Lukoil paid over $60m to Iraqi Govt in 2020

By John Lee.

Russian oil company Lukoil has published details of its payments made during the financial year ended 31 December 2020 in favor of the government of Iraq:

  • The Dhi Qar Oil Company (DQOC) [Thiqar Oil Company] received 1,963 million Russian Rubles [$26.9 million] in respect of the Block 10 field;
  • The General Commission of Tax received 2,511 million Russian Rubles [$34.4 million] in respect of the West Qurna-2 field (pictured).

(Source: Lukoil)

The post Lukoil paid over $60m to Iraqi Govt in 2020 first appeared on Iraq Business News.

New Contracts for Iraqi Drilling Company (IDC)

By John Lee.

The Iraqi Drilling Company (IDC) has announced its intention to conclude contracts with Chinese and American companies operating in Iraq to drill and rehabilitate dozens of oil wells in the country.

The company indicated it is about to start drilling 20 wells in the Nasiriyah field in Dhi Qar, which are included in a long-term plan with the Dhi Qar Oil Company (DQOC) to advance the oil sector, due to be completed in over two years.

After the relative relaxation of the impacts of the coronavirus, the Iraqi Drilling Company resumed its negotiations with the international companies developing oil fields in the country and their counterparts affiliated with the Ministry of Oil in the provinces, in preparation for signing the postponed contracts with the aim of enhancing Iraq's energy capabilities.

The drilling and rehabilitation contracts, hoped to be concluded soon, include drilling 37 wells in the Zubair field for the Italian company ENI, the main operator of the field, and starting discussions with BP, the main contractor in the Rumaila field, to develop the giant field west of Basra.

This is in addition to the near signing of a contract to drill 43 wells in Majnoon field with the Basra Oil Company (BOC), which is the third largest oil field in the world, with reserves of 6.12 billion barrels.

The Iraqi Drilling Company has completed all its preparations to sign a contract with the Central Oil Company, to drill 27 wells in the East Baghdad field, and it continues its discussions with the Maysan [Missan] Oil Company (MOC) to sign a contract for drilling 22 wells in the Bazargan field as well as rehabilitating another 150 wells and a contract to operate a number of drilling towers and rehabilitation of a large number of wells in the Kirkuk fields with the North Oil Company (NOC).

(Source: Govt of Iraq)

The post New Contracts for Iraqi Drilling Company (IDC) first appeared on Iraq Business News.

Protesters Block Entrances to Oil Facilities

By John Lee.

Protesters have reportedly blocked the entrances to the Dhi Qar Oil Company (DQOC), Dhi Qar Refinery, and the Oil Products Distribution Company.

According to Anadolu Agency, they were protesting the passing of the 2021 budget by the Iraqi parliament, which did not meet their expectations regarding guaranteed employment.

More here.

(Source: Anadolu Agency)

The post Protesters Block Entrances to Oil Facilities first appeared on Iraq Business News.

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.

Cabinet to Support Projects in Health, Oil sectors

The Iraqi Cabinet held its regular weekly meeting in Baghdad on Tuesday under the chairmanship of Prime Minister Adil Abd Al-Mahdi.

The Prime Minister told the Cabinet that the current government will continue to discharge its  duties until the formation of the next Iraqi government.

The Prime Minister then outlined some of the key achievements of this government which will be detailed in a comprehensive report to be published soon.

The Cabinet discussed several policies and approved administrative measures to support projects in the health sector, including building general hospitals in Iraqi provinces with a capacity of 400 beds each.

The Cabinet approved recommendations submitted by the Ministerial Council for Energy to allow Dhi Qar Oil Company (DQOC) to borrow 265,000,000 US dollars from the Trade Bank of Iraq (TBI) for the purpose of implementing a project to expand the production at Al-Nasiriyah oil field by an additional 100,000 barrels per day.

(Source: Govt of Iraq)

Lukoil confirms Geological Model for Eridu Field

Russia’s Lukoil has successfully completed testing of the fourth well as part of Eridu field (Block 10) appraisal phase in the south of Iraq.

The testing resulted in the commercial flow of dry crude oil that proves the current geological model of Eridu field as effective. ​

Lukoil continues geological exploration at Block 10. For instance, the company plans to drill and test several appraisal wells and to complete 3D and 2D seismic surveys for Eridu field and the block’s southern and central parts, respectively.

Block 10, covering 5.8 thousand square kilometers, is located 150 kilometers west of Basra, 120 kilometers away from West Qurna-2 field.

Interests in the project: Lukoil – 60% (operator), Inpex Corporation (Japan) – 40%. The Iraqi party to the agreement is represented by the state-owned Dhi Qar Oil Company (DQOC).

(Source: Lukoil)

INOC takes over 9 State Oil Companies

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)

Iraq Invests to Boost Nasiriyah Oil Field

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has ordered the state-run Dhi Qar Oil Company (DQOC) and Iraq Drilling Company (IDC) to develop the Nasiriyah oil field in Dhi Qar province.

He said the Ministry has budgeted $140 million to raise production from the current 90,000 barrels per day (bpd) to 200,000 bpd within a year.

The field has estimated reserves of 4.4 billion barrels of oil.

It was originally offered as part of a larger project, known as the Nasiriyah Integrated Project (NIP), which would include the contruction of a 300,000 bpd refinery.

In January 2018, Iraq dropped the NIP, saying it will rely on a newly formed state oil company to develop the Nassiriya oil field, and leaving only the nearby refinery project for investors.

(Source: Ministry of Oil)

Chevron signs Contracts with Iraqi Oil Companies

By John Lee.

The US oil company Chevron has signed an agreement with Iraq’s Basra Oil Company (BOC) and Dhi Qar Oil Company (DQOC) to provide expertise and services, including seismic surveys, to the Iraqi companies.

Assim Jihad, Spokesman for the Ministry of Oil, said the Ministry aims to sign more memorandums of understanding with international companies to exchange experience and develop local capabilities in the oil and gas sector.

(Source: Ministry of Oil)

Baker Hughes to harness Flare Gas at Gharraf & Nassiriya

By John Lee.

Baker Hughes has signed a contract to harness 200 MMcf/d of natural gas from Iraq’s Nassiriya and Gharraf oil fields.

The Nassiriya field is operated by the state-run Dhi Qar Oil Company (DQOC) and currently producing around 70,000 barrels per day of crude oil, with a target of 150,000 bpd.

Gharraf is operated by Petronas and is producing around 88,000 bpd with a plateau production target of 250,000 bpd.

(Sources: Minister of Oil, Platts)