Category: Oil News

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IBBC hosts Members’ Retreat at Cumberland Lodge

This weekend, the Iraq Britain Business Council (IBBC) hosted its annual members’ retreat at Cumberland Lodge, Windsor Park, which was generously sponsored by Al Burhan Group.

As with previous years, it was very well attended by over seventy delegates, and allowed our members to mingle and network with representatives of other businesses, civil servants, and Iraqi government dignitaries.

Speakers and organisations represented included:

  • Dr Falah Al Amiri, Advisor to the Ministry of Oil, Government of Iraq
  • Dr Hameed Ahmed, Deputy Higher Education Minister
  • Eng. Dara Rasheed, Deputy Minister of Housing, Construction & Municipalities
  • Jon Wilks CMG, HM Ambassador to Iraq
  • Beverley Simpson, Director, Department of International Trade (DIT) in Iraq
  • Dr Victoria Lindsay, Director, British Council, Iraq
  • Emma Sky, Director, Greenberg World Fellows Program, Yale University
  • Nicolas Pelham, The Economist
  • Professor Toby Dodge, London School of Economics
  • Dr Renad Mansour, Chatham House
  • Al Burhan Group
  • Basra Gateway Terminal
  • Bath Spa University
  • BP
  • Chevron
  • Constellis
  • ExxonMobil
  • Financial Times
  • G4S
  • KBR
  • Management Partners
  • Mosul University
  • OiLSERV Kuwait
  • Petrofac
  • Rolls-Royce
  • Serco
  • Shire Oak International
  • Stirling Education
  • Tube Tech International
  • TurnKey LLC
  • University of Dundee
  • University of Liverpool
  • University of Northampton
  • University of Northampton
  • University of Sheffield
  • Wood Plc

Sessions included discussions and panels on the state of Iraq, contemporary Middle Eastern politics, meetings for our various sector tables (including oil and gas, and construction and infrastructure), economic development strategies for Iraq, and how higher education partnerships could be developed between the UK and Iraq. A biannual council meeting for representatives of our member organisations was also held.

Christophe Michels, Managing Director of the IBBC was happy with how the weekend went:

“As in previous years the Retreat has attracted some of the finest minds from business, academia, politics, media and diplomacy working on Iraq to conduct truly meaningful and intimate discussions”.

Baroness Emma Nicholson, President of the IBBC and the Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Kazakhstan and Turkmenistan said:

“IBBC has had a fantastically happy and hugely productive busy weekend. We call it a retreat, but I am not sure what it was a retreat from! People were working morning, noon, and night, and they were making great achievements, and huge strides in the various different table meetings…one of the best I can ever remember”.

For more information on the Iraq Britain Business Council, visit our website at https://www.iraqbritainbusiness.org/

(Source: IBBC)

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Nechirvan Barzani in Baghdad to discuss Oil

By Omar Sattar for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

President Nechirvan Barzani of the Kurdistan Regional Government (KRG) left Erbil for the first time since taking office and headed to the Iraqi capital on June 20 to discuss several outstanding issues with the central government, especially KRG oil exports, the public budget and the situation in the disputed city of Kirkuk.

After meeting with Iraqi Prime Minister Adel Abdul Mahdi, Barzani said they agreed to resolve outstanding issues based on the constitution and to convene a joint committee next week to negotiate oil, the budget, the peshmerga forces and Article 140 of the Iraqi Constitution, concerning a census in Kirkuk.

The most important issues addressed during the visit were Kurdish oil and KRG salaries. Baghdad has not yet received its share of KRG oil in about six months, but the federal Ministry of Finance continues to deliver salaries to KRG employees.

Click here to read the full story.

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Profits Up at Wood Group due to Iraq

By John Lee.

Shares in Wood Group closed Wednesday up 6.6 percent after the oilfield services group announced “significant growth” in profits in its pre-close trading update.

The Scottish-based company said it has benefitted from increased activity in the Middle East, particularly Iraq.

(Source: Wood Group)

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Oil Ministry Finalises Export Figures for May

By John Lee.

Iraq’s Ministry of Oil has announced final oil exports for May of 110,737,293 barrels, giving an average for the month of 3.572 million barrels per day (bpd), up from the 3.466 million bpd exported in April.

These exports from the oilfields in central and southern Iraq amounted to 106,675,881 barrels, while exports from Kirkuk amounted to 3,166,261 barrels, and from Qayara 895,151 barrels.

Revenues for the month were $7.330 billion at an average price of $66.190 per barrel.

April export figures can be found here.

(Source: Ministry of Oil)

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TechnipFMC Fined for Iraq Bribes

By John Lee.

Oil services firm TechnipFMC (TFMC) has agreed to pay $296 million to resolve allegations that the company paid bribes in Brazil and Iraq.

TFMC is the product of a 2017 merger between two predecessor companies, Technip S.A. and FMC Technologies, Inc..

The admissions and court documents establish that beginning by at least 2008 and continuing until at least 2013, FMC conspired to violate the US’s Foreign Corrupt Practices Act (FCPA) by paying bribes to at least seven government officials in Iraq, including officials at the Ministry of Oil, the South Oil Company (SOC) and the Missan Oil Company (MOC), through a Monaco-based intermediary company in order to win secure improper business advantages and to influence those foreign officials to obtain and retain business for FMC Technologies in Iraq.

(Source: US Justice Dept)

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Gulf Tensions: Iraq worried about Economy

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

Iraq exports around 3.5 million barrels of oil a day.

Heightened regional tensions between the US and Iran and recent attacks on oil tankers in the Gulf have heightened security fears.

The government of Iraq is worried about the threat to its oil exports – and how its economy could suffer.

Al Jazeera‘s Charles Stratford reports:

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Exxon’s $53bn Iraq deal “in Difficulty”

By John Lee.

ExxonMobil‘s giant oil project in southern Iraq is reportedly on hold.

According to Reuters, a combination of contractual difficulties and security concerns is delaying agreement on the $53-billion Southern Iraq Integrated Project, which includes the construction of a water treatment plant needed to boost oil production. The deal would have seen Exxon get the rights to develope the Nahr Bin Umar and Artawi oilfields.

Last month, Oil Minister Thamer al-Ghadban criticised ExxonMobil‘s decision to temporarily evacuate staff from the West Qurna oil field following an attack in the area.

More here.

(Source: Reuters)

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GKP Shares Gain following Update

Shares in Gulf Keystone Petroleum (GKP) closed Friday up 3.5 percent after the company issued the following operational and corporate update ahead of its AGM:

Operational

  • Workovers on SH-1 and SH-3 have now been completed, resulting in the anticipated material production uplift at both wells.  Production from SH-1 has increased by 105% to 7,800 bopd and SH-3 by 40% to 6,200 bopd.
  • The SH-12 well (formerly called SH-H) was spudded on 7 June with DQE’s Rig 40, signalling the commencement of the Company’s drilling campaign; a major milestone for Gulf Keystone.
  • The next well, forecasted to spud in Q4 2019, will be SH-9 which aims to assess the feasibility of gas reinjection into the Jurassic formation, rather than the originally planned Jurassic production well.
  • The workovers to install Electric Submersible Pumps (“ESP”) will take place in Q4 2019. 
  • As part of the 2019 work-programme, PF-1 was shut down on 10 June for planned maintenance and the installation of equipment required for the 55,000 bopd de-bottlenecking project. The facility is scheduled to be offline for approximately 15-20 days.
  • The installation of the PF-1 export pipeline infrastructure continues. The pipeline is now installed, and export pumps and the associated controls are currently being fitted.  The pipeline is expected to be operational in Q3 2019.
  • Average gross production of 29,993 barrels of oil per day (“bopd”) achieved to date in 2019 with production levels of 38,100 bopd attained prior to the PF-1 shut down.
  • Full year production guidance remains unchanged, although due to changes in the drilling schedule average gross production in 2019 is currently expected to be at the lower end of the 32,000 – 38,000 bopd guidance. 
  • As a result of the revised timeframe, the 55,000 bopd production target is now expected to be achieved in Q2 2020, as opposed to previous guidance of Q1 2020.

Corporate

  • At the request of the Ministry of Natural Resources (“MNR”), GKP and its partner MOL re-submitted a revised Field Development Plan (“FDP”) on 23 May 2019 to address additional MNR requests on gas management. The FDP is currently under review by the MNR.
  • Cash balance of $290 million as at 20 June 2019. The Company remains fully funded for all phases of the Shaikan expansion programme.
  • As part of the Company’s dividend policy, and subject to approval at today’s AGM, a $50 million dividend will be paid, comprising an ordinary annual dividend of $25 million and a special dividend of $25 million, to be paid in 2019.
  • The Company also intends to initiate a share repurchase programme subject to shareholder approval at today’s AGM.

Commenting, Jón Ferrier, CEO, said:

“Operational activity has intensified and good progress is being made across all fronts of our Shaikan expansion programme, including investment into the 75,000 bopd expansion and the gas re-injection project. 

“We are pleased to have started the drilling campaign, in addition to seeing promising results with the workovers drilled at SH-1 and SH-3, both of which have increased in output significantly, and all of which serve to achieve our near term production targets. 

“Furthermore, we look forward to bringing our new export pipeline into service later in the year eliminating the need for trucking and reducing HSSE exposure.“

(Source: GKP)

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Petrel: “Interest is Reviving in Iraq”

By John Lee.

In its preliminary results for 2018, Petrel Resources gave the following update on its activities in Iraq:

We had high hopes of commercial success in Iraq. It has the best oil geology on the planet with drilling success over 90% and a $2 to 4 a barrel production cost. But the political risk offsets all of this.

Petrel first entered Iraq in 1997 and had initial success in obtaining a large exploration block in the Western Desert between Baghdad and Amman Jordan. We were seeking development rights to any one of the many proven but undeveloped oil fields but we needed to establish our credentials. We undertook exploration work but were frustrated by sanctions which stopped us from drilling.

We continued involvement with the Iraqi Oil Ministry and undertook extensive technical work, with Itochu of Japan on the Merjan oil field.

Post 2003 we were awarded a development contract on the Subba and Luhais oil fields. Bureaucratic interference and payment problems forced Petrel to sell out in 2010.

We maintained our interest and appointed an Iraqi Arman Kayablian to work in Iraq. We purchased a 20% stake in Amira Hydrocarbon which had joint operations with Oryx Petroleum, in the Wasit province.  The joint venture failed to obtain a licence. In 2018 the agreement was dissolved and some 20 million Petrel shares returned to the company.

We have recently appointed Riadh Mahmoud Hameed to the Petrel board. Riadh worked as project co-ordinator for six years for Petrel in Iraq.

Activities are normalising in Iraq. There are many oil projects in Iraq which need to be developed. Petrel will be making a case to be part of the development.

Interest is reviving in Iraq. We now have the people to seek out operations on the ground.  

(Source: Petrel Resources)

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Indian Firm Wins $37m Seismic Contract in Iraq

By John Lee.

Indian-based Asian Oilfield Services Limited has announced that it has won orders totalling $37 million in Iraq.

The orders relate to seismic acquisition at Block 12, with $12 million for a 2D survey and $25 million for a 3D survey.

Block 12, located in the Najaf and Muthanna provinces, is being developed by Russia’s Rosneft, and PetroVietnam.

According to a statement issued to the Bombay Stock Exchange, the order is to be executed within FY20 and FY21.

The company has previously carried out 3D surveys at the Shakal block and Taza block in Iraqi Kurdistan.

(Source: Asian Oilfield Services)