US Consul says Existing KRG Oil Contracts must be respected

By John Lee.

The US's newly-appointed Consul General in Erbil has said that existing contracts between international oil companies (IOCs) and the Kurdistan Regional Government (KRG) must be respected.

Consul Irvin Hicks Jr. made the comment following a meeting with the KRG's Minister of Natural Resources, Kamal Muhammed Salih, on Wednesday.

In a statement issued on the consulate's Facebook page, the Consul said:

"We support the KRG's dialogue with the Government of Iraq on hydrocarbons and agree existing oil contracts must be respected."

Baghdad has challenged the legitimacy of the KRG's oil contracts.

(Source: US Consulate in Erbil)

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Three Contractors “Quit” Khor Mor Field

By John Lee.

Three companies have reportedly stopped operations at Kurdistan's Khor Mor gas field following rocket attacks.

According to Reuters, the companies are Texas-based Exterran, and Turkish subcontractors Havatek and Biltek.

The field is operated by Pearl Petroleum, a consortium led by UAE-based Dana Gas and Crescent Petroleum.

More here.

(Source: Reuters)

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Vinson and Elkins to advise Iraq on Arbitration with Turkey

By John Lee.

Iraq's Ministry of Oil has engaged the Texas-based law firm Vinson and Elkins as a legal advisor in the US.

Partner James Lloyd Loftis will meet with representatives of the Department of State, at their request, regarding a pending arbitration proceeding between Iraq and the Republic of Turkey.

The Ministry will pay Mr Loftus a fee of $900 per hour for his advice in this matter.

During the period beginning 60 days prior to the date of the registrant's obligation to register under US's Foreign Agents Registration Act (FARA), the firm received more than $2.1 million from the Ministry for non-registrable legal services.

The firm has advised Baghdad on other matters in the past.

(Source: FARA)

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Baker Hughes wins Four-Year Contract in Missan

By John Lee.

Baker Hughes has said its oilfield services (OFS) division has secured a four-year contract to provide artificial lift solutions for the Missan [Maysan] oilield in Iraq.

In a statement announcing its results for the second quarter of 2022, the US-based company said the contract includes the supply of electrical submersible pumps (ESP), surface equipment and dedicated field services.

The ESPs will be utilized to maximize oil recovery and extend system run-life in harsh environments, it added.

The company, which also has contracts at the Nasiriyah and Garraf [Gharraf] oil fields, recently committed to pulling out of operations in Iraqi Kurdistan, following the Federal Supreme Court ruling that oil contracts signed with the Kurdistan Regional Government (KRG) are unconstitutional.

(Source: Baker Hughes)

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IDC completes two Drilling Projects in Iraq

By John Lee.

The Iraqi Drilling Company (IDC) has recently completed the drilling of oil well 48 at the Nasiriyah oil field.

The company's general manager, Engineer Basem Abdel Karim Nasser, said this was part of the contract with Dhi Qar Oil Company (DQOC) to drill 20 oil wells at the field in cooperation with US-based Weatherford.

Drilling operations were carried out over 18 months using the IDC 44 drilling rig.

IDC has also recently completed the drilling of oil well J120P in the Al-Gharraf field, which reached a depth of 3,037 meters.

Nasser said this was the thirteenth well drilled as part of the contract with the Malaysian Petronas company to drill 28 directional oil wells in the Al-Gharraf oil field in Dhi Qar Governorate.

The work was carried out using the IDC 54 drilling rig (pictured), which has a power of 2000 HP.

The company owns 43 drilling and reclamation rigs distributed in the Iraqi oil fields.

(Source: Ministry of Oil)

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Deep Data: GCC Electricity and Iraq’s Reliance on Iran

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Deep Data: GCC Electricity and Iraq's Reliance on Iran

In connection with the recent Arab summit in Jeddah, Iraq and Saudi Arabia are forging ahead with efforts to connect their electricity grids.

The plan revolves around a new power line between the two neighbors with a capacity of 1 gigawatt (GW). Separately, Iraq and the Gulf Interconnection Authority (GCCIA) are advancing a scheme to power southern Iraq.

While Iraq has long been under pressure from the US and some Arab states to reduce reliance on energy imports from Iran, informed sources in Baghdad characterize the shifts underway as a win-win for all sides-pointing to burgeoning domestic demand in Iran, and the possibilities offered by a new regional electricity market.

The full report can be viewed here (registration required).

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KBR to help develop Iraq’s Ratawi Field

By John Lee.

US-based contractor KBR is to carry out the design work for Iraq's Ratawi (aka Artawi) Central Complex development.

The work is part of the Ratawi gas-field project in Basra, which is being carried out by the South Gas Company (SGC) in cooperation with France's TotalEnergies.

KBR's involvement was confirmed in a statement from the Ministry of Oil today (Wednesday), following a meeting in Paris between Iraq's Minister of Oil, Ihsan Abdul-Jabbar Ismail, and Chairman and CEO of TotalEnergies, Patrick Pouyanne.

(Source: Ministry of Oil)

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Three Oilfield Services Companies to Leave Kurdistan

By John Lee.

The Iraqi Ministry of Oil has confirmed reports that three major US-based oilfield services companies have informed the Ministry that they will refrain from entering into new projects Iraqi Kurdistan.

It says that Schlumberger, Baker Hughes and Halliburton have made the commitment to comply with the Federal Supreme Court ruling that oil contracts signed with the Kurdistan Regional Government (KRG) are unconstitutional.

The ministry adds that the companies are now in the process of winding up and terminating their existing tenders and contracts in the Kurdistan Region of Iraq.

(Source: Ministry of Oil)

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The KRG Turns Thirty: The Future of US-Kurdish Relations (Part III)

By James Jeffrey, Matthew Amitrano and Bilal Wahab for the Washington Institute for Near East Policy. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

The KRG Turns Thirty: The Future of U.S.-Kurdish Relations in Iraq

Three experts evaluate the KRG's oil and gas industry and discuss the growing urgency of resolving its disputes with Baghdad.

Click here to see the full article and video.

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The Necessary US Role in Fixing Baghdad-Kurdistan Energy Dispute

By Michael Knights, for the Washington Institute for Near East Policy. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

The Necessary U.S. Role in Fixing the Baghdad-Kurdistan Energy Dispute

On February 15, 2022, Iraq's Federal Supreme Court ruled that the 2007 oil and gas law for the Kurdistan Region was unconstitutional, requiring a review of numerous production sharing contracts and oil sales agreements.

If the case prevents oil exports via Iraqi Kurdistan, then the world market will almost immediately lose 500,000 barrels per day, triggering higher oil prices, expanded windfalls for Russia and Iran, the collapse of Iraqi Kurdistan's economy, and a dangerous turn in Baghdad's ties with Erbil and with Ankara.

In this timely Policy Note, Iraq expert Michael Knights calls for the United States to act with other concerned states to resolve the Baghdad-Erbil energy crisis. In doing so, he categorizes the sub-issues of FSC implementation on a spectrum from higher to lower consensus, and explains both sides' views in an unvarnished, direct manner.

A targeted intervention by the United States and its partners, the author argues, could guide the dispute toward a long-overdue resolution that greatly aids U.S. interests and the global effort to find a substitute for Russian and Iranian oil and gas.

Click here to read the full report.

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