UK’s Proserv Wins Contract at Majnoon Oilfield

By John Lee.

UK-based global controls technology company Proserv Controls has secured a significant contract to manufacture and deliver 22 wellhead control panels (WHCP) to the Basra Oil Company (BOC) for use on the Majnoon Oil Field in southern Iraq.

The deal has been arranged through KBR, the Houston based engineering, procurement and construction management (EPCM) company, which is the EPCM lead on BOC’s plans to significantly ramp up production capabilities at the field.

The 22 WHCPs each has the capability of controlling up to four wells and they have been earmarked for use on 70 new wells which are currently in the development phase. At present, Majnoon has a capacity of just over 200,000 barrels per day (bpd) of production, but BOC’s strategy is to more than double this to above 400,000 bpd in the next two years.

Proserv will deliver the WHCPs in three lots, with the first due towards the end of Q3 2021, with the second scheduled for Q4 and the final tranche set to arrive in March 2022.

The firm will make use of its well-developed footprint in the Arabian Gulf to deliver this order, with the WHCPs being manufactured at Proserv’s dedicated site in Jebel Ali, Dubai.

The value of the contract has not been disclosed.

(Source: Proserv Controls)

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Transporter Named for Iraqi Oil Exports to Jordan

By John Lee.

The Jordanian Ministry of Energy and Mineral Resources has announced that Burj Al Hayat Transport and Trading Company has been awarded a tender to transport Iraqi crude oil to Jordan.

The company will be responsible for transporting 10,000 barrels of crude oil per day from Iraq’s Baiji oil refinery to Jordan’s Petroleum Refinery Company in Zarqa, covering 7 percent of the Kingdom’s daily demand with a discount of $16 from the price of Brent crude per barrel.

The door-to-door shipping process begins in the coming two weeks, with 50 percent of daily imports transported via Iraqi and Jordanian tanker trucks,” according to a statement by the Ministry.

(Source: Govt of Jordan)

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Iraqi Cabinet Approves TotalEnergies’ Projects

By John Lee.

The Iraqi cabinet has approved the agreement between the Ministry of Oil and French company TotalEnergies to implement four major energy projects in the country:

  1. Plants to collect and refine associated natural gas at the fields of Artawi [Ratawi], West Qurna 2, Majnoon, Tuba [Subba] and Lahais [Luhais]. This will include a Central Gas Complex at Artawi;
  2. Development of the Artawi field;
  3. The integrated seawater project [Common Seawater Supply Project (CSSP)?], which the ministry has been trying to implement for more than ten years; and,
  4. A 1,000MW solar energy plant.

The project was originally agreed in March.

(Source: Govt of Iraq)

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Iraq Confirms Oil Exports for June Exceeded $6bn

By John Lee.

Iraq’s Ministry of Oil has announced finalised oil exports for June of 86,765,589 barrels, giving an average for the month of 2.892 million barrels per day (bpd), slightly down from the 2.899 million bpd exported in May.

The exports from the oilfields in central and southern Iraq amounted to approximately 83,690,352 barrels, while exports from Kirkuk amounted to 3,075,237 barrels.

Revenues for the month were $6.143 billion at an average price of $70.801 per barrel.

May’s export figures can be found here.

(Source: Ministry of Oil)

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Germany, IOM Strengthen Humanitarian Response in Iraq

Germany, IOM Strengthen Partnership for Evolving Humanitarian Response in Iraq

During the ISIL conflict, an estimated six million Iraqis were displaced.

Thousands of families have returned to their areas of origin since the end of the crisis, but unstable conditions in Iraq have caused a significant shift in the country’s humanitarian situation.

As country-wide camp consolidation and closure processes move forward, internally displaced persons (IDPs) are reckoning with the complex experiences of premature return and secondary displacement. Returnees residing in hotspots of severe living conditions and IDPs living in strained camps and informal sites are in urgent need of adapted humanitarian assistance.

As a part of its ongoing support for the International Organization for Migration (IOM) in Iraq, the Government of Germany will provide additional multi-year humanitarian funding that will better position IOM to adapt and rapidly implement its intervention strategy to address the evolving needs of the affected populations while remaining flexible to respond to sudden onset crises.

The latest grant from the German Federal Foreign Office (FFO) supplements an ongoing IOM Iraq project launched in March 2020. In addition to enhancing visibility, this multi-year humanitarian funding allows for longer-term planning and programme continuity. This is crucial, as remaining populations facing protracted displacement are in need of sustained assistance until solutions to their displacement are found.

“This funding from the German Federal Foreign Office is not only generous, it is flexible and will extend over the years to come,” said IOM Iraq Chief of Mission Gerard Waite. “This will enhance IOM’s capacity to pursue a holistic and sustained response to displacement that corresponds to the scope of urgent need in Iraq.”

The funding will be used to implement a broad range of humanitarian activities, from camp management in formal and informal sites to specialized, community-based protection and mental health and psychosocial support services both in- and out-of-camp. For those living in sub-standard or damaged shelters, funding will provide immediate relief solutions for improved safety, protection and living conditions. Interventions will also provide non-food item assistance and support primary health care centres to ensure accessibility and quality of essential services.

“Germany remains committed to the needs of internally displaced persons in Iraq. The broad range of individual IDP situations requires tailor-made solutions. We want to give partner organisations as much flexibility as possible so they can adapt to changing situations on the ground and live up to their ambition to deliver humanitarian assistance in accordance with priority needs,” said ChargĂ© d’affaires Peter Felten (pictured) of the German Embassy in Iraq. “We are very happy to continue our partnership with IOM in this regard.”

Continuing support from the Government of Germany enables IOM Iraq to respond to pressing humanitarian needs while also working to determine root causes of and durable solutions to displacement, thereby facilitating the safe relocation or return and reintegration of IDPs into their communities.

(Source: UN)

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China Buys “nearly Half” of Iraq’s oil

By John Lee.

An advisor to Iraqi Prime Minister Mustafa al-Kadhimi has said that nearly half of the country’s oil exports go to China, making China the number one market for Iraqi oil.

Speaking on Thursday, Mazhar Muhammad Salih said that China accounts for about 40-44 percent of Iraqi oil exports, equating to about 800,000 barrels of oil per day.

(Source: INA)

(Pictured: Former Prime Minister Adil Abdul Mahdi with China’s Premier Xi Jinping, in September 2019)

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Dana Gas Expansion Plans “Well Underway” in Kurdistan

By John Lee.

Dana Gas PJSC announced that its H1 2021 collections from the Kurdistan Region of Iraq (KRI), and Egypt have increased 106% year-on-year to $185 million (AED 678m), the highest level in more than five years.

Dana Gas, which owns a 35% stake in Pearl Petroleum, saw its share of collections from sales of condensate, LPG and gas in the KRI jump 85% to $87 million in the first half 2021 as compared to $47 million in the same period the previous year.

The Company received cash dividends of $48.3 million from Pearl Petroleum over this period. For the same period, the Dana Gas share of Pearl Revenue was $87 million, EBITDA $74 million, Net Income $57.4 million, Cash Balances $61 million and Gross Debt $93 million.

The Company share of total KM 250 expansion CAPEX is $220 million, which will be funded at the Pearl level. Dana Gas share of Pearl Petroleum production for the first half 2021 averaged 150 MMscf/d of gas, 5,250 bbls/d condensate and 350 MT/d of LPG.

In Egypt, Dana Gas collected $98 million during H1 2021, compared to $43 million received in the same period of 2020, representing a 128% increase.

Dr Patrick Allman-Ward, CEO of Dana Gas, said:

This is one of our best collection periods in the past several years, driven and supported by the strong rebound in oil prices. The respective governments of both the KRI and Egypt are meeting their payment obligations, ensuring the petroleum industry investors are receiving their current monies on time and catching up on overdue payments.

“This provides us with the confidence to reinvest in our operations, notably in the KRI where our expansion plans are well underway. We are in the process of constructing our new KM250 gas train which is on track for first gas in Q2 2023. In Egypt, we continue to work diligently to maintain production and to prepare for drilling our exciting exploration well in our offshore Block 6 Concession Area which holds material potential of over 20 Tcf of gas resources.

(Source: Dana Gas)

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Iraq’s Kurdistan Region detects first case of Delta Variant

By Al Monitor staff. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Iraq’s Kurdistan Region detects first case of Delta Variant

Several Middle Eastern governments have instituted measures aimed at mitigating the spread of COVID-19 variants recently.

Click here to read the full article.

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