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Petrel Resources “Re-Establishing its Baghdad Operations”

Irish-based Petrel Resources has said it is “re-establishing its Baghdad operations”.

In its interim statement for the six months ended 30 June 2018, the company said:

“As we approach the end of 2018, Iraq is fitfully emerging from conflict, and again open for responsible business.  Baghdad has re-established its authority, by defeating Da’ech insurgents and recovering Kirkuk. 

“Pro-business parties won the 2018 elections.  While it proved difficult to form a National Government in 2018, which contributed to turbulent protests in southern Iraq during 2018, prospects are now more encouraging than at any time since 2010.

“Iraq has endured an almost continuous period of conflicts and/or sanctions since 1980, from which it is only now emerging.  Much trauma has been inflicted, as shown by the difficulties forming a government in 2018 and the protests in southern Iraq – a region generally supportive of Baghdad governments since 2005.

“Yet, despite 2018 difficulties, we believe Iraq is finally turning a corner: pro-business parties open to international investment polled well in the May 2018 general election.  But no one party holds a majority and, as of September 2018, negotiations on new government formation were ongoing.

“So far, the impact of this unrest on oil production from the southern fields has been limited, with August 2018 output stable at 4.65 million barrels daily (mmbod).  Internal demand of 0.8 mmbod leaves nearly 3.8 mmbod available for export – which has remained consistent despite infrastructural and decision-making challenges – though well below the 2008 target of 6.5 mmbod and the 2012 target of 8.5 mmbod.  Iraqi output is actually higher than immediately before the November 2016 OPEC + Russia cuts, and also higher than its current official OPEC quota of 4.444 mmbod.

“The Western Desert, where Petrel has an interest in exploration ground, is still impossible for international companies to effectively operate.”

(Source: Petrel Resources)

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GKP appoints new Non-Executive Director

Gulf Keystone Petroleum (GKP) has announced the appointment of Kimberley Wood as a Non-Executive Director with effect from 01 October 2018.

Kimberley Wood is a legal professional with 18 years’ experience and a specialist in the oil and gas sector.  Most recently she was Head of the Oil and Gas for EMEA at Norton Rose Fulbright LLP and remains a Senior Consultant for the firm. Throughout her career she has advised a wide range of companies in the sector, from small independents through to super majors.

Ms. Wood was a Partner at Vinson & Elkins RLLP from February 2011 to April 2015, and was previously at Dewey & LeBoeuf LLP. She was included as an expert in Energy and Natural Resources in the 2018 “Expert Guide” series and Women in Business Law, 2018 and is a member of the Advisory Board to the City of London Geological Forum.

Ms. Wood is currently a Non-Executive Director of Africa Oil Corp., an E&P company listed on the TSX (Canada) and Nasdaq OMX (Stockholm), with assets in Kenya and Ethiopia and a member of the Lundin Group.

Following Ms. Wood’s appointment, the Board will review the composition of the Board Committees.

Jaap Huijskes, Gulf Keystone’s Non-Executive Chairman, said:

“We are pleased to welcome Kimberley to the Board of Gulf Keystone Petroleum. She is a highly respected legal practitioner who has been counselling Boards for the past two decades.  We very much look forward to Kimberly’s contribution, in particular in this exciting phase of investment and of markedly increasing production from Shaikan.”

(Source: GKP)

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Iraq seeks Sanctions Waiver on Iran Energy Trade

Iraq is negotiating with the U.S. for exemptions from the impending snap-back of sanctions against Iran, arguing that it could not cut consumption of Iranian electricity and natural gas immediately without suffering serious economic harm and social instability.

An Iraqi delegation was in Washington last week seeking a waiver for its cross-border trade, meeting with senior officials in the State Department, Treasury Department, and National Security Council, according to multiple officials familiar with the talks.

More details here from Iraq Oil Report (subscription required)

(Source: Iraq Oil Report)

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IOCs discuss Basra’s Oil and Gas Megaprojects

BP, Shell, Basra Gas Company, LUKOIL, Petronas and Chevron discuss Basra’s oil and gas megaprojects

The 5th annual CWC Basra Megaprojects Conference – Oil, Gas & Environment will be held from 9-10 October in Istanbul, Turkey chaired by the EU Ambassador to Baghdad, Ramon Blecau.

In a show of support for the rebuilding of Iraq, Ambassador Blecau and industry experts will highlight the business opportunities available in the resource-rich South of Iraq with the aim of driving more investment to develop the country’s industrial infrastructure.

The conference takes place under the patronage of Basra’s Governorate, Council and oil company and looks to find solutions to the challenges of Basra’s oil and gas megaprojects and increasing Iraq’s oil and gas production, as well as highlighting the upcoming infrastructure projects for: gas, water, electricity and environment. All the major operators will be participating in discussions including: BP, Shell, Basra Gas Company, LUKOIL, Petronas and Chevron.

Further to these discussions, there will be a strong focus on Iraq’s environment and how to build a legislative framework to tackle Basra’s environmental issues; tackling all types of challenges including the demining projects.

New technology will play a significant role in achieving operational excellence in the execution of Iraq’s projects; whilst Iraq’s new generation of workforce are eager to embrace the technologies, the conference will touch upon the training programmes that are imperative for helping Iraqis compete for job opportunities and increase the role of the Iraqi local workforce in the execution of the latest projects.

Water and desalination projects will be the centre of discussion on the second day of the conference as well as the electricity requirements for such projects and ideas for renewable projects in Iraq.

Gas and petrochemical projects will also be covered by industry experts, which will be instrumental in creating new jobs for Iraqis but raise further questions on how the environment can be preserved during these processes. During the conclusion of the Conference, all the available tenders for the new projects will be outlined.

The interactive networking sessions will be at the centre of the conference with great number of functions including the Gala Dinner at the end of the first day of the Conference. The achievements of individuals in environmental technology projects will also be celebrated at the Environmental Awards Ceremony, which will take place during the Gala Dinner with awards being given out by the Iraqi delegation.

We look forward to seeing everyone at the Intercontinental Istanbul from 9-10 of October. To download the latest programme, please visit www.cwcbasraoilgas.com/brochure-download/.

Distinguished Speakers to include:

  • Ambassador Ramon Blecua, Ambassador / Head of Delegation, Delegation of the European Union to Iraq
    • HE Kameran Ali Hassan    , Deputy Minister of Environment, Ministry of Environment, Federal Government of Iraq
    •       HE Asaad Abdulamir Abdulghafar Al – Idan    , Governor of Basra, Federal Government of Iraq
    •       HE Engineer Mohammed Al Tamimi    , First Deputy Governor of Basra, Governorate of Basra, Federal Government of Iraq
    •       Ihsan Abduljabbar Ismaael Al – Saade    , Director General of the Basra Oil Company, Ministry of Oil, Federal Government of Iraq
    •       HE Dara Reshid    , Deputy Minister, Deputy Head of Reconstruction Fund for Areas Affected by Terroristic Operations (REFAATO), Ministry of Construction, Housing & General Municipalities, Federal Government of Iraq
    •       HE Ali Dawai Lazem    , Governor of Maysan, Federal Government of Iraq
    •       Nafaa Abdulsada Ali Al-Hmidawi    , Director General of Training & Development Office, Ministry of Electricity, Federal Government of Iraq
    •       Mohammed Hashim    , Director General of Electricity Distribution, Ministry of Electricity, Federal Government of Iraq
  • MP Dr Jamal Abdul-Zahra Muhammadawi, Member of the Parliament Representing Basra, Federal Parliament of Iraq •                   Kevin J. Kveton, Ph.D.Director, Iraq Exploration & Business Development, Chevron  Europe, Eurasia & Middle East Exploration & Production
    •       Zaid Elyaseri    , Country Manager, BP Iraq
    •       Dr Mark Wharton    , Development & JV Manager Shell Iraq, Shell EP International Ltd.
    •       Abd Malik Jaffar    , Iraq Country Chairman, PETRONAS Carigali Iraq Holding B.V.
    •       Yaroslav Okulov    ,  Financial Director, LUKOIL Mid-East Ltd
    •       Dr Jaafar Oklany    , Commercial Director, Basrah Gas Company

View the full list of speakers here: http://www.cwcbasraoilgas.com/speaker/

The renowned Conference will address opportunities, projects and tenders in each one of these industries through its 2 day Strategic Programme. Attendees can expect the following topics to be discussed:

  • Current updates on Basra’s oil fields
  • Iraq’s Environment
  • Infrastructure for Upstream Oil & Gas Projects ( Technology Showcasing- upstream activities suppliers, pipelines suppliers, demining technologies, logistics suppliers, security suppliers ) & Training on the New Skillsets
  • Finance, Laws & Regulations & Procurement
  • Water Projects: Increasing Efficiency for the Oil & Gas Projects
  • Electricity Expansion & Renewables for the Oil & Gas Projects
  • Gas & Petrochemicals
  • Energy Tenders Announcements; Downstream, Midstream, Petrochemicals & Electricity projects

View the full programme here: www.cwcbasraoilgas.com/brochure-download/

(Source: CWC)

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Eni CEO meets Iraqi Oil Minister

The oil minister of Iraq, Jabbar Ali Hussein Luaibi, and the Chief Executive Officer of Eni, Claudio Descalzi (pictured) met in Baghdad on Saturday.

During the meeting Eni’s CEO had the opportunity to outline the Company’s current activities in the country in light of the recent achievements of the Zubair field development, where the production has grown by over 100% since 2015.

The project, carried out by Eni with Basra Oil Company (BOC), has marked the fast track development of one of the largest producing oil fields in the Southern Iraq region of Basra.

Furthermore Claudio Descalzi updated the Minister Luaibi on a new 380 MW power plant which is in the final stages of construction. The plant will generate power for Zubair field and for domestic consumption in Basra Governorate.

Claudio Descalzi and Minister Jabbar discussed additional increase of Zubair production, future opportunities and development investments that would further strengthen Eni’s relationship with the country. Eni’s CEO has in fact confirmed Eni commitment in Upstream sector in Iraq and its support to the country through several initiatives.

Eni’s CEO and the Minister of Oil discussed among other things on the progress of social projects that are currently underway in the Basra Governorate in the areas of healthcare, education, through the construction among other things of one secondary school in Basra for 900 students and refurbishment of existing ones targeting total of 77 schools within the next 4 years, access to energy, through the expansion of the power plant, clean drinking water, through the overhaul of drinking water treatment plants, and new initiatives in agriculture sector which will allow creation of jobs and the development of local economy.

Finally, Eni’s CEO highlighted potential synergies related to energy projects in Iraq, a strategic lever for the Country in maximizing its use of national natural resources through project integration within the entire energy chain and double country oil production within limited time.

Eni has been present in Iraq since 2009, where it operates through its subsidiary Eni Iraq B.V., and with the ramp up of the Zubair Field Development Project (Eni 41.56%, Kogas 23.75%, BOC 29.69%, Missan 5%) the Company has become one of Iraq’s main operators in the oil sector. Eni currently operates 475,000 barrels of oil equivalent per day in Iraq.

(Source: ENI)

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Production Restarted at Baiji Refinery

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] announced on Sunday the full rehabilitation of the Salahaddin-2 unit at Baiji oil refinery.

The refinery was shut down in 2014 due to the actions of the Islamic State group (IS, ISIS, ISIL, Daesh).

The Salahaddin-2 unit has a capacity of 70,000 barrels per day (bpd).

(Source: Ministry of Oil)

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SNC-Lavalin awarded West Qurna 2 Contract

Canadian-based SNC-Lavalin (TSX:SNC) has announce that it has been awarded a framework agreement for project support services with LUKOIL Mid-East for the West Qurna phase 2 oil field in Iraq.

Christian Brown (pictured), President, Oil & Gas, SNC-Lavalin, said:

“We continue to build on our long-term relationship with LUKOIL and to help them realize their projects successfully.”

SNC-Lavalin’s scope will include the provision of engineering, design activities and project support services for the development of the Mishrif and Yamama formations of the West Qurna 2 oil field, as well as training and continued professional development for local Iraqi professionals.

The project will be executed in country at the West Qurna phase 2 oil field, as well as from the UAE.

The West Qurna Phase 2 oil field is located in the southern part of Iraq, 65 kilometers north-west of Basra, a major seaport city, and is one of the world’s largest fields. West Qurna Phase 2 is split into three main phases, two phases for the Mishrif formation and one for the Yamama formation.

The required surface facilities for Yamama and Mishrif include major elements such as well pads, oil gathering flowlines, headers and trunklines, a central processing facility and its associated utilities and offsites, oil/gas/liquid petroleum gas export pipelines, additional storage tanks at an existing facility, power plant, water intake and supply pipelines.

(Source: SNC Lavalin)

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IBBC hosts Members’ Dinner in Baghdad

The Deputy Chairman of the Iraq Britain Business Council (IBBC), Rasmi Al Jabri, and Managing Director, Christophe Michels, hosted a dinner for members and guests at the Babylon Warwick Hotel in Baghdad on 29th August.

Many representatives from member companies were in attendance, including the Chairman of Khudairi Group and the International Islamic Bank, the CEO’s of Kuwait Energy and the National Bank of Iraq, as well as representatives from Al Burhan Group, Al Nukhba-OFS, Constellis, G4S, Standard Chartered Bank, Serco, Shell and XReach Ltd.

Ms Beverly Simpson, Iraq Country Director for the Department for International Trade, gave guests an update on the latest visa and labour regulations being applied in Iraq, followed by a discussion.

(Source: IBBC)

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Oil Exports Rise in August

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for July of 111,016,618 barrels, giving an average for the month of 3.583 million barrels per day (bpd), an increase from the 3.543 bpd exported in July.

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

Revenues for the month were  $7.729 billion at an average price of $69.593 per barrel.

July export figures can be found here.

(Source: Ministry of Oil)

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Protests at Nahr Bin Omar Oilfield

By John Lee.

Police on Sunday have reportedly used tear gas to disperse around 150 protesters at the main entrance to the Nahr Bin Omar oilfield in Basra.

According to Reuters, officials said operations were running normally, with production at about 44,000 bpd.

The field is operated by the state-run Basra Oil Company (BOC).

(Source: Reuters)