Irish-based Petrel Resources has said it is “re-establishing its Baghdad operations”.
In its interim statement for the six months ended 30 June 2018, the company said:
“As we approach the end of 2018, Iraq is fitfully emerging from conflict, and again open for responsible business. Baghdad has re-established its authority, by defeating Da’ech insurgents and recovering Kirkuk.
“Pro-business parties won the 2018 elections. While it proved difficult to form a National Government in 2018, which contributed to turbulent protests in southern Iraq during 2018, prospects are now more encouraging than at any time since 2010.
“Iraq has endured an almost continuous period of conflicts and/or sanctions since 1980, from which it is only now emerging. Much trauma has been inflicted, as shown by the difficulties forming a government in 2018 and the protests in southern Iraq – a region generally supportive of Baghdad governments since 2005.
“Yet, despite 2018 difficulties, we believe Iraq is finally turning a corner: pro-business parties open to international investment polled well in the May 2018 general election. But no one party holds a majority and, as of September 2018, negotiations on new government formation were ongoing.
“So far, the impact of this unrest on oil production from the southern fields has been limited, with August 2018 output stable at 4.65 million barrels daily (mmbod). Internal demand of 0.8 mmbod leaves nearly 3.8 mmbod available for export – which has remained consistent despite infrastructural and decision-making challenges – though well below the 2008 target of 6.5 mmbod and the 2012 target of 8.5 mmbod. Iraqi output is actually higher than immediately before the November 2016 OPEC + Russia cuts, and also higher than its current official OPEC quota of 4.444 mmbod.
“The Western Desert, where Petrel has an interest in exploration ground, is still impossible for international companies to effectively operate.”
(Source: Petrel Resources)