Tag Archive | "South Oil Company (SOC)"

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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Shell’s First Crude from Majnoon


Shell announced today that the Majnoon oilfield it operates in partnership with South Oil Company (SOC), Petronas and Missan Oil in Southern Iraq has successfully exported its first shipment of crude oil to Shell trading, a significant milestone for the oilfield.

The achievement comes as production at the Majnoon oilfield has reached a current average of 210,000 barrels of oil per day, well in excess of the 175,000 barrels per day (bpd) First Commercial Production target which initiates the commencement of cost recovery and was achieved after extensive rehabilitation works at the oilfield.

Hans Nijkamp, Vice President and Chairman of Shell in Iraq, said:

This is a historic event for Iraq’s energy industry. The lifting of Shell’s first oil shipment from Majnoon has great significance to us and our partners in the Government as it is a testimony to our shared progress and signals the start of Majnoon’s long-term journey toward generating further revenue for Iraq’s economy, and as an investment in Iraq’s future.

Mr. Nijkamp added that progress on the Majnoon field would not have been possible without the support of the South Oil Company and our partners Petronas and Missan Oil Company.

Shell and its partners successfully recommenced production from Majnoon in September 2013 following the completion of major overhaul works, including 28 square kilometres of mine clearance, extensive refurbishment of brownfield facilities to meet safety standards, and the construction of a new greenfield central processing facility – the largest to be built in Iraq in the last decade – to allow for increased production capacity. To date, 18 new wells have been drilled, while the project has created more than 2,850 jobs for Iraqi’s from the neighbouring communities.

(Source: Shell)

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West Qurna 2 Begins Production


By John Lee.

Iraq’s giant oil field West Qurna 2, with a minimum 14 billion barrels of recoverable reserves, began production on Saturday as Lukoil opened spigots to put 140,000 barrels a day onto the market.

By the end of the year the field is set to produce 400,000 bpd, putting Iraq on track for its production target for this year of 4 million bpd.

If fully developed, West Qurna 2 could produce 1.2 million bpd for 20 years and the start of production at the field was described as “strategically important” by Lukoil chief executive Vagit Alekperov (pictured.)

Lukoil have a 75% stake in the operation with the remainder owned by Iraq’s South Oil Company.

Some analysts have noted how Iraq’s rising production could spark tensions with OPEC, as the country is now already moving outside of OPEC production quotas, set to keep prices stable.

(Source: Al Arabiya)

 

 

 

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Parsons Presents to South Oil Company


By John Lee.

The South Oil Company (SOC) and Parsons have held a workshop to “identify their capabilities and areas in which it is possible to provide the services, and contribute to the development of the oil industry in Iraq, according to the latest technologies and to ensure that quality requirements“.

Mr. Mohammed Ibrahim, head of industry and buildings for Parsons Middle East and North Africa, said:

The session aims to introduce the company and its potential to work in Iraq and the Middle East and in the world today we are offering our services to the oil ministry and the South Oil Company, and offer our potential in the treatment of the environment, water treatment and infrastructure infrastructure projects in the oil fields.

(Source: Ministry of Oil)

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ExxonMobil Sells Stakes in West Qurna I


By John Lee.

ExxonMobil signed agreements on Thursday with PetroChina for a 25 percent participating interest in the West Qurna I project in Iraq, and with Indonesia’s Pertamina for a 10 percent participating interest in West Qurna I.

ExxonMobil retains 25 percent interest and remains lead contractor.

The transfer has been approved by the South Oil Company, Oil Exploration Company of the Iraqi Ministry of Oil and Shell West Qurna B.V., as members of the West Qurna I contractor consortium.

China is already the top foreign player in Iraq’s oilfields.

(Source: ExxonMobil)

(Picture: Rex Tillerson, chairman, president, and CEO of Exxon )

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British Oil Worker Attacked for ‘Shiite Insult’


By John Lee.

A British employee of security firm G4S has reportedly been injured by a group of workers at a Schlumberger camp near the Rumaila oilfield.

The Daily Star says the man had tried to remove a picture of Imam Ali, and flags and pamphlets commemorating Imam Hussein, venerated figures in Shiite Islam, allegedly cutting them down with a knife.

Reuters reports that the security adviser asked Iraqi workers to take down a flag and banners, and when the workers refused he removed them himself, tearing one portrait Imam Hussein.

In the ensuing row, the security adviser pulled out a gun and fired several shots, wounding an Iraqi worker and drawing dozens of people from a nearby village to join the workers in storming the camp.

The South Oil Company (SOC) said production at Rumaila was not affected, but Schlumberger is said to have suspended its operations in response to this and other incidents in the province.

Video footage of the incident can be seen here.

Baker Hughes has issued force majeure notices in relation to its operations in Basra following protests.

(Sources: Reuters, Daily Star)

(Picture: Rumaila de-gassing station)

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Petrofac Awarded 2nd Phase of Iraq Project


By John Lee.

Oilfield service company Petrofac has announced a contract extension from South Oil Company (SOC) for its Iraq Crude Oil Expansion Project.

The 12-month extension, worth around US$99 million includes the second phase of the project and will see the Company provide an additional scope of operations and maintenance services.

The extension follows the original award made in 2012 for phase one of the project which covered operations and maintenance services on the offshore facilities including an offshore platform, metering station, two single point moorings (SPMs), subsea pipelines and tanker operations, all based 60km offshore the Al Fao Peninsula in Southern Iraq. The extension, relating to phase two, covers two additional single point moorings (SPMs) and a Central Metering and Maintenance Platform (CMMP).

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

Over the past 12 months we’ve achieved some significant milestones on behalf of our customer SOC, including the export of 240 million barrels of oil and one million man-hours worked without a lost time incident (LTI).

“The contract is a great example of project execution including our ability to deliver work successfully and safely in a logistically complex working environment. It also further enhances our position in Iraq, a key geography for our business, and continues a collaborative relationship with a valued customer, SOC.

Dyeyaa Jaafar Hyjam, Director General, Southern Oil Company:

When we awarded this contract in 2012 we stated that increasing the export of crude was a key driver for us and Petrofac has helped us to deliver on that. Petrofac is focused on operational excellence and safe project execution making them an attractive supplier on this strategically important project. I look forward to continuing to meet our safety and export milestones with Petrofac as our partner.

The original contract was awarded in August 2012 for 12 months following a three month mobilization period and was worth approximately US$100 million. The extension comes into effect in November 2013 and there is a further one-year extension option available to SOC.

(Source: Petrofac)

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