By John Lee.

Iraq’s oil ministry has denied a report from Bloomberg that it plans to shut down the al-Ahdab oil field in Wasit due to protests.

In a statement the Ministry said the protests near the field are not related to the oil industry, but to the administration of the province.

(Source: Ministry of Oil)

By John Lee.

Iraq’s oil ministry has denied a report from Bloomberg that it plans to shut down the al-Ahdab oil field in Wasit due to protests.

In a statement the Ministry said the protests near the field are not related to the oil industry, but to the administration of the province.

(Source: Ministry of Oil)

By John Lee.

The Iraqi Ministry of Oil has reportedly announced that it will select a number of international investment companies to build five new refineries around the country:

  1. Kirkuk with a capacity of 70,000 barrels per day (bpd);
  2. Wasit capacity of 140,000 bpd;
  3. Nasiriyah capacity of 140,000 bpd;
  4. Basra card 140,000 bpd; and
  5. al-Faw capacity of 300,000 bpd.

According to Asharq Al-Awsat, the Ministry is financing Karbala refinery which is about 78 percent completed, and once it is fully constructed, it will provide about 9 million liters per day of high-quality gasoline, in addition to various oil derivatives in accordance with international standards.

(Source: Asharq Al-Awsat)

(Pictured: Baiji Oil Refinery)

By John Lee.

Iraq’s Ministry of Oil has invited international companies to bid for three new oil refineries, to be build on BOOT or BOO bases:

  1. Kut, in Wasit governorate, with a capacity of 100,000 bpd;
  2. Hadeetha, in Anbar governorate, with a capacity of 70,000 bpd;
  3. Diwaniya governorate, with a capacity of 70,000 bpd.

(Source: Ministry of Oil)

By John Lee.

Shares in Irish-based Petrel Resources were trading 20 percent down on Friday after the company said it had reached a settlement in respect of the disposal of 2.2 million Petrel shares by Amira Petroleum‘s advisers notwithstanding a lock-in agreement entered into on 19 August 2013.

According to the company:

 On 14 August 2013, the Company announced that it had agreed to acquire from Amira Petroleum N.V. (“Amira Petroleum”) a 20 per cent shareholding in Amira Hydrocarbons Wasit B.V. (“Amira”), the holder of a 25 per cent carried interest in certain oil and gas exploration and production licences in the Wasit Province of Iraq.

The consideration for the acquisition included the issue of 18,947,368 shares in Petrel (representing 19.82 per cent of the enlarged issued share capital of Petrel (“the Initial Consideration Shares”). The Initial Consideration Shares were agreed to be locked-in until the date of spudding the first conventional oil well in respect of Amira’s interest in the Wasit province (the “Spudding Date”) but that, if the Spudding Date had not occurred by 19 August 2018, Petrel could, amongst other things, elect to re-acquire the Initial Consideration Shares for a nominal amount.

As part of the agreement with Amira Petroleum, 2.8 million of the Initial Consideration Shares were, at the direction of Amira Petroleum, issued to its advisers in satisfaction of fees payable by Amira Petroleum (“the Adviser Shares”) and were subject to a lock in agreement as detailed above.

As of the date of this announcement, the Spudding Date has not occurred.

During December 2017, Petrel learnt that 2.2 million of the Adviser Shares had been sold between March and July 2017, notwithstanding the lock-in agreement.

The parties have reached a settlement and agreed that the vendors of the 2.2 million Adviser Shares shall make a payment of £100,000 to the Company (representing approximately 4.5p per Adviser Share sold).  The remaining Adviser Shares shall remain subject to the lock-in agreed in 2013.

This announcement contains inside information for the purposes of Article 7 of EU Market Abuse Regulation 596/2014.

(Sources: Petrel Resources, Google Finance)

By John Lee.

Russia’s Gazprom Neft has reportedly started production of liquid petroleum gas (LPG) at its Badra field in Wasit Province.

According to Energy Business Review, the company has started trial shipments of LPG to Iraq’s state-owned gas filling company, and to the Az-Zubaydiyah power station.

The facility is expected to be operation in the fourth quarter of this year.

(Source: Energy Business Review)

By Salam Zidane for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

In a meeting held Feb. 21, Najaf’s provincial council followed in the footsteps of Dhi Qar, Muthanna, Wasit and Diwaniyah and voted against the privatization of the electricity sector in the province.

Meanwhile, the Iraqi government insists on privatizing the distribution of electricity in all Iraqi regions, despite popular protests against this decision, which many believe harms the poor, who make up 30% of the country’s population.

On July 20, 2012, parliament voted on the privatization of electricity after the government failed to improve the situation despite spending $22 billion over the course of nine years attempting to fix the crisis. Iraq needs 30,000 megawatts, but citizens are only provided with 8,000 megawatts.

On Jan. 25, 2016, the Ministry of Electricity applied the privatization project in Zayouna in eastern Baghdad, in partnership with the local company al-Noor al-Thaqib. This year, it concluded agreements with local as well as foreign companies to implement the project nationwide.

Musab al-Moudarres, the spokesman for the Ministry of Electricity, told Al-Monitor, “As a result of residential slums scattered around the country, in which people steal electricity from each other, 65% of the produced energy was wasted. The majority of citizens refuse to pay electricity bills, which are now worth $2.7 million, enough to cover the salaries of the ministries’ employees for two years.”

He stressed, “The ministry has come to the conclusion that the electricity crisis will not be resolved if the situation remains the same, so it suggested the idea of privatizing the distribution of electricity, which aims to rationalize consumption and collect fees while ensuring around-the-clock electricity.” He added, “The project was a success in some areas in Baghdad and it contributed to rationalizing consumption by 30% and putting an end to waste by 100%.”

By John Lee.

The senior deputy minister for oil has said that production at the Badra oilfield in Wasit province will reach 65,000 bpd by the end of this year.

Fayadh H. Niema made the announcement during his inspection visit to two oil and gas treatment units at the field.

Assim Jihad, spokesman for the ministry, said that the consortium of the oil companies headed by Gazprom has achieved a significant progress with the completion of the two units and the extension of the gas pipeline to the Zubaidiya power station.

(Source: Ministry of Oil)

By John Lee.

The senior deputy minister for oil has said that production at the Badra oilfield in Wasit province will reach 65,000 bpd by the end of this year.

Fayadh H. Niema made the announcement during his inspection visit to two oil and gas treatment units at the field.

Assim Jihad, spokesman for the ministry, said that the consortium of the oil companies headed by Gazprom has achieved a significant progress with the completion of the two units and the extension of the gas pipeline to the Zubaidiya power station.

(Source: Ministry of Oil)

By John Lee.

The senior deputy minister for oil has said that production at the Badra oilfield in Wasit province will reach 65,000 bpd by the end of this year.

Fayadh H. Niema made the announcement during his inspection visit to two oil and gas treatment units at the field.

Assim Jihad, spokesman for the ministry, said that the consortium of the oil companies headed by Gazprom has achieved a significant progress with the completion of the two units and the extension of the gas pipeline to the Zubaidiya power station.

(Source: Ministry of Oil)