Posted on

Iran-Iraq Oil Swap Delayed over Safety Concerns

By John Lee.

A plan to export Iraqi crude oil by truck to Iran has reportedly been postponed due to security concerns.

Under the oil-swap agreement, Iraq was to export 60,000 bpd of crude oil by truck from Kirkuk to Iran’s Kermanshah refinery (pictured), and ship back refined Iranian oil for southern Iraq.

Hamid Hosseini, the Iranian secretary-general of the Iran-Iraq Chamber of Commerce, said Iran does not have X-ray machines to scan the trucks coming from Iraq, adding that Iran is in talks with Iraq to use their X-ray facilities.

(Sources: Xinhua, Rudaw)

Posted on

Iraq to start 60,000 bpd Oil Swap with Iran

By John Lee.

Iraq says it plans to start oil exports to Iran from its northern Kirkuk oilfields next week, under the swap deal announced last month.

Iraq will export 60,000 bpd of crude oil by truck from Kirkuk to Iran’s Kermanshah refinery (pictured), and ship back refined Iranian oil for southern Iraq.

For the time being, tanker trucks will be used for the shipment but Iran and Iraq also plan to build a pipeline to carry the oil from Kirkuk.

(Source: Press TV)

Posted on

Pipeline Network to cover all of Iraq

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has reportedly said that Iraq plans to build a network of pipelines to transport oil products throughout the country, as an alternative to expensive and hazardous road transport.

Reuters quotes him as saying that the network will be part of a strategic plan that includes pipelines to deliver both crude oil and oil products to neighbouring countries.

Earlier this month Iraq announced plans to build a crude-oil pipeline to Iran.

(Source: Reuters)

Posted on

Iraq’s Fifth Licensing Round

By Alessandro Bacci.

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

The Ministry of Oil has repeatedly said that it would like to renegotiate the terms of its service contracts with the international oil companies (IOCs) to link the fees the companies receive for developing the fields to the oil prices and to have them share the burden when oil prices decrease.

However, discussions between the federal government and the IOCs have been going on for the past two years with no tangible results until now. Companies affirm that they have submitted some recommendations, but then the process has not moved on.

At this point, it seems that to have a successful fifth licensing round, the federal government must produce in the coming months a new model contract (or at least an amended version of the present technical service contracts) capable of satisfying according to different price levels both the government and the IOCs.

Otherwise, it’s difficult for Iraq to reach the production target of 6 million bpd of crude oil by 2020, especially if other neighboring countries might soon offer better contractual terms.

Please click here to download the full report.

Alessandro Bacci is an independent energy consultant in relation to business strategy and corporate diplomacy (policy, government, and public affairs). Much of his activity is linked to the MENA region, an area where he lived for four years. Alessandro is now based in London, United Kingdom (www.alessandrobacci.com). A multilingual professional, Alessandro holds a Bachelor of Laws and Master of Laws from the University of Florence (Italy), a Master in Public Affairs from Sciences Po (France), and a Master in Public Policy from the Lee Kuan Yew School of Public Policy (Singapore).    

Posted on

Iraq’s Fifth Licensing Round

By Alessandro Bacci.

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

The Ministry of Oil has repeatedly said that it would like to renegotiate the terms of its service contracts with the international oil companies (IOCs) to link the fees the companies receive for developing the fields to the oil prices and to have them share the burden when oil prices decrease.

However, discussions between the federal government and the IOCs have been going on for the past two years with no tangible results until now. Companies affirm that they have submitted some recommendations, but then the process has not moved on.

At this point, it seems that to have a successful fifth licensing round, the federal government must produce in the coming months a new model contract (or at least an amended version of the present technical service contracts) capable of satisfying according to different price levels both the government and the IOCs.

Otherwise, it’s difficult for Iraq to reach the production target of 6 million bpd of crude oil by 2020, especially if other neighboring countries might soon offer better contractual terms.

Please click here to download the full report.

Alessandro Bacci is an independent energy consultant in relation to business strategy and corporate diplomacy (policy, government, and public affairs). Much of his activity is linked to the MENA region, an area where he lived for four years. Alessandro is now based in London, United Kingdom (www.alessandrobacci.com). A multilingual professional, Alessandro holds a Bachelor of Laws and Master of Laws from the University of Florence (Italy), a Master in Public Affairs from Sciences Po (France), and a Master in Public Policy from the Lee Kuan Yew School of Public Policy (Singapore).    

Posted on

Iraqi, Turkish Investors eye Iranian Petrol Stations

By John Lee.

Private investors from Iraq and Turkey have reportedly held preliminary negotiations with Iran to expand and modernize its fuel stations.

According to a report from Petrol Plaza, there are 3,600 fuel stations and 2,400 compressed natural gas (CNG) stations in Iran which need renovation and investment.

To date, more than 250 state-controlled fuel stations have been privatized in the country.

(Source: Petrol Plaza)

(Picture credit: Asadi S)

Posted on

Tehran, Baghdad sign One-Year Oil Swap Deal

Iraqi Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] said on Sunday that a deal signed with Tehran to swap up to 60,000 barrels per day of crude produced from the northern Iraqi Kirkuk oilfield for Iranian oil is for one year.

“This is an agreement for one year and then we will see after that whether to renew it,” Luaibi told reporters in Kuwait City on the sidelines of an Arab oil ministerial meeting, Reuters reported.

The agreement signed on Friday by the two OPEC countries provides for Iran to deliver to Iraq’s southern ports “oil of the same characteristics and in the same quantities” as those it would receive from Kirkuk.

The deal in effect allows Iraq to resume sales of Kirkuk crude, which have been halted since Iraqi forces took back control of the fields from the Kurds in October.

Between 30,000 and 60,000 bpd of Kirkuk crude will be delivered by tanker trucks to the border area of Kermanshah, where Iran has a refinery.

The two countries are planning to build a pipeline to carry the oil from Kirkuk, so as to avoid trucking the crude.

The pipeline could replace the existing export route from Kirkuk via Turkey and the Mediterranean by pipeline.

(Sources: Tasnim, under Creative Commons licence; Iraqi Ministry of Oil)

Posted on

Iran to Boost Gas Exports to Iraq

A top Iranian energy official unveiled plans for a rise in natural gas exports to neighboring Iraq next year.

In an interview with Tasnim on Saturday, Managing Director of the National Iranian Gas Company (NIGC) Hamid Reza Araqi said the country’s exports of natural gas to Iraq will increase during the spring and summer of 2018.

Iran’s gas exports to Iraq, which now stand at 14 million cubic meters a day, are planned to reach the maximum capacity within three years, he added.

On June 22, at the beginning of summer, Iran started to export natural gas to Iraq after years of negotiations and settlement of financial problems.

Iran’s daily gas exports to Iraq are to reach 35 million cubic meters at the final stage.

Tehran and Baghdad signed a deal on the exports of natural gas from the giant South Pars Gas Field in 2013.

Under the deal, the Iranian gas is delivered to Sadr, Baghdad and al-Mansouryah power plants in Iraq through a 270-kilometer pipeline.

(Source: Tasnim, under Creative Commons licence)

Posted on

New Oil & Gas Blocks to be offered

By John Lee.

Iraq has invited international oil companies (IOCs) to bid for contracts to explore and develop nine new oil and gas blocks.

The blocks are along the borders with Iran and Kuwait, with one located in the territorial waters.

According to Reuters, the bidding terms will be finalised by the end of May, with bids to be opened on 21st June 21, 2018.

The terms are expected to be different from previous service contracts, which remunerate companies regardless of oil prices fluctuations.

(Sources: Ministry of Oil, Reuters)

Posted on

Video: Tremor hits Iraq-Iran Border, Hundreds Killed

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

Rescue teams have been deployed to the regions struck by Sunday’s 7.3 magnitude earthquake on the Iran-Iraq border; initial assessments are that some eight Iranian villages have been affected.

At least 207 people have died so far, with an estimated 1800 others injured.

Rescue teams have been deployed towards the epicentre, 30km southwest of the Iraqi town of Halabjah.

Al Jazeera‘s Charlotte Bellis reports: