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AIN reports that the China National Offshore Oil Corporation (CNOOC) has started to dig its first oil well in the Fakka oil field in eastern Maysan [Missan] province.

A statement from the Missan Oil Company said that the project to develope the Maysan oil fields of Bazergan [Buzurgan], Fakka, and Abo Gharab [Abu Ghirab] has been included in the first oil licence round, intended to increase the productivity of these fields up to 450,000 barrels per day.

(Source: AIN)

Exxon Mobil is conspicuously absent from the finalized list of 47 pre-qualified bidders for the Iraq's fourth round of energy exploration rights.

The Petroleum Contracts and Licensing Directorate (PCLD) at the Ministry of Oil has confirmed that the auction will take place as scheduled on May 30-31.

The full list of pre-qualified companies is shown below:

The China National Offshore Oil Corporation (CNOOC) has presented its plan to develop three Maysan oil fields: Bazirgan, Fakka, Abu Gharb.

As part of the plan, Weatherford will drill 180 oil wells.

And after finishing the review there was a discussion about the plan, and the engineering staff in MOC shared their notes and questions about some items to achieve the targets and to enhance the production capabilities for the fields.

(Source: Ministry of Oil)

Iraq's oil ministry has issued a list of the 41 companies qualified to participate in its fourth energy bidding round in January:

ATPECO  - Japan

Bashneft - Russia

BP - UK

Chevron Corp - United States

CNOOC - China

CNPC - China

Edison - Italy

Egyptian General Petroleum Corp - Egypt

Eni Iraq - Italy

ExxonMobil - United States

Gazprom - Russia

Hess Corporation - United States

INA-Industrja Nafte - Croatia

Inpex Corp - Japan

ITOCHU Corp - Japan

Japex - Japan

JOGMEC - Japan

JX Nippon Oil and Gas - Japan

Kogas - South Korea

Kuwait Energy - Kuwait

Lukoil - Russia

Mitsubishi Corp - Japan

Mitsui Oil - Japan

Mubadala Oil - United Arab Emirates

Occidental Petroleum - United States

OJSC Oil Company Rosneft - Russia

OJSC TNK-BP Holding - Russia

ONGC Videsh Ltd - India

Pakistan Petroleum - Pakistan

Petro Vietnam - Vietnam

PetroChina - China

Petronas - Malaysia

Premier Oil - UK

PT Pertamina - Indonesia

PTTEP International Holding - Thailand

Royal Dutch Shell - UK/Netherlands

Sonangol - Angola

Statoil - Norway

Sumitomo Corp - Japan

Total - France

TPAO - Turkey

Rumours continue to fly regarding the fate of Heritage Oil (LSE: HOIL), the oil explorer with operations in Iraqi Kurdistan (pictured), which is said to be the target of takeover bid.

The British Daily Mail newspaper reported last week that Malaysia’s state-owned oil and gas company, Petronas, was interested in the company, but Petronas denied the report on Friday.

There were also mutterings that China's CNOOC or Sinopec was considering making an approach worth around 600p-a-share, almost 50% premium to the market price.

Some reports suggested that they might have to compete with a bid from Korea's KNOC.

Just a couple of weeks ago Heritage's Chief Financial Officer, Paul Atherton, told reporters that the company is itself considering a major acquisition. "Any transaction has to be significant, has to be material. We're not looking at very small, marginal transactions", he said.

Maysan will receive 50 billion Iraqi dinars [$42m], having been allocated one dollar for every barrel of oil produced from its fields, according to chairman of the Maysan Council.

“After the Iraqi government’s approval to allocate one dollar for every oil barrel produced in the oil-producing provinces, Missan will receive 50 billion dinars this year,” Abdulhussein Abdulreda told Aswat al-Iraq news agency.

“All technical and administrative procedures have been finalized, including opening a banking account and forming a committee to follow up these amounts,” he added.

(Source: Aswat al-Iraq)

Related articles:

• Special Equipment to Dig 20 Oil Wells Arrives in Amara
• $24 Million Investment Project in Missan
• CNOOC in Technical Service Contract for Iraq’s Missan Oil Fields

Iraq expects the CNPC-operated al-Ahdab oilfield to have an initial production rate of 60,000 barrels per day from July 2011, Deputy Oil Minister Abdul Kareem Luaibi said on Sunday.

Al-Ahdab was the first major oilfield development contract awarded by the Iraqi government after the 2003 US-led invasion when it agreed to revive a Saddam Hussein-era deal with the Chinese oil company.

In June 1997, Al-waha Petroleum Co., Ltd, a joint venture of CNPC and China North Industries Corporation, signed an agreement with Iraq's Saddam Hussein government to develop the al-Ahdab oil field, which was postponed by the UN sanctions on Iraq and the subsequent U.S.-led invasion to the oil-rich state.

In November 2008, CNPC signed a Development Service Contract of Al-Ahdab Oilfield with Iraq's Ministry of Oil.

Located 180 kilometers southeast to Iraq's capital city of Bagdad, Al-Ahdab Oilfield has a structural area of about 200 square kilometers.

It has since struck 11 other deals with global oil majors to help it quadruple its output capacity to Saudi levels of 12 million bpd within seven years.

(Sources: CNPC, Reuters)

Related articles:

• Oil Pipelines Extended to Nassiriya
• China Races to Secure Middle East Oil Deals
• CNOOC Seals Deal on Iraq Oil Field

Amman, 31 May 2010 - Dow Jones

The former head of Iraq’s largest state-owned oil company and advisor to the country’s oil ministry has criticised deals Baghdad signed with international oil majors to develop some of its biggest fields.

“There is no clear national plan on how to develop these huge oil fields,” Jabbar al-Luaiby told Dow Jones Newswires in an interview.

BP, Royal Dutch Shell and Cnooc Ltd, Exxon Mobil Corp and Italy’s Eni Spa. (ENI.MI) have bagged deals with Iraq to develop fields in the war-torn country, which holds the world’s third-largest proven oil reserves after Saudi Arabia and Iran, according to BP.

Al-Luaiby’s remarks could increase pressure on Baghdad to revise contracts awarded to foreign companies. Ayad Allawi’s Iraqiya bloc, which won the most seats in the recent parliamentary election, said it would like to review oil contracts signed with the majors.

“They’re huge deals that need the infrastructure, the potential and management which Iraq is currently lacking because of years of war, economic sanctions and destruction,” said al-Luaiby, who recently left his position as an advisor to Iraq’s oil minister.

Al-Luaiby added that international oil companies can still play a part in tapping Iraq’s vast resources once better infrastructure and oversight is in place. Foreign investment could help reverse the impact of two decades of war, sanctions and neglect on Iraq’s oil industry.

22 May 2010 - oilvoice

The movement of overseas oil firms into Iraq, to develop the country's vast supply of natural resources, continues. This week, the Iraqi government has signed a development agreement with both the China National Offshore Oil Corporation (CNOOC) and Turkey's state-backed oil firm Turkiye Petrolleri Anonim Ortakligi (TPAO) to develop the Missan oil fields in the Middle Eastern nation.

The agreement is the 11th major deal designed to boost production at Iraq's oil fields. Furthermore, the pact is of major significance to CNOOC, as it attempts to increase its global onshore upstream profile.

CNOOC's attempts to enter a number of foreign markets, such as the US, have been rejected owing to concerns over Chinese control of strategically important energy assets. As a result, the firm has long been attempting to enter markets where it is likely to be greeted with less hostility, such as Iraq.

Iraq's Missan complex is estimated to hold recoverable crude oil reserves of 2.5 billion barrels. The development deal incorporates three constituent fields within it, including Abu Ghirab, Buzurgan and Fakka.

In 2008, Missan recorded a flow rate of 115,000 barrels per day (bpd), but this figure is set to increase more than threefold. With the inking of the deal, CNOOC and TPAO combined and set an output target of 450,000 bpd by 2016.

The Chinese major has long been interested in accessing Iraqi supply of natural resources. CNOOC originally made a bid to develop the Missan fields in Iraq's first licensing round in 2009. The bid was made in conjunction with fellow Chinese state-run firm Sinochem, before the latter exited the deal citing a poor remuneration fee, providing an entry opportunity for TPAO. Under the newly inked deal, CNOOC will hold a majority 63.75% in the venture, while TPAO will hold an 11.25% stake. The remaining 25% will be held by an Iraqi state company.

According to Hussein al-Shahristani, Iraq's oil minister, Iraq's ongoing licensing of its oil fields isn't going to stop with Missan.

Indeed, al-Shahristani has also stated that Iraq was in talks with a number of firms interested in developing its three Middle Furat oil fields: Kifl, West Kifl and Merjan. The trio of fields are located south and west of the city of Karbala in the centre of the country.

Combined, the three Middle Furat fields are estimated to hold recoverable reserves of around 600 million.

China's CNOOC Limited has announced that, the Company, via its wholly owned subsidiary - CNOOC International Limited, together with Turkish Petroleum Corporation (TPAO), have signed a technical service contract (TSC) for the development and production of the Missan Oil Fields within Iraq.

The Missan Oil Fields are located in the southeast of Iraq, about 350 kilometers southeast of Baghdad.

The TSC has a contract term of 20 years and the Company has undertaken to increase the daily production of the Missan Oil Fields to 450,000 barrels within six years.

The Company will earn US$ 2.3 per barrel on the incremental oil production once the daily production has been raised by 10% from its current level and will recover its expenditure through a cost recovery mechanism.

According to the TSC, the Company acts as the operator and holds 63.75% participating interest while TPAO holds 11.25%. Iraqi Drilling Company, a local Iraqi company, holds the remaining 25% in the project.

Mr. Fu Chengyu, Chairman and CEO of the Company welcomed the signing of the TSC and commented, "It is a great pleasure to participate in rebuilding Iraqi's oil industry together with TPAO. CNOOC Ltd and its partner will carry out an active investment plan on the development of the Missan Oil Fields, to increase the production level for the benefits of all parties."

TSC will be effective subject to a few pre-conditions including the approval from Iraq.