Custom Search

By John Lee.

Iraq's State Oil Marketing Organization (SOMO) and Russia's Litasco — Lukoil‘s international marketing and trading arm — have set up a joint oil trading company in Dubai.

A source told Reuters that the new venture, LIMA Energy, is building a team to work at the Dubai Multi Commodities Centre (DMCC) to trade in crude oil from Iraq, Russian and other countries, and will lift the first cargo of Iraqi crude this month.

It is understood that up to 10 SOMO members of staff, including its head of shipping, could be seconded to the new company.

Last month, Iraq's Ministry of Oil confirmed that SOMO had formed a joint venture with Litasco to market crude oil.

(Source: Reuters)

Russia's LUKOIL has reported that it has completed a field 3D seismic survey at West Qurna-2 field.

The survey covered an area of about 450 square kilometers. The Company has fulfilled all of its contractual obligations to the Ministry of Oil of Iraq.

The high-quality seismic data obtained are required for the updating of the field’s geological model, both for the discovered formations and prospective horizons. The field data will soon be submitted for processing to a contractor, BGP, a division of the China National Petroleum Corporation (CNPC).

3D seismic acquisition at West Qurna-2 began in 2010. However, the completion of the field stage of work was delayed because foreign contractors did not have any work experience in the region. In 2014, following long negotiations, the Iraqi Oil Exploration Company (a division of the Ministry of Oil of Iraq) was chosen as seismic acquisition contractor.

In spite of high security requirements in the area of work, the contractor managed to accomplish all goals of the survey. Every day, about 1,000 people, including up to 700 workers from local tribes residing in the contract area, were involved in the operations at their height.

(Source: Lukoil)

Trump Orders Missile Attack in Retaliation for Syrian Chemical Strikes

The United States fired Tomahawk missiles into Syria today in retaliation for the regime of Bashar Assad using nerve agents to attack his own people.

President Donald J. Trump ordered the attack on Al-Shayrat Air Base, the base from which the chemical attack on Syria’s Idlib province was launched. The missiles were launched from U.S. Navy ships in the Eastern Mediterranean Sea.

The attack is in retaliation for the Syrian dictator for using banned chemical agents in the April 4 attack.

“Bashar al-Assad launched a horrible chemical weapons attack on innocent civilians,” Trump said in a statement to the nation. “Using a deadly nerve agent, Assad choked out the lives of helpless men, women and children. It was a slow and brutal death for so many. Even beautiful babies were cruelly murdered in this very barbaric attack. No child of God should ever suffer such horror.”

Vital National Security Interest

Trump ordered the targeted military strike on the airfield that launched the attack. “It is in the vital national security interest of the United States to prevent and deter the spread and use of deadly chemical weapons,” the president said.

No one disputes that Syria used banned chemical weapons of the people of Idlib, he said, adding that this is a violation of the Chemical Weapons Convention. Syria also ignored United Nations Security Council resolutions.

“Years of previous attempts at changing Assad’s behavior have all failed and failed very dramatically,” Trump said. “As a result, the refugee crisis continues to deepen and the region continues to destabilize, threatening the United States and its allies.”

Trump called on all civilized nations to join the United States in seeking an end to the slaughter in Syria, and to end the threat terrorism poses in the blighted nation.

Details of Strike

Shortly after the president’s address, Pentagon spokesman Navy Capt. Jeff Davis issued a statement providing details of the strike. It took place at about 8:40 p.m. EDT -- 4:40 a.m.  April 7 in Syria, he said.

By John Lee.

Iraq's State Oil Marketing Organization (SOMO) and Russia's Lukoil have formed a joint venture to market crude oil.

In a statement, the Iraqi Oil Ministry said Litasco -- Lukoil‘s international marketing and trading arm -- would help sell Iraqi crude and train Iraqi staff in marketing.

(Source: Ministry of Oil)

By Hamdi Malik for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

Iraqi Prime Minister Haider al-Abadi said recently that any group taking up arms in Iraq outside the state's official framework will be considered outlaws. However, it seems at least some of the factions fighting under the banner of the Popular Mobilization Units (PMU) in Iraq would not obey Abadi's order.

On March 22, Abadi spoke at a meeting of the Global Coalition to Counter ISIS (Islamic State, or IS) in Washington. Also during his trip, he told the media that IS will be eliminated from Iraq's cities "within weeks."

What will happen then? Hashim al-Musawi, the spokesman for Iran-controlled, Shiite Iraq militia known as the Islamic Resistance Movement in Iraq (al-Nojaba), announced earlier in the month the formation of the Golan Liberation Brigade. But the announcement appeared to be more a declaration that Iran-affiliated Iraqi militias will be ready to take on a greater role in the region once IS is gone. (In addition, Musawi threatened to take military action against Turkish forces stationed near Mosul if they refuse to leave Iraq.)

The brigade announcement carried great symbolism, as the press conference was held in the office of the Iranian news agency Tasnim, which supports the Islamic Revolutionary Guard Corps (IRGC) in Tehran.

Musawi also criticized the United States and Saudi Arabia, stressing that al-Nojaba “will not drop its weapons as long as the region is still threatened." Al-Nojaba will continue its endeavor to reclaim the Golan Heights in Syria from Israel, he added.

Three days after this announcement, a leader of al-Nojaba had something to say on the subject. The militia's secretary-general, Sheikh Akram al-Kaabi, said March 11, “The Golan Liberation Brigade's formation is not propaganda, but one of the Islamic resistance’s true objectives.” He added, “The resistance is capable of beating the 'axis of evil' and the Zionist entity," referring to Israel, Saudi Arabia and the United States.

This isn't the first time Iran-affiliated Iraqi parties have talked about taking action outside Iraq, in line with Iran’s foreign policy in the region.

Gazprom Neft Badra, a subsidiary of Russia's Gazprom Neft, has produced the five-millionth tonne of oil at its Badra oil field.

Thanks to the application of cutting-edge production and transportation technologies, this outcome has been achieved in just over two and a half years’ of commercial production. Total cumulative oil production since the start of 2017 is now in excess of 679,000 tonnes (five million barrels).

Four wells, with a total production rate of 27,000 barrels per day, have been commissioned at the field in 2017, bringing the total number of production wells at the field to 14, with total daily production increasing to 80,000 barrels. All wells are operating under free-flow production.

Pursuant to the agreed field development programme, Gazprom Neft is continuing the construction of oil and gas infrastructure. Pre-commissioning works are currently ongoing at the field’s gas treatment plant, with piping connections being installed, as well as electrical fixtures and automatic control systems. The first stage of this project will be commissioned in 2Q2017 and the second in 3Q2017.

Denis Sugaipov, Director of Major Projects, Gazprom Neft, commented:

“The Badra project is going according to plan, and it’s clear that the infrastructure necessary for increasing oil production is already in place. Badra is Gazprom Neft’s first project abroad, and one of our most successful major projects. Field infrastructure continues to expand, and is, already, now a major production complex, unique to the region.”

(Source: Gazprom Neft)

By John Lee.

Premier Oil has announced that it has "successfully exited" its position in Iraq.

The company was awarded a 40-percent stake in the Block 12 concession in 2012, but said in December 2015 that it would assign its participating interest to the operator, Russia's Bashneft, which was subsequently acquired by Rosneft.

(Source: Premier Oil)

Gazprom Neft Badra — a subsidiary of Russia's Gazprom Neft — has commissioned three new production wells (BD-2, P-14 and P-10) at the Badra field in Iraq. Total production across all three wells is running at 23,000 barrels per day, with daily production at the field totalling 77,000 barrels. All three wells are operating under free-flow production.

Gazprom Neft commissioned four new wells at the Badra field in 2016, producing a total 30,500 barrels per day. Completion of well P-19 (running to a depth of 4,945 metres, and drilled in 216 days — a record at the Badra field) is currently ongoing, with the well expected to be commissioned in early March.

Pursuant to the agreed field development programme, Gazprom Neft is continuing the construction of oil and gas infrastructure.

Pre-commissioning works are currently ongoing at the gas treatment plant, with piping connections being installed, as well as electrical fixtures and automatic control systems. The first stage of this project will be commissioned in 1Q2017 and the second in 3Q2017.

Denis Sugaipov, Director of Major Projects, Gazprom Neft, commented:

“Establishing cutting-edge high-technology production facilities at the Badra field is an essential precondition in effective asset development. Thanks to close collaboration with local and national government, Gazprom Neft has been given a unique opportunity in the Wassit Province to implement project for the fully integrated development of the territory, including not just oil production facilities but also the gas and energy infrastructure the region needs.

"The latest drilling and production technologies are being fine-tuned at the Badra field, and our company is acquiring invaluable experience in collaborating with those contractors recognised as leading the global oil and gas industry.”

(Source: Gazprom Neft)

By John Lee.

Russia's Lukoil is looking at different ways to increase oil production at West Qurna-2 from the current level of 400,000 barrels per day to 1.2 million bpd.

The company's vice president in the region, Gati Al Jebouri [Gati Saadi Al-Jebouri] (pictured), told Gulf News:

“Going forward, we are in discussions with Iraqi authorities on how we can develop the second phase of West Qurna-2 and depending on those discussions we will determine how much investment is necessary to reach 1.2 million barrels per day of production.”

(Source: GulfNews)

By John Lee.

Lukoil boss Vagit Alekperov (pictured) told reporters on Monday that investment in the West Qurna-2 oil field is estimated at $1.5 billion in 2017.

He said the company has already been compensated for about $6 billion of historical costs, adding that he expects to negotiate a revised contract with Iraq with the aim of getting additional profit.

(Source: Russian Construction)