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The AMTS OES team has successfully completed an overhaul and recertification of a standpipe and ground manifolds for a major client.
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The AMTS team has successfully completed a large job for a major oil and gas operator, the scope of which covered work on an oil heater (coils and nozzles).
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Al Majal continues its participation as a gold sponsor of the Iraq Business Forum (IBF). IBF is an exclusive, Iraq-focused event, that allows companies and international investors in Iraq to hear from experts about the latest developments in the country, and interact with investors and operators with long-term experience in Iraq.
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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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The country’s oil and non-oil sector is projected to return to and even exceed pre-pandemic levels, as oil production and exports increased and the oil price is now around $113/b in the wake of the Russian invasion of Ukraine.
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Iraq’s Oil Ministry initiated legal action against IOCs operating in the Kurdistan region, following the Federal Supreme Court’s ruling to invalidate the Kurdistan Regional Government’s independent oil sector.
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In May, Iraq’s Federal government and Kurdistan region pumped a combined 4.48 Mb/d, 80 kb/d below April’s levels.
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Iraq’s countrywide oil exports averaged 3.729 Mb/d in April, down 90 kb/d from April levels.
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The Iraqi government has agreed to buy out ExxonMobil’s 32.7% stake in the southern West Qurna-1 oilfield, with state-owned Basra Oil Co. acquiring the largest share in field with recoverable reserves estimated to exceed 20 billion bbl.
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In a visit to London, Iraq oil minister Ihsan Ismael and BP Chief Executive Bernard Looney discussed raising output capacity at the 1.5 Mb/d Rumaila field to 1.7 Mb/d.
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China Petroleum Engineering and Construction Co. (CEPCC), part of state-owned CNPC, was awarded a contract by Baker Hughes to carry out the engineering for 200 Mcf/d of associated gas from the Nassirya and Al-Gharraf fields for power generation.
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Key Iraq Events – Energy Infrastructure Security
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A Katyusha rocket landed inside the Khor Mor gas field in Sulaymaniyah in northern Iraq, but caused no damage, according to security officials. The attack did not affect operations at the field, which is situated in the eastern half of the Kurdistan region, under the control of the Patriotic Union of Kurdistan (PUK) party.
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Top Energy Deals in the Region
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Aramco will invest in 12 GW of renewable energy capacity and produce 11 Mtpa of blue ammonia by 2030
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OPEC forecasts 2021 world oil demand growth to remain unchanged from the previous month’s assessment at 5.7 Mb/d. Meanwhile, 2022’s world oil demand is expected to increase by 3.4 mb/d, unchanged from last month’s assessment. Oil demand is projected to be slower at 1.8 Mb/d in the OECD and 1.6 Mb/d in the non-OECD. Demand is expected to be impacted by ongoinggeopolitical 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.
In 2022, Middle East oil demand is forecasted to increase by 0.27 Mb/d y-o-y, 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 48 active rigs as of May 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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