Cursor International executes projects and collaboration activities across several industries.
By John Lee.
DNO, the Norwegian oil and gas operator with significant operations in Iraqi Kurdistan, has released its 2021 Social Corporate Responsibility Report.
Click here to download the full report.
(Source: DNO)
The post DNO publishes Corporate Social Responsibility (CSR) Report first appeared on Iraq Business News.
By Al Monitor staff. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.
Iraq agrees to provide Lebanon with fuel for another year
Lebanon’s fuel crisis is showing no signs of letting up, but an exchange with Iraq is keeping one source flowing.
Click here to read the full article.
The post Iraq to provide Lebanon with Fuel for Another Year first appeared on Iraq Business News.
From Rudaw. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.
Iraqi economic capital engulfed in trash, suffers from dilapidated electricity
Home to Iraq’s richest oil wells, Basra should have wealth and development to rival the Emirates.
Instead, the southern province is one of Iraq’s most impoverished – its residents deprived of even the most basic services and infrastructure.
Click here to read the full article.
The post Iraq’s Economic Capital “engulfed in Trash” first appeared on Iraq Business News.
DNO ASA, the Norwegian oil and gas operator, today reported strong second quarter operational and financial results powered by high oil and gas prices and by solid production in its operated flagship Kurdistan Tawke license.
Spurred by quarterly revenue of USD 361 million and free cash flow of USD 167 million, the Company reduced debt and exited the quarter in a positive net cash position for the first time since 2018.
“DNO is committed to put its capital to work in its core competency and capture new opportunities created as peers and even some of the largest European companies scale back spending and focus instead on harvesting,” said Executive Chairman Bijan Mossavar-Rahmani. “We believe in the oil and gas business and in our responsibility to all stakeholders, including host governments who want to capitalize on current prices and consumers who now call for more production, not less,” he added.
Operational cash flow totaled USD 341 million, including USD 50 million towards arrears built up by Kurdistan from non-payment of certain 2019 and 2020 Tawke invoices. These arrears, which stood at USD 259 million at yearend 2020, were reduced to USD 87 million as of 30 June 2022, excluding interest.
The Company’s operational spend in the second quarter totaled USD 198 million in line with the USD 800 million projection for the year. During the quarter, operational spend of USD 81 million in Kurdistan was divided between the Tawke license (USD 66 million) and the Baeshiqa license (USD 15 million); operational spend in the North Sea stood at USD 117 million.
Operating profit dropped to USD 81 million from USD 236 million in the previous quarter due to asset impairments of USD 127 million primarily related to the Ula area in the North Sea and expensed exploration of USD 48 million.
The Company reduced its interest-bearing debt through a USD 200 million bond redemption and exited the quarter with cash deposits of USD 801 million. With USD 671 million in bond and reserves-based lending debt, net cash stood at USD 129 million.
Gross production at the Tawke license averaged 106,900 barrels of oil per day (bopd) during the second quarter, of which Peshkabir contributed 62,300 bopd and Tawke 44,600 bopd, the latter representing the first quarterly production increase since 2015 at this legacy field as new wells are drilled, workovers conducted on existing ones and gas injection continued.
Of total Kurdistan production, 80,400 bopd were net to DNO’s interest. North Sea net production averaged 11,600 barrels of oil equivalent per day (boepd), bringing the Company’s total quarterly net production to 92,000 boepd.
In the second quarter, four new production wells were brought onstream in the Tawke license with three at Tawke and one at Peshkabir. Together with wells drilled in the first quarter, natural field decline has been arrested and reversed, including at Tawke, raising the Company’s full-year projection to 107,000-109,000 bopd.
Following government approvals, DNO commenced trucking of production in mid-June from the Zartik-1 discovery well in the operated Baeshiqa license for export at an average rate of 600 bopd. Production from the well has been choked back as the Company targets zones with lower gas-to-oil ratios to avoid flaring. Development of the license continues with the drilling of Zartik-2 and Zartik-3, to be followed by Baeshiqa-3 in the fourth quarter.
In the North Sea, operated Brasse field development progressed into front end engineering and design ahead of planned project sanction by yearend 2022. The Company remains an active North Sea explorer with three more exploration wells to be drilled this year in addition to the four already drilled in the first half of 2022, one of which, Kveikje (DNO 29 percent), is considered a likely commercial discovery, as previously reported.
Key figures
| Q2 2022 | Q1 2022 | Full Year 2021 | |
| Gross operated production (boepd) | 107,178 | 106,465 | 108,713 |
| Net production (boepd) | 91,937 | 92,548 | 94,477 |
| Revenues (USD million) | 361 | 339 | 1,004 |
| Operating profit/-loss (USD million) | 81 | 236 | 321 |
| Net profit/-loss (USD million) | 72 | 140 | 204 |
| Free cash flow (USD million) | 167 | 152 | 362 |
| Net debt (USD million) | -129 | 27 | 153 |
(Source: DNO)
The post DNO Raises Kurdistan Output Forecast first appeared on Iraq Business News.
Genel Energy notes that DNO ASA, as operator of the Tawke PSC (Genel 25% working interest), has today issued an update on licence activity.
Gross production at the Tawke licence averaged 106,900 bopd during the second quarter, of which Peshkabir contributed 62,300 bopd and Tawke 44,600 bopd, the latter representing the first quarterly production increase since 2015 at this legacy field as new wells are drilled, workovers conducted on existing ones and gas injection continued.
In the second quarter, four new production wells were brought onstream on the Tawke licence with three at Tawke and one at Peshkabir. Together with wells drilled in the first quarter, natural field decline has been arrested and reversed, including at Tawke, raising DNO’s full-year projection to 107,000-109,000 bopd (previously 105,000 bopd).
Genel’s production guidance for 2022 is unchanged, with net portfolio production currently expected to be between 30-31,000 bopd for the full-year.
(Source: Genel Energy)
The post Tawke Oilfield: First Quarterly Production Increase since 2015 first appeared on Iraq Business News.
Dana Gas PJSC has announced its financial results for the half year ended 30 June 2022.
In the first six months of the year, the Company generated a net profit of AED 407 million ($111mm) or 5.8 fils per share, an 82% increase compared to an adjusted net profit (excluding reversal of impairment) of AED 225 million ($61mm) in H 1 2021.
The gains in Dana Gas’s profitability in the first half were driven by elevated hydrocarbon prices, the Company’s continued commitment to maintaining a low-cost base and strong operational performance in the Kurdistan Region of Iraq (KRI).
The Company’s revenue for the first six months of the year increased 31% to AED 1,041 million ($284mm) as compared to AED 792 million ($216mm) in H1 2021 and its operating costs dropped 16%. The Company’s realized prices during the first half of the year averaged $87/bbl for condensate and $44/boe for LPG compared to $48/bbl and $32/boe respectively in H1 2021.
Despite the challenging security situation, the Company’s current operations in the KRI have continued uninterrupted. Production from the KRI increased 1% in the first half and the KM250 expansion project has progressed well. During the first half, drilling of the project’s first development well was completed, and drilling operations for the second well are currently in progress. Whilst EPC construction work on KM 250 was suspended in June amid heightened security concerns, the Company is working with the authorities to address security concerns and to resume construction.
Given the strong operational and financial performance the Board expects to maintain its semi-annual dividend payment in keeping with the Company’s dividend policy. The interim dividend will be decided by the Board at its meeting in September.
Dr Patrick Allman-Ward (pictured), CEO of Dana Gas, commented:
“Dana Gas delivered strong half year results, supported by our robust operational performance, low cost base and favourable energy market conditions. Despite an increased uncertainty around the global economy amid high inflation, the outlook for the remainder of 2022 is still encouraging with both energy prices and demand remaining high.”
Operations & Production
The Group’s overall production in H1 2022 was 61,100 boepd, a 5% reduction from 64,000 boepd in H1 2021. This was due to a 9% production drop in Egypt mainly as a result of natural field decline. Production output in the KRI increased by 1%, with production averaging 34,500 boepd in H1 2022 versus 34,300 in H1 2021.
Operations have continued as normal during the period. Heightened uncertainty in the region and subsequent precautionary security measures have impacted the Khor Mor expansion project. As a result, the KM250 project remains on temporary suspension. The Company and its partners are working closely with the KRG to address all concerns and all parties remain committed to implementing the expansion project and resume construction activities as soon as possible.
Liquidity and Collections
The Company’s cash position at the end of H1 2022 stands AED 759 million ($207mm) including AED 436 million ($119mm) held at the Pearl level.
The Group collected a total of AED 660 million ($180 mm) during the H1 2022, with the KRI and Egypt contributing AED 495 million ($135mm) and AED 165 million ($45mm) respectively.
(Source: Dana Gas)
The post Dana Gas: “Strong Operational and Financial Performance” first appeared on Iraq Business News.
Writing in Oil Price, Simon Watkins argues that any hopes held by international oil companies (IOCs) that the Baghdad-based Federal Government was just bluffing about blacklisting IOCs operating in the Iraqi Kurdistan have been dashed.
Click here to read the full article.
The post “Hopes Dashed” for Int’l Oil Companies in Iraqi Kurdistan first appeared on Iraq Business News.
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.
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.
By John Lee.
Iraq’s Ministry of Oil has announced preliminary oil exports for July of 102,385,049 barrels, giving an average for the month of 3.303 million barrels per day (bpd), down from the 3.373 million bpd exported in June.
The exports from the oilfields in central and southern Iraq amounted to approximately 99,965,094 barrels, while exports from the Kirkuk fields through the port of Ceyhan amounted to 2,344,536 barrels.
While not explicitly stated by the Ministry, these figures seem to imply that exports by road to Jordan totalled 75,419 barrels for the month.
Revenues for the month were $10.608 billion, at an average price of $103.60 per barrel.
June’s export figures can be found here.
(Source: Ministry of Oil)
The post Iraq Decreases Oil Exports in July first appeared on Iraq Business News.