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In our efforts to continually expand our service offerings to cater to our clients’ needs in Iraq, Al Majal recently launched an oilfield integrated projects division; Al Majal Integrated Projects (AMIP).
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AMBP is proud to announce the opening of the new recreation facilities for clients and residents to relax and unwind. In addition to our existing recreation facilities, we now offer a golf sports lounge and gaming room.
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Al Majal’s Oil & Gas Market Roundup in Collaboration with Qamar Energy
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The 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, the economy is expected to have grown 3.6% in 2021 and to grow 10.5% in 2022
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The Iraq National Oil Co. (INOC) will acquire ExxonMobil’s stake in the West Qurna-1 oilfield, following the federal government’s approval of the takeover. Arkan al-Shaibani, Iraq’s minister of Communications, said that Iraq was offering US$ 350 M to ExxonMobil for its stake in the West Qurna-1 contract.
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Al Majal is happy to announce its new, three-year partnership agreement with Iraq Drilling Company (IDC).
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Iraq’s nationwide oil exports rose to 3.681 Mb/d in December, up from 3.678 Mb/d from November levels.
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In mid-January, the Iraq-Turkey Pipeline (ITP) stopped Iraq’s northern oil export flows temporarily due to an explosion on the Turkish side.
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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.
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Iraq has finalized contract terms with China’s Sinopec to develop the Mansuriyah gas field, though the deal will not be signed until a new government is officially formed.
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UAE-based Dana Gas and it partner Crescent Petroleum mentioned that gas production from their operation at the KRI grew 50% to reach a record 452 MMscf/d by end-2021.
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Key Iraq Events – Refinery
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Ihsan Abdul-Jabbar, Chairman of INOC, laid the foundation stone for the US$ 594 M crude oil processing plant in the exploration Block 9, situated in the Faihaa oilfield near Basra, at a capacity of 100 kb/d along with 135 MMscf/d of gas at a future stage for power generation.
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Iraq’s electricity sector is suffering acute disruptions because of natural gas shortages, reflecting weak energy infrastructure and overreliance on Iranian energy imports.
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Key Iraq Events – Renewable Energy
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Iraq is planning to set up a sovereign wealth fund wherein it will deposit 1% of oil export revenues each month to finance renewable energy projects and develop a cash reserve for future generations.
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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.
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Key Iraq Events – Politics
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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.
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Iraq’s semi-autonomous Kurdistan Regional Government (KRG) resumed oil imports from northeast Syria, solving a diplomatic dispute that threatened an economic lifeline for the Kurdish administration in Rojava.
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Top Energy Deals in the Region
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BP signed a pact with Oman to deliver multiple GW renewable energy and hydrogen projects by 2030.
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France’s TotalEnergies joined a group of companies led by Masdar to produce sustainable aviation fuel from green hydrogen.
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Regional Rig Count (1): OPEC+ Pressure to Keep Iraq Rig Count Low
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Source: Baker Hughes International Rig Count
While not yet disclosed by the Iraqi Parliament, the revenues earned seemed to be calculated by excluding the first two months of 2021, for the remainder of the year
Middle East oil drilling has still not recovered from the sharp drop induced by the pandemic and the related OPEC+ production cuts. However, it is likely to start expanding as quotas increase and production growth plans in the UAE and Iraq get underway. Iraq added a further three rigs in October for cumulative gains of 16 since beginning-2021. All rigs are onshore targeting oil. This rebound comes as INOC and its subsidiaries signed a series of deals with international service companies.
Gas drilling is starting to show a moderate recovery, supported by the beginning of Qatar’s LNG expansion projects.
Note: Iraqi gas rigs are not reported by Baker Hughes, likely because Iraq reports gas rig figures clubbed with oil rigs and/or lack of response from contractors (drilling for non-associated gas is at minimal levels compared to oil, although it should pick up as Sinopec’s development of Mansuriyah and the Pearl Petroleum consortium’s expansion of Khor Mor move forward).
* End of Qamar Energy’s contribution, for more information about Qamar Energy, please visit www.qamarenergy.com
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Iraq Oil Market Highlights
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