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)

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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)

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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)

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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)

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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)

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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.

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Iraq to buy Exxon stake in West Qurna 1

By John Lee.

The Iraqi cabinet has agreed to allow the Basra Oil Company (BOC) to take over ExxonMobil's holding in the West Qurna 1 oilfield, at a price of up to $350 million.

Addressing media after Wednesday's cabinet meeting, Minister of Communications Arkan Al-Shaibani (pictured) said the cabinet also allocated an initial payment of $250 million "according to the acquisition amount to cover the Basra Oil Company's share in the work program and the budget for the year 2022 according to new developments provided that ExxonMobil relinquishes its litigation against the Basra Oil Company at the International Court of Arbitration."

Note that other media list the acquiring entity as the Iraqi National Oil Company (INOC).

(Sources: Govt of Iraq, Reuters, S&P Global Platts)

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INOC to Negotiate with Chevron to Develop Dhi Qar Oil Fields

By John Lee.

The Iraqi Cabinet has authorised the Iraqi National Oil Company (INOC) to negotiate directly with US oil company Chevron to develop four oil fields in Dhi Qar Governorate.

According to a statement from the Ministry of Oil, the fields constitute the Nasiriyah block, which has a target output of 600,000 barrels of crude oil per day (bpd) over a seven-year period.

The announcement follows last month's approval by Iraq's Ministerial Energy Council for discussions to go ahead.

Chevron currently has interests in the Sarta and Qara Dagh blocks in Iraqi Kurdistan.

(Source: Ministry of Oil)

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INOC to be Partner in TotalEnergies Basra Projects

By John Lee.

The Iraqi cabinet has approved a plan for the newly-formed Iraqi National Oil Company (INOC) to be a financial partner with TotalEnergies in its projects in Basra.

It said it will support INOC to "maximize revenues and financial returns to the general budget."

In September, TotalEnergies signed a number of major agreements covering several projects in the Basra region, designed to enhance the development of Iraq's natural resources to improve the country's electricity supply.

These agreements include:

  • The construction of a new gas gathering network and treatment units to supply the local power stations, with TotalEnergies also bringing its expertise to optimize the oil and gas production of the Ratawi field, by building and operating new capacities.
  • The construction of a large-scale seawater treatment unit to increase water injection capacities in southern Iraq fields without increasing water withdrawals as the country is currently facing a water-stress situation. This water injection is required to maintain pressure in several fields and as such will help optimizing the production of the natural resources in the Basra region.
  • The construction and operation of a photovoltaic power plant with a capacity of 1 GWp to supply electricity to the grid in the Basra region.

(Source: Govt of Iraq)

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Sonangol meets with INOC to discuss Production at Qayara

By John Lee.

The President of the Iraqi National Oil Company (INOC), Oil Minister Ihsan Abdul-Jabbar Ismail, has chaired a meeting with the CEO and management of Angola's Sonangol, the main operator of the Qayara [Qayyarah] oil field in Nineveh Governorate.

Also joining the meeting was the management of the North Oil Company (NOC) and the Department of Oil Contracts and Licensing.

The meeting included discussion on increasing production and improving quality at Qayara.

(Source: Ministry of Oil)

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