Tag Archive | "Missan Oil Company"

Halfaya Oil Targets Reduced

By John Lee.

The Missan Oil Company has announced an agreement with the China National Petroleum Corporation (CNPC) to reduce the final production target for the Halfaya oilfield from 535.000 barrels per day (bpd) to 400.000 bpd.

As a result, production will be extended from 20 years to 30 years.

CNPC has a 37.5 percent stake in Halfaya, with 25 percent held by the Iraqi state, 18.75 percent by Malaysia’s Petronas and another 18.75 by French giant Total. Under the terms of their contract, signed in 2010, they receive a fee of $1.40 per barrel.

For more on revised production targets, please see this report from our Expert Blogger Ahmed Mousa Jiyad.

(Source: Aswat Al Iraq)

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Shell: Majnoon Exports Commence

By John Lee.

Once a scene of bloody fighting during the Iran-Iraq war, Majnoon is now an oil field of vital economic importance for Iraq. Royal Dutch Shell’s announcement marks a crucial step in its development since the discovery of the field in 1975.

After a lull in development during the sanctions era of the 1990s, the field saw a second life following Iraq’s first major oil auctions in 2009, although clearing war time ordinance presented a major challenge to drilling operations.

Majnoon has been developed by the South Oil Co., Malaysia’s Petronas, and Missan Oil Co. and is currently producing 210,000 bpd. Hans Nijkamp, vice-president and chairman of Shell, spoke of the significance of the development since production was re-started 8 months ago

“The lifting of Shell’s first oil shipment from Majnoon has great significance to us and our partners in the [Iraqi] government as it is a testimony to our shared progress and signals the start of Majoon’s long-term journey toward generating further revenue for Iraq’s economy, and as an investment in Iraq’s future.”

(Source: Arab News)


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Daewoo Wins $589m Gas Separation Contract

By John Lee.

Iraq’s cabinet has approved an $589 million oilfield service contract with South Korea’s Daewoo Engineering & Construction.

The contract, approved on Tuesday, is for the engineering, procurement and construction of a gas separation facility at the Zubair oilfield.

Production at the field is planned to increase from the current 320,000 barrels per day (bpd) to 850,000 bpd by 2017.

The development of the Zubair Field is led by Eni (32.8%) with Occidental Petroleum Corporation (23.4%), Korea Gas Corporation (KOGAS) (18.8%) and Iraq’s state-run Missan Oil Company (25%).

(Source: Reuters)

(Picture: Youngsik Park, CEO, Daewoo Engineering and Construction)

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Samsung Sign $840m ENI Zubair Deal

By John Lee.

Samsung Engineering Co., Ltd. has officially announced that it was awarded the North (Hammar Mishrif) New Degassing Station Facilities contract for the ENI Zubair Oil Field Development project in Iraq, worth  $840 million.

The signing ceremony was attended by Samsung Engineering’s President & CEO Mr.Park Choong-Heum, South Oil Company’s Director General Mr. Dheyaa Jaafar Hyjam and ENI’s Managing Director Mr. De Lorenzo.

The development of the Zubair Field is led by Eni (32.8%) with Occidental Petroleum Corporation (23.4%), Korea Gas Corporation (18.8%) and Iraq’s state-run Missan Oil Company (25%).

Samsung Engineering will be responsible for engineering, procurement, construction and pre-commissioning on a lump-sum turnkey basis to build a gas and oil separation plant (GOSP) with a capacity of 200,000 barrels per stream day (BPSD). The project is located in the Basrah region, 480km southwest of Baghdad, the capital of Iraq.

The project is expected to reach completion in 2016. Samsung Engineering’s CEO Park Choong-Heum expressed,

“This contract award is a direct result of proven project execution capabilities and commitment to the Iraqi market since 2012. Samsung Engineering will build a long-term partnership with the Iraqi government and client, thus, socially contribute to the communities.”

Entering Iraq in 2012 with the West Qurna-2 GOSP project and continuing its operation with the Badra GSP project in 2013, Samsung Engineering expects to further improve its position in the Iraqi market. Moreover, Samsung takes an interest in the welfare of the local community in Iraq.

Last year, Samsung Engineering built and donated two libraries for children in cooperation with UNICEF in the Basrah region, providing more educational opportunities for young students.

(Source: Samsung)


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Chinese Firm Suspected of Fraud

By John Lee.

China’s Caixin has reported that the Missan Oil Company (MOC) has suspended all activities of a company called Hermic, an oilfield service company controlled by former executives of the China National Petroleum Corp. (CNPC).

Hermic is said to have won at least 12 engineering outsourcing contracts worth US$75 million from CNPC at the Halfaya oil field; the total value of contracts outsourced by the CNPC’s Halfaya operation to Hermic and its affiliated companies is estimated to reach US$115 million, a figure that apparently prompted fraud suspicions.

Caixin found that the sole shareholder of Hermic, Li Wei, is also the chairman of Hong Kong-registered DRK Energy, which has a US$20 million contract in Halfaya. Another company related to Li is Hong Kong-registered Power Petroleum Int., a company that has won more than US$20 million in service contracts on the same project. Altogether, the three companies have received about US$115 million worth contracts at Halfaya.

Three of the contracts are valued at between US$ 8 million and US$ 9 million, and are so similar that they have been described as “actually one contract … split into three smaller contracts in order to avoid regulations.

Hermic is alleged to have provided fake documents to secure contracts, and is said to be “a shell company registered in Las Vegas … The registration date is May 2010, about when CNPC entered Halfaya.

(Source: Caixin)

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Eni’s Scaroni Meeting with al-Maliki

By John Lee.

Iraqi Prime Minister Nouri Al-Maliki and Eni’s CEO Paolo Scaroni (pictured) met on Monday in Baghdad to discuss Eni’s activities in the country.

During the meeting, Mr Scaroni along with Claudio Descalzi, COO of Eni E&P, updated the Prime Minister on the development activities at the Zubair oil field and discussed the contractual and operative requirements needed to reach the new production plateau of 850,000 barrels of oil per day (bopd) in 2016 , as agreed in the Amendment to the Technical Service Contract signed on 15 July 2013.

The parties also discussed the potential of the Iraqi hydrocarbon sector and the future opportunities of development of Eni in Iraq.

The Prime Minister al-Maliki expressed his satisfaction with the activities carried out by Eni in the country.

During this visit, Eni’s CEO and COO also met with the Iraqi Deputy Prime Minister, Hussain al-Shahristani, and the Minister of Oil, Abdul-Kareem Luaibi.

Eni is the operator of Zubair, which is located near Basrah and is regarded as one of the largest oil fields of Iraq, with current production of 320,000 bpd.

Eni is the Lead Contractor of a consortium that includes Occidental Petroleum Corporation, Korea Gas Corporation and Missan Oil Company.

(Source: ENI)

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Ribbon Cut on new Bazurgan-Halfaya-Fao Pipeline

By John Lee.

The Director General of Missan Oil Company has cut the ribbon on the 272-km crude oil pipeline from Buzurgan to Halfaya and onward to the tanks reservoir at al-Fao [al-Faw]. It starts from meeting point of the two lines from Buzurgan and Halfaya.

The 42-inch-diameter pipeline was built in cooperation with the South Oil Company (SOC) and local government in Missan and Basra.

The project includes installing of five cathode stations to protect the pipe from corrosion and eight electrical valves, as well as pump station and systems of meters to calculate mounts of exported oils and central control unit in Halfaya field, in addition to sub stations in Buzurgan and Fao.

the project will implement by the Chinese company CBC [CPP?] and Iraq’s State Company for Oil Projects (SCOP).

(Source: Missan Oil Company)

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New Rigs Arrive at Halfaya

By John Lee.

The Missan Oil Company (MOC) has announced that new oil rigs are being installed at the Halfaya oil field to increase the number of new wells in the second stage of developing the field.

The Director General of the company said that two new rigs belonging to PetroChina have already arrived and another two will soon be available, bringing the total to 10 (in addition to two that are under repair).

According to the MOC, the field is estimated to hold about 16 billion barrels of oil and large amounts of gas.

(Source: MOC)

(Picture: PetroChina rig at Halfaya)

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