance with the World Bank guidelines, the Regional Council for Oil and Gas Affairs invited the Big Four international auditing firms in the world and consequently signed Master Service Agreements (“MSA”) with Deloitte and Ernst & Young, after following international tendering standards. According to the MSA’s, the oil and gas sector will be subject to audit, including the historical data.
The Kurdistan Regional Government considers the auditing process as an important step for strengthening transparency in the oil and gas sector of the Kurdistan Region. The KRG has approved Deloitte’s recommendations to further enhance the processes and address any shortcomings. The KRG is also working to develop the accounting and auditing capabilities of the financial monitoring agencies in the Region, in order to empower them for future projects.
This is the first time that reputable and major international companies audit the oil and gas sector in the Kurdistan Region. In the near future, the validated numbers for the second half of 2017, and for the past years will be released to the public.
For further questions, contact information will be provided soon.
(Source: KRG)
By John Lee.
Genel Energy has announced that the Taq Taq partners have received a gross payment of $10.10 million from the Kurdistan Regional Government for oil sales during October 2017.
Genel’s net share of the payment is $5.55 million.
(Source: Genel Energy)
By Mahmut Bozarslan for Al Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
The partnership Turkey, Iran and Iraq formed against the Kurdistan Regional Government (KRG) independence referendum in September has left Tehran pleased but left Ankara severely disappointed.
Ankara had two basic expectations about the partnership. First, Turkish officials believed that a new pipeline would be built to carry oil from Kirkuk, Iraq, to Turkey’s Ceyhan oil terminal, replacing a damaged line and bypassing the KRG. And second, as an alternative to the border crossing from Habur, Turkey, into Iraq — which provides lucrative income to the KRG — a new border crossing to Iraq would open at Ovacik in Turkey.
Ankara calculated that a crossing at Ovacik, at the junction of Iraqi-Syrian-Turkish borders, would:
But the Ovacik project has been shelved and an alternative pipeline plan — involving Iran — has emerged, marginalizing the proposed new pipeline to move oil from Kirkuk to Ceyhan.
For three years, the KRG sold oil from the Kirkuk-Ceyhan pipeline. But the central government in Baghdad took over the Kirkuk oil fields after the Kurds threatened in September to seek independence.
On Oct. 16, Baghdad implied that the Kirkuk oil would be sent out via Turkey as in the past. The pipeline had been used irregularly during the battle against the Islamic State (IS), and Baghdad cut off the flow completely after the September independence referendum. Turkey expected the flow to resume — but it hasn’t.