Category: Oil News

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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)

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Oil Ministry Finalises Export Figures for January

By John Lee.

Iraq’s Ministry of Oil has announced final oil exports for January of 108,190,068 barrels, giving an average for the month of 3.490 million barrels per day (bpd), a slight decrease from the 3.535 bpd exported in December.

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

Revenues for the month were $6.772 billion at an average price of $62.596 per barrel.

The oil was shipped by 31 international companies from the ports of Basra, Khor Al- Omaia and the single-point moorings (SPM’s) on the Gulf.

December export figures can be found here.

(Source: Ministry of Oil)

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Oil Ministry Finalises Export Figures for January

By John Lee.

Iraq’s Ministry of Oil has announced final oil exports for January of 108,190,068 barrels, giving an average for the month of 3.490 million barrels per day (bpd), a slight decrease from the 3.535 bpd exported in December.

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

Revenues for the month were $6.772 billion at an average price of $62.596 per barrel.

The oil was shipped by 31 international companies from the ports of Basra, Khor Al- Omaia and the single-point moorings (SPM’s) on the Gulf.

December export figures can be found here.

(Source: Ministry of Oil)

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New Oil Licensing Round Delayed by Elections

By John Lee.

Platts reports that the final details of Iraq’s latest oilfield licensing round will not be completed by the planned date of July, due to the upcoming elections.

Abdul Mahdy Al-Ameedi, Director General of the Oil Ministry’s Petroleum Contracts and Licensing Directorate (PCLD) told the CWC Iraq Petroleum Conference in Berlin:

“The timing may extend a bit especially as the whole project is connected with elections in April and May …

“Comments have been made by specialists in order to reorder contracts to include all the commitments and provisions I doubt that we will finish by July 5. It will take time but it will be done.“

The list of qualified companies can be found here.

(Source: Platts)

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New Oil Licensing Round Delayed by Elections

By John Lee.

Platts reports that the final details of Iraq’s latest oilfield licensing round will not be completed by the planned date of July, due to the upcoming elections.

Abdul Mahdy Al-Ameedi, Director General of the Oil Ministry’s Petroleum Contracts and Licensing Directorate (PCLD) told the CWC Iraq Petroleum Conference in Berlin:

“The timing may extend a bit especially as the whole project is connected with elections in April and May …

“Comments have been made by specialists in order to reorder contracts to include all the commitments and provisions I doubt that we will finish by July 5. It will take time but it will be done.“

The list of qualified companies can be found here.

(Source: Platts)

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Video: Iraq lures Investors to Boost Oil, Gas Output

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

Iraq is hoping to lure international investors to help develop its oil and gas industry.

With victory declared over fighters from Islamic State of Iraq and the Levant (ISIL, also known as ISIS), government ministers are meeting oil executives in Berlin to discuss how to exploit its vast reserves.

Al Jazeera’s Dominic Kane reports from Berlin:

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Iran-Iraq Oil Swap Delayed over Safety Concerns

By John Lee.

A plan to export Iraqi crude oil by truck to Iran has reportedly been postponed due to security concerns.

Under the oil-swap agreement, Iraq was to export 60,000 bpd of crude oil by truck from Kirkuk to Iran’s Kermanshah refinery (pictured), and ship back refined Iranian oil for southern Iraq.

Hamid Hosseini, the Iranian secretary-general of the Iran-Iraq Chamber of Commerce, said Iran does not have X-ray machines to scan the trucks coming from Iraq, adding that Iran is in talks with Iraq to use their X-ray facilities.

(Sources: Xinhua, Rudaw)

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Report: Shaping Iraq’s Oil and Gas Future

By John Lee.

A new report for the Atlantic Council argues that gas, being less politically fraught than oil, has the potential to serve as a key area of cooperation between Baghdad and Erbil and could help improve the reliability of electricity supply.

In Shaping Iraq’s Oil and Gas Future, Ellen Scholl recommends that:

  1. Baghdad and Erbil must get the incentive structure right. Part of the incentive structure should include supportive gas pricing.
  2. Institutions should mirror ambition.
  3. Baghdad and Erbil should take a comprehensive approach to developing and integrating infrastructure throughout the supply chain, including mid- and downstream infrastructure.

The full report can be downloaded here.

(Source: Atlantic Council)

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Qayara Refinery available for Investment

By John Lee.

The Ministry of Oil has announced an opportunity to invest in a 100,000-bpd refinery at the Qayara field in Ninawa governorate.

In a statement, the Ministry said:

The execution is according to the methods of BOOT or BOO and according to the investment law of the refineries No.64 for the year 2007 and its amendments.

The products of the refinery must be environment friendly according to the international standards.

The tax breaks must be according to the investment law No.13 for the year 2006.

In accordance with the second amendment of the investment law No.64 for the year 2007. The subtraction on the crude oil price over the ship is (8%) “The subtraction must be more than 5$ and less than 10$ of the global price”.

The studies, planning and follow-up directorate in the ministry of oil have prepared the data portfolio of the refinery and the price of the data portfolio shall be (30) thousand dollars “nonrefundable”.

The closing date of selling data portfolios is at the end of the work hours of Sunday the 1st of April 2018.

–  The receipt of the documents from the companies which would like to invest in the above mentioned refinery must be to the end of the work hours of Sunday the 15th of May 2018.

The presentation of the documents will be to the Studies Planning & Follow-up Directorate directly in a closed envelop. Otherwise the documents will be rejected.

For further information please contact the E-mails (studies@oil.gov.iq) or (studies.oil@gmail.com).

(Source: Ministry of Oil)

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Chevron Resumes Drilling in Kurdistan

By John Lee.

Chevron has reportedly announced that it had resumed drilling operations at the Sarta-3 well in Iraqi Kurdistan.

The US company temporarily suspended operations in October following the controversial independence referendum, which increased tensions between Baghdad and Erbil.

According to Kurdistan 24, it currently operates and holds an 80-percent contractor interest in two production-sharing contracts covering the Sarta and Qara Dagh blocks.

(Sources: Reuters, Kurdistan 24)