Tag Archive | "South Oil Company (SOC)"

Dragon Oil Make Second Basra Discovery


By John Lee.

Dublin registered Dragon Oil have announced a second oil discovery at the Block 9 exploration well, ‘Faihaa-1′.

This is good news for the consortium who have a 30% stake in the well along with the operator, Kuwait Energy who have a 70% stake in the block, located in the northern part of Basra province, southern Iraq.

The firm’s first discovery at Block 9 occurred in September last year, 2700 metres into the Mishrif formation. The second target was the Yamama formation, at 4000 metres. Dragon Oil signed their oil services contract for the site in January 2013.

(Source: Dragonoil.com)

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BP Plans to Double Rumaila Production


By John Lee.

The coming year will see BP expand drilling work and upgrades to equipment at the vast Rumaila oil field in southern Iraq, of which the company have a 50% stake.

BP operate the field with PetroChina, Iraq’s South Oil Company and SOMO.

This work is carried out under the umbrella of the Rumaila Operating Organization, which oversees activity at a field which is thought to have some 20 billion barrels available for extraction. Some observers have noted that BP have played a “long game” in Iraq and that their patience with contractual difficulties and initial security concerns is paying off.

The aim of the new plan is to increase production at the field to 2.1 million BPD by 2020, double the current production. This has surprised some observers who are unfamiliar with Iraq’s geography and do not realise that the ISIL terror group are operating hundreds of kilometres to the north.

The 25 year contract at the Rumaila field is expected to generate $1 trillion for the Iraqi economy.

(Source: Various publications)

 

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IOCs seek Independent Water Facilities


By John Lee.

International oil companies (IOCs) in southern Iraq are seeking to push ahead with their own water injection facilities to meet production targets, according to a report from Platts.

Malaysia’s Petronas, operator of the Gharraf [Garraf] oil field, is the latest to ask the Ministry of Oil for permission to build a standalone facility, as the new multi-billion dollar Common Seawater Supply Facility (CSSF) project remains stuck in the conceptual design phase.

The $5 billion first phase of the CSSF, which will provide 4 million bpd of treated water for the management of reservoir pressure, is not expected before the end of 2018 at the earliest, assuming the two contracts for design work are signed immediately.

Platts reports that project management consultants CH2M Hill had been hoping to award the front-end engineering and design (FEED) in the second quarter of 2013 and start the project in the third quarter of 2017, but the company is still waiting for details from the oil ministry, and its subsidiaries South Oil Company (SOC) and State Company for Oil Projects (SCOP), specifying the amounts of water required for each field and the time schedules.

This has been held up by delays to final agreements with the oil companies on their revised plateau targets. For the largest fields — West Qurna-1 and Rumaila — new deals were only reached in September, while negotiations are still going on with Shell for the Majnoon oil field.

Complicating matters further is the fact that only two firms are in the running for each of the main FEED contracts — the US’ Parsons for the water treatment plant and Austria’s ILF Consulting Engineers for the pipeline contract.

The total cost of the various water schemes is put at more than $10 billion (12 trillion Iraqi dinars).

(Source: Platts)

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Petrofac Wins New Iraq Business


By John Lee.

Petrofac has secured a second contract extension from South Oil Company (SOC) for support on its Iraq Crude Oil Expansion Project.

The 12-month extension, worth around US$106 million, comes into effect in December and brings the total value of the contract to more than US$300 million since it was first awarded in 2012.

Petrofac is responsible for operations and maintenance services on a range of offshore facilities including an offshore platform, Central Metering and Maintenance Platform (CMMP), four single point moorings (SPMs), subsea pipelines and tanker operations, all based 60km offshore the Al Fao Peninsula in southern Iraq.

Mani Rajapathy, Senior Vice President MENA/CIS, Petrofac Offshore Projects & Operations, said:

“This extension builds on Petrofac’s recent successes in Iraq and our commitment to our valued customer SOC. Over the past 24 months we’ve loaded 280 tankers and exported 570 million barrels. We have helped to drive consistent improvement in monthly exports, with export for the last six months averaging in excess of 31 million barrels.

“We have also delivered this with an impeccable safety record, having achieved 2.5 million man hours without a Lost Time Injury.”

Dyeyaa Jaafar Hyjam, Director General, South Oil Company said:

“During the last two years, apart from delivering operations and maintenance and export targets, Petrofac has brought in its wider capabilities in engineering, supply chain and project management for the benefit of SOC. This contract extension reflects Petrofac’s significant contribution to SOC’s improved export from Al Fao, in a safe and efficient manner.”

(Source: Petrofac)

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Petrofac Wins $500m Rumaila Contract


By John Lee.

Petrofac has also been awarded a major contract in Iraq to provide general construction management services to BP Iraq NV (BP) on the Rumaila field near Basra.

Petrofac will provide management and personnel to manage brownfield modifications to assist BP – and its partners in the Rumaila Operations Organisation (ROO), China National Petroleum Company (CNPC) and South Oil Company (SOC) – in executing its strategy to rapidly and safely increase production from what is one of the world’s largest fields.

The contract, which runs for three years, with an option for further extension of two years, has a potential value of up to $500 million.

Petrofac will provide the overall management and co-ordination of multiple construction projects, including construction management and supervision of work undertaken by third party contractors on the field, 32 km from the Kuwaiti border.

Mani Rajapathy, Senior Vice President, MENA/CIS, said:

“The award builds on an established track record for Petrofac in Iraq, in particular at Rumaila, dating back to 2011. We look forward to sharing in the continued success of the regeneration of Rumaila.”

(Source: Petrofac)

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Basra Oil Wealth to Build Iraq


By John Lee.

Iraqi Oil Minister Adel Abdul-Mahdi [Adil Abd al-Mahdi] has reportedly promised to make Basra the economic capital of Iraq, but added that there are many obstacles to be solved in achieving this.

During a visit to oil and gas installations in southern Iraq, the Minister pointed out the importance of the South Oil Company (SOC) to Iraqi revenues, and said that there would be an increase in oil production levels that would benefit all the people of Iraq.

These are not just promises,” he said, “our aim is to build Iraq.

(Source: UPI, Aswat al Iraq, Ministry of Oil)

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Lukoil: New Contract Helps Iraq, Investors


By John Lee.

Lukoil have announced changes to their contract to work on West Qurna-2, following talks with the Iraqi Minister of Oil Abdul Kareem Luaibi.

The new alteration expands the scope of the work to include the Tuba-Fao pipeline, as well as speeding up the process of cost recovery for investors.

The Tuba-Fao pipeline will be 75 miles long when complete and take oil from the West Qurna-2 Tuba tank farm to the Fao tank farm where the oil will be loaded to a single point ship mooring for export.

Of the expanded scope of the work on the infrastructure of the giant West Qurna-2 field, Lukoil president Vagit Alekperov (pictured) was upbeat:

“The Iraqi export system requires upgrading to accommodate growing production due to a number of licensing rounds conducted in recent years. The construction of the Tuba-Fao Pipeline will provide for a direct connection between the West Qurna-2 field and the country’s largest export terminal, creating opportunities for further production growth from the field”.

(Source: Rigzone)

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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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