Al Majal Updates

Al Majal is happy to announce its new, three-year partnership agreement with Iraq Drilling Company (IDC). The agreement aims to develop IDC’s technical teams and to qualify its specialized maintenance workshops in accordance with international standards.

Every year, Al Majal Business Park (AMBP) hosts Christmas and New Year’s dinners at both properties in Burjessia and North Rumaila. This year was AMBP hosted two beautiful events, while still keeping in mind and taking all safety precautions and social distancing guidelines.


Al Majal’s Oil & Gas Market Roundup in Collaboration with Qamar Energy

The country’s economy is gradually recovering from the double oil and CoVid-19 shocks of 2020. In H1 2021, Iraq’s GDP grew by 0.9% y-o-y. According to the IMF, Iraq’s economy is expected to grow 3.6% in 2021 and 10.5% next year following a contraction of 15.7% in 2020 due to the pandemic. Iraq’s non-oil economy grew over 21% in H1 2021 following a solid performance

Key Iraq Events – Oil

Russia’s Lukoil submitted a preliminary development proposal for the Eridu oilfield in southern Iraq, with a proposed peak production standing at around 250 kb/d. Lukoil’s preliminary geological assessment indicates significant oil reserves of between 7-12 billion barrels, the largest discovery in Iraq in the last 20 years.

According to S&P Global Platts, Iraq’s nationwide production reached an 18-month high of 4.208 Mb/d in November, from October’s 4.07 Mb/d (lower than Iraq Oil Report’s figure of 4.30 Mb/d in October). Iraq’s OPEC+ quota rose to 4.193 Mb/d in November, from 4.149 Mb/d in October, as the coalition continues to raise production caps.  
Iraq’s nationwide oil exports rose to 3.678 Mb/d in November, up from 3.523 Mb/d from October levels. Federal exports increased to 3.273 Mb/d in November, up 153 kb/d from October, while KRG exports remained unchanged from last month at an average of 404 kb/d.

 

Halliburton denied a claim by Iraq’s oil minister that it’s in talks to buy the stake of ExxonMobil in the huge West Qurna-1 (WQ1) field. Although the oil services giant held talks about providing services to a prospective buyer of the WQ1 stake, those talks are now over, according to Emily Mir, a spokeswoman for the Houston-based contractor.
Federal Iraq and the semi-autonomous KRG have reached a notional agreement to implement a revenue-sharing deal that stalled since the ratification of the 2021 budget on March 31. So far, the Iraqi Finance Ministry sent three budget transfers of US$ 138 M on July, August and November to the KRG this year.

Key Iraq Events – Gas

Genel Energy is taking the KRG to international arbitration over the termination of contracts for the Miran and Bina Bawi gas fields, ending 10 years of uncertainty over Erbil’s strategy for developing its gas sector.
Iraq Drilling Co. (IDC) signed a deal with China’s Zhongman Petroleum and Natural Gas Group (ZPEC) which includes the implementation of drilling and various other activities for international operators of Iraqi oilfields.

Key Iraq Events – Power

Baghdad is discussing potential electricity interconnections with each of Saudi Arabia, Turkey, Jordan, and Kuwait.

Ducab Group has been awarded to supply overhead conductors for a 288 KM Over Head Line (OHL) project
Iraq’s semi-autonomous Kurdistan Regional Government (KRG) has run up almost US$ 5 B worth of debt to power producers

Key Iraq Events – Renewable Energy

Iraq signed agreements with a number of foreign companies to build 5.2 GW worth of solar power plants in the first phase.
Iraq seeks to raise the share of clean energy to 33% by 2030 building on solid expansion in solar capacity, according to the country’s oil minister.

Key Iraq Events – Politics

Iraq has completed its reparations to Kuwait for the 1990 invasion as the ministry of finance processed the last US$ 45 M payment

Yahya al-Eshagh, head of Iran-Iraq Joint Chamber of Commerce, mentioned that Baghdad has paid a part of its outstanding debt of US$ 7 B to Tehran
The Ministry of Finance said it is working on preparing legislation for the 2022 budget, which was supposed to be approved on the 1st of October.