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CFO of Genel Energy to Step Down

Genel Energy announced on Tuesday that Esa Ikaheimonen (pictured), Chief Financial Officer, has advised the Board of his intention to leave the company on 16 March 2022, following the announcement of the Company’s 2021 financial results the day before.

In a statement, the company said that a search for a suitable replacement is ongoing and an announcement will be made in due course.

Bill Higgs, Chief Executive of Genel, said:

“Our financial results will be a testament to Esa’s time at Genel, as they will show a Company in a strong financial position, with a resilient and proven business model and the flexibility to utilise the balance sheet to grow the Company. On behalf of everyone at Genel I would like to wish Esa all the best in his future endeavours.”

Esa Ikaheimonen, Chief Financial Officer of Genel, said:

“Genel has strong leadership and finance teams, a robust financial position, and a lot to look forward to, and I wish the Company every success for the future.”

(Source: Genel Energy)

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Iraq to buy Exxon stake in West Qurna 1

By John Lee.

The Iraqi cabinet has agreed to allow the Basra Oil Company (BOC) to take over ExxonMobil‘s holding in the West Qurna 1 oilfield, at a price of up to $350 million.

Addressing media after Wednesday’s cabinet meeting, Minister of Communications Arkan Al-Shaibani (pictured) said the cabinet also allocated an initial payment of $250 million “according to the acquisition amount to cover the Basra Oil Company’s share in the work program and the budget for the year 2022 according to new developments provided that ExxonMobil relinquishes its litigation against the Basra Oil Company at the International Court of Arbitration.“

Note that other media list the acquiring entity as the Iraqi National Oil Company (INOC).

(Sources: Govt of Iraq, Reuters, S&P Global Platts)

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KRG issues new COVID-19 regulations

The Kurdistan Region’s High Committee for Combating COVID-19 met on Tuesday and issued the following directives as part of the Kurdistan Regional Government’s efforts to curb the spread of the pandemic:

  1. The vaccination deadline for public service employees (civil and military) will be extended to 20 January 2022. Any employee who fails to adhere to the directives will face disciplinary measures according to general health laws.
  2. COVID-19 tests will be administered at border crossings to people entering the Kurdistan Region, including those with COVID-19 Vaccination Cards. Entrance will only be given to those who can provide a negative result from a valid COVID-19 test taken within 48 hours of arrival.
  3. The Ministry of Endowment and Religious Affairs will issue special regulations regarding funerals in the Kurdistan Region, in coordination with relevant administrations.
  4. Tourist groups must provide negative results from a valid COVID-19 test within 48-hour of arrival or present valid Vaccination Cards.
  5. All citizens, regardless of their vaccination status, must wear a mask when indoors for any public space (e.g., Government offices, businesses, restaurants, banks, and others) and adhere to social distancing regulations.
  6. Starting 1 February 2022, entrance to public spaces (e.g., Government offices, stores, restaurants, malls, event halls, businesses, and others) will be denied to those who cannot produce a negative result from a valid test taken within the past 48 hours or a COVID-19 Vaccination Card.

(Source: KRG)

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Genel Suspends Drilling Ops on QD-2 well at Qara Dagh

Genel Energy has announced that drilling operations on the QD-2 well at Qara Dagh (40% working interest and operator) have been suspended.

As previously stated, the well had been side-tracked in response to encountering more complex geology above the target reservoir than expected.

Two further side-tracks have been initiated, but the licence partners have now concluded that it is impractical to continue the drilling operations from this wellbore in an attempt to reach the primary objective because of insurmountable technical problems. The decision has therefore been taken to suspend QD-2, with the minimum work obligation satisfied.

Licence partners Genel and Chevron will conduct a thorough evaluation of the QD-2 well and its results in 2022 to inform next steps on the licence.

Bill Higgs, Chief Executive of Genel, said:

“This has been a very challenging operation, and the decision to suspend drilling at this stage is prudent. It is of course not the outcome that we wanted, but the geological case for Qara Dagh remains intact and attractive.

“We will work with Chevron to ascertain the best way forward on the licence. In the meantime we will continue working with the community on our social initiatives, as we retain our commitment to the region.“

(Source: Genel Energy)

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Jiyad: Iraq’s Oil Licensing Rounds, Ten Years On

By Ahmed Mousa Jiyad.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iraq Oil Licenses Rounds – Views of the Architect and the Technocrat, Ten Years On

Petroleum licensing rounds, 2009-2010, are the most significant and impacting development that took place in post 2003 upstream petroleum and they manifest a grand opining for big push strategy.

These four bid rounds would make Iraq a game-changer with a total production plateau target of more than 12 million barrels daily (mbd) by 2017 from mostly supper giant and giant oilfields with a combined 68% of the country’s proven reserves.

Number of directly contracted international oil companies (IOCs) exceeds 15, belonging to 12 countries including the five permanent members of the UN Security council. The governing modality is a long term service contract, a uniquely hybrid type, with a duration of ca. 30 years each.

The issue, i.e., the licensing rounds, has been and still is divisive and those standing against the bid rounds personalize the debate and were persistent in their opposition to the extent that they managed to introduce legal obligations to revise them.

That concerted anti efforts succeeded in forcing the Ministry of Oil (MoO), in 2018, to premised its fifth bid round on “profit-sharing contracts, which is the monetary side of production-sharing contract; MoO was, obviously, ill-advised and badly too.

Click here to download the full report in pdf format.

Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad’s biography here.

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Iraq Oil Exports Flat for December

By John Lee.

Iraq’s Ministry of Oil has announced preliminary oil exports for December of 101,579,927 barrels, giving an average for the month of 3.277 million barrels per day (bpd), almost equal to the 3.273 million bpd exported in November.

The exports from the oilfields in central and southern Iraq amounted to approximately 98,570,290 barrels; we are still awaiting details of exports from Kirkuk, and via road to Jordan.

Revenues for the month were $7.037 billion, from which we calculate an an average price of $69.28 per barrel, in contrast to the “more than 72 dollars” stated by the Ministry.

November’s export figures can be found here.

(Source: Ministry of Oil)

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Agreement Signed for Al-Faw Refinery Project

By John Lee.

The preliminary principles agreement for the Al-Faw investment refinery project has been signed in Baghdad.

The refinery will have a capacity of 300,000 barrels per day, while the petrochemical complex will be able to produce 3 million tons [per annum?].

The Minister of Oil, Ihsan Abdul-Jabbar Ismail, said that this project will enhance the role of Iraq in manufacturing and petrochemical industries and contribute to sustainable development, adding that this contract is valued at 7-8 billion dollars.

The contract was signed by the Director General of South Refineries Company (SRC) Hussam Hussein Wali,  on behalf of the Ministry of Oil, and Yu Fang Chunk, General Manager of Hualu, on behalf of the Chinese side.

Hualu Engineering & Technology is majority controlled by China National Chemical Engineering Company (CNCEC), and describes itself as “an international engineering company proficient in providing project services such as investment and financing, consulting, technology research and development, engineering design, procurement, construction management, commissioning supervision, and plant operation and maintenance.”

(Sources: Ministry of Oil, Hualu)

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Iraq Finalises November Oil Exports

By John Lee.

Iraq’s Ministry of Oil has announced preliminary oil exports for November of 98,192,317 barrels, giving an average for the month of 3.273 million barrels per day (bpd), up from the 3.120 million bpd exported in October.

The exports from the oilfields in central and southern Iraq amounted to approximately 95,860,149 barrels; while exports from the Kirkuk fields through the port of Ceyhan amounted to 2,032,685 barrels. Although not stated explicitly, this seems to imply exports to Jordan by truck 299,483 barrels.

Revenues for the month were $7.611 billion at an average price of $77.510 per barrel.

October’s export figures can be found here.

(Source: Ministry of Oil)

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Genel Energy appoints new Non-Executive Director

By John Lee.

Genel Energy has announced the appointment of Yetik Mert (pictured) as an Independent Non-Executive Director, with immediate effect.

Yetik has almost 40 years’ technical, commercial, business development, and general management experience, including holding executive and non-executive Directorship roles across the energy utility and industrial sectors in MENA, CEE and the USA.

Yetik is currently serving as a Non-Executive Director and Chairman of the Remuneration, Governance and Nomination Committees on the Boards of Turkish companies Cimsa Cimento Sanayi ve Ticaret AS and Afyon Cimento Sanayi Turk AS (Sabancı Holding Group Companies), which operate in the industrial construction sector.

(Source: Genel Energy)

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Al Majal Signs Agreement with Iraq Drilling Company (IDC)

Al Majal Signs a Partnership Agreement with Iraq Drilling Company (IDC)

Al Majal has signed a three-year partnership agreement with Iraq Drilling Company (IDC).

The agreement aims to develop IDC’s technical teams and to qualify its specialized maintenance workshops in accordance with international standards.

In an online statement published by IDC, the company said that the agreement incorporates the joint cooperation in providing services that cover blowout preventers (BOPs), top drive systems, inspection and certification of equipment in accordance with API standards, in addition to coring services, gyro and EMMS services, valves and valves systems, fishing and downhole services, bottom hole assembly (BHA) services.

(Source: Al Majal)

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