Chinese Company to Develop Iraq’s Mansuriyah Gas Field

By John Lee.

The Chinese company Sinopec (China Petroleum & Chemical Corporation) has won a contract to develop the Mansuriyah gas field in Diyala.

The field, near the Iranian border, is expected to produce 300 million standard cubic feet (Mmscf) per day of gas, which will be used for electricity generation.

In 2010, an agreement had been signed for the field to be developed by Turkish Petroleum (TPAO) (37.5%), Iraqi Oil Exploration Company (25%), Kuwait Energy (KEC) (22.5%), and Kogas (15%). This consortium stopped development in 2014 due to security concerns, and the agreement was reportedly cancelled in 2020.

Under the new 25-year deal agreed on Tuesday, Sinopec will have a 49-percent interest in the field, with Iraq’s state-owned Midland [Middle, Central] Oil Company having 51 percent.

The contract may be extended for an additional five years.

According to the Ministry of Oil, Sinopec’s bid was he lowest submitted.

(Source: Ministry of Oil)

The post Chinese Company to Develop Iraq’s Mansuriyah Gas Field first appeared on Iraq Business News.

Russia Considers Major Investment in Iraqi Gas Field

From Middle East Monitor, under a Creative Commons licence. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

The Russian Ambassador to Iraq, Maxim Maksimov [Maximov] (pictured), said that Russia is seeking to invest heavily in Al-Mansouriya gas field, in the Diyala governorate.

Maksimov said in a press statement yesterday that “Russian companies are willing to mobilise significant funds and have submitted an investment tender for Al-Mansouriya gas field in Diyala.

 He added that “three Russian companies in Iraq produce about 600,000 barrels of oil per day, including Gazprom, which operates in the Badra oil field in Wasit Governorate with a production capacity of 100,000 barrels of oil per day, in addition to 400,000 barrels in the [West Qurna 2] field.

The Russian ambassador stated that his country is paying special attention to the Russian-Iraqi Commission.

Moscow has assigned its deputy prime minister to head the Russian delegation, in preparation for a very important meeting between the two sides, which was postponed due to the coronavirus crisis.

Iraq Approves Fifth Round of Gas Contracts

By John Lee.

Iraq has reportedly approved contracts in a fifth bidding round for gas exploration contracts.

According to Reuters, the exploration deals relate to the development of fields in the eastern governate of Diyala that are expected to produce more than 750 million cubic feet of natural gas within 3 years.

The contracts have been criticised by IBN Expert Blogger Ahmed Mousa Jiyad – https://www.iraq-businessnews.com/2018/05/16/5th-round-oil-licences-poor-management-dubious-contracts-bad-results/

(Source: Reuters)

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)

WHO delivers Medical Supplies to Diyala

World Health Organization (WHO) Iraq delivers four trucks loaded with kits and medical supplies to Diyala

Responding to the need of the Directorate of Health in Diyala, WHO with the support of the generous donors, has arranged for a large consignment of medical kits and medical supplies to support the Directorate.

A shipment of four 40-feet trucks of kits and medical supplies was transported on 14 January 2019 to support returnees’ districts in Diyala governorate, 84 kilometers east of Baghdad.

As Diyala is one of the crisis affected governorate and in line with the objectives of Humanitarian Response Plan, WHO, in coordination with Diyala health directorate, developed an action plan to support the returnees and the IDPs families in the governorate during 2019.

“This shipment is the first of its kind that was delivered to Diyala and an important step of WHO’s intervention in the governorate as part of 2019 plan,” Said Dr. Adham Ismail, Acting Representative of WHO Iraq. Dr. Ali Hussain al-Temimi, Director General of Diyala DoH pointed out that the shipment would save the lives of population in the governorate and can be used by mobile clinics offering health care and services to IDPs.

“It came in difficult time as the country suffers of lack of resources to provide the necessary and lifesaving medications, medical equipment and supplies”, Said Dr. al-Temimi.

“We are happy and highly appreciate WHO’s support to our directorate. His Excellency the Governor of Diyala instructed to send a letter of appreciation to WHO and its staff in Iraq for the valuable assistance they rendered. He also urged WHO to continue its work according to the agreed upon plan to provide medicine, construct a health center in far rural area, train staff on statistical programs, create a software to connect health centers with DoH and MoH, support exceptional campaigns for immunization, provide insecticides and pesticides for vector control in liberated areas and provide assistance to the 3 IDPs camps in Diyala”, added Dr. al-Temimi.

“The support by WHO and partner agencies came as a lifeline for the governorate.” said Mr. Wisam Mohammed Ahmed, Head of Pharmacy Department at the Directorate of Health in Diyala. “It will help the medical staff in hospitals and medical centers to work more efficiently and offer better care to patients.” Mr. Ahmed added.

The consignment included supplementary module pharmaceutical kits, supplementary module equipment, supplementary module renewable kits, traumatological profile/emergency kits, medical supplies support kits, basic units’ w/o malaria, ringer lactate and sodium chloride.

The support to the Directorate of Health in Diyala was made possible through generous contributions from donors and health partners especially The Office of U.S. Foreign Disaster Assistance – USAID-OFDA and the European Civil Protection and Humanitarian Aid Operations – ECHO.

(Source: WHO)

Iraq Plans to take over Mansuriyah Gas Field

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) as ordered Iraq’s state-owned oil companies to devise an urgent plan to develop the Mansuriyah (Mansouriya) gas field, following what he described as the delay and the failure of foreign companies to start developing the field.

The field, in Diyala province, was awarded in the third licensing round in 2010 to a consortium of international oil companies consisting of: Turkey’s TPAO (37.5%), Iraq’s Oil Exploration Company (25%), Kuwait Energy (KEC) (22.5%), and the Korean Gas Corporation (Kogas) (15%).

It holds around 127 billion cubic metres of gas. They committed to produce 320 million standard cubic feet of gas a day for $7 per barrel of oil equivalent produced, the maximum the government would agree to pay.

(Source: Ministry of Oil)

Crescent signs Initial Contracts to Develop 3 Blocks

By John Lee.

UAE-based Crescent Petroleum has signed the initial contracts to develop the oil fields of Gilabat-Qumar (in Diyala), Khashim Ahmer-Injana (in Diyala), and Khudher Al-Mai [Khider al-Mai] (in Basra and Muthana).

Mr. Abd Allah Al-Kadhi, the head of exploration and production in the company, said that production will start after three years.

The contracts will now be sent to the Cabinet to be ratified for final signature.

(Source: Ministry of Oil)

Iraq Awards New Oilfield Licences: FULL LIST

By John Lee.

Iraq’s Ministy of Oil has awarded all four development projects, and two of the seven exploration blocks, that it offered in its fifth auction of oil licences.

Only nine of the 26 companies originally pre-qualified took part in the auction, with majors such as Lukoil (Russia), ExxonMobil (US) and Total (France) not bidding.

Development blocks:

  • Gilabat-Qumar, in Diyala: Crescent Petroleum (UAE)
  • Khashim Ahmer-Injana, in Diyala: Crescent Petroleum (UAE)
  • Huwaiza, in Missan (Maysan): Geo Jade Petroleum (China)
  • Khudher Al-Mai [Khider al-Mai], in Basra and Muthana: Crescent Petroleum (UAE)

Exploration blocks:

  • Naft Khana, in Diyala: Geo-Jade Petroleum (China)
  • Sindibad [Sindbad] field in Basra: United Energy Group (Hong Kong)
  • Zurbatiya [Zurbatia], in Wasit and Diyala: not awarded
  • Shihabi in Missan and Wasit: not awarded
  • Fao, in Basra: not awarded
  • Jebel Sanam [Jabal Sanam], in Basra: not awarded
  • Offshore Gulf block: not awarded

Abdul Mahdi al-Ameedi, director general of the Petroleum Contracts and Licensing Directorate (PCLD), told Reuters that the failure of five blocks to attract bids was due to a combination of factors, including the fact that some of them cover former battlefields, some are hard to access, and the one offshore plot needs more data.

He said another round could be held for those five blocks.

More details here from Iraq Oil Report (subscription required)

(Sources: Iraq Oil Report, Reuters, Associated Press, AFP)