Iraqi Oil Exploration Company


Schlumberger to Drill 40 Wells at Majnoon

By John Lee.

US-based Schlumberger has won a deal with Iraq’s Basra Oil Company (BOC) to drill 40 new wells at Majnoon oilfield.

In a statement on Wednesday, the Ministry of Oil also announced that the BOC had entered into a 19-month contract with the Iraqi Oil Exploration Company to carry out 2D and 3D seismic surveys at the field.

(Source: Ministry of Oil)

INOC takes over 9 State Oil Companies

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has transferred ownership of nine state-owned oil companies from the Ministry of Oil to the newly-created Iraqi National Oil Company (INOC).

The Minister is also the President of INOC.

The companies transferred to INOC ownership are:

  • Iraqi Oil Exploration Company
  • Iraqi Drilling Company (IDC)
  • State Oil Marketing Organization (SOMO)
  • North Oil Company (NOC)
  • Midland (Middle) Oil Company
  • Basra Oil Company (BOC)
  • Dhi Qar Oil Company (DQOC)
  • Missan Oil Company (MCO)
  • Iraqi Oil Tankers Company (IOTC)

IBN Expert Blogger Ahmed Mousa Jiyad has described the new company as “dysfunctional, unconstitutional and disintegrative“.

(Source: Ministry of Oil)

Iraq Plans to take over Mansuriyah Gas Field

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) as ordered Iraq’s state-owned oil companies to devise an urgent plan to develop the Mansuriyah (Mansouriya) gas field, following what he described as the delay and the failure of foreign companies to start developing the field.

The field, in Diyala province, was awarded in the third licensing round in 2010 to a consortium of international oil companies consisting of: Turkey’s TPAO (37.5%), Iraq’s Oil Exploration Company (25%), Kuwait Energy (KEC) (22.5%), and the Korean Gas Corporation (Kogas) (15%).

It holds around 127 billion cubic metres of gas. They committed to produce 320 million standard cubic feet of gas a day for $7 per barrel of oil equivalent produced, the maximum the government would agree to pay.

(Source: Ministry of Oil)

Lukoil signs Contract for Exploration at Block 10

Russia’s Lukoil has signed contracts with the state-owned Iraqi Oil Exploration Company to carry out seismic surveys at the Eridu field in Block 10, and also at Block 10’s southern and central parts, previously not part of the survey.

The scope of appraisal works at Eridu field includes a 3D seismic survey of 983 square kilometers to update the extension of the field and its geological structure.

At Block 10, 2D seismic acquisition of the southern and central parts is planned to be accomplished over an area of 3,500 linear kilometers to ensure the mapping of targets for prospect drilling.

The approved geological exploration plan for Eridu field envisages the drilling of additional appraisal wells on a mid-term horizon.​

Block 10, covering 5,600 square kilometers, is located in the governorates of Dhi Qar and Muthanna, 120 kilometers west of Basra. The interests in the project are: Lukoil – 60% (operator), Inpex Corporation (Japan) – 40%.

The Iraqi party to the agreement is represented by the state-owned South Oil Company (SOC).

The drilling of the first exploration well, Eridu-1, in February of 2017 led to the discovery of a major oilfield. Preliminary data indicate it is the most significant discovery in Iraq for the past 20 years.

The drilling of the second and third wells confirmed the field’s earlier assumed geological model.Block 10, covering 5,600 square kilometers, is located in the governorates of Dhi Qar and Muthanna, 120 kilometers west of Basra.

(Source: Lukoil)

Gazprom, Luaibi discuss Badra Oil Project

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Jabbar al-Luaibi, Minister of Oil of the Republic of Iraq, took place in St. Petersburg today.

The parties discussed the Badra project, which is implemented in Iraq by Gazprom Neft. Currently, the Badra field produces as much as 77,000 barrels of oil per day.

Gazprom Neft continues to construct oil and gas infrastructure, with start-up underway for a comprehensive gas treatment unit. The first and second trains of the project will go into operation in the 2nd and 3rd quarters of 2017, respectively.

Gazprom Neft is a vertically integrated oil company focused on oil & gas field exploration and development, oil refining, and petroleum product processing and marketing. The company’s largest shareholder is Gazprom (95.68 per cent); the rest of its shares are in circulation.

On May 31, 2014, Gazprom Neft started developing the Badra field located in the Wasit Province in the eastern part of Iraq. According to estimates, Badra holds 3 billion barrels of oil.

In January 2010, the consortium of Gazprom Neft, Kogas (Korea), Petronas (Malaysia), and TPAO (Turkey) signed a contract with the Iraqi Government for the development of the Badra field following a competitive tender. Gazprom Neft, as the project operator, holds a 30 per cent stake in the project, Kogas – 22.5 per cent, Petronas – 15 per cent, and TPAO – 7.5 per cent.

The Iraqi Government represented in the project by the Iraqi Oil Exploration Company (OEC) holds a 25 per cent stake. The Badra development project’s lifecycle is 20 years, with a possible five-year extension.

The cumulative oil production from Badra is in excess of 5 million tons.

Gazprom Neft allocated USD 10 million for social projects in the Wasit Province. The funds were used to build three schools, purchase computer equipment and school supplies, buy two minibuses for the University of Wasit, renovate and expand power grids in the neighboring population centers, provide local hospitals with medical equipment, and buy two ambulances.

At present, over 3,000 Iraqi citizens work at the Badra field. Gazprom Neft spent upward of USD 12 million on training programs for those workers.

(Source: Gazprom)

OEC Boss appointed Deputy Oil Minister

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi] has reportedly appointed a new Deputy Minister for upstream operations.

Spokesman Asim Jihad told Reuters that Kareem Hattab [Kareem Hattab Jaafer] (pictured), who will oversee exploration and production, has previously served as director general of the state-owned Iraqi Oil Exploration Company.

(Sources: Reuters, Iraq Oil Report)

LUKOIL completes 3D Seismic Survey at West Qurna-2

Russia’s LUKOIL has reported that it has completed a field 3D seismic survey at West Qurna-2 field.

The survey covered an area of about 450 square kilometers. The Company has fulfilled all of its contractual obligations to the Ministry of Oil of Iraq.

The high-quality seismic data obtained are required for the updating of the field’s geological model, both for the discovered formations and prospective horizons. The field data will soon be submitted for processing to a contractor, BGP, a division of the China National Petroleum Corporation (CNPC).

3D seismic acquisition at West Qurna-2 began in 2010. However, the completion of the field stage of work was delayed because foreign contractors did not have any work experience in the region. In 2014, following long negotiations, the Iraqi Oil Exploration Company (a division of the Ministry of Oil of Iraq) was chosen as seismic acquisition contractor.

In spite of high security requirements in the area of work, the contractor managed to accomplish all goals of the survey. Every day, about 1,000 people, including up to 700 workers from local tribes residing in the contract area, were involved in the operations at their height.

(Source: Lukoil)

Iraq plans Offshore Oil and Gas Exploration

By John Lee.

Iraqi oil minister Jabar Ali al-Luaibi [Allibi] has directed the Iraqi Oil Exploration Company (OEC) to start exploring Iraq’s coastal waters for new oil and gas reserves.

Addressing an OEC conference, the Minister also emphasised the need to focus on areas bordering neighbouring countries.

Iraq recently declared an additional 10 billion barrels of oil reserves.

(Source: Ministry of Oil)

Bashneft Completes Surveys at Block 12

Russia’s Bashneft has completed field seismic surveys at Block 12 as part of the geological exploration programme approved by the Iraqi Ministry of Oil.

The Oil Exploration Company, an Iraqi company specializing in geological and geophysical exploration, which won the open tender in the spring of 2014, has been employed as a contractor to conduct seismic surveys at Block 12; during the six months, the company performed 3D seismic surveys covering an area of 849 sq. km and 2D seismic surveys along two lines with a total length of 192 linear kilometres.

Currently, seismic data processing and interpretation is underway; the data will serve as a basis for seismic and geological modelling aimed at identifying formations that are potentially oil- and gas-bearing. The start of exploration drilling at Block 12 has been scheduled for late 2016.

The five-year geological exploration programme at Block 12, which may be extended for two years, involves conducting 2D and 3D seismic surveys and drilling one exploration well. Investments in the geological exploration programme to be made during the five-year period are to total US$ 120 million.

Under the service contract, before the start of seismic surveys, Bashneft had conducted an environmental impact assessment and a survey of the site designated for seismic exploration in order to detect unexploded mines and shells. Given that operations in Iraq entail considerable risk, the Company gives priority to ensuring the safety of its employees and contractors working at Block 12.

Block 12 has an area of 7.68 thousand sq. km and forms part of the Western Desert, an unexplored region having the greatest oil potential in Iraq. The Block is located in the Najaf and Muthanna provinces, approximately 80 kilometres to the south-west of the city of Samawa and 130 kilometres to the west of the city of Nasriya.

Bashneft gained the right to operate hydrocarbon exploration, development and production at Block 12 following a licensing round in June 2012.

To implement the project, a consortium was established, with Bashneft being represented by its wholly owned subsidiary, Bashneft International B.v. , which owns a 70% stake in the consortium and acts as the operator of the project.

Bashneft’s partner in the consortium, Premier Oil, is represented by its subsidiary, Premier Oil Exploration and Production (Iraq) Ltd., holding a 30% stake.

On November 8, 2012, the consortium signed a 25-year exploration, development and production service contract (EDPSC) with the Iraqi state-owned South Oil Company; the contract may be renewed for five years.

(Source: Bashneft)