By John Lee.
Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has transferred ownership of nine state-owned oil companies from the Ministry of Oil to the newly-created Iraqi National Oil Company (INOC).
The Minister is also the President of INOC.
The companies transferred to INOC ownership are:
- Iraqi Oil Exploration Company
- Iraqi Drilling Company (IDC)
- State Oil Marketing Organization (SOMO)
- North Oil Company (NOC)
- Midland (Middle) Oil Company
- Basra Oil Company (BOC)
- Dhi Qar Oil Company (DQOC)
- Missan Oil Company (MCO)
- Iraqi Oil Tankers Company (IOTC)
IBN Expert Blogger Ahmed Mousa Jiyad has described the new company as “dysfunctional, unconstitutional and disintegrative“.
(Source: Ministry of Oil)
By John Lee.
The Ministry of Oil has announced that BP has signed a contract to develop the Kirkuk oil fields.
According to Reuters, the deal with the North Oil Company (NOC) will see BP will boost output capacity from the six fields in the Kirkuk region to more than 1 million barrels of oil per day (bpd), three times current capacity.
In the past, BP has provided technical assistance to help develop the Kirkuk fields.
(Sources: Ministry of Oil, Reuters)
Turkish oil and gas services company Ergil has been awarded a design, engineering, fabrication, and testing contract by China Petroleum Engineering & Construction Corporation ( CPECC), for Petronas‘ Garraf oil field.
The company says it has completed designing, manufacturing and supplying of 12 units 320-bar high-pressure pig receivers and launchers, 28 units pig signallers, 12 units manual pig jib crane and 8 units pig trolley.
The field is owned by Petronas (45%), Japex (30%) and the North Oil Company (25%).
By John Lee.
The Iraqi parliament has reportedly banned Erbil-based Kar Group from operating oil fields in Kirkuk.
According to Rudaw, it assigned the state-owned North Oil Company (NOC) to take over oil production in the province and export it through Iraq’s State Oil Marketing Organisation (SOMO).
Reuters reports that Kar Group had been operating some of the Kirkuk oilfields since Kurdish Peshmerga forces took control of the city in 2014, following the retreat of the Iraqi army in the face of so-called Islamic State (IS, ISIS, ISIL, Daesh).
It is said to have failed to reach agreement with Baghdad after Iraqi forces re-took the area.
The Kurdish Regional Government (KRG) claims that the Khurmala field, part of the Kirkuk oilfields, is located inside its boundaries.
(Sources: Rudaw, Reuters)
By John Lee.
Iraqi Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) has asked UK-based BP to develop the disputed Kirkuk oilfields.
The move comes just a day after Baghdad regained control of the area from Kurdish forces. Control of the field remains split between the Kurdistan Regional Government (KRG) and Baghdad’s North Oil Company (NOC).
According to the Financial Times, BP’s chief executive Bob Dudley said before lunchtime yesterday that he had not yet heard from the Iraqi oil minister, but indicated the company could be interested.
(Sources: Ministry of Oil, Financial Times)
By John Lee.
Iraq is reportedly considering using security forces to prevent Kurdistan from blocking oil output from Kirkuk.
A spokesman for the North Oil Company (NOC) told Reuters that Kurdish officials indicated that they would shut down production at the Kirkuk oilfield, ostensibly for security reasons, but as a means of putting pressure on Baghdad.
Kirkuk produces around 200,000 barrels per day, out of total Kurdish production of over 600,000 bpd.
More from Reuters here.
Federal forces in control of large areas of Kirkuk city; further Kurdish withdrawals in Nineveh/Diyala
Over the course of October 16, Iraqi federal forces advanced into many parts of Kirkuk city and adjacent military and energy facilities. The Counter-Terrorism Service (CTS), supported by the Iraqi Army and Federal Police took control of the K1 military base, the governor’s palace, the Kirkuk Provincial Council headquarters, the North Oil Company and North Gas Company headquarters, the Kirkuk Regional Air Base, and key areas of Kirkuk city and road junctions.
While Popular Mobilization Units (PMU) took part in operations in rural areas, they were not deployed into the Kirkuk city area. Local Kurdish forces aligned with the Patriotic Union of Kurdistan (PUK) offered minimal resistance as federal forces moved into the area, many media reports have focused on an agreement in place between the PUK leadership and Baghdad for an orderly transfer of the facilities listed.
As a result, Baghdad is now in control of the portions of PUK-controlled Kirkuk that it held prior to the 2014 military collapse. Government forces were also reported to have moved into the oil fields of Dibis district that have been held by forces loyal to the Kurdistan Democratic Party (KDP) since 2014. These fields produce 275,000 barrels of oil per day, or nearly half the 620,000-barrel output of the Kurdistan Regional Government (KRG).
Some media reports claimed that thousands of Kurdish civilians have fled Kirkuk city and its surrounding area. Other reports claimed that crowds of ethnic Turkmen who opposed Kurdish control of the city celebrated on the streets of Kirkuk. The US has not opposed Baghdad’s return to Kirkuk in part because the move was framed in terms of restoring the status quo before the Islamic State (IS) crisis. This theme has been echoed by the majority of the international community.
Separate unconfirmed reporting has indicated that Sinjar, 100km west of Mosul in Nineveh province, is now under the control of ISF/PMU forces following the withdrawal of Peshmerga forces from the town. Reporting on October 16 had indicated a build-up of government forces to the south and east of Sinjar.
Reporting last night indicated that talks were underway for a peaceful handover. Yazidi elements of the region’s majority Shia PMU forces had apparently stated their unwillingness to confront Peshmerga owing to the close ties between the groups. Reports from Diyala province have also claimed that Kurdish forces have withdrawn from positions in the Mandali district northeast of Baquba as Iraqi federal forces entered Khanaqin district to the south of Mandali.
By John Lee.
Iraqi armed forces have reportedly captured the headquarters for the North Oil Company (NOC), northwest of Kirkuk, from Kurdish forces, without fighting.
A Kirkuk-based official told Reuters that the Baghdad’s forces had also taken control of the K1 airbase and were deploying in the Baba Gurgur field and the North Oil refinery.
Read more here.