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 “was asked to Reduce Iraq Output”


By John Lee.

Russian oil company Lukoil was asked to “sharply reduce” output at West Qurna-2 this year, reports Reuters.

Ravil Maganov (pictured), head of the company’s upstream division, told reporters:

“We’ve got the letter to curb our enthusiasm … We were restricted to 250,000 barrels per day (bpd) due to weather and level of sulphur, we are dealing with the problem.”

He said Lukoil’s current production at the site was 380,000 to 390,000 bpd, adding that it is building a pipeline with a capacity of 1.6 million bpd to the port of Faw.

(Source: Reuters)

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IS “Controls Just One Oil Field in Iraq”


By John Lee.

The German newspaper Sueddeutsche Zeitung reports that the Islamic State (IS, ISIS, ISIL) now has control of just one functioning oil field in Iraq, the Qayara field south of Mosul in Nineveh Province.

As a result, oil production in areas under its control is now estimated at 2,000 bpd, just 5 percent of their production peak.

IS reportedly torched the fields of Hamrin and Ajil fields as they retreated from Tikrit last week.

(Source: Sueddeutsche Zeitung)

(Oil image via Shutterstock)

Posted in Oil & Gas, SecurityComments (0)

DNO Hits 100m Barrels from Tawke


By John Lee.

DNO, the Norwegian oil and gas operator, produced its first 100 million barrels of oil at its flagship Tawke field in February.

Executive Chairman Bijan Mossavar-Rahmani told a conference in Oslo:

“Output will pick up at Tawke this spring with the expansion of the field’s capacity to 200,000 barrels per day.”

A new 24-inch pipeline is already in place and Tawke-30, the last horizontal production well in the current drilling campaign, has reached target depth and is undergoing completion. Installation of the remaining surface processing facilities is progressing on schedule.

Our priority now is to work with the Kurdistan Regional Government to monetize all oil produced at Tawke according to contractual entitlements,” said Mr. Mossavar-Rahmani.

Sales by DNO into the local market commenced in the first quarter and will be stepped up with growing field deliverability as an interim measure to generate ongoing revenues to the company.

(Source: DNO)

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New Tank Farm to Stabilize Oil Exports


By John Lee.

Oil Minister Dr. Adel Abdul Mahdi [Adel Abdel Mehdi] has announced a plan to build new oil storage tanks to help smooth oil production during bad weather.

Iraq’s exports were restricted in January due to bad weather in the Gulf.

(Source: AIN)

(Oil tanks image via Shutterstock)

Posted in Oil & GasComments (6)

GKP Suspends Truck Shipments; Shares Slide


By John Lee.

Shares in Gulf Keystone Petroleum (GKP) were down 10 percent on Friday morning, after it announced the suspension of crude oil exports by truck from Iraqi Kurdistan.

The company said it remains in a dialogue with the Kurdistan Regional Government’s Ministry of Natural Resources (“MNR”), in order to receive the outstanding payments due to it and establish a stable payment cycle for export crude oil sales in the future.

In a statement to the markets, the company added:

In the interim, in order to maintain revenues and cash flow, Gulf Keystone will be recommencing crude oil supply for local Kurdistan use. This provides the prospect of receiving revenues in the near term.

“Export crude oil deliveries by truck have therefore been temporarily suspended. This is expected to be a short term measure until a regular payment cycle can be established for sales via the export route. The Company is actively working towards an early pipeline access solution for Shaikan crude, which will provide significantly improved margins than trucking to the export market.

“As previously announced, the Company will publish its results for the year ended 31 December 2014 on Thursday 9 April 2015.

John Gerstenlauer (pictured), Gulf Keystone’s CEO said:

Further to the oil export agreement between the Kurdistan Regional Government and Federal Government of Iraq reached in December 2014, and the recent passing of Iraq’s 2015 federal budget, we remain confident that a stable payment cycle will be established in the near term, and we expect to receive payment for all past and ongoing oil sales from Shaikan.

“The Company is taking a prudent approach to its capital expenditure in 2015 and is striving to ensure consistent and stable revenues in the short-term, which a return to the domestic market provides. Meanwhile, a number of longer term financing options are currently being progressed by the Board.

(Sources: GKP, Yahoo!)

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Khabbaz Oilfield Output Suspended


By John Lee.

Production at the Khabbaz oilfield, 20 km southwest of Kirkuk, remained suspended on Monday following severe damage during a weekend attack by Islamic State (IS, ISIS, ISIL) insurgents.

Oil Minister Dr. Adel Abdul Mahdi [Adel Abdel Mehdi] (pictured) said there is severe damage to the field, which was recaptured by Kurdish forces on Saturday.

The Minister declined to speculate on when operations would resume.

Khabbaz has a maximum capacity of 15,000 bpd, and was producing around 10,000 bpd before the attack.

(Source: Reuters)

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Genel Energy Down 3% on Trading Update


Shares in Genel Energy were down 3 percent on Wednesday morning following the company’s trading and operations update in advance of the its full-year 2014 results, which are scheduled for release on 5 March 2015. The information contained herein has not been audited and may be subject to further review:

HIGHLIGHTS

  • A combination of low development and operating costs and Production Sharing Contract structure creates a robust Kurdistan Region of Iraq (“KRI”) oil business very resilient to sustained low oil prices
  • 2014 production of 69,000 boepd, an increase of 58% year-on-year with significant further growth expected in 2015
  • Capital expenditure guidance for 2015 lowered by 30% to $200-250 million, a reduction of 70% on 2014
  • Revenue guidance for 2015 revised from $500-600 million at a Brent price of $80/bbl to $350-400 million at a Brent price of $50/bbl
  • Cash balances at 31 December 2014 stood at c.$490 million, balance sheet strength underpins future growth in the KRI
  • Agreement on crude oil exports through northern Iraq reached in December 2014 between the Kurdistan Regional Government (“KRG”) and Federal Government of Iraq (“FGI”), operational implementation commenced in early January 2015
  • First payment for oil exports via the pipeline received in December, further payments expected shortly

PRODUCTION

  • Net working interest production for 2014 averaged 69,000 boepd, an increase of 58% on 2013 and at the top end of the 60-70,000 boepd guidance range
  • Gross production from Taq Taq averaged 103,000 bopd in 2014, an increase of 34% on 2013. Following the successful installation and commissioning of well site temporary production facilities in December 2014, Taq Taq set a new daily production record of 135,000 bopd and a new record for gross daily liftings of 147,000 bopd
  • Gross production from Tawke averaged 91,000 bopd in 2014, an increase of 131% on 2013
  • In 2014, 36% of Genel’s production was exported by the KRG through the KRI-Turkey pipeline system, with 12% exported by the KRG via Turkey by truck and the remainder sold into the domestic market
  • The Company’s 2015 production guidance is maintained at 90-100,000 boepd

Posted in Oil & GasComments (2)

Record Oil Production set to Increase


By John Lee.

Iraq produced a record of around 4 million barrels per day (bpd) of crude oil in December, Oil Minister Adel Abdel Mehdi (pictured) told a press conference on Sunday.

This beat the previous record for Iraqi production of 3.56 million bpd in 1979, according to an official from the State Oil Marketing Organization (SOMO).

The Minister went on to reveal plans to export 375,000 bpd for the first three months of 2015 from Kirkuk and the Kurdistan region, increasing to 600,000 bpd from April.

(Source: Reuters)

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