DNO announces Ramp-Up of Oil Production in Iraq

DNO ASA, the Norwegian oil and gas operator, today reported receipt of USD 54.0 million net to the Company from the Kurdistan Regional Government (KRG), of which USD 35.2 million represents DNO's entitlement share of February 2021 crude oil deliveries to the export market from the Tawke license in Kurdistan.

Of the balance, USD 4.6 million is an override payment equivalent to three percent of gross February 2021 Tawke license revenues under the August 2017 receivables settlement agreement and USD 14.2 million is a payment towards the Company's arrears relating to withheld payment of Tawke license 2019 and 2020 entitlement and override invoices.

Following receipt of the latest arrears payment, the outstanding balance has dropped from USD 259.0 million at the end of 2020 to USD 238.6 million.

DNO operates and has a 75 percent stake in the Tawke license, which contains the Tawke and Peshkabir fields, with partner Genel Energy plc holding the balance.

With resumption of payments, the partners have stepped up drilling of new wells at Peshkabir and workovers of existing wells at Tawke in 2021, raising gross operated license production from an average of 110,300 barrels of oil per day (bopd) in 2020 to 110,900 bopd in January, 112,000 bopd in February, 113,100 bopd in March and 115,500 bopd month-to-date in April.

(Source: DNO)

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Iraq Oil Exports slightly Down in March

By John Lee.

Iraq's Ministry of Oil has announced preliminary oil exports for March of 91,311,929 barrels, giving an average for the month of 2.946 million barrels per day (bpd), down slightly from the 2.960 million bpd exported in February.

These exports from the oilfields in central and southern Iraq amounted to approximately 88,240,184 barrels, while exports from Kirkuk amounted to 3,071,745 barrels.

Revenues for the month were $5.783 billion at an average price of $63.329 per barrel.

February's export figures can be found here.

(Source: Ministry of Oil)

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Iraq Finalises Oil Exports for February

By John Lee.

Iraq's Ministry of Oil has announced finalised oil exports for February of 82,877,757 barrels, giving an average for the month of 2.960 million barrels per day (bpd), up from the 2.868 million bpd exported in January.

These exports from the oilfields in central and southern Iraq amounted to approximately 79,105,329 barrels, while exports from Kirkuk amounted to 3,727,428 barrels.

Revenues for the month were $5.013 billion at an average price of $60.487 per barrel.

January's export figures can be found here.

(Source: Ministry of Oil)

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Iraq Oil Exports Rise in February

By John Lee.

Iraq's Ministry of Oil has announced initial oil exports for February of 82,877,757 barrels, giving an average for the month of 2.960 million barrels per day (bpd), up from the 2.868 million bpd exported in January.

These exports from the oilfields in central and southern Iraq amounted to approximately 79,105,329 barrels, while exports from Kirkuk amounted to 3,727,428 barrels.

Revenues for the month were $5.027 billion at an average price of $60.330 per barrel.

January's export figures can be found here.

(Source: Ministry of Oil)

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Iraq “Pauses Oil Pre-Payment deal with China”

By John Lee.

Iraq has reportedly "put on hold" it oil contract with China's Zhenhua Oil.

The multi-billion-dollar agreement would have seen Zhenhua pre-pay Iraq's State Oil Marketing Organization (SOMO) for a regular supply of crude oil.

Oil prices have risen significantly since the deal was struck.

More here.

(Source: S&P Global)

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Video: Where has Iraq’s Oil Wealth gone?

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

Decades of plundering: Where has Iraq's oil wealth gone?

Ranked as the fourth-biggest oil producer in the world, many would assume that Iraq has the financial resources to weather the pandemic.

But that is not the case - its fragile economy is struggling to cope and it may turn to the International Monetary Fund for assistance.

It has already devalued its currency by almost a fifth, enabling it to eke out more dinars for dollars. Ahmed Tabaqchali, the chief investment officer of AFC Iraq Fund, helps explain where all of Iraq's money goes:

The post Video: Where has Iraq's Oil Wealth gone? first appeared on Iraq Business News.

Oil Exports Slightly Up for January

By John Lee.

Iraq's Ministry of Oil has announced initial oil exports for January of 88,922,697 barrels, giving an average for the month of 2.868 million barrels per day (bpd), up from the 2.846 million bpd exported in December.

These exports from the oilfields in central and southern Iraq amounted to approximately 85,870,503 barrels, while exports from Kirkuk amounted to 3,052,194 barrels.

Revenues for the month were $4.739 billion at an average price of $53.294 per barrel.

December's export figures can be found here.

(Source: Ministry of Oil)

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KRG to Resume Override Payments to Genel

By John Lee.

Genel Energy has received notice from the Kurdistan Regional Government ('KRG') that override payments, whereby Genel receives 4.5% of monthly Tawke gross field revenues, will resume with the January 2021 invoice, to be paid in February 2021. Assuming the prevailing oil price, this translates into over $5 million of additional cash proceeds on a monthly basis.

This is consistent with the communication received from the KRG as announced on 17 April, which stated that the override payments would be suspended for at least nine months, and also that in a scenario where the oil price recovers to c.$50/bbl, a review of the situation would take place immediately in respect of the outstanding receivable.

In line with this communication, the KRG has now also submitted a reconciliation model for repayment of the receivable relating to amounts owed for invoices for oil sales from November 2019 to February 2020 and the suspended override from March to December 2020. We will work through this submission and update the market when appropriate, as further discussions with the KRG take place.

(Source: Genel Energy)

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China “Set to Bail Out Iraq” with Oil Deal

By John Lee.

Iraq is reportedly poised to sign a multibillion-dollar contract with China's ZhenHua Oil, in what Bloomberg describes as a bailout from Beijing.

Under the deal, Iraq's cash-strapped government which will receive money upfront in exchange for long-term oil supplies.

Click here to read the full article.

(Source: Bloomberg)

The post China "Set to Bail Out Iraq" with Oil Deal first appeared on Iraq Business News.

Iraq Increases Oil Exports in Oct

By John Lee.

Iraq's Ministry of Oil has announced initial oil exports for September of 89,153,899 barrels, giving an average for the month of 2.876 million barrels per day (bpd), up from the 2.613 million bpd exported in September.

These exports from the oilfields in central and southern Iraq amounted to approximately 86,000,000 barrels, while exports from Kirkuk amounted to 2,867,637 barrels. Exports to Jordan were 263,058 barrels.

Revenues for the month were $3.431 billion at an average price of $38.48 per barrel.

September's export figures can be found here.

(Source: Ministry of Oil)

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