GKP Shares Rise on Corporate Update

By John Lee.

Shares in Gulf Keystone Petroleum (GKP) ended the day up more than 6 percent on Friday, as the Kurdistan-focused oil producer gave an operational and corporate update:

Jon Harris (pictured), Gulf Keystone’s Chief Executive Officer, said:

We continue to safely navigate a challenging operating environment due to COVID-19, with gross average year-to-date production of c.43,600 bopd, up almost 20% from 2020 annual average gross production. Today, we are pleased to announce that we have restarted work to complete SH-13, marking the resumption of drilling activities ahead of schedule.

“As a result, we now expect to increase gross production towards 55,000 bopd in Q4 2021 and to be at the upper end of 2021 guidance (40,000-44,000 bopd) as we continue to develop and realise the value of the Shaikan Field’s substantial reserves and resources for the benefit of all stakeholders.

 55,000 bopd investment programme

  •  Successful restart of drilling activities, with commencement of SH-13 completion ahead of the previously announced schedule of Q3 2021.
  • After SH-13, SH-I will be drilled and electric submersible pumps will be installed in two existing wells.
  • Gross production is now expected to increase towards 55,000 bopd in Q4 2021, versus previous guidance of Q1 2022.

Operational

  • Continued strong safety performance, with no Lost Time Incident (“LTI”) recorded for over 530 days.
  • Continuing to effectively manage the impact of COVID-19 on production operations and the resumption of drilling activities despite continued challenges on the ground.  
  • Gross average production from the field in 2021 to date of c.43,600 bopd, in line with 2021 guidance.

Financial

  • $100.8 million ($78.9 million net to GKP) received from the Kurdistan Regional Government in 2021 to date for payments of crude oil sales and recovery of outstanding arrears. 
  • As previously announced, proposing a $25 million annual dividend and $25 million special dividend, both for approval at next week’s Annual General Meeting as we continue to balance investment in growth and returns to shareholders.
  • Retain a robust balance sheet, with a cash balance of $195 million as at 10 June 2021.

Outlook 

  • Expect 2021 average gross production guidance to be towards the upper end of the 40,000 to 44,000 bopd guidance range following early resumption of drilling activities.
  • 2021 guidance of $55-$65 million net capex and $2.5 to $2.9/bbl gross unit Opex remains unchanged.
  • Continuing to progress the preparation of the Field Development Plan, including the Gas Management Plan, through engagement with the Ministry of Natural Resources and other stakeholders; we will provide updates as this work progresses.

(Sources: GKP, Google)

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Iraqi Tankers Re-Registered in Umm Qasr

By John Lee.

Two oil tankers owned by the State Company for Maritime Transport (SCMT) have been transferred from Jordanian registration to registration in the Iraqi port of Basra, following the lifting of sanctions.

Iraqi Transport Minister, Captain Nasser Hussain Bandar Al-Shibli [Captain Nasser Hussein Bandar Al-Shibli], raised the Iraqi flags on the vessels, the Al-Asma’i and the Al-Qurna, at a ceremony at the port of Umm Qasr on Sunday.

(Source: SCMT)

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Global Solidarity Needed for Iraq’s Vulnerable Children

From Iraq Solidarity News (Al-Thawra). Re-published with permission by Iraq Business News.

In this conversation with Liz McRae, Hussein Al-alak hears about the efforts which the Iraqi Children Foundation have been undertaking, during the course of the Covid-19 pandemic. Liz McRae is the Executive Director of the Iraqi Children Foundation.

Can you tell us about the Iraqi Children Foundation and why it was founded?

The Iraqi Children Foundation (ICF) intervenes in the lives of orphans and street children who are vulnerable to abuse, neglect, and exploitation by criminals, traffickers and extremists. The organization was set up ten years ago by Americans who saw the need to help rebuild Iraq after so many years of conflict. More than 800,000 children were orphaned as a result of the Iraq War, and the ISIS occupation displaced another 1.3 million.

Our vision is that all children in Iraq have a voice, and are empowered to reach their full potential. All our programs have this goal in mind. We help vulnerable children through programs like “The Hope Buses”; we convert used city buses into colorful, child friendly classrooms. Each bus has two teachers and a social worker, and serves around 50 children with tutoring, nutrition, health care, social services, practical life lessons, community, and fun.

Another program is called “The Street Lawyers”; a team of lawyers who provide legal protection for children who are targeted by criminals and traffickers, abused by employers, or are facing other risks. They also assist children to get their papers so that they can go to school.

The ICF supports children who are vulnerable. Can you describe some of these vulnerabilities?

There are many vulnerable children in Iraq. In particular, we work with children who are orphaned (meaning, they have lost one or both parents), and children who are working to support their families.

Many children in Iraq are also vulnerable due to displacement caused by conflict. These children are vulnerable to abuse and can be targeted by criminals and extremists. More recently, COVID-19 adds an extra challenge for children and families, as it has done for people all over the world.

The ICF also supports children who are at risk of exploitation. As Iraq experiences many challenges, how does exploitation manifest itself?

For families experiencing poverty, displacement, or a lack of access to job opportunities, the possibility of exploitation is increased. Many children in Iraq have to work to support their families, especially when one or both parents have died. These children can be exploited by employers, and are easy targets for criminals and extremist organizations.

The risk of exploitation is also heightened by the fact that children working are often not attending school on a regular basis. Without access to education, it becomes harder to stay away from potentially exploitative situations.

Many countries have been under lockdown due to the Covid Pandemic, what have the ICF been doing during this time?

Many children in Iraq face incredible hardship every single day, often without access to proper nutrition, education, healthcare, and safety. COVID-19 adds new challenges for these children, and also exacerbates the existing issues.For children living in poor communities, social distancing is difficult (if not impossible) due to large numbers of people living in close confines, and there may be little or no access to hygiene supplies or PPE, food, work, school, and community members. The bottom line is: COVID-19 makes vulnerable children more vulnerable.

During this critical time, we are doing our best to help keep children as safe and healthy as possible. Teams have been distributing food and hygiene supplies to vulnerable children and families in multiple cities, and our Hope Bus staff have paid home visits to children from the Hope Buses to show them how to use PPE and practice good hygiene so that they can stay safe during COVID-19.

We continue to work with the teams on the ground in Iraq, who are doing their best to work safely and always with the best interests of the children in mind.

How can people within the international community, support the Iraqi Children Foundation and their work in Iraq? 

You can do a lot from home; you are not powerless to help the vulnerable children in Iraq. Here are some things you can do to help:

Follow and spread the word – follow us on social media to learn more about the challenges Iraqi Children are facing, to hear ICF news and progress, and share to spread the word so we can make a larger impact (Facebook/LinkedIn: Iraqi Children Foundation, Instagram/Twitter: @IraqiChildren)

Give what you can – every dollar matters, especially now. Donate any amount at our Global Giving page to help. Also, new monthly donors get a 100% match on their first month of giving.

Fundraise – help us fundraise; start your own mini-campaign using Global Giving or Facebook – it only takes 5 minutes! Email liz@iraqichildren.org to find out more, and we can help you set it up.

The post Global Solidarity Needed for Iraq’s Vulnerable Children first appeared on Iraq Business News.

Petrel Resources’ Focus will be Iraq

By John Lee.

In its preliminary results for the year ended 31st December 2020, Petrel Resources made the following statement on its interests in Iraq:

Meanwhile Petrel continues to push its interest in Iraq and Ghana. For the foreseeable future oil will play a major part in world economic development.

“Iraq has some of the best oil deposits in the world. In a stable era Iraqi oil production would be 2 or 3 times the current under 4 million barrels a day.

“For more than 20 years Petrel has been in Iraq. Activities have languished in year past but the addition of an Iraqi director, Riadh Mahomud Hameed and the contact of French investors led to a re-opening of contacts.

“It has been, and remains a difficult and dangerous place to explore. Led by Riadh we are putting exploration proposals to the authorities. We are particularly keen to revisit the Merjan field where we earlier produced development proposals …

“Our focus in the immediate future will be Iraq

(Source: Petrel Resources)

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HRW: Inadequate Plans for Camp Closures

From Human Rights Watch (HRW). Any opinions expressed are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Inadequate Plans for Camp Closures

Recent camp closures have stripped thousands of displaced people of essential services during the Covid-19 pandemic, with inadequate government plans for their return home, Human Rights Watch said on Thursday.

Click here to read the full article.

(Source: HRW)

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Iraqi Cabinet Awards Energy Contracts

By John Lee.

At its regular meeting on Tuesday, the Iraqi Cabinet agreed to send an invitation, “in a single bid manner“, to the French company Total to invest in a project to generate 1,000 megawatts of solar electric power.

The project was originally agreed in March as part of a larger engagement with the French energy company, which last week announced that it would rebrand itself as TotalEnergies.

The cabinet also approved a request from the Ministry of Electricity to award a contract “in a single bidding manner” to the Chinese company PowerChina (Power Construction Corporation of China).

(Source: Govt of Iraq)

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Increasing Oil Production at West Qurna 2

By John Lee.

Iraq’s Oil Minister, Ihssan Abdul-Jabbar Ismail, has announced the start of experimental operations at the Yamamah reservoir in the West Qurna 2 oil field, with the aim of increasing output from the reservoir from 10,000 barrels per day (bpd) to 350,000 bpd.

When fully implemented, the development would bring total production at the field to 800,000 bpd.

The Minister praised the work of Russian company Lukoil, which is developing the field.

(Source: Ministry of Oil)

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Dr. Rafid Aziz Joins Board of Iraqi Children Foundation

Dr. Rafid Aziz Joins Board of Directors of Iraqi Children Foundation

The Iraqi Children Foundation (ICF) is pleased to announce the selection of Dr. Rafid Aziz (pictured), President of the United Iraqi Medical Association in the United Kingdom, to join the ICF Board of Directors.

Grant Felgenhauer, ICF Board Chairman, said:

“ICF has pledged in 2021 to expand services to meet the medical and disability needs of Iraqi orphans and vulnerable children. Having a medical professional of such distinction on our Board will help equip ICF to pursue that commitment. We are thrilled to have Dr. Aziz join our team.”

ICF has provided occasional medical support to children in Iraq in recent years, such as wheelchairs, prosthetics, and clinical services. But the charity hopes to develop a more robust medical program. Dr. Aziz will be leading ICF’s efforts to expand outreach and support to Iraqi orphans and vulnerable children with medical and disability needs.

Dr. Aziz, who went to medical school in Baghdad, Iraq, serves as President of the United Iraqi Medical Association (UIMA) for the UK and Ireland, an independent network that was established to look after the professional and social needs of the Iraqi healthcare community in the UK, as well as to support medical/nursing education and effective healthcare policy in Iraq. He is also the Medical Director, Integrated Urgent Care Clinical Lead, and a trainer at Hertz Urgent Care in the UK.

(Source: ICF)

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Iraq Finalises Oil Exports for April

By John Lee.

Iraq’s Ministry of Oil has announced finalised oil exports for April of 88,398,319 barrels, giving an average for the month of 2.947 million barrels per day (bpd), effectively the same as the 2.946 million bpd exported in March.

The exports from the oilfields in central and southern Iraq amounted to approximately 85,534,916 barrels, while exports from Kirkuk amounted to 2,863,403 barrels.

Revenues for the month were $5.550 billion at an average price of $62.779 per barrel.

March’s export figures can be found here.

(Source: Ministry of Oil)

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