The Iraqi Cabinet held its regular weekly meeting in Baghdad on Tuesday under the chairmanship of Prime Minister Adil Abd Al-Mahdi.
The Prime Minister told the Cabinet that the current government will continue to discharge its duties until the formation of the next Iraqi government.
The Prime Minister then outlined some of the key achievements of this government which will be detailed in a comprehensive report to be published soon.
The Cabinet discussed several policies and approved administrative measures to support projects in the health sector, including building general hospitals in Iraqi provinces with a capacity of 400 beds each.
The Cabinet approved recommendations submitted by the Ministerial Council for Energy to allow Dhi Qar Oil Company (DQOC) to borrow 265,000,000 US dollars from the Trade Bank of Iraq (TBI) for the purpose of implementing a project to expand the production at Al-Nasiriyah oil field by an additional 100,000 barrels per day.
Russia’s Lukoilhas successfully completed testing of the fourth well as part of Eridu field (Block 10) appraisal phase in the south of Iraq.
The testing resulted in the commercial flow of dry crude oil that proves the current geological model of Eridu field as effective.
Lukoil continues geological exploration at Block 10. For instance, the company plans to drill and test several appraisal wells and to complete 3D and 2D seismic surveys for Eridu field and the block’s southern and central parts, respectively.
Block 10, covering 5.8 thousand square kilometers, is located 150 kilometers west of Basra, 120 kilometers away from West Qurna-2 field.
Interests in the project: Lukoil – 60% (operator), Inpex Corporation (Japan) – 40%. The Iraqi party to the agreement is represented by the state-owned Dhi Qar Oil Company (DQOC).
The US oil company Chevron has signed an agreement with Iraq’s Basra Oil Company (BOC) and Dhi Qar Oil Company (DQOC) to provide expertise and services, including seismic surveys, to the Iraqi companies.
Assim Jihad, Spokesman for the Ministry of Oil, said the Ministry aims to sign more memorandums of understanding with international companies to exchange experience and develop local capabilities in the oil and gas sector.
France’s Total is said to be interested in bidding to build the greenfield 150,000-bpd Nassirya oil refinery.
The Director General of the Dhi Qar Oil Company (DQOC), Ali Warid Hammood, told Reuters at the CWC Iraq Petroleum Conference in Berlin that bids are still open for the project, and that international oil companies interested in the project would be bidding as refiners only.
The project was initially offered as part of the Nassiriya Integrated Project (NIP), tying it to oilfield development. In January 2018, Iraq dropped the NIP, saying it will rely on a newly formed state oil company to develop the Nassiriya oil field, and leaving only the nearby refinery project for investors.
Hammood confirmed to Reuters that DQOC will develop the field by itself.
It is currently producing 80,000-100,000 barrels of oil per day, with plans to double capacity within three years.
Iraqi Oil Minister Jabar Ali al-Luaibi [Allibi] has officially launched the new Dhi Qar Oil Company (DQOC) [Thi-Qar Oil Company].
At a ceremony in Nasiriya, the Minister said he is working to develop the Nasiriya oil field and the other exploratory blocks and fields in the region, and called on international companies to invest in the new Nasiriya refinery project.
The DQOC was spun off from the South Oil Company (SOC) last year, and has responsibility for Garraf and Nasiriyah oil fields; following the transfer of assets to the DQOC, the SOC has become the Basra Oil Company (BOC).
Iraq’s new Dhi Qar Oil Company (DQOC) is getting US$42 million in start-up capital following approval from the Iraqi Finance Ministry of Finance, according to a report from OilPrice.
The company was spun off from the South Oil Company (SOC) in January, taking over four of its fields in Dhi Qar governorate; the SOC has been renamed the Basra Oil Company (BOC).
The Garraf and Nasiriyah oil fields currently produce about 170,000 barrels per day, but Dhi Qar says it plans to ramp up production to 200,000 bpd by the end of this year.
Two other fields not yet in production are the Saba field and the al-Amoud field. Saba is expected to come online later this year with an initial 30,000 bpd, while al-Amoud is being developed and there are no indications as of yet when this field will be brought into production.