Search Results | 'basra'

Basra Lab achieves ISO/IEC Accreditation

Basra Lab achieves ISO/IEC Accreditation

RSK’s combined geotechnical-chemical laboratory just outside Basra has achieved accreditation to ISO/IEC 17025:2005, the international standard for competence of testing laboratories.

The ISO/IEC 17025:2005 accreditation, which was awarded by the Gulf Cooperation Council Accreditation Centre, an accredited body of the International Laboratory Accreditation Cooperation (ILAC) in March 2015, specifies the general requirements required for a laboratory to be recognised as competent to international standards to collect samples and carry out tests using standard, non-standard and laboratory-developed methods.

The laboratory has been operational since May 2014 and works for multinational oil and gas companies and leading international consultants that previously relied on expensive and time-consuming movement of samples to laboratories outside the country.

Gary Emms, geotechnical laboratory manager in Iraq, explained:

All our management staff are taken from our UK laboratories and have many years’ experience of running high-volume, quality-driven laboratories in a market where reliability and flexibility are the keys to success.

“We follow rigorous quality control processes to ensure the integrity of our analytical results and clients’ needs entirely dictate our competitive turnaround times. For priority requests, almost anything is possible.

RSK is a fully integrated, environmental, health, safety and engineering services company employing over 1000 staff worldwide, and turnover in excess of $105 million (122 billion Iraqi dinars).

(Source: RSK)

Posted in Commodities & Mining, Construction & Engineering, Oil & Gas5 Comments

New Prices for Iraqi Oil, but Basra Heavy ‘Delayed’

New Prices for Iraqi Oil, but Basra Heavy ‘Delayed’

By John Lee.

Iraq’s State Oil Marketing Organisation (SOMO) has adjusted its official selling prices for its Basra and Kirkuk crude oil for May.

It has also issued separate prices for its new Basra Heavy grade, giving a significant discount to the more desireable Basra Light, but Reuters cites industry sources as saying that shipments of the new grade are likely to be delayed until June.

Platts reports that traders have still not been given detailed information about the quality of the new grade, specifically its density, sulfur content and product yield.

In common with some other countries, Iraq’s oil is priced relative to regional benchmark prices:

  • For shipments to US, contracts are priced are relative to the Argus Sour Crude Index (ASCI);
  • Shipments to Europe are priced relative to the North Sea Spot BFOE (Brent benchmark); and
  • Asian shipmentas are priced relative to the Dubai-Oman crude benchmark, published by Platts, the energy-information division of McGraw-Hill.

The new prices to Europe are as follows:

  • Basra Light to Europe will sell at a discount of $5.00 a barrel to Dated Brent, up from a discount of $5.20 last month.
  • Basra Heavy to Europe will sell at a discount of $8.45 a barrel to Dated Brent.
  • Kirkuk Crude to Europe will sell at a discount of $4.70 a barrel to Dated Brent, compared to a discount of $4.80 previously.

And to the US:

  • Basrah Light will sell at a discount of $0.15 to the U.S. benchmark, a reduction on last month.
  • Basrah Heavy will sell at a discount of $1.40 to the U.S. benchmark.
  • Kirkuk will sell at a premium of $0.85, up from last month.

To Asia:

  • Basrah Light to Asia will sell at a discount of $2.80 to the benchmark, unchanged from last month.
  • Basrah Heavy to Asia will sell at a discount of $6.85 to the benchmark.

(Sources: Bloomberg, Reuters, Platts)

(Oil image via Shutterstock)

Posted in Oil & Gas6 Comments

Splitting Basra Crude “Makes Sense”

Splitting Basra Crude “Makes Sense”

By John Lee.

Reuters reports that Iraq’s plan to split its Basra crude into ‘heavy’ and ‘light’ grades from May should reduce quality issues dogging its exports, but adds that there will be challenges getting the price it wants and setting up the required infrastructure.

An official at the state-run South Oil Company (SOC), who declined to be named, said that Iraq was planning to ship an average of 350,000 bpd of Basra Heavy grade, equating to about 13 percent of the current export volume of 2.6-2.7 million bpd.

Most of the heavy crude would come from the Missan oilfields.

The State Oil Marketing Organization (SOMO) is expected to announce an official selling price (OSP) for Basra Heavy on Sunday when it releases May prices.

(Source: Reuters)

Posted in Oil & Gas0 Comments

Basra “Takes Further Steps Toward Independence”

Basra “Takes Further Steps Toward Independence”

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Kurdistan of the South? Basra Takes Further Steps Toward Independence Inside Iraq

Those who believe that the resource-rich province of Basra would be better off as a semi-autonomus region say the time is right to make this change. Others say any such project will endanger Iraq just when the country needs unity most.

The next few months will be crucial for one of Iraq’s most resource-rich provinces. For some time now there have been calls to make the southern province of Basra a region – that is, it would become more independent from the federal government in Baghdad in a similar way to Iraqi Kurdistan.

“We have noticed that this idea is more widely accepted by social and tribal leaders who were against the plan in the past,” says politician, judge and legal expert, Wael Abdul-Latif, a former governor of Basra who’s been campaigning for more independence for the province since 2008. “We have started to collect the votes of those who support the creation of a region of Basra. After this we will submit a request to the Independent High Electoral Commission.”

Now volunteers say they’ve already collected enough signatures to put forward a request to make Basra a region – and they say that they’ll submit the proposal in mid-April.

To establish a region Article 119 of the Iraqi Constitution says certain steps must be taken – this involves either a tenth of all eligible voters in the province supporting the idea or one third of the provincial council members submitting the request. After this Iraq’s Parliament decides whether to go ahead with turning a province into a more independent region with a vote.

And Basra has long been a candidate for this. In fact, the first request for regionalisation was submitted in 1921. “The rationale behind the petition was based on the economic and social characteristics of Basra, such as its having a seaport and economic vibrancy,” website Al Monitor reports.

Posted in Oil & Gas, Politics, Security0 Comments

MHPS to Refurbish Power Station in Basra

MHPS to Refurbish Power Station in Basra

Mitsubishi Hitachi Power Systems (MHPS) has received an order from the Ministry of Electricity (MOE) of Iraq for refurbishment of Unit 4 (output: 200 megawatts) at the Hartha Thermal Power Station.

The refurbishment work, scheduled for completion in May 2017, requires large-scale replacement of core components of the plant’s seriously degraded power generation facilities. The project is being financed through a Japanese ODA (Overseas Development Assistance) loan extended to the Government of the Republic of Iraq.

The Hartha Thermal Power Station, which incorporates both gas- and oil-fired units, is located in the city of Basra in Iraq’s south. The original power generation equipment was supplied by Mitsubishi Heavy Industries, Ltd. (MHI) in 1980, and for more than three decades it has played a vital role in providing power to the Basra region.

But after three wars the original facilities had sustained partial damage as well as gradual degradation, so that today Unit 4 is operating at only some 40 percent of its rated capacity. The newly ordered refurbishment work will restore the unit to its original rated output as a way of contribution to Iraq’s recovery.

The rehabilitation project will consist of replacing Unit 4’s core equipment – boilers, steam turbines and generators – plus introducing a state-of-the-art distributed control system (DCS).

These improvements will significantly enhance the plant’s reliability. Installation and other work at the site will be performed by GAMA Power Systems Engineering and Contracting, Inc., an engineering firm headquartered in Turkey.

Besides MHI’s earlier involvement in the Hartha Thermal Power Plant, Hitachi, Ltd. – MHI’s partner in the integration of thermal power generation systems business that resulted in MHPS’s founding – also has a long track record in Iraq, having taken part in refurbishment projects for MOE at thermal power stations in Taji, Al-Musaib and Mosul.

Through the newly ordered refurbishment work at the Hartha Thermal Power Plant, MHPS will make a further contribution to restoring Iraq’s domestic power supply capability. Going forward, MHPS will continue to cooperate in achieving stable power supplies and enhancing generating efficiency, as a way of contribution to Iraq’s economic and social recovery.

(Source: Mitsubishi Hitachi Power Systems)

Posted in Construction & Engineering5 Comments

Tanker Backlog Builds at Basra Port

Tanker Backlog Builds at Basra Port

By John Lee.

A backlog of over 30 oil tankers, two-thirds of them supertankers (VLCC), has built up outside Basra post, and shippers face delays of up to three weeks because of bad weather and possible oil quality issues, according to a report from Reuters.

Shipping industry sources said the problems could delay or limit the number of oil export cargoes from Basra in April.

The quality of Basra crude is variable, with one broker saying that at least one recent cargo was “not useable because it wasn’t the right grade,” but sources in Iraq denied this.

Iraq intends to split its oil shipments into heavy and light grades from May.

(Source: Reuters)

(Tanker image via Shutterstock)

Posted in Security8 Comments

Iraq to Sell Heavy Basra Crude from May

Iraq to Sell Heavy Basra Crude from May

By John Lee.

Reuters cites sources as saying that Basra Heavy crude, with an API gravity of 24 degrees, will be sold from May.

It will be allocated to companies with technical service contracts, such as Lukoil , Petronas, CNPC, CNOOC, BP, ExxonMobil and Shell.

The State Oil Marketing Organization (SOMO) had previously abandoned plans to split its oil shipments into heavy and light grades due to logistical problems.

(Source: Reuters)

Posted in Oil & Gas0 Comments

India Builds Oil Reserves with Basra Crude

India Builds Oil Reserves with Basra Crude

By John Lee.

India’s oil ministry has instructed state refiners Indian Oil Corp and Hindustan Petroleum Corp (HPCL) to buy eight million barrels of Basra crude oil for delivery in May and June.

The country is looking to build up its strategic petroleum reserve (SPR) at the current low market prices.

A source told Reuters that Basra oil suits the refineries on India’s east coast, adding that Iraq is “struggling to find buyers due to the deteriorating quality of Basra crude.

The State Oil Marketing Organization (SOMO) is to offer both ‘light’ and ‘heavy’ grades of Basra crude from May.

(Source: IBT)

(India image via Shutterstock)

Posted in Oil & Gas0 Comments

IBN Newsletter 'FREE Weekly Subscription'