Iraq

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)

PUK faction seizes more Kirkuk energy infrastructure

7 Mar 2017   Iraq

“Black Force” special police took over the North Gas Company headquarters Sunday, and continue to occupy the IT-1 station, as tensions over Kirkuk energy resources escalate. Aso Almany, the leader of the “Black Force” special police and head of the PUK’s office in Kirkuk, speaks at a press conference on March 5, 2017. He is flanked by Shwan al-Daoudi (left), Rebouar Taha (right), and Biston Zangana (far right). (KAMARAN AL-NAJAR/Iraq Oil Report) An armed faction within the Patriotic Union of Kurdistan (PUK) political party has seized a second key piece of Kirkuk-area energy infrastructure – further escalating a showdown over control of the province’s oil and gas resources.The so-called “Black Force” special police unit occupied the headquarters of the North Gas Company (NGC) on Sunday, three days after taking over the IT-1 compound, which is a hub for gathering and pumping oil produced in eastern Kirkuk province.”Kirkuk’s govern… This […]

Report: Paramilitary force occupies northern Iraqi oil office

3 Mar 2017   Iraq

Iraqi media reported a Kurdish paramilitary force occupied the offices of a state oil company in Kirkuk in a show of force over the nation’s oil reserves. Forces loyal to the leftist Patriotic Union of Kurdistan entered the Kirkuk offices of the North Oil Co. to stake a claim to the oil in northern Iraq. Aso Mamand, the head of the PUK, was quoted by Iraqi media outlet Rudaw as saying the central government in Baghdad was exploiting the region for its oil wealth. “We have deployed troops to prevent Baghdad from exporting Kirkuk’s oil to Mosul and Baghdad,” he said. “Baghdad wants to export Kirkuk’s oil for the rest of Iraq while our people are in desperate need […]

Despite Promises To Cut, Iraq Raises February Oil Exports

3 Mar 2017   Iraq

Crude oil exports from Iraq went up by 1 percent to 3.85 million barrels daily in February, despite the OPEC oil production cut that has seen Saudi Arabia and other major Gulf exporters cut their shipments abroad. Most of the increase came from the Kurdistan autonomous region, over which the central government in Baghdad has no real control: exports from the northern fields around Kirkuk that are under the control of the Kurdistan Regional Government rose by 9 percent, according to data compiled by Bloomberg. Shipments from Iraq’s largest port of Basra went up by 1 percent. Iraq has been the focus of worry regarding the OPEC deal because of its dependence on oil revenues. OPEC’s second-biggest producer pledged – after much opposition – to reduce its daily output by 210,000 barrels but it has not yet reached the mark. According to the latest data available, at the end […]

Armed political faction interrupts Kirkuk exports

3 Mar 2017   Iraq

The “Black Force” special police unit of the PUK party briefly took over Kirkuk’s IT-1 facility – a sign of deteriorating intra-Kurdish political rivalries. The Jabal Bor production and gas oil separation stations of Kirkuk’s Baba Dome on March 10, 2016. (KAMARAN AL-NAJAR/Iraq Oil Report) Iraq’s northern oil exports were briefly disrupted Thursday when armed units associated with the Patriotic Union of Kurdistan (PUK) political party took over a central oil facility in Kirkuk.The incident is further evidence of a deteriorating rivalry between the Kurdistan Regional Government’s (KRG) two main parties over how to share power, including over energy resources.At around 8:15 a.m., units from the so-called “Black Force,” a Kirkuk-based special police unit operated by the PUK… 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 Are Up, Despite OPEC Output Cuts

2 Mar 2017   Iraq

Iraq’s crude exports rose 1 percent by volume in February, contrasting with a decrease in monthly shipments by Saudi Arabia after both countries agreed to OPEC’s plan to cut oil production in an effort to prop up prices and trim a global oversupply. Exports increased to 3.85 million barrels a day last month, about 39,000 barrels a day more than in January, according to port-agent reports and ship-tracking data compiled by Bloomberg. Shipments from the southern port of Basra grew by about 1 percent, and sales by the Kurdish Regional Government in the north of the country rose about 9 percent, the data show. The Organization of Petroleum Exporting Countries is limiting output in the first half of this year to cut global crude stockpiles that are weighing on prices. The group agreed on Nov. 30 to decrease production by 1.2 million barrels a day, with 11 countries outside […]

February exports fall sharply

2 Mar 2017   Iraq

Iraq’s oil exports in February appeared to fall by nearly 200,000 barrels per day (bpd) compared to the previous month.The country as a whole – including both federal Iraq and the autonomous Kurdistan region – exported about 3.74 million bpd in February, compared to 3.93 million bpd in January.Estimates for both months are based on Iraq Oil Report’s analysis of independently gathered data on tanker loadings and pipeline flows. Neither the federal Oil Ministry nor the Kurdistan Regio…

Iraq Plans Offshore Oil and Gas Exploration to Boost Reserves

28 Feb 2017   Iraq

Iraq is planning to start offshore oil and gas exploration to boost the OPEC nation’s reserves, Oil Minister Jabar al-Luaibi said in a statement on Monday. Luaibi said he “gave guidance to the Oil Exploration Company about the importance of exploring territorial waters to assess the hydrocarbons reserves and to boost Iraq’s capacity”. Iraq last week announced an increase in its oil reserves to 153 billion barrels from a previous estimate of 143 billion barrels. Iraq has boosted output rapidly in recent years with the help of foreign oil companies to become OPEC’s second-largest producer behind Saudi Arabia. It agreed at the end of November to take part in an OPEC agreement to cut global supply to help to lift oil prices. (Reporting by Ahmed Rasheed; Editing by David Goodman)

Inside the black heart of IS’s oil sector

28 Feb 2017   Iraq

On the Mosul outskirts, the IS group’s Iraqi oil refining hub – recently seized by Iraqi forces – shows how the militants used savvy management to fuel their killing machine. A patchwork of rudimentary oil refineries – set up under IS and now abandoned – in the Khafsah area south of Mosul, Feb. 23, 2017. (PATRICK OSGOOD/Iraq Oil Report) At the peak of its hold on Iraq, the self-proclaimed Islamic State (IS) militant group transformed a barren expanse of desert, about four miles south of Mosul, into the black heart of its oil industry.The low-slung hills of Khafsah are now a wasted landscape of mangled metal and explosive ordnance. But until recently this was the site of about 600 primitive oil refineries, which generated millions of dollars’ worth of fuel and revenue that powered the IS group’s murderous operations.Iraq..

One dead in Bai Hassan oil field bombing

27 Feb 2017   Iraq

Two IED attacks have hit northern Iraqi oil fields in the past week. Fire burns from an oil storage tank after a militant attack at the Bai Hassan South oil field in Kirkuk’s Dibis district, July 31, 2016. (STAFF/Iraq Oil Report) At least two improvised explosive devices (IED) exploded at the Bai Hassan oil field on Saturday morning, days after another bomb exploded at another Kirkuk-area field and two weeks after an accident took part of Bai Hassan offline. “Daesh’s sleeper cells in the area are the ones to be accused of the attacks,” said Brig. Gen. Sarhad Qadir, the general director of police for Kirkuk’s districts and sub-districts, using a term for the Islamic State (IS) militant group. At least one Kurdish… 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 […]

Saudi Arabia and Iraq Crude Exports to US Hit Five-Year High

27 Feb 2017   Iraq, Saudi Arabia, USA

Crude oil imported to the United States from Saudi Arabia and Iraq combined has reached a peak not seen since 2012, but the U.S. Energy Information Administration says the volume will likely decline soon.  oward the end of 2016, high production in Saudi Arabia and Iraq, coupled with low domestic demand in Saudi, contributed to the crude export volumes. Saudi exported 8.3 million barrels per day (Mmbpd) in November – its highest volume since May 2003 – before dropping to 8 Mmbpd in December, EIA said in a recent brief. Iraq’s exports hit a record high of almost 4.1 Mmbpd in November, which continued through December.  Both countries’ production was relatively high prior to OPEC’s pledge in November to cut production. Saudi Arabia produced 321,000 bpd and Iraq volumes increased by 700,000 bpd, above the previous year’s levels, according to information from the Joint Organizations Data Initiative. In 2015, Iraq’s production was impaired by economic sanctions.

But with the implementation of the OPEC production cut pledge in January, coupled with U.S. refiners’ ability to use domestic Mars crude oil as feedstock, the export totals may decline, EIA said.  In the United States, Congress is considering a tax on imported goods and services, which could also cut imports from the Middle East. The border adjustment tax (BAT) could boost income for domestic oil and gas producers, but refiners’ are wary of its impact on the heavy crude imports they use for feedstock.

Kurdish government changes oil export options

24 Feb 2017   Iraq

A major player in the oil sector of the Kurdish north of Iraq said it was re-routing exports by government orders, but that won’t impact production levels.  The semiautonomous Kurdistan Regional Government of Iraq said that, starting in February, all crude oil exported from its Shaikan field would move to Turkish export arteries by truck instead of by pipeline until further notice.

Oil Police expose potential Basra refinery threat

24 Feb 2017   Iraq

Oil Police arrested two men suspected of ties to the self-proclaimed Islamic State (IS) militant group Wednesday as they tried to enter the Shuaiba refinery complex in Basra.The men did not appear to have the weapons or equipment necessary to perpetrate an attack, according to a police report obtained by Iraq Oil Report, and the incident raised several unanswered questions about what kind of plot, if any, the refinery might face.The Shuaiba refinery, located in western Basra province, is… T

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Rosneft Expands in Middle East With Libya and Iraq Oil Deals

22 Feb 2017   Iraq, Libya, Russia

Rosneft PJSC , the state-run producer headed by a close adviser of Russian President Vladimir Putin, is expanding its footprint in the Middle East by striking new oil deals with Iraq’s Kurdish region and Libya. Russia’s largest oil producer agreed to buy crude from Libya’s National Oil Corp., the state-run NOC said Tuesday on its website, without specifying the amount. The deal also provides for Rosneft to invest in exploration and production in the North African country. The Russian company announced on the same day it will buy Kurdish oil until 2019 and will study exploration and production opportunities in Kurdish areas, it said in a statement. “These deals combine potentially good economics for Rosneft and good politics for the Kremlin,” Chris Weafer, a partner at Macro Advisory in Moscow, said Tuesday by e-mail. “Expect more deals from Rosneft in the Middle East and North Africa and across the […]

Rosneft signs landmark deal to buy KRG crude

22 Feb 2017   Iraq, Russia

In a sign that Kurdistan’s oil sector is shedding some of its legal and political risk, KRG crude will now supply the refineries of Russia’s largest oil company. A tanker loads crude at the Turkish port of Ceyhan, May 2015. (STAFF/Iraq Oil Report) Kurdistan has signed a three-year crude supply agreement with Russian state oil giant Rosneft, a milestone in the regional government’s efforts to establish an independent oil sector.”It is the first time the KRG has supplied crude directly to a major global oil refiner and reflects the growing confidence of the international oil market in KRG crude,” said a KRG official with knowledge of the deal.The contract is part of a broader cooperation agreement covering upstream, logistics, and … 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 […]

Russia’s Rosneft starts drilling in Iraq

21 Feb 2017   Iraq, Russia

Russian oil producer Rosneft reported Monday it started new drilling operations in Iraq, alongside a Chinese contracting partner. Rosneft said it started a new exploration well, which according to state news agency Tass should be completed by July. The company is working in the area alongside a Chinese contractor, after taking over the operations in October. Rosneft is Russia’s largest oil producer. For the fourth quarter, the company said its net production was up 11.8 percent year-on-year for a new record high. As one of the largest oil producers outside of the Organization of Petroleum Exporting Countries, Russia is contributing to efforts to balance a market that last year favored the supply side. According to statistics, Russian oil producer Lukoil, one of the country’s largest in terms of net […]

Iraqi forces battle their way toward Mosul airport

20 Feb 2017   Iraq

U.S.-backed Iraqi forces fought Islamic State fighters on Monday to clear the way to Mosul’s airport, on the second day of a ground offensive on the jihadists’ remaining stronghold in the western side of the city. Federal police and elite interior ministry units known as Rapid Response are leading the charge toward the airport, located on the southern limit of the Mosul, trying to dislodge the militants from a nearby hill known as Albu Saif. The Iraqi forces plan is to turn the airport into a close support base for the onslaught into western Mosul itself. Islamic State militants are essentially under siege in western Mosul, along with an estimated 650,000 civilians, after they were forced out of the eastern part […]

US Defense Secretary Mattis: No plan to seize Iraqi oil

20 Feb 2017   Iraq

U.S. Defense Secretary Jim Mattis said Monday the United States does not intend to seize Iraqi oil, shifting away from an idea proposed by President Donald Trump that has rattled Iraq’s leaders. Mattis’ arrived on an unannounced visit in Iraq as the battle to oust Islamic State militants from western Mosul moved into its second day, and as the Pentagon considers ways to accelerate the campaign against IS in Iraq and Syria. Those efforts could be complicated by Trump’s oil threat and his inclusion of Iraq in the administration’s travel ban – twin blows that have roiled the nation and spurred local lawmakers to pressure Prime Minister Haider al-Abadi to reduce cooperation with Washington. “I think all of us here in this room, all of us in America have generally paid for our gas and oil all along, and I’m sure that we will continue to […]

Iraq’s February Oil Sales Accelerate Despite OPEC Effort to Cut

17 Feb 2017   Iraq

Daniel Yergin Expects Big U.S. Oil Producer OPEC Response Iraqi crude shipments rose 3 percent in the first half of February even after OPEC’s second-biggest producer agreed to participate in global output cuts to mop up a glut that has put pressure on oil prices. Exports increased to 3.93 million barrels a day in the first 15 days of the month, 122,000 barrels a day more than the average for all of January, according to port-agent reports and ship-tracking data compiled by Bloomberg. Shipments from the southern Iraqi port of Basra grew by 10 percent, while sales by the Kurdish Regional Government in the north of the country were up 13 percent, the data show. The Organization of Petroleum Exporting Countries is limiting output in the first half of this year to cut global crude stockpiles that are weighing on prices. The group agreed on Nov. 30 to reduce […]