US-based oil services company Halliburton has today announced it has signed two contracts with Eni Iraq BV to provide integrated drilling services at Eni’s Zubair oilfield in Southern Iraq.

Under the contracts, Halliburton will mobilize four to six rigs to drill development wells over the next two years.

Mahmoud El-Kady, vice president of the Iraq Area for Halliburton, said:

“We are pleased to be awarded this work and the opportunity to collaborate with Eni to engineer solutions for the development of Zubair.

“We have provided a wide array of drilling services to Eni since 2011 and signing these contracts are a testimony to our continuous commitment to safety and superior service quality.

(Source: Halliburton)

The oil minister of Iraq, Jabbar Ali Hussein Luaibi, and the Chief Executive Officer of Eni, Claudio Descalzi (pictured) met in Baghdad on Saturday.

During the meeting Eni’s CEO had the opportunity to outline the Company’s current activities in the country in light of the recent achievements of the Zubair field development, where the production has grown by over 100% since 2015.

The project, carried out by Eni with Basra Oil Company (BOC), has marked the fast track development of one of the largest producing oil fields in the Southern Iraq region of Basra.

Furthermore Claudio Descalzi updated the Minister Luaibi on a new 380 MW power plant which is in the final stages of construction. The plant will generate power for Zubair field and for domestic consumption in Basra Governorate.

Claudio Descalzi and Minister Jabbar discussed additional increase of Zubair production, future opportunities and development investments that would further strengthen Eni’s relationship with the country. Eni’s CEO has in fact confirmed Eni commitment in Upstream sector in Iraq and its support to the country through several initiatives.

Eni’s CEO and the Minister of Oil discussed among other things on the progress of social projects that are currently underway in the Basra Governorate in the areas of healthcare, education, through the construction among other things of one secondary school in Basra for 900 students and refurbishment of existing ones targeting total of 77 schools within the next 4 years, access to energy, through the expansion of the power plant, clean drinking water, through the overhaul of drinking water treatment plants, and new initiatives in agriculture sector which will allow creation of jobs and the development of local economy.

Finally, Eni’s CEO highlighted potential synergies related to energy projects in Iraq, a strategic lever for the Country in maximizing its use of national natural resources through project integration within the entire energy chain and double country oil production within limited time.

Eni has been present in Iraq since 2009, where it operates through its subsidiary Eni Iraq B.V., and with the ramp up of the Zubair Field Development Project (Eni 41.56%, Kogas 23.75%, BOC 29.69%, Missan 5%) the Company has become one of Iraq’s main operators in the oil sector. Eni currently operates 475,000 barrels of oil equivalent per day in Iraq.

(Source: ENI)

By John Lee.

Italy’s Saipem has been awarded a contract by ExxonMobil Iraq Limited for the DS6 project for the debottlenecking of the West Qurna field, in the south east of Iraq.

Debottlenecking is a process that optimises a plant in order to increase its overall capacity.

The works will have a duration of 23 months and will mainly be executed in the Rumaila fabrication yard, owned by Saipem.

(Source: Saipem)

(Picture: Saipem chief executive, Stefano Cao)

By John Lee.

Reuters reports that Bain Capital Credit has been chosen for a 900-million-euro ($1.06 billion) deal to rescue the heavily-indebted Italian engineering firm Trevi.

Among Trevi’s current projects is the stabilisation of Iraq’s Mosul Dam.

More here from Reuters.

(Source: Reuters)

The National Iranian Drilling Company (NIDC) is planning to participate in neighboring Iraq‘s drilling tenders.

Speaking to reported on the sidelines of an oil show in Kish Island, on Tuesday, Sepehr Sepehri, NIDC managing director, said the company’s approach is to secure itself a toehold in global markets, adding NIDC is planning to participate in international drilling tenders in Iraq.

“We have plans to join drilling projects in neighboring countries and we have started correspondences with Iraq in this regard,” the official said.

Sepehri said the two country’s access to Arvand Free Zone, favorable crude oil production capacity in Iraq’s Basra and the good terms the two neighbors are on are among the advantages of working in Iraq.

He further said that NIDC will take part in three drilling tenders that Italy’s ENI is planning to hold in Iraq.

The NIDC official added that Oman is another market the company is seeing to gain a foothold in.

“We have indicated readiness to offer services to Oman, too, and will consider the matter in more depth during a visit by an Omani delegation to Iran within the next few weeks.”

Besides drilling operations, NIDC enjoys massive potentialities in offering drilling services, the CEO added.

“After Iraq and Oman, we are targeting operations in Qatar,” Sepehri added.

(Source: Shana)

By John Lee.

Reuters has reported that both BP and Eni have expressed an interest in developing the giant Majnoon oilfield, which Shell plans to exit next year.

Iraqi oil officials told the news agency that Iraq’s Ministry of Oil has not yet started negotiations with either company.

BP is currently developing the Rumaila field, while Eni operates Zubair.

Shell is expected to hand over Majnoon operations to the state-owned Basra Oil Company by the end of June 2018.

Both Chevron and Total have been previously reported as being interested in taking over the field.

(Source: Reuters)

Baker Hughes, a GE company, has signed an agreement for the provision of turbine generators to PetroChina International Iraq, in the biggest Turbomachinery & Process Solutions (TPS) agreement ever between the two companies. 

BHGE will deliver its Frame 6B gas turbine electric generator trains to support power generation for the Halfaya oilfield located in the Maysan Governorate. The equipment will generate 150 MW of power for the project and leverage support from BHGE’s existing local and global workforce. The components of the turbo generator units will be manufactured and assembled at BHGE’s Nuovo Pignone facility in Florence, Italy.

Rami Qasem, President & CEO of MENAT & India, BHGE, said:

This deal strengthens our local footprint in Iraq and further demonstrates our dedication to the region where we see great promise and have formed strong partnerships through ongoing projects and the development of local skills.

“The provision of our field-proven turbomachinery solutions enables international operators around the globe to safely and stably operate, all while reaching their oil production targets and staying on schedule. This is especially true for this particular contract, as our turbines will provide reliable and efficient energy to the Halfaya field and further support the sustainability of Iraq’s ongoing oil and gas operations.

BHGE’s Frame 6 turbines are able to operate in extreme conditions and harsh environments across a wide range of applications, and have been proven and tested with more than 55 million operating hours.

The turbines are designed to be fully fuel flexible, possessing the ability to run on a wide range of gas or distillate liquids, including sour gas. This offers valuable cost saving to customers, as the turbines can run on the most economically available fuel for a given operation.  In addition to the Halfaya contract, the turbines have been used in multiple projects in the region.

The Halfaya oilfield was discovered in 1976 with 4.1 billion barrels in reserves and is situated in the southern part of Iraq in the country’s Maysan Governate. The field, operated by PetroChina International Iraq, currently produces approx. 200,000 barrels per day.

This agreement with PetroChina International Iraq further strengthens BHGE’s presence in the country, where it has contributed to several projects, including power generation support for two of Iraq’s largest fields – West Qurna and Rumaila – and retains a local footprint consisting of over 70% Iraqi employees.

BHGE also owns and operates a technical services facility in North Rumaila, which opened in 2013 and was expanded this summer. The facility offers a wide range of testing, repair and refurbishment services and has helped to create local employment opportunities and training for more than 2,000 Iraqi professionals.

(Source: BHGE)

Weir Oil & Gas Dubai has reportedly been awarded a contract with Eni Iraq BV to provide global maintenance services for gas compressor units and associated equipment located in the three Initial Production Facilities (IPF) plants in the Zubair oil fields in Southern Iraq.

The gas compressor units are comprised of gas engines, gas compressors, and relevant associated equipment. There are 30 compressors in total, with 18 at Hammar, six at Zubair and six at Rafidya. Weir engineers are now responsible for maintenance servicing of all compressors at each of the sites.

Ronan Le Gloahec (pictured), EMEA Regional Managing Director of Weir Oil & Gas, said:

Weir was selected for this contract due to our experience in Iraq, local footprint and know-how of the specific rotating machines and Field Maintenance methodologies.

“In addition to our state-of-the-art manufacturing facilities in Dubai and service centre in Abu Dhabi, we have a dedicated service centre in Basra, the first facility in Iraq has both API and ISO licenses.”

(Source: Oilfield Technology)

The Government of Italy has contributed an additional US$2.7 million (€2.4 million) to UNDP’s Funding Facility for Stabilization (FFS), which finances fast-track initiatives in areas liberated from the Islamic State of Iraq and the Levant (ISIL). This brings Italy’s total contribution to FFS to almost US$10.6 million (€9.4 million) to date.

Based on priorities identified by the Government of Iraq and local authorities, FFS helps quickly repair public infrastructure, provides grants to small businesses, boosts the capacity of local government, promotes civil engagement, and provides short-term employment through public works schemes.

UNDP Resident Representative for Iraq, Ms. Lise Grande, said:

“Stabilizing newly liberated areas is one of the highest priorities in Iraq. Already, more than 2.2 million people have returned to their homes. This is good news, but a lot more needs to be done, particularly in western Mosul and the Ninewah Plains. Italy’s contribution will help us to accelerate our work in these areas. We are very grateful for this support.”

Italy’s Ambassador to Iraq, Mr. Marco Carnelos, said:

“As the fight against Da’esh is coming at its end, it is critical to sustain Iraqi efforts for the rehabilitation of the areas that have been liberated, in order to allow IDPs to return to their homes and to enhance their resilience. Italy is a staunch supporter of humanitarian activities undertaken both bilaterally and through UNDP’s Funding Facility for Stabilization. This third contribution is a further testimony of Italy’s commitment in supporting this crucial stabilization work to help the Iraqi people.”

Established in June 2015, FFS is working in newly liberated areas in Anbar, Salah al-Din, Ninewah, Diyala and Kirkuk Governorates. Nearly 1,200 projects are completed or being implemented across 23 locations. Since the start of the crisis, over 2.2 million people have returned to their homes.

(Source: UNDP in Iraq)

In an important step toward financing its first post-war agricultural investment project in Iraq, the UN’s International Fund for Agricultural Development (IFAD) met with a high-level Iraqi delegation in Rome last week.

The project will target 20,000 rural households in the poorest southern governorates of Missan, Thi Qar, Qadissiyah and Muthana.

The delegation was welcomed by Khalida Bouzar (pictured), IFAD’s Director for the Near East, North Africa and Europe, along with her team from the regional Division.

Bouzar said:

The rationale for the current project stems from the fragility of Iraq and IFAD’s commitment to assist countries with fragile situations. IFAD has significant experience in areas in which the Government of Iraq needs assistance, such as agriculture and rural development.

“Investment in agricultural growth is not only important to growth in national income, but is also vital to growth in employment, food and nutrition security and reduction of poverty in Iraq.

“This will be an example of the stronger and more efficient collaboration that characterizes the renewed partnership between IFAD and Iraq’s government.

Iraqi Ambassador Ahmed A.H. Bamarni thanked IFAD for its promptness in creating the project, and said that he believed the project would directly support the Iraqi government’s reconstruction efforts following years of conflict.

Implemented by the Iraqi ministries of agriculture, water resources and environment, the new project will enhance resilience to climate change as well as improve the productivity and profitability of small-scale crop and livestock producers by providing access to finance, technologies and remunerative markets.

The meeting between IFAD and Iraqi officials follows an initial high-level meeting held in Jordan in October 2016 where participants developed the first strategic roadmap for investment in smallholder agriculture and rural development in Iraq.

It set the stage for identifying the priorities for IFAD’s engagement in Iraq, including the main strategic objectives, as well as the framework for the first ever IFAD investment in the country.

(Source: IFAD)