Tag Archive | "oil production"

The latest news on Iraq Oil Production – oil companies, oil output and more – brought to you by Iraq Business News

LUKOIL Starts Returning Investment on West Qurna-2


A crude carrier chartered by LITASCO (LUKOIL’s international marketing and trading arm) arrived today (Wednesday) in South Iraq’s port of Basra to receive the first batch of oil as part of the recovery of LUKOIL’s costs from phase one (“Early Oil”) of the West Qurna-2 project.

The vessel will spend several days in the port to load one million barrels (about 160 thousand tons) of oil. It is the first crude carrier to transport buy-back oil that belongs to LUKOIL in accordance with the terms of the West Qurna-2 Service Contract.

Meanwhile production at West Qurna-2 has reached a level of 280 thousand barrels per day. The project is continuing according to plan with LUKOIL successfully fulfilling its contractual obligations.

The loading of this crude carrier provides further evidence of the reliable partnership between LUKOIL and the Iraqi side in developing the country’s oil industry,” said Andrey Kuzyaev, Vice President of LUKOIL and President of LUKOIL Overseas.

(Source: LUKOIL)

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Gazprom Begins Production at Badra


By Patrick M Schmidt.

The Iraqi Ministry of Oil has announced that Gazprom Neft, a division of the Russian state-owned Gazprom, had begun production at Badra oilfield in the eastern province of Wasit.

Oil flow from Badra has started on Monday to fill the oilfield storages in preparing to feed the export,” said Ministry of Oil spokesman Asim Jihad.

Badra is expected to average 15,000 barrels of oil per day in the short term, but experts suggest its production figures could rise to 170,000 barrels of oil per day by 2017.

(Source: Reuters)

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ISIS Profits from Captured Oilfields


By Patrick M Schmidt.

The Iraqi government has confirmed that ISIS militants, who maintain a foothold in northern Iraq, are taking advantage of the oil infrastructure they have captured during the previous month of battles with security forces.

ISIS militants have made attempts to keep oil infrastructure intact and to keep petroleum industry employees on the job, so that the group can profit from the energy resources of the region.

Officials believe that ISIS is transporting oil overland from oilfields outside of Mosul and Tikrit to Syria to help fund their terrorist organization.

After processing the oil in Syria, the refined products are smuggled back into Iraq and sold to the populace in ISIS controlled territory. ISIS makes a profit from these activities by pricing their stolen oil products about three times above market price.

(Source: RT)

(Terrorism image via Shutterstock)

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Iraq, the Full Picture


Despite the often grim news coming from Iraq in recent weeks, many businesses are seizing the opportunity to go where others won’t.

In this week’s newsletter, for example, we report on a new truck distribution deal in Iraqi Kurdistan, a Turkish company completing a storage tank project, and a Malaysian firm planning to break into the Iraqi helicopter charter market.

We also have news of a new road that will greatly reduce travel times to and from the Iranian border, and an assurance from the Oil Minister that southern oil production is unaffected by the recent violence further North.

People who want the full picture of Iraq read Iraq Business News, and the most effective way to get your message to them is to advertising with us. We have a wide range of options to suit all budgets — you can find more details here.

(Flag image via Shutterstock)

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Hawrami: New Iraq Needs Power-Sharing


By John Lee.

The key to Iraq’s unity is power-sharing, revenue-sharing and the implementation of the Constitution, Dr Ashti Hawrami (pictured), the Kurdistan Regional Government’s Minister of Natural Resources, told a London conference yesterday, saying:

“The policies of centralisation and discrimination have put Iraq’s future at risk … As of last week (following the crisis in Mosul) there is a new Iraq. Iraq needs power-sharing, revenue-sharing and adherence to the constitution. Otherwise we will have more chaos in Iraq.”

Dr Hawrami explained that the federal budget law in 2013 had introduced a minimum export requirement of 400,000 barrels per day by the KRG, but this figure was unrealistic and had been inserted into the budget without consultation with the KRG.

He said that the KRG should have received $6 billion as its budget so far this year; instead, it had received $900 million. The KRG has been forced to borrow $3 billion locally and internationally, and it will be able to overcome the budget shortfall by exporting up to ‎250,000 bpd from July, with the aim of increasing to 400,000 bpd by the end of the year.

The minister said that Kurdish oil sales would continue through the Ceyhan port in Turkey and that two tankers of oil had already been sold, with a further two tankers expected to load this week for their agreed buyers.

He outlined that international oil companies have already invested $15 billion in the energy sector so far, and they are required to invest $10 billion more in the next two years. The Minister explained that the oil and gas sector, including services, employs about 33,000 people in Kurdistan, 87‎% of whom are locals.

Dr Hawrami reiterated the articles in the Iraqi Constitution that give the KRG the authority to export oil. He also said that the KRG now had the necessary pipeline infrastructure in place to enable the resumption of export from the Kirkuk oilfields, which have seen no exports since March due to persistent sabotage attacks on export infrastructure outside the KRG controlled area.

He concluded by saying, “Despite all the unfair treatment and discrimination, the KRG reaches out to Iraq and is ready to cooperate, to work together to resolve these problems.

(Source: KRG)

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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.”

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West Qurna-2 hits 200,000 bpd


By John Lee.

Lukoil boss Vagit Alekperov (pictured) has told journalists that production at the West Qurna-2 oilfield has reached 200,000 bpd, from a starting volume of 120,000 bpd two months ago.

He added:

By the end of the year according to obligations 400,000 will be reached. Today there is no doubt that 400,000 will be reached by December.

(Source: Reuters)

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Iraq’s Oil Exports Hit Record High


By John Lee.

Surprising skeptics, the International Energy Agency has announced that Iraq’s oil exports have hit 3.6 million bpd, a record 30 year high, The Wall Street Journal reports.

Previously exports were falling due to export bottlenecks, bad weather and extensive work on infrastructure, while some northern areas such as Kirkuk were adversely affected by insecurity.

More recently, efforts to clear Iran-Iraq war era shipwrecks from the Shatt al Arab waterway caused some disruption, but experts are divided as to whether the recent rise represents Iraq meeting their export target of 3.4 million bpd for the year or whether February’s achievement is a blip.

Notably, challenges involving pumping and storage capacity at the Fao peninsula and ongoing infrastructure improvements represent near term challenges to Iraq’s export target for the year.

If these challenges are surpassable, Iraq’s oil exports can be expected to rise considerably.

(Source: WSJ)

 

 

 

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