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By John Lee.

The state-owned Midland Oil Company (MdOC) has announced the signing of a contract to drill eight wells (4+4) in the Naft Khana block in Diyala province.

The deal was signed between NK Petroleum Limited, the block's operator, and a consortium comprising Zhongman Petroleum (ZPEC) and H&L Petroleum DMCC, which Iraq Business News understands to be Chinese owned.

The signing ceremony was overseen by Midland Oil's Director General, Eng. Mohammed Yassin Hassan, in the presence of senior technical and administrative officials, as well as the head of the Joint Management Committee, Mr. Firas Nadhim Hassan.

The wells, with planned depths ranging from 3,500 to 5,000 metres, will start with the drilling of the first well at Tel Ghazal field in the near future. Eng. Hassan emphasised that this step follows extensive technical and field preparations, including 2D and 3D seismic surveys, mine clearance, and technical and non-technical assessments, creating a safe operating environment for the project.

He further instructed that all logistical and technical challenges be addressed swiftly in coordination with relevant authorities to ensure timely execution of the drilling programme and expedite the transition to production.

The Naft Khana block, covering an area of 2,450 km², contains four oil and gas fields and eight exploration structures. Its development is expected to increase gas supply for power generation, create jobs for local communities, and contribute positively to the national economy.

China's Geo-Jade Petroleum was awarded the contract to develop the field in the fifth energy licensing round.

(Source: MdOC)

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.

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.

China's Zhongman Petroleum and Natural Gas Group Corporation (ZPEC) has announced that it has received a letter from Iraq's Petroleum Contracts and Licensing Directorate (PCLD) confirming the successful approval of its qualifications for Iraq's oil and gas field development and operations.

In a statement on Thursday to the Shanghai Stock Exchange, the company said that this qualification is a prerequisite for its participation in the exploration and development of Iraq's oil and gas blocks. It added:

"The Iraqi Petroleum Ministry rigorously evaluated the Company in various aspects, including oil and gas field management, financial management, financing capability, legal risk management, operational technology capability, environmental protection, safety assurance, personnel training, and more.

"The smooth approval of this qualification represents the Iraqi government's recognition of the Company's comprehensive strength in the field of oil and gas field exploration and development.

"Obtaining this qualification will facilitate the Company's investment and development opportunities in high-quality oil and gas fields in Iraq, allowing for continuous expansion and improvement of the Company's oil and gas exploration and development portfolio, injecting new momentum into its long-term stable development.

"In the future, the Company will conduct comprehensive assessments of relevant oil and gas field blocks in accordance with the bid documents publicly released by the Iraqi Petroleum Ministry and make prudent decisions considering the host country's investment environment and the Company's actual circumstances. "

The company has already been active in Iraq, having won several drilling contracts in recent years.

(Source: Zhongman Petroleum)

By John Lee.

China's Zhongman Petroleum and Natural Gas Group Corporation (ZPEC) has signed a major drilling engineering service contract for Iraq's giant Rumaila oilfield.

The contract was signed on Sunday with the Basra Energy Company Limited (BECL), which was set up in 2021 to operate the field, and announced to the markets on Wednesday.

Contract amount is expected to be approximately USD 390 million (approx. RMB 2.796 billion), and the deal is expected to last 4.5 years.

The company said it expects the contract to have a significant positive impact on the company's business from 2024 to 2028.

(Source: Shanghai Stock Exchange)

By John Lee.

China's Zhongman Petroleum and Natural Gas Group Corporation (ZPEC) has signed a partnership contract with the Iraqi Drilling Company (IDC).

The Director General of the IDC, Basem Abdul Karim, said that the contract includes the provision of support and completion of the work associated with drilling and reclamation operations at Iraqi oil fields.

It also includes the development of personnel and the transfer of expertise and technology.

(Source: Ministry of Oil)

By John Lee.

China's Zhongman Petroleum and Natural Gas Group Corp., Ltd. (ZPEC) has reportedly started drilling its first oil well in Iraq's eastern province of Diyala on Tuesday.

The mayor of Qazaniya told Xinhua that it is more than fifty years since an oil well was drilled in Diyala province.

Mazin al-Khuzaie added that the oil companies operating in Block 8 will contribute $4 million to a program to finance service projects in Qazaniya. The field is being developed by Pakistan Petroleum (PPL).

(Source: Xinhua)

By John Lee.

Bashneft, a subsidiary of Russia's Rosneft, has found oil at its Salman-1 exploratory well at Block 12 in Iraq.

In a statement, the company said that an exploration well was successfully drilled to depth 4,277 metres; oil was found, "which gives grounds for expecting the discovery of industrial reserves".

Rosneft said it views this discovery as an important milestone in the development of exploration and production projects abroad.

China-based company Zhongman Petroleum and Natural Gas Group (ZPEC) was previously announced as the general drilling contractor.

(Source: Rosneft)

By John Lee.

China's Zhongman Petroleum and Natural Gas Group (ZPEC) and BP Iraq have signed an integrated drilling service contract for 15 wells at Iraq's Rumaila oilfield

The contract amount is worth approximately $60 million.

It is understood that the project was publicly tendered in November 2017. According to a statement from the company, several well-known oil service companies, including the four major oil service companies, participated in the bidding.

(Source: ZPEC)