Category: Oil News

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DNO to spend $250m in Kurdistan this year

DNO ASA, the Norwegian oil and gas operator, today reported USD 35 million in first quarter 2019 operating revenues from its newly acquired North Sea assets, bringing the total quarterly figure across the portfolio to USD 204 million.

The Company generated a net profit of USD 51 million and exited the quarter with a cash balance of USD 254 million plus USD 109 million in treasury shares and marketable securities.

Company Working Interest (CWI) production averaged 107,600 barrels of oil equivalent per day (boepd) during the first quarter, up 36 percent from 79,100 boepd in the first quarter of 2018. Kurdistan contributed 89,400 barrels of oil per day (bopd) and the North Sea contributed 18,200 boepd.

Operated Kurdistan production from the Tawke and Peshkabir fields averaged 126,800 bopd during the quarter, up from 109,400 in the first quarter of 2018.

The Company plans to more than double capital and exploration expenditures to USD 440 million this year, up from USD 200 million last year. Planned 2019 expenditure in Kurdistan is USD 250 million and USD 190 million in the North Sea.

DNO has launched an active drilling program of up to 36 wells across the portfolio, representing the highest number of wells in the Company’s 48-year history.

DNO’s Executive Chairman, Bijan Mossavar-Rahmani (pictured), said:

“With our recent acquisition, DNO has transformed into a more balanced company. We continue to generate significant cash from ultra-low cost, short-cycle, highly prolific fields in Kurdistan but now with a strong, second leg in the North Sea.”

(Source: DNO)

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Pearl Petroleum to Raise Funding for Kurdistan Investment

By John Lee.

Pearl Petroleum is reportedly planning to raise additional funding for its drilling and development in Iraqi Kurdistan,

According to Reuters, Patrick Allman-Ward, the chief executive of Dana Gas, which is the majority owner of Pearl Petroleum, told reporters that the funding will “comprise a mix of bank debt, a bond, Exim bank financing as well as contractor and vendor financing.”

The company is developing that Khor Mor and Chemchemal gas fields in Iraqi Kurdistan.

(Source: Reuters)

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Iran Oil Co to Open Office in Iraq

The National Iranian Oil Company (NIOC) will set up a representative office in Iraq to facilitate activities by Iranian producers and constructors in the neighboring state.

The issue was discussed in a meeting between Iranian oil industry equipment producers and senior managers of the Iraqi Ministry of Oil on the sidelines of the 24th Iran Oil Show in the Iranian capital of Tehran on Friday (May 3).

The meeting was attended by Iraqi Deputy Oil Minister Mahmoud Abdul Amir Hashim, the NIOC director for support, construction and goods supply, Ramin Qalambor Dezfouli, and a number of oil equipment producers.

Speaking in the meeting, Qalambor Dezfouli said the gathering was aimed at providing Iranian constructors and producers with the opportunity to establish a closer connection with their Iraqi counterparts.

“We have been seeking to achieve this goal for about three years as Iranian producers and constructors are acting independently in Iraq. Currently, we aim to establish an NIOC representative office in Iraq to represent the Iranian Ministry of Petroleum in the country.”

He added, “We are seeking to work out solutions to enable Iranian producers and constructors to cooperate with Iraq’s private sector.”

Qalambor Dezfouli said the office will be responsible for connecting Iranian oil industry’s constructors and producers with the Iraqi Ministry of Oil.

“Given that Iranian constructors do not have international certificates and licenses, we are cooperating with the Iraqi Ministry of Oil to set up a mechanism through which those Iranian companies that are approved by the NIOC, receive approval from the Iraqi Ministry of Oil and, thus, be able to participate in the implementation of oil projects in the neighboring state.”

The 24th Iran International Oil, Gas and Petrochemical Exhibition (Iran Oil Show 2019) began on Wednesday (May 1) and will continue until May 4 (Saturday).

(Source: Shana)

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Iraq earns $7bn in Oil Revenues in April

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for April of 103,988,853 barrels, giving an average for the month of 3.466 million barrels per day (bpd), up from the 3.377 million bpd exported in March.

These exports from the oilfields in central and southern Iraq amounted to 100,635,009 barrels, while exports from Kirkuk amounted to 2,570,000 barrels, and from Qayara 783,844 barrels.

Revenues for the month were $7.011 billion at an average price of $67.419 per barrel.

March export figures can be found here.

(Source: Ministry of Oil)

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Genel Pauses Bina Bawi Plans; Numis Upgrades

By John Lee.

Genel Energy has announced that it “will only proceed with significant investment in Bina Bawi once an agreement is reached on a commercial framework that provides a clear route to monetisation.”

In a statement, the company said:

“As previously announced, the deadline to meet the conditions precedent relating to the Bina Bawi gas lifting agreement (‘GLA’) was extended until 30 April 2019, as discussions with the Kurdistan Regional Government (‘KRG’) on the commercial framework relating to the development of the licence continued.

“Having reached agreement that the existing GLA does not reflect the commercial realities of the proposed development, Genel and the KRG (‘the Parties’) have jointly agreed to let the GLA lapse on 30 April 2019 and focus on negotiating updated commercial terms based on a staged and integrated oil and gas development. The Parties are progressing the negotiation of a project scope based on a phased approach and ramp up of the gas development, with an initial phase of c.250 MMscfd raw gas capacity, and an accelerated development of the oil scope, where the KRG and Genel will jointly fund the first phase gas development utilising the revenue from Bina Bawi oil.

“The Parties have agreed to focus on finalising the commercial arrangement for this solution as soon as practical. The current production sharing contract (‘PSC’) provides a further 12 month period from 30 April 2019 within which to agree a new GLA. Should no agreement be reached in twelve months, the KRG has a right to terminate the PSC.

“In line with our capital allocation strategy, the Company will only proceed with significant investment in Bina Bawi once an agreement is reached on a commercial framework that provides a clear route to monetisation.

“The deadline for the Miran conditions precedent will be reached on 31 May 2019 and the Company similarly expects that the Miran GLA will lapse.“

Meanwhile, analysts at Numis Securities have reportedly upgraded the shares to a “buy” rating.

(Sources: Genel Energy, thisismoney.co.uk)

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Oil Ministry Finalises Export Figures for March

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for March of 104,696,872 barrels, giving an average for the month of 3.377 million barrels per day (bpd), down from the 3.621 bpd exported in February.

These exports from the oilfields in central and southern Iraq amounted to 100,909,946 barrels, while exports from Kirkuk amounted to 3,063,972 barrels, and from Qayara 722,954 barrels.

Revenues for the month were $6.709 billion at an average price of $64.082 per barrel.

February export figures can be found here.

(Source: Ministry of Oil)

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Petrofac Contract to deliver Training Solutions Renewed

By John Lee.

Petrofac has announced that it has secured new awards and contract extensions, with a combined value of over US$30 million, to provide training solutions for key National Oil Company and International Oil Company clients in Oman, the UAE and Iraq.

In Iraq, where Petrofac has delivered more than 50,000 in-country delegate training days since 2010, a contract has been renewed to deliver training solutions.

(Source: Petrofac)

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West Qurna-2 hits 400,000 bpd

Cumulative production at the West Qurna-2 field has reached 100 million tons of oil as part of successful implementation of Phase 1 of the project.

With 184 wells drilled at the field, the average daily production rate is 400,000 barrels.

Operator Lukoil said in a statement that, to manage the field’s production, it uses “the intelligent field concept which allows to control and adjust where necessary the production indicators in real-time.”

In 2018, the company started Phase 2 of the field’s development which envisages  growth in daily production to 480,000 barrels in 2020 and to a plateau of 800,000 barrels per day in 2025.

In January 2019, the drilling of 28 wells began on well pad #4. As of today, contracts have been signed to drill 57 production wells, including 54 at the Mishrif and 3 at the Yamama formations.

(Source: Lukoil)

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Zhongman starts Drilling in Diyala Province

By John Lee.

China’s Zhongman Petroleum and Natural Gas Group Corp., Ltd. (ZPEC) has reportedly started drilling its first oil well in Iraq’s eastern province of Diyala on Tuesday.

The mayor of Qazaniya told Xinhua that it is more than fifty years since an oil well was drilled in Diyala province.

Mazin al-Khuzaie added that the oil companies operating in Block 8 will contribute $4 million to a program to finance service projects in Qazaniya.

(Source: Xinhua)

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Sonangol Ramping Up Oil Production in Iraq

By John Lee.

Sonangol has said it plans to increase production at its Najmah and Qayara oilfields to about 230,000 barrels per day (bpd).

The Angolan state oil company owns 75 percent of the oilfields, south of the city of Mosul, with estimated oil reserves of more than 1 billion barrels.

Output at Qayara is currently 40,000 bpd.

(Source: Reuters)