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Russian Oil Firm to Finance Nassiriyah Development

By John Lee.

The Dhi Qar Oil Company (DQOC) has reportedly said that Litasco, the international marketing and trading company of Russia’s LUKOIL, will finance the doubling of capacity at the Nassiriyah oil field from 100,000 barrels per day (bpd) t0 200,000 bpd.

The project includes a 42-kilometer pipeline, and will be a joint venture between the State Company for Oil Projects (SCOP) and Italy’s Progetti.

(Source: Shafaq)

The post Russian Oil Firm to Finance Nassiriyah Development first appeared on Iraq Business News.

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Gazprom Neft developing Fourth Well at Sarqala

By John Lee.

Russia’s Gazprom Neft has produced its four-millionth tonne (32-millionth barrel) of oil since starting commercial development of the Sarqala field in the Kurdistan Region of Iraq (KRI).

Three wells are now in operation at this field, with daily production running at about 3,100 tonnes (24,000 barrels) per day.

Limitations arising under the COVID-19 pandemic notwithstanding, Gazprom Neft Middle East B.V. is continuing to develop this field and is implementing a number of key production projects, including drilling a fourth well, the commissioning of which will increase production to 4,100 (around 32,000 barrels) per day. The commissioning of this well is scheduled for the first half of 2021.

Gazprom Neft Middle East B.V. is involved in this project with the Government of the KRI as part of the latter’s development of the region’s energy supply system. Associated petroleum gas (APG) produced at the Sarqala field will be used as fuel for energy facilities currently under development by government authorities.

This programme envisages the construction of a 4.5-kilometre gas pipeline to connect the field to power generation facilities. Implementing this project will not only increase APG utilisation at the field, but will also facilitate energy supplies to several districts within the KRI.

(Source: Gazprom Neft)

The post Gazprom Neft developing Fourth Well at Sarqala first appeared on Iraq Business News.

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Mansuriya Gas Contract “Cancelled”; Russia “Extremely Interested”

By John Lee.

Iraq has reportedly cancelled a contract to develop its Mansuriya gas field near the Iranian border.

Iraq Business News understands that, under a deal agreed in 2010, the field was being developed by Turkish Petroleum (TPAO) (37.5%), Iraqi Oil Exploration Company (25%), Kuwait Energy (KEC) (22.5%), and Kogas (15%).

According to Reuters, the consortium halted development in 2014 due to security concerns after the so-called Islamic State group overran large parts of Iraq.

Writing in Oil Price, Simon Watkins says “Russia has again made it clear that it is extremely interested in taking over the development contract of Iraq’s Mansuriya gas field following the recent termination of the contract with a consortium led by Turkey’s state-owned TPAO.”

More here and here.

(Sources: Reuters, Oil Price)

The post Mansuriya Gas Contract “Cancelled”; Russia “Extremely Interested” first appeared on Iraq Business News.

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Lukoil and Iraqi PM discuss Cooperation

The Prime Minister of Iraq, Mustafa Al-Kadhimi, and Iraqi Oil Minister Ihsan Abdul Jabbar Ismail, received a delegation from LUKOIL on Monday, headed by its President Vagit Alekperov (pictured).

The meeting was also attended by the Russian Ambassador Maxim Maximov.

The parties discussed the progress of the West Qurna-2 project and Eridu field (Block-10), as well as prospects for cooperation in other areas in Iraq.

Prime Minister praised LUKOIL’s operations in the Republic and spoke in favor of expanding cooperation and coordination between LUKOIL and the Iraqi Oil Ministry.

(Source: Lukoil)

The post Lukoil and Iraqi PM discuss Cooperation first appeared on Iraq Business News.

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Russia Considers Major Investment in Iraqi Gas Field

From Middle East Monitor, under a Creative Commons licence. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

The Russian Ambassador to Iraq, Maxim Maksimov [Maximov] (pictured), said that Russia is seeking to invest heavily in Al-Mansouriya gas field, in the Diyala governorate.

Maksimov said in a press statement yesterday that “Russian companies are willing to mobilise significant funds and have submitted an investment tender for Al-Mansouriya gas field in Diyala.“

 He added that “three Russian companies in Iraq produce about 600,000 barrels of oil per day, including Gazprom, which operates in the Badra oil field in Wasit Governorate with a production capacity of 100,000 barrels of oil per day, in addition to 400,000 barrels in the [West Qurna 2] field.“

The Russian ambassador stated that his country is paying special attention to the Russian-Iraqi Commission.

Moscow has assigned its deputy prime minister to head the Russian delegation, in preparation for a very important meeting between the two sides, which was postponed due to the coronavirus crisis.

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Coronavirus causes Staffing Problems for Lukoil in Iraq

By John Lee.

Lukoil is reportedly having difficulties staffing its operations in Iraq due to coronavirus and associated restrictions.

Interfax cited chief executive Vagit Alekperov (pictured) was quoted as saying that the company has a problem with replacing shift workers, adding, “We are reaching deals with people to keep them on for shifts that are 60 days long or more.“

The Russian-based company operates the West Qurna 2 oilfield in Basra, one of the world’s largest fields.

(Source: Reuters)

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Jiyad: Oil Market Collapse Damages the Iraqi Economy

By Ahmed Mousa Jiyad.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Oil Market Collapse, Damages the Iraqi Economy and Changes Oil Geopolitics

The collapse of the global oil market is undoubtedly unprecedented in its timing, magnitude, spread and devastating impacts across the globe. A strange and unpredicted association of a few, but major, factors had contributed to the current threat, causing much uncertainty and vulnerability on national and global levels.

The revised “OPEC+” production cut agreed on 12 April prompted initial minor improvement in oil price, but there remains very many serious concerns that such reduction is much below what is needed to bring stability to and balances a saturated global oil market.

This article aims at estimating the collapse in oil market on Iraq first then on both Russia and Saudi Arabia, as they are accused for “OPEC+” failure early last March that ignited the oil price war, and assesses the geopolitical and political economy consideration that contributed to and further complicate the impasse.  The article provides a summary of two articles written and published in Arabic recently and an update on recent deliberation by “OPEC+” and G20 Energy Ministers to rescue the situation and bring some stability to global oil market under  existing threat of Coronavirus to the world biosecurity.

My two articles attempt to provide comparative assessment of the impact of the collapse with particular focus on short-term horizon, i.e., the remaining nine months of this year under different Brent oil price scenarios on Iraq, first article , while the second focuses on Russia and Saudi Arabia.

Click here to download the full report in pdf format.

Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad’s biography here.

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Gazprom “Not Reducing Investment” in Iraqi Kurdistan

By John Lee.

Russia’s Gazprom Neft has reportedly said it will not reduce investment in its projects in Iraqi Kurdistan, despite a request from the Kurdistan Regional Government (KRG) to do so.

Reuters reports that following a slump in oil prices, oil producers have been asked to reduce their investments, which governments often have to partially reimburse as part of their contractual arrangements.

Gazprom Neft holds a participating interest of 40 percent in the Garmian block and 80 percent in the Halabja and Shakal blocks. The Sarqala field is located within the Garmian block.

More here.

(Source: Ekurd, Reuters)

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KRG to Investigate Alleged $250m payment from Rosneft?

By John Lee.

The Prime Minister of the Kurdistan Regional Government (KRG), Masrour Barzani, has reportedly called for the public prosecutor to launch an investigation into allegations that Russian state oil company Rosneft paid $250 million to a consultant to secure deals in Iraqi Kurdistan.

Earlier this month, Bloomberg claimed that the oil company paid the money an unknown individual in 2017 and 2018 to become the dominant foreign player in the Kurdish oil industry.

More here.

(Source: Ekurd)