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By John Lee.

Iraq has reportedly "put on hold" it oil contract with China's Zhenhua Oil.

The multi-billion-dollar agreement would have seen Zhenhua pre-pay Iraq's State Oil Marketing Organization (SOMO) for a regular supply of crude oil.

Oil prices have risen significantly since the deal was struck.

More here.

(Source: S&P Global)

By John Lee.

The Dhi Qar Oil Company (DQOC) has reportedly said that Litasco, the international marketing and trading company of Russia's LUKOIL, will finance the doubling of capacity at the Nassiriyah oil field from 100,000 barrels per day (bpd) to 200,000 bpd.

The project includes a 42-kilometer pipeline, and will be a joint venture between the State Company for Oil Projects (SCOP) and Italy's Progetti.

(Source: Shafaq)

By John Lee.

Russia's Gazprom Neft has produced its four-millionth tonne (32-millionth barrel) of oil since starting commercial development of the Sarqala field in the Kurdistan Region of Iraq (KRI).

Three wells are now in operation at this field, with daily production running at about 3,100 tonnes (24,000 barrels) per day.

Limitations arising under the COVID-19 pandemic notwithstanding, Gazprom Neft Middle East B.V. is continuing to develop this field and is implementing a number of key production projects, including drilling a fourth well, the commissioning of which will increase production to 4,100 (around 32,000 barrels) per day. The commissioning of this well is scheduled for the first half of 2021.

Gazprom Neft Middle East B.V. is involved in this project with the Government of the KRI as part of the latter's development of the region's energy supply system. Associated petroleum gas (APG) produced at the Sarqala field will be used as fuel for energy facilities currently under development by government authorities.

This programme envisages the construction of a 4.5-kilometre gas pipeline to connect the field to power generation facilities. Implementing this project will not only increase APG utilisation at the field, but will also facilitate energy supplies to several districts within the KRI.

(Source: Gazprom Neft)

By John Lee.

Iraq has reportedly cancelled a contract to develop its Mansuriya gas field near the Iranian border.

Iraq Business News understands that, under a deal agreed in 2010, the field was being developed by Turkish Petroleum (TPAO) (37.5%), Iraqi Oil Exploration Company (25%), Kuwait Energy (KEC) (22.5%), and Kogas (15%).

According to Reuters, the consortium halted development in 2014 due to security concerns after the so-called Islamic State group overran large parts of Iraq.

Writing in Oil Price, Simon Watkins says "Russia has again made it clear that it is extremely interested in taking over the development contract of Iraq's Mansuriya gas field following the recent termination of the contract with a consortium led by Turkey's state-owned TPAO."

More here and here.

(Sources: Reuters, Oil Price)

The Prime Minister of Iraq, Mustafa Al-Kadhimi, and Iraqi Oil Minister Ihsan Abdul Jabbar Ismail, received a delegation from LUKOIL on Monday, headed by its President Vagit Alekperov (pictured).

The meeting was also attended by the Russian Ambassador Maxim Maximov.

The parties discussed the progress of the West Qurna-2 project and Eridu field (Block-10), as well as prospects for cooperation in other areas in Iraq.

Prime Minister praised LUKOIL's operations in the Republic and spoke in favor of expanding cooperation and coordination between LUKOIL and the Iraqi Oil Ministry.

(Source: Lukoil)

By John Lee.

The Ambassador of Republic of Iraq in London, Mr. Muhammad Jaafar Al-Sadr, chaired a meeting with representatives of the British pharmaceutical group, AstraZeneca, which is a leading company in Coronavirus vaccine in cooperation with the University of Oxford in Britain, through video conference.

The meeting discussed the possibility of Iraq obtaining adequate doses of the vaccine produced by the company that are being developed, in addition to the possibility of the early launch of the vaccine.

During the meeting, the Ambassador thanked the group for the efforts made by the company to produce the vaccine, which would be a scientific achievement to protect humanity from the risks of infection with the Coronavirus, stressing Iraq's desire to obtain the vaccine after its production.

While the company has expressed its readiness to supply Iraq with the vaccine after the last experimental stages which will be ready by the end of this year, especially after making sure of its safety, effectiveness and compliance with international health standards. The company is conducting clinical trials of the vaccine in several regions of the world, including the United States, Russia and a number of Latin American countries.

This meeting comes within a series of meetings held by the embassy with the company and other pharmaceutical companies in order to ensure that Iraq receives the vaccine in the start of its production.

(Source: Iraqi Ministry of Foreign Affairs)

By John Lee.

The director of the China National Offshore Oil Corporation (CNOOC) has presented his company's plans for the development of the Bazergan [Buzurgan] oil field in Maysan to Iraq's Oil Minister Ihsan Abdul-Jabbar.

In a separate meeting on Wednesday, the Minister also received the CEO of Lukoil in Iraq, Igor Zubarev, who gave a summary of the company's activities and plans in Iraq.

(Source: Ministry of Oil)

Iranian Oil Minister Bijan Namdar Zangeneh and his Iraqi counterpart Ihsan Abdul Jabbar discussed ways to promote cooperation between the two neighbors in the oil industry.

In a telephone conversation, Zangeneh and Abdul Jabbar called for the expansion of oil cooperation between the two Muslim neighbors.

The Iranian minister congratulated Abdul Jabbar on taking office as the new oil minister of Iraq after formation of a new government under Prime Minister Mustafa Al-Kadhimi's leadership, according to the Iranian government's official website.

Abdul Jabbar said Iraq's daily export of crude in June has reached 2.8 million barrels.

The Iraqi oil minister also emphasized that it would be in Iraq's interests to abide by a production cut agreement between OPEC and its allies, known as OPEC+, saying the Iraqi Kurdistan Region has been directed to comply with the OPEC+ deal and cut its share of oil output.

The OPEC members, Russia and other oil producing nations agreed in April to cut output by around 10% of global supply to support oil prices amid the coronavirus pandemic.

(Source: Tasnim, under Creative Commons licence)

By John Lee.

Petrel Resources Plc (Lon: PET) has announce that the company has arranged a placing with ETX Capital to raise £250,000 (before expenses) via the issue of 7,692,308 new ordinary shares (the "Placing Shares") at a placing price of 3.25p per Placing Share.

Subject to the appointment of responsible officials by the new Iraqi Government, and the lifting of Covid-19 restrictions, Petrel expects to enter into re-qualification discussions with the appropriate decision-makers at the Ministry of Oil.  Discussions may cover Petrel's past studies on the Merjan-Kifl-West Kifl area, and the Mesozoic and Paleozoic potential of the Western Desert.

Pending, such discussions, this investment will strengthen the company's Balance Sheet.

David Horgan, Director, commented:

"Petrel is fortunate to have maintained strong relationships with Ministry of Oil officials, even during the darkest hours of sanctions, invasion, conflict, and Covid-19.  Our Iraqi Director, Riadh, is a son of the renowned "driller", Mahmoud Ahmed.  In Iraq we found World-class geology.

"Prevailing circumstances obliged Petrel temporarily to dis-engage from on-the-ground operations in 2010.  We saw too many challenges - both governance, political and financial - to justify risking Shareholders' funds given the then-limited upside available."

"Recent events are transforming this situation. A three-way rivalry among Saudi Arabia, Russia and American producers - aggravated by an unprecedented demand-hit caused by Covid-19 - crashed the oil price.  This cripples high cost operations offshore, and unconventional reservoirs.  As a low-cost producer, Iraq is now well positioned to exploit this historic opportunity.  I believe that Petrel has the experience, contacts and board commitment to help drive forward the next phase of Iraqi oil development."

(Source: Petrel Resources)

From Middle East Monitor, under a Creative Commons licence. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

The Russian Ambassador to Iraq, Maxim Maksimov [Maximov] (pictured), said that Russia is seeking to invest heavily in Al-Mansouriya gas field, in the Diyala governorate.

Maksimov said in a press statement yesterday that "Russian companies are willing to mobilise significant funds and have submitted an investment tender for Al-Mansouriya gas field in Diyala."

 He added that "three Russian companies in Iraq produce about 600,000 barrels of oil per day, including Gazprom, which operates in the Badra oil field in Wasit Governorate with a production capacity of 100,000 barrels of oil per day, in addition to 400,000 barrels in the [West Qurna 2] field."

The Russian ambassador stated that his country is paying special attention to the Russian-Iraqi Commission.

Moscow has assigned its deputy prime minister to head the Russian delegation, in preparation for a very important meeting between the two sides, which was postponed due to the coronavirus crisis.