Tag Archive | "ExxonMobil"

Iraq Approves $278m Halliburton Deal


By John Lee.

The Iraqi cabinet has approved a drilling deal with Halliburton value at $278.5 million (324 billion Iraqi dinars).

Reuters reports that under the 30-month contract, Halliburton will drill 30 oil wells in the 8.7-billion-barrel West Qurna-I field, operated by U.S. major ExxonMobil.

Production at the field is currently running at around 360,000 bpd due to problems with low levels of water injection.

(Source: Reuters)

Posted in Oil & GasComments (0)

Oryx and Others Remove Staff from Iraq


By Patrick M Schmidt.

As the United States begun strikes against Islamic State of Iraq and the Levant (ISIL) militants, Canadian oil firm, Oryx, began evacuations of staff from their facilities in the Kurdistan region.

The company announced that portion of its Demir Dagh oil field had been shut down. Drilling and other operations continued at reduced levels by contract staff. The field produces approximately 3,000 to 4,000 barrels of oil per day.

Operations at Ain Al Safra and Banan oilfields have been completely suspended until further notice.

Other firms evacuated staff from the region including Chevron Corporation and Exxon Mobil.

(Source: Reuters)

Posted in Oil & Gas, SecurityComments Off

Mystery Buyer of Kurdish Oil Revealed


After months of remaining out of public knowledge, the buyer of Kurdish oil in America has been revealed.

The chemical firm LyondellBasell purchased two tankers worth of Kurdish oil in May. The shipments totaled nearly 533,000 barrels of oil and at the time did not result in any legal action.

Data retrieved from the U.S. Energy Information Administration (EIA) revealed that the chemical make up of the crude oil from those two shipments matched characteristics of oil from the Shaikan field in Kurdistan.

Over the past two years the Kurdistan Regional Government (KRG) has sold almost 20 million barrels of oil. Kurdistan continues to have bases of operations for many major oil companies including Chevron, BP, and ExxonMobil.

(Source: Reuters)

(Picture: LyondellBasell)

Posted in Oil & GasComments Off

Oil Price Surges amid Iraq Turmoil


By John Cookson. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Traders will tell you the price of oil is a speculative market based on expectations. Most of Iraq’s oil production is from the mega fields in the south, far from any fighting. But in the world’s skittish bourses just a threat to exports is enough to cause market jitters.

Iraq was expected to contribute to 60 percent of OPEC’s crude production in the next 10 years so its output had become important for the long-term global energy market.

Small wonder, as country slides towards possible civil war, some analysts predict the price of a barrel of oil could soar by US$30.

The jihadists lightning assault in the north of Iraq last week caused Brent crude to spike to US$113, and the price could rise still further today with the news ISIS seized another town,Tal Afar, in the north west and still had their sights on Baghdad.

The US Embassy in Baghdad has relocated some staff to its consulates in Erbil and Basrah and to Jordan. The oil industry has reacted too with majors like BP at Rumaila and ExxonMobil in West Qurna evacuating all but vital expatriate staff.

The oil companies are playing down any sense of panic. ExxonMobil is not commenting on the crisis and BP said simply the violence in Iraq “has no impact,” on production at Rumaila. Royal Dutch Shell at Al Majnoon put a statement out saying safety and security of staff was: “an absolute priority.”

Posted in John Cookson, Oil & Gas, SecurityComments (4)

Capital Gain Tax on IOCs in Iraq


By Ahmed Mousa Jiyad.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Many countries impose capital gain tax on individuals, companies and corporations when a profit realized from the sale of assets. National and state legislation often has a large array of fiscal obligations and regulations regarding capital gains, however, these fiscal obligations may vary from jurisdiction to jurisdiction.

In other words capital gain tax is a normal component of taxation systems on both national and international levels, and thus has a significant contribution to the state revenues and fiscal policies. Iraq is no different and should consider doing the same.

In Iraq the signed service contracts provide the IOCs with a possibility to assign (sell) wholly or partly their participating interests as specified by a common clause in the signed contract, “any Company shall have the right to assign any of its Participating Interest, shares, rights, privileges, duties or obligations under this Contract to an Affiliate.” Such right for assignment is subject to and governed by a set of provisions outlined in the signed contract.

Due to the long duration of the contracts (the Term) that extend beyond 20 years, and due to the usual practice of Merger and Acquisition (M&A) in the international petroleum business it is highly probable that IOCs might “farm in” and “farm out” by acquiring, selling or exchange participation interests in the related petroleum field.

The transfer of participation interests between IOCs involves financial transactions or transfer of “asset” ownership between the concerned parties: the buyer and the seller.  This assignment deal may (though highly likely) results in significant realized gain (profit) for the selling party compared to the actual cost (investment) it made as a consequence to its participation in the related upstream petroleum development project.

 This realized gain is known to be “capital gain” and in most countries it is taxable. The “Capital Gain Tax” is imposed on individuals, companies and corporations and in many countries it is imposed in addition to other direct taxes such as “Property/Wealth Tax” and “Income Tax” among others. The percentage of Capital Gain Tax differs according to the taxation systems and fiscal policies across the world. 

Posted in Ahmed Mousa JiyadComments (3)

Turkish Firm to Build Exxon Pipeline


By John Lee.

Energy Global reports that the Turkish construction firm EID Insaat is to build a 120-km pipeline for ExxonMobil in Iraq.

The $90-million project is expected to take approximately one year to complete.

The company Chairman said that this was in addition to an 85-km long pipeline project currently under construction.

The Iraqi marker accounts for 70% of the business volume of EID Insaat, which has operations in the energy and construction sectors in the Middle East and Russia.

(Source: Energy Global)

Posted in Construction & Engineering, Oil & GasComments Off

China Consolidates Position in Iraqi Petroleum Sector


By Ahmed Mousa Jiyad.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

China and CNPC are Consolidating Further their Positions in Iraq Petroleum Sector

Four years after the first bid round took place, some international oil companes (IOCs) are consolidating their positions. while others are descending after good start, and some were even unable to make an entry. CNPC stands among the first group, while ExxonMobil exemplifies the second group, and companies such as Chevron, Repsol and Conoco Phillips fall into the third group.

In a previous paper I addressed how Russia has entrenched and solidified its role in the Iraqi petroleum sector. This paper is mainly about CNPC’s path to consolidating its presence in this sector.

Please click here to read Ahmed Mousa Jiyad’s report.

Mr Jiyad is an independent development consultant, scholar and Associate with Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: [email protected], Skype ID: Ahmed Mousa Jiyad).

Posted in Ahmed Mousa JiyadComments (5)

ExxonMobil Sells Stakes in West Qurna I


By John Lee.

ExxonMobil signed agreements on Thursday with PetroChina for a 25 percent participating interest in the West Qurna I project in Iraq, and with Indonesia’s Pertamina for a 10 percent participating interest in West Qurna I.

ExxonMobil retains 25 percent interest and remains lead contractor.

The transfer has been approved by the South Oil Company, Oil Exploration Company of the Iraqi Ministry of Oil and Shell West Qurna B.V., as members of the West Qurna I contractor consortium.

China is already the top foreign player in Iraq’s oilfields.

(Source: ExxonMobil)

(Picture: Rex Tillerson, chairman, president, and CEO of Exxon )

Posted in Oil & GasComments (5)

IBN Newsletter 'FREE Weekly Subscription'