Tag Archive | "South Oil Company (SOC)"

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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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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