By John Lee.

Dutch company Royal Boskalis Westminster has signed a ‘memorandum of principles’ to construct an industrial island for the Basra Oil Company (BOC) in Iraq’s territorial waters in the Gulf.

Iraqi oil minister Thamir Ghadhban said the project will add export capacity of 3 million barrels per day (bpd).

The Dutch Ambassador to Baghdad, Eric Strating, said his country’s companies want to develop and strengthen relations with Iraq in all areas, especially in the field of energy.

On behalf of Boskalis, Ko de Blaeij said detailed studies would be completed within one year, with construction taking a further two years. He added that the company has been working In Iraq for more than three decades.

The project includes the construction of an integrated industrial island, a breakwater anchorage, two offshore pipelines and 4 berths, in addition to a residential complex and other service facilities.

(Source: Ministry of Oil)

By John Lee.

Basra Oil Company (BOC) has signed two contracts for new drilling at the giant Majnoon oil field.

China’s Hilong Oil Service & Engineering Company is to drill 80 oil wells at a cost of $54 million, while the Iraqi Drilling Company (IDC) will drill 43 oil wells at a cost of $255 million.

Oil Minister Thamir al-Ghadhban said the contracts are part of BOC’s plan to increase the production at Majnoon to 400,000 barrels per day by 2022.

(Source: Iraqi Ministry of Oil)

By John Lee.

According to a report from Reuters, employees from Exxon Mobil will start returning to work at the West Qurna 1 oilfield on Sunday.

Sources told the news agency that the company had received assurances from the Iraqi Ministry of Oil and the Basra Oil Company (BOC) that its staff would receive extra security.

Earlier in the month, the company evacuated about 30 foreign engineers from Basra as a “temporary precautionary measure”.

(Source: Reuters)

By John Lee.

Hyundai Engineering & Construction has reportedly won a $2.45-billion deal to build a seawater processing facility in Iraq.

South Korean media report that the company signed a letter of intent with Basra Oil Company (BOC) on Wednesday for the 49-month project, which will be capable of supplying 5 million barrels of fresh water per day.

This will help to increase output at Iraq’s oil fields.

(Sources: Yonhap, Korea Herald)

By John Lee.

Oil production is to increase at the West Qurna 1 oilfield, according to Reuters.

The news agency quoted Basra Oil Company (BOC) chief Ihsan Abdul Jabbar as saying on Wednesday that output will rise from 440,000 barrels of crude oil per day (bpd) to 490,000 bpd in the “next few days”.

The field is being developed by ExxonMobil (25%), PetroChina (25%), Itochu (15%), Pertamina (10%), Iraq’s state-owned Oil Exploration Company (25%)

(Source: Reuters)

By John Lee.

Iraq’s Basra Oil Company (BOC) has agreed a deal with the state-owned Iraqi Drilling Company (IDC) to drill 40 new oil wells in the giant Majnoon oilfield.

In a statement on Thursday, the Ministry of Oil said the aim is to increase production at the field to 450,000 barrels per day (bpd) by 2021.

Reuters estimates current production at around 240,000 bpd.

(Sources: Ministry of Oil, Reuters)

By John Lee.

US-based Schlumberger has won a deal with Iraq’s Basra Oil Company (BOC) to drill 40 new wells at Majnoon oilfield.

In a statement on Wednesday, the Ministry of Oil also announced that the BOC had entered into a 19-month contract with the Iraqi Oil Exploration Company to carry out 2D and 3D seismic surveys at the field.

(Source: Ministry of Oil)

UK-based Amarinth has secured its first order from Iraq Gates Contracting Company (IGCC) for $410K of API 610 OH1 pumps on 22-weeks FCA delivery for the Rumaila oil field, Iraq.

This first order for Amarinth from Iraq Gates Contracting Company (IGCC) of $410K is for ten API 610 OH1 condensate transfer pumps with Plan 11 and Plan 52 double seals and seal support systems.

The pumps are destined for the Rumaila oil field, a super-giant oil field located 50km to the west of the city of Basra, southern Iraq. The Rumaila field is estimated to contain 17 billion barrels, the largest oil field ever discovered in Iraq and considered the third largest oil field in the world. It is managed by the Rumaila Operating Organization (ROO), a joint venture between BOC, BP, PetroChina and SOMO.

IGCC approached Amarinth for the ten identical API 610 OH1 pumps as they were required on an extremely short lead time of 22-weeks Free Carriage Aboard (FCA) from the sea-port in the UK.

This is the sort of challenge that Amarinth has successfully delivered against many times in the past for Middle East oil and gas companies and will leave Amarinth just 20 weeks for the design, manufacture and testing of the pumps and seal support systems, including full documentation and NACE certification for all process wetted parts.

Oliver Brigginshaw, Managing Director of Amarinth, commented:

This latest order from Iraq underlines our on-going commitment and investment in the region and we are delighted that IGCC approached us to supply these pumps recognising that we were the only manufacturer that could deliver bespoke API 610 pumps in the lead time they required.

“In fact, we are seeing that many of the new projects in the Middle East need API 610 pumps on very short lead times as operators start to increase production again, which Amarinth are in a very good position to fulfil.

(Source: Amarinth)

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has transferred ownership of nine state-owned oil companies from the Ministry of Oil to the newly-created Iraqi National Oil Company (INOC).

The Minister is also the President of INOC.

The companies transferred to INOC ownership are:

  • Iraqi Oil Exploration Company
  • Iraqi Drilling Company (IDC)
  • State Oil Marketing Organization (SOMO)
  • North Oil Company (NOC)
  • Midland (Middle) Oil Company
  • Basra Oil Company (BOC)
  • Dhi Qar Oil Company (DQOC)
  • Missan Oil Company (MCO)
  • Iraqi Oil Tankers Company (IOTC)

IBN Expert Blogger Ahmed Mousa Jiyad has described the new company as “dysfunctional, unconstitutional and disintegrative“.

(Source: Ministry of Oil)

By John Lee.

The Basra Oil Company (BOC) reportedly plans to increase production  from 3.2 to 5 million barrels per day over the next seven years.

According to Platts, BOC directror Ihsan Ismaael told the CWC Basra conference in Istanbul that the increased production would be sustained for at least 20 years after that.

Among the projects being considered are three new subsea pipelines replacing the old pipelines leading to the Khor al-Amaya Oil Terminal (KAAOT) and the al-Basra Oil Terminal (ABOT), adding up to 3 million bpd of new export capacity.

ABOT is currently operating at just under half its capacity of 3.5 million bpd due to the risk of pipeline rupture, while the 350k-bpd KAAOT (pictured) has been offline because of oil leaks when the pipeline is pressurised high enough for loading to be economical.

New pipelines and storage pumping at the Fao terminal would also allow the four installed single point mooring buoys (SPMs) to reach their capacity of 900,000 bpd each — up from about half that now — and potentially add a fifth SPM.

More here from Platts.

(Source: Platts)