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By John Lee.

At its regular meeting in Baghdad on Tuesday, the Iraqi Cabinet received a briefing on negotiations led by Iraq’s Ministry of Oil with ExxonMobil and PetroChina on the Southern Iraq Integrated Project.

In a statement, the government describes the project as "a mega energy and infrastructure scheme consisting of building oil pipelines, storage facilities and a seawater supply project to inject water from the Gulf into reservoirs to increase oil production and Iraq’s export capacity."

According to Reuters, Iraq is close to signing the $53-billion, 30-year agreement, from which it expects to make $400 billion over the life of the project.

It quotes the Prime Minister as saying that it will involve increasing production at the Nahr Bin Umar and Artawi oilfields from around 125,000 barrels per day (bpd) now to 500,000 bpd.

(Sources: Iraqi Cabinet, Reuters)

UK-based Amarinth has secured its first order from Iraq Gates Contracting Company (IGCC) for $410K of API 610 OH1 pumps on 22-weeks FCA delivery for the Rumaila oil field, Iraq.

This first order for Amarinth from Iraq Gates Contracting Company (IGCC) of $410K is for ten API 610 OH1 condensate transfer pumps with Plan 11 and Plan 52 double seals and seal support systems.

The pumps are destined for the Rumaila oil field, a super-giant oil field located 50km to the west of the city of Basra, southern Iraq. The Rumaila field is estimated to contain 17 billion barrels, the largest oil field ever discovered in Iraq and considered the third largest oil field in the world. It is managed by the Rumaila Operating Organization (ROO), a joint venture between BOC, BP, PetroChina and SOMO.

IGCC approached Amarinth for the ten identical API 610 OH1 pumps as they were required on an extremely short lead time of 22-weeks Free Carriage Aboard (FCA) from the sea-port in the UK.

This is the sort of challenge that Amarinth has successfully delivered against many times in the past for Middle East oil and gas companies and will leave Amarinth just 20 weeks for the design, manufacture and testing of the pumps and seal support systems, including full documentation and NACE certification for all process wetted parts.

Oliver Brigginshaw, Managing Director of Amarinth, commented:

“This latest order from Iraq underlines our on-going commitment and investment in the region and we are delighted that IGCC approached us to supply these pumps recognising that we were the only manufacturer that could deliver bespoke API 610 pumps in the lead time they required.

"In fact, we are seeing that many of the new projects in the Middle East need API 610 pumps on very short lead times as operators start to increase production again, which Amarinth are in a very good position to fulfil.”

(Source: Amarinth)

By John Lee.

According to a report from Platts, Iraq has reached "key preliminary terms" with ExxonMobil and PetroChina on the South Integrated Project.

The project involves the development of the Nahr Bin Umar and Ratawi oil fields in southern Iraq, with gas plants at the two fields, a multi-field water injection project, storage, pipelines and export infrastructure.

Abdul Mahdi al-Ameedi, director general of the Petroleum Contracts and Licensing Directorate (PCLD), told S&P Global Platts that the scope of work, the schedule, and the cost have been agreed to.

More details here.

(Source: Platts)

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has officially opened the Rumaila power station.

The construction of the 235 MW plant was supervised by the China Petroleum Engineering & Construction Corporation (CPECC), the engineering and construction subsidiary of the China National Petroleum Corporation (CNPC).

The Minister said the project is considered as one of the largest projects organized by the Rumaila Operating Organization (ROO), which includes Basrah Oil Company (BOC), BP and PetroChina.

(Source: Ministry of Oil)

By John Lee.

The Basra Oil Company (BOC) is reportedly preparing to tender for a water injection project in Iraq if talks with ExxonMobil and PetroChina fail.

Reuters quotes the head of the Oil Ministry's Petroleum Contracts and Licensing Directorate (PCLD), Abdul Mahdi al-Ameedi, as telling reporters at the CWC Iraq Petroleum Conference in Berlin, “we cannot wait for a longer time unless Exxon Mobil accepts the deal for the benefit of the two parties.”

He added that the delay in negotiations was partly related to initial production rates from the Nahr Bin Umar and Artawi oilfields.

(Source: Reuters )

By John Lee.

In its 2017 Results, Baker Hughes, a GE company (BHGE) has said that rig count growth in Iraq and the UAE offset declines in other Middle Eastern markets.

During the year, the company secured what it describes as the largest-ever turbomachinery and process solutions agreement with PetroChina for the provision of its proven turbine generators for the Halfaya oilfield in Iraq.

In a statement, the company said the agreement strengthens BHGE’s presence in Iraq and demonstrates the Company’s dedication to the region.

(Source: BHGE)

Iraq will rely on a newly formed state oil company to develop the Nassiriya oil field, leaving only the nearby refinery project for investors, ending more than six years of pitching the two as a combined mega-project, according to Iraq Oil Report.

Most recently, Iraq had been in direct negotiations with PetroChina and the China National Offshore Oil Corp. (CNOOC) to build a 150,000 barrel per day (bpd) refinery and develop the 4.4 billion barrel Nassiriya oil field - the two components of the Nassiriya Integrated Project.

The international engineering and construction firm Foster Wheeler completed a Front End Engineering and Design (FEED) study for the refinery.

Read the full report from Iraq Oil Report here (subscription required).

(Source: Iraq Oil Report)

Baker Hughes, a GE company, has signed an agreement for the provision of turbine generators to PetroChina International Iraq, in the biggest Turbomachinery & Process Solutions (TPS) agreement ever between the two companies. 

BHGE will deliver its Frame 6B gas turbine electric generator trains to support power generation for the Halfaya oilfield located in the Maysan Governorate. The equipment will generate 150 MW of power for the project and leverage support from BHGE's existing local and global workforce. The components of the turbo generator units will be manufactured and assembled at BHGE's Nuovo Pignone facility in Florence, Italy.

Rami Qasem, President & CEO of MENAT & India, BHGE, said:

“This deal strengthens our local footprint in Iraq and further demonstrates our dedication to the region where we see great promise and have formed strong partnerships through ongoing projects and the development of local skills.

“The provision of our field-proven turbomachinery solutions enables international operators around the globe to safely and stably operate, all while reaching their oil production targets and staying on schedule. This is especially true for this particular contract, as our turbines will provide reliable and efficient energy to the Halfaya field and further support the sustainability of Iraq’s ongoing oil and gas operations.”

BHGE’s Frame 6 turbines are able to operate in extreme conditions and harsh environments across a wide range of applications, and have been proven and tested with more than 55 million operating hours.

The turbines are designed to be fully fuel flexible, possessing the ability to run on a wide range of gas or distillate liquids, including sour gas. This offers valuable cost saving to customers, as the turbines can run on the most economically available fuel for a given operation.  In addition to the Halfaya contract, the turbines have been used in multiple projects in the region.

The Halfaya oilfield was discovered in 1976 with 4.1 billion barrels in reserves and is situated in the southern part of Iraq in the country’s Maysan Governate. The field, operated by PetroChina International Iraq, currently produces approx. 200,000 barrels per day.

This agreement with PetroChina International Iraq further strengthens BHGE's presence in the country, where it has contributed to several projects, including power generation support for two of Iraq's largest fields - West Qurna and Rumaila - and retains a local footprint consisting of over 70% Iraqi employees.

BHGE also owns and operates a technical services facility in North Rumaila, which opened in 2013 and was expanded this summer. The facility offers a wide range of testing, repair and refurbishment services and has helped to create local employment opportunities and training for more than 2,000 Iraqi professionals.

(Source: BHGE)

Petrofac has been awarded a contract, valued at around US$30 million, to undertake Project Management Consultancy (PMC) services for the Halfaya Contract Area (Halfaya) in southern Iraq.

Working in support of PetroChina International Iraq FZE (PetroChina), as the lead operator of Halfaya, Petrofac’s Engineering and Production Services (EPS) East business will undertake project management services for five years.

Petrofac is responsible for managing and supervising the development and progress of several engineering, procurement and construction work scopes including: the central processing facility, power plant expansion, gas process plant and all associated facilities. For each work scope, activities will include the management of detailed design, procurement, construction and commissioning.

Manivannan Rajapathy, Managing Director, Petrofac EPS East said:

“This important award reflects our growing capabilities in a core market. Through the provision of PMC services, we are demonstrating our competence and capabilities to oversee large programmes of work. This builds upon our long track record for in-country execution for existing clients, through the delivery of engineering, operations, maintenance and training activities.

“We are pleased to have the opportunity to support PetroChina and the Halfaya partners in the delivery of this key infrastructure project. Our focus is to support sustained production, through the successful conclusion of each phase, towards the overall production plateau target of around 400,000 barrels per day.”

(Source: Petrofac)

By John Lee.

The Head of the Missan Oil Company (MOC) has said that the third and final phase of work to expand the Halfaya oil field has been launched.

Adnan Noshi told Reuters that the target is to double Halfaya's capacity to 400,000 barrels per day in 2018.

He said Halfaya, operated by PetroChina, is Maysan Oil's largest field, currently producing 200,000 of the MOC's total output of 380,000 bpd.

(Source: Reuters)