Cursor International executes projects and collaboration activities across several industries.
By John Lee.
The Palestinian Authority has reportedly filed a formal request to Israel to allow the import of fuel from Iraq.
Palestinian Prime Minister, Mohammed Shtayyeh, told Israel’s Haaretz newspaper that although the request was made four months ago, Israel has yet to respond.
He said:
“Fuel is our biggest expense … The cheaper fuel from Iraq will reduce the pressure on our budget considerably.”
(Source: Haaretz)
Gulf Keystone Petroleum (GKP) has issued an operational and corporate update in advance of the Company’s full year 2019 results which are scheduled to be released on 26 March 2020.
Operational
Corporate
Outlook
Jon Ferrier, CEO, commented:
“2019 saw GKP continue to realise the benefits of the Company’s recent turn around. In a year in which we returned significant value to shareholders, through both our maiden dividend and share buyback programmes, we also benefited from the increased operational tempo. This resulted in the first steps along the road to a significant production increase from Shaikan, and we are pleased to confirm today that we achieved our original 2019 gross production guidance.
“Looking forward, the pace of the development of Shaikan continues with the drilling and investment in our facilities, in order to deliver our growth trajectory. With a robust balance sheet and confidence in regular payments, we expect to be fully funded for our work programme and continue to return value to shareholders.“
(Source: GKP)
By John Lee.
The head of Trade Bank of Iraq (TBI) has reportedly said that the bank would stop processing payments for Iranian gas imports if a US sanctions exemption expires next month.
Faisal al-Haimus told AFP:
“As a bank, the most important thing we have is that we are compliant (with international regulations). That’s why people trust us.”
Iraq relies heavily on Iran to support its struggling electricity sector.
When the United States imposed sanctions on Iran’s energy sector in 2018, it granted Iraq a series of temporary waivers to allow it to buy gas from Iran.
(Source: AFP)
By John Lee.
BP has reportedly finished its work at Iraq’s giant Kirkuk oilfield.
According to Reuters, sources confirmed that the decision followed the expiration of its $100-million exploration contract at the end of December, at which point there was no agreement on the field’s expansion.
It quotes a source at BP as saying:
“In 2013, BP signed a letter of intent (LOI) with the North Oil Company of the Iraq Ministry of Oil to support field activity studies in Kirkuk. As planned, in December 2019 BP completed field work, studies and recommendations.”
Another source said that the results of the study were “below expectations” and “not encouraging for BP to extend its operations.”
(Source: Reuters)
By John Lee.
The International Energy Agency (IEA) has warned that Iraq is a “potentially vulnerable” energy supplier.
In its Oil Market Report, it says that in the medium term, “heightened security concerns might make it more difficult for Iraq to build production capacity“.
(Source: IEA)
By John Lee.
US-based Schlumberger has reported that Iraq has contributed to its revenue growth in the region.
In its full-year results for 2019, the company said:
“Sequential international growth was led by the Middle East & Asia area, where revenue increased 5% driven by higher year-end product sales in Kuwait, Iraq, and Oman.”
(Source: Schlumberger)
By John Lee.
China’s Zhongman Petroleum and Natural Gas Group Corp., Ltd. (ZPEC) has reportedly announced a new drilling contract with Weatherford in Southern Iraq.
Chinese media reports that the deal is worth approximately $27 million, and follows another contract with Weatherford in Iraq agreed in December.
The oil field was not identified.
(Source: Eastmoney)
By John Lee.
Shares in Genel Energy closed Thursday up more than 4 percent after the company issued the following trading and operations update in advance of the Company’s full-year 2019 results, which are scheduled for release on 17 March 2020. The information contained herein has not been audited and may be subject to further review.
Bill Higgs (pictured), Chief Executive of Genel, said:
“2019 was a successful year for Genel, and we continue to deliver on our promises. We increased our highly cash-generative production in line with guidance, paid a material dividend, grew our operating capabilities, and added new assets to the portfolio that will bear fruit in 2020.
“Our ongoing cash generation, with confidence of regular payments and in the security of the Kurdistan Region of Iraq, means that it is business as usual and our investment plans are moving forward at pace. This increasing investment in our growth assets is more than covered by expected free cash flow, and will see production diversify and increase as Sarta comes onstream in the summer, with enough remaining to underpin an increase in our already significant dividend.“
FINANCIAL PERFORMANCE
OPERATING PERFORMANCE
| (bopd) | Gross production
2019 |
Net production
2019 |
Net production
2018 |
| Tawke PSC | 123,940 | 30,990 | 28,260 |
| Taq Taq | 11,960 | 5,260 | 5,430 |
| Total | 135,900 | 36,250 | 33,690 |
PRODUCTION ASSETS
PRE-PRODUCTION ASSETS
ESG
OUTLOOK AND 2020 GUIDANCE
(Source: Genel Energy)
DNO ASA, the Norwegian oil and gas operator, today announced a 29 percent year-on-year increase in its net Company Working Interest (CWI) production in 2019 to 104,800 barrels of oil equivalent per day (boepd) on the back of acquisitions and a record drilling campaign.
In the Kurdistan region of Iraq, production from the two fields in the Tawke license climbed from 113,100 barrels of oil per day (bopd) in 2018 (79,700 bopd CWI) to 124,000 bopd in 2019 (87,400 bopd CWI). Production of 122,800 bopd in the fourth quarter of 2019 was up 3,000 bopd from the previous quarter. The Company is operator of the Tawke license with a 75 percent interest.
At Tawke, 2019 production stood at 68,800 bopd, with wells drilled last year contributing 13 percent of field production at yearend. At Peshkabir, 2019 production stood at 55,200 bopd, with wells drilled in 2019 contributing 40 percent of field production at yearend.
“Even though Tawke is now a mature field, we are continuously finding ways to slow its decline while teasing additional production from the newer Peshkabir field, all the while probing for other opportunities in Kurdistan,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani.
Elsewhere in Kurdistan, DNO reported a discovery in the Baeshiqa-2 exploration well last November after flowing variable rates of light oil and sour gas to surface from the upper part of Triassic Kurra Chine B reservoir following acid stimulation. Further testing of this and several other Jurassic and Triassic zones will determine the next steps towards appraisal and assessment of commerciality. DNO holds a 32 percent interest and operatorship of the Baeshiqa license.
Meanwhile, the Peshkabir-to-Tawke gas injection project designed to increase oil recovery rates at Tawke while eliminating flaring at Peshkabir will be completed in March 2020. Once completed, CO2 emissions from DNO’s operated fields will average 7 kilograms per barrel of oil equivalent (boe) produced, compared to an average of 9 kilograms per boe on the Norwegian Continental Shelf and a global average of 18 kilograms per boe.
DNO retained a strong cash balance of USD 480 million at yearend 2019 plus USD 144 million in marketable securities. Following a delay in export payments last month from the Kurdistan Regional Government to oil operators, DNO has since yearend received payment for its August oil sales totaling USD 52 million net to the Company.
(Source: DNO)
By John Lee.
A former head of Iraq’s state-run Missan Oil Company (MOC) has reportedly been appointed to run the Ministry of Oil’s Petroleum Contracts and Licensing Directorate (PCLD).
According to Reuters, Ali Maarij, who ran the MOC until becoming a member of parliament in 2014, will take over from Abul Mahdi al-Ameedi, who reached retirement age late last year.
The PCLD oversees oil contracts and negotiates energy deals with international companies.
(Source: Reuters)