Custom Search

By John Lee.

The Iraqi Council of Ministers has authorised the Chairman of the Iraqi Atomic Energy Commission to negotiate and sign a draft cooperation agreement with the Russian Federation.

The agreement will focus on the peaceful use of nuclear energy, in line with Iraq's constitutional provisions. The Ministry of Foreign Affairs has been tasked with preparing the necessary documentation for final approval by Prime Minister Mohammed S. Al-Sudani.

This step marks an expansion of Iraq's international partnerships in science and energy, and aims to advance the country's capabilities in nuclear technology for civil applications.

(Source: PMO)

By John Lee.

Russia's Gazprom and its consortium partners have signed the first amendment to the service contract for the Badra oilfield with Iraq's Midland Oil Company (MdOC).

The signing ceremony, held on Thursday, was attended by Bassem Mohammed Khudair, Deputy Minister for Upstream Affairs; Russian Ambassador Elbrus Kutrashev; the Director General of Dhi Qar Oil Company (DQOC); the Director General of the Petroleum Contracts and Licensing Directorate (PCLD); the Director General of the Reservoirs and Field Development Directorate; and the Deputy Director General of the Technical Directorate.

Khudair affirmed the Ministry's commitment to supporting production continuity in Iraq's oilfields and to facilitating the work of international oil companies operating in the country.

Mohammed Yassin, Director General of Midland Oil Company, said that the company is working with the contractor to boost production rates within the remaining term of the contract to enhance state revenues.

According to a statement from the Ministry, the amended contract includes provisions on gas production and expected financial returns for the remaining life of the project, but no details were provided.

(Source: Ministry of Oil)

By John Lee.

Eight key members of the OPEC+ alliance, including Iraq, have agreed to increase production starting in May 2025, citing healthier global market fundamentals and a positive outlook.

At a virtual meeting held on 3 April 2025, the countries reviewed market conditions and confirmed they would implement a 411,000 barrels per day (bpd) production increase in May. This figure comprises three scheduled monthly increments, including the one originally planned for May, and is part of the gradual reversal of the 2.2 million bpd voluntary cuts announced in April and November 2023.

In a statement, OPEC said this adjustment aligns with the decision made on 5 December 2024, reaffirmed on 3 March 2025, to return production gradually and flexibly. The group reiterated that these increases could be paused or reversed depending on evolving market dynamics.

Full statement from OPEC:

Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman reaffirm commitment to market stability on healthier oil market outlook and adjust production upward

The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 3 April 2025, to review global market conditions and outlook.

In view of the continuing healthy market fundamentals and the positive market outlook, and in accordance with the decision agreed upon on 5 December 2024, subsequently reaffirmed on 3 March 2025, to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day, equivalent to three monthly increments, in May 2025, as detailed in the table below. This comprises the increment originally planned for May in addition to two monthly increments. The gradual increases may be paused or reversed subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability. The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation.

The eight countries reaffirmed their commitment to the voluntary production adjustments agreed at the 53rd JMMC meeting on 3 April 2024. They also confirmed their intention to fully compensate any overproduced volume since January 2024 and to submit updated front-loaded compensation plans to the OPEC Secretariat by 15 April 2025 which will be posted on the Secretariat's website.

The eight OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation. The eight countries will meet on the 5th of May to decide on June production levels.

(Source: OPEC Secretariat)

By John Lee.

Iraq's Federal Integrity Commission and Russia's Prosecutor General's Office have begun implementing their Memorandum of Understanding (MoU) on anti-corruption cooperation, focusing on asset recovery and international legal assistance.

During a meeting with a Russian delegation, Dr. Mohammed Ali Al-Lami, Head of the Integrity Commission, emphasized the need to modernize anti-corruption mechanisms to counter evolving methods of financial misconduct. He also called on signatories of the UN Convention Against Corruption to fulfill their commitments on legal cooperation, asset recovery, and extradition, highlighting banking secrecy and legal system differences as key challenges.

Discussions covered judicial investigations, evidence sharing, and financial transparency, while Russian experts stressed the importance of bilateral and multilateral partnerships to coordinate efforts at international forums. Both sides explored the twinning of Iraq's Anti-Corruption Academy with Russia's Prosecutor General's University to facilitate training, research, and academic exchanges.

Workshops also addressed national coordination committees for anti-corruption enforcement and joint legal measures to track and recover illicit funds.

Iraq ranks joint 140th out of 180 countries in Transparency International's Corruption Perceptions Index (CPI), while Russia ranks joint 154th.

(Source: Federal Integrity Commission)

By John Lee.

Irish-based Petrel Resources Plc (LON: PET) has raised £250,000 through a share placement managed by Novum Securities.

The placement represents a 45% discount to the closing price on 5 March 2025.

According to a statement from the company, the funds will provide additional working capital, supporting Petrel's efforts to secure new oil and gas projects in Iraq and beyond.

Full statement from Petrel Resources:

Petrel Resources Plc (Lon: PET) is pleased to announce that the Company has raised £250,000 (before expenses) through a placing by Novum Securities of 23,809,523 new ordinary shares (the "Placing Shares") at a placing price of 1.05p per Placing Share ("Placing").  Each Placing Share has one warrant attached with the right to subscribe for one new ordinary share at 2p per new ordinary share for a period of two years. The Placing Shares are being issued under the Company's existing share authorities and will represent approximately 11.5% of the Company's issued shares, as enlarged by the Placing. The Placing price represents a 45% discount to the closing price on 5 March 2025.

Use of Funds

The net proceeds of the Placing will provide the company with additional working capital, as Petrel's board continues to assess new projects in Iraq, and elsewhere.

The security situation in Iraq continues to improve, while an investment slow-down since 2014 has led to potential improvements on contract terms which should improve scope for development.

Petrel has recently submitted an application to assume an existing contract east of Baghdad

• 4^th Bid round award in 2012, at a remuneration per barrel of $5.38.
• Block 8 covers 6,000 km2 in Wasit and north-eastern Diyala

Petrel has previously conducted a Technical Cooperation Agreement on the Merjan oil-field in west-central Iraq, in a 50% partnership.

Following the steadily improving security conditions in this part of Iraq, and better global oil and gas prices, Petrel has proposed to develop this discovery under applicable Iraq contracts.

Petrel may be invited to enter into pre-qualification discussions with the Ministry of Oil.  Discussions may also cover Petrel's past studies on the Merjan-Kifl-West Kifl area, and the Mesozoic and Paleozoic potential of the Western Desert. 

Admission and Total Voting Rights

An application will be made for the admission of the Placing Shares, which will rank pari passu with the existing ordinary shares in issue, to trading on AIM which is expected to occur on or around 20  March 2025 ("Admission").

Following Admission, there will be a total of 207,681,323 ordinary shares in issue with each ordinary share carrying the right to one vote.  This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

 David Horgan, Director, commented:

"The supply/demand balance for oil is shifting in Iraq's favour.  New global oil & gas investment falls short of levels needed to support anticipated demand.  The dramatic growth in North American fracked output between 2005 and 2014 is less of a concern for OPEC exporters.  Sanctions on Russia, Iran and Venezuela had constrained the early development of their resources, while demand for oil products and LNG continues to grow - particularly in Asia."  

"As reported recently in connection with BP negotiations, the Iraqi Government plans to streamline contract awards and fiscal terms so as to deliver increased output for Iraq's economic development.  We have the team, experience and skills to participate in the coming boom."

(Source: Petrel Resources)

By John Lee.

The 10th meeting of the Iraqi-Russian Joint Committee was held in Baghdad this week, co-chaired by Iraq's Deputy Prime Minister and Foreign Minister Fuad Hussein and Russia's Minister of Energy Sergei Tsivilev.

Hussein emphasized the longstanding ties between the two nations and the broad scope of cooperation, while Tsivilev reaffirmed Russia's commitment to expanding bilateral relations and invited Iraq to participate in upcoming conferences in Russia.

During the meeting, both sides signed key agreements, including:

• A Maritime Transport Agreement between the Ministries of Transport.
• A Memorandum of Understanding (MoU) for Health Cooperation between the Ministries of Health.
• An MoU between the Federation of Iraqi Chambers of Commerce and the Federation of Russian Chambers of Commerce and Industry.
• A Protocol of Understanding between Gazprom and Iraq's Midland [Middle] Oil Company (MdOC].

Hussein noted what he described as Iraq's "balanced" stance on the Russia-Ukraine conflict, calling for a ceasefire. He also highlighted upcoming international events in Iraq, including the Arab Summit, and stressed the importance of enhancing collaboration in sectors such as health and industry.

The discussions included Iraq's oil exports from the Kurdistan Region to Turkey and Russia's continued investment in Iraq's oil sector, currently valued at approximately $19 billion. Tsivilev confirmed additional agreements are under negotiation, praising the positive outcomes of the meeting.

(Source: MoFA)

By John Lee.

The Iraqi Ministry of Oil has reaffirmed its full commitment to the OPEC+ production agreement, including additional voluntary cuts and compensation for excess production.

In a statemet on Monday, the Ministry will implement necessary measures to ensure compliance, including submitting an updated plan to offset previous overproduction.

This commitment was reiterated during a joint phone call between:

• Hayan Abdul Ghani Abdul Zahra, Iraq's Deputy Prime Minister for Energy Affairs and Minister of Oil.
• HRH Prince Abdulaziz bin Salman Al Saud, Saudi Energy Minister.
• Alexander Novak, Russian Deputy Prime Minister.
• Haitham Al Ghais, OPEC Secretary-General.

According to what the Ministry described as data issued by secondary sources approved by OPEC, Iraq's crude oil production in January 2025 stood at 3.999 million barrels per day (bpd), reflecting adherence to agreed production levels.

Key Developments:

• Iraq will continue efforts to compensate for past overproduction.
• The government is preparing for the resumption of Kurdistan oil exports via the Iraq-Turkey pipeline.
• Iraq remains committed to its OPEC+ voluntary production cut obligations.

The Ministry of Oil emphasised the crucial role of OPEC+ agreements in stabilising global oil markets and highlighted the importance of collective efforts from all member states to maintain market balance.

On Saturday, Baghdad confirmed the completion of procedures for resuming the export of oil produced in the Kurdistan Region through Ceyhan Port, in accordance with the mechanisms outlined in the Budget Law and its amendments and within Iraq's OPEC production quota.

(Source: Iraqi Ministry of Oil)

By John Lee.

Iraq's Minister of Oil, Hayan Abdul Ghani Al-Sawad, met on Sunday with Russian Ambassador to Baghdad, Elbrus Kutrashev, and a delegation from Russia's OMK Group.

Discussions focused on enhancing bilateral cooperation in the oil, gas, and energy sectors.

According to its LinkedIn page, United Metallurgical Company (OMK) is one of Russia's largest producers of pipes, railway wheels and other steel products for energy, transport and industrial companies.

(Sources: Ministry of Oil, LinkedIn)

By John Lee.

Prime Minister Mohammed S. Al-Sudani met with Mikhail Bogdanov, Special Envoy of Russian President Vladimir Putin, to discuss strengthening Iraq-Russia relations.

Talks covered economic cooperation, regional stability, and the upcoming Arab-Russian Summit, which Al-Sudani signalled his intent to attend.

Discussions also focused on expanding collaboration in multiple sectors, including the Development Road project and Russian transit route initiatives.

Bogdanov conveyed Putin's greetings and reaffirmed Russia's commitment to activating bilateral agreements and preparing for the tenth Iraqi-Russian Joint Committee meeting.

Deputy Prime Minister for Energy Affairs and Minister of Oil receives the Special Envoy of the Russian President for the Middle East and African Countries Deputy Prime Minister for Energy Affairs and Minister of Oil, Mr. Hayan Abdul-Ghani Al-Sawad, received today, Thursday, the Special Envoy of the Russian President for the Middle East and African Countries - Deputy Minister of Foreign Affairs of Russia, Mr.

In a separate meeting Bogdanov met with Iraq's Minister of Oil, Hayan Abdul Ghani. That meeting was attended from the Russian side by the First Deputy Head of the Middle East and North Africa Department of the Ministry of Foreign Affairs, Mr. Maxim Maximov, the Russian Ambassador to Baghdad, Mr. Elbrus Kotrashev, the Special Representative of the Russian Ministry of Defense, Mr. Sergey Afanasyev, the Vice President of Gazprom, Mr. Anton Galabov, and representatives of the company.

From the Ministry side, it was attended by the Undersecretary of the Ministry for Extraction Affairs, Mr. Basem Muhammad Khader, the Director General of the Reservoirs and Fields Development Department, Mr. Karim Yasser, and the Director General of the Petroleum Contracts and Licensing Department (PCLD), Mr. Basem Taher.

(Sources: PMO, Ministry of Oil)

By John Lee.

A leading Iraqi economist has predicted that US President Donald Trump's pressure to reduce oil prices will harm the Iraqi economy, and could lead to a devaluation of the Iraqi dinar.

In a post on Facebook, Dr Nabil Jaafar Al-Marsoumi, former Professor of Economics at Basra University, and member of the Advisory Board of the Iraqi Economists Network (IEN), said:

"Following Trump's demand for Saudi Arabia and OPEC to reduce oil prices to provide cheap energy and expedite the end of the Russian-Ukrainian war, OPEC Plus's abandonment of its cuts amounting to 4.650 million barrels will be implemented within a few weeks. Oil prices will decrease as Trump planned, and oil revenues for oil-exporting countries will decline.

"However, the greatest harm will be to Iraq. Although its production will increase by approximately 220,000 barrels per day, the drop in oil prices to 60 dollars will put Iraqi finances in severe distress, as it financially means a reduction in Iraqi oil revenues by about 15 billion dollars, which will need to be secured through domestic borrowing.

"If prices drop to 50 dollars, devaluing the dinar will become one of the important options to increase public revenues denominated in dinars to reduce the deficit gap in the general budget!"

(Source: Nabil Jaafar Al-Marsoumi)