Russia


Barzani meets Gazprom Neft head in Russia

By John Lee.

KRG Prime Minister Nechirvan Barzani and his accompanying delegation have met with the head of Gazprom Neft, Alexander Dukov, in St Petersburg. 

Dukov briefed the Prime Minister about the company’s work and activites of the region, while Barzani thanked him for his support for the region in difficult times.

(Source: KRG)

SOMO considers JVs in Oil Shipping, Storage

By John Lee.

Reuters reports that following the setting up a new oil trading firm with Lukoil subsidiary Litasco, the State Oil Marketing Organization (SOMO) is considering setting up similar ventures in shipping and oil storage.

The news agency quotes the head of SOMO, Falah Alamri, as telling the CWC Iraq Petroleum Conference:

The idea is not only the money, the idea is to transfer SOMO from a marketing company to a trading company.

“At the moment we started with one company and if it succeeds maybe [we will] increase to another company with shipping … storage.”

(Source: Reuters)

SOMO, Litasco to Trade Oil from Dubai

By John Lee.

Iraq’s State Oil Marketing Organization (SOMO) and Russia’s LitascoLukoil‘s international marketing and trading arm — have set up a joint oil trading company in Dubai.

A source told Reuters that the new venture, LIMA Energy, is building a team to work at the Dubai Multi Commodities Centre (DMCC) to trade in crude oil from Iraq, Russian and other countries, and will lift the first cargo of Iraqi crude this month.

It is understood that up to 10 SOMO members of staff, including its head of shipping, could be seconded to the new company.

Last month, Iraq’s Ministry of Oil confirmed that SOMO had formed a joint venture with Litasco to market crude oil.

(Source: Reuters)

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)

Lukoil in Iraq Oil Trading Deal

By John Lee.

Iraq’s State Oil Marketing Organization (SOMO) and Russia’s Lukoil have formed a joint venture to market crude oil.

In a statement, the Iraqi Oil Ministry said Litasco — Lukoil‘s international marketing and trading arm — would help sell Iraqi crude and train Iraqi staff in marketing.

(Source: Ministry of Oil)

Five-millionth tonne of Oil Produced at Badra

Gazprom Neft Badra, a subsidiary of Russia’s Gazprom Neft, has produced the five-millionth tonne of oil at its Badra oil field.

Thanks to the application of cutting-edge production and transportation technologies, this outcome has been achieved in just over two and a half years’ of commercial production. Total cumulative oil production since the start of 2017 is now in excess of 679,000 tonnes (five million barrels).

Four wells, with a total production rate of 27,000 barrels per day, have been commissioned at the field in 2017, bringing the total number of production wells at the field to 14, with total daily production increasing to 80,000 barrels. All wells are operating under free-flow production.

Pursuant to the agreed field development programme, Gazprom Neft is continuing the construction of oil and gas infrastructure. Pre-commissioning works are currently ongoing at the field’s gas treatment plant, with piping connections being installed, as well as electrical fixtures and automatic control systems. The first stage of this project will be commissioned in 2Q2017 and the second in 3Q2017.

Denis Sugaipov, Director of Major Projects, Gazprom Neft, commented:

“The Badra project is going according to plan, and it’s clear that the infrastructure necessary for increasing oil production is already in place. Badra is Gazprom Neft’s first project abroad, and one of our most successful major projects. Field infrastructure continues to expand, and is, already, now a major production complex, unique to the region.”

(Source: Gazprom Neft)

Gazprom Commissions three New Wells at Badra

Gazprom Neft Badra — a subsidiary of Russia’s Gazprom Neft — has commissioned three new production wells (BD-2, P-14 and P-10) at the Badra field in Iraq. Total production across all three wells is running at 23,000 barrels per day, with daily production at the field totalling 77,000 barrels. All three wells are operating under free-flow production.

Gazprom Neft commissioned four new wells at the Badra field in 2016, producing a total 30,500 barrels per day. Completion of well P-19 (running to a depth of 4,945 metres, and drilled in 216 days — a record at the Badra field) is currently ongoing, with the well expected to be commissioned in early March.

Pursuant to the agreed field development programme, Gazprom Neft is continuing the construction of oil and gas infrastructure.

Pre-commissioning works are currently ongoing at the gas treatment plant, with piping connections being installed, as well as electrical fixtures and automatic control systems. The first stage of this project will be commissioned in 1Q2017 and the second in 3Q2017.

Denis Sugaipov, Director of Major Projects, Gazprom Neft, commented:

Establishing cutting-edge high-technology production facilities at the Badra field is an essential precondition in effective asset development. Thanks to close collaboration with local and national government, Gazprom Neft has been given a unique opportunity in the Wassit Province to implement project for the fully integrated development of the territory, including not just oil production facilities but also the gas and energy infrastructure the region needs.

“The latest drilling and production technologies are being fine-tuned at the Badra field, and our company is acquiring invaluable experience in collaborating with those contractors recognised as leading the global oil and gas industry.

(Source: Gazprom Neft)

Lukoil to Increase Production at West Qurna

By John Lee.

Russia’s Lukoil is looking at different ways to increase oil production at West Qurna-2 from the current level of 400,000 barrels per day to 1.2 million bpd.

The company’s vice president in the region, Gati Al Jebouri [Gati Saadi Al-Jebouri] (pictured), told Gulf News:

“Going forward, we are in discussions with Iraqi authorities on how we can develop the second phase of West Qurna-2 and depending on those discussions we will determine how much investment is necessary to reach 1.2 million barrels per day of production.”

(Source: GulfNews)

Oil Discovered at Block 10

By John Lee.

Russia’s Lukoil and Japan’s Inpex have successfully completed the testing of the first exploratory well, Eridu 1, at Block 10 in Basra governorate.

The well recorded a daily flow rate of more than 1,000 cubic meters of sweet oil from Mishrif horizon, confirming geological expectations of a large hydrocarbon field presence within the Block 10 contract area.

Geological exploration at the block is in progress: work program for 2017 includes the drilling and testing of an appraisal well Eridu 2.

Lukoil has a 60-percent stake in Block 10, with Inpex owning 40 percent.

(Sources: Lukoil, Inpex, Ministry of Oil)

(Picture: Seismic study at Block 10)

Rosneft and KRG sign Oil Deal

Russia’s Rosneft and the Kurdistan Regional Government of Iraq signed a Cooperation Agreement in the fields of upstream, infrastructure, logistics and trading. The document was signed on the sidelines of the IP week conference in London.

Pursuant to the Cooperation Agreement the parties signed a pre-financed Crude Oil Purchase and Sale Contract of Kurdistan Region Crude oil over the period 2017-2019. The purchaser of crude will be Rosneft’s trading arm – Rosneft Trading SA.

Commenting on the deal Rosneft Chief executive officer Igor Sechin (pictured) said:

“We are delighted to be embarking on new activity together in the Kurdistan Region and look forward to developing new markets worldwide for Kurdish crude oil. The off-take and supply of Kurdish crude oil into Rosneft’s expanding worldwide refining system will further contribute to the increase in its effectiveness”.

His Excellency Minister of Natural Resources in the Kurdistan Regional Government of Iraq Dr. Ashti Hawrami stated that:

“This deal represents a new beginning in our relationship with Rosneft and opens up the possibility of a broader relationship in all fields of energy cooperation with Russian Oil company Rosneft within Kurdistan”.

(Source: Rosneft)