Author Archives: Zaarour Mayda

Oil Prices Increase

Crude oil prices have touched $105 per barrel at the end of last week despite the crisis in Iraq and the advance of the Islamic state of Iraq and the Levant

Crude oil prices have touched $105 per barrel at the end of last week despite the crisis in Iraq and the advance of the Islamic state of Iraq and the Levant

Crude oil prices have touched $105 per barrel at the end of last week. This price increase occurred after a period of unusually low oil prices in the world market. During the last 2 months, oil prices had declined by over $10 due to excess supply and increased production.

The ongoing crisis in Iraq and the advance of the Islamic state of Iraq and the Levant have caused the oil prices to surge. While specialists argue that Iraq’s northern oil fields cannot be considered as a reliable source of production, they do agree that as long as southern fields continue to be intact and quite safe, no cause of fear or concern will affect the oil market.

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Iraq Oil Explorers Evacuate More Staff

Oil explorers have suspended operations in Kurdistan and evacuated more staff as the security situation has worsened in northern Iraq. Afren Plc halted work at Barda Rash field on the region’s western border. Oryx Petroleum Corp. stopped production at demir Dagh facility and temporarily suspended drilling in two other areas. Genel Energy Plc has also evacuated some personnel and Gulf Keystone Petroleum Ltd. increased security as a precautionary step. Genel Petroleum officials have stated that their company is taking prudent and precautionary steps of withdrawing unnecessary staff from the non-producing assets in the region.

KRG Oil

Oil explorers have suspended operations in Kurdistan and evacuated more staff

Chevron Corp. withdrew some expatriate staff yesterday. Reuters reported that Exxon-Mobil Corp. also evacuated people from the region. The world’s largest Oil Company declined to comment, saying that it doesn’t discuss security matters.Crude oil prices reversed gains of as much as 1.3 % in London, falling 36 cents to $105.08 a barrel by 11:11 a.m. in New York on the London-based ICE Futures Europe exchange. West Texas Intermediate declined 1 cent to $97.33 a barrel on the New York Mercantile Exchange.

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LUKOIL Earning $2 Billion from Iraq

LUKOIL, the second largest Russian oil producer announced that it expects to earn a minimum of $2 billion from Iraq’s crude oil exports in 2014. The company estimates to ship a minimum of 28 million barrels of oil and thus expects to regain more than half of the $4 billion original investment in the oil field during this year.

LUKOIL expects to earn a minimum of $2 billion from Iraq’s crude oil exports in 2014.

LUKOIL expects to earn a minimum of $2 billion from Iraq’s crude oil exports in 2014.

The company plans to invest approximately $40 billion in the project during its 25-yer life span; the majority of this amount will come from revenues generated from oil sales. Moreover, output is expected to increase over the next decade from today’s levels of 280,000 barrels a day now to 1.2 million barrels of oil a day.

LUKOIL president Andrey Kuzayev added that the political situation in Iraq has an important impact on his company but so far there is no influence on production in the south of country and that his company is satisfied with the level of security in Iraq.

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Afren Temporarily Suspends Production At Barda Rash

Afren announced that it has provisionally suspended production at Barda Rash filed as a cautionary step in the recent events

Afren announced that it has provisionally suspended production at Barda Rash filed as a cautionary step in the recent events

Afren Plc. announced last Friday that it has provisionally suspended production at Barda Rash filed as a cautionary step in the recent events of heightened security issues in the region. Afren officials have been working closely with its local security consultants in order to execute a phased withdrawal for unnecessary field staff from the Barda Rash field. However, all the remaining Afren operations in the Kurdistan are unchanged. Meanwhile, the company will keep closely monitoring the events in the region and consulting with its security advisors and the relevant authorities.Moreover, Afren added that they will return to filed operations as soon as it is cautious to do so and that this interruption is not expected to affect the Group’s cash flows.

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Gulf Keystone Petroleum Confirms Kurdistan To Be Safe

Gulf Keystone Petroleum announced that its operations in the Kurdistan region of Iraq have stayed safe and secure

Gulf Keystone Petroleum announced that its operations in the Kurdistan region of Iraq have stayed safe and secure

Gulf Keystone Petroleum announced that its operations in the Kurdistan region of Iraq have stayed safe and secure. The company’s operations include continuing production and trucking operations at its both Shalkan production facilities.

Even though GKP does not face an immediate threat to its operations in Kurdistan, the firm will keep monitoring the security situation and operating with additional cautiousness.

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METKA Gains Basra Contract

METKA won a contract worth $165 million to operate the Shatt Al Basra Power Plant.

METKA won a contract worth $165 million to operate the Shatt Al Basra Power Plant.

The Greek engineering and contracting firm METKA won a contract worth $165 million to operate the Shatt Al Basra Power Plant. The deal permits METKA to supervise the procedure of preparing the plant to burn heavy fuel oil to generate electricity. This project will be implemented during the next coming years for the Iraqi Ministry of Electricity.The company has another contract to install a 1250 MW gas-powered turbine in Basra.

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Russian Gazprom Explores Kurdistan for Oil

The Russian oil corporation Gazprom will begin exploration operations in the Kurdish province of Halabja before the year-end. Halabja is situated in the Kurdistan Regional Government KRG and is near to the Iraqi-Iranian Border.

 The Russian oil corporation Gazprom will begin exploration operations in the Kurdish province of Halabja


The Russian oil corporation Gazprom will begin exploration operations in the Kurdish province of Halabja

As soon as the firm succeeds in locating enough oil reserves, it will start normal drilling operations. In return to drilling in the Halabja region, Gazprom has agreed to provide several social services to residents in addition to offering opportunities for local students to travel and study energy related specialties in Russia every year.

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British Airways Considers Iraqi Airspace Safe

British Airways flies over Iraq because they consider it safe and they found Iraq to be unsafe they would stop flying over it.

British Airways flies over Iraq because they consider it safe and they found Iraq to be unsafe they would stop flying over it.

British Airways Chief Executive Officer Willie Walsh supports the airline’s decision to keep permitting their flights to across through Iraqi airspace. In fact, British Airways flights to Dubai and Doha regularly pass over Iraq for a part of the flight.

Walsh added that the company flies over Iraq because they consider it safe and they found Iraq to be unsafe they would stop flying over it.

The announcement followed others made by important airlines worldwide and their intents to modify their flight plans in order to avoid Iraqi airspace due to security concerns regarding rebels operating surface-to-air missiles.

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Positive Outlooks for Southern Oil

The southern part of Iraq, particularly the city of Basra, has remained relatively peaceful during the last few months despite the ongoing conflict in the northern country. Crude oil production for the southern fields stayed at around 3.15 million barrels per day. Iraq’s government forecasts the long-term oil export to reach about 8.4 million barrels per day. The new estimate was scaled down from 12 million barrels of oil per day by 2020 due to technical and infrastructure problems.

Crude oil production for the southern fields stayed at around 3.15 million barrels per day.

Crude oil production for the southern fields stayed at around 3.15 million barrels per day.

As a result to the current security problems, Iraq is not expected to reach the short-term production goal of 3.7 million barrels of oil per day. Experts estimate the output to be closer to 3.4 million barrels per day.

Several oilfield workers working for foreign companies have withdrew due to security worries, however oil output was not affected. Nevertheless, major pipeline projects will be delayed and won’t be completed this year.

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Russia Sells $1 billion Arms Deal to Iraq

The Russian government has signed a USD 1 billion contract to the Iraqi government, the Russians will provide the Iraq army heavy artillery, ballistic missile systems and ammunition.

Iraqi government has recently signed a USD 1 billion-worth deal with Russian government

Iraqi government has recently signed a USD 1 billion-worth deal with Russian government

The Russian Interfax News Agency reported that the deal was signed during a recent visit by Iraqi Defense Minister Saadoun Al-Dulaimi to Moscow.

The Russian agency added that the deal also includes, among others things, providing the Iraqi army with Grad missiles and armored vehicles. In addition, negotiations have started to sell the Iraqi government ten Su-27 jet fighters. The Su-27 frontline fighter has been declared one of the best combatant aircraft of the last century.

 

 

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