The Council of Ministers discusses the project of southern Iraq oil integrated

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Iraq sees $53b deal with ExxonMobil, PetroChina very soon

 

Published: May 8, 2019

 

Deal will allow Iraq to generate 750 million standard cubic feet of gas per year. PHOTO: REUTERS

BAGHDAD: Iraq Oil Minister Thamer Ghadhban said on Wednesday he expects his ministry to sign an initial deal with ExxonMobil and PetroChina “very soon”, but did not give a specific date.

“We have managed to take a step forward in resolving some lingering issues in the deal,” Ghadhban said at an oil ministry event.

Once the talks end, the initial deal will be studied by the ministerial energy committee before referring it to cabinet for approval, Ghadhban added.

 

Ghadhban said the deal with Exxon and PetroChina would allow Iraq to generate 750 million standard cubic feet of gas from the two oilfields per year.

Iraq PM heads to oil-rich Basra after violent protests

On Tuesday, Iraq’s Prime Minister Adel Abdul Mahdi said Iraq was close to signing a 30-year energy agreement with both companies, for $53 billion.

Iraq expects to make $400 billion over the 30 years the deal is in effect, the prime minister said.

The southern mega-project involves the development of the Nahr Bin Umar and Artawi oilfields and an increase in production from the two fields to 500,000 barrels per day (bpd) from around 125,000 bpd now, Abdul Mahdi said.

The project is crucial to supplying water to oilfields in the south in order to boost pressure and keep production steady.

Media reports had quoted Iran’s ambassador in London on Monday as saying the United States would grant waivers to Iraq allowing it to deal with Iran economically, in exchange for Baghdad signing an oil deal with Washington.

“Talks now between the oil ministry and ExxonMobil and PetroChina are focused on how to split profits if oil prices rise or decline,” Abdul Mahdi said in response to a Reuters’ question on the obstacles holding up a final agreement.

“The deal lasts for 30 years and such financial details are sensitive and should be given more discussions,” he added.

Letter of protest: Foreign media want Walsh back in Pakistan

Iraq is the second largest oil exporter in OPEC and has long-term aims to boost output curtailed by decades of war and sanctions. Such projects are among the most valuable prizes in the world for international oil companies. An initial agreement would be a big boost for ExxonMobil’s plans to expand in Iraq.

It is also one of the only countries in the world to have friendly relations with both the United States and Iran. Tehran and Washington, arch enemies elsewhere, are Baghdad’s main allies and vie for influence there.

ExxonMobil and PetroChina will build a water injection project to feed oil wells in the south, as well as rehabilitate and build new export pipelines, Abdul Mahdi said.https://tribune.com.pk/story/1968638/2-iraq-sees-53b-deal-exxonmobil-petrochina-soon/

[yota691]

The Council of Ministers discusses the project of southern Iraq oil integrated

Part of the meeting of the Iraqi Council of Ministers headed by Adel Abdul Mahdi, the Prime Minister

 08 May 2019 11:42 p

Direct: The Iraqi cabinet held its regular session in Baghdad, on Tuesday evening, headed by Prime Minister Adel Abdul Mahdi.

The cabinet, according to a statement issued by the Iraqi government, briefed on the negotiations led by the Iraqi Ministry of Oil with Exxon Mobil and PetroChina; on the project of southern Iraq integrated.

The project, according to the statement, consists of the construction of oil pipelines, storage facilities and a project to pump sea water from the Gulf to the oil fields; to maintain pressure to increase production rates and raise Iraq's export capabilities.

The Cabinet discussed ways to boost the agricultural sector to increase self-sufficiency and enhance food security in Iraq and rely on national capacities, including the new procedures that were started this year to ensure that farmers receive their financial benefits within 48 hours after receiving marketing centers for wheat and barley crops.

The Council discussed a number of other projects and initiatives.

[6ly410]

Iraq reaches $53 billion initial deal with ExxonMobil, PetroChina: PM Abdul-Mahdi

By Rudaw 45 minutes ago 

85Views

         http://www.rudaw.net/mobile/english/middleeast/iraq/080520191

Iraqi Prime Minister Haider al-Abadi delivers his weekly press conference in front of reporters in Baghdad, Iraq, on May 7, 2019. Photo: GoI YouTube

ERBIL, Kurdistan Region — Iraq reached an initial agreement with mega firms ExxonMobil and PetroChina for the production of oil and natural gas and for the provision of water in Basra, Iraqi Prime Minister Adil Abdul-Mahdi has announced.

“We have made a deal with ExxonMobil and PetroChina to develop Artawi and Bin Umar fields ... in addition to the extraction of [natural] gas and all local logistics. It is in essence an economical mega-project. A $53 billion deal is a tall order but it is significant for the economy,” Abdul-Mahdi told journalists during his weekly press conference that aired late on Tuesday.

Abdul-Mahdi added that the 30-year-long terms of the deal mean profit sharing due to fluctuating oil prices need to be agreed upon by the three parties before it is signed.

Yazan Mash’an al-Jabouri, the son of Iraqi MP Mash’an Jabouri, claimed on Twitter 

on May 4 that the US waiver for “Iraq on sanctions against Iran will be renewed if it [Iraq] signs the investment [natural] gas deal with  ExxonMobil before June 14.” Iranian Ambassador to the UK Hamid Baeidinejad appeared to back up the claim by Jabouri retweeting it.

The Iraqi prime minister denied any links between the mega project and US sanctions on Iranian oil exports. Exxon Mobil is multinational oil and gas corporation is headquartered in the United States. It has yearly revenues which exceed $279 billion. 

He instead referenced the Southern Iraq Integrated Project (SIIP), a project for which talks were initiated in 2015 to increase oil production at the Artawi and Bin Umar oilfields in Basra to 500,000 barrels of oil per day (bpd).  

The project lost momentum under Haider al-Abadi, but was prioritised by Oil Minister Thamir Ghadhban upon his appointment as in September 2018. Wider investment has taken place in order to develop oilfields in oil-rich Basra, with the Iraqi oil ministry allocating more than $5 billion in investments there earlier this year.

The deal will increase oil production at both Artwin and Nahr Umar oilfields from 100,000-125,000 bpd, totaling more than 500,000, according to Abdul-Mahdi.

“Iraq will receive about 88 percent of [the profit] from the project in 30 years, which is about $400 billion. Discussions are being had on how the additional profits will be distributed,” he said.

ExxonMobil and PetroChina will also establish a water injection project to provide water for the oil wells, “as the production of a barrel of oil requires many barrels of water,” explained the premier.

Basra province has seen waves of protest in recent years, culminating in mass demonstrations last summer. Suffering from mass unemployment, a lack of access to clean water and intermittent electricity access, protestors demanded basic services and jobs. Abdul-Mahdi's predecessor, Haider al-Abadi, responded to those protests by promising increased jobs for locals, while also sending in federal forces to quell the riots. 

While Abdul-Mahdi said this new project will be "for the benefit of Iraqis" and a source of job opportunities, it is unclear whether these jobs will go to Iraqis, given many foreign staff are employed across Iraq’s oil sector as laborers and engineers among other job positions.
 

This initial deal follows another initial infrastructural agreement signed by Abdul-Mahdi during his first trip to Germany on April 30 — a $14 billion memorandum with Siemens, aiming to improve the country’s electricity grid.

Abdul-Mahdi said on Tuesday that the agreement with Siemens “is the first time Iraq is able to reach such a deal with a big company,” which was contracted in order to “draw up a masterplan for electricity.”

Iraq is second only to Saudi Arabia among OPEC members in terms of oil exports. OPEC's members had agreed not to increase oil production individually. Iraqi Oil Minister Ghadhban said in Qatar this week that his country “respects” the OPEC decision.

Iraq has a population of more than 40 million, according to the US CIA World Factbook and is climbing by approximately 1 million people per year. The growing population puts a tremendous strain on the country’s services and jobs sectors.

Iraq is seeking to avoid a regional tug-of-war between perceived US and Iranian interests.  

 

[6ly410]

Cabinet discusses Southern Iraq Integrated Project

https://gds.gov.iq/cabinet-discusses-southern-iraq-integrated-project/

 08 May 2019 - 11:08 am  

 

The Cabinet held its regular meeting in Baghdad on Tuesday under the chairmanship of Prime Minister Adil Abd Al-Mahdi.

The Cabinet received a briefing on negotiations led by Iraq’s Ministry of Oil with ExxonMobil and PetroChina on the Southern Iraq Integrated Project.

The Southern Iraq Integrated Project is a mega energy and infrastructure scheme consisting of building oil pipelines, storage facilities and a seawater supply project to inject water from the Gulf into reservoirs to increase oil production and Iraq’s export capacity.

The Cabinet discussed support measures for the agricultural sector with the aim of increasing self-sufficiency and food security in Iraq.

The Cabinet reviewed the successful implementation of the expedited payment scheme to farmers which ensures that they get paid within 48 hours of delivering their wheat harvest to grain marketing centres across Iraq.

The Cabinet also discussed several other initiatives and policies.

[10 YEARS LATER]

4 hours ago, nannab said:

 

 Not even close   

 

 

What 10 said   

 

I can only imagine the frustration Iraqis feel having to endure this nonsense day in a day out. These folks want/need so much to live a good life raising families, a good job and so on.

 

Their Government on the other hand sand bags and foot drags all the while filling their pockets with $$$$.

[yota691]

Iraq is heading to build the largest oil investment project

Wednesday, 08 May 2019 46

 

Baghdad / Farah Al-Khafaf

 

 

Oil expert counted the project of southern Iraq integrated (package) one of the largest investment projects in Iraq 

For decades.

Prime Minister Adel Abdul-Mahdi announced on Tuesday the approval of the Council of Ministers on the project to be implemented by ExxonMobil and Petrojina, indicating that Iraq will receive according to preliminary estimates of the project revenues exceeding 400 billion dollars, in addition to the provision of tens of thousands of 

Jobs chances. 

 

increase production

"The project aims to extend oil pipelines, storage facilities and a marine supply project to pump water from the Gulf to the fields of Artawi and the Ben Omar river through the associated pipelines," said expert Hussein al-Marzark. "The project is necessary to increase the production capacity of Iraq from Oil ".

The prime minister said in his weekly press conference: "The value of the project is 53 billion dollars, and the duration of 30 years, as Iraq will receive 88 percent of the estimate exceeds 400 billion dollars," explaining that "Iraq needs to pump water to succeed what is known as pressure In the wells, and the project aims to develop the fields of Artawi and Ben Omar and increase their production of oil to more than 500 thousand barrels per day and the production of 900 mummified gas ».

 

Final stages

"So far, projects need years to reach agreements," he said. "So far, the agreement between the oil ministry and Exxon Mobil and Petrojina has not been signed, but the agreement is in its final stages."

"In 2015, the Ministry of Oil and Exxon Mobil (US multinational) and the Chinese company were in talks to introduce the sea water project within the project to develop oil fields in Basra," he said.

High revenues

The Ministry of Oil, has confirmed the objective of the South Integrated Project development of oil fields, indicating that "this project includes the development of a number of fields, as well as the development of Iraqi oil exports."

"The project will generate high revenues and finance itself," she said.

Al-Marzouq added that "the integrated South project, and in the event of completion will contribute to strengthen the situation of Iraq in the world oil markets, especially as it will remove any fears of the decline of national production, as it will result in increased production and fortitude." 

 

Oil growth

On the other hand, the International Monetary Fund mission to Iraq expected to increase the rate of oil growth by (5.4 percent). 

[ChuckFinley]

8 hours ago, 10 YEARS LATER said:

 

I can only imagine the frustration Iraqis feel having to endure this nonsense day in a day out. These folks want/need so much to live a good life raising families, a good job and so on.

 

Their Government on the other hand sand bags and foot drags all the while filling their pockets with $$$$.

After a while they just turn off the BS and move on with life. Nothing worse than a government that takes away the hope of its people. 

[Pitcher]

https://oilprice.com/Energy/Energy-General/Iraq-Close-To-Signing-Mega-53-Billion-Oil-Deal.html
 

Iraq Close To Signing Mega $53 Billion Oil Deal

By Irina Slav - May 08, 2019, 3:00 PM CDT

Iraq will soon finalize a large-scale, long-term deal for the development of oil fields in the South with Exxon and PetroChina. The 30-year contract will involve investments of US$53 billion and potential returns for Baghdad of as much as US$400 billion over its lifetime, Prime Minister Adel Abdul Mahdi told media this week.

The deal has been in the making for four years and will involve the development of two oil fields in southern Iraq—Nahr Bin Umar and Artawi—and the construction of water supply infrastructure to southern fields in order to keep their production steady. As a result of the project, the combined production of Nahr Bin Umar and Artawi should hit half a million barrels of oil daily, from 125,000 bpd today.

“Talks now between the oil ministry and Exxon Mobil and PetroChina are focused on how to split profits if oil prices rise or decline,” Abdul Mahdi told Reuters in response to a question regarding a potential date for the finalization of the contract.

Iraq, OPEC’s second-largest oil exporter, has made no secret of its plans to considerably increase its oil production rates, despite the two OPEC+ production cut agreements, during which Iraq never really hit its allocated production quota. Raising production in the long term will be challenging, as an IHS Markit reportfrom last year suggested, so the Exxon-PetroChina deal should be a very welcome development.

Iraq, the study noted, has a production capacity for 7 million bpd, but chances are its actual production will only grow marginally over the next decade, to about 5 million bpd, and not just because of the still difficult political and economic situation. Iraq’s oil industry has a purely technical problem: infrastructure and it is in this respect that the Exxon-PetroChina deal’s significance lies. Related: Iran’s Master Plan To Beat U.S. Sanctions

As part of the deal, besides boosting production at Nahr Bin Umar and Artawi, Exxon and PetroChina will build several new export pipelines from southern fields to the coast, and develop a water injection project for the southern fields. Another part of the deal is the production and processing of up to 100 million cu ft of natural gas from the two fields.

Iraq is a minor producer of natural gas and imports what it needs from neighbor Iran. This is not something that Washington is happy about, but as noted in an earlier analysis by Oilprice, the way to fight Iran’s considerable influence in Iraq is a gradual one, and the Exxon deal may well be part of it. In fact, the Iranian ambassador to the UK said that was exactly the case: according to him, the U.S. had allowed Iraq to continue trade with Iran on the condition that it will sign the southern fields contract with Exxon.

“The U.S. sanctions are against countries that buy Iranian oil only, and Iraq doesn’t buy any Iranian crude,” Reuters quoted a Baghdad official as saying. Prim Minister Abdul Mahdi also rejected the suggestion that the deal had anything to do with Iran-Iraq relations.

"This issue (mega-project) started in 2015, and it has nothing to do with the sanctions imposed on Iran. This issue has to do with the Iraqi economy and the Iraqi oil sector," he said as quoted bi Xinhua.

In any case, the deal is a win for all parties involved: it would help Iraq boost its production considerably, and it will also expand Exxon’s and PetroChina’s presence in the Middle East.

[yota691]

Two Iraqi officials: $ 53 billion contract value to be signed with Exxon Mobil and PetroChina

 

Oil field

energy Economy News Baghdad: Two Iraqi officials said that an oil deal will be signed by Iraq in the coming days with two companies Exxon Mobil and Petro China worth 53 billion dollars and extends 30 years. Iraqi Oil Minister Thamir al-Ghadhban said on Wednesday he expected his ministry to sign a preliminary agreement with Exxon Mobil and PetroChina "very soon," but gave no exact date. "We were able to take a step towards resolving some outstanding issues in the deal," Ghadhban said during an occasion for the oil ministry. "Immediately after the talks, the initial agreement will be examined by a ministerial energy committee before being submitted to the cabinet for ratification," Ghadhban said. On Tuesday, Iraqi Prime Minister Adel Abdul Mahdi said Iraq was close to signing a 30-year energy deal with the two companies for $ 53 billion. The prime minister said Iraq expects to reap $ 400 billion over the 30 years that the agreement will take effect. He added that the giant project in southern Iraq includes the development of the fields of Ben Omar and Artawi oil, and increase production to 500 thousand barrels per day from about 125 thousand barrels per day at the moment. Ghadhban said on Wednesday the deal with Exxon and Petro China would allow Iraq to produce 750 million standard cubic feet of gas from the two oil fields a year. Views 52   Date Added 05/08/2019

[10 YEARS LATER]

46 minutes ago, ChuckFinley said:

After a while they just turn off the BS and move on with life. Nothing worse than a government that takes away the hope of its people. 

 

Right you are CF ! I can see the banner in front of the Parliament Building now ....

 

” ABANDON ALL HOPE “

[6ly410]

Abdul Mahdi: They are coming to a major stage of reconstruction

Tuesday 07 May

Abdul Mahdi: They are coming to a major stage of reconstruction
Baghdad / Mohammed Al-Ansari:
 http://alsabaah.iq/8499/عبد-المهدي-مقبلون-على-مرحلة-إعمار-كبرى
 

Prime Minister Adel Abdul-Mahdi revealed the reach of advanced stages in negotiations with international companies to start the implementation of the project «South Iraq integrated» at a cost of $ 53 billion over 30 years, indicating that the value of what will earn Iraq from this project during that period is about 400 Billion, stressing that «Iraq is on the stage of reconstruction and major development will provide tens of thousands of jobs through projects
 Investment ».
"The two visits to Germany and France have produced positive results for Iraq by opening new relations," Abdul Mahdi said during his weekly press conference on Tuesday, revealing a huge project being negotiated with Exxon Mobil and Petrojina at a cost of $ 53 billion. "It is about pumping sea water into the Iraqi oil fields and increasing the production of Artawi and Ben Omar fields to 500,000 barrels. The new project also covers all logistical issues of extraction, transport and export," he said. "This huge project will provide tens of thousands of opportunities. Work, "he added," These projects are among the same D of the public sector that would launch a major economic boom in the country. "
The prime minister denied rumors that Washington had offered to exempt Iraq from sanctions against Iran in exchange for some facilities for US companies specializing in the electricity sector.
The Council of Ministers voted in its meeting yesterday on the integrated southern Iraq project, which is being negotiated between the Ministry of Oil and international companies. The Cabinet also decided to amend paragraph 2 of the Cabinet Resolution No. 194 of 2014 on the sale of state-owned houses and apartments to citizens And staff in advance.

 

Edited May 10, 2019 by 6ly410