Oryx Petroleum Changes Name, Plans $51m Capex

By John Lee.

Oryx Petroleum Corporation has announced that it has changed its name to Forza Petroleum Limited.

2021 Budgeted Capital Expenditures

Budgeted capital expenditures for 2021 are $51 million and dedicated exclusively to the Hawler license area.

The planned work program involves drilling five new wells into proven, producing reservoirs and reservoirs still being appraised in the Demir Dagh, Zey Gawra and Banan fields, completing a previously drilled well in the Ain al Safra field for further evaluation, and installing a gathering system to eliminate trucking in the western part of the Hawler license area to reduce environmental impact and operating expense.

Completion of the full budgeted program is dependent on available funding from one or a combination of increased revenue from oil sales resulting from higher than forecast Brent crude oil prices or production, settlement of past due receivables by the Ministry of Natural Resources of the Kurdistan Region of Iraq in respect of oil sales made between November 2019 and February 2020, and additional funding from third parties.

The Corporation is in discussions with its controlling shareholder regarding financing arrangements to fund budgeted capital expenditure to the extent internal capital is not available.

Operations Update

  • Average gross (100%) oil production of 11,100 bbl/d (participating interest 7,200 bbl/d) for November 2020
  • During November, leased artificial lift equipment used to produce the Banan-4 and Banan-3 wells was demobilized and replaced by a purchased pump in the Banan-4 well, reducing future operating expenditure related to producing the Banan field
  • The previously announced new well targeting the Tertiary reservoir in the Zey Gawra field is not expected to spud before January 2021 as the drilling rig intended for the project continues to be in use by another operator in the region and has not yet been released

CEO’s Comment

Commenting today, Forza Petroleum’s Chief Executive Officer, Vance Querio (pictured), stated:

“We are very encouraged by the rebounding crude oil market and plan to maintain an active program of drilling during 2021 to continue the progressive development of the Hawler license area in the Kurdistan Region of Iraq. We intend to increase our offtake rates from some of our proven, producing reservoirs and to continue evaluating the potential of other accumulations in the area that have not previously been produced.

“During a difficult year related to the global pandemic and other headwinds across the oil and gas industry, we have remained committed to maintaining safe operations and decreasing operating costs where possible. The installation of a gathering system to serve the western flank of the Hawler license area will support both of these objectives by dramatically reducing the potential of environmental impact and the relatively high cost of tanker transport operations in the area.

We look forward to an improving operating environment in 2021 and to continuing our successful efforts to develop the resources of the Hawler area for the benefit of Forza Petroleum, the Kurdistan Regional Government, the employees of OP Hawler Kurdistan Limited and the citizens of the communities in which we operate.”

(Source: Oryx)

The post Oryx Petroleum Changes Name, Plans m Capex first appeared on Iraq Business News.

Gazprom Neft developing Fourth Well at Sarqala

By John Lee.

Russia’s Gazprom Neft has produced its four-millionth tonne (32-millionth barrel) of oil since starting commercial development of the Sarqala field in the Kurdistan Region of Iraq (KRI).

Three wells are now in operation at this field, with daily production running at about 3,100 tonnes (24,000 barrels) per day.

Limitations arising under the COVID-19 pandemic notwithstanding, Gazprom Neft Middle East B.V. is continuing to develop this field and is implementing a number of key production projects, including drilling a fourth well, the commissioning of which will increase production to 4,100 (around 32,000 barrels) per day. The commissioning of this well is scheduled for the first half of 2021.

Gazprom Neft Middle East B.V. is involved in this project with the Government of the KRI as part of the latter’s development of the region’s energy supply system. Associated petroleum gas (APG) produced at the Sarqala field will be used as fuel for energy facilities currently under development by government authorities.

This programme envisages the construction of a 4.5-kilometre gas pipeline to connect the field to power generation facilities. Implementing this project will not only increase APG utilisation at the field, but will also facilitate energy supplies to several districts within the KRI.

(Source: Gazprom Neft)

The post Gazprom Neft developing Fourth Well at Sarqala first appeared on Iraq Business News.

Saudi-Iraqi Business Forum Launched; New Projects Announced

By John Lee.

Prime Minister Mustafa Al-Kadhimi received a delegation of Saudi officials and business people in Baghdad on Monday.

Among the visitors was the Saudi Minister of Commerce, Acting Minister of Media, and Chairman of the Saudi-Iraqi Coordination Council, Dr. Majid bin Abdullah Al-Qasabi.

The delegation included businessmen representing 22 Saudi companies.

During the meeting, they discussed issues of common interest between the two countries, and ways to support and enhance them in all fields.

The two sides also signed an agreement to establish a metal silo to store wheat in Al-Diwaniya province, and a hospital in Al-Saqlawiya, Anbar province.

(Source: SPA)

The post Saudi-Iraqi Business Forum Launched; New Projects Announced first appeared on Iraq Business News.

Total “in Talks” to Sell Stake in Iraqi Oil Field

By John Lee.

France’s Total is reported to be in talks to sell its 18-percent stake in the Sarsang block in Iraqi Kurdistan, in a move aimed at reducing the company’s debt.

Bloomberg says the company is working with Jefferies Financial Group on the deal, adding that the holding could be worth as much as $500 million.

More here and here.

(Source: Bloomberg)

The post Total “in Talks” to Sell Stake in Iraqi Oil Field first appeared on Iraq Business News.

How China “Took Control” of Exxon’s Iraqi Oilfield

How China Took Control Of Exxon’s Supergiant Iraqi Oilfield

Recent reports suggest that Chinese oil giants China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) are “considering acquiring” U.S. oil titan ExxonMobil‘s 32.7 per cent stake in Iraq’s supergiant West Qurna 1 oil and gas field.

Writing in Oil Price, Simon Watkins says these reports are missing the point.

Click here to read the full story.

The post How China “Took Control” of Exxon’s Iraqi Oilfield first appeared on Iraq Business News.

Establishing a Sovereign Wealth Fund in Iraq

From the Al-Bayan Center for Planning and Studies. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

The Prospects Of Establishing A Sovereign Wealth Fund In Iraq

Throughout history, financial crises have been met with innovative reform plans that help develop the resilience of a country’s economic system, except when it comes to Iraq.

All major oil producing countries have developed sovereign wealth funds to help mitigate the effects of potential price drops on their economies, but Iraq has yet to do so.

This has not only resulted in temporary budgetary issues for Iraq, but has also allowed serious economic challenges to become entrenched in both the political and social structures of the country.

A first glance at the current economic crisis would suggest the need for a sovereign wealth fund (SWF) to overcome the impact of oil price drops.

However, Iraq’s economic challenges stem from legacy issues. Therefore, can a SWF help alleviate these historical challenges and bring about reform?

In effect, can a tool for financial diversification become a means for political and socio-economic reform?

Click here to read the full report by Mohammed Hussein Baraka.

The post Establishing a Sovereign Wealth Fund in Iraq first appeared on Iraq Business News.

Germany supporting Vulnerable Children in Iraq

UNICEF receives 26 million from Germany to support national systems and ensure vulnerable children in Iraq receive quality basic and social protection services in Iraq

The German Government, through its Development Bank, the Kreditanstalt für Wiederaufbau (KfW), has contributed 26 million Euros to UNICEF in order to help the agency in its ongoing efforts to assist the Government of Iraq in strengthening its systems and improve access to quality basic services and social protection for children and their families.

This latest amount brings the German Government’s total contributions to UNICEF Iraq to a total of 159 million Euros since 2015.

Vulnerable children and their families in Iraq are disproportionately affected by the lack of safe water, education, and social protection. The needs of the poorest have become even more acute as a result of the COVID-19 pandemic and its secondary impacts, such as disruption in schools and health services, and rights violations, as well as rising poverty, all diminish the chance of vulnerable children to realize their basic rights to survive, be protected, and continue learning.

In light of the scale of the pandemic’s effect particularly on children and their families, the German Government has reserved 6 million Euros exclusively for measures addressing COVID-19 related activities such as the Risk Communication and Community Engagement (RCCE) and the Infection Prevention and Control (IPC).

“This funding has come in at a critical time, when we should be doing all that we can to limit the effects of the pandemic on all children, especially the most vulnerable. Thanks to our German partner, we are able to scale up our efforts to support the Government of Iraq to strengthen national systems’ ability to respond and provide better quality and coordination of the basic services that it provides, public social protection for children and their families, and help to train educators, counsellors and other professionals working with children,” explained Hamida Lasseko, UNICEF’s Representative in Iraq.

For his part, the German Ambassador to Iraq, His Excellency Dr Ole Diehl (pictured), emphasized that the international community can only win the battle against the COVID-19 pandemic by working together.

“Germany continues to support Iraq in its fight against COVID-19. This is why we have launched an extensive global COVID emergency program, under which also a sizeable COVID-19 response window is allocated for Iraq and our contribution assigned to this program respectively. Good health and sanitary infrastructure are paramount to contain the virus. More importantly, every one of us needs to take part in the fight against Corona by wearing masks, keeping up social distancing and observing rules of basic hygiene.”

Since the pandemic broke, the number of children and adolescents who risk falling into poverty has doubled, from one out of five children and adolescents to over 2 out of every 5. Children and adolescents, who make-up more than half of the population in the country, are also the most at risk of experiencing poverty, service disruptions in critical basic services like primary health, water sanitation and hygiene, education and increase in rights violations.

“Investing in one’s children is the best investment any nation can make. The Iraqi government needs our support to further develop its technical capacities, strengthen its systems, and deliver for its children. We are especially appreciative of the support of our German partner at this critical time when we are working with the Government to enhance its ability and systems to deliver better education, health services, water, sanitation and protection for every boy and girl in Iraq,” added Ms. Lasseko.

There are 1.77 million people in need of humanitarian assistance and another 1.5 million who remain displaced and therefore exposed to higher risks of deprivation, violence and exploitation. The project which will be rolled out over 18 months, will target such populations.

The project focuses on long-term sustainability by strengthening national systems and capacities to provide integrated access to safe water, education and health services, protection, and social assistance, with the goal of enabling children to overcome poverty, practice their rights and fulfil their potential.

It will be implemented at the Federal level and in the Kurdistan Region of Iraq, in partnership with the Ministries of Labour and Social Affairs, the Education, the Directorates of Education at sub-national levels, and national and international Civil Society Organisations.

(Source: UN)

The post Germany supporting Vulnerable Children in Iraq first appeared on Iraq Business News.

Liftings underway at Sarta

By John Lee.

Genel Energy has announced that, following first oil production last week, first liftings have taken place from the Sarta field (Genel 30% working interest).

According to a statement from the company, the Sarta-3 well is producing at an initial rate of over 5,000 bopd, with an API gravity of c.27 degrees, in line with expectations at this stage.

Tanker loadings are now underway, with oil being transported to Khurmala for offloading into the export pipeline.

(Source: Genel Energy)

The post Liftings underway at Sarta first appeared on Iraq Business News.

Iraq cuts Oil Exports in November

By John Lee.

Iraq’s Ministry of Oil has announced initial oil exports for November of 81,262,376 barrels, giving an average for the month of 2.709 million barrels per day (bpd), down from the 2.876 million bpd exported in October.

These exports from the oilfields in central and southern Iraq amounted to approximately 78,190,444 barrels, while exports from Kirkuk amounted to 2,819,169 barrels. Exports to Jordan were 252,763 barrels.

Revenues for the month were $3.395 billion at an average price of $41.778 per barrel.

October‘s export figures can be found here.

(Source: Ministry of Oil)

The post Iraq cuts Oil Exports in November first appeared on Iraq Business News.

Dana Gas announces Record Gas Deliveries for Khor Mor

By John Lee.

UAE-based Dana Gas has announced that the production of sales gas from Pearl Petroleum‘s Khor Mor Gas Plant in the Kurdistan Region of Iraq (KRI) reached a record level of 418MMscf/d on 18 November 2020.

Dana Gas, which owns a 35% stake in Pearl Petroleum, registered a 6% year on year increase in production during the third quarter of 2020 to 32,400 boepd, driven by the completion of a new plant bypass project in August.

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

We are very pleased that Pearl Petroleum has achieved this important milestone at Khor Mor, which is the result of our continued efforts to maximise plant production. This important achievement, delivered under difficult conditions due to the global pandemic, was the result of the installation of the plant bypass in August combined with an increase in gas demand due to seasonal weather conditions.

“It is also testament to the tireless efforts of our staff at the plant to optimise plant efficiencies and reliability.

“We are also very pleased to announce that after a delay in the implementation of the first 250 MMscf/d gas processing train following border closures and travel restrictions resulting from COVID-19, that we anticipate recommencing civil engineering works on location in the next few weeks.

“All the parties working on the Khor Mor project are fully committed to executing the expansion project as quickly and as safely as possible. We now expect first gas from the project’s first gas processing train in Q1 2023 and we are also examining ways to reduce the schedule further. When implemented, the project is expected to add between $175 million and $200 million annually to Dana Gas’s revenues.

(Source: Dana Gas)

The post Dana Gas announces Record Gas Deliveries for Khor Mor first appeared on Iraq Business News.