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Lukoil signs Contract for Exploration at Block 10

Russia’s Lukoil has signed contracts with the state-owned Iraqi Oil Exploration Company to carry out seismic surveys at the Eridu field in Block 10, and also at Block 10’s southern and central parts, previously not part of the survey.

The scope of appraisal works at Eridu field includes a 3D seismic survey of 983 square kilometers to update the extension of the field and its geological structure.

At Block 10, 2D seismic acquisition of the southern and central parts is planned to be accomplished over an area of 3,500 linear kilometers to ensure the mapping of targets for prospect drilling.

The approved geological exploration plan for Eridu field envisages the drilling of additional appraisal wells on a mid-term horizon.​

Block 10, covering 5,600 square kilometers, is located in the governorates of Dhi Qar and Muthanna, 120 kilometers west of Basra. The interests in the project are: Lukoil – 60% (operator), Inpex Corporation (Japan) – 40%.

The Iraqi party to the agreement is represented by the state-owned South Oil Company (SOC).

The drilling of the first exploration well, Eridu-1, in February of 2017 led to the discovery of a major oilfield. Preliminary data indicate it is the most significant discovery in Iraq for the past 20 years.

The drilling of the second and third wells confirmed the field’s earlier assumed geological model.Block 10, covering 5,600 square kilometers, is located in the governorates of Dhi Qar and Muthanna, 120 kilometers west of Basra.

(Source: Lukoil)

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Japanese Company considers Gas Pipeline and Petchem Plant

By John Lee.

Iraq has reportedly contracted Japan’s Toyo Engineering to help build a gas pipeline to Kuwait and a petrochemical plant as Baghdad.

According to a report from Reuters, the move will help Iraq to reduce flaring and finish paying the reparations owed to Kuwait for the invasion in 1990.

The project would allow Kuwait to reduce its dependency on Qatar as a supplier of gas; deliveries could begin as early as 2019.

It would also deal a blow to Shell, which aimed to be the dominant gas player in Iraq before relations with Baghdad soured following it’s planned exit from the Majnoon oil project.

Toyo told Reuters that talks are ongoing and a final decision has not yet been made.

(Source: Reuters)

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National Contingency Plan to Tackle Oil Spills

Iraqi Government to Launch a National Contingency Plan to Tackle Oil Spill Incidents

On 22 and 23 October 2017, Ministry of Oil, Ministry of Health and Environment and Ministry of Transport had discussions with the team of Japan International Cooperation Agency (JICA) in Basra to finalize Iraqi National Oil Spill Contingency Plan (NOSCP) in order to tackle large oil spill accidents both in inland and marine areas.

This comprehensive contingency plan has been formulated, with technical cooperation of JICA, for protecting or minimizing the environmental and social impacts resulted by the oil spill incidents and for satisfying requirements of related international conventions, the regional agreements in the Gulf region, as well as domestic laws and regulations.

The plan systematically integrates individual plans for oil spill response, which were prepared by production sites and regions, in line with a newly-formed national-level policy and strategy. The risk assessments, responsibilities of relevant organizations, commanding and coordinating mechanisms, necessary resources and standard procedures of rapid and effective responses are also incorporated.

Spill of oil and spread of hazardous wastes can harm people’s health and safety, and pollute environment of sea, rivers, land and wetlands. They could also cause not only direct damage to oil businesses like crude oil production and export or oil refinery operations but serious impact on agriculture and port operations.  Iraq, one of the largest oil producing countries in the globe, has many oil fields, related facilities and extensive pipeline networks in inland as well as in coastal areas.

Its gradual increase of oil production and related activities has raised environmental and economic risks of oil spill accidents of the country, which has environmentally-sensitive inland water system, wetlands and marine eco-systems. While coping with potential risks of oil spills caused by facilities’ defects, operational failure and accidents, Iraqi Government has developed this first integrated plan of national countermeasures against possible oil spill incidents.

The cooperation to the formulation of the NOSCP is a part of the two-year project of JICA’s technical cooperation. The project also provided trainings and drills in Japan, Iran and Jordan for officials of Iraqi relevant ministries in order to strengthen their capacities in planning and actual responses on site. The Marine Environment Mutual Aid Centre (MEMAC), a Bahrain-based international organization with eight member countries in the region, contributed to the training programs as well.

(Source: JICA)

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Iraq to Invest in Joint Oil Projects with Iran

Iraqi Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) has said an agreement will soon be signed with Iran to jointly invest in two oil fields shared between the two countries.

Last month, Iraq’s Ambassador to Tehran, Rajih al-Mussawi, said his country was considering a plan to cooperate with Iran to develop the Azadegan oil field which the two sides share.

According ot PressTV, Iran discovered the Azadegan field in 1999 in what was the country’s biggest oil find in decades.  It is believed to be connected with Iraq’s supergiant Majnoon oil field.

Japan’s Inpex was contracted to develop the Azadegan project, but later quit in an apparent reaction to US sanctions against Iran.

Shell is reportedly trying to quit the Majnoon project, but has also submitted its technical study plan to Iranian authorities to develop the Azadegan and Yadavaran oil fields.

(Source: PressTV)