Tag Archive | "South Oil Company (SOC)"

Iraq has Lost Billions from Gas Flaring

By John Lee.

The former head of the Energy Studies Department at the Opec Secretariat in Vienna has said that delays in capturing associated gas from Iraq’s oilfields is costing the country billions of dollars.

Saadallah Al Fathi told GulfNews.com that the Basra Gas Company (BGC) is very slow in rehabilitating and maintaining the plants at North Rumaila and Khor Zubair.

The Basra Gas Company (BGC) is a $17.2-billion joint venture set up in November 2011 to gather and process gas from the three southern oilfields of Rumaila, West Qurna 1, and Zubair; it is owned by the Iraqi South Gas Company (SGC) (51%), Shell (44%) and Mitsubishi (5%).

Al-Fathi added:

Only in April 2014 did the company award the technical studies of a new gas plant in Ratawi of 500 mcfd capacity, which would cost $2 billion. But it is too little compared with gas production now assuming current facilities are completely rehabilitated.

“By the time the plant is ready, it will probably be five years from now and gas flaring would continue. Iraq probably needs four of such plants if flaring is to be avoided and electricity demand is satisfied.

“This is what prompted the IEA in June 2012 to say that the implied value of the gas flared to 2020 would be $70 to $100 billion and that ‘This lost value provides a compelling reason for Iraq to move as quickly as it can to make early additions to gas processing capacity’.”

(Source: GulfNews.com)

Posted in Oil & GasComments (12)

Parsons Wins SOC Seawater Supply Project

By John Lee.

Parsons has announced that it was recently awarded the front-end engineering design (FEED) for South Oil Company’s Common Seawater Supply Project in southern Iraq.

This landmark project will provide 12.5 million barrels of water per day (bwpd) of treated seawater to oilfields in southern Iraq.

Parsons’ scope of work includes conducting 14 optimization studies and preparing the FEED for water intake and outfall structures, an approximate 500‑meter shipping channel and offloading facility, a 12.5‑million‑bwpd seawater treatment facility, and a gas turbine power plant.

Other support structures included in the FEED are living accommodations; administration buildings; potable water and sewage treatment systems; security, clinic, maintenance, and warehouse facilities; an emergency station; a mosque; and a helipad. Parsons will also design, construct, and operate a 9,200‑bwpd pilot plant at the site.

Parsons is pleased to be engaged in the design of this facility, which is one of the largest facilities of its kind worldwide. Providing treated seawater to southern Iraqi oilfields will ensure proper oil reservoir maintenance and maximize oil recovery,” said Virginia Grebbien, Parsons Group President.

(Source: Parsons)

Posted in Construction & Engineering, Oil & GasComments (6)

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)

Posted in Oil & GasComments (8)

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)


Posted in Oil & GasComments (7)

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)

Posted in Oil & GasComments Off

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)

Posted in Oil & GasComments Off

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)

Posted in Oil & GasComments Off

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)

Posted in Oil & GasComments Off

IBN Newsletter 'FREE Weekly Subscription'

Advertise with IBN