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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)

By John Lee.

On Thursday, Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman held a virtual meeting on the sidelines of the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM).

Objective:

• Reinforce precautionary efforts.
• Support stability and balance in the global oil markets.

Key Decisions:

1. Extension of April 2023 Adjustments:
   • Adjustment Volume: 1.65 million barrels per day.
   • Extension Period: Until the end of December 2026.
2. Extension of November 2023 Adjustments:
   • Adjustment Volume: 2.2 million barrels per day.
   • Extension Period: Until the end of March 2025.
   • Gradual Phase-out Plan:
     • Monthly reductions starting April 2025.
     • Full phase-out by September 2026.
     • Flexibility to pause or reverse reductions based on market conditions.
3. Compensation for Overproduction:
   • Pledges by Overproducing Countries:
     • Achieve full compliance with production quotas.
     • Submit updated compensation schedules for overproduced volumes (since January 2024) to the OPEC Secretariat by December 2024.
   • Compensation Period: Extended until the end of June 2026.

Significance:

• Reinforces the role of OPEC+ in maintaining market stability.
• Demonstrates transparency and collaboration among member nations.
• Allows flexibility in response to changing market conditions.

Full statement from OPEC:

OPEC plus countries Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, which previously announced additional voluntary adjustments in April 2023 and November 2023 held a virtual meeting on the sideline of the 38th  OPEC and non-OPEC Ministerial Meeting (ONOMM).

The meeting was conducted to reinforce the precautionary efforts of OPEC+ countries, aiming to support the stability and balance of oil markets. The aforementioned countries decided, in addition to the latest decisions from the 38th ONOMM, to extend the additional voluntary adjustments of 1.65 million barrels per day that were announced in April 2023, until the end of December 2026.

Moreover, these countries will extend their additional voluntary adjustments of 2.2 million barrels per day, that were announced in November 2023, until the end of  March 2025 and then the 2.2 million barrels per day adjustments will be gradually phased out on a monthly basis until the end of September 2026 to support market stability as per the attached table. This monthly increase can be paused or reversed subject to market conditions.

In the spirit of transparency and collaboration, the meeting welcomed the pledges made by the overproducing countries to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since Jan 2024 before the end of December 2024 as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee (JMMC).  The compensation period will be extended until the end of June 2026.

(Source: OPEC)

By John Lee.

A high-level Russian delegation visited Iraq today (Tuesday), meeting with Prime Minister Mohammed S. Al-Sudani.

Delegates included:

• Alexander Novak, Russian Deputy Prime Minister;
• Sergei Tsivilev, Russian Energy Minister;
• Mikhail Bogdanov, Russian Presidential Envoy to the Middle East and North Africa;
• Pavel Sorokin, Russia's First Deputy Minister of Energy.

Discussions focussed on, "energy, artificial intelligence applications, and digital cooperation."

Last week, the Prime Minister received a phone call from the Russian President, Vladimir Putin, regarding oil prices.

Russia has also recently offered scholarships to Iraqi students.

Russian Foreign Minister Sergey Lavrov said in September that Russia has invested over $19 billion in the Iraqi energy sector.

Full statement from the Media Office of the Prime Minister:

Prime Minister Mohammed S. Al-Sudani received today, Tuesday, Russian Deputy Prime Minister Alexander Novak and his accompanying delegation, which included Energy Minister Sergey Tsivilev, Russian Presidential Envoy to the Middle East and North Africa Mikhail Bogdanov, and First Deputy Minister of Energy of Russia Pavel Sorokin.

The meeting discussed bilateral relations and ways to develop and strengthen them in various fields, particularly in energy, artificial intelligence applications, and digital cooperation. The discussions also emphasized the significance of the historical ties between Iraq and Russia, as the two nations mark the 80th anniversary of diplomatic relations.

Prime Minister Al-Sudani expressed Iraq's desire to establish mechanisms for advancing relations with the Russian Federation in a manner that ensures mutual benefits and serves the shared interests of both countries.

Deputy Prime Minister Novak conveyed the greetings of Russian President Vladimir Putin to Prime Minister Al-Sudani, reaffirming Russia's commitment to cooperating with Iraq. He highlighted the progress achieved following Prime Minister Al-Sudani's visit to Moscow in October of the previous year and the agreements reached to serve the interests of both nations.

(Source: Media Office of the Prime Minister)

By John Lee.

Prime Minister Mohammed S. Al-Sudani received a phone call today, Thursday, from the President of the Russian Federation, Vladimir Putin.

According to the Media Office of the Prime Minister, the phone call touched on energy-related matters, "highlighting the importance of coordination among all concerned countries within OPEC and the OPEC+ group to stabilize oil and gas prices, ensuring fair pricing for both producers and consumers."

During the call, they discussed bilateral relations between Iraq and Russia and explored ways to enhance them to serve the mutual interests of both friendly nations.

The conversation also addressed the evolving situation in the region, emphasizing the need for major powers to exert greater efforts to end the ongoing war and prevent its expansion, which could jeopardize regional and global stability.

(Source: Media Office of the Prime Minister)

By John Lee.

The Iraqi Ministry of Higher Education and Scientific Research has announced 260 scholarships provided by the Russian Federation for the 2025/2026 academic year.

The scholarships cover a range of disciplines for undergraduate, master's, and Ph.D. levels, available to both employees and non-employees.

Applications are open until Sunday, December 15, 2024, with specific details on fields of study and application requirements accessible via the scholarship portal.

More here.

(Source: Ministry of Higher Education and Scientific Research)