Tag Archive | "Missan"

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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 3o 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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CNPC: New Maysan Pipeline Complete


By John Lee.

China’s CNPC have announced the completion of a 272 kilometre crude oil pipeline which connects Halfaya and Burzugan [Bazargan] oilfields in southern Iraq to the Al-Faw port.

Incredibly, CNPC have remarked that the pipeline is passing through 30km of areas that were once minefields during the Iran-Iraq war.

Today, southern Iraq is free of conflict and heavily defended against ISIL, who are fighting hundreds of kilometres to the north and struggling to operate beyond Baghdad.

CNPC have hailed the project as Iraq’s most significant post 2003 pipeline, and note that the 42 inch diameter structure will have a 50 million tonne per year capacity.

(Source:ECNS)

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$6b Refinery Deal to be Investigated


By John Lee.

An Iraqi parliamentary committee has asked the Commission of Integrity to investigate the contract awarded to Satarem to build a $6-billion refinery in Maysan.

Iraq Business News‘ Expert Blogger Ahmed Mousa Jiyad recently questioned the legitimacy of the contract signed with the Swiss company, prompting the Ministry of Oil to issue a statement in its defence.

Shafaaq News said the parliamentary integrity committee debated the issue at the request of Maysan’s governing council, and that the parliament’s oil and energy panel is still investigating alleged corruption in the contract.

(Source: Emirates 24/7)

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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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Doubt Surrounds Satarem-Missan Refinery Deal


By Ahmed Mousa Jiyad.

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

Recent information on Satarem sheds serious doubt about its prospects and ability for executing the Missan Refinery project.

Iraq’s Ministry of Oil signed, in the presence of the Prime Minister Mr. Nuri Al-Maliki, a memorandum of understanding (MoU) with Swiss firm Satarem (represented by what was reported as Chief Executive Jerome Friler) on 10 October for the development of a 150 kbd refinery in Missan province at an estimated cost of $6 billion.

Almost a year ago I received communication from a consultant with a California based financial firm enquiring about Missan refinery and stating “For the last year or so, I have been working with an Iraqi group, developing the [Missan] refinery complex”. A few weeks later I received communication from an Iraqi law firm in Baghdad indicating they were “Advising on [Missan] refinery construction”. The two communications might be connected!

When reviewing information on the signed MoU, I assumed the above mentioned financial and legal firms were involved in the project. But soon afterwards the California based consultant informed me they were not, adding further, “We are of the opinion that the sovereign and financial payment extension risk in Iraq is too high to justify any investment from [….], at this time.”

Most of the comments reported within business, professional and media circles since the signing of the MoU are that Satarem is not known to be a refinery-specialized firm, or to have a track record in modern refinery construction. I did not find information on this company in the “Public Companies” or “Investment Fund Group” of the SEDAR company database.

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Swiss Firm to Build $6bn Refinery


By John Lee.

Prime Minister Nouri al-Maliki says Iraq has signed a $6 billion deal with Swiss company Satarem to build and run southern Iraq’s first new, large-scale refinery in 30 years.

The oompany will set up the 150,000 barrel-per-day refinery near Amara, in Missan [Maysan] province, on a 50-year build-own-operate (BOO) contract.

Satarem was created in 1992 by Mr.Jérôme Friler and Mr.Adolf Wong, registered in Switzerland and operating across the globe providing solutions for heavy engineering industries.

(Sources: Prime Minister’s Office, Iraq Oil Report)

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Iraq Awards $348m in Drilling Deals


By John Lee.

Iraq has awarded oil drilling deals with a combined value of $348 million.

Associated Press reports that Weatherford picked up two drilling contracts, one for nearly $95 million and another for $82.4 million.

Another contract worth $96.7 million went to China’s Bohai, while COSL, a division of the China National Offshore Oil Corporation (CNOOC), won a contract for $73.8 million.

The deals relate to work at oil fields in Maysan province that are being developed by China’s state-owned CNOOC.

(Source: Associated Press)

(Picture: a Weatherford rig at Bazirgan oilfield in Maysan)

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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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