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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)

By John Lee.

Russia's Lukoil and Japan's Inpex have successfully completed the testing of the first exploratory well, Eridu 1, at Block 10 in Basra governorate.

The well recorded a daily flow rate of more than 1,000 cubic meters of sweet oil from Mishrif horizon, confirming geological expectations of a large hydrocarbon field presence within the Block 10 contract area.

Geological exploration at the block is in progress: work program for 2017 includes the drilling and testing of an appraisal well Eridu 2.

Lukoil has a 60-percent stake in Block 10, with Inpex owning 40 percent.

(Sources: Lukoil, Inpex, Ministry of Oil)

(Picture: Seismic study at Block 10)

Russia's Rosneft and the Kurdistan Regional Government of Iraq signed a Cooperation Agreement in the fields of upstream, infrastructure, logistics and trading. The document was signed on the sidelines of the IP week conference in London.

Pursuant to the Cooperation Agreement the parties signed a pre-financed Crude Oil Purchase and Sale Contract of Kurdistan Region Crude oil over the period 2017-2019. The purchaser of crude will be Rosneft’s trading arm – Rosneft Trading SA.

Commenting on the deal Rosneft Chief executive officer Igor Sechin (pictured) said:

“We are delighted to be embarking on new activity together in the Kurdistan Region and look forward to developing new markets worldwide for Kurdish crude oil. The off-take and supply of Kurdish crude oil into Rosneft's expanding worldwide refining system will further contribute to the increase in its effectiveness”.

His Excellency Minister of Natural Resources in the Kurdistan Regional Government of Iraq Dr. Ashti Hawrami stated that:

“This deal represents a new beginning in our relationship with Rosneft and opens up the possibility of a broader relationship in all fields of energy cooperation with Russian Oil company Rosneft within Kurdistan”.

(Source: Rosneft)

Russia's Rosneft group has started drilling its first exploration well at Block 12 in Iraq.

The Salman-1 well will be drilled to the measured depth of 4,245 m through Kurra Chine target horizon to be followed by further testing of five prospective targets. The Company plans to complete drilling in July 2017.

Company of Rosneft group acts as the operator of the exploration and development of Block 12. China-based company Zhongman Petroleum and Natural Gas Group (ZPEC) is the general drilling contractor .

Iraq has huge proved and undeveloped oil resources. Exploration in Iraq is an important step in implementing the Rosneft strategy to expand competences in the area of hydrocarbon exploration and production outside of Russia.

The prospective oil-bearing Block 12 is located in the Najaf and Muthanna provinces, approximately 80 km to the southwest of the city of Samawa and 130 km to the west of the city of Nasriya. The block is a part of the Western Desert, an unexplored region having the biggest oil potential in Iraq. It has an area of 7,680 sq km. Exploration works on Block 12 are considered "low risk" due to its prospects.

(Source: Rosneft)

By John Lee.

Russia's Lukoil has said it has no plans to cut oil production in Iraq in 2016-2017.

Company President Vagit Alekperov (pictured) told reporters:

“No, not yet. So far, we have not received such recommendations from the Government of Iraq.”

(Source: Tass)