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Oil Ministry Finalises Export Figures for July

By John Lee.

Iraq’s Ministry of Oil has announced finalised oil exports for July of 85,663,290 barrels, giving an average for the month of 2.763 million barrels per day (bpd), down from the 2.816 million bpd exported in June.

These exports from the oilfields in central and southern Iraq amounted to 82,700,381 barrels, while exports from Kirkuk amounted to 2,701,015 barrels. Exports to Jordan were 261,894 barrels.

Revenues for the month were $3.492 billion at an average price of $40.762 per barrel.

June’s export figures can be found here.

(Source: Ministry of Oil)

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$8bn New Iraqi Energy Agreements with US Firms

The following commercial agreements worth as much as $8 billion were reached during a signing ceremony between U.S. energy companies and the Government of Iraq on August 19, 2020:

  • Honeywell and the Ministry of Oil agreed to advance the development of the Ar Ratawi [Artawi] gas project, which will further enable Iraq to capture, process, and utilize indigenous gas resources to meet domestic energy demand.
  • General Electric and the Ministry of Electricity committed to three agreements that will help increase reliable access to electricity in Iraq, including efforts related to GE’s existing generation maintenance program, addition of combined cycle units at the Dhi Qar and Samawah power plants, and collaboration on strengthening Iraq’s electricity grid and interconnection with neighboring countries.
  • Stellar Energy and the Ministry of Electricity concluded a front-end engineering and design agreement that will help advance deployment of turbine inlet air chilling technology on more than 30 turbines, which will increase power sector efficiency by as much as 30 percent.
  • Baker Hughes and the Ministry of Oil agreed to further collaboration on flare gas-to-power opportunities, and deployment of U.S. oil field services and equipment.
  • Chevron and the Iraqi Ministry of Oil outlined a framework for entering into exclusive negotiating on an exploration, development, and production contract in the Dhi Qar Province.

US Secretary of Energy Dan Brouillette (pictured) said:

“As two of the top oil producers in the world, the United States and Iraq share an appreciation for how energy shapes our economies and can strengthen our respective security.

“That is why I was thrilled to join Prime Minster Kadhimi, Minister Ismael, and Minister Hantoush today for an event featuring this prestigious Iraqi delegation and our great American energy companies. Together, we laid the groundwork for commercial partnerships worth up to $8 billion.

“These deals are key to Iraq’s energy future, and I am confident that the same companies that have empowered the United States to become energy independent will deploy their deep expertise to help Iraq achieve its full potential in the energy sector.“

(Source: US Dept of Energy)

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Mousa Jiyad Questions Norwegian Tanker Deal

By John Lee.

Iraq Business News Expert Blogger, Ahmed Mousa Jiyad, has demanded an investigation into Iraq’s reported contract to buy tankers from a Norwegian company.

The Ministry of Oil announced on 18th August that the Iraqi Oil Tankers Company (IOTC) had concluded a contract with Norway’s Batservice Mandal [Båtservice Mandal AS] to build two oil tankers.

According to Mr Jiyad, the company has no experience in building ships of this sort, and filed for bankruptcy last year.

The full text of Mr Jiyad’s statement (in Arabic) can be read below:

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Iraqi Govt needs more Female Voices to Fight the Pandemic

By Hanar Marouf, for the Atlantic Council. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Iraq’s government needs more female voices to fight the pandemic

Iraq is in a precarious condition. It has faced major challenges on multiple fronts, including political instability, a drop in oil prices, and the economic fallout amid the coronavirus outbreak.

While the government deliberates protection measures, the capacity of hospitals and staff remain limited.

The rampant spread of the virus, with an average of 3,000 daily infections, has only been exacerbated by a lack of concrete emergency plans. Up to mid-August, Iraq had 150,000 cases and 5,400 deaths.

Click here to read the full story.

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US announces $204m Humanitarian Assistance for Iraq

On Wednesday in Washington, the United States announced nearly $204 million in additional humanitarian assistance for the people of Iraq, Iraqi refugees in the region, and to generous communities hosting them.

This funding includes nearly $133 million from the State Department’s Bureau of Population, Refugees, and Migration and more than $71 million from USAID‘s Bureau for Humanitarian Assistance.

This funding brings the total for the U.S. humanitarian response for Iraq to more than $706 million since the beginning of Fiscal Year 2019. In addition, the United States has provided $49.5 million in COVID assistance in Iraq and more than $22.7 million to date in Fiscal Year 2020 to assist over 244,000 Syrian refugees in Iraq.

This assistance will provide critical shelter, essential healthcare, emergency food assistance, and water, sanitation, and hygiene services across Iraq. It will also improve access to civil documentation and legal services, the capacity of health care facilities and increase access to education and livelihoods opportunities.

The United States remains the largest single donor of humanitarian assistance in Iraq and globally, in line with our National Security Strategy. We appreciate all donors who have stepped up and continue to encourage both traditional and new donors to help meet growing needs.

(Source: US State Dept)

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Norwegian Firm to build Oil Tankers for Iraq

By John Lee.

Iraq’s Ministry of Oil, represented by the Iraqi Oil Tankers Company (IOTC), has concluded a contract with Norway’s Batservice Mandal [Båtservice Mandal AS] to build two oil tankers.

Oil Minister Ahsan Abdul-Jabbar Ismail said that this contract comes within the framework of the ministry’s plans to rebuild the national fleet of oil tankers, which he said have been damaged by futile wars over the past decades.

The General Director of the Iraqi Oil Tanker Company, Ahmed Khazal, said that the two oil tankers will have a capacity of 30,000 tons each, and be delivered 18 months after the date of signing the contract.

(Source: Ministry of Oil)

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Iraq to Sign Exploration MoU With Chevron

By John Lee.

Iraq is reported to be planning to sign a memorandum of understanding with US-based Chevron to explore for oil in Dhi Qar (Thi Qar) province.

A person familiar with the matter told Bloomberg that the deal would formalise Chevron’s interest in exploring the eastern and western parts of Nasiriyah, the capital of Dhi Qar.

More here.

(Source: Bloomberg)

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GKP CFO to Chair Oryx

Oryx Petroleum has announces the appointment of Sami Zouari (pictured) as Board Chair and Independent Director with immediate effect.

Mr. Zouari  succeeds Jean Claude Gandur who recently resigned from the Corporation as part of transactions consummated between The Addax and Oryx Group PLC and Zeg Oil and Gas Limited.

Sami Zouari was most recently the Chief Financial Officer and an Executive Director of Gulf Keystone Petroleum Limited, an independent oil and gas company that operates the Shaikan Field in the Kurdistan Region of Iraq. During his tenure, Mr. Zouari played a lead role in the operational and commercial transformation and the financial restructuring of Gulf Keystone into one of the premier independent exploration and production companies operating in the Kurdistan Region of Iraq and the wider Middle East. Prior to appointment at Gulf Keystone, Mr. Zouari held various positions at Total E&P and BNP Paribas.

Commenting today, Independent Director of Oryx Petroleum, Peter Newman, stated:

“We are delighted to welcome Sami to the Board. His extensive experience in the oil and gas sector in the Kurdistan Region of Iraq and the Middle East, his knowledge of financial markets, and his experience with corporate transformation processes will be enormously helpful to us as we confront financial challenges and seek to maximise value from the Hawler license.”

Also commenting today, Chair of Oryx Petroleum, Sami Zouari, stated:

“The Hawler license is an asset I believe has significant potential. I look forward to working with the Board and Management of Oryx Petroleum to transform Oryx Petroleum into one of the leading independent exploration and production operators in the Kurdistan Region.”

(Source: Oryx Petroleum)

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Japanese Firm awarded $3.7bn Iraq Deal

JGC Holdings Corporation announced today that JGC Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, has been received the Letter of Award for the Basrah Refinery Upgrading Project for an Iraqi oil refining company under the Iraqi Ministry of Oil. Details of the project are as follows.

 
1. Client South Refineries Company

(Oil refining company under the Iraqi Ministry of Oil)
2. Construction location Basrah, Republic of Iraq

(Approx. 550 km SE of the capital of Baghdad)
3. Primary equipment(processing abilities) Fluid catalytic cracking unit (34,500 barrels/day),
vacuum distillation unit (55,000 barrels/day),
diesel desulfurization unit (40,000 barrels/day), etc.
4. Contract services Engineering, procurement, construction and commissioning
5. Contract type Lump sum contract
6. Order amount Approx. 400 billion JPY
7. Scheduled completion 2025

Iraq is one of the world’s leading oil-producing countries, with a confirmed crude oil reserve of 145 billion barrels and a daily crude oil production of 4.41 million barrels. However, the two refineries currently in operation were constructed in the 1970s and their production capacity has decreased due to war damage and deterioration. Unable to meet domestic demand for petroleum products, Iraq has to import petroleum products such as gasoline.

This upgrading of the Basrah refinery will newly install, on land adjacent to the existing Basrah refinery, fluid catalytic cracking unit, vacuum distillation unit, and diesel desulfurization unit, etc., thereby increasing production to 19,000 barrels/day of gasoline and 36,000 barrels/day of diesel fuel, making it possible to reduce the gap in supply and demand for petroleum products.

In addition, the petroleum products produced at the modernized refinery will meet international environmental standards and it is expected that they will contribute to reducing the environmental impact. This project is positioned as spearheading the modernization and sophistication of Iraq’s oil refining sector.

Funding for the project will be procured through Japanese ODA loans from the Japan International Cooperation Agency (JICA), and is the largest-scale reconstruction assistance from Japan since the 2003 Iraq War.

In carrying out this project, the Group plans to conduct skills training for more than 1,000 Iraqis and to hire approximately 7,000 skilled Iraqi workers. Furthermore, it is expected that more than 2,000 operating personnel jobs will be created after the project’s completion, which will contribute to solving the unemployment problem in Iraq

The Group completed a power station reconstruction project in Iraq in 2013, and this is the Group’s second project in Iraq. The Group will contribute to the reconstruction and economic development of Iraq through the successful completion of this project.

(Source: JGC)

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Iraq again breaks daily COVID-19 record

By Omar al-Jaffal for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

Iraq again breaks daily COVID-19 record

Iraq broke its record for daily confirmed COVID-19 cases again on Friday.

There were 4,013 new cases on Aug. 14. The highest numbers were in the capital Baghdad, Erbil in the Kurdistan Region and Basra in the south, according to the Ministry of Health.

Click here to read the full story.