By John Lee.

A former head of Iraq’s state-run Missan Oil Company (MOC) has reportedly been appointed to run the Ministry of Oil’s Petroleum Contracts and Licensing Directorate (PCLD).

According to Reuters, Ali Maarij, who ran the MOC until becoming a member of parliament in 2014, will take over from Abul Mahdi al-Ameedi, who reached retirement age late last year.

The PCLD oversees oil contracts and negotiates energy deals with international companies.

(Source: Reuters)

By John Lee.

Oil services firm TechnipFMC (TFMC) has agreed to pay $296 million to resolve allegations that the company paid bribes in Brazil and Iraq.

TFMC is the product of a 2017 merger between two predecessor companies, Technip S.A. and FMC Technologies, Inc..

The admissions and court documents establish that beginning by at least 2008 and continuing until at least 2013, FMC conspired to violate the US’s Foreign Corrupt Practices Act (FCPA) by paying bribes to at least seven government officials in Iraq, including officials at the Ministry of Oil, the South Oil Company (SOC) and the Missan Oil Company (MOC), through a Monaco-based intermediary company in order to win secure improper business advantages and to influence those foreign officials to obtain and retain business for FMC Technologies in Iraq.

(Source: US Justice Dept)

By John Lee.

Production at Halfaya oilfield has reportedly increased by 100,000 barrels per day (bpd) to a total of 370,000 bpd.

Adnan Noshi, head of Maysan Oil Company, told Reuters that output rose after the completion of a new oil processing facility.

A further increase to 470,000 bpd is expected next quarter.

(Source: Reuters)

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.

Oil giant Shell is trying to sell its stake in the Majnoon oilfield (pictured) in southern Iraq, following a failure to reach agreement with Iraq’s Ministry of Oil.

A Shell spokesman told UAE-based newspaper The National:

“Following extensive discussions with the Ministry of Oil, the oil minister of Iraq formally endorsed a recent Shell proposal to pursue an amicable and mutually acceptable release of the Shell interest in Majnoon, with the timeline to be agreed in due course.”

Reuters quotes an oil official as confirming that the Ministry failed to reach an agreement with Shell over its Majnoon operations, including production plans and investments budgets. “We think it’s for the interest of all parties that Shell should withdraw,” he added.

A Shell spokesman told Reuters:

“In May 2017, the ministry of oil in Iraq applied the performance penalty and remuneration factor on the Shell operated venture, the Majnoon oil field, which had a significant impact on its commerciality.”

The company holds a 45-percent share in the project, with Malaysia’s Petronas holding 30 percent, and the Iraqi state-owned Maysan Oil Company having 25 percent.

Output from the field, which commenced production in 2014, is currently estimated at around 235,000 barrels per day (bpd), with a 400,000 bpd target by 2020.

Shell is also seeking to selling its stake in the ExxonMobil-operated West Qurna 1 oil field.

In addition to its oil interests in Iraq, Shell is a key player in the Basra Gas Company (BGC), a joint venture between the Iraq’s South Gas Company (SGC) (51%), Shell (44%) and Japan’s Mitsubishi (5%), which processes gas from the Rumaila, West Qurna and Zubair fields, which would otherwise be flared.

The National also quotes a Shell spokesman as saying that the company remains committed to this, and to its petrochemical project in Iraq:

“By leaving Majnoon, Shell will be in a stronger position to focus its efforts on the development and growth of the Basrah Gas Company and the Nebras Petrochemicals Project.

(Sources: Reuters, The National)

By John Lee.

The Ministry of Oil announced on Sunday that it has started drilling the first well in the Huwaiza [Huweiza] oil field near the Iranian border, in Maysan [Missan] governorate.

The field is being developed by Missan Oil Company (MOC), with drilling being carried out by the Iraqi Drilling Company (IDC).

Geological studies and preliminary forecasts indicate reserves of more than one billion barrels of oil at the field.

(Source: Reuters)

By John Lee.

The Head of the Missan Oil Company (MOC) has said that the third and final phase of work to expand the Halfaya oil field has been launched.

Adnan Noshi told Reuters that the target is to double Halfaya’s capacity to 400,000 barrels per day in 2018.

He said Halfaya, operated by PetroChina, is Maysan Oil’s largest field, currently producing 200,000 of the MOC’s total output of 380,000 bpd.

(Source: Reuters)

By John Lee.

The Maysan Oil Company (MOC) wants to develop the Howaiza oil field, an associated field located on the Iranian border and extending to 63 kilometers to the east of Maysan governorate.

Mr. Adnan N. Sajit, the director general of the MOC, said the first well was drilled at the Howaiza field at the end of the 1970s, but the development was halted because of the Iran-Iraq war.

He added that reservoir studies show an oil storage estimated with 854 million barrels, and oil reserves estimated at 219 million barrels, which qualifies the field to produce 20-to-30 thousand barrels/day (bpd) after the completion of the development.

He said also that the development plan will start in 2017 “by depending on the national efforts“.

(Source: Ministry of Oil)

By John Lee.

The Missan Oil Company (MOC) has announced for the completion of four new wells at the Halfaya field in Maysan province.

Adnan N. Sajit, the director general of the MOC, said that the Chinese companies Bohai and Daiken had completed the drilling at the field, which is being developed by Petrochina (CNPC).

He added that 165 wells had been drilled at Halfaya since the start of development operations in 2010.

The field is now producing about 200,000 bpd of crude oil, in addition to gas.

(Source: Ministry of Oil)

By John Lee.

Iraq’s Ministry of Oil has announced the completion of five new oil wells at the Halfaya oil field.

Mr. Adnan N. Sajit, the director general of the Maysan Oil Company (MOC), said the drilling was done by two Chinese companies contracted by Petrochina, the main operator of the field.

Production at Halfaya is now more than 200,000 barrels per day (bpd), and is expected to exceed 400,000 bpd with the completion of the third stage of development.

(Source: Ministry of Oil)