Iraq

Iran starts gas exports to Iraq, Iranian official tells IRNA

22 Jun 2017   Iran, Iraq

Iran has begun exporting gas to Iraq, an Iranian official told the state-run Islamic Republic News Agency (IRNA) on Wednesday, after a several years of delays. The neighbors, both members of the Organization of the Petroleum Exporting Countries, initially signed a deal in 2013 for Iran to supply Iraqi power stations, but officials in the past blamed poor security in Iraq for hampering implementation. Exports had started at approximately 7 million cubic meters per day and would eventually reach up to 35 million cubic meters per day, Amir Hossein Zamaninia, the deputy oil minister for trade and international affairs, told IRNA. Iran signed two contracts to export gas, one for the Iraqi capital Baghdad and the other for southern Iraqi city of […]

Q&A: Nasraddin Sayid Sindi, Kurdistan’s disputed territories chief

22 Jun 2017   Iraq

The chairman of the General Board of Kurdistan Areas outside the Kurdistan Region Administration discusses efforts to hold the referendum in areas outside formal KRG control, and expectations of Iraqi security forces afterward. Nasraddin Sayid Sindi, the chairman of the General Board of Kurdistan Areas outside the Kurdistan Region Administration, in his office in Erbil on June 19, 2017. (RAWAZ TAHIR/Iraq Oil Report) ERBIL – Kurdistan Regional Government (KRG) officials have never been shy about their claims to territory outside its formal borders recognized by the federal government and United Nations. The KRG has for years deployed Peshmerga and other security forces in territory that falls within the provincial boundaries of Salahaddin, Diyala, Kirkuk and Ninewa provinces. In some of these areas, the KRG provides services like fuel and electricity and other administrative functions. This content is for registered users. Please login to continue. If you are not a […]

Federal crude flows to two northern Iraq refineries

22 Jun 2017   Iraq

Iraq has unlocked about 20,000 barrels per day (bpd) of refining capacity – a relatively small amount with outsize economic and political implications. The restart of the Qayarah refinery, south of Mosul, brings a small measure of much-needed economic development to an area recently devastated by years of occupation by the self proclaimed Islamic State (IS) militant group.

In Hawija, IS poses ongoing threat to oil assets

21 Jun 2017   Iraq

The self-proclaimed Islamic State’s (IS) longstanding hold over Hawija, west of Kirkuk, is posing an ongoing security threat to the Bai Hassan oil field. IS militants in Hawija have been responsible for several recent attempts to bomb the field, which produces 175,000 barrel per day (bpd), according to security and oil industry officials in the greater Kirkuk area. This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Who Controls The Oil As Kurdish Independence Looms?

21 Jun 2017   Iraq

Kurdistan, the autonomous region of northern Iraq that is rich in oil resources and has proven an effective force against the spread of the Islamic State, has announced that it will hold an independence referendum on September 25 of this year, in order to determine whether the region will remain part of the Republic of Iraq or split off to form a new, independent state. Thus far, the official international support for the referendum has been minimal. On June 19, the European Union released a statement discouraging the Kurdish autonomous government from holding the referendum, joining the United Kingdom, United States, Turkey and Iraq in officially opposing the vote. But this hasn’t deterred Kurdish leaders, who say the vote will go forward no matter the resistance. The referendum will not declare an independent state, but rather determine whether Kurdistan will remain part of Iraq or eventually become independent, though […]

Iraq Dethrones Saudi Arabia As India’s No.1 Oil Supplier

16 Jun 2017   India, Iraq

Iraq has been India’s largest supplier of crude oil for the last three months, shipping data from Bloomberg has revealed . This means that OPEC’s number-two has dethroned the cartel’s leader—Saudi Arabia—which has been the top supplier in the world’s fastest-growing market in terms of oil consumption. Iraq produced almost a quarter of the oil India imported last month, or 23 percent, exporting at a daily rate of 1 million barrels. That is compared to a monthly average export market share of 19 percent for the prior four months. Saudi Arabia, on the other hand, supplied 17 percent of the crude India bought in May. Iraq has consistently shown signs of an expansion strategy for its oil industry, despite its participation in the OPEC agreement for oil output reduction. While Iraq has not been fully compliant to the production caps, Saudi Arabia has been over-compliant—a fact that contributed to […]

Chicken farm explosion reveals oil smuggling racket

15 Jun 2017   Iraq

Iraqi authorities are seeking the arrest of a Badr Organization paramilitary commander for allegedly overseeing a prolonged oil smuggling operation south of Kirkuk.”The investigative judge of Kirkuk has issued a warrant for the person in charge of the Badr Organization in Taza sub-district, for his involvement in oil smuggling and the damage he has caused to the national economy,” a security official in Kirkuk said.Ahmed Askari, the head of the Kirkuk Provincial Council Energy Committee,… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial […]

Putin’s Newest Oil Play: Russia Gains Foothold In Iraqi Oil Patch

14 Jun 2017   Kurdistan, Russia

The Kurds of Iraq are going through one of their most tumultuous periods of history. On the verge of finally seeing the much-heralded independence referendum, through Erbil is doing everything it can to stay financially afloat, squash the Islamic State and expand its oil sector – and it is a pretty thin line to walk with all the events going on simultaneously. The latest developments in Kurdish-Russian relations might be indicative of even deeper cooperation and convergence between the two nations, as new petroleum deals will inevitably have political ramifications. Rosneft and Gazprom Neft, Russia’s leading state-owned oil companies, seem very intent on increasing their presence in Kurdistan, with the former walking an extra mile by venturing into Kurdistan’s infrastructure segment. The KRG (Kurdistan Regional Government)-Rosneft pre-payment deal, signed this February, has successfully laid the groundwork for future rapprochement. Under the conditions of the deal, Rosneft is reported to […]

Kurdish Oil: The Two Biggest Threats

14 Jun 2017   Iraq

As the Kurdistan Regional Government (KRG) seeks to restore pre-2014 levels of attractiveness to its energy sector from an investment standpoint, it grapples with several key challenges. Chief among these are its efforts to safeguard the strategic assets and operations of International Oil Companies (IOCs). Of course, it is not uncommon for businesses with operations in emerging and frontier markets to be cognisant of weak security conditions that could disrupt project viability. But that being said, the KRG has faced an uptick in violence and is prone to the advances of Sunni militant groups in particular. This analysis explores the threat presented by ISIS and the PKK, by looking at what impact they have had on the oil sector, as well as the role they may yet play. Moreover, it builds on a report released by Shadow Governance earlier this month, detailing the dynamics and drivers of the Kurdish […]

Countering ISIS: Iraq Aims To Triple Its Refining Capacity

10 Jun 2017   Iraq

Iraq is planning to triple its refining capacity as the third-largest oil exporter increases crude oil production, Bloomberg reported, based on an interview with an official in the country. World’s top 20 oil exporters according to CIA data. Iraq’s current production is 4.5 MMBOPD, way beyond in-country refining capacity Currently, Iraq is capable of processing about 500 MBOPD, far below the ~4.5 MMBOPD the country produced in 2016. Iraq exports much of this surplus crude, making it the third-largest exporter of crude oil according to Bloomberg. The small amount of refining capacity means that one of the world’s largest oil producers actually has to import gasoline and other refined products. The country spends more than $2 billion each year importing various refined products. Multiple projects planned A group of planned projects, if they are completed, would go a long way to fixing this problem. The biggest project is a […]

U.S. Begins Importing Iraqi Oil

9 Jun 2017   Iraq, USA

The United States has begun importing Iraqi oil at a rate of 1.1 million barrels per day to replace export cuts announced by Saudi Arabia late last month , new figures compiled by Bloomberg show. New data from the Department of Energy suggests that during the first week of June, Iraqi oil entered the U.S. at the quickest rate in the past five years – marking the first time the nation’s exports exceeded those from Saudi Arabia over the same time period. In late May, Riyadh announced its plans to purposely reduce exports to the United States to force a reduction in the latter’s sizeable inventories, which are preventing a greater rise in global oil prices, according to Saudi Oil Minister Khalid Al-Falih. Earlier that same month , Saudi Aramco said it would cut crude supplies to China, South Korea, and South East Asia by 1 million barrels each. […]

Rising insurgency hits Diyala, despite security efforts

9 Jun 2017   Iraq

Significant uptick in past four days IS safe havens in rural and mountainous areas from Tuz Khurmatu to Naftkhana Proximity to Baghdad concerns security officials Hamrin field wellheads and electricity towers frequent targets Militants in Diyala province have launched a spate of deadly attacks targeting government and security officials, civilians, and energy infrastructure – a sign that heightened security efforts in the area have had little success at quelling a rising insurgency. In the past four days, Diyala has suffered two suicide bombings, two kidnappings, an IED attack on […]

Wood Mac: Iraqi oil sector underperforming

1 Jun 2017   Iraq

A high-risk operational environment coupled with a difficult bureaucracy and market conditions means Iraq is underperforming in oil, Wood Mackenzie found. Iraq is one of the largest producers in the Organization of Petroleum Exporting Countries and agreed to limit it output to 4.35 million barrels per day for the first half of the year under the terms of a multilateral agreement to curb production to balance an oversupplied market. As the post-U.S. invasion dust settled, Iraq late in the last decade opened its doors to international investors and set its sights on producing as much as 12 million bpd. A report published Wednesday from analytical group Wood Mackenzie said Iraq is a low-cost producer that hosts […]

Pearl takes arbitration victory against KRG to U.S. court

29 May 2017   Iraq

Kurdistan’s leading gas investor is looking to affirm $2 billion in awards against the KRG, potentially paving the way for enforcement action, while lining up $26.5 billion in further claims. An engineer looks out over gas processing facilities at the Khor Mor field, which is operated by the Emirati companies Crescent Petroleum and Dana Gas, in 2013. (JACOB RUSSELL/Iraq Oil Report/Metrography) The Kurdistan Regional Government (KRG) is facing the prospect of a $2 billion U.S. court order as its leading gas investor seeks to confirm a series of prior arbitration awards in international jurisdictions.Pearl Petroleum – together with affiliated UAE energy companies Dana Gas and Crescent Petroleum – applied on May 12 to the U.S. District Court in the District of Columbia for “recognition and enforcement” of awards made in litigation in the London Court of International Arbitrat… This content is for registered users. Please login to continue. If […]

Iraq exports steady in April

9 May 2017   Iraq

Iraq’s April oil export levels were virtually unchanged compared to March, providing another indicator that the Oil Ministry is not planning further production cuts as several oil producing countries attempt to prop up the slumping oil price.The federal government sold 3.252 million barrels per day (bpd) in April, compared with 3.259 million bpd in March, according to the Oil Ministry. Iraqi oil sold by the federal government averaged $47.188 per barrel in March and $47.275 per barrel in Apr…

More oil activity expected in Kurdish Iraq, DNO says

5 May 2017   Iraq

First quarter results mean current market conditions support a doubling of the amount of activity in Kurdish oil fields, a Norwegian energy company said. Norwegian oil and gas company DNO said first quarter results showed a profit of $15 million, against a $31 million loss in the previous term. Revenues were up 83 percent. As a result, the company said it was expanding its investment program for the year, “including doubling of planned 2017 wells at the Tawke field in the Kurdistan region of Iraq.” The company said it plans eight new production wells in its flagship assets in the Kurdish north of Iraq, which is under threat, but largely isolated from regional conflict attributed to […]

Assassins kill North Gas Company deputy DG

3 May 2017   Iraq

Masked gunmen assassinated the deputy director general of the state-run North Gas Company (NGC) Tuesday morning in Kirkuk.Iraq’s northern oil sector has been buffeted by violence in recent years, due to attacks by militants from the self-proclaimed Islamic State (IS) group, friction between rival political factions, and mafia-style violence.Tuesday’s incident echoes a series of assassinations in 2015 that targeted senior Kirkuk-based oil officials.Mohammed Younis Salih Kali was being…

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Iraq says will go with consensus at next OPEC meeting

28 Apr 2017   Iraq

Iraq will go with the consensus reached by OPEC when the oil exporter group meets in Vienna next month to discuss extending production cuts, the country’s oil minister said on Thursday. “Now we’re going on the 25th of May to OPEC and we’re definitely going to be in line with OPEC’s final decision and collective decisions,” Jabar al-Luaibi told a conference in Paris. Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries, was in full compliance with the OPEC-led supply pact reached last year and has achieved about 97 percent of its output reduction target, Luaibi said. “Iraq is fully committed and Iraq is in full compliance with OPEC members,” Luaibi said. He added that the OPEC-led cuts were […]

OPEC’s No.2 Plans Significant Raise In Crude Output Next Year

26 Apr 2017   Iraq

Iraq has started work on the third and final phase of the Halfaya oil field expansion, with the goal to double production capacity next year, a company official at the state-run firm overseeing fields in the province told Reuters on Tuesday. With more facilities to separate crude oil from associated gas, production capacity at the Halfaya oil field is set to double to 400,000 bpd in 2018, said Adnan Noshi, head of Maysan Oil Co. The Halfaya oil field, operated by PetroChina, is the biggest field that Maysan Oil is overseeing, and is pumping 200,000 bpd. The total production of Maysan Oil is currently 380,000 bpd, Noshi told Reuters. Iraq, OPEC’s second-biggest producer behind Saudi Arabia, plans to boost its crude oil production by 600,000 bpd to 5 million bpd by the end of this year, regardless of its participation in OPEC’s production cut deal. Iraq has been the […]

British company Petrofrac lands $70 million contract in Iraq

26 Apr 2017   Iraq

British energy company Petrofac said Tuesday it scored a multimillion-dollar contract in part to help Iraq expand port facilities for the Persian Gulf. “Over the coming months we will focus on effective deployment of our operations, engineering and projects’ activities across the contracts to enable our clients to unlock maximum value from their oil and gas assets,” Petrofac’s regional managing director, Mani Rajapathy, said in a statement . The British company in December secured a $75 million contract to help with the expansion of a crude oil export facility at a southern Iraqi port at Basra. The Iraqi government is developing the southern export expansion project with the goal of expanding exports capacity from offshore facilities by […]

Turkey kills allies in strike on Sinjar

26 Apr 2017   Iraq, Turkey

The bombing raid targeted a PKK affiliate, but KRG Peshmerga were killed. A former IS group hideout occupied by fighters from several PKK-aligned militias west of Sinjar, Nov. 12, 2015. (PATRICK OSGOOD/Iraq Oil Report) Turkish jets bombed several positions on and around Iraq’s Sinjar Mountain overnight Tuesday, killing at least six members of the Kurdistan Regional Government’s (KRG) security forces.The Turkish military said it was targeting an affiliate of the Kurdistan Workers’ Party (PKK), which has waged a decades-long guerrilla war against the Turkish state, although no PKK-backed fighters appear to have been killed in the Sinjar strikes.Neither the Iraqi nor Kurdistan governments said they had a… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Iraq begins final expansion phase at Halfaya oil field aiming to double output

25 Apr 2017   Iraq

Iraq has launched the third and final phase of work to expand its southern Halfaya oil field, aiming to double its output capacity in 2018 to 400,000 barrels per day, a state-run oil company said. Additional facilities to separate crude oil from associated natural gas will be set up as part of Halfaya’s expansion, Adnan Noshi, head of Maysan Oil Co which oversees oilfields in Maysan province, told Reuters on Tuesday. Halfaya, operated by PetroChina, is Maysan Oil’s largest field, producing 200,000 of the company’s total output of 380,000 bpd, Noshi said. Expansion at Halfaya should raise Maysan’s overall output to nearly 600,000 bpd in 2018, he said. Iraq plans to increase its oil output capacity to 5 million bpd before the end of the year. Output stood at more than 4.7 million […]

Production stops falling as Iraq claims OPEC compliance

25 Apr 2017   Iraq

Iraq’s attempts to reduce oil production appear to have leveled off in March, as senior oil officials said they are fully complying with OPEC cuts.The country produced an estimated 4.586 million bpd in March, according to an analysis of field-by-field data gathered by Iraq Oil Report – a .4 percent increase from the February output levels reported by the Oil Ministry to OPEC.Month-to-month oil export levels also held steady: the Oil Ministry reported 3.259 million bpd of federal oil sale… This content is for registered […]

Kurdistan pushes for independence referendum

15 Apr 2017   Iraq

The quest for independence has been a perennial feature of political rhetoric in Kurdistan, but now leaders are taking significant new steps in pursuit of that aspiration.The Kurdistan region’s top political parties have agreed to hold a non-binding referendum on independence, while also launching parallel efforts to secure foreign support and to plan for the logistics of statehood.”We’ve made it crystal clear that holding a referendum is a legitimate right of our nation, and we will p… This content is for registered users. […]

Saudi Arabia, Iraq, Kuwait Aim for $60 a Barrel Oil Price

Some of OPEC’s biggest oil producers, including Saudi Arabia, are now targeting $60 a barrel as the level where they want to push crude prices, OPEC officials said, signaling they will support additional production cuts next month. Saudi Arabia, Iraq and Kuwait believe $60 a barrel will lift their economies and allow for more energy-industry investment, the officials said, without jumpstarting too much American shale output, which…

Kurdish oil developer says it’s primed for growth

7 Apr 2017   Iraq

Gulf Keystone Petroleum, an operator in the Kurdish north of Iraq, said in a regular update to shareholders it’s “primed for future development.” Gulf Keystone said the average production from its flagship Shaikan oil field in the Kurdish north of Iraq was 34,749 barrels per day, at the upper end of its guidance. Production during the first quarter averaged 36,293 bpd. The company, which has headquarters in London, was the target of an unsolicited takeover from rival Iraqi player DNO, a Norwegian oil company. In 2015, Gulf Keystone mulled possible partnerships, but emerged last year with an agreement with the majority of its creditors and shareholders to restructure its debt obligations CEO Jon Ferrier said the company is […]

OPEC’s No.2 Goes Rogue: Plans 600,000 Bpd Oil Output Increase

6 Apr 2017   Iraq

Iraq has plans to boost its crude oil production by 600,000 bpd to 5 million bpd by the end of this year, regardless of its participation in OPEC’s production cut deal. Iraq is the cartel’s second-biggest exporter of crude and has been the most disinclined of all parties to the agreement since its inception, with a lot of observers expecting it to be the first one to cheat. Iraq’s first problem is that as much as 95 percent of its budget revenues come from crude oil. There are no viable alternatives in sight for revenues at the moment. The second problem that the country has to contend with is its war with Islamic State, which makes these revenues more important than ever. Amid the final push against IS in Mosul, Iraq is working hard to ensure the sustainable growth of its oil and gas industry—OPEC deal or no OPEC […]

Obliterating ISIS May Hamper Iraqi Oil Production

6 Apr 2017   Iraq

Iraq says it cut output by 300,000 bpd in March, taking production down to an average of 4.464 million barrels per day (mb/d). That puts Iraq at about 98 percent compliance with the OPEC deal. But Iraq’s oil production could fall involuntarily if a dispute between the central government and the Kurdish Regional Government (KRG) continues to escalate. Some of the oil fields around Kirkuk, in northern Iraq, are controlled by the semi-autonomous region of Kurdistan, while others are controlled by the federal government of Iraq. Back in 2014, when ISIS burst onto the scene, territory was quickly swallowed up by the militant group. Amid the chaos, the Kurds swept in and seized parts of territory in and around Kirkuk as the Iraqi government appeared too weak to defend the city and its oil fields. While the bulk of Iraq’s oil is produced from the massive oil fields in […]

Iraq starts new oil contract review

5 Apr 2017   Iraq

The Oil Ministry plans to develop a new contract model for future projects and has contracted Iraqi-Norwegian consultant Farouk al-Kasim as it explores adjustments to existing TSCs. Lukoil Vice President Gati al-Jebouri (left) speaks on a panel about IOC investment at the Iraq Energy Forum in Baghdad, April 2, 2017. (Source: Iraq Energy Institute) Iraq is undertaking a new review of its oil contracts in an effort to better align the interests of the government and international oil companies.Oil Minister Jabbar al-Luiebi said that, as the ministry solicits investment in new upstream projects, it is likely to move away from the technical service contracts (TSC) that have structured Iraq’s relationship with oil companies since 2009.”The future contracts, we will have different models,” Luiebi said in an interview Tuesday with Iraq O… This content is for registered users. Please login to continue. If you are not a registered user, you […]

OPEC’s Barkindo says ‘encouraged’ by Iraq’s progress towards cut compliance

4 Apr 2017   Iraq, OPEC

OPEC Secretary General Mohammed Barkindo said he has emerged “encouraged” from a meeting over the weekend with Iraqi officials about the country’s compliance levels with the OPEC/non-OPEC production cuts agreed late last year. “We cannot seek anything less” than 100% compliance, Barkindo said Sunday at the Iraq Energy Forum in Baghdad. “Full implementation of the OPEC agreement is crucial.” Iraq has faced criticism for not fully complying with its required cut, but officials with the Iraqi oil ministry have pointed to the country’s sharp fall in exports as evidence it is complying. Iraq’s declared exports are 276,000 b/d lower than they were in December, the last month before the agreement went into force. The agreement, however, covers production not exports, and Iraq’s declared output of 4.464 million b/d for March remains 113,000 b/d above its quota of 4.351 million b/d under the deal. Falah Alamri, Iraq’s OPEC governor and […]

Is An Iraqi Production Slowdown Inevitable?

4 Apr 2017   Iraq

A tremendous amount of digital, and real, ink has been spilled on the ongoing oil crash, much of it has been focused on U.S. shale production. Yet, the country that has grown production the most over the last two years, Iraq, has only been mentioned in passing by most observers. Between 2014 and 2016, global oil production grew by 3.3m barrels, 33 percent of that increase, or 1.1m barrels came from a single country: Iraq. If Iraq had maintained its pre-crisis production level of 3.3m barrels, the oil crisis would have been much shallower. Understanding where Iraq’s production is heading is key to understanding where oil prices will go, but like most things, understanding the future requires that you understand the past. In 2009, six years after the U.S. invasion of Iraq, Iraq undertook a series of licencing rounds for the development of its giant southern oil fields. That […]

Iraq has pledged to fully comply with oil cut deal, OPEC chief says

3 Apr 2017   Iraq

FILE PHOTO: Flames emerge from flare stacks at the oil fields in Basra, Iraq, January 17, 2017. Iraq has assured OPEC it will fully comply with an agreement to cut oil supply in order to bolster crude prices, OPEC Secretary General Mohammed Barkindo said on Sunday in Baghdad. Iraq’s compliance stands now at 98 percent, the nation’s oil minister Jabar al-Luaibi told reporters, after addressing a conference in the Iraqi capital, also attended by Barkindo. Compliance with the deal agreed by OPEC and non-OPEC producers at the end of last year to cut supply is “encouraging,” Barkindo told the forum. General compliance with supply cuts by the oil producers was 86 percent in January and 94 percent in February, he added. The market is already balancing, Barkindo said, adding stocks of crude were coming down. Luaibi said he was satisfied with the existing deal, but declined to say whether […]

A Squabble at Iraq’s Oldest Oil Field Could Rock Global Supplies

3 Apr 2017   Iraq

A territorial dispute in northern Iraq threatens to disrupt oil output at a field containing as much crude as Norway, even as U.S.-backed forces prepare what could be a decisive blow against Islamic State militants in the nearby city of Mosul. Kirkuk, where Iraq first discovered oil in 1927, can produce more than 1 million barrels a day but is pumping at less than half its capacity while competing ethnic and political groups scramble to control its 9 billion barrels of reserves. 1. What’s behind the tensions in Kirkuk? Lying near a disputed city of the same name, the Kirkuk field is a tinderbox for potential conflict between the central government and Iraq’s semi-autonomous Kurds, both of whom have for decades claimed it as their own. More recently, it also became became a flashpoint for rival Kurdish political parties and their heavily armed supporters. “As Islamic State becomes less […]

Russian oil company reached Iraqi production milestone

29 Mar 2017   Iraq, Russia

Russian oil company Gazprom Neft said it passed a milestone with operations in Iraq by passing the 5 million barrel mark for cumulative production in 2017. The company said it commissioned four wells at the Badra oil field so far this year, bringing the combined total to 14 wells at the field. Total daily production has increased to 80,000 barrels and total output so far this year is in excess of 5 million barrels. “The Badra project is going according to plan, and it’s clear that the infrastructure necessary for increasing oil production is already in place,” project director Denis Sugaipov said in a statement . The company, the oil arm of Russian gas company Gazprom, brought Badra online in late 2013 and tested new pipeline […]

At critical Kurdistan field, reserves fall again

29 Mar 2017   Iraq

One of Kurdistan’s iconic oil sector partners, Genel Energy, has once again steeply reduced its estimate of the amount of producible oil at its flagship field.The precipitous decline of the Taq Taq field – once lauded as the crown jewel of the Kurdistan region for its high-quality crude – has stoked anxieties among investors who were already wary of an oil sector buffeted by an economic crisis and nearby war.The fallout was severe enough that another international energy investor, Canada… This content is for registered users. Please login to continue. If you are not a […]

Basra oil terminal damaged in tanker accident

28 Mar 2017   Iraq

An oil tanker collided with a major piece of Iraq’s offshore export infrastructure late Friday, causing extensive damage to one of the four berths that comprise the al-Basra Oil Terminal (ABOT).The country’s overall oil export levels have not been affected, and nobody was seriously injured, even though the accident sent living quarters falling into the Basra Gulf.”It’s very lucky it didn’t hit the [main] living quarters directly,” said one industry official working in Basra, referring to… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Iraq Could Complicate OPEC Extension

18 Mar 2017   Iraq

Oil prices are refusing to budge this Friday, despite a large increase in the U.S. rig count and some bearish noises from OPEC. (Click to enlarge) (Click to enlarge) Friday, March 17, 2017 Oil prices are set to close out the week unchanged from a week earlier, having moved up and down over the past few days. The latest report from the EIA was a merciful one for crude, showing a small but all-important drawdown in crude inventories. Had crude stocks jumped again last week, oil prices surely would have dropped significantly. Still, there is a weak case for much higher oil prices in the near-term, given that U.S. inventories are still at a record high and oil production is rising. Saudi Arabia prepared to extend cuts if inventories remain high . Saudi Arabia’s energy minister Khalid al-Falih said in a Bloomberg interview that OPEC would be prepared to […]

Intra-Kurdish tensions high amidst provocations and protests

18 Mar 2017   Iraq

A volatile rivalry between two Kurdish factions, which burst into deadly fighting two weeks ago in Sinjar, continues to escalate with protests and provocative troop movements.Forces aligned with the Kurdistan Democratic Party (KDP) of Massoud Barzani, the acting president of the Kurdistan Regional Government (KRG), have deployed to several areas in Erbil and Dohuk provinces, provoking demonstrations and creating friction with local residents.The deployments appear to be a response to the… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Iraq’s oil exports dip so far in March after OPEC cut

17 Mar 2017   Iraq

Oil exports from Iraq’s southern terminals have edged lower so far in March, according to loading data and an industry source, although not as much as expected, potentially raising questions over the country’s compliance with OPEC production cuts. A March loading program had pointed to southern exports from OPEC’s second-largest producer falling to 3 million barrels per day (bpd), which a source familiar with the matter said was related to Iraqi efforts to comply with OPEC cuts. But exports from southern Iraq – the outlet for most of the country’s crude – in the first 14 days of March have averaged 3.25 million bpd, according to shipping data tracked by Reuters and by an industry source. Two Iraqi oil officials said on Wednesday the rate in the first half of March […]

Intra-Kurdish tensions high amidst provocations and protests

17 Mar 2017   Iraq

A volatile rivalry between two Kurdish factions, which burst into deadly fighting two weeks ago in Sinjar, continues to escalate with protests and provocative troop movements.Forces aligned with the Kurdistan Democratic Party (KDP) of Massoud Barzani, the acting president of the Kurdistan Regional Government (KRG), have deployed to several areas in Erbil and Dohuk provinces, provoking demonstrations and creating friction with local residents.The deployments appear to be a response to the…

Iraq Plans to Boost Crude Oil Production and Exports This Year

16 Mar 2017   Iraq

Iraq pumped 4.57 million barrels a day of oil in February and plans to boost output later in the year even as the OPEC member reaffirmed its commitment to the group’s decision to cut production to counter a global glut.  The country plans to increase output to 5 million barrels a day by the end of 2017, Oil Minister Jabbar Al-Luaibi said Wednesday at a news conference in the southern city of Basra. Iraq exported 3.87 million barrels a day from its southern and northern shipment hubs in February, the ministry’s spokesman, Asim Jihad, said in an emailed statement.

Q&A: Oil Minister Jabbar al-Luiebi

14 Mar 2017   Iraq

By the end of the year, Iraq plans to shatter the record-setting benchmarks it achieved in 2016 for both oil and gas production.Despite an OPEC agreement to limit global supply, Oil Minister Jabbar Ali al-Luiebi said Iraq will reach 5 million barrels per day (bpd) of oil in 2017, and capture 1.36 billion standard cubic feet per day (scf/d) of gas.Since taking the helm of the Oil Ministry seven months ago, Luiebi has made quick work in trying to streamline the bureaucracy and put an arra…

Iran leapfrogs Iraq as India’s no. 2 oil supplier in February: trade data

13 Mar 2017   India, Iran, Iraq

India’s oil imports from Iran rose nearly 17 percent in February from a month earlier as refiners received less crude from key OPEC producers Saudi Arabia and Iraq after an OPEC deal to cut output, shipping data showed on Monday. The jump meant Iran replaced regional rival Iraq as India’s second-biggest oil supplier – a role Tehran used to occupy before Western sanctions were imposed against it over the country’s disputed nuclear program. While Saudi Arabia remained the biggest oil supplier to India, ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts showed imports from Iran rose to 647,000 barrels per day (bpd) in February. That was 16.7 percent more than January, and almost trebled from February […]

Oil Ministry confirms February export decline

11 Mar 2017   Iraq

Iraq’s Oil Ministry released official export data for January and February on Thursday, confirming prior estimates by Iraq Oil Report suggesting that the country was reducing output in its effort to conform with an OPEC quota agreement.The federal government exported an average of 3.32 million barrels per day (bpd) in January and 3.27 million bpd in February, the ministry said. Those figures do not include oil sold independently by the Kurdistan Regional Government (KRG).Throughput data …

Kirkuk oil crisis subsides as PUK faction withdraws

10 Mar 2017   Iraq

An armed faction of the Patriotic Union of Kurdistan (PUK) political party has withdrawn from key energy sites in Kirkuk, signaling at least a temporary resolution to a crisis over the province’s oil and gas resources.The drawdown, which began Wednesday, followed a meeting in Sulaimaniya on Tuesday between Iraqi Prime Minister Haider al-Abadi and senior PUK leaders, including Hero Talabani and Kosrat Rasul, according to a member of the PUK leadership council.Their discussion centered on … This content is for registered users.

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Why Kurdish Oil Is a Wild Card for Markets:

9 Mar 2017   Iraq

If Iraq’s Kurdish territory were a country, it would probably qualify for OPEC membership. It wouldn’t even be the smallest member, given its production of about 600,000 barrels of oil per day. That’s an impressive achievement for a landlocked enclave that started exploring only a decade ago. The region’s potential is greater still, though it faces political, military and economic challenges to expanding its output. 1. Why does the Kurdish region matter to oil markets? The semi-autonomous Kurdistan Regional Government says the area’s reserves could total 45 billion barrels, more than Nigeria’s, and Kurdish crude is generally cheap to extract. When foreign investors tramped into the region’s oil fields after the fall of Saddam Hussein’s regime, the crude was so abundant it seeped from the ground beneath their feet. Tony Hayward, former BP Plc boss turned wildcatter, called Iraqi Kurdistan “one of the last great frontiers” in the oil […]

Overhaul planned for refinery in Kirkuk, Iraq

9 Mar 2017   Iraq

The refining capacity of a complex in the northern Iraqi city of Kirkuk will be expanded in part to better serve community needs, the Iraqi oil minister said. “The Ministry of Oil is working to add a new refining unit to Kirkuk refinery with a capacity of 10,000 barrels per day before the end of the year,” Iraqi Oil Minister Jabar al-Luaibi said in a statement . The northern city of Kirkuk has been at the center of disputes between the central government in Baghdad and the semiautonomous Kurdistan Regional Government. The terrorist group calling itself the Islamic State waged an offensive on Kirkuk last year. The oil minister said in a telegram to Iraqi Prime Minister Haider al-Abadi that refinery development […]

Why Kurdish Oil Is a Wild Card for Markets: QuickTake Q&A

9 Mar 2017   Iraq

If Iraq’s Kurdish territory were a country, it would probably qualify for OPEC membership. It wouldn’t even be the smallest member, given its production of about 600,000 barrels of oil per day. That’s an impressive achievement for a landlocked enclave that started exploring only a decade ago. The region’s potential is greater still, though it faces political, military and economic challenges to expanding its output. 1. Why does the Kurdish region matter to oil markets? The semi-autonomous Kurdistan Regional Government says the area’s reserves could total 45 billion barrels, more than Nigeria’s, and Kurdish crude is generally cheap to extract. When foreign investors tramped into the region’s oil fields after the fall of Saddam Hussein’s regime, the crude was so abundant it seeped from the ground beneath their feet. Tony Hayward, former BP Plc boss turned wildcatter, called Iraqi Kurdistan “one of the last great frontiers” in the oil […]

Wellheads burn at Hamrin field after deadly IS attack

8 Mar 2017   Iraq

Militants from the self-proclaimed Islamic State (IS) militant group attacked the Hamrin oil field late Monday night, killing four guards and setting multiple wellheads on fire.The attack highlighted the IS group’s ongoing ability to launch guerrilla-style attacks in a swath of territory in northern Salahaddin and Diyala provinces, which Iraqi security forces have ostensibly controlled for more than a year.The Hamrin field, in Salahaddin, is being guarded mainly by paramilitary groups op…

Too soon to say if OPEC should extend output curbs: Iraq

7 Mar 2017   Iraq, OPEC

The Iraqi oil minister said on Monday that it was too early to say if OPEC should extend output curbs and that Baghdad was ready to participate if the producer group decided to prolong supply caps into the second half of the year. “It’s very premature to be talking about any changes,” Oil Minister Jabar Ali al-Luaibi said at an energy conference in Houston. “It will depend on oil prices and market stability. If OPEC decides cuts, then Iraq will cut.” (Reporting by Ruthy Munoz; Writing by Simon Webb)