Court rules Iraqi National Oil Company (INOC) Unconstitutional

By John Lee.

Iraq’s Federal Supreme Court has invalidated the Cabinet decision to set up the Iraqi National Oil Company (INOC).

According to a statement from the Court, Paragraphs 2 and 3 of Cabinet Decision No. 109 of 2020, and Decision No. 211 of 2021, are in breach of the constitution.

The full judgement, in Arabic, can be downloaded here, with Arabic summaries here, here and here.

A summary of the judgement in English, from the Court website, is shown below:

Federal Supreme Court Rules Invalidity of Paragraphs (2) and (3) of Cabinet Decision No. (109) of 2020 and the Decision (211) of 2021 and its repeal are related to the completion of the steps of establishing the National Oil Company and the assignment of [the Minister of Oil (Ihsan Abdul-Jabbar) to head it.]

   The Court shall consider:

1-    Whereas, public funds have inviolability following all the divine laws and affirmed that the Holy Quran in a number of its noble verses and Article (27 / 1st) of the Constitution stipulates that this and that their protection is the duty of every citizen, so all institutions and employees therein must maintain the sanctity of those funds and that the initiation of a lawsuit to protect them is consistent with what is stated in Article (20 / 1st) of the Bylaw of the Court, which obliges that the interest is a state, direct and influential in the legal status or Financial or social and because it is in the interest of the people to pay the damage caused to public funds and this is considered to be in their interest.

2-    To annul the number of essential articles of the National Oil Company Law No. (4) of 2018 cannot proceed with the formation of the company.

3-    The statement that articles of other laws should be replaced by articles that have been declared unconstitutional is contrary to the binding and consistent nature of the decisions of the Federal Supreme Court, and must take into account the will and competence of the legislator to legislate other articles to replace the articles that have been declared unconstitutional, and to say otherwise means that the legislative authority is deprived of a part of its constitutional competences.

Also, the Court shall consider:

1-    The failure to find ways to preserve public funds, which belong to all the people, by the bodies legally mandated to do so is a violation of the provisions of Article (27/1st) of the Constitution, and failure to achieve this leads to the absence of social justice and the absence of national belonging to the State.

2-    The failure to maintain public funds leads to the failure of the State to carry out its constitutional duties following the provisions of Articles (29-36) of the Constitution.

It also shall consider:

1-    The Constitution of the Republic of Iraq of 2005 is the result of the will of the people following the provisions of Article (144), which stipulates that (This Constitution shall come into force after the approval of the people thereon in a general referendum) and the constitution was not drafted for the benefit of any political party, sect or nationality, but was drafted for all Iraqis without discrimination.

2-    The purpose of organizing the federal authorities and all independent bodies is to abide by the Constitution in all its articles and not to depart from it, and that this obliges all federal authorities to work for the people and that non-compliance with the Constitution represents a departure from the will of the people.

(Source: Federal Supreme Court)

The post Court rules Iraqi National Oil Company (INOC) Unconstitutional first appeared on Iraq Business News.

Iraqi Oil Minister pushes Development of Eridu Oil Field

By John Lee.

Iraq’s Minister of Oil, Ihsan Abdul Jabbar Ismail, has stressed the importance of developing the Eridu (Arido) oilfield in Block 10, which is in the Muthanna and Dhi Qar provinces.

This came during a meeting with Lukoil‘s Vice President for Central Asia, Middle East, and North African affairs, Stepan Gorgi, and his accompanying delegation.

The Minister said that the ministry is awaiting the approval of the Council of Ministers of the joint development program for the field, commending the technical study of Lukoil.

He added the need to continue the development of West Qurna 2 field, and commended the cooperation between the Ministry and Lukoil to develop oil and energy sector.

The meeting was attended by the Senior Vice President of National Oil Company (INOC), Hamid Younis, the Director General of Petroleum Contracts and Licensing Directorate (PCLD), Ali Maarij. On the Russian side, the meeting was attended by Lukoil General Manager, Alexey Yakovlev, and the 10th block project manager, Edward Tcheloyansh, and vice manager of Iraq branch, manager of Lukoil reprentative office in Baghdad, Resan Sednavi.

(Source: Ministry of Oil)

The post Iraqi Oil Minister pushes Development of Eridu Oil Field first appeared on Iraq Business News.

Iraq Buys New Ships for Port Maintenance

By John Lee.

Iraq’s Ministry of Oil is increasing its in-house capacity to maintain its export terminals in southern Iraq, with the acquisition of new purpose-built ships.

The Executive Director of the Iraqi National Oil Company (INOC), Hamid Younis, said that Safwan (pictured) will arrive in the coming days. It has the capability to assist with maintenance of export facilities, in addition to fighting fires and generating electric power for emergency situations. Built by the Korean company ENM, it has an integrated diving system, and is particularly suited to the maintenance of single-point moorings (SPMs).

It joins the Abu Al-Fadl, which has already entered service, and which was designed for maintenance and treatment of oil spills in regional waters.

A third vessel, the Shanasheel, is hoped to enter service in March of next year. Larger than the other two, as it will carry out major maintenance works for the ports and can accommodate staff working in ports and loading platforms.

The acquisition by the Ministry and the  of these vessels is intended to reduced the costs currently paid to foreign companies.

(Source: Ministry of Oil)

The post Iraq Buys New Ships for Port Maintenance first appeared on Iraq Business News.

Iraq Planning Increased Oil Production in “Coming Years”

By John Lee.

The First Vice President of the Iraqi National Oil Company (INOC), Hamid Younis, has said that oil production in Iraq can be increased to 5-to-8 million barrels per day (bpd) “during the coming years.

He is quoted in a statement from the Iraqi Ministry of Oil, following a meeting that he chaired with officials from Iraqi oil companies to discuss plans to maintain and increase oil production and export.

The Director-General of the Iraqi Oil Exploration Company, Ali Jassim, said that the next phase will see remarkable activity in the exploration sector, including operations in the Western Desert and Nineveh Governorate.

(Source: Ministry of Oil)

The post Iraq Planning Increased Oil Production in “Coming Years” first appeared on Iraq Business News.

Pertamina to Increase Holding in West Qurna 1

By John Lee.

Pertamina, the Indonesian state-owned energy company, will reportedly buy an additional 10 percent stake in the West Qurna 1 oilfield from ExxonMobil.

The Deputy Director-General of the Basra Oil Company (BOC), Hassan Muhammad Hassan, told the official Iraqi News Agency (INA) that the agrreement, “is subject to the signing of the settlement agreement with the Basra Oil Company.

Pertamina previously had a 10 percent holding.

The Iraqi cabinet had previously agreed to allow BOC to take over ExxonMobil‘s holding in the field, at a price of “up to $350 million.”

(Source: INA)

The post Pertamina to Increase Holding in West Qurna 1 first appeared on Iraq Business News.

KRG Denies seizing control of Oil Fields

By John Lee.

The Kurdistan Regional Government (KRG) has denied seizing the Bai Hassan and Dawd Gurg oil fields in Kirkuk from the Iraqi federal government’s Ministry of Oil.

On Saturday, the North Oil Company (NOC), which is owned by the Iraqi National Oil Company (INOC), claimed that the KRG took over the fields in what it said was a contravention of Iraqi law.

The KRG has issued a statement saying the claims are, “completely untrue and are aimed at sowing discord.

Bai Hassan was originally controlled by the Ministry of Oil (Baghdad), but seized by KRG forces in July 2014. It was subsequently returned to Baghdad (NOC) control in 2017.

(Sources: NOC, KRG)

The post KRG Denies seizing control of Oil Fields first appeared on Iraq Business News.

Work Starts at $594m Oil Processing Plant at Block 9

By John Lee.

The President of  the Iraqi National Oil Company (INOC) has laid the foundation stone for the $594-million crude oil processing plant at Block 9, within the Al-Fayha Oil Field in Basra Province.

Ihsan Abdul-Jabbar Ismail said that the development is important for the production of light oil, with a target for this project of up to 100,000 barrels of crude oil per day, along with 135 mmscfd of gas at a future stage for electricity production.

Khaled Hamza, General Manager of Basra Oil Company (BOC), said the development of the field was started in 2014 by Kuwait Energy Company (KEC) and continued by the Chinese company UEG [United Energy Group] which acquired KEC, and that the first exploration well was drilled and the results were encouraging.

He stressed that the oil produced from the exploration Block 9 is one of the best types of oil globally.

The CEO of UEG, Sonk Yu [Song Yu, Chief Operation Officer??], said that laying the foundation stone for the development was an important moment for the company.

(Sources: Ministry of Oil, UEG)

The post Work Starts at $594m Oil Processing Plant at Block 9 first appeared on Iraq Business News.

French Oil Consultancy Wins Iraq Contract

By John Lee.

French-based petroleum consultancy Beicip Franlab has signed a deal to provide consultancy services to the Iraqi Oil Ministry’s Reservoirs & Fields Development Directorate.

The Minister of Oil and President of Iraqi National Oil Company (INOC), Ihsan Abdul-Jabbar Ismail, said that Franlab will give advice that can be used to develop the oil sector, stating that the contract will help the Ministry of Oil and the oil companies to make the right decisions to develop the oil reservoirs in the interest of the national economy and the development of the oil and gas industry in the country.

The French ambassador to Baghdad, Eric Chevalier, said the signing marks a new stage in the development of relations with Iraq in the field of oil, gas and energy.

The Representative of Beicip Franlab, Thierry Le Maux, said the deal will help extend the life of the oil and gas fields.

(Source: Ministry of Oil)

The post French Oil Consultancy Wins Iraq Contract first appeared on Iraq Business News.

CNOOC to Explore Offshore in Iraq

By John Lee.

The China National Offshore Oil Corporation (CNOOC) is to press ahead with oil exploration at a 530-km2 offshore block in Basra.

Originally agreed in 2019, the work had been delayed due to the COVID-19 pandemic.

In parallel, Iraq’s state-owned Oil Exploration Company (OEC) will carry out seismic surveys on the adjoining 120-km2 onshore area.

Following these studies, one exploratory well will be drilled onshore and one offshore.

The announcement was made following a workshop (pictured) to study plans for the development of marine blocks, organized by the Oil Exploration Company in cooperation with CNOOC.

(Source: Ministry of Oil)

The post CNOOC to Explore Offshore in Iraq first appeared on Iraq Business News.

China “the Only Winner” in this Huge Iraqi Oil Field

Writing in Oil Price, Simon Watkins that the recent approval of the Iraqi National Oil Company (INOC)‘s acquisition of ExxonMobil‘s 32.7 percent stake in the West Qurna 1 oil field is likely to leave China delighted, the U.S. irritated, and Iraq’s oil industry still unable to achieve any of its key oil output goals.

Click here to read the full article.

The post China “the Only Winner” in this Huge Iraqi Oil Field first appeared on Iraq Business News.