The Kurdistan Regional Government (KRG) exported 18,614,798 barrels of crude oil (an average of 620,478 barrels per day (bpd)) in the month of September through the Kurdistan pipeline network to the port of Ceyhan in Turkey.
Of this amount, fields operated by the KRG contributed 13,898,548 barrels (463,285 bpd on average), while fields operated by the North Oil Company (NOC) contributed 4,715,794 barrels (an average of 168,904 bpd).
Due to circumstances beyond the KRG’s control, during September there were 2 days of downtime for the export pipeline, caused mainly by attempts at sabotage and theft.In September, the KRG continued to increase its direct oil sales in Ceyhan to compensate the Region for the budget shortfalls from the federal government in Baghdad.
The KRG will continue to work with its counterparts in the federal government to reach a resolution on all the outstanding issues of oil and gas and in this regard it sees an opportunity for solid progress in the forthcoming discussions over the 2016 federal budget.
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The Basrah Gas Company (BGC) has recently been awarded the World Bank’s prestigious Global Gas Flaring Reduction Partnership (GGFR) Excellence Award for 2015.
The GGFR Excellence Award recognises governments, oil companies and other organisations that have made a significant contribution to gas flaring reduction in the upstream sector of the industry through associated gas utilisation projects, partnerships, and innovative use of technology or business approaches.
Speaking about the award Deputy Minister of Oil for Gas Affairs, Dr. Hamid Younis said:
“I am very pleased to hear that BGC has won the GGFR Excellence Award. The company has achieved a lot in the two years it has been in existence. Already we can see a significant drive towards delivering on the Government’s mandate to turn flared gas into a valuable asset for the people of Iraq”.
Simon Daman Willems, BGC Managing Director, said:
“I am very proud of what we have achieved since our foundation in 2013; currently we are on course to achieve 30 years of maintenance work inside just a few years. We have already doubled capacity from our assets and will continue to work side by side with our Iraqi colleagues to double our capacity further.”
(Source: Basrah Gas)
By John Lee.
Iraq’s oil exports for September fell to an average of 3.052 million barrels per day (bpd), down from 3.078 million bpd in August, according to a report from Reuters.
Of this quantity, 3.03 million bpd were from the southern ports, with only 22,000 bpd from the north of the country via the Turkish port of Ceyhan.
Total revenues amounted to $3.6 billion (4.2 trillion Iraqi dinars), at around $40.30 per barrel.
Gulf Keystone Petroleum (GKP) announced on Thursday the release of an updated independent third-party audit of the Company’s Reserves, Contingent Resources and Prospective Resources for its oil & gas interests in the Kurdistan Region of Iraq, including the Shaikan and Sheikh Adi fields operated by Gulf Keystone.
Today’s updated Competent Person’s Report (“CPR”) was again prepared by ERC Equipoise (“ERCE”) and follows the first report published in March 2014. The updated CPR is available on the Company’s website at http://www.gulfkeystone.com/investor-centre/presentations-and-technical-reports.
The focus on the Shaikan field has evolved from oil-in-place to recoverable reserves and the updated CPR highlights the enhanced understanding of the field. With over 15 million barrels now produced from the Jurassic, the substantial production and reservoir data acquired over the last 18 months have given a much improved understanding of the field’s recovery mechanism.
The Company now has greater certainty in its ability to develop the increased 2P Reserves – fewer wells and reduced capex per barrel will feature in the updated Shaikan Field Development Plan (“FDP”).
- 1P Reserves have increased by 55% compared to the March 2014 1P estimate from 198 to 306 million barrels gross, which is greater than the original 2P estimate
- 2P Reserves increased by 114% from 299 to 639 million barrels gross, significantly de-risking the field’s commerciality
- The field’s recovery mechanism, now recognised as being by solution gas rather than a water drive, results in greater predictability of field performance, increased reserves per well and lower capex per barrel
- Work on an FDP for the appraisal area is underway
- FDP approval is expected to lead to a future re-classification of 2C Resources (currently at 112 million barrels gross) to 2P Reserves
- A new prospect in the north-west of the block identified with 169 million barrels gross of Prospective Resources
ERCE has audited the reserves assessment in compliance with PRMS/SPE reporting guidelines.
The table below represents the updated CPR’s conclusions on Shaikan Reserves, Contingent Resources and Technically Recoverable Volumes(1) in comparison with the March 2014 CPR:
Commenting on the publication of the updated CPR, Jón Ferrier (pictured), CEO, said:
“Today’s announcement is a further independent endorsement of the calibre of Shaikan as a world-class field. With cumulative production to date of over 15 million barrels, the Company benefits from a vastly increased dataset and a far greater understanding of the reservoir.”
“Our technical confidence has markedly improved. In what was already a low production cost operation in the Kurdistan Region, the Company is working on an updated FDP to develop the increased 2P Reserves with fewer wells, lower capex per barrel and greater reserves per well.”
(Source: Gulf Keystone Petroleum)
By John Lee.
Egypt has finalised a farm-in at Iraq’s Block 9 area in Basra province on Wednesday.
Under the agreement, Kuwait Energy (KEC) will give up 10 percent of the concession, leaving it with a 60 percent share.
According to a report from Reuters, this is the first time that the state-owned Egyptian General Petroleum Corporation (EGPC) will search for oil outside its own borders.
Production at the first well in the block, Fayhaa 1, is expected to begin in October at 5,000 barrels per day (bpd), increasing to 150,000 bpd by 2020-21.
Block 9 was originally granted to KEC (40%), Türkiye Petrolleri Anonim Ortaklığı (TPAO, Turkish Petroleum) (30%), and Dragon Oil (30%), but the Iraqi government expelled TPOA, following which KEC took over the TPOA share.
(Source: Iraqi Ministry of Oil, Reuters)
By John Lee.
In its Interim Statement for period ended 30 June 2015, Irish-based Petrel Resources issued the following update on its operations in Iraq:
“Our third theatre of activities is Iraq, where we have had a presence for 18 years. The original Petrel interest was in Block 6 in the Western Desert between Baghdad and the Jordanian border. That is, and is likely to remain, a no-go area.
“Two years ago we established a close relationship with a well-connected Iraqi family by acquiring a 20 per cent interest in Amira Hydrocarbons Wasit. Amira has a joint venture with a Canadian company, Oryx Petroleum, in the Wasit province.
“We bought, for cash and shares, an effective 5% free carry through exploration on any Oryx activities in Wasit. The acquisition refocused our efforts on one of the world’s premier hydrocarbon basins and provides our shareholders with greater exposure to the world class hydrocarbon potential in Iraq.
“The Wasit Governorate is a Shia controlled province between Baghdad and the Iranian border, and is relatively stable. Like most of Iraq, it is very prospective for oil yet only lightly explored.
“Our belief was, and is, that a federal system would evolve in Iraq. This belief was based on events in Kurdistan. Should this happen, governors can sanction exploration in their own provinces. To date this has not happened.
“The shares in Petrel, given to Amira, will be extinguished if exploration does not happen by 2018. Nothing is happening at present. Petrel incurs no costs.”
(Source: Petrel Resources)
By John Lee.
According to a report from Mehr News Agency, the fifth joint summit on border patrolling of Iran’s west provinces and Iraqi border cities has begun in Mehran, Iran, with the presence of the Commander of the Iranian Border Guard Units General, Ghasem Rezaei [Qasem Rezaee] (pictured).
The summit will review the security conditions along the border, with particular attention to the upcoming ‘Arbaeen’ march, during which a large number of pilgrims will cross the borders.
(Source: Mehr News Agency)
The flow of crude oil from the Kurdistan Region to Ceyhan was halted on Thursday following theft from the export pipeline in Turkey.
The thieves struck the pipeline near Urfa at 0545 am on the first day of the Eid holiday. No repair crews were on duty. A crew was due to start work on the repairs today, September 25th, though the exact time for flows to restart was unknown at the time of writing.
Persistent theft from the Iraq-Turkey crude oil pipeline in the southeast of Turkey continues to damage the welfare of the people of the Kurdistan Region of Iraq at a critical time for their security and stability.
Revenue from crude oil export through the pipeline to Ceyhan represents the Kurdistan Region’s main means of survival. Without such revenue, salaries of Peshmerga, the security forces and other key government workers cannot get paid.
These treacherous acts of theft and sabotage harm the ability of Kurds across the region to fight Islamic State terrorism.
The Kurdistan Regional Government therefore calls once again on the perpetrators, and on those who control them and who profit from their activities, to immediately halt the theft of oil from the pipeline carrying crude oil from the Kurdistan Region of Iraq.
The publishers of Iraq Business News are delightd to announce the launch of our new publication, Iran Business News, in response to the intense business interest in Iran in anticipation of the lifting of santions.
After years of negotiations, agreement has been reached between Iran and the P5+1 countries (China, France, Russia, the United Kingdom, the United States, and Germany) that will allow the gradual lifting of sanctions, finally opening Iranian markets to international commerce.
This is expected to have a dramatic effect on Iranian economy and society.
With a population of 74 million, and the second largest economy in the Middle East and North Africa (MENA) region, a sanctions-free Iran holds vast potential for growth and development, and international companies are already signing contracts.
As with Iraq Business News, our mission at Iran Business News is to provide our readers with the highest quality information on the business and economy of Iran, keeping them up to date and enabling them to make the right decisions.
You can check out Iran Business News by clicking here, and sign up for the soon-to-be-launched newsletter here.
To promote your business to the Iranian market, please contact our sales manager, David Jeffries: Advertising@iran-bn.com, +44 20 8150 5293.
(Iran-Iraq image via Shutterstock)
By John Lee.
A spokesman for Iraq’s Ministry of Industry and Minerals has said that the ministry is about to finalise a partnership contract with French company Total to set up a giant petrochemical project in Basra province.
Abdul Wahid al-Shammari made the comments following a visit by the company’s representative in Baghdad.
He said the project would take advantage of local products such as oil and gas, turning them into plastic.
Specific investment terms and capacity details have not yet been disclosed.
(Sources: Shafaaq, Hydrocarbon Processing)