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In collaboration with Iraq Britain Business Council IBBC, Al Majal Business Park (AMBP) hosted its second annual IBBC networking event at Al Majal Business Park Burjessia.
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Al Majal’s Oil & Gas Market Roundup in Collaboration with Qamar Energy
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Latest in the Iraqi & Global Energy Markets
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Iraq’s government debt as a share of its GDP is set to fall to about 47% in 2022 from 66% in 2021 – the biggest fall of any government in the Middle East and North Africa, according to Fitch Ratings.
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As Iraq embarks on a mission against the Kurdistan region’s oil sector independence, its 8-year-old arbitration case against Turkey at the International Chamber of Commerce’s International Court in Paris
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Schlumberger, Baker Hughes and Halliburton are in the process of liquidating and exiting existing tenders and contracts in in the Kurdistan region, in compliance with the Federal Supreme Court ruling.
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Iraq’s oil production jumped 153 kb/d higher in June reaching 4.62 Mb/d – the highest since February 2020.
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Iraq’s countrywide oil exports increased to 3.746 Mb/d in June, up from 3.729 Mb/d in May.
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Following three rocket and mortar attacks in four days, the Pearl Consortium developing the Khor Mor gas field, has suspended expansion work as contractors began evacuating the site.
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Key Iraq Events – Power / Renewable Energy
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On July 16, Iraq and the GCC Interconnection Authority (GCCIA) signed an accord to tie Iraq’s southern electricity grid to those of the six GCC states, including agreement on a tariff.
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Al Muthanna Governorate in southern Iraq is planning to set up two solar parks with a combined capacity of 630 MW to support the energy supply in the province.
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Production at Iraq’s Karbala oil refinery will begin before year-end, according to oil minister Ihsan Abdul Jabbar Ismail.
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Top Energy Deals in the Region
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Brooge Energy to set up Brooge Renewable Energy (BRE) to accommodate clean energy projects.
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OPEC forecasts 2022 world oil demand growth to remain unchanged from the previous month’s assessment at 3.4 Mb/d. OECD oil demand is expected to increase by 1.8 Mb/d while non-OECD demand is seen growing by 1.6 Mb/d. Demand is expected to be impacted by ongoing geopolitical developments in Eastern Europe in the wake of the Russian invasion of Ukraine, and now to an extent by the CoVid-19 pandemic which led to re-imposed lockdowns in China.
Middle East oil demand increased by 245 kb/d in May from April levels, with strong demand for diesel and jet fuel being the main drivers. Middle East oil demand in Q3 2022 is expected to reach 8.32 Mb/d on the back of rising demand for fuel oil and diesel in the transport and industrial sectors.
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Regional Rig Count (1): OPEC+ Pressure to Keep Iraq Rig Count Low
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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 June 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
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Iraq Oil Market Highlights
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