Category: Iraq Oil & Gas News

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Iraq Working to make Money, not Burn it up in Gas Flares

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

Iraq working to make money, not burn it up in gas flares

Iraq plans to expand capacity at its oil refineries while at the same time reducing the amount of gas that is burned off during oil production. Instead of wasting the gas, the country will reap the benefits of putting it to good use.

New Oil Minister Thamer al-Ghadhban announced Oct. 31 that he will pay particular attention to oil-rich Basra in southern Iraq, an area where services have been neglected and people are angry.

Iraq continues to burn off most of the gas associated with oil production in its fields because it lacks sufficient facilities to capture the gas.

Click here to read the full story.

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Sanctions Halt Iraqi Oil Exports to Iran

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

Iraq’s new Prime Minister Adel Abdul Mahdi has opted for the policy of his predecessor, Haider al-Abadi, by committing himself to the US sanctions on Iran.

A few hours after he was sworn in, Abdul Mahdi stated Oct. 26 that when it comes to said sanctions, priority will be given to Iraq’s interests and independence.

Nevertheless, Iraq is seemingly incapable of doing without Iran, given their close bilateral economic ties. For this reason only, Iraq demanded that the United States allow the country to continue to import vital Iranian gas and energy supplies and food products. Washington consented Nov. 2, provided that payments not be made in US dollars.

Oil exports from the Kirkuk field, however, are excluded. Iraq’s new Oil Minister Thamer Ghadhban stressed that his country will “review” its current oil exports to Iran.

Click here to read the full story.

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Iraq Exemption from US Sanctions on Iran Energy

Iraq Granted Exemption from US Sanctions on Iran’s Energy Exports

Iraq will continue to have access to the energy it needs from Iran to generate and supply electricity, Brian Hook, the special representative for Iran at the US State Department, said.

“Iraq has been granted an exemption” to the energy sanctions the US has re-imposed on Iran, Hook said Monday on a media conference call without providing details.

Iraq is still importing natural gas and electricity from neighboring Iran and has set up a bank account to process payments in Iraqi dinars, according to two Iraqi government officials, who asked not to be identified because they’re not authorized to speak to media, Bloomberg reported on Tuesday.

Iraq’s central bank officials said in August that the country’s economy is so closely linked to Iran that Baghdad would ask Washington for permission to ignore some US sanctions.

Iraq imports crucial supplies from its neighbor including gas for power stations.

(Source: Tasnim, under Creative Commons licence)

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Will new Iraqi Govt Resolve Baghdad-KRG Issues?

By Nahwi Saeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

President Barham Salih on Oct. 27 announced that he has developed a proposal for resolving the dispute over Kirkuk between Baghdad and Erbil.

Without going into detail, he said his plan focuses on the ethnic and religious components in determining its fate, ignoring the interests of outside players in discussions about the city’s future.

The recent agreement by Kurds, Sunnis and Shiites on the formation of a national government — with Salih as president, Adel Abdul Mahdi as prime minister and Mohammed Halbousi as parliament speaker — raised hopes among many Iraqis that the outstanding issues between Baghdad and Erbil might be resolved, but will the new leadership be able to deliver?

 

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Rebuilding & Reconstruction – Iraq – Delivering the Vision

 Rebuilding & Reconstruction

– Iraq –

Delivering the Vision

Register Now

IBBC returns to Dubai on 25 November with a full agenda of expert speakers to discuss the most important issues facing Iraq’s economy.

Baroness Nicholson of Winterbourne, President of IBBC and The Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Turkmenistan & Kazakhstan will open the conference, alongside H.E. Mr Abdullah Ahmed Al Saleh, Undersecretary of the UAE Ministry of Economy for Foreign Trade & Industry, H.E. Mr Bangen Abdullah Rekani, Iraq’s Minister for Housing, Reconstruction & Public Municipalities, Dr Mehdi Al Alak, Secretary General of the Council of Ministers, Michael Townshend the Regional President of BP Middle East and Jon Wilks CMG Her Majesty’s Ambassador to Iraq.

A delegation of high-profile Iraqi Governmental Officials will be in attendance including Dr Hamid Ahmed, Deputy Chairman of the Prime Minister’s Advisory Committee (PMAC), Dr Sabah Mushatat, Investment and Reconstruction Advisor of the Prime Minister, Mr Louay Al-Yassiri, Governor of Najaf, Mr Nawjad Hadi, Governor of Erbil, Dr Wijdan Salim, PMAC and Mr Abas Imran, Technical DG, Ministry of Transport. Delegates will have the opportunity to engage with the speakers in dynamic and concentrated debates during Roundtable Discussions. Further Iraqi officials are expected to confirm their attendance in the coming weeks.

Other confirmed speakers include Christopher M. Cantelmi, Principal – Infrastructure & Natural Resources – International Finance Corporation (World Bank) and Kareem K. Ismail, Resident Representative for Iraq and Yemen, International Monetary Fund (IMF). Additional expert speakers are drawn from the Department of International Trade, Shell, Rolls-Royce, Siemens, Serco, SKA International Group, Basrah Gateway Terminal, Khudairi Group, G4S, National Bank of Iraq, Management Partners, EY, AFC Iraq Fund, Chevron, Wood and more.

Download the Full Agenda

Conference sessions will focus on:

  • Infrastructure, Rebuilding & Utilities Supply 
  • Oil & Gas – Increasing Production
  • Regulatory & Financial Framework – Encouraging International Investment
  • Logistics & Trade

A Pre-conference Reception and Networking Event is planned for Saturday 24 November at the Address Dubai Marina, where delegates can enjoy the spectacular surroundings and view. With Dubai being a hub for local and international companies in the region operating in Iraq, the conference attracts suppliers, investors, producers and buyers from Iraq, the UK and the wider international business community.

IBBC will also be holding a Tech Forum on 25 November, which will run in parallel to the conference at the same venue. Ticket holders will get complimentary access to the forum, where some of the key innovators of Tech in Iraq will be speaking on Fintech, the Consumer Economy, E-Government and the Start-Up Economy. Speakers include representatives from EY, Citi Bank, Restrata Group, MediaWorld, Khudairi Group, Avaya and the Technology Department of the Kurdistan Regional Government.

For any queries please email London@webuildiraq.org

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US “to Grant Iraq Waiver over Iran Sanctions”

The United States has told Iraq that it will be allowed to keep importing crucial gas, energy supplies and food items from Iran after Washington reimposes sanctions on Tehran’s oil sector, three Iraqi officials said.

The waiver is conditional on Iraq not paying Iran for the imports in US dollars, said the officials, who included a member of Iraq’s ministerial committee that oversees energy activities, Reuters reported.

The US sanctions take effect on Nov. 4.

The ministerial committee official said Iraq’s finance ministry had set up an account with a state-run bank where Baghdad would deposit in Iraqi dinars the amounts owed to Iran for the imports.

Central bank officials said in August that Iraq’s economy is so closely linked to Iran that Baghdad would ask Washington for permission to ignore some US sanctions.

Iraq imports crucial supplies from its neighbor including gas for power stations.

(Source: Tasnim, under Creative Commons licence)

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KRG Update on Oil Production and Ops

Tawke Licence:

The Kurdistan Regional Government notes the updates by DNO and Genel Energy on November 1st regarding production increases under the Tawke Production Sharing Contract (PSC).

The KRG is pleased with the efforts of the Tawke PSC Contractors in the Peshkabir area of the Tawke PSC Licence, where production has risen to over 50,000 barrels per day (bpd) within 18 months, exceeding expectations.

The recent boost in production at the Peshkabir area has more than compensated for the natural decline of the main Tawke field area, where production is now down to about 80,000 bpd, from 109,000 bpd in July 2017. Overall production under the Tawke PSC Licence reached 126,000 during October, compared to 114,000 bpd in July 2017. The current average is around 130,000 bpd (click here to view the chart).

Pipeline Upgrades:

The KRG has also recently completed an upgrade of its export pipeline by installing another pumping station at Shaikhan, which boosts capacity of the pipeline from 700,000 bpd to 1 million bpd. This extra capacity will accommodate future production growth from KRG producing fields, and can also be used by the federal government to export the currently stranded oil in Kirkuk and surrounding areas.

Oil Export:

The KRG currently exports over 400,000 bpd of crude oil. The KRG’s policy of maintaining consistent and timely payments to its producing oil companies has led to more investment in its oil fields, stabilising production levels and paving the way for further production increases during 2019.

These export achievements generate more revenues that will help to reduce the KRG’s overall debts and aid the economic revival and sustainability of the Kurdistan Region. The KRG’s policy of supporting its producers provides further evidence that Kurdistan’s PSCs are a win-win for investors and the citizens of the Kurdistan Region.

(Source: KRG)

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Oil Exports Revenues Rise in October

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for October of 107,530,008 barrels, giving an average for the month of 3.469 million barrels per day (bpd), a slight decrease from the 3.560 bpd exported in September.

These exports were entirely from the southern terminals, with no exports registered from Kirkuk via Ceyhan.

Revenues for the month were  $8.055 billion at an average price of $74.912 per barrel.

September export figures can be found here.

(Source: Ministry of Oil)

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“Peshkabir is on Steroids” – DNO Boss

DNO ASA, the Norwegian oil and gas operator, today announced a rise in third quarter 2018 net profit to USD 63 million from operating revenue of USD 171 million on the back of solid production, regular export payments and higher oil prices.

Operated production averaged 117,600 barrels of oil equivalent per day (boepd) during the quarter including 81,500 boepd on a company working interest basis. DNO received three monthly export payments totaling USD 164 million net to its 75 percent operated interest in the Tawke license in the Kurdistan region of Iraq. Realized export prices averaged USD 61 per barrel during the quarter.

Net profit for the three months ending September was ahead of the USD 93 million net loss in the same period last year, excluding the one-time recognition of its Kurdistan Settlement Agreement in August 2017, and above the USD 43 million in the second quarter this year. Operating revenue was up from USD 73 million in the third quarter a year earlier and USD 147 million in the preceding quarter in 2018.

Notwithstanding third quarter spend of USD 71 million, DNO maintained its strong financial position with free cash balances of USD 640 million. In addition, the Company held USD 335 million in marketable securities as at 30 September, including a 28.22 percent stake in London-listed Faroe Petroleum plc, a 5.64 percent stake in Oslo-listed Panoro Energy ASA, a 4.83 percent stake in Olso-listed RAK Petroleum plc and a 3.23 percent stake in DNO held through treasury shares.

Going into the fourth quarter, on the Tawke license in Kurdistan containing the Tawke and Peshkabir fields the Company has ramped up production from the Peshkabir field to over 50,000 barrels of oil per day (bopd) from six wells less than 18 months after commencement of operations, beating its end-2018 target ahead of schedule and below budget. Six wells are currently producing from Peshkabir, and the seventh, Peshkabir-8, will shortly commence test production. Peshkabir-9 will spud in mid-November.

“Peshkabir is on steroids,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani. “Production continues to climb and we are proud of our operating teams who set stretch targets and then proceed to beat them,” he added. “With the fast-track, low-cost development of Peshkabir, DNO continues to tease out Kurdistan’s promise as a world class oil province,” Mr. Mossavar-Rahmani said.

The Company has four active rigs in Kurdistan, of which one is at the Peshkabir field, two at the Tawke field and one at the Baeshiqa license. In mid-October, the Company spud the Baeshiqa-1 exploration well to test the Cretaceous at the Baeshiqa structure. A back-to-back well to test the deeper Jurassic and Triassic on the same structure will follow in December. A third well is planned to test the Jurassic and Triassic on a separate structure during 2019.

At the Tawke field, two shallow Jeribe wells, Tawke-50 and Tawke-51, were brought onstream during October. The Tawke-49 well, drilled to the deeper Cretaceous, will follow later this month. The well has been drilled utilizing underbalanced technology, the first on the license, and is producing from the target zone while drilling. The Tawke-52 Cretaceous well will spud by the end of November. Tawke is currently producing at an average rate of 80,000 bopd.

Elsewhere, the Rungne prospect offshore Norway was spud last month by operator Faroe Petroleum; DNO separately holds a 10 percent interest in the license. The Company will participate in at least five additional wells offshore Norway next year.

The Company currently holds 21 Norway licenses, including the 20 percent interest in a Barents Sea license recently acquired from Chevron containing the Korpfjell prospect.

The Company has received ten monthly Kurdistan export payments year-to-date totaling USD 500 million net to DNO, of which USD 59 million was received in October. This compares to USD 380 million received net to DNO during the full-year 2017.

DNO expects to exit the year with operated Kurdistan production of at least 130,000 bopd, representing more than one-half of total production by international operators and around one-third of all Kurdistan exports.

(Source: DNO)

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Canadian Firm Wins Nassiriya Refinery Contract

Iraq’s Oil Ministry has approved a preliminary agreement with Vancouver-based Pacific Future Energy to build a refinery in Nassiriya.

Pacific is likely to work on the project in tandem with SNC-Lavalin, a Montreal-based engineering and construction firm that has a partnership with Pacific dating back to 2015, and longstanding ties in Iraq.

More details here from Iraq Oil Report (subscription required)

(Source: Iraq Oil Report)