Al Majal Updates

We were glad to participate for the second consecutive year as an exhibitor at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

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

Latest in the Iraqi & Global Energy Markets

The World Bank announced a slight upward revision in its forecast of Iraq’s 2022 growth at 8.9% as OPEC+ Covid-related quotas ended in September
This week, Iraq hit two anniversaries, the 2019 October protests and the 2021 October elections, both reflective of the country’s continuing political and social rifts.

Key Iraq Events – Oil and Gas

Iraq’s oil production in September remained steady topping 4.7 Mb/d for the third consecutive month – the highest since February 2020.
Iraq’s countrywide oil exports in September slightly increased to 3.692 Mb/d, up from 3.667 Mb/d in August. Federal Iraqi exports averaged 3.292 Mb/d

A consortium led by Italy’s Eni has ramped up production at the Zubair oilfield to 500 kb/d, with a target to reach 700 kb/d by 2027. The consortium plans to maintain current levels of production by raising water injection capacity by a total of 850 kb/d.
The Akkas gas field is finally poised to commence production, only a decade after it was awarded. The delay is mainly due to security issues emanating from the Islamic State (IS) group. Korea’s Kogas had exited the field with announcements in April that US oilfield services firm Halliburton

China Petroleum Engineering & Construction Corp. (CPECC) signed a US$ 386 M contract for the design, procurement, construction and testing of new crude oil processing facilities at the giant Rumaila oilfield
Just as TotalEnergies completed the divestment of its 18% interest in the Sarsang oilfield to ShaMaran Petroleum, the latter announced the commissioning of a 25 kb/d production facility at Sarsang.

Key Iraq Events – Power and Renewable Energy

Iraq is planning to launch new projects for solar power plants with a total capacity of 5 GW in 2023. Further details about the projects were not disclosed.
In October, Iraq’s Minister of Electricity Adel Kareem inaugurated the 250 MW Akkas gas power plant in Anbar province, adjacent to the Qaim 400 kV substation

OPEC Oil Demand Outlook

OPEC has reduced its forecast for 2022 world oil demand by almost 500 kb/d to reflect the recent macroeconomic trends and the OPEC+ supply cut impact on oil demand.

Top Energy Deals in the Region

The Saudi-based developer is considering the development of a third large-scale green ammonia production facility based on the concept used for its existing projects in Saudi Arabia and Oman and will likely be located in one of the regions where ACWA is already present (northern and southern Africa and the middle east gulf region.

Regional Rig Count (1): OPEC+ Pressure to Keep Iraq Rig Count Low

Middle East oil drilling has still not fully 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 has 54 active rigs as of September 2022, all drilling for oil. This number has not increased since the start of 2022, but is up 2 on December 2021, and 11 on April 2021. In 2019, prior to the pandemic, Iraq had 77 active rigs targeting oil. Middle East gas drilling is starting to show a moderate recovery, supported by the beginning of Qatar’s LNG expansion projects and renewed efforts by Saudi Arabia towards its 2030 gas ambitions.

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, and potentially work by Halliburton at Akkas, move forward).

* End of Qamar Energy’s contribution, for more information about Qamar Energy, please visit www.qamarenergy.com

Iraq Oil Market Highlights

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