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KCA Deutag Wins New Iraq Drilling Contracts

By John Lee.

UK-based drilling and engineering contractor KCA Deutag has announced that it has been awarded a one year contract for two rigs to carry out land drilling operations in Southern Iraq.

Its T-210 rig (pictured) will move from Oman to work along with the T-601, bringing the company’s total number of rigs in Southern Iraq up to three.

This new contract, along with deals for another three rigs in other territories, have a combined contract value of $48 million.

Commenting on these awards, Simon Drew President of Land said:

“These contract wins, which come in a tough environment in the wider oil industry, are very important to the Land Business Unit and KCA Deutag as a whole.  They have been won against intense competition and I would congratulate all our staff on delivering these contract successes.  We look forward to delivering value to our clients through exceptional well construction performance.”

(Source: KCA Deutag)

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Plans to increase Kirkuk Oil Output to 1m bpd

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) has said that Iraq plans to increase oil production at the Kirkuk oilfields to one million barrels per day.

According to Reuters, exports from Kirkuk have been on hold since Iraqi forces took back control of them from the Kurds last month.

At least three months will be needed to repair the old pipeline to Ceyhan port in Turkey. The main 600,000 bpd Kirkuk-Ceyhan pipeline had been offline since March 2014 following insurgent attacks.

(Source: Reuters)

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IBBC holds Successful Autumn Conference in Dubai

Iraq Britain Business Council holds successful Autumn Conference in Dubai

Following on from the first Iraq Britain Business Council conference in Dubai in 2016, the IBBC was delighted to host its Autumn Conference in the UAE once again. The event was strongly supported by the UAE authorities.

Alongside Baroness Nicholson, the UK Prime Minister’s Trade Envoy to Iraq and President of the IBBC, the conference was opened by H.E. Abdullah Al Saleh, Under Secretary for Foreign Trade and Industry, UAE Ministry of Economy.

The Minister reminded delegates that non-Oil & Gas related trade between the UAE and Iraq had already passed 11 Billion USD in 2016, with Dubai in particular being a hub for local and international companies in the region.

The Minister firmly believes that the UAE’s role in the rebuilding of Iraq will continue to expand and expressed his wish to cooperate with organisations such as the IBBC to accomplish this crucial task.

Vikas Handa, IBBC UAE Representative and the Managing Director of the Emirati Company DrillTech, warmly thanked the minister and stated that the IBBC stands ready to work even more closely with the UAE in Iraq.

The Government of Iraq sent a high calibre ministerial delegation led by H.E. Mr Qasim Al-Fahdawi, The Minister of Electricity, to the conference. The delegation included H.E. Mrs Ann Naufi Aussi Balbool, Minister of Construction Housing and Public Municipalities; H.E. Kadhim Fijan Al Hamami, Minister of Transport; H.E. Dr Sami Al Araji, Chairman of the National Investment Commission (NIC); and H.E. Mr Fayadh Hassan Nima, Deputy Minister of Oil for refining affairs.

The conference was structured around several sessions in which the Iraqi officials and international companies operating successfully in Iraq, most of which are members of the IBBC, exchanged their views and experiences.

These sessions focused on strengths, weaknesses and opportunities of the economy in Iraq, Reconstruction & Infrastructure, Transport, Power and Oil & Gas. In parallel, a series of high level round-table discussions between investors and Iraqi Government representatives took place.

The conference included for the first time a presentation on the rapidly developing Tech sector in Iraq , given by the CEO of Zain.

IBBC thanks the International Finance Corporation (World Bank) and the IMF for its participation. Thanks also go to the IBBC members who sponsored the conference: Gold Sponsor International Islamic Bank; Silver Sponsors Serco and Gulftainer; Lunch Sponsor Rolls-Royce; pre-reception Sponsor Wood; and Coffee Break Sponsors Eversheds Sutherland and KCA Deutag.

IBBC Managing Director, Christophe Michels, stated that the increasing involvement of the UAE and wider GCC with Iraq was a game changer for the country. The IBBC very much welcomes this development and is delighted to be part of it and support it. The organisation will increase its presence in the UAE and the Autumn Conference in Dubai will become a regular feature in its calendar of events.

(Source: IBBC)

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Video: Kurdistan Secession Bid takes a toll on Economy

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

The economy in the Kurdish region of Iraq has taken a hit after the referendum on secession.

The central government in Baghdad has closed international airspace, tourists are staying away, and there’s been fighting between Iraqi forces and Kurdish Peshmerga.

And while a ceasefire is now in place, uncertainty continues to affect the region and its economy.

The Kurds are disappointed in the people they thought were their allies, especially the US.

Al Jazeera‘s Stefanie Dekker reports from Dohuk, Northern Iraq@

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DNO Flows Peshkabir-3 Well

DNO ASA, the Norwegian oil and gas operator, today announced flow rates of more than 3,000 barrels of oil per day (bopd) from the first zone tested in the Peshkabir-3 well in the Kurdistan region of Iraq. Nine other oil zones and one gas zone have been identified for testing in a 1.2 kilometer horizontal section of Cretaceous and Jurassic reservoir.

The Company has fast tracked the development of the field and an early production facility will be commissioned by year-end. The previously drilled Peshkabir-2 well has produced at a steady rate of 4,700 bopd since May and comingled with over 100,000 bopd from the adjacent Tawke field for export. DNO’s operations in Kurdistan continue uninterrupted.

DNO is the most active driller in Kurdistan with three rigs deployed and 15 wells in 2017 across three operated fields in various stages of production, development and appraisal. Most recently, the Company spud the Hawler-1A multilateral well in October to appraise the Benenan heavy oil field in the Erbil license.

The Company has received year-to-date export payments totaling USD 297 million net to DNO, up from USD 210 million during the full-year 2016. With continuing export payments, DNO will step up investments in Kurdistan in 2018.

The Company today released its third quarter operating and financial update, reporting an operating profit of USD 469 million during the quarter. This follows recognition of USD 556 million as other income following the receivables settlement agreement with the Kurdistan Regional Government in August 2017.

Pursuant to the agreement, DNO was assigned an additional 20 percent in the Tawke license, bringing the Company’s operated stake to 75 percent. Partner Genel Energy plc holds the remaining 25 percent interest.

DNO’s cash balance stood at USD 399 million at the end of the third quarter, up from USD 261 million at end-2016. With the strengthening of its balance sheet, the Company’s equity ratio has increased to 60 percent.

(Source: DNO)

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Kurdistan Oil Conference in London Postponed

By John Lee.

The CWC Kurdistan-Iraq Oil and Gas conference, planned for London in December, has been postponed.

The Kurdistan Regional Government (KRG) cited “the current logistical and other circumstances affecting the Kurdistan Region” for their request to reschedule the conference.

CWC has said that new dates and venue will be announced shortly.

(Sources: KRG, CWC)

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60 New Projects to be Announced at IBBC Dubai Conference

Iraqi ministers intend to announce and discuss up to 60 intended projects at the IBBC summit conference this weekend in Dubai.

In a surge of confidence, a number of Iraqi ministers will be unveiling a raft of infrastructure, oil, power and industrial projects across numerous industry sectors:

  • Construction: Water treatment, waste water, housing, malls & infrastructure projects
  • Industry & Minerals: 10 new projects, including petrochemicals, methanol and phosphates
  • Oil: 4 new refineries, 3 refurbishments and 2 new initiatives
  • Energy: 32 separate power projects
  • Transport: Port projects and new railways

Vikas Handa, Director of IBBC Dubai says:

“We have been pleasantly surprised by the volume of opportunities the Iraqi Ministers have come forward with this Autumn, and it’s clear they are keen to drive forward economic development through major projects. There are also numerous adjacent opportunities on offer for a broad range of sectors.

“For those companies interested to attend the Conference, they will also be able to engage with the Delegation at more intimate round table discussions.

“We welcome companies to enjoy the inside track, to meet the attending ministers and discuss how your company can engage with these opportunities.”

To attend, register and sign up for the conference here: www.webuildiraq.org/ibbc-conference/autumn-conference/

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Iran, Iraq Assess Drilling Cooperation in Oil Projects

A delegation of senior executives from Iraq’s National Oil Company visited senior officials with the National Iranian Drilling Company (NIDC) to discuss cooperation in drilling projects in Iraq.

Cooperation and facilitation of NIDC’s presence in Iraqi projects were discussed during the Monday meeting of the two companies.

A high-profile delegation from Iraq comprising executives of the Iraq National Oil Company and provincial officials from Iraq’s Zigar province paid a visit to NIDC in the southwestern city of Ahvaz, Khuzestan.

The two sides discussed views on facilitation of NIDC’s presence in Iraq, said Saeid Heidarian, an NIDC official.

Securing a toehold in the Iraqi drilling market has always been on NIDC’s agenda, he added.

(Source: Shana)

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Baghdad “Looks to Take Control of KRG Oil”

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

The Iraqi State Organization for Marketing Oil (SOMO) announced Nov. 2 that it is arranging with Turkey to allow SOMO to sell Iraqi crude from the disputed territories through the pipeline from Kirkuk to the Ceyhan Turkish port.

The Kurdistan Regional Government (KRG) used to export about 500,000 barrels per day independently through Ceyhan before the Baghdad operation to retake the disputed areas in mid-October.

It was not long after the Iraqi army took over the oil fields in Kirkuk in a military operation to “impose security,” as described by Prime Minister Haider al-Abadi, that the federal government resumed oil pumping operations.

The operations started about a week after the clashes between governmental forces and Kurdish peshmerga forces. Meanwhile, the Ministry of Oil rushed to increase oil production, and on Oct. 23, the ministry requested the help of the British petroleum company BP in increasing production in Kirkuk oil fields to more than 700,000 barrels per day. The ministry also announced the formation of a ministerial committee to advance the oil industry in the province of Kirkuk.

Kirkuk has more than 35 billion barrels in oil reserves and a production capacity ranging from 750,000 to 1 million barrels per day. The federal government seems determined to control the oil sources, especially in Kirkuk and the disputed areas. In light of this, on Oct. 19, the Iraqi minister of oil warned all countries and international petroleum companies against signing contracts with any Iraqi party without first consulting the federal government.

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Genel Energy confirms Payment from KRG

Genel Energy has announced that the company has received an override payment of $6.41 million from the Kurdistan Regional Government (KRG).

The payment represents 4.5% of Tawke gross field revenues for the month of September 2017, as per the terms of the Receivable Settlement Agreement.

An entitlement invoice for that month’s export deliveries has been issued separately and will be shared pro-rata with DNO upon receipt.

(Source: Genel Energy)