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Dragon Oil CEO Ali Al Jarwan

Production to Increase at Al Faihaa Oilfield

By John Lee.

Oil production in the Al Faihaa area (Block 9) in Basra is reportedly expected to increase in the coming year with increasing investment.

Dragon Oil CEO Ali Al Jarwan told Oil & Gas Middle East that the company plans to increase production in Iraq to 100,000 barrels per day (bpd) by 2025.

(Source: Oil & Gas Middle East)

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Abby Badawi, Chief Executive Officer of Kuwait Energy

Kuwait Energy signs Block 9 Farm-out Agreement

Kuwait Energy Signs Block 9, Iraq Farm-out Agreement with Dragon Oil

Kuwait Energy (KEC) has announced the signing of the Block 9, Iraq Farm-out Agreement with Dragon Oil (a wholly-owned subsidiary of Emirates National Oil Company Ltd, the national oil company of Dubai).

As per the Farm-out Agreement, Kuwait Energy will assign a 15% participating interest in the Block 9, Iraq service contract comprised of 8.57% participating interest in Block 9, Iraq to Dragon Oil in consideration for US$100 million in cash; and 6.43% participating interest in Block 9, Iraq to Dragon Oil in settlement of a dispute with Dragon Oil in relation to a non-controlling interest in Block 9, Iraq.

The agreement was signed on 11 February 2018 by Ali Rashid al Jarwan, Dragon Oil Chief Executive Officer (CEO); and Abby Badwi, the CEO of Kuwait Energy.

Abby Badawi (pictured), Chief Executive Officer of Kuwait Energy, said:

This is a great moment for Kuwait Energy and Dragon Oil. The extension of our Block 9 partnership with Dragon Oil has meant that both Companies can work as equal equity partners on the concession allowing us to best utilise our joint technical expertise in delivering the submission of the Block 9 full field development plan to the Iraqi government.

“The reduction in future Block 9 capital expenditure exposure coupled with the material cash injection strengthens Kuwait Energy liquidity position going forward.

The assignment of the 15% participating interest in Block 9, Iraq from Kuwait Energy to Dragon Oil remains subject to Iraqi government and partner approval. Post granting of these approvals, Kuwait Energy will remain the operator with a reduction in participating interest from 60% to 45%,

Dragon Oil participating interest will increase from 30% to 45% with the remaining 10% participating interest being held by Egyptian General Petroleum Company.

(Source: Kuwait Energy)

Posted in Iraq Oil & Gas News 1 Comment

Ministry of Oil

New Firms Qualified for next Oil Licensing Round

By John Lee.

Iraq’s Petroleum Contracts and Licensing Directorate (PCLD) has announced the five additional companies have been approved to bid for Iraq’s “borderline onshore & offshore exploration blocks & fields.”

The companies are listed as:

  • Dana Gas (UAE)
  • Dragon Oil (UAE)
  • Geo-Jade Petroleum (China)
  • Schlumberger (USA)
  • Zarubezhneft (Russia)

Eight companies had applied for approval.

The five successful companies will be eligible to compete along with the following companies which are qualified from previous licensing rounds:

The areas to be offered include the onshore exploration blocks of Khudher Al-Mai, Jebel Sanam (Jabal Sanam) and Umm-Qasr on the Kuwaiti border; the Sindbad, Huwaiza, Shihabi, Zurbatia and Naft Khana blocks on the Iranian border; and the offshore exploration blocks in the Iraqi regional waters of the Arab gulf.

The bidding process should commence in May, according to the following schedule:

(Source: Oil Ministry)

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Beechcraft B300 Super King Air 350 plane

$15m to support Peace Dragon King Air 350 Program

By John Lee.

Beechcraft Defense has been awarded a not-to-exceed $15,225,799 cost-plus-fixed-fee undefinitized contract action for the Peace Dragon King Air 350 program.

It will provide contractor logistics support, basic life support, program support, and repair and return, cost per flight hour, travel and fuel for the Peace Dragon King Air 350 program for the country of Iraq.

Work will be performed at Baghdad, Iraq, and is expected to be complete by Sept. 30, 2017.

(Source: US Dept of Defense)

 

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Sara Akbar, CEO of Kuwait Energy

Faihaa-3 commences Oil Production

Kuwait Energy has announced the commencement of oil production from the Faihaa-3 well located in the Block 9 concession situated in the Basra Governorate.

The Faihaa-3 well started commercial production on 12 February 2017 at 40/64 inch choke size and has stabilized at a gross daily rate of 5,200 barrels of oil per day (bopd).

The well was spudded on 31 August 2016 and was completed on 11 February 2017. Currently, Kuwait Energy’s Working Interest (WI) production in Block 9 stands at approximately 10,000 bopd.

Kuwait Energy holds a 60% interest and is the operator of the Block 9 concession, while Dragon Oil holds 30% and the Egyptian General Petroleum Corporation holds 10%. The Faihaa-3 well is located in the Block 9 concession and is producing from the Yamama formation.

Sara Akbar (pictured), Chief Executive Officer of Kuwait Energy, said:

“Today’s announcement demonstrates the continued success of our Block-9 asset in Iraq.  The production rate achieved from the Faihaa-3 well marks another execution milestone in Kuwait Energy’s capabilities and further adds value to this significant asset.

“Our continued success in Block 9 could not have been achieved without the unparalleled support from our team, the Iraqi Ministry of Oil, South Oil Company and our partners on the ground in Basra.”

(Source: Kuwait Energy)

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Ministry of Oil

New Oil Development Opportunities in Iraq

By John Lee.

Iraq’s Ministry of Oil has requested proposals from international oil companies interestsed in developing a number of small- and medium-sized oil fields.

The fields concerned are:

  • Sindebad (Basra governorate);
  • Umm Qasr [Um Qaser] (Basra governorate);
  • Rachi (Basra governorate);
  • Abu Khema (Basra governorate);
  • Kumait (Missan governorate);
  • Noor (Missan governorate);
  • Umara (Missan governorate);
  • Dema (Missan governorate);
  • Dujaila (Missan governorate);
  • Mid-Euphrates fields (Mergan, Kifl, West Kifl).

The companies already qualified to bid are:

  • China Zhenhua Oil Company (China)
  • Dragon Oil (UAE)
  • Edison (Italy)
  • Glencore Exploration (Switzerland)
  • Gulfsands Petroleum (UK)
  • Inpex (Japan)
  • Itochu (Japan)
  • Japex (Japan)
  • JOGMEC (Japan)
  • JX Nippon (Japan)
  • Kuwait Energy (Kuwait)
  • Mitsui Oil Exploration (MOECO) (Japan)
  • Mubadala Oil (UAE)
  • OSJC Rosneft (Russia)
  • Pertamina (Indonesia)
  • PetroVietnam (Vietnam)
  • PTTEP (Thailand)
  • SNGN Romgaz (Romania)
  • Crescent Petroleum (UAE)

Tenders from non-qualified companies will also be considered.

More information here, here and here.

(Source: Ministry of Oil)

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Sara Akbar, CEO of Kuwait Energy

Production Commences at Faihaa-2 well in Block 9

By John Lee.

Kuwait Energy has announced the commencement of production from the Faihaa-2 well in the Block 9 concession. in Basra Governorate.

The Faihaa 2 well was spudded on 3 January 2016, with production testing commencing on 23 September 2016 at 52/64 inch choke size at an initial rate of 9,583 barrels of oil per day (bopd) from the Yamama-A formation.

On 1 October 2016, the well started commercial production at 36/64 inch choke size and has stabilized at rate at of 5,600 bopd.

Sara Akbar (pictured), CEO of Kuwait Energy, said:

We are proud to announce we have begun production from the Faihaa-2 well in Block 9, Iraq. This accomplishment demonstrates Kuwait Energy’s expertise, skills and our ability to execute these projects efficiently and successfully.

“Our strong partnerships with the Iraqi Ministry of Oil, South Oil Company (SOC) and our partners was critical in achieving this milestone.”

Kuwait Energy holds a 60% revenue interest and is the operator of the Block 9 concession, while Dragon Oil holds 30% and the Egyptian General Petroleum Corporation (EGPC) holds 10%.

(Source: Kuwait Energy)

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Sara Akbar, CEO of Kuwait Energy

Kuwait Energy signs Export Agreement for Block 9

By John Lee.

Kuwait Energy has announced the signing of an Export Oil Sales Agreement for its Block 9 project in Iraq.

The agreement, signed between a consortium led by Kuwait Energy plc and Iraq’s State Oil Marketing Organization (SOMO) puts in place the mechanism by which Kuwait Energy will be paid for services in Block 9.

The signing ceremony took place in SOMO’s Baghdad Headquarters and was attended by Majid Al-Hilfi representing SOMO, Sara Akbar, CEO, Kuwait Energy, Ibrahim Fathy, Assistant Deputy CEO for Development and Reservoir Production Dept., Egyptian General Petroleum Corporation (EGPC) and Asri Mousa, representing Dragon Oil Holdings Ltd.

The Agreement with SOMO will enable allocation of crude cargoes to be sold in compensation for the services the consortium is rendering in Block-9. Kuwait Energy is expected to be allocated its first cargo of oil entitlement for Kuwait Energy’s working interest share from Faihaa-1 well covering the production of oil from October 2015 – March 2016.

Sara Akbar said:

“Today marks an important milestone in Kuwait Energy’s history and its Iraq operBlock dations in particular, as this Agreement will facilitate receiving revenue from our Iraq operations after 5 years of Kuwait Energy’s work and investment in Iraq.

“It wouldn’t have been possible if it wasn’t for the excellent relationship and cooperation between the Consortium, Iraq’s Ministry of Oil and the South Oil Company, which maintained focus and discipline allowing production startup from this important asset in one year from the discovery”.

In 2013, Kuwait Energy was awarded the Block 9 Exploration, Development & Production Service Contract (EDPSC) in southern Iraq as operator and currently holds a 60% participating interest.

First exploration well in Block 9 was spud in March 2014 which led to significant oil discoveries in September and December of the same year. Oil production commenced from the Block in October 2015, only a year after the first discovery was made.

(Source: Kuwait Energy)

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Sara Akbar, CEO, Kuwait Energy

Block 9 Reaches Production in Record Time

Kuwait Energy has announced that the consortium comprising of Kuwait Energy (60%) as the operator, Dragon Oil (30%) and the Egyptian General Petroleum Corporation (10%) has commenced oil production from Faihaa-1 well in Block 9, Iraq.

The Faihaa-1 well is located in Block 9 field, which is situated in the hub of Iraq’s oil industry in the Basra Governorate, in Southern Iraq.

Production has begun from the Faihaa-1 well in the order of 5,000 bpd on 32/64 inch choke.

Sara Akbar (pictured), CEO of Kuwait Energy, said:

We are proud to have begun production in record time after making the discovery last December, which demonstrates the feasibility of executing such a fast track project in world record time in South Iraq.

“This would not have been possible without the cooperation and full support of the Iraq Ministry of Oil, the South Oil Company, the Block 9 Joint Management Committee (“JMC”) Chairman and its members, the support of our partners, Dragon Oil and the Egyptian General Petroleum Corporation, and the diligent and determined Kuwait Energy team in Basra and Kuwait.”

(Source: Kuwait Energy)

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ScreenHunter_2084 Sep. 30 17.01

Egypt Finalises Farm-in at Block 9

By John Lee.

Egypt has finalised a farm-in at Iraq’s Block 9 area in Basra province on Wednesday.

Under the agreement, Kuwait Energy (KEC) will give up 10 percent of the concession, leaving it with a 60 percent share.

According to a report from Reuters, this is the first time that the state-owned Egyptian General Petroleum Corporation (EGPC) will search for oil outside its own borders.

Production at the first well in the block, Fayhaa 1, is expected to begin in October at 5,000 barrels per day (bpd), increasing to 150,000 bpd by 2020-21.

Block 9 was originally granted to KEC (40%), Türkiye Petrolleri Anonim Ortaklığı (TPAO, Turkish Petroleum) (30%), and Dragon Oil (30%), but the Iraqi government expelled TPOA, following which KEC took over the TPOA share.

(Source: Iraqi Ministry of Oil, Reuters)

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