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Sicuro Group to partner Benaa Al Basra for Oil Ops Centre

Benaa Al Basra has been endorsed by the Iraqi Prime Minister’s office to make Basra’s Oil Operations Centre (OOC) operational.

The OOC has appointed Sicuro Group, a CMC-licenced, Iraq-experienced tracking, communications and information provider as the exclusive operating partner.

According to a press release from Sicuro, “this new partnership will ensure the required expertise and resources are applied to the centre in order to deliver timely information, civil and military authority liaison and coordination, incident management and emergency response to all international oil companies operating in Southern Iraq“.

The OOC will be operational from mid-August, delivering enhancements to the Basra Operations Command.

(Source: Sicuro)

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Baker Hughes wins Iraq Flare Gas Contract

Baker Hughes, a GE company has been awarded a contract by the South Gas Company of Iraq (SGC) for fast-track solutions to help the recovery of flare gas for Nassiriya and Al Gharraf  [Garraf] oilfields. The importance of the project was highlighted by the attendance of several high-level officials, including HE Jabbar Al-Luaib, the Minister of Oil of Iraq, at the agreement-signing ceremony.

As per the agreement, BHGE will develop solutions for flare gas recovery at Nassiriya and Al Gharraf oilfields using advanced modular gas processing (NGL) technology developed in the United States and Italy. The project will utilize the modular skid-mounted Gas Processing technology to build 200 million standard cubic feet per day (MMSCFD) NGL plant and is expected to be completed by 2021.

The project will support the development of a fully integrated natural gas liquid (NGL) plant at Nasiriya that will recover 200 MMSCFD of dry gas, liquefied petroleum gas (LPG) and condensate.

The modular solution will support power plants with dry gas for efficient power generation, thus helping meet the growing demand for electricity using clean fuel. It will also contribute to curtailing the amount of gas flared in the fields of Nassiriya and Gharraf that otherwise goes to waste.

The advanced technology used to develop the plant will help produce more than 1,000 tons of LPG per day and recover more than 900 cubic meters per day of condensates, which will help to meet the domestic demand for cooking gas.

The surplus LPG and condensate will be exported, generating high revenue to the Iraqi government.  Contributing to the social and economic development of Nassiriya, the project is aligned with the vision of the Ministry of Oil and the government.

H.E. Jabbar Ali Al-Allaibi, Iraq’s Minister of Oil said, that this project is important achievement for the Ministry and marks the entry of a new phase for the sector, highlighted by time optimal utilization of flare gas, which is a major milestone in the government’s extensive efforts to drive a better future for Iraq.

H.E. also highlighted the prominence of this project for the province of Dhi Qar specifically and for Iraq in general adding that BHGE will provide it latest and advanced technologies and solutions to optimize the use of flare gas at the Nassiriya and Al Gharaf oilfields recovering 200 MMSCFD of dry gas daily.

Rami Qasem, President, MENAT & India, BHGE, said:

“As a local trusted partner to Iraq, BHGE is bringing advanced technologies and solutions that can help meet the Ministry’s goals for the industry. This contract is a testament to our continued commitment to supporting the Ministry of Oil’s strategic goals by deploying advanced flare gas solutions to build the country’s oil and gas infrastructure. The project will create more than 500 direct and indirect jobs for Iraqis, build local capabilities and strengthen the local supply chain.”

BHGE is the first and only company in the world to provide a fullstream offering covering products, services and digital solutions for the oil and gas sector, from upstream, to midstream to downstream.

BHGE has been a committed partner to Iraq for more than 50 years, with three offices in Iraq – Baghdad, Erbil and the Basra –  and more than 350 employees in country, BHGE continues to deliver its latest technology and expertise to its local customers.

(Source: Baker Hughes)

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Oil Exports Rise in July

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for July of 109,847,268 barrels, giving an average for the month of 3.543 million barrels per day (bpd), an increase from the 3.521 bpd exported in June.

These exports were entirely from the southern terminals, with no exports registered from Kirkuk via Ceyhan.

Revenues for the month were  $7.597 billion at an average price of $69.163 per barrel.

June export figures can be found here.

(Source: Ministry of Oil)

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Deloitte Report on Oil and Gas in Kurdistan

Pursuant to the Kurdistan Regional Government Council of Ministers resolution No.73 (3 February 2016) establishing an independent review of the oil and gas industry, today new verified data on oil exports, consumption and revenues have been published covering the period from 1 July 2017 to 31 December 2017. This is a continuation from the first public report of the first half of 2017 published in January 2018.

The new, verified data and information pertaining to the Kurdistan region’s oil exports, consumption, and financial flows of the last six months of 2017 have been independently reviewed by the international “Big 4” audit and consulting firm, Deloitte.

The Regional Council for Oil and Gas Affairs underscores its commitment to transparency in the sector, as it firmly believes it is the right of the people of Kurdistan to be informed of accurate and independently verified production and revenue information. This independent review is only one part of the government’s transparency program.

The report similarly demonstrates the Kurdistan Regional Government’s commitment to its stakeholders in the oil and gas industry. In response to feedback received from stakeholders on Deloitte’s first review, the new report presents additional disclosures. This includes a breakdown of third-party payments; disaggregate monthly price realised during the period; and the recent arbitration settlement.

The Regional Council for Oil and Gas Affairs reiterates its commitment to the people of Kurdistan and stakeholders in the sector that the two international audit firms, Deloitte and Ernst & Young, will continue to independently review the oil and gas sector, inclusive of all the streams. To that end, we are anticipating the data for 1 January 2018 to 31 March 2018 to be publically available in August 2018.

  1. Deloitte’s report for the last six months of 2017 is accessible through this link(PDF), in Kurdish, Arabic and English.
  2. Frequently asked questions handbook (PDF) in Kurdish, Arabic and English to help readers better understand different sections of the report.

(Source: KRG)

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Iraq Invests to Boost Nasiriyah Oil Field

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has ordered the state-run Dhi Qar Oil Company (DQOC) and Iraq Drilling Company (IDC) to develop the Nasiriyah oil field in Dhi Qar province.

He said the Ministry has budgeted $140 million to raise production from the current 90,000 barrels per day (bpd) to 200,000 bpd within a year.

The field has estimated reserves of 4.4 billion barrels of oil.

It was originally offered as part of a larger project, known as the Nasiriyah Integrated Project (NIP), which would include the contruction of a 300,000 bpd refinery.

In January 2018, Iraq dropped the NIP, saying it will rely on a newly formed state oil company to develop the Nassiriya oil field, and leaving only the nearby refinery project for investors.

(Source: Ministry of Oil)

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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)

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Rosneft to start work in Duhok

By John Lee.

Rosneft has reportedly sent a delegation to Duhok to discuss starting work on three oilfields next month.

According to the report from Rudaw, the state-controlled Russian company will work at three locations: Batle, Zawita, and in Sarsang and Chamanke in Amedi.

It is expected to extract 180,000 barrels of oil per day.

In October, Rosneft signed Production Sharing Agreements (PSA) with respect to five production blocks in Iraqi Kurdistan.

More here.

(Source: Rudaw)

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KRG Acts against Illegal Refineries

KRG Prime Minister Nechirvan Barzani chaired on Wednesday a meeting of the KRG Oil and Gas Council.

It was also attended by Deputy Prime Minister Qubad Talabani, relevant ministers, governors, supervisors of local administrations, and representatives of the Integrity Commission, Board of Supreme Audit, the Attorney General’s Office, and Security (Assayish).

The Ministry of Natural Resources presented a report on the number and locations of illegal refineries with dates of operation. Because these refineries are a serious threat to citizen health and the environment it was agreed to accelerate control of the situation.

Prominent examples in both Erbil and Suleimaniya Governorates were presented in which refinery residues severely damaged water resources, agricultural production, and adversely affected citizen health.

It was decided the Ministry of Natural Resources in cooperation with the Ministry of Interior and the heads of administrative units would soon work in accordance with law to resolve this issue. The government would take necessary procedures to protect the environment and health of citizens, and later present results of legal proceedings to the public.

Prime Minister Barzani and Deputy Prime Minister Talabani stressed the need for especially the executive administrative units such as the Ministry of Interior, the Security Council, and the police to cooperate with governors to address this issue within the framework of the legal mechanism that was put forward during the meeting.  Also, the Attorney General has been mandated to cooperate on legalities.

They stressed that protection of the environment and preservation of citizens’ lives are priorities that supersede economic issues – a distinction must be made between the lives of citizens, the environment, and the provision of fuel.

(Source: KRG)

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Video: Why Oil-Rich Iraq Needed Kuwait Energy Deal

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

Many ask why oil-rich Iraq needed to make Kuwait energy deal

Iraq’s government has signed a deal with Kuwait in a bid to alleviate its energy crisis after the lack of kerosene and electricity led to widespread unrest.

But many are asking why Iraq, which holds the world’s fifth-largest petroleum reserves, needs help from Kuwait.

Al Jazeera‘s Imran Khan reports from Baghdad: