Iraq Oil & Gas News


US “struggles” to convince Iraq to cut ties with Iran

By John Lee.

US Energy Secretary Rick Perry spent the last two days trying to convince the Iraqi government that it’s in its best interest to cut energy ties with Iran.

But according to a report from Washington Examiner, his efforts have had limited success.

Perry tweeted:

“In bilateral meetings with Iraqi President @BarhamSalih, Prime Minister Abdul-Mahdi, and Speaker Mohammed Al-Halbousi I reaffirmed that the U.S. stands ready to assist the Iraqi people in transitioning from Iranian energy dependence to using their full domestic energy potential.”

Iran is Iraq’s neighbor and an important supplier of the natural gas that fuels the nation’s electric grid, which is crucial to Iraq’s economy and oil industry.

More here.

(Source: Washington Examiner)

Dana Gas Increases Production in Iraq

Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, announces that as a result of the ramp up of production from its debottlenecking project in the Kurdistan region of Iraq, its group production reached 70,000 barrels of oil per day (boepd) on the 19 November and has since been sustained above that level.

The Company’s principal operations are in the Kurdistan Region of Iraq (KRI) and Egypt, where the drilling of the Balsam-8 well has also led to a sharp increase in overall production. Current group production, in excess of 70,000 boepd, represents a significant increase compared to the Company’s 9M 2018 average of 62,250 boepd.

Dr Patrick Allman-Ward, CEO, Dana Gas, said:

“Production in excess of 70,000 barrels oil equivalent per day is a great achievement for Dana Gas. At the start of the year, we planned a drilling programme in Egypt and a debottlenecking project in the KRI that would significantly increase production. We have successfully delivered both projects. The increase in production will help offset the lower realised hydrocarbon prices that have impacted the oil industry in the last quarter and support growth in our revenue and net profit figures for the full year 2018 and beyond.

“We remain excited about the long-term future of our world-class assets in the KRI. Further investment is underway to double current production to 900 MMscf/d over the coming three years, together with an increase in condensate to 36,000 bpd and LPG to 1200 MTpd.”

In the fourth quarter 2018, Dana Gas Egypt completed the drilling of the Balsam-8 well and tied it in to the network. The well was completed ahead of schedule and under budget, adding over 5,000 boepd to the Company’s output.

In the KRI, the Company announced a 30% increase in production capacity at the Khor Mor field (pictured), which it jointly operates on behalf of Pearl Petroleum. The expansion of the gas processing plant consisted of a series of plant additions and modifications to de-bottleneck throughput, raising output capacity from 305 MMscf/d of natural gas to 400 MMscf/d, with over 15,000 barrels per day of condensate. This is expected to add up to $50 million annually to the top line without incurring any additional operational costs.

The Company recently posted a strong set of quarterly financial results. 9M 2018 revenue increased 6% to $351 million (AED1,287 mm) from $330 million (AED1,210 mm) over the same period last year and 9M 2018 net profit was $41 million (AED149 mm) versus a net loss of $6 million (AED22 mm) in 9M 2017, excluding one-off items.

(Source: Dana Gas)

Iraq’s GDP to Grow 4.1%

By John Lee.

GDP growth in Iraq is expected to hit 4.1 percent in 2019, up from 2.8 percent this year, acccording to data from Moody’s.

The gain is based on an expectation of oil prices averaging $75 per barrel, and would be the highest level since 2016’s 13.1 percent expansion.

The National quotes the report as saying:

“Higher oil prices and output, as well as an expected increase in investment spending because of the improved security situation, have bolstered Iraq’s economic outlook … However, oil price volatility and potential further social unrest that could weaken Iraq’s economic infrastructure, as well as Iraq’s vulnerability to environmental risks, exacerbated by outdated infrastructure are continued risks to growth.”

More here

[In April, Fitch predicted 4.5 percent growth for 2019. – Ed.]

(Source: The National)

Increased Oil Production at Halfaya

By John Lee.

Production at Halfaya oilfield has reportedly increased by 100,000 barrels per day (bpd) to a total of 370,000 bpd.

Adnan Noshi, head of Maysan Oil Company, told Reuters that output rose after the completion of a new oil processing facility.

A further increase to 470,000 bpd is expected next quarter.

(Source: Reuters)

Deloitte report on Kurdistan Oil and Gas – Q2, 2018

Fourth Deloitte report on Oil and Gas Review in the Kurdistan Region, Iraq – Q2 of 2018

Today, Regional Council for Oil and Gas Affairs has published new verified data on the Kurdistan Region’s oil exports, consumption and revenues, covering the period from 1 April 2018 to 30 June 2018, after a review of the sector by the international “Big 4” audit and consulting firm, Deloitte.

The Regional Council for Oil and Gas Affairs acknowledges the positive feedback received from stakeholders, including the international community, and reiterates its commitment to the people of Kurdistan that the two international audit firms, Deloitte and Ernst & Young, will continue to independently review the oil and gas sector, inclusive of all the streams.

As part of our arrangement with international auditing firms, it was agreed that both auditing firms will assist Kurdistan Regional Government in training and developing local resources. The Regional Council for Oil and Gas Affairs, in coordination with Deloitte, arranged a 3-days Oil and Gas training workshop, from 23-25 October 2018, which was attended by 15 participants from Board of Supreme Audit.

This was the first batch from Board of Supreme Audit receiving industry training and a plan is being prepared for more training of selected candidates from Board of Supreme Audit to equip-them with modern auditing techniques and oil and gas industry knowledge.

  1. Deloitte’s report for the second quarter of 2018 is accessible through this link (PDF), in Kurdish, Arabic and English.
  2. Frequently asked questions handbook (PDF) in Kurdish, Arabic and English to help readers better understand different sections of the report.

The report for Q1 can be found here.

(Source: KRG)

EU, World Bank support Iraq Energy Sector Reforms

In the framework of the financing agreement signed yesterday by the Government of Iraq (GoI) and the European Union (EU) committing €14 million (US$15.8 equivalent) to support the government’s efforts to ensure increased and more reliable energy access for the Iraqi population, the EU and the World Bank Group (WBG) have signed today a €12.85 million (US$14.5 equivalent) implementation agreement to provide the needed technical assistance.

The initiative complements the ongoing and upcoming World Bank interventions in support of the GoI’s energy sector reforms, including those embedded in the budget support operations series (Development Policy Financing programs – DPFs), the Reimbursable Advisory Services (RAS) for structuring the Gas Value Chain and Gas Marketing in Iraq, and the support to subsidy reforms funded by the ESMAP’s Energy Subsidy Reform Technical Assistance Facility (ESRAF).

Supporting Iraq’s private sector enabling energy sector reforms is a priority development objective in the country both for the EU and the WBG. In a country where the energy sector accounts for more than 90% of central government revenues, addressing energy sector challenges is an essential and complementary action to any public finances related reforms, an area in which the European Union and the World Bank are also partnering in Iraq.

The country is also the world’s 3rd largest exporter of oil and its untapped natural gas reserves are the 12th largest in the world, yet it is forced to import fuel to meet its domestic energy demand, which imposes significant economic and fiscal strain on public finances. Equally important, Iraqi citizens are regularly faced with power shortages and have to resort to more expensive and pollutant sources of energy.

Efficiency in the management of public resources and delivery of services are critical to the achievement of public policy objectives, especially for a resource-rich upper-middle income country like Iraq, as well as fundamental to restore the trust and social contract between Iraqi citizen’s and the country’s institutions, especially in a post-conflict era of stabilisation and reconstruction. “As pledged in the Kuwait Conference, the European Union is committed to help Iraq’s reconstruction efforts and economic and political reforms to secure a better future for its citizens,”

(Source: Relief Web)

Ethical Procurement – a Warning from the Field

By Elena Kornienko.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

A few months ago I was approached by one of my LinkedIn connections, an expat based in Iraq, with an exciting training opportunity for one of the largest oil companies in the region.

Some messages back and forth to clarify details and I am asked to submit a proposal and training programs content. And at this point of time my inner voice of procurement professional with 17 years of buying goods and services for various companies started asking me questions:  “Why you have not received an official enquiry and all correspondence is LinkedIn based? “ – “Well, that’s how the modern world works these days! Social media became integral part of our lives”. My inner voice said: “Ok, fair enough. But why this person did not use corporate e-mail account?” – “Well, it is easier to keep correspondence on a subject in one place, and it will be easier to refer to all discussion details”.

And my inner voice was satisfied with that explanation too. But it kept asking me more questions: “If that is a formal inquiry for services, it have to come using company’s standard, and this company absolutely have templates and even automated procurement system…”, and the next question was “Submission of training materials to a client is always subject to signing “Non-disclosure agreement” where Intellectual Property Rights are clearly defined. So why it does not happen this time?”. And that was the time when I listened to my inner voice and started asking the same questions the potential counterpart. It did not take long to understand that it was a fraud inquiry with a purpose of stealing information which was covered by big and famous name…

It is not a secret that most of International Oil Companies, including the ones which operate in Iraq, have as a part of their contract template schedule “Code of Business Conduct and Ethics” and a failure to comply with all rules is considered as material breach of a contract which leads to further collection of damages or early termination. This contract schedule establishes company’s standards that include business practices and regulatory compliance that applies to all company’s employees.

These standards are expected to be followed by contractors as a part of commitment to execute contracts in trustful and faithful manner. For those of readers who did not come across with such contract articles, here just a few examples of what is typically covered: alcohol and drug policy, insider information trading, bribery, corruption, business records, confidential information, computer and system security, conflict of interest, gifts, engagement with media and information partners. This is typical content of “Code of Business Conduct and Ethics” which is adopted by most of the players in the Oil and Gas industry, however is it enough to make sure that all parties involved are acting in a good faith to all concerned?

The Chartered Institute of Purchasing and Supply (CIPS) developed and implemented Corporate Code of Ethics with more focus for procurement professionals. It guides companies on ethical behavior in supply chain and promotes usage of procurement strategies to drive away unethical practices from the supply chain, assists to ensure that procurement decision minimize any negative impact, helps to put ethical policies and procedures in place to ensure compliance and the most important – mandates the education and training of all staff involved in sourcing, contractor selection and management to professional standards.  Great initiative that helps not only companies, but procurement professionals to set and follow rules of ethical procurement. It promotes professional behavior of procurement personnel who have the biggest exposure in a company for potential fraud and corruption.

While some of the companies are more advanced in implementing and following ethics standards in procurement, for others it is a new unknown road. Iraq has its own challenges in procurement and we can all contribute the development of ethics in supply chain by letting our inner voice ask questions even in circumstances when we feel great excitement for fantastic business opportunity.

Elena Kornienko has more than 15 years of professional experience in contracts, procurement and tendering in various roles from demand-identification to contract close-out. She has worked on major international oil and gas projects, including the Sakhalin-1 and Sakhalin-2 fields in Russia, and Iraq’s West Qurna-2. Now based in Dubai, she provides consultancy services to the oil and gas industry. Elena is a fluent English and Russian speaker, and a graduate of the Moscow State University of Commerce, holding a degree in Economics. She also graduated with distinction from the School of Business Administration at Portland State University and holds a CIPS diploma.

(Picture: Ethics signpost, from 3D-creation/Shutterstock)

Ahmed Mousa Jiyad: Preview of a Special Issue on Iraq

By Ahmed Mousa Jiyad, Iraq/ Development Consultancy & Research, Guest Editor IJCIS-SI, Email: mou-jiya(at)online.no.

2018 is, in more than one aspect, rather an important year; It commemorates the 60 anniversary of 14 July revolution 1958; it registers thirty years of ending the eight years long Iran-Iraq war; it counts fifteen years of the country’ invasion by the Anglo-American lead troops; it also marks a ten year period of grand opening of the petroleum sector to foreign companies; it witnessed the almost end of the “triple shocks” that paralyzed the country and finally, it testifies a minor change of the dysfunctional democracy and plaguing Kleptocracy.

This is the “Introduction” I wrote, as the Guest Editor, for the special issue of the academic International Journal of Contemporary Iraqi Studies-IJCIS, due for release before year ends (by Intellect Books, UK)*

14 July 1958 revolution is still vivid in the memories of many of us who actually witnessed and lived that day and what followed to date. Much has been written about July Revolution during the six decades since that day, but for 2018 two important observations worth making.

First, despite a relatively short tenure of General Abd al-Karim Qasim government (14 July 1958 to 8 February 1963) its record of social economic and development achievements were not matched by achievements of all regimes since Qasim’ assassination, particularly those of post 2003. An article published on the local akhabaar news-site[1] lists most of Qasim achievements, which should make every post 2003 politician, decision maker, parliamentarian, minister among others feel ashamed.

Second, Iraq witnessed during July this year a popular mobilizations in all southern oil producing provinces protesting against lack of employment, deteriorated standard of living, insufficient basic social services especially electricity and safe drinking water and condemning the corruption in the country. In a way, July-September 2018 popular protest vindicates July 1958 revolution achievements comparative to the apparent failures of all post 2003 governments.

Thirty years ago Iran-Iraq war ended; a war that caused too much death, devastation, sufferings and pushed Iraq on the brinks of degeneration; further wars and sever comprehensive sanction led eventually to invading the country.

American and British troops invaded the country in 2003, toppled Sadam régime and, again, brought too much death and destruction but with dismantling most state institutions, inflict serious blows to social fabric and institutionalized sectarianism and ethnicity. Over these 15 years, much of oil export revenues were the target of an unprecedented cronyism and corruption, mostly Kleptocracy (defined here as formalized corruption by formal entities and influential political groups and oligarchy) with meager, if any, of actual economic and social development as manifested by spreading July 2018 demonstrations that left many dead, injured and good number of arrests.[2]

The security situation in Basra deteriorated dramatically on 4 September when the number of killed demonstrators rose to 9 with many more injured on both sides i.e. the demonstrators and security forces, and a number of local government building set on fire.[3] By 7 September number of fatalities in Basra increased to 15 dead and 190 injured with more building including private, foreign consulate and offices of some political parties put ablaze.[4]

Post 2003 democracy was basically confined to national and provincial elections, which were run on regular intervals, but none was without accusations, irregularities and corruption practices. National election of May 2018 has been the most challenged and precarious among them all.  Election results were not approved until three months after the election day even with recounts and involvement of High Judicial Council and the Federal Supreme Court-FSC; the term of the parliament ended on 30 June and the new parliament remains in limbo and was not convened and thus nominating the heads of the presidencies was delayed and the same applies to forming the new government.

FSC approved the recounted results on 19 August 2018 indicating the start of the constitutional process for forming the new government. The new parliament was finally convened, amid rather a different and also divisive political landscape post 2003, on 3 September. Not until 16 September the election of the president of the parliament was elected and on 2 October Dr. Barham Salih was elected the president of the republic- representing serious setback for Barzani’s party-  and on the same day Salih  asked Adil Abdul Mahdi, a pro privatization, the Kurds and IOCs,  to form the government within 30 days!

Provincial elections are scheduled for year ends unless they are impacted by the negative environment that tarnished the latest recent national election; the current political confused order would suggest strongly the likelihood of postponing the provincial election to further date.   But these too were and could be subject to even more irregularities with influential forms within sectarianism, tribalism and religious personality cult. Moreover, the aftermath of July demonstrations could effectively impacts holding, the process and the outcome of the elections.

The local parliamentary election in Kurdistan Region in Iraq was held over 28-30 September and again with different contested claims on its transparency, credibility and results.

2018 marks ten years of the big-push strategy or grand opening of the upstream petroleum for foreign investment and direct involvement that validates, initially, the school of thoughts that invasion was all about oil but the actual development questions that validation. The big-push strategy began by converting a production sharing agreement, was concluded during Sadam’ era when Iraq was under the severest sanction in history, into a long term service contract.

That conversion sets the main premises of a hybrid model contract that was adopted through four major bidding rounds. However, upstream petroleum since the cabinet shift of August 2016 witnessed a departure from previous practices by the return of deals concluded behind closed doors, lack of transparency and adoption of a net revenues sharing model contract that gives IOCs much more a share than offered under the previous four bid rounds.

2018 witnessed the beginning of the end of the triple-shocks i.e., low oil prices, Da’esh presence and retaking Kirkuk back from KRG seizure.

Da’esh (or ISIS/ISL) began by controlling Mosul in mid-2014 then moved to many parts of other governorates particularly Kirkuk, Salahuldeen, Dayala, Al-Anbar and came close to Baghdad. That caused untold destruction, killing, internal displacement and threatened the security and integrity of the country. The military operations to defeat Da’esh drained serious part of the annual state budgets in addition to officially estimated $100 billion reconstruction requirements.[5]

What made the situation even more alarming and drastic are the dramatic decline in oil prices and the prevailed motion of “lower for longer” that coincided with Da’esh attacks. Iraq oil export prices per barrel declined from $102.61 in June 2014 to $22.21 in January 2016 then improved gradually to exceed $74 during September 2018.

Further deterioration in Iraq financial situation was caused by the cessation of Kirkuk oil export when KRG took control of the province’s oil facilities. Though that seizure ended during the fourth quarter of 2017, export from Kirkuk still on hold at the time of writing.

The work on this special issue took eighteen months of concerted efforts, follow-up and back and forth communication involving all editorial colleagues, publisher’s team, anonymous reviewers and contributors. Well-deserved sincere and wholehearted words of thanks and appreciation are due to all of them.

Ahmed Mousa Jiyad provides review of the development of the Iraqi petroleum sector during the period 2008-2018 as post 2003 period witnessed grand opening of the sector for International Oil Companies- IOCs, particularly for upstream sub-sector. The article argues that, analytically and empirically, a sub-sector focused policy impacts, negatively, the development in that sub-sector, in the sector itself and on the sector’s contribution to the development of the national economy. The outcomes would exacerbate structural imbalances, vulnerabilities to external factors and increase dependency on oil revenues, which prohibits desirable structural change, diversification and transformation.

He also highlights the presence and impacts of the “triple shocks” combined with the prospect of “lower-for- longer” oil price that prevailed almost a year ago, contributing to continue deepening the fiscal crisis of the state and elevated the “fear-factor” among Iraqi decision makers. That, with apparent human, systemic and institutional capacity-gaps limitations resulted in Iraq giving important concessions to IOCs without having tangible benefits in return.

Juman Kubba asserts that Iraq, over the past fifteen years, took huge leaps backwards. Thus, she argued it is very important for politicians, historians, experts and judicial bodies to analyse what happened, why it happened, who is responsible and how to hold them accountable. But what is more important now is to ensure that Iraqi society recovers from the calamities of the past fifteen years as well as the preceding thirty years; and that the country’s resources are used to serve Iraqis and provide them with good living conditions and never again be wasted and dissipated. Accordingly, here article focuses on the pathway of healing Iraqi society from the aftermath of decades of war, poverty and immense suffering.

Restoring good education and healthcare is the first step on the pathway of healing and recovery. Also, neutralizing and reversing several dangerous post conflict societal problems that have arisen over the years such as traumatized war children, war injured young men, drug abuse among youth and alarming increase in neoplastic disease just to name a few.  Given the weakness of the government, corruption, and contradictions between legislation and jurisdiction, one must consider new non-traditional approaches to solving these problems; a few are presented in the article. The success of any future government should be measured by how much it can ameliorate the essential life sustaining services for ordinary citizens.

Monetary policy and particularly the role of the Central Bank have important function in the development of the country. Debating this issue, our late colleague Muwafaq Hassan Mahmood  addresses four topics; the first offers an empirical examination of the performance of the banking sector during the period 2010-2015; the second discusses banking sector reform requirements; The third topic will shed light on: i) the environments under which the Iraqi banking industry operates highlighting the limitations and obstacles that impedes the sector’s growth and ii) the investment environment and whether it’s an attractive for the business community to invest and doing businesses in Iraq. Finally, he examined the CBI’s dollar window impacts on the banking industry.

Human skills, systemic and institutional capacity gaps impact the performance of the petroleum sector and these have been the subject of international cooperation between Iraq and other entities e.g., countries, organizations and even companies. Usama Karim article focuses on one of such initiatives i.e., the establishment of the European Iraqi Energy Centre-EUIEC. He argues that knowledge acquisition and development leading to such endeavour is a process that takes long time and much resources needing meticulous planning. This process can be facilitated by the use of expertise and technology transferred by international companies and their networks engaged in ramping up energy production in Iraq.

EUIEC has four components, however, the article elaborates on the research component but Karim suggests that the final EUIEC organization, structure and facilities integrating all its components will require further efforts from the consultants, lead stakeholders and experts in setting up such complex endeavour building up on preliminary results from this study.[6]

Greg Muttitt article reviews what is now known about discussions of oil that took place during the invasion planning and execution, based on documents that have been released in the fifteen years since.

He examines the nature of the strategic objectives, how the US and UK governments planned to achieve them, and how they decided to talk about them in public. Reflecting on this evidence will allow us to revisit the question: was oil a major reason for the war and invasion of Iraq?

Federalism, an outcome of the regime change brought by the 2003 invasion and was enshrined in 2005 Constitution, needs fixing. Since 2003, Luay al-Khatteeb argues, Iraq’s experiment with federalism has in many ways benefitted Iraq, though, he asserts, functioning federalism was never given a chance to be tested in Iraq as there are various factors that have contributed to hinder the formation of a Federal Iraq. Thus, because implementation has been imperfect, it has not solved Iraq’s fundamental economic flaws, which promote the waste of oil revenues, promote oil revenue dependence and allow for local level corruption to flourish. This situation can still be remedied, he argued, but that requires time and may take generations to materialise.

Omar Eljoumayle article summarises his PhD dissertation in economic development of contemporary Iraq. The article traces the role of institutions, institutional policies and how the rapid and frequent institutional changes have driven the Iraqi economy for decades. Though applying the New Institutional Economic-NIE to Iraq expands the range of choices of institutions that could be examined, the choices have been narrowed down by revolving around three central issues: agriculture, oil and wars. The picture painfully presented is one of abrupt and instantaneous institutional changes, through which institutions were repeatedly subject to reshuffle and facing changing circumstances. Consequently these changes have severely affected the path of economic development in Iraq.

The book review part of this volume covers to recently published, in Arabic, important books: one on Iraq’s nuclear program and the other on the Iraqi economy.

While it gives me a great professional scholarly satisfaction to be the guest editor for this issue I regret to report that our colleague and contributor, Muwafaq Hassan Mahmood, passed away on 28 June 2018. Despite his illness and he and I knew he would be not with us for long,  Muwafaq (Abu Rand) was very determined and enthusiastic to deliver his article and honors his commitment before leaving us. I have known Abu Rand since mid-sixties and his early departure was indeed a devastating painful loss. My colleagues, Professor Tareq Ismael (Calgary, Canada) and Professor Bill Haddad (California, USA), and I convey our wholehearted condolences to his family, friends and colleagues and we sincerely thank Muwafaq for his contribution to this special issue.

Ahmed Mousa Jiyad,

Guest Editor, IJCIS-SI,

Norway

4 October 2018

*Jiyad, Ahmed Mousa, Introduction, IJCIS, Volume 12, number 3, 2018 (forthcoming)

[1] 1958 revolution the 60th anniversary (Performance of Qasim in akhabaar  http://www.akhbaar.org/home/2018/7/246337.html (in Arabic) accessed 14 July 2018

[2] As on 22 July the Iraqi Human Rights Commission announced 13 dead, 729 injured, including 460 from security forces, 757 arrested temporarily and release later and  91 government and private buildings and vehicles were damaged. http://www.akhbaar.org/home/2018/7/246645.html  accessed 23 July 2018.

[3] As reported by IOR, 5 September 2018

[4] http://www.akhbaar.org/home/2018/9/248576.html Accessed 8 September 2018

[5] On Da’esh effect, Kuwait conference and cost of reconstruction see , $100 billion for reconstruction http://www.iraq-businessnews.com/2018/02/12/video-iraq-seeks-100bn-for-post-is-reconstruction/

[6] Actually, I was the leader of a team that prepared the “Formulation study for the EU-Iraq Centre for Economic Partnership and Business Cooperation (DCI-ASIA part)”, which was commissioned and funded by the European Commission-EC during the period January-June 2012. The study resulted in formulating and recommends the establishment of EUIEC with four major components: Research, Training, Energy Debate and Business Cooperation. The EC adopted our proposal and started the implementation in 2014 through the Service contract notice “Iraq-Baghdad: ICI+ — EU–Iraq energy centre (EUIEC) 2014/S 074-126988”

Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad’s biography here.

Oil Exports Revenues Fall in November

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for November of 101,156,808 barrels, giving an average for the month of 3.372 million barrels per day (bpd), a decrease from the 3.478 bpd exported in October.

These exports from the oilfields in central and southern Iraq amounted to 100,895,342 barrels, while exports by the North Oil Company amounted to 261,466 barrels.

Revenues for the month were $6.180 billion at an average price of $61.090 per barrel.

October export figures can be found here.

(Source: Ministry of Oil)

SOMO “Squeezing Out” Oil Resellers

By John Lee.

Iraq’s State Oil Marketing Organization (SOMO) is reported to be restricting companies from reselling Basra crude oil on the spot market.

Oil traders have told S&P Global Platts that SOMO wants to keep a greater share of the lucrative spot market for itself.

The report adds that SOMO is merely implementing restrictions already embedded in its contracts with customers.

(Source: S&P Global Platts)