Category: Iraq Oil & Gas News

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Cabinet to Improve Services in Basra; Approves Kirkuk Refinery License

The Cabinet held its weekly regular meeting in Baghdad on Tuesday under the chairmanship of Prime Minister Haider Al-Abadi.

At the meeting, it was decided to:

  • direct the Ministry of Water Resources to deliver water for Basra province to a rate of 75 m3 / s and remove unauthorised structures on the rivers;
  • direct the Ministry of Water Resources to follow-up on the chlorine ratio in the water of Basra and other provinces;
  • launch the Basra sewage waste management project, which has been suspended since 2015;
  • grant an investment license for the construction of the Kirkuk oil refinery;
  • vote on the implementation of a response to the demands of the demonstrators in Karbala, Basra, Dhi Qar, and Najaf;
  • allocate a residential plot for young athletes who win the gold, silver or bronze medals at international sporting championships.

(Source: Iraqi Govt)

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Oil Ministry Finalises Export Figures for July

By John Lee.

Iraq’s Ministry of Oil has announced final oil exports for July of 109,857,705 barrels, giving an average for the month of 3.544 million barrels per day (bpd), an increase from the 3.521 bpd exported in June.

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

Revenues for the month were  $7.532 billion at an average price of $68.566 per barrel.

June export figures can be found here.

(Source: Ministry of Oil)

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SOMO “Close to JV” with China’s Zhenhua

By John Lee.

Iraq’s State Oil Marketing Organization (SOMO) is reported to be close to a deal with China’s state-run Zhenhua Oil to boost its crude oil sales.

According to Reuters, China is under pressure to cut oil purchases from Iran, as the United States re-imposes sanctions on Tehran.

More here.

(Source: Reuters)

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Agreement Expected with Kuwait on Joint Oil Fields, Gas Exports

By John Lee.

Kuwait reportedly expects to reach agreement with Iraq on joint oil fields and the import of Iraqi gas by the end of this year.

KUNA quotes Kuwait’s Oil Minister and Minister of Electricity and Water Engineer, Bakheet Al-Rashidi, as saying:

“We are in the process of selecting a global consultant to study the joint fields project.”

(Source: KUNA)

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FLS to Transport Oil Pipes and Equipment to Iraq

By John Lee.

Fleet Line Shipping (FLS) has won a contract to transport 11,000 tons oil and gas equipment and pipes from the United Arab Emirates (UAE) to Iraq.

The first batch of pipe laying machines, each weighing 45 tons, was loaded on a ro-ro ship from Jebel Ali to the port of Umm Qasr in Iraq.

Delivery will be 450 kms from port.

(Source: X2 Elite)

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Basra Protests spark Govt Scramble to Create Jobs

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.

The Iraqi Cabinet announced Aug. 12 that it has approved a regulation by the Ministry of Labor requiring that 50% of foreign oil company employees working in the country be Iraqis.

The move followed mass demonstrations in Basra calling for better public services, including clean water and working and reliable electricity, and job opportunities for the unemployed in the city. Iraq’s largest oil reserves lie beneath Basra province.

Basra Governor Assaad al-Eidani had on July 31 announced that an agreement had been concluded with the foreign oil companies to secure job opportunities for Basra residents. Days earlier, the Associated Press reported Deputy Governor Dhirgham al-Ajwadi saying that the unemployment rate in Basra, population 4 million, had risen sharply to at least 30%.

On July 13, demonstrators had stormed the headquarters of the Russian oil company LUKOIL at Basra’s West Qurna 2 field, one of the largest, leading workers to pack their belongings. A number of them were evacuated by helicopter.

Click here to read the full story.

(Picture Credit: Ahmed Mahmoud)

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Talks continuing on Iraq-Kuwait Electricity Link

By John Lee.

Talks are reportedly continuing to complete the electricity linkage between Iraq and Kuwait.

KUNA quotes Kuwait’s Oil Minister and Minister of Electricity and Water Engineer, Bakheet Al-Rashidi (pictured), as saying:

“We expect that these negotiations will ultimately lead to linking Iraq’s electricity grid with the Gulf network and then link with Turkey and Europe on the long-term.

“We are always ready to help our brothers in Iraq, according to the instructions of the political leadership.”

(Source: KUNA)

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Weir signs $50m Contracts in Iraq

By John Lee.

Weir Oil & Gas Dubai has announced the signing of multi-year contracts in Iraq with two international oil companies totaling more than $50 million USD.

According to a press release from the company, the contracts secure the provision of Weir Oil & Gas workshop services and engineering support for an oil field and valve repair and maintenance services for another giant oil field, respectively.

Ronan Le Gloahec (pictured), EMEARC Managing Director for Weir Oil & Gas, said:

“We are pleased to support our clients through providing services, repairs and important upgrades while assisting them with engineer-driven change management protocols and production facility turnarounds.”

(Source: Weir)

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Weir signs $50m Contracts in Iraq

By John Lee.

Weir Oil & Gas Dubai has announced the signing of multi-year contracts in Iraq with two international oil companies totaling more than $50 million USD.

According to a press release from the company, the contracts secure the provision of Weir Oil & Gas workshop services and engineering support for an oil field and valve repair and maintenance services for another giant oil field, respectively.

Ronan Le Gloahec (pictured), EMEARC Managing Director for Weir Oil & Gas, said:

“We are pleased to support our clients through providing services, repairs and important upgrades while assisting them with engineer-driven change management protocols and production facility turnarounds.”

(Source: Weir)

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DNO Reports Payment for Tawke Deliveries

By John Lee.

DNO ASA, the Norwegian oil and gas operator, has reported receipt of USD 69.03 million as payment for May 2018 crude oil deliveries to the export market from the Tawke license in the Kurdistan region of Iraq.

The funds will be shared by DNO and partner Genel Energy plc pro-rata to the companies’ interests in the license.

Separately, a payment of USD 5.99 million has been received net to DNO, representing three percent of gross Tawke license revenues during May, as provided for under the August 2017 receivables settlement agreement with the Kurdistan Regional Government.

DNO operates and has a 75 percent interest in the Tawke license, which contains the Tawke and Peshkabir fields.

Following regularization of export payments for Tawke license production since February 2016, the Company will no longer make monthly receipts announcements. The Company will instead update the market on export volumes and values as part of its quarterly financial reporting.

(Source: DNO)