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With the recovery of Libyan production and Iraq’s southern exports creating records, the output of OPEC oil has hit a high of this fiscal year, the analysis of Reuters revealed. The production hiked in the month of August and 32.79 million barrels per day were pumped, which is 220,000 bpd more than the July numbers. The progress got restricted due to the US sanction resulting in halt on Iranian shipments.
Natural gas giant, Dana Gas has posted a $24 million in profits for the first half of 2018. Displaying improved underlying business performance, Dana Gas reported a 200% jump in the second-quarter profits to $36 million. The off sukuk restructuring costs sunk the profits by $2 million for the company. Dana took big steps this year in bringing transformational expansion in KRI (Kurdistan Region of Iraq).
The UK-based oilfield services company, Petrofac has bagged £290 million contract by Basra Oil Company. Under the 34-month contract, Petrofac will provide facilities for the expansion of the central processing facility in the Majnoon Field, Southern Iraq. Additionally, two oil processing trains with a capacity of 200,000 barrels of oil per day are also included in the engineering, procurement and construction contract.
Leading oilfield service provider, BHGE received a flare gas recovery contract for the Nassiriya and Al Gharraf oilfields in Iraq. The contract was awarded by the South Gas Company of Iraq (SGC). The GE Company will deploy advanced modular gas processing (NGL) technology to provide solutions for recovering flare gas at Nassiriya and Al Gharraf oilfields. The project is estimated to be delivered by 2021.
A Bloomberg survey has revealed an increment in the crude output of OPEC owing to Saudi Arabia’s near-record production. Oil production of Saudi grew by 230,000 bpd to 10.65 MMbpd in July. The kingdom was joined by Nigeria and Iraq in offsetting losses from Venezuela, Iran, and Libya. The cartel all-in-all produced 32.6 MMbpd. Saudi held up to its promise of preventing crude prices from sabotaging the global economy.
Russia and Saudi Arabia are pushing for a big rise, while Iran, Iraq, and Venezuela are insisting to keep the production quota same as before. Members of OPEC are looking for a way out of this situation and according to sources, are into discussions about delivering 300,000 to 600,000 bpd of additional oil supply to global markets over the next few months.
OPEC’s second biggest producer, Iraq is pressurizing OPEC to strengthen its opposition to plans by Saudi Arabia. Its defiance follows similar resistance from Iran and Venezuela, which implies that three of the five countries that founded OPEC now oppose the Saudi plan. OPEC will meet with its partners on June 22-23 in Vienna. Nevertheless, it’s unclear whether Iraq, Iran, and Venezuela could do much to block the Saudi-Russian plans.
Iran and Iraq have started oil swapping under the swap deal inked between the two countries. The deal was signed in 2017, under which Iraq is about to truck 60,000 bpd of crude oil to Iran, covering all transport costs, via Kirkuk strategic route. Iran, from its end, will deliver to Iraq’s clients through its Kharg terminal in the Persian Gulf, in equal volumes with the same quality.
The Oil Ministry of Iraq yesterday stated that it will sign contracts for oil and gas exploration and development of six blocks. The ministry had held an auction in May, for 11 blocks on offer, near the borders with Iran and Kuwait and in offshore Gulf waters. Five blocks failed to bring investors on board. The contracts have been awarded to UAE-based Crescent Petroleum, China’s Geo-Jade and United Energy Group.
In a new deal signed between Lukoil and the Basra Oil Company for West Qurna-2 field shall provide for an oil production plateau of 800,000 bpd. The plan observes that the oil production of 480,000 bpd will be reached in 2020 and 800,000 bpd is expected in 2025.
The second largest producer of OPEC, Iraq, is reinvigorating efforts to maximise its oil exporting capacity. Iraq is weighing up the possibilities of injecting seawater into crude deposits and laying down the infrastructure for export facilities on an artificial island in the Persian Gulf. Iraq is trying to secure its business by expanding export volume more than the output strength to sustain exigencies of time and nature.
Iraq’s aspirations of production expansion suffer as the global energy companies reduce their investments in the nation’s low-return environment. The leading oil firms that have previously invested an ample amount in Iraq are complaining about the technical service contracts offered by Baghdad, which happen to be too stringent and give a meagre return on investments.