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SOMO Restarts Export of Kirkuk Oil via Turkey

By John Lee.

Baghdad has reached an agreement with Kurdish authorities to resume exports from the Kirkuk oilfields, via the Turkish port of Ceyhan (pictured).

In a statement on Friday, the Ministry of Oil said between 50,000 and 100,000 barrels per day would be exported through the pipeline on behalf of the Baghdad-controlled State Oil Marketing Organization (SOMO).

S&P Global Platts says SOMO has not exported any crude oil from Ceyhan since June 2017.

(Sources: Ministry of Oil, S&P Global Platts)

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Turkish FM meets New Iraqi Leadership, Discusses Oil

By Amberin Zaman for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

Turkish Foreign Minister Mevlut Cavusoglu (pictured) is due to travel to Iraq on Oct. 11 for a two-day official visit to the capital Baghdad and the Iraqi Kurdistan Region’s seat of government, Erbil.

Turkey’s Foreign Ministry said in a statement that Cavusoglu would be received by Iraq’s newly elected ethnic Kurdish President Barham Salih and that he would also meet with Iraqi political leaders and Turkmen representatives.

The trip, Cavusoglu’s first since August 2017, when he traveled to both capitals to lobby against the Iraqi Kurds’ ill fated independence referendum, is seen as an effort to re-assert Turkey’s heft in Iraq amid the receding fortunes of its local Sunni Arab allies.

Click here to read the full story.

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IOCs discuss Basra’s Oil and Gas Megaprojects

BP, Shell, Basra Gas Company, LUKOIL, Petronas and Chevron discuss Basra’s oil and gas megaprojects

The 5th annual CWC Basra Megaprojects Conference – Oil, Gas & Environment will be held from 9-10 October in Istanbul, Turkey chaired by the EU Ambassador to Baghdad, Ramon Blecau.

In a show of support for the rebuilding of Iraq, Ambassador Blecau and industry experts will highlight the business opportunities available in the resource-rich South of Iraq with the aim of driving more investment to develop the country’s industrial infrastructure.

The conference takes place under the patronage of Basra’s Governorate, Council and oil company and looks to find solutions to the challenges of Basra’s oil and gas megaprojects and increasing Iraq’s oil and gas production, as well as highlighting the upcoming infrastructure projects for: gas, water, electricity and environment. All the major operators will be participating in discussions including: BP, Shell, Basra Gas Company, LUKOIL, Petronas and Chevron.

Further to these discussions, there will be a strong focus on Iraq’s environment and how to build a legislative framework to tackle Basra’s environmental issues; tackling all types of challenges including the demining projects.

New technology will play a significant role in achieving operational excellence in the execution of Iraq’s projects; whilst Iraq’s new generation of workforce are eager to embrace the technologies, the conference will touch upon the training programmes that are imperative for helping Iraqis compete for job opportunities and increase the role of the Iraqi local workforce in the execution of the latest projects.

Water and desalination projects will be the centre of discussion on the second day of the conference as well as the electricity requirements for such projects and ideas for renewable projects in Iraq.

Gas and petrochemical projects will also be covered by industry experts, which will be instrumental in creating new jobs for Iraqis but raise further questions on how the environment can be preserved during these processes. During the conclusion of the Conference, all the available tenders for the new projects will be outlined.

The interactive networking sessions will be at the centre of the conference with great number of functions including the Gala Dinner at the end of the first day of the Conference. The achievements of individuals in environmental technology projects will also be celebrated at the Environmental Awards Ceremony, which will take place during the Gala Dinner with awards being given out by the Iraqi delegation.

We look forward to seeing everyone at the Intercontinental Istanbul from 9-10 of October. To download the latest programme, please visit www.cwcbasraoilgas.com/brochure-download/.

Distinguished Speakers to include:

  • Ambassador Ramon Blecua, Ambassador / Head of Delegation, Delegation of the European Union to Iraq
    • HE Kameran Ali Hassan    , Deputy Minister of Environment, Ministry of Environment, Federal Government of Iraq
    •       HE Asaad Abdulamir Abdulghafar Al – Idan    , Governor of Basra, Federal Government of Iraq
    •       HE Engineer Mohammed Al Tamimi    , First Deputy Governor of Basra, Governorate of Basra, Federal Government of Iraq
    •       Ihsan Abduljabbar Ismaael Al – Saade    , Director General of the Basra Oil Company, Ministry of Oil, Federal Government of Iraq
    •       HE Dara Reshid    , Deputy Minister, Deputy Head of Reconstruction Fund for Areas Affected by Terroristic Operations (REFAATO), Ministry of Construction, Housing & General Municipalities, Federal Government of Iraq
    •       HE Ali Dawai Lazem    , Governor of Maysan, Federal Government of Iraq
    •       Nafaa Abdulsada Ali Al-Hmidawi    , Director General of Training & Development Office, Ministry of Electricity, Federal Government of Iraq
    •       Mohammed Hashim    , Director General of Electricity Distribution, Ministry of Electricity, Federal Government of Iraq
  • MP Dr Jamal Abdul-Zahra Muhammadawi, Member of the Parliament Representing Basra, Federal Parliament of Iraq •                   Kevin J. Kveton, Ph.D.Director, Iraq Exploration & Business Development, Chevron  Europe, Eurasia & Middle East Exploration & Production
    •       Zaid Elyaseri    , Country Manager, BP Iraq
    •       Dr Mark Wharton    , Development & JV Manager Shell Iraq, Shell EP International Ltd.
    •       Abd Malik Jaffar    , Iraq Country Chairman, PETRONAS Carigali Iraq Holding B.V.
    •       Yaroslav Okulov    ,  Financial Director, LUKOIL Mid-East Ltd
    •       Dr Jaafar Oklany    , Commercial Director, Basrah Gas Company

View the full list of speakers here: http://www.cwcbasraoilgas.com/speaker/

The renowned Conference will address opportunities, projects and tenders in each one of these industries through its 2 day Strategic Programme. Attendees can expect the following topics to be discussed:

  • Current updates on Basra’s oil fields
  • Iraq’s Environment
  • Infrastructure for Upstream Oil & Gas Projects ( Technology Showcasing- upstream activities suppliers, pipelines suppliers, demining technologies, logistics suppliers, security suppliers ) & Training on the New Skillsets
  • Finance, Laws & Regulations & Procurement
  • Water Projects: Increasing Efficiency for the Oil & Gas Projects
  • Electricity Expansion & Renewables for the Oil & Gas Projects
  • Gas & Petrochemicals
  • Energy Tenders Announcements; Downstream, Midstream, Petrochemicals & Electricity projects

View the full programme here: www.cwcbasraoilgas.com/brochure-download/

(Source: CWC)

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Iraq Plans to take over Mansuriyah Gas Field

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) as ordered Iraq’s state-owned oil companies to devise an urgent plan to develop the Mansuriyah (Mansouriya) gas field, following what he described as the delay and the failure of foreign companies to start developing the field.

The field, in Diyala province, was awarded in the third licensing round in 2010 to a consortium of international oil companies consisting of: Turkey’s TPAO (37.5%), Iraq’s Oil Exploration Company (25%), Kuwait Energy (KEC) (22.5%), and the Korean Gas Corporation (Kogas) (15%).

It holds around 127 billion cubic metres of gas. They committed to produce 320 million standard cubic feet of gas a day for $7 per barrel of oil equivalent produced, the maximum the government would agree to pay.

(Source: Ministry of Oil)

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Turkish Firm wins Contract at Garraf

Turkish oil and gas services company Ergil has been awarded a design, engineering, fabrication, and testing contract by China Petroleum Engineering & Construction Corporation ( CPECC), for Petronas‘ Garraf oil field.

The company says it has completed designing, manufacturing and supplying of 12 units 320-bar high-pressure pig receivers and launchers, 28 units pig signallers, 12 units manual pig jib crane and 8 units pig trolley.

The field is owned by Petronas (45%), Japex (30%) and the North Oil Company (25%).

(Source: Ergil)

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“Iraq’s Energy Future Lies to the North”

By John Lee.

A new report from the Washington Institute for Near East Policy says that Iraqi hydrocarbons “will either be exploited by Iran and its allies or used for Iraq’s own benefit, transforming the country into an energy export hub between the Gulf states, Turkey, and Europe. The United States has a strong strategic interest in promoting the latter outcome.”

Authors James F. Jeffrey, a former US ambassador to Iraq and Turkey, and Michael Knights, who has worked extensively on energy projects inside Iraq, suggest that the US should put its weight behind a north-south energy corridor in which Iraq serves as an energy hub between ever-friendlier Gulf states and Turkey, ultimately forming an export bridge to Europe.

They add that Washington should also support the Basra-Haditha-Aqaba pipeline project to bring Iraqi oil and gas to Jordan.

The full paper can be read here.

(Source: The Washington Institute for Near East Policy)

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Baghdad keen to Restart Oil Exports through Turkey

By John Lee.

Iraqi Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] is to visit Turkey this week to discuss expanding cooperation in the oil and energy sector.

Among the topics for discussion will be the possible restarting of oil exports via the Turkish port of Ceyhan (pictured), and the export the Iraqi oil “by SOMO company exclusively”.

He will also invite Turkish companies to participate in investment projects in the oil sector.

(Source: Ministry of Oil)

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Turkey’s Optimistic Plans in Iraq seem to be Faltering

By Mahmut Bozarslan for Al Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The partnership Turkey, Iran and Iraq formed against the Kurdistan Regional Government (KRG) independence referendum in September has left Tehran pleased but left Ankara severely disappointed.

Ankara had two basic expectations about the partnership. First, Turkish officials believed that a new pipeline would be built to carry oil from Kirkuk, Iraq, to Turkey’s Ceyhan oil terminal, replacing a damaged line and bypassing the KRG. And second, as an alternative to the border crossing from Habur, Turkey, into Iraq — which provides lucrative income to the KRG — a new border crossing to Iraq would open at Ovacik in Turkey.

Ankara calculated that a crossing at Ovacik, at the junction of Iraqi-Syrian-Turkish borders, would:

  • Deprive the KRG of income from customs taxes.
  • Provide a shorter road connection between Tal Afar and Mosul, which features in Turkey’s “New Ottoman” dreams.
  • Strengthen relations with Turkmens and sever the connection between the Kurdistan Workers Party (PKK) at the Yazidi town of Sinjar and the Kurdish Rojava region in northern Syria.
  • Be linked to the main highway to Mosul with a 120-kilometer (75-mile) road upgraded to international standards and a new bridge to be built over the Tigris River.

But the Ovacik project has been shelved and an alternative pipeline plan — involving Iran — has emerged, marginalizing the proposed new pipeline to move oil from Kirkuk to Ceyhan.

For three years, the KRG sold oil from the Kirkuk-Ceyhan pipeline. But the central government in Baghdad took over the Kirkuk oil fields after the Kurds threatened in September to seek independence.

On Oct. 16, Baghdad implied that the Kirkuk oil would be sent out via Turkey as in the past. The pipeline had been used irregularly during the battle against the Islamic State (IS), and Baghdad cut off the flow completely after the September independence referendum. Turkey expected the flow to resume — but it hasn’t.

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Shaikan Crude Oil Sales Agreement Signed

Gulf Keystone Petroleum (GKP) has announced that a crude oil sales agreement has been signed between Gulf Keystone Petroleum International Ltd (“GKPI”), on behalf of the Shaikan contractors, and the Kurdistan Regional Government (KRG).

Under the agreement, the KRG will purchase Shaikan crude oil at the monthly average Dated Brent oil price minus a total of c.$22 per barrel for quality discount, as well as domestic and international transportation costs. This discount is based on the same variables contained within other oil sales agreements in the Kurdistan Region of Iraq. 

The majority of the Shaikan crude oil is currently being transported by truck from the Shaikan field to Fishkhabour, where it has been injected into the export pipeline to Turkey gradually since 15 November 2017, while the remainder is sold domestically. 

The agreement is effective from 1 October 2017 until 31 December 2018.  GKPI will now invoice the KRG for oil sales for the months from October 2017 onwards on the basis of the realised netback price and net entitlement volumes in accordance with the Shaikan Production Sharing Contract, as amended by the 1st PSC Amendment in 2010 (“Shaikan PSC”).

The Company continues its discussions with the KRG’s Ministry of Natural Resources (“MNR”) on the terms of a potential 2nd PSC Amendment.  The Company will inform the market of any material developments in this regard.

(Source: GKP)

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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)