Parliamentary Oil: 12 trillion dinars, Iraq losses annually as a result of licensing rounds

[yota691]

Media transparency and publishing details of licensing rounds

Monday 22nd March 2021 20

 

 Baghdad: Morning

 

The Iraqi Alliance for Transparency in Extractive Industries held a dialogue session entitled (The importance of the media's role in publishing licensing rounds contracts) on the Zoom platform, with the participation of 16 media professionals, activists and experts. Licensing rounds in front of the public opinion to evaluate the performance of the agencies that manage the implementation of contracts and hold them accountable in the event of diagnosing any failure or shortcomings in their work.
Dr. Adnan Baheya, a member of the Iraqi Alliance for Transparency in Extractive Industries, a member of the Iraqi Alliance for Transparency in Extractive Industries, spoke in the session, Dr. Adnan Baheya, and the session was moderated by the National Coordinator of the Iraqi Alliance for Transparency in Extractive Industries, Majed Abu Killal.

After several discussions, the participants agreed to present five important recommendations, the most prominent of which is that publishing the licensing round contracts is an important step to enhance transparency in Iraq because these contracts are related to public money management, and the citizen has the right to see them, and the publication of the licensing round contracts signed between Iraqi and foreign companies, It will enable non-governmental organizations, Iraqi civil society and the media to analyze them and facilitate the process of monitoring compliance with its terms by both parties to the contract to ensure proper implementation and diagnose any defects that may harm the public interest.

Also, the participants in the session do not believe that the publication of the licensing rounds contracts will lead to any harm to the interests of Iraq because most of the important commercial points are known, but the details remain undisclosed and these details are important for the process of monitoring contract implementation by civil society and the media.

The participants also recommended the necessity of preparing a clear mechanism to evaluate the performance of the bodies that manage the implementation of contracts and hold them accountable in the event of any failure or default in their work, noting that these authorities currently work without a mechanism for evaluation and accountability, which is the reason for the failure of those responsible for wasting public funds due to decisions that have been proven wrong.

The participants stressed the importance of continuing such sessions between the coalition and the media, to exchange information and promote cooperation to spread awareness about the transparency of the extractive industries sector, as it represents a sector that dominates the state budget revenues, and a huge sector that must be protected from the corrupt.

[yota691]

Play it right even once

 

Jabbar Ali Al-Luaibi

Articles Jabbar Ali Al-Luaibi * I will not go into this episode on the merits of the great challenges that await the oil and gas sector in Iraq, but rather I will leave them for future sessions, but the logic of necessity and preserving the national interest dictates that we must harness what we have from the vast and accumulated experience in the oil industry in order to serve the public good, We send an appeal to the Ministry of Oil that includes presenting our point of view to help in the thorny and hazy situation resulting from the efforts of some licensing round companies to withdraw and sell their shares to other partners, which created, according to my follow-up, a state of turmoil and lack of clarity of visions. In our assessment that unless this situation is dealt with with scientific and practical transparency based on the national interest, the returns will carry with them negatives not a few, and the problems will worsen until it ends in the end to a significant decline in the march of the oil sector as a whole. However, the picture is not completely pessimistic, and there is an opportunity. Gold at the second end of the river is emerging from new developments. It is imperative that the Ministry of Oil harness all its capabilities to create a new beneficial, working, fair and balanced situation in the licensing rounds contracts. It is useful to briefly touch upon the negative and positive aspects, and perhaps the lapses, of those contracts, with a reminder of our opposite position to those contracts during the period of our management of the Southern Oil Company, although I still hold the same belief and conviction in the necessity of making the utmost efforts available to increase the rates of Iraqi oil production and gas investment. ; This is for clear reasons that lie in harnessing the wealth of the country in reconstruction and development. My point of view that I have been trying to clarify regarding these contracts includes many chapters and phenomena, and I will put here a sentence of them: 1 - The contracts covered the vast majority of Iraqi fields, whether developed, under development, or those fields that are not completely developed. It is assumed that the path of those contracts will be based on scientific strategies, plans and programs, and the focus is on giant fields that are not developed and those under development, while the old and working fields are developed through mechanisms and contracts of various forms. 2 - Those contracts were drawn up hastily and urgently; As this number of contracts and their technical, administrative and legal procedures and sections at the highest levels were achieved within a very short period of time; In the end, during the periods of application, this led to the emergence of many lapses and problems. 3 - The contracts did not include any clauses in developing and engaging the national effort in the work process, which may lead to undermining this effort, which has made great and wide achievements in the Iraqi oil industry. 4 - The total ceiling set for the production of licensing rounds fields of 12 million barrels per day is a matter that lacks realism, science and transparency in all aspects, whether at the national level in the form of work volumes and the availability of logistical supplies that are far from reach, or at the external level in the distant global oil markets Far from absorbing and discharging such rates; The thing that, if achieved rates of production, will create turmoil and tension in the global market and a sharp drop in oil prices, not to mention the near-catastrophic consequences for Iraq in fulfilling its obligations in marketing these quantities. 5 - The elements of urgency and the absence of scientific standards and transparency led to the emergence of a state of confusion and imbalance in the evaluation and approval of the participating companies; There are giant oil companies with small companies that do not have sufficient experience in developing fields, even in their country of origin. 6 - The absence of basic and fundamental aspects related to the responsibility of these companies' participation in what is happening in the global oil markets and fluctuations in prices, supply and demand; This makes it imperative for Iraq to discharge and market all the quantities produced by these companies. 7 - The absence of companies ’commitment to the contractual and marketing specifications of Iraqi oil, which were adopted decades ago in oil marketing contracts, and this necessarily means the availability of many aspects of material losses to the country, in addition to the lack of clarity in the areas of measurements and control of the quantities produced. 8 - The mechanisms and methods that have been adopted in concluding such volumes of work for a complex, intertwined and scientific industry with its essence and nature lead to the clear conclusion that there is an imbalance and imbalance in the two sides of the equation between the Ministry of Oil on the one hand and the companies on the other hand. In the second party, all the factors of experience accumulated over decades in management, technology, etc., and in all joints and trends, were met by a state of desertification that afflicted the Ministry of Oil as a result of the circumstances the country went through. 9 - The factor of urgency and acceleration has resulted in the absence of those contracts including basic and important aspects and chapters in building the sector, such as: gas investment, water injection projects, storage and export facilities, and others. 10 - Excluding basic and very important requirements that correspond to the path of success of the entire process, such as building housing complexes, kindergartens, schools, water and electricity systems, and others. 11 - The contracts did not address important chapters in adopting scientific and practical standards and standards in technical and administrative performance and efficiency, based on the nature of work in Iraq. This, and there are many important and basic aspects that are not available to delve into them. Whatever happened, what happened happened! The wheel of licensing rounds proceeded at an accelerated pace dominated by turmoil and confusion in many joints, during which the phenomenon of corruption, low performance and the desired development of the national cadre grew, while managing the wheel of work - and at high rates - was left in the hands of companies during the first years of the companies ’work, which gave them good financial returns. It is useful here to recall that the initial calculations indicate that the total spending on licensing rounds may be equivalent in one way or another to achieving an average of about (7) million barrels per day! While the current rate is (5) million barrels per day. After years without the work of these companies, they began to take a different direction through the introduction of fundamental changes in contracts that will inflict other pages of unfairness and harm on the Iraqi side, and some companies, including Shell, withdrew from Majnoon field, in which work was entrusted to the national effort. An experience that was associated with many complications and problems, but in the end it took the right path. On the face of it, this proposition adopts two different and intersecting directions for one goal: The first indicates the existence of reservations about many of the joints of the licensing rounds, while the second trend highlights the positives in the continuity of the companies ’business. The clear truth is that such conclusions and orientations stem from the preservation of the national interest and which overrides all other interests. To simplify matters, it is necessary to rely on the reality of the developments produced by those tours, the most prominent of which is the creation of new conditions, methods and work environment for the oil sector. In light of the above, and according to the recent developments in the request of a number of companies to withdraw and sell their shares, I am fully and firmly convinced that it is a golden opportunity and a gift from heaven to the Ministry of Oil to deal with the issue with high professionalism and transparency and to develop programs within a strategic plan and a roadmap with stages Five years, during which we will reach the participation of national oil companies at rates not less than 40% for all licensing round contracts and within the following frameworks: First: Reconsidering the provisions of the clause, the judge who is the victim of the decision to withdraw within a period of (90) days, and international oil companies must realize that these contracts are not temporary or limited according to their interests. Rather, there are higher interests for Iraq as well. Second: The agreement between the two parties is accompanied by clear mandatory conditions, the most prominent of which is the commitment of the company requesting the withdrawal to submit plans and work programs for a period of five years to come, and include all stages of development and technical and administrative aspects so as to ensure that the withdrawal process will not affect in one way or another the effect of deviation or neutrality in Development plans. Third: Every withdrawal or sale of shares includes the entry of an Iraqi oil company in percentages of not less than 30% in the new shares, and this condition is binding, and if the matter requires it, the central government must pay financial dues. Fourth: Requiring licensing companies to submit periodic statements of fulfillment of qualification items and raising the performance of national cadres in all technical and administrative fields. Fifth: The need to oblige the company that requested the withdrawal to submit proposals and alternatives to manage the work nationally or jointly in order to avoid the emergence of bottlenecks in the course of the production process. Sixth: The necessity of activating and implementing the doors of training, raising performance and developing national cadres, as well as rehabilitating and developing the operational, service and administrative infrastructure in companies and the center of the ministry. Seventh: Restructuring the Contracts and Licenses Department and ensuring the expansion and revitalization of the issue of reservoir management within the aforementioned department. * Former oil minister Source: term

Number of observations 374   Date of addendum 04/26/2021

[yota691]

Parliamentary energy calls for a review of the licensing contracts

 

Oil field

energy Economy News - Baghdad The Parliamentary Oil and Energy Committee called on the government and the Ministry of Oil to reconsider the formulation of oil licensing rounds contracts. Committee member Amjad Al-Oqabi explained, "The licensing rounds have advantages and disadvantages, and one of their pluses is that we did not previously have oil production in this quantity before the licensing rounds, as it saved many oil wells that were on the verge of extinction, and the tours gave a lot of experience to workers in The national oil sector is made up of Iraqi employees and engineers, "according to Al-Sabah. He pointed out that "licensing rounds were recent to the Ministry of Oil, and there are some mistakes in contracting, perhaps the most prominent of which is contracting for oil extracted in fixed quantities, and the Iraqi government does not have the right to reduce the amount that it contracted in in the Corona crisis, and companies did not reduce the quantities and took the extraction amounts in the same quantities." This is the problem of the first contract. " Al-Aqabi called on "the Ministry of Oil and the government to reconsider and review the issue of these contracts, in a way that guarantees the rights of the Ministry of Oil and the Iraqi people." He stressed that "the licensing rounds contributed to the state's loss of millions of dollars, and that the solution to these problems by forming a committee by the Prime Minister and the Minister of Oil to reformulate these contracts," indicating that "there are five rounds, each round with a quantity of contracts, and the fifth round that was signed at the end of the year." The Ministry of Oil did not proceed with it until now, due to the problems it has, most of them on the Iraqi borders. Al-Aqabi added, "A few days ago, the Ministry of Oil contracted with a Chinese government company to invest Al-Mansouriya gas in the amount of 100 mqqmq for a period of 20 years, and that this achievement is counted by the Ministry of Oil and that it is serious about supplying power stations with this gas."

Number of observations 326   Date added 05/01/2021

[yota691]

Saturday May 1, 2021 | 12:02 PM

| Views: 113

Parliamentary demands to cancel oil contracts with foreign companies

 

The Parliamentary Oil and Energy Committee stressed, today, Saturday, the need to cancel oil contracts with foreign companies, because of the great economic damage they have on Iraq.

A member of the committee, MP Mahmoud Jawad, told "Eye of Iraq News", that "MPs from various political blocs have worked during the last period on the formulation of a parliamentary decision or legislation of a new law, aimed at canceling oil contracts with foreign companies, because of the great economic damages they contain Iraq, especially since the terms of those contracts, are in favor of companies and not in favor of Iraq. "

Jawad indicated that "it is necessary to have oil contracts that guarantee the interests of Iraq and not the interests of foreign companies, but the parliamentary movement is continuing for this matter, but the matter remains in the hands of the government, as it is the party that concludes those contracts from foreign companies."

[yota691]

National experiences and the ability to manage oil operations

Sunday May 09, 2021 57

 

 Baghdad: the pillar of the emirate

Granting the local effort a greater role in participation in the oil fields will benefit the country, and lead to the creation of national expertise that is capable of advanced technologies, and provides large sums of money, at a time when local expertise can be relied on in different work joints within the oil fields.

The new orientation of the national oil policy after the events of 2003 was the shift from complete central control and absolute state sovereignty over the oil sector to giving a greater role to the domestic and foreign private sector, in part of the oil industry stages, with the ownership of oil and gas remaining in the public domain.

 

Academic Dr. Rahim Hassouni said, "The oil policy should benefit the national efforts specialized in the oil issue, as the country has specialized companies that can invest their efforts in operations within the oil fields, without relying on an international effort," indicating that these trends achieve a benefit. "It is large for the country and provides large allocations to be spent on work that can be implemented locally." 

He added that, after 2003, the oil policy became open to the outside and at a wide pace, to attract international oil companies to invest in this sector and to obtain advanced financial and technological resources, efficiency and managerial and technical expertise for companies, to increase production and export capacities in a way that meets Iraq's need of financial resources.

 

Oil Operations

Pointing out that «the investment policy and within the licensing rounds, despite some reservations, it is considered an acceptable point, as the contracts are designed in a way that ensures full state control over all oil operations and the disposal of gas in the best way, and to reach the production peak, and this cannot be reached by the national effort alone. As it is imperative to obtain international experience in managing and maintaining the fields ».

Hassouni added that «the oil sector is a vital sector as a result of its contribution to financing the state’s general budget. Therefore, it is imperative to work according to a clear, long-term strategic vision that includes optimal use of oil and gas revenues by increasing production and export capacities in proportion to the absorptive capacity of the national economy. , And that the local effort is involved in most joints of oil production.

 

National Strategy

In a related context, Dr. Ikram Abdul Aziz, a member of the administrative body of the Iraqi Economists Association, stated that “after the political change of 2003, the Iraqi government adopted, in succession, the integrated national energy strategy. The strategy included the current challenges facing the energy sector and defining the future energy vision, while evaluating the available energy sources. And the study of possible alternatives to exploitation ». 

 

Long plan

And she continued, as a set of future national energy policy objectives were defined in Iraq, with a long-term plan extending to the year 2030 that includes investment and infrastructure development, stressing “the importance of national expertise friction with international companies operating in the local oil sector to acquire Of experience". 

[yota691]

In documents ... a deputy calls for a reassessment of the performance of the current management of the oil exploration company

Political| 06:24 - 05/09/2021

 

 

 

 

 

Baghdad - Mawazine News
, a member of the Parliamentary Energy Committee, Jamal Al-Muhammadawi, called on the Minister of Oil to re-evaluate the performance of the oil exploration company and make the necessary radical changes to enable professional, efficient and honest cadres to manage the company's joints, and work to achieve the main objectives of the company.
According to a document issued by his office to the Minister of Oil, Al-Muhammadawi said, "The observations and points indicating the performance of the oil exploration company clearly indicate the presence of shortcomings in performance and the lack of clarity of vision among those in charge of it as it has not explored new fields, nor has it doubled new oil and gas reserves within the plan. Centralized decision for the investment of the national hydrocarbon wealth in a way that achieves the plans approved by the Ministry of Oil.
He added, "We have identified a major problem represented by the lack of exploration and evaluation drilling operations for the new explored patches and the previously explored patches, and its reflection on the decline in oil and gas reserves and the failure to compensate for the depletion of oil and gas produced with new reserves."
Al-Muhammadawi continued, "Based on the reports of the Office of Financial Supervision, we have noticed essential points in the performance of the company's management, which include the exploitation of the entire proven oil and gas reserves for the purposes of production from the fields of national effort and the fields of licensing rounds and the decrease in added quantities, as well as the concentration of the activity of seismic teams to conduct surveys of national effort fields and licensing rounds. Instead of unexplored patches, which indicates that the priority in managing the company is to implement the programs required of the extractive companies and licensing rounds at the expense of exploration, which is their primary goal.
He stressed that "the company's management did not give priority in exploratory drilling operations to promising structures that are likely to contain large oil and gas fields with light oils."
He pointed out that the company contracted with foreign companies to supply the seismic teams with equipment, and it was prepared (80 - 90%), but it did not enter this equipment to work for a long time.

[yota691]

The annual cost of transporting foreign oil workers is one billion dollars

Thursday 24 June 2021 154

 

 Baghdad: Hazem Muhammad Habib 

 

The Integrity Committee of the House of Representatives revealed that the cost of transporting foreign workers working in foreign oil companies operating in the country amounts to one billion dollars annually, indicating that these companies violated the contract signed with them by refusing to transfer their workers through the national carrier (Iraqi Airways) and the procedure for transportation by air. Emirates to Dubai. 

Committee Rapporteur Abdul Amir Al-Mayahi told Al-Sabah: "The Basra Oil Company pays one billion dollars annually to the UAE airline in exchange for the transfer of foreign workers working in foreign oil companies to their headquarters in Dubai," noting that "foreign companies refuse to transfer foreign workers through the national carrier ( Iraqi Airways Company) and requires transportation via Emirates Airlines, which costs the state huge sums. 

He explained that "one of the paragraphs of the oil licensing rounds indicates that the carrier is a national, and companies do not abide by this paragraph and require that the carrier be an Emirati," noting that "those money is wasted only for the transfer of foreign workers, except for the money that is allocated for housing and studying their children, as well as the tourism aspect. For these, the Iraqi government will bear it."

Al-Mayahi pointed out that “the cost of transporting an official in foreign oil companies who resides in Dubai is about $20,000 to come to Baghdad and participate in the meetings,” and worse than that, according to the decision of the Integrity Committee, that “one of the managers or consultants in those companies that are located in Basra has been Hosting him to attend a meeting in Baghdad, he refused to fly through Iraqi Airways, as they are contractors with Emirates Airlines, so he traveled from Basra to Dubai and from there to Baghdad via Emirates Airlines, and after the meeting ended, he returned from Baghdad to Dubai and then to Basra, and the price of the ticket reached five thousand One dollar per trip, meaning that he costs the state 20 thousand dollars for each meeting he attends in Baghdad.”

Al-Mayahi pointed out that "Iraqi Airways had presented the Basra Oil Company with an offer that included the transfer of labor at a value less than the Emirates airline by 50%, and with the same services provided, but we did not find interest in this matter from the government side, and this is the biggest waste of public money, not to mention the Other contract details. 

The decision of the Parliamentary Integrity Committee considered that "a methodology to steal the Iraqi oil wealth with a legal cover", calling on the government to stop this farce and amend the clauses of the contract.

[blueskyline]

Thank You Yota . GM DV's........https://www.google.com/url?sa=t&source=web&rct=j&url=https://m.youtube.com/watch%3Fv%3Drhar4_r9S6Y&ved=2ahUKEwin6IX9irDxAhVGHM0KHaBGD6sQxa8BegQIDBAE&usg=AOvVaw2rNJ-Ef0Prj39rWifPvVK-

[blueskyline]

Comes with an Amazing Buisness Class lounge too ....https://www.google.com/url?sa=t&source=web&rct=j&url=https://m.youtube.com/watch%3Fv%3DsgfclF5kuEE&ved=2ahUKEwih_O-ojLDxAhVTOs0KHa0EAGoQxa8BegQICxAE&usg=AOvVaw2AXP0L3uz9H4fJCALnzr0I

[yota691]

Parliamentary Integrity: $60 billion of corruption in oil licensing rounds

 

Deputy Youssef Al-Kalabi

energy Economy News - Baghdad The Parliamentary Integrity Committee announced that the amount of corruption in oil licensing rounds has reached $60 billion. A member of the Parliamentary Integrity Committee, Youssef Al-Kalabi, said during the parliament session yesterday, and "Al-Iqtisad News" followed it, that "50-60 billion dollars is the amount of corruption in the oil licensing sacks concluded by the Ministry of Oil," noting that the oil licensing sacks increased production. Iraq 2 million barrels per day. He added that the oil ministry's policy kept the sober companies away and brought in companies that wasted money, stressing that in 2017, Iraq's production should have been 12 million barrels per day and more than $100 billion was spent.

Views 116   Date Added 06/30/2021

[yota691]

Alsumaria News publishes the terms of the oil licensing round

Economie

2021-07-07 | 09:18

 

 

 

 

1,750 views

 

 

Alsumaria News publishes the terms of the oil licensing round (the fifth round), on the exploratory patches and the border, land and sea fields.

 

 

Oil licensing round Oil licensing round

[yota691]

“Suspicions of corruption” affect an Arab company developing Diyala gas fields

Saturday 10 July 2021 231

 

 Baghdad: Omar Abdul Latif

Member of Parliament Mazen Al-Faili revealed that there are suspicions of corruption in one of the Arab companies that were granted the right to develop gas fields in Diyala Governorate.

Al-Faili told Al-Sabah: "A meeting was held by the House of Representatives with Oil Minister Ihsan Abdul-Jabbar and members of the Ministerial Council for Energy from electricity and water resources and others."

He added that "4 axes were presented for discussion between members of the House of Representatives and the Minister of Oil, the most prominent of which are the fifth licensing rounds, and suspicions of corruption regarding the tender contract granted to one of the Arab companies that invested in the Gulabat, Kumar, Khashm al-Ahmar and Anjana gas fields in Diyala Governorate." He stressed that "this contract was not accurate and correct." According to documents presented by the Parliamentary Integrity Committee.

Al-Faili indicated that "the Minister of Oil answered this contract as a technical and specialized matter, and it needs experts in this matter, in addition to the fact that this company is the only one that can work in those areas and has similar works in both the Arab Republic of Egypt and Iran."

[yota691]

In 5 governorates, Iraq signs contracts to dig new oil wells

 2021/08/15

 

 315

Baghdad/Al-Mawred News
, Iraq signed contracts with foreign oil licensing companies to drill new oil wells and reclaim dozens of producing fields in Kirkuk, Baghdad, Basra, Maysan and Nasiriyah, within the framework of a long-term plan to increase oil production to eight million barrels per day at the end of the year 2027.
The director of the drilling company said The Iraqi Ministry of Oil, Basem Abdul Karim, said in a press statement, "The company is in the process of signing a contract to drill 37 oil wells in the Zubair oil field for the Italian company Eni, the main operator of the field in Basra Governorate, for a period of more than two years."
He pointed out, "The Italian Eni recently delivered 14 oil wells and started drilling 3 new wells within a previous contract, bringing the total drilling contracts to about 54 wells in the giant field."
Abdul Karim revealed that "after entering into a competition with major foreign drilling companies to acquire a contract to drill 30 wells in the Rumaila field, west of Basra, it was transferred to the British oil company BP," stressing "the company's readiness to start drilling operations directly upon the announcement." about her victory.
He pointed out that "the signing of a contract with the Chinese company Cinoc, the operator of the Bazarkan field in Maysan, to drill 22 wells in partnership with the Chinese company Bohan, at a cost of up to 160 million dollars," noting "the completion of discussions in this regard that lasted for two years because it was affected by the repercussions of Covid-19."
He announced, "a preliminary agreement has been reached with the Chinese company Cinoc to reclaim 150 wells in the Bazarkan field in two phases. The first is 71 wells, and the second will be implemented later."
In Dhi Qar, Abdul Karim explained that “the company is currently implementing a plan to drill 20 wells in the Nasiriyah field, with the participation of the American company Weatherford, which will enhance the strategy of escalating production and export capacity in the future by up to 60 thousand barrels per day, and it is estimated that it contains about 4.4 billion barrels. of raw."

[yota691]

Iraqi Drilling announces that it is in the process of signing a contract to drill 37 oil wells in the Zubair field

 

oil field

energy Economy News - Baghdad The Iraqi Drilling Company announced that it is in the process of signing a contract to drill 37 oil wells in the Zubair field. The director of the Iraqi Drilling Company affiliated to the Ministry of Oil, Bassem Abdul Karim, said that "the company is in the process of signing a contract to drill 37 oil wells in the Zubair oil field for the Italian company Eni, the main operator of the field in Basra Governorate, for a period of more than two years ." He pointed out, "The Italian Eni recently delivered 14 oil wells and started drilling 3 new wells within a previous contract, bringing the total drilling contracts to about 54 wells in the giant field ." Abdul Karim revealed that "after entering into a competition with major foreign drilling companies to acquire a contract to drill 30 wells in the Rumaila field, west of Basra, it was referred to the British oil company BP," stressing "the company's readiness to start drilling operations directly as soon as the announcement of its victory." ". He pointed out that "the signing of a contract with the Chinese company Cinoc, the operator of the Bazarkan field in Maysan, to drill 22 wells in partnership with the Chinese company, Bohan, at a cost of up to 160 million dollars," noting "the completion of discussions in this regard, which lasted for two years, as it was affected by the repercussions of Covid-19 ." He announced, "a preliminary agreement has been reached with the Chinese company Cinoc to reclaim 150 wells in the Bazarkan field in two phases, the first 71 wells and the second to be implemented later ." In Dhi Qar, Abdul Karim explained that "the company is currently implementing a plan to drill 20 wells in the Nasiriyah field with the participation of the American company Weatherford, which will enhance the strategy of escalating production and export capacity in the future up to 60 thousand barrels per day, which is estimated to contain about 4.4 billion barrels of oil. raw .” And he confirmed, "The resumption of work in the Garraf field in Dhi Qar for the benefit of the Malaysian company Petronas, the operator of the field," noting that "the drilling company won a contract to drill 28 wells in 2019 and stopped it at the end of the same year due to the Corona pandemic ." Abdul Karim continued, "The company is one of the competing companies for foreign companies to win a contract to drill 27 oil wells for the Central Oil Company, and it received explicit support from the Minister of Oil stating that his company participated in drilling 12 oil wells at the same estimated cost to the company that won the contract and in two phases of the aforementioned contract. ".

Views 101   Date Added 08/15/2021

[yota691]

Iraq signs contracts with licensing companies to drill new oil wells

Sunday 15 August 2021 612

 

 Basra: Saad Al-Sammak 

 

Iraq signed contracts with foreign oil licensing companies to drill new oil wells and reclaim dozens of producing fields in Kirkuk, Baghdad, Basra, Maysan and Nasiriyah, as part of a long-term plan to increase oil production to eight million barrels per day by the end of 2027.

The director of the Iraqi Drilling Company affiliated to the Ministry of Oil, Basem Abdul Karim told Al-Sabah: "The company is in the process of signing a contract to drill 37 oil wells in the Zubair oil field for the Italian company Eni, the main operator of the field in Basra province, for a period of more than two years." 

He pointed out, "The Italian Eni recently delivered 14 oil wells and started drilling 3 new wells within a previous contract, bringing the total drilling contracts to about 54 wells in the giant field."

Abdul Karim revealed that "after entering into a competition with major foreign drilling companies to acquire a contract to drill 30 wells in the Rumaila field, west of Basra, it was transferred to the British oil company BP," stressing "the company's readiness to start drilling operations directly upon the announcement." about her victory.

He pointed out that "the signing of a contract with the Chinese company Cinoc, the operator of the Bazargan field in Maysan, to drill 22 wells in partnership with the Chinese company Bohan, at a cost of up to 160 million dollars," noting "the completion of discussions in this regard that lasted for two years because it was affected by the repercussions of Covid-19."

He announced, "a preliminary agreement has been reached with the Chinese company Cinoc to reclaim 150 wells in the Bazarkan field in two phases. The first is 71 wells, and the second will be implemented later." In Dhi Qar, Abdul Karim explained that “the company is currently implementing a plan to drill 20 wells in the Nasiriyah field, with the participation of the American company Weatherford, which will enhance the strategy of escalating production and export capacity in the future by up to 60 thousand barrels per day, and it is estimated that it contains about 4.4 billion barrels. of raw."

[yota691]

Joint oil fields and international agreements

Wednesday 18 August 2021 98

 

 Baghdad: Hussein Thaghb 

Emphasis on a fair investment of 18 joint oil fields with neighboring countries and in accordance with international agreements, and what is internationally applicable between countries that share crude oil fields, to avoid loss and the loss of the country’s wealth, and that Iraq’s annual loss is estimated at no less than 18 billion dollars due to lack of access An agreement with neighboring countries to organize production operations from joint fields, and international experiences that preceded us can be imitated, to ensure the rights of our country and neighboring countries, and that there should be transparency in production 

from these fields.  

The oil specialist, Alaa Al-Asadi, said: “Talking about the joint oil fields is very important for us, as we have joint fields with most of the neighboring countries, and the investment should be according to the proportions of the field’s presence in the country, and production is based on 

that}.

 

virgin fields

Al-Asadi added that “Iraq has 3 joint fields with Kuwait, which is Al-Rumaila, which is called in Kuwait the Ratqa field, Al-Rawdatain and Al-Abdali, and 9 joint fields with Iran, which are Majnoon, Bazarkan, Abu Gharb, Badra, Al-Naftkhana, Fakkah, Jayasurkh, Beka and Siba, as well as the Azra fields, which are Zurbatiyah and Al-Shihabi, and with Syria Safiya and Tal Al-Hajar.” And Tal Abtakh, and with Saudi Arabia there are three virgin fields, from which production has not yet begun, namely Abu Khaima, Safwi and Al-Rutba.”  

 

Iraq's loss

He pointed out that {some of the joint oil fields have not been produced according to the proportions of the field's existence, for example, we have a field located 

90% of it is in Iraq and 10% in neighboring Iraq, and Iraq produces 250 thousand barrels per day, while the partner that is located 10% of the field in its lands produces 450 thousand barrels per day,” noting that “Iraq’s annual loss is estimated at no less than 18 billion dollars due to lack of access For an agreement with neighboring countries to organize production operations from joint fields.

He stressed that {the amount of oil reserves in these joint fields with Iran, Kuwait and Syria is estimated at 95 billion barrels}, noting that {this number is equal to the consumption of all countries in the world for 3 consecutive years, and this amount is 95 billion barrels equivalent to the UAE reserves of crude oil and equivalent to oil reserves. In Nigeria, Kazakhstan and Libya shared, it is equivalent to 20 times the reserves of Oman's oil.” 

 

oil agreements

It is reported that specialized sources in the field of oil have indicated that the agreements made by countries to exploit the joint oil or gas fields are of two types: the first is the initial agreement, which is a simple agreement that stipulates equal oil production from both countries for the joint field, and the second: the just agreement where production is divided according to a percentage The presence of the field within the territory of each country, and it is done with the help of a company called the third party. Estimation estimates the size of the oil field in each country, and in light of it, the percentage is divided, for example, Iraq and Kuwait agreed in 2019 to hire a British company to develop the optimal plan for the exploitation of oil from the joint fields and in a fair manner according to the division or Evaluation of the third party company.

[yota691]

Oil expert: The amount of oil reserves of the joint fields with Iran, Kuwait and Syria is estimated at 95 billion barrels

 

energy Economy News _ Baghdad The oil specialist, Alaa Al-Asadi, confirmed, on Wednesday, that the amount of oil reserves in the joint fields with Iran, Kuwait and Syria is estimated at 95 billion barrels. Al-Asadi said in an interview with the newspaper "Al-Sabah" and followed by "Al-Iqtisad News", that talking about the joint oil fields is very important for us, as we have joint fields with most neighboring countries and investment should be according to the proportions of the field's presence in the country and production is based on that. He added that Iraq has 3 joint fields with Kuwait, which is Al-Rumaila, which is called in Kuwait the Ratqa field, Al-Rawdatain and Al-Abdali, and 9 joint fields with Iran, which are Majnoon, Bazarkan, Abu Gharb, Badra, Al-Naftkhana, Fakkah, Jayasurkh, Beka and Al-Siba, as well as the virgin fields, which are Zurbatiya and Al-Shehabi, and with Syria Safiya, Tal Al-Hajar and Tal Abtakh. And with Saudi Arabia, there are 3 virgin fields, from which production has not started, namely Abu Khaima, Safawi and Al-Rutbah.   He pointed out that some of the joint oil fields were not produced according to the percentages of the field’s presence, for example, we have a field, 90% of which are located in Iraq and 10% in a neighboring region, and Iraq produces 250 thousand barrels per day, while the partner in which 10% of the field is located in its lands produces 450,000 barrels per day. Pointing out that Iraq's annual loss is estimated at no less than 18 billion dollars due to the failure to reach an agreement with neighboring countries to organize production operations from joint fields. He explained that the amount of oil reserves in these joint fields with Iran, Kuwait and Syria is estimated at 95 billion barrels, indicating that this figure is equal to the consumption of all countries of the world for 3 consecutive years, and this amount is 95 billion barrels equivalent to the UAE reserves of crude oil and the oil reserves of Nigeria and Kazakhstan And Libya is joint, equivalent to 20 times the reserves of Oman's oil.

Views 89   Date Added 08/18/2021

[yota691]

The Minister of Oil reveals a plan to provide an “optimal environment” for international investment companies

08.19.2021 - 13:40

 

 

  

Baghdad - people   

The Iraqi Oil Minister, Ihsan Abdul-Jabbar, confirmed that his ministry has set in its plans to provide an appropriate investment environment for international companies to work in the oil and gas sector in Iraq.  

  

 

  

On the sidelines of his participation in a video meeting with the American Chamber of Commerce in Houston, Abdul-Jabbar said that "the ministry has set in its plans and priorities to provide the appropriate investment environment for international companies wishing to work in Iraq, especially in the gas, clean and renewable energy sectors, infrastructure development and improving the environment."  

Abdul-Jabbar pointed to "the government and the ministry's keenness to develop the oil and gas sector and increase the volume of investments in clean and renewable energy projects in cooperation with specialized international companies."  

"RT"  

[yota691]

Iraqi Oil Minister: We have developed plans that provide a suitable environment for international companies

Iraqi Oil Minister

 August 19, 2021 2:01 PM

Mubasher: Iraqi Oil Minister Ihsan Abdul-Jabbar Ismail confirmed that the ministry has laid out its plans to provide an appropriate investment environment for international companies.

 

Ismail said on the sidelines of his participation in a video meeting with the American Chamber of Commerce in Houston, in a statement by the Ministry of Oil, received by the Iraqi News Agency "INA", today, Wednesday, that "the ministry has put in its plans and priorities to provide the appropriate investment environment for international companies wishing to work in Iraq, especially in the gas sectors." clean and renewable energy, infrastructure development, and environmental improvement.

The Minister of Oil stressed the keenness of the government and the ministry to develop the oil and gas sector and increase the volume of investments in clean and renewable energy projects in cooperation with specialized international companies.

Ismail indicated that "the meeting included representatives of American companies and the ministries of energy, trade, and the US State Department, as well as the Iraqi ambassador in Washington," noting that "the meeting comes within the framework of strengthening bilateral relations between the two countries, and discussing cooperation mechanisms for current and future investment projects in The field of oil, gas and clean and renewable energy.

[yota691]

Minister of Oil: We have developed plans to provide an appropriate investment environment for international companies

Economie| 01:12 - 19/08/2021

 

 

 

 

 

Baghdad - Mawazine News

The Iraqi Oil Minister, Ihsan Abdul-Jabbar, confirmed that his ministry has set in its plans to provide an appropriate investment environment for international companies to work in the oil and gas sector in Iraq.
On the sidelines of his participation in a video meeting with the American Chamber of Commerce in Houston, he said, "The ministry has set in its plans and priorities to provide the appropriate investment environment for international companies wishing to work in Iraq, especially in the gas, clean and renewable energy sectors, infrastructure development and improving the environment."
Abdul-Jabbar pointed out that "the government and the ministry are keen to develop the oil and gas sector and increase the volume of investments in clean and renewable energy projects in cooperation with specialized international companies." Ended 29/A43

[yota691]

Al-Sabah Library .. Oil service contracts for licensing rounds 1 and 2

Wednesday 06 October 2021 70

 

 Baghdad: Shukran Al-Fatlawi  

Maaani Publishing and Distribution published a book on “oil service contracts for the first and second licensing rounds, by the author Abdul-Mahdi Al-Amidi, former Director General of the Department of Oil Contracts and Licensing. 

the service. 

The book contains important information about licensing rounds and can be adopted as a rich reference for researchers in this regard. The first chapter included the subject of the first licensing round as a first step in the ministry’s selection of the fields to be presented in the tour and the collection of technical information related to this, including seismic survey, exploratory wells, Developmental wells, electrical probe surveys for wells, and other information.

While the second chapter included the second licensing round, through which the author outlined the reasons that the ministry called for its launch, including, but not limited to, the development and production of discovered undeveloped oil fields that were discovered several decades ago after conducting seismic surveys and drilling exploratory and assessment wells. 

By the extractive companies of the Ministry 

oil.

The third and fourth chapters included the main features to review and analyze the service contracts with the proposed amendments in an extensive manner, while the author concluded his book with the fifth chapter related to the service contracts for the first and second licensing rounds in implementation, which was concluded by the Ministry of Oil in 2009/2010 under unstable political, security, economic and social conditions which It was preceded by horrific events that the country had not previously witnessed in its modern history, which made investment, whether internal or external, a semi-process impossible. 

[yota691]

A report presents solutions to interest in new wealth instead of 'restricted' oil in Iraq

AM:11:22:15/10/2021

2332 views

 

 

A press report, on Friday, shed light on Iraq's neglect of gas in return for continuing to develop its oil wells, despite the market glut with oil and the restrictions imposed on exported quantities.

A report followed by NRT Arabia (15 October 2021), indicated that "the world is witnessing a shift in the use of energy from heavy energy to clean energy, and from oil to gas, which is less polluting to the environment," stressing that "Iraq is restricted by its share in oil production, according to OPEC, It is better for him to turn towards gas.

Following is the text of the report:

During the past years, Iraq concluded several agreements to explore oil wells and fields with many international companies, the latest of which was its intention to conclude an agreement with the American company "Chevron" aimed at developing 4 exploration blocks for oil and gas production, raising many questions, most notably what is the feasibility of increasing The number of oil fields at a time when Iraq's production is determined by the decisions of the Organization of "OPEC" (OPEC) and can only bypass them by leaving them?

Meanwhile, Iraq does not resort to exploiting associated gas or exploring gas fields in light of an increasing global demand for it. And between oil and gas, which is the most urgent need for the country at the current stage?

Five rounds of licenses

The explorations so far have included 5 licensing rounds, namely: the gray fields, meaning the semi-reclaimed (oil) fields in 2009, the green fields, which are not reclaimed (oil) in 2009, and the gas fields (in 2010), which are the crutches of Ghazi, Mansouriya and Siba, but the work has not been completed. Neither in Mansouriya nor in a crutch due to the emergence of the Islamic State in 2014.

Then the exploratory patches, which are 12 exploratory patches. One patch, number 12, was referred in 2012. And the border fields. This round included the assignment of 6 fields for foreign investment, 4 of which are oil and gas fields in Diyala (east of the country) in 2019, and the referral was approved in 2020.

On the fourth of this month, the Energy Ministerial Council announced its support for dialogue with Chevron to develop 4 exploration blocks in Dhi Qar Governorate (south) for the production of oil and gas.

This came at a time when the Iraqi government had signed a contract with the American company "Honeywell" to process natural gas from the Artawi oil field.

 

Iraq second

In May 2020, Iraq also signed a final agreement worth $1.07 billion with the Chinese Petroleum Engineering and Construction Company to build and operate facilities to process natural gas extracted with crude oil in the giant Halfaya field (in the southern province of Maysan), and many other agreements. Others for the development of oil and gas fields.

According to estimates, the Akkas field in Anbar Governorate (west of the country) contains 5.3 trillion cubic feet of natural gas, so it is one of the largest gas fields in Iraq.

Iraq is - according to global estimates - the second country after Russia in burning associated gas, and the US Energy Information Administration has estimated that Iraq has burned 629 billion cubic feet of natural gas due to insufficient pipelines and infrastructure so far, stressing that this burning amount of gas is sufficient To power 3 million homes.

 

The importance of exploration

Oil exploration helps countries to know their oil reserves, and reserves mean that imports will enter the state budget, and that it will work to implement projects that provide many job opportunities, says oil expert Dr. Bilal Al-Khalifa.

Exploration operations also contribute to the statement of the confirmed size of the reserves, and Iraq has recorded, after the exploration and exploration operations, a significant increase in its proven reserves.

The tour contracts cover about 67 billion barrels, or 58% of the country’s proven reserves at that time, according to the Caliph. That all companies reached their peak production, as Iraq's production reached more than 7 million, and this is not allowed.

And on whether the interest in oil exploration is more important in priority than gas, the Khalifa said that investing in oil fields is not sound and it is better to take care of gas fields and treat associated gas only, calling for exploration and leaving oil fields now and making them a guarantee for the future of the people of the country.

The oil expert indicates that great attention was directed to the oil extraction sector, and gas was not given the required importance, knowing that the gas associated with oil operations in Iraq constitutes more than 70% of the total Iraqi gas.

The gas that is consumed for the production of electric power and in oil operations daily is estimated at 1500 million cubic feet, while that which is burned is estimated at 1300 million cubic feet, as Iraq burns 11.5% of the fuels of this substance in the world, although burning gas means economic losses. And environmental pollution and warming in the atmosphere.

 

Gas or oil?

For his part, economic researcher Abdul Rahman al-Mashhadani believes that the interest in gas discoveries at this stage is more important than oil for Iraq, pointing to an urgent need for gas in global markets.

He added that in the event of gas investment, Iraq could become one of the largest producers and exporters, which could achieve large additional resources.

Al-Mashhadani pointed out that the world is witnessing a shift in the use of energy from heavy energy to clean energy, and from oil to gas, which is less polluting to the environment, pointing out that Iraq is restricted by its share in oil production according to OPEC, and it is more appropriate for it to go towards gas.

Al-Mashhadani blames the purchased corruption in the country and other exceptional circumstances, not to enter the four isolation stations in Iraq since 2014 or 2015 in the production of gas, even though their production of gas is sufficient to operate electric power plants instead of importing them from Iran.

Oil expert Hamza Al-Jawahiri believes that despite the presence of many oil explorations, the search is now being conducted for gas, and that Iraq must strive to achieve gas discoveries in the required manner, but this does not necessarily mean that the need for oil has ceased.

He also says that this is part of future planning for the country's daily production of oil to reach 9 million barrels per day.

At the same time, he acknowledges that it is not necessary that drilling and discovering wells be for oil only, as part of them can be to pump water, which is usually deeper than wells that produce oil or otherwise, with the continuation of development operations in 13 companies for contracts in licensing rounds.

 

According to the island's website.

[yota691]

Political alliance: Iraq lost about three billion dollars as a result of selling the region's oil away from SOMO

Economy |   02:20 - 10/12/2021

 

 

 

 

Baghdad - Mawazine News
, the National Approach Alliance confirmed, today, Friday, that Iraq lost nearly 3 billion dollars as a result of selling Kurdistan region oil away from the Iraqi Oil Marketing Company during the first half of 2021 only.
And the coalition, Mazen Al-Faili, said in a statement received by Mawazine News, a copy of it, that the report of the data of the international auditing company (Deloitte) showed that the region’s export of oil away from the outlet of the Iraqi Oil Marketing Company (SOMO) cost Iraq during the first six months of 2021 losses worth ( 720) million dollars only for the difference in the price sold by the region lower than the selling price of the national company (SOMO), in addition to a loss of more than (2) billion dollars that goes to pay the dues of the foreign oil companies contracting with the region, so the total loss incurred by the Iraqi economy during In the first half of 2021, the result of this operation is more than (2.7) billion dollars.
” The statement added that for more clarification in the points below:
1. During the first half of 2021, the region exported approximately (77) million barrels.
2. The average export price of Iraqi oil during the first half of 2021 amounted to (53.4) dollars per barrel, while the average price of Iraqi oil exports through (SOMO) amounted to (62.8) dollars per barrel during the same period.
3. The total revenues obtained from exporting these quantities during the first half of 2021 amounted to (4.1) billion dollars.
4. After making payments to oil producers and pipeline operators and making payments to buyers, the KRG retained net revenues from crude oil sales of approximately $1.7 billion.
5. How did the Iraqi parliament vote on a formula in the 2021 budget that allowed these huge losses in national revenues lost by all Iraqis, including the citizens of the Kurdistan region
6. Through these data, we stress the need to take a firm national decision to cancel the partnership contracts concluded by the region with foreign companies and replace them with new formulas that benefit the national economy through the federal authority, while recalling another important demand related to canceling licensing rounds in the southern governorates to end the injustice against Iraq and its economy. Ended 29/A 4

[yota691]

Kurdistan Region publishes latest independent report on oil production, exports

 Mustafa Shilani   2021/12/08 19:18

       

The flag of Kurdistan flies over an oil production facility in the autonomous Kurdistan Region. (Photo: Archive)

 

 

ERBIL (Kurdistan 24) – The Kurdistan Regional Government (KRG) publicized an independent audit report it had commissioned that includes detailed statistics of its activity in the autonomous region of Iraq. 

The Regional Council for Oil and Gas Affairs published the new data, which covers the period from January 1st to June 30, 2021, after a regular periodic review of the sector by the international “Big 4” audit and consulting firm, Deloitte.

Beginning in 2019, the KRG began providing information about the prepayment balances it owed to oil traders. Later, in 2020 the disclosures were expanded to include reconciling production, exports, and domestic consumption.

According to the data, the first half of 2021 saw the KRG exporting 77.35 million barrels through the Kurdistan Export Pipeline with an additional 3.95 million barrels that had been allocated to domestic refineries, with 76.869 million barrels of crude exported to buyers through the port in Ceyhan with an average price of $53.446 per barrel.

The KRG generated $4.1 billion in crude oil export sales during the first half of 2021. After making payments to oil producers, pipeline operators, and buyers, the KRG retained net revenue from crude oil sales of $1.737 billion.

The KRG added that transparency "is considered one of the priorities of the Cabinet's agenda, as the Kurdistan Regional Government regularly evaluates additional disclosures that would enhance the transparency of the oil and gas sector in the region."

Starting in 2019, the KRG began providing information about the prepayment balances it owes to oil sellers, and in 2020 the disclosures were expanded to include matching between production, exports, and domestic consumption.

[6ly410]

oil confirms the obligations of companies to the content and terms of the standard purchase document

posted 13 seconds ago

 

 

oil confirms the obligation of companies to the content and terms of the standard purchase document - iraq news (iraqakhbar-com.translate.goog)

add a comment

 

source of the news /al , 1st news agency

 

the ministry of oil confirmed on sunday that companies are obliged to the contents and terms of the standard procurement document.

"the ministry is keen to organize work in the oil sector and find the best formulas and mechanisms for cooperation between national companies and international companies, in order to achieve common goals in accelerating and implementing the ministry's plans to develop oil fields and sustain and increase production ,” said karim hattab, undersecretary of the ministry of oil for extraction affairs.

Hattab added, "This document aims to unify and organize the procurement operations of all international companies within the licensing rounds, according to mechanisms and terms that were prepared and agreed upon in cooperation with foreign and national companies, and through specialized committees and relevant departments."

He noted that "the approval of the Ministerial Committee for Energy and the Opinion Authority in the ministry has been obtained to adopt this document," adding that "one of the global consulting offices will be assigned to evaluate this experience after a year, for the best that we are looking for."

For his part, the head of BP in Iraq, Zaid Al-Yasiri, and the representative of the global licensing tour companies, described, according to the statement, that “signing this document is a positive step to improve work mechanisms, and this document has been prepared between the ministerial committee and international companies contracting within the licensing round contracts, benefiting from the experiences of The past years, which together we aim to find the best means and mechanisms for contracts and procurement operations, in a way that contributes to accelerating the implementation of development plans for the oil fields.”

In turn, the Director General of the Petroleum Contracts and Licensing Department at the National Oil Company, Ali Maarij, praised “the document that regulates procurement operations, and according to which international and national companies are committed, and considered it a proactive plan towards developing cooperation mechanisms with international companies,” praising the role of the relevant committees in preparing for this document.