Tag Archive | "oil production"

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

The New Oil Production Targets


By Ahmed Mousa Jiyad.

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

The New Oil Production Targets, New Terms and Implications

Most petroleum professionals, including myself, had expressed their serious doubt about the suitability, attainability and sustainability of oil production plateau targets for many oilfields that were concluded pursuant to bid rounds one and two of 2009 and 2010.

The Ministry of Oil-MoO and senior energy decision makers in government begun to rethink those production targets only after the findings of both the International Energy Agency IEA (2012) and the Booz&Co., Integrated Energy Strategy INES (2013) raised similar doubts on the likelihood of realizing the contracted plateau targets in volumes and on time; and both IEA and INES called for serious reduction on these contracted targets.

Recent information from various official, industry and specialized media sources tells that agreements between MoO and related IOCs have been concluded pertaining to Rumaila and Halfaya oilfields, while those for West Qurna 1 (WQ1), West Qurna 2 (WQ2), Majnoon, and Zubair giant oilfields were finalized earlier; and related contracts have already been amended.

The full paper can be downloaded free-of-charge from our Reports service.

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).

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Revised Production Target for Rumaila


By John Lee.

BP has reportedly finalised its revised contract for Iraq’s giant Rumaila oilfield, cutting the final production target from 2.85 million barrels per day (bpd) to 2.1 million bpd.

According to Reuters, officials from BP and Iraq’s oil ministry signed the amendment to the existing contract in a closed-door meeting at Rumaila on Thursday.

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

(Source: Reuters)

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KRG Calls for Increased Oil Production


The KRG’s Ministry of Natural Resources has said it attaches the highest priority to the safety and security of all oil industry workers and their operations in the Kurdistan Region.

MNR remains in constant contact with KRG security forces regarding the deterioration of security on the Region’s borders and it continues to share all relevant information with its contractors.

Until now, the enemy has not been able to target oil operations in the Region, but as a precautionary measure some of the exploration activities in areas abutting potential combat zones have been temporarily halted and staff relocated.

However, oil production in the Region remains unaffected, and is being delivered to both the domestic and export markets. Indeed, the KRG is expecting that the producing companies will ramp up production in the coming weeks as ongoing export infrastructure improvements come online as planned.

The producing companies continue to receive their share of production and revenue from all the domestic uses of the oil, and they have been advised to also work on the export sales for their share of the exported oil.

Meanwhile, MNR would like to remind the operating and the service companies working in the Region not to take any steps without close coordination with the Ministry of Natural Resources, as this may lead to unnecessary complications and in some cases could harm the operators’ own interests as well as the KRG’s overall needs.

MNR is continuing with oil exports and sales via Ceyhan and welcomes the support and investment of the oil companies in the Kurdistan Region.

(Source: KRG)

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Southern Oil Production Figures and Forecasts


By Patrick M Schmidt.

Despite the ongoing violence in the north of Iraq, the southern half of the country has remained relatively peaceful over the past few months, especially in the southern city of Basra. Crude output for southern oilfields remains at about 3.15 million barrels of oil per day.

The Iraqi government estimates that the long-term export amount will be approximately 8.4 million barrels of oil per day. This figure was scaled back from 12 million barrels of oil per day by 2020 due to technical and infrastructure issues.

Due to current security issues, it is not expected that Iraq will reach its short-term output goal of 3.7 million barrels per day. Instead, experts believe the figure will be closer to 3.4 million barrels.

The withdrawal of oilfield personal by foreign companies due to security concerns has not impacted oil production. However, it is not expected that major pipeline projects will be completed this year.

(Source: Reuters)

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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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