Cursor International executes projects and collaboration activities across several industries.
By John Lee.
Iraq has reportedly taken delivery of its first batch of rail tankers from Turkey.
According to Daily Sabah, the first 50 units, manufactured by Cryocan, were sent by truck, with a further 400 units still to be made.
The tankers will be used by Iraq Republic Railways (IRR) to transport oil and fuel.
(Source: Daily Sabah)
(Stock image via Pixabay)
The post Iraq receives First Batch of Turkish Rail Tankers first appeared on Iraq Business News.
The Higher Committee for Health and National Safety held a meeting on Saturday under the chairmanship of Prime Minister Mustafa Al-Kadhimi.
The Committee reviewed the latest Covid-19 related developments and agreed several measures to address the recent rise in the number of cases in Iraq.
The measures include:
The curfew excludes employees of the Ministry of Health, the security forces and government departments providing essential services. It also excludes grocery, fruit and vegetable stores, bakeries and pharmacies which will be allowed to open from 5 AM to 7 PM when the total curfew is in force, media personnel who have a prior authorizsation from the Minister of Health, and individuals who need to travel between Iraqi provinces for urgent humanitarian reasons.
The Committee also decided to:
(Source: Govt of Iraq)
The post Iraq Tightens COVID Restrictions first appeared on Iraq Business News.
From Al Jazeera. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.
Decades of plundering: Where has Iraq’s oil wealth gone?
Ranked as the fourth-biggest oil producer in the world, many would assume that Iraq has the financial resources to weather the pandemic.
But that is not the case – its fragile economy is struggling to cope and it may turn to the International Monetary Fund for assistance.
It has already devalued its currency by almost a fifth, enabling it to eke out more dinars for dollars. Ahmed Tabaqchali, the chief investment officer of AFC Iraq Fund, helps explain where all of Iraq’s money goes:
The post Video: Where has Iraq’s Oil Wealth gone? first appeared on Iraq Business News.
DNO ASA, the Norwegian oil and gas operator, has announced the acquisition of ExxonMobil‘s 32 percent interest in the Baeshiqa license in the Kurdistan region of Iraq, doubling DNO’s operated stake to 64 percent (80 percent paying interest), pending government approval.
The Company plans to continue an exploration and appraisal program on the license while fast tracking early production from existing wells in 2021.
DNO has already demonstrated proof of concept of producing through temporary test facilities, having delivered 15,000 barrels of 40o API oil and 22o API oil for export from the Baeshiqa-2 and Zartik-1 wells, respectively.
In November 2019 DNO issued a notice of discovery on the Baeshiqa license after flowing hydrocarbons from several Jurassic and Triassic zones to surface in the 3,204 meters (2,549 meters TVDSS) Baeshiqa-2 exploration well. Following acid stimulation, the zone flowed variable rates of light oil and sour gas.
Two zones flowed naturally at rates averaging over 3,000 barrels of oil per day (bopd) of light gravity oil each and another averaged over 1,000 bopd also of light gravity oil. Subsequent analyses on surface samples collected during testing confirm that the Triassic reservoirs contain saturated oil with a gas cap.
An exploration well was completed in 2020 on a second structure (Zartik) some 15 kilometers southeast of the Baeshiqa-2 discovery well. The 3,021 meters (2,322 meters TVDSS) well tested hydrocarbons to surface from several Jurassic zones, with the uppermost zone flowing naturally at rates averaging over 2,000 bopd of medium gravity oil.
The Company currently estimates gross license contingent recoverable resources from three of the tested zones in the two wells ranging from 12 million barrels of oil (mmbbls) (1C) to 156 mmbbls (3C), with a 2C volume of 43 mmbbls.
“By increasing our stake in the Baeshiqa license now, we demonstrate our belief in its ultimate potential,” said Bijan Mossavar-Rahmani (pictured), DNO’s Executive Chairman. “Following the stabilization of oil prices and export payments in Kurdistan, DNO is stepping up spending on new opportunities,” he added.
DNO acquired its first 32 percent interest from ExxonMobil and assumed operatorship of the Baeshiqa license in 2018.
The 324 square kilometer license is situated 60 kilometers west of Erbil and 20 kilometers east of Mosul. The license contains two large structures, Baeshiqa and Zartik, which have multiple independent stacked target reservoir systems, including in the Cretaceous, Jurassic and Triassic. The remaining partners in the license include TEC [Turkish Energy Company] with a 20 percent paying (16 percent net) interest and the Kurdistan Regional Government with a 20 percent carried interest.
In addition to the Baeshiqa license, DNO also operates the Tawke license containing the Tawke and Peshkabir fields in Kurdistan. Gross operated production from the Tawke license averaged 110,300 bopd in 2020.
(Source: DNO)
The post DNO Buys Exxon’s Stake in Iraqi Oilfield first appeared on Iraq Business News.
Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, today announced its Preliminary Unaudited Financial Results for the full year ended 31 December 2020.
The Company reported a Net Profit of $36 million (AED 131mm) versus $88 million (AED 322mm) in 2019, excluding one-off non-cash impairments and other income. Including these one-offs, the Company reported a Net Loss of $376 million (AED 1.4bn) versus a Net Profit of $157 million (AED 575mm).
A total of $412 million (AED 1,51bn) of impairments were incurred mostly related to the sale of Dana Gas Egypt onshore assets.
Dana Gas’s continued operations (Kurdistan Region of Iraq) contributed an annual net profit of $32 million reflecting the profitability of the remaining business despite the challenging year caused by the COVID-19 pandemic.
Revenue was $349 million (AED 1.27bn) in 2020 compared to $459 million (AED 1.68bn) in 2019 due to both lower realised prices and lower production in Egypt.
The Company’s robust, long-standing programme to control operating expenses helped to effectively navigate the challenging market environment in 2020. G&A costs were reduced by a further 20% year-on-year.
Dana Gas fully redeemed its outstanding Sukuk on schedule in October 2020. The Company closed the year on a strong financial footing, and maintains a positive financial outlook for 2021.
Dr Patrick Allman-Ward (pictured), CEO of Dana Gas, commented:
“The world experienced unprecedented shocks in 2020 with the COVID pandemic and its impact on the global petroleum markets with prices collapsing to levels not seen for over 20 years. Nevertheless, Dana Gas has shown real resilience both from an operational as well as financial perspective.
“When the pandemic struck, our first priority was the health and safety of our staff. However, we managed to keep our operations on-stream by implementing the most stringent health and safety measures. We not only managed to keep production levels up, but we also carried out a de-bottlenecking project on our Khor Mor plant in July which added a total of 50 MMscf/d of production capacity. In December we consistently obtained record production levels of over 440 MMscf/d. This extraordinary operational performance under the most testing of circumstances is testament to the commitment, dedication and hard work of our staff who have been outstanding in this challenging time.
“Despite the challenges imposed by the global pandemic, we exited the year in a robust financial position with a strong balance sheet, having agreed upon the sale of our Egypt onshore assets, redeeming our outstanding Sukuk and entering into a new credit facility at a lower interest rate.
“In 2021, we aim to advance the development of our world class assets in the KRI, where over 90% of Dana Gas’s proven reserves of over 1 billion boe are located, while concurrently moving ahead with our plans to prepare for the drilling of the next exploration well in Block 6 in Egypt, which holds exciting, material upside potential.“
Operations & Production
Average group production declined 5% during 2020, averaging 63,200 boepd versus 66,200 boepd in 2019. Production was boosted by a 2% jump in output from the KRI, which reached 32,250 boepd. This helped to offset a drop in production from Egypt, which fell 8% to 30,300 boepd versus 33,000 boepd in 2019 as a result of natural field declines.
Fourth quarter 2020 average group production was up 2% to 63,600 boepd. The KRI added 9% to reach 33,250 boepd in fourth quarter production because of the successful completion of the plant bypass project.
The KRI and Egypt operations have continued without interruption and remain fully functioning, un-impacted by the Covid pandemic. The restarting of the expansion plans in the KRI demonstrates that all the parties working on the project are fully committed to executing the expansion project as quickly and as safely as possible. The Pearl consortium remains focused on completing the first 250 MMscf/d gas processing train in Q1 2023 and is also examining ways to bring forward the current schedule.
In 2021 the Company will prepare for the drilling of up to five development wells in the KRI which will begin the following year. It is also moving ahead on the evaluation of the highly prospective Block 6 in Egypt, interpreting the infill seismic data that was acquired in mid-2020 and planning for drilling the next exploration well in 2023.
Sale of Egypt assets
In October 2020 Dana Gas entered into a binding agreement with IPR Wastani Petroleum Ltd, for the sale of its onshore Egyptian producing oil and gas assets for a cash consideration of up to $236 million including contingent payments. The sale is on track for completion in H1 2021. The Company will retain its interests in its exciting offshore exploration concession, North El Arish (Block 6) which contains material gas resource potential in excess of 20 Tcf.
Liquidity and Collections
The Group’s cash balance at year-end stood at $108 million. The Board is considering transferring voluntary reserves into retained earnings to support dividend capacity subject to shareholder approval.
The Group collected a total of $182 million in 2020 (2019: $285mm) with Egypt and KRI contributing $80 million (2019: $138mm) and $102 million (2019: $139mm) respectively.
As of 31 December 2020, the Company’s Egypt receivables stood at $130 million (AED 477mm).
In the KRI, regular payments have been received since March 2020. The KRG maintained its commitment to pay its invoices on time despite facing fiscal challenges throughout the year. Currently, $39 million is outstanding (DG 35% share). The Company has received notification from the KRG on the mechanism for settlement of the outstanding receivables.
(Source: Dana Gas)
The post Dana Gas to Increase Drilling in Iraqi Kurdistan first appeared on Iraq Business News.
DNO ASA, the Norwegian oil and gas operator, today reported interim 2020 revenues of USD 615 million, down a third from a year earlier in the wake of weak oil prices triggered by the pandemic and global economic contraction.
Net production totaled 95,100 barrels of oil equivalent per day (boepd), down nine percent, as the Company cut spending to preserve cash.
For the full year, DNO reported a net loss of USD 286 million driven by the lower revenues and pre-tax asset impairments of USD 276 million, most of which were reported in the third quarter.
With solid cash flow from operations of USD 236 million and North Sea tax refunds of another USD 236 million, DNO exited 2020 with a cash balance of USD 477 million, essentially unchanged from the start of the year, following repayment of USD 161 million in bond debt.
The Company drilled six exploration wells last year leading to three likely commercial discoveries, including Røver Nord and Bergknapp in Norway and Zartik in Kurdistan’s Baeshiqa license. The discoveries will be considered for fast-track development and tie-in to existing offshore or onshore infrastructure.
DNO will drill two potentially high impact exploration wells this year, notably the much anticipated Edinburgh prospect that straddles the Norway-United Kingdom border in which the Company holds a 45 percent stake and the Gomez prospect offshore Norway in which the Company holds an 85 percent stake.
The total 2021 well count, including development wells, will increase to 27 from 17 last year.
Temporary Norwegian petroleum tax incentives are driving other stepped-up investments. The Company is proceeding to concept selection for the operated Brasse field, accelerating infill drilling at Ula, Tambar and Brage fields in 2021 and evaluating the Iris/Hades, Røver Nord, Alve Gjøk, Orion/Syrah and Trym South discoveries for project sanction in 2022.
DNO projects operational spend of USD 700 million this year, up from USD 511 million in 2020.
The Company achieved a net 2P reserve replacement ratio of 64 percent in 2020, notwithstanding limited activity, ending the year with 332 million barrels of oil equivalent (mmboe) of proven and probable reserves, down 13 mmboe from yearend 2019, according to preliminary figures.
More here:
(Source: DNO)
The post DNO announces 2020 Interim Results first appeared on Iraq Business News.
Ministry of Health Kurdistan, UNFPA open COVID-19 isolation unit at Soran maternity hospital
The Ministry of Health of the Kurdistan Regional Government through the Directorate of Health in Erbil, with support from UNFPA opened a COVID-19 isolation unit at the Soran Maternity hospital in Erbil on 3 February 2021.
The isolation unit has the capacity to treat up to six women at once. It was equipped with medical supplies, Personal Protective Equipment, six examination beds and two delivery beds worth US$ 100,000.
The facility that provides daily around-the clock care, is fully equipped by UNFPA and the Soran hospital administration. The staff are also provided with PPEs and medical supplies and have been trained on national guidelines on management of pregnancy and child birth during COVID19.
In addition to the isolation unit at Soran maternity hospital, UNFPA, with funding from the Swedish Government, supported the establishment of isolation units for COVID-19 at maternity hospitals in Zakho, Sulaymaniyah and Halabja.
UNFPA Deputy Representative, Mr. Himyar Abdulmoghni spoke on the occasion and said:
“All childbirths should be safe at all times and no woman should be denied quality reproductive health services under any circumstances, including crises and pandemics. We are working with the Ministry of Health in the Kurdistan Region to ensure quality services to all pregnant women and safe deliveries despite COVID-19.”
Dr Mahabad Dilawar, the Head of Soran Maternity Hospital, thanked UNFPA for the efforts in building the isolation unit saying:
“We are saving time and cost for pregnant women who had to travel long distances to deliver their babies. Through this isolation unit, we serve quality services to pregnant women with COVID-19.”
UNFPA supports the Kurdistan Regional Government to strengthen the health system’s capacity, provide essential supplies, improve access to sexual and reproductive health and gender-based violence services, and promote risk communication and community engagement.
(Source: UN)
The post New COVID-19 Isolation Unit at Soran Hospital first appeared on Iraq Business News.
By John Lee.
The Iraqi Republic Railway Company (IRR) has reportedly announced that it has resumed transportation of oil derivatives from Central Iraq to the South.
Click here to read the full article.
(Source: Daiji World)
The post IRR Resumes Transport of Oil Derivatives by Rail first appeared on Iraq Business News.
WFP and the World Bank partner on socio-economic research in Iraq
The United Nations World Food Programme (WFP) and the World Bank are partnering on gathering key data on the impacts of COVID-19 on households, including people who are displaced, in camps, and those who have returned to their areas, as well as host communities.
The surveys and analysis use WFP’s mobile Vulnerability Analysis and Mapping (mVAM) system; going beyond food insecurity and regularly collecting vital information on labor markets, access to health services and child education, providing up-to-date snapshots of people’s socio-economic status on the ground during the pandemic.
Beside collaborating on the design of the study, the World Bank have contributed financially to sustain the data collection.
“Iraq’s multifaceted crisis has severely impacted the livelihoods of the Iraqi people,” said World Bank Iraq Representative Ramzi Neman. “The continuation of this study will provide a better understanding of the socio-economic impact of the crisis on the living conditions of households and thus better inform social protection programs aimed at bringing immediate relief to the most vulnerable.”
With ongoing economic pressures and the resulting devaluation of the Iraqi currency, prices of some essential food items have risen, and families are further impacted. The research is being used for multiple purposes and provide the government, humanitarian and development communities with information to allow for evidence-based decisions on their pandemic response and support for the most vulnerable families. Additionally, the study supports a sustainable system to help monitor socio-economic changes and household needs.
Once analyzed, the data and findings will also form the basis of key bulletins and reports, such as the ongoing series published by WFP and the World Bank in partnership with the Food and Agriculture Organization of the United Nations (FAO) and the International Fund for Agricultural Development (IFAD).
“WFP thanks the World Bank for its generous contribution towards this important research partnership, which is supporting informed planning and decision-making by key actors in Iraq,” said WFP Iraq Representative Abdirahman Meygag. “Knowing more means being able to do more and do it right. Together our work can help vulnerable families in the most effective way possible.”
WFP and the World Bank both continue to work with the government on social protection efforts as well as the design of major reforms in the sector, to best meet families’ needs now and in the long-term.
(Source: UN)
The post WFP, World Bank partner on Socio-Economic Research in Iraq first appeared on Iraq Business News.
By John Lee.
Iraq’s Cabinet has agreed to supply 500,000 tons of heavy fuel oil annually to Lebanon.
According to a statement from Prime Minister Mustafa Al-Kadhimi, the oil will be paid for in a barter deal, in return for services, medical goods, medicines and consulting services.
(Source: Office of the Iraqi Prime Minister)
The post Iraq Barters Heavy Fuel Oil with Lebanon first appeared on Iraq Business News.