Category: Kuwait

Posted on

Video: Why Oil-Rich Iraq Needed Kuwait Energy Deal

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Many ask why oil-rich Iraq needed to make Kuwait energy deal

Iraq’s government has signed a deal with Kuwait in a bid to alleviate its energy crisis after the lack of kerosene and electricity led to widespread unrest.

But many are asking why Iraq, which holds the world’s fifth-largest petroleum reserves, needs help from Kuwait.

Al Jazeera‘s Imran Khan reports from Baghdad:

Posted on

Kuwait donates Generators to Iraq

Kuwait has donated 17 mobile electric generators with a total capacity of 30,000 kilowatts to Iraq, the Undersecretary of the Kuwaiti Ministry of Electricity and Water, Mohammed Bushehri has announced.

In a press statement, Bushehri said the donation came “to alleviate the electricity crisis in the Iraqi city of Basra”.

“In the light of the current difficult circumstances faced by our brothers in Iraq, which is partly due to a severe shortage of electricity, His Highness the Emir of Kuwait, Sheikh Sabah Al Ahmad Al Jaber Al Sabah has instructed us to provide urgent assistance to brotherly Iraq” he said.

The Iraqi Ministry of Electricity announced last Friday that Kuwait would supply it with fuel to operate the power stations in the country.

Videos were circulated on social media showing a convoy of generators and fuel tankers heading to Iraq.

Iran has recently stopped exporting electricity to Iraq as a result of Baghdad’s accumulated debt.

(Source: Middle East Monitor)

(Picture: Parliament in Kuwait City. Credit, Leshonai)

Posted on

Kuwait Energy may sell Block 9

By John Lee.

Kuwait Energy has reportedly hired an investment bank to advise it on options that could include selling all or part of its Block 9 field in southern Iraq.

Reuters says that Perella Weinberg Partners (PWP) will assist in creating liquidity and a cash buffer to repay debt.

Discussions on a possible merger with UK-listed SOCO International broke down earlier this year.

(Source: Reuters)

Posted on

Kuwait Energy starts Producing Gas at Siba

By John Lee.

Kuwait Energy has started producing natural gas from the Siba field, south of Basra, on Wednesday.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) announced an inital production rate of 25 million cubic feet a day (mcf/d), increasing to 100 mcf/d by the end of the year.

Kuwait Energy was awarded a 20 year Gas Development and Production Service Contract (GDPSC) for the Siba field in June 2011, granting the company operatorship and 45 percent revenue interest, but it farmed out a 20 percent stake to the Egyptian General Petroleum Corporation (EGPC) in October 2016.

(Source: Ministry of Oil)

Posted on

Kuwait Energy starts Producing Gas at Siba

By John Lee.

Kuwait Energy has started producing natural gas from the Siba field, south of Basra, on Wednesday.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) announced an inital production rate of 25 million cubic feet a day (mcf/d), increasing to 100 mcf/d by the end of the year.

Kuwait Energy was awarded a 20 year Gas Development and Production Service Contract (GDPSC) for the Siba field in June 2011, granting the company operatorship and 45 percent revenue interest, but it farmed out a 20 percent stake to the Egyptian General Petroleum Corporation (EGPC) in October 2016.

(Source: Ministry of Oil)

Posted on

Oil Ministry Conf on Development of 11 Exploration Zones

By John Lee.

Iraq’s Ministry of Oil will hold a conference on Thursday 29th March to announce for a new licensing round to develop and rehabilitate 11 exploration zones on the borders of Iran and Kuwait, including one offshore zone on the Gulf.

The conference will be attended by 13 international companies which have purchased the data portfolios, in addition to two companies which intended to buy data portfolios.

These 15 companies will compete for the rights to develop and rehabilitate these exploration zones.

Assim Jihad, spokesman of the Ministry of Oil, said also that the form of the contract will be “service contract with a few modifications”.

(Source: Ministry of Oil)

Posted on

Iraq signs Memorandum of Cooperation with Kuwaiti Company

By John Lee.

Iraq’s Oil Ministry has signed a a memorandum of cooperation with the Kuwait-based company Al-Arfaj, with a view to capturing and using associated gas from Iraq’s oil fields.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] ending gas flaring and using the gas for petrochemical production was a priority for the Ministry.

According to a statement from the Ministry:

“The memorandum included the formation of a coordination committee between the two sides to exchange the information about the projects in the zone and the world. The memorandum included also the desire of the company to participate in the flare gas investment project and the methanol production, as well as to invite the ministry of oil to contribute in the investment of the project of building an oil refinery in India with a petrochemicals complex.”

(Source: Ministry of Oil)

Posted on

Kuwait Energy signs Block 9 Farm-out Agreement

Kuwait Energy Signs Block 9, Iraq Farm-out Agreement with Dragon Oil

Kuwait Energy (KEC) has announced the signing of the Block 9, Iraq Farm-out Agreement with Dragon Oil (a wholly-owned subsidiary of Emirates National Oil Company Ltd, the national oil company of Dubai).

As per the Farm-out Agreement, Kuwait Energy will assign a 15% participating interest in the Block 9, Iraq service contract comprised of 8.57% participating interest in Block 9, Iraq to Dragon Oil in consideration for US$100 million in cash; and 6.43% participating interest in Block 9, Iraq to Dragon Oil in settlement of a dispute with Dragon Oil in relation to a non-controlling interest in Block 9, Iraq.

The agreement was signed on 11 February 2018 by Ali Rashid al Jarwan, Dragon Oil Chief Executive Officer (CEO); and Abby Badwi, the CEO of Kuwait Energy.

Abby Badawi (pictured), Chief Executive Officer of Kuwait Energy, said:

“This is a great moment for Kuwait Energy and Dragon Oil. The extension of our Block 9 partnership with Dragon Oil has meant that both Companies can work as equal equity partners on the concession allowing us to best utilise our joint technical expertise in delivering the submission of the Block 9 full field development plan to the Iraqi government.

“The reduction in future Block 9 capital expenditure exposure coupled with the material cash injection strengthens Kuwait Energy liquidity position going forward.“

The assignment of the 15% participating interest in Block 9, Iraq from Kuwait Energy to Dragon Oil remains subject to Iraqi government and partner approval. Post granting of these approvals, Kuwait Energy will remain the operator with a reduction in participating interest from 60% to 45%,

Dragon Oil participating interest will increase from 30% to 45% with the remaining 10% participating interest being held by Egyptian General Petroleum Company.

(Source: Kuwait Energy)

Posted on

Five Oil Storage Facilities available for Investment

By John Lee.

Iraq’s National Investment Commission (NIC) has included five oil storage facilities in its 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:

  • Bin Omar field for crude oil in Basra Province, with a design capacity of 22x 66000 m3 (first phase) and 9x 66000 m3 (second phase).
  • Mosul field for Petroleum Products/ Gasoline 4x 10000 m3, Diesel Fuel 3x 10000 m3 and Kerosene 3x 10000 m3 in Mosul Province.
  • Tuba field for Petroleum Products/ Gasoline 4x 20000 m3, Diesel Fuel 2x 20000 m3, Kerosene 3x 10000 m3 and Jet fuel 2x 50000 m3 in Basra Province.
  • Aziziya field for Petroleum Products/ Gasoline 2x 10000 m3, Diesel Fuel 1x 10000 m3 and Kerosene 1x 10000 m3 in Kut.
  • Samara’a field for Petroleum Products/ Gasoline 4×2500 m3, Diesel Fuel 2×5000 m3 and Kerosene 2×5000 m3 in Saladin Province.

The full 46-page document can be downloaded here.

(Source: NIC)

Posted on

Five Oil Storage Facilities available for Investment

By John Lee.

Iraq’s National Investment Commission (NIC) has included five oil storage facilities in its 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:

  • Bin Omar field for crude oil in Basra Province, with a design capacity of 22x 66000 m3 (first phase) and 9x 66000 m3 (second phase).
  • Mosul field for Petroleum Products/ Gasoline 4x 10000 m3, Diesel Fuel 3x 10000 m3 and Kerosene 3x 10000 m3 in Mosul Province.
  • Tuba field for Petroleum Products/ Gasoline 4x 20000 m3, Diesel Fuel 2x 20000 m3, Kerosene 3x 10000 m3 and Jet fuel 2x 50000 m3 in Basra Province.
  • Aziziya field for Petroleum Products/ Gasoline 2x 10000 m3, Diesel Fuel 1x 10000 m3 and Kerosene 1x 10000 m3 in Kut.
  • Samara’a field for Petroleum Products/ Gasoline 4×2500 m3, Diesel Fuel 2×5000 m3 and Kerosene 2×5000 m3 in Saladin Province.

The full 46-page document can be downloaded here.

(Source: NIC)