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By John Lee.

The Ministry of Oil has inaugurated the Central Gas Processing Facility at the Al-Faihaa [Fayhaa, Block 9] oil field in Basra, with a capacity of 130 million standard cubic feet per day (MMSCFD).

The launch was conducted via video link by Prime Minister Mohammed Shia Al-Sudani, in the presence of Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul Ghani.

The Prime Minister praised the engineers and technical teams who contributed to the successful completion of this and other gas-related projects, which align with the government's strategy to reduce gas flaring, enhance oil sector development, diversify revenues, and protect the environment.

Minister Abdul Ghani reiterated the Ministry's commitment to investing in associated gas from oil fields to drive industrial development and boost national economic returns through increased and diversified income streams. He emphasised that gas projects such as this are critical for ensuring a stable fuel supply for electricity generation.

The inauguration was also attended by Oil Ministry Undersecretaries Basim Mohammed Khudair (Extraction Affairs) and Izzat Saber Ismail (Gas Affairs), the Director General of South Gas Company, and officials from Basra's local government and the broader oil sector.

Al Faihaa field is also known as Block 9. According to Wood Mackenzie, it is an extension of Iran's giant Yadavaran field.

In January 2022, Kuwait Energy Basra Limited (KE Basra), an indirect wholly-owned subsidiary of Hong Kong-based United Energy Group (UEG), entered into an EPCC (engineering, procurement, construction and commissioning) contract with a Chinese consortium to provide a central processing facility including oil treatment system and auxiliary systems at the field. The contractor was a consortium consisting of China CAMC Engineering (CAMCE) and CNOOC Petrochemical Engineering.

(Source: Ministry of Oil)

By John Lee.

France's Vallourec has secured two contracts to supply Oil Country Tubular Goods (OCTG) to support the drilling operations of China National Offshore Oil Corporation (CNOOC) and PetroChina in Iraq.

According to a statement from the company, these contracts carry potential revenue of over $130 million [IQD 170 billion].

The contracts cover the supply of carbon steel and Super-13Cr steel OCTG products with VAM® premium connections. Deliveries are scheduled throughout 2025 and 2026 to support Iraq's increasing drilling activities.

The company notes that demand is rising for premium OCTG material in Iraq, as the country, "holds some of the world's largest oil reserves with several super-giant oil fields that are increasingly being developed by international oil and gas companies."

Philippe Guillemot (pictured), Chairman of the Board of Directors and CEO of the Vallourec Group, commented:

"These contracts come in the context of recent announcements from Iraq's Ministry of Oil to increase the country's oil production capacity from 4.1M bpd in 2025 to 6M bpd in 2029."

CNOOC has interests in the Maysan Oil Fields and Block 7, while PetroChina -- part of China National Petroleum Corporation (CNPC) -- is developing West Qurna 1.

(Source: Vallourec)

By John Lee.

The China National Offshore Oil Corporation (CNOOC) has announced that its wholly owned subsidiary, CNOOC Africa Holding Ltd., has entered into the Exploration, Development & Production Contract (EDPC) with Iraq's state-owned Midland Oil Company for Block 7.

It says the block is mainly located in Diwaniyah governorate, and covers an area of 6,300 square kilometers, adding:

"According to the terms of the contract, the first stage of the exploration period shall be 3 years. CNOOC Africa Holding Ltd. shall hold 100% interests and act as the operator."

Iraq's Ministry of Oil finalised contracts earlier this week for the "fifth-plus" and sixth oil licensing rounds with the successful companies, but the official statement did not mention CNOOC or Block 7.

Click here to find a comprehensive list of oil and gas fields under the control of the Ministry of Oil in Baghdad. This listing covers 67 fields, and has been updated with the results of this week's fifth-plus and sixth licensing rounds. Simply click on any field in the list to find more details.

(Source: CNOOC)

By John Lee.

Iraq's Ministry of Oil has finalised contracts for the "fifth-plus" and sixth oil licensing rounds with the successful companies.

Minister Abdul Ghani highlighted that these agreements, which cover the development of oil and gas fields and exploration blocks across several provinces, are poised to boost Iraq's production capacity by 800-850 million standard cubic feet (mmscf) of gas and 750,000 barrels of crude oil per day.

The Minister noted Iraq's substantial plans to develop untapped exploratory blocks and undeveloped fields in upcoming rounds, with an eye toward increasing the country's reserves of both oil and gas.

According to a statement, these new projects will ensure a stable supply of fuel for power generation, petrochemical industries, and various other sectors, while also creating numerous job opportunities for Iraqi graduates, skilled workers, and craftsmen across different provinces. Collaborations with both international firms and the private sector are expected to drive local employment and economic development.

The Director General of Basra Oil Company, Mr. Bassem Abdulkarim, signed the following development contracts:

• Fao: United Energy Group (UEG)
• Jabal Sanam: Geo-Jade

The Director General of Maysan Oil Company, Mr. Hussein Kazem, signed:

• Ad Daimah: KAR Group

The Acting Director of North Oil Company, Mr. Amer Khalil Ahmed, signed:

• Alan: KAR Group
• Sasan: KAR Group

The Deputy Director General of Dhi Qar Oil Company, Mr. Saeed Saghir Shlakeh, signed:

• Sumer: Sinopec
• Addan: Sinopec [Note that the Ministry of Oil had previously announced that Sinopec bid for the Addan block, but the price was not accepted by the Ministry.]
• Abu Khema: Zhenhua Oil

The Director General of Central Oil Company, Mr. Mohammed Yaseen Hassan, signed:

• Middle Furat (Euphrates): Zhongman ZPEC
• Northern Extension of East Baghdad: Zhongman ZPEC
• Khliesiea: KAR Group
• Qurnain: Zhenhua Oil
• Zurbatiya: Geo-Jade
• Dhufriyah: Anton Oil

This announcement does not mention the signing of a contract for Block 7, which was previously announced has having been won by China National Offshore Oil Corporation (CNOOC). [Update: CNOOC announced on Wednesday 30th October, 2024, that it has entered into the Exploration, Development & Production Contract (EDPC) with Iraq's state-owned Midland Oil Company for Block 7.]

Click here to find a comprehensive list of oil and gas fields under the control of the Ministry of Oil in Baghdad. This listing covers 67 fields, and has been updated with the results of this week's fifth-plus and sixth licensing rounds. Simply click on any field in the list to find more details.

(Source: Ministry of Oil)

By John Lee.

The Iraqi Drilling Company (IDC) has successfully completed drilling two oil wells, one in the East Baghdad South field and another in the Bazargan South field (part of the Maysan fields).

Deputy General Manager Kazem Habash Khalif stated that the company continues to implement its ambitious plans using advanced drilling techniques while adhering to set timelines.

The well in East Baghdad South was drilled to a depth of 3,749 meters under a contract with China's EBS Petroleum [a body registered in Iraq to conduct the petroleum operations on behalf of ZhenHua Oil] to drill 27 wells, with technical support from China Oilfield Services Limited (COSL).

The Bazargan well in Maysan province reached a depth of 4,072 meters, under a contract with Chinese firm China National Offshore Oil Corporation (CNOOC).

(Source: Ministry of Oil)

By John Lee.

Hayan Abdul Ghani, Iraq's Minister of Oil, has inaugurated the first phase of the Central Processing Facility (CPF) at the Al-Faihaa [Fayhaa] oil field in Basra, with a capacity of 100,000 barrels per day.

According to a statement from the Ministry of Oil, this marks the transition of Al-Faihaa from an exploratory site to a productive oil field, targeting three oil reservoirs: Yamama, Mishrif, and Zubair.

Abdul Ghani highlighted the ministry's plan to invest in associated gas from the field by constructing a gas processing plant with a capacity of 125 million standard cubic feet per day (Mscfd), expected to be completed by the end of 2024. This initiative aligns with the government's program to enhance the oil and gas industry and increase national revenue.

The inauguration was attended by members of parliament, ministry officials, representatives from oil companies, local dignitaries, and residents. Abdul Ghani's visit to Basra also included the opening of several other oil and service projects.

Al Faihaa field is also known as Block 9. According to Wood Mackenzie, it is an extension of Iran's giant Yadavaran field.

In January 2022, Kuwait Energy Basra Limited (KE Basra), an indirect wholly-owned subsidiary of Hong Kong-based United Energy Group (UEG), entered into an EPCC (engineering, procurement, construction and commissioning) contract with a Chinese consortium to provide a central processing facility including oil treatment system and auxiliary systems at the field. The contractor was a consortium consisting of China CAMC Engineering (CAMCE) and CNOOC Petrochemical Engineering.

(Source: Ministry of Oil)

By John Lee.

The Ministry's Deputy Minister for Gas Affairs has inspected the gas project in Block 9 (Al-Fayhaa, Faihaa) in Basra province.

Mr. Ezzat Saber said he hoped to utilize 130 million cubic feet per day of gas from the field by year-end, along with equipping power stations to process 100 million cubic feet per day of dry gas and producing 1100 tons of liquid gas.

He held a meeting with officials from Basra Oil and Gas Company and the Chinese company United Energy Group (UEG), urging them to adhere to project timelines due to its importance in supplying power stations with new quantities to increase citizen service hours.

Two years ago, Kuwait Energy Basra Limited (KE Basra), an indirect wholly-owned subsidiary of UEG, entered into an EPCC (engineering, procurement, construction and commissioning) contract with a Chinese consortium to provide a central processing facility including oil treatment system and auxiliary systems at the field. The contractor was a consortium consisting of China CAMC Engineering (CAMCE) and CNOOC Petrochemical Engineering.

Earlier this week, UEG won the contract to develop Iraq's Fao field.

According to Wood Mackenzie, Block 9 is an extension of Iran's giant Yadavaran field.

(Source: Ministry of Oil)

By John Lee.

Iraq's Ministry of Oil has concluded its fifth-plus and sixth oil and gas licensing rounds, with Chinese companies winning most of the fields awarded:

Fifth-plus licensing round:

• Abu Khema: Zhenhua Oil
• Ad Daimah: KAR Group
• Alan: KAR Group
• Block 7: China National Offshore Oil Corporation (CNOOC)
• Dhufriyah: Anton Oil
• Fao: United Energy Group (UEG)
• Jabal Sanam: Geo-Jade
• Middle Furat (Euphrates): Zhongman ZPEC
• Northern Extension of East Baghdad: Zhongman ZPEC
• Sasan: KAR Group
• Zurbatiya: Geo-Jade

No bids were received for the following blocks: Block 11, Pulkhana, Qalat Salah, Arabian Gulf, Shihabi

Sixth licensing round:

• Khliesiea: KAR Group
• Qurnain: Zhenhua Oil
• Sumer: Sinopec

No bids were received for the following blocks: Tel Hajar, Anah, Anbar, Anz, Okashat, North Rutba, South Rutba, Tobal, Waleed, Shaiban.

Sinopec bid for the Addan block, but the price was not accepted by the Ministry.

KAR Group, based in Erbil, was the only non-Chinese company to be granted a contract.

Click here to find a comprehensive list of oil and gas fields under the control of the Ministry of Oil in Baghdad. This listing covers 67 fields, and has been updated with the results of this week's fifth-plus and sixth licensing rounds. Simply click on any field in the list to find more details.

(Source: Ministry of Oil)

By John Lee.

The Iraqi Drilling Company (IDC) has successfully completed the drilling of the oil well EBS-68 as part of the contract with the Chinese company Zhenhua to drill 27 oil wells at the East Baghdad field, in collaboration with China Oilfield Services Limited (COSL), a division of the China National Offshore Oil Corporation (CNOOC),

The drilling operations were carried out using the IDC-36 drilling rig, with a capacity of 1500 horsepower, employing horizontal drilling technique at a 90-degree inclination angle to a depth of 3548 meters.

This marks the fifteenth well completed by the company as part of this project.

(Source: Ministry of Oil)

By John Lee.

The Iraqi Drilling Company (IDC) has successfully completed the drilling of oil well EBS-64 as part of the contract with the Chinese company Zhenhua, aiming to drill 27 oil wells at the East Baghdad field.

The operation, conducted in collaboration with China Oilfield Services Limited (COSL), a division of the China National Offshore Oil Corporation (CNOOC), utilized the IDC-36 drilling rig with a horsepower of 1500, employing a horizontal drilling approach at a 90-degree angle and reaching a depth of 3576 meters.

EBS Petroleum, the Chinese field operator, is registered in Iraq to conduct petroleum operations on behalf of China ZhenHua Oil.

(Source: Ministry of Oil)