The China National Offshore Oil Corp (CNOOC CNOOC China National Offshore Oil Corporation ) is set to start operation to develop Iran's North Pars gas filed.
In 2009, CNOOC signed a $16 billion deal to develop the North Pars gas field and build a liquefied natural gas liquefied natural gas.
Saturday, May 1, 2010
Sunday, April 11, 2010
Rumaila legal challenge set for April 27
The Iraqi Federal Supreme Court postponed to April 27 a hearing of a lawsuit by a member of Iraq's outgoing Parliament challenging the legality of the first new oil contract awarded by Baghdad to a foreign oil company.
Sheda Musawi, who did not run for re-election in the March 7 national election, claims the contract for the Rumaila oil field, awarded to BP and the Chinese National Petroleum Corp. in a June 30 auction, is illegal.
The British oil major and its partner China National Petroleum Corporation won the right to develop the field in an historic televised oil field auction last June. The contract was formally signed in November.
But amid rising public anger about the ''colonisation'' of Iraq's oil fields, Shatha al-Musawi, an independent former MP, is contesting the prize contract in her country's federal court.
Iraq's efforts to boost its oil output could lift it from being the 11th biggest producer to the top three, after years of under-investment and neglect under Saddam Hussein.
If successful, Mrs Musawi's case could set a legal precedent that would invalidate all the agreements that Iraq concluded last year - with BP, CNPC, ExxonMobil, Petronas, Royal Dutch Shell, Eni, Gazprom and Lukoil.
The court was first due to hear the case in January this year, with Mrs Musawi arguing that the BP contract violates the Iraqi constitution on four counts - including that deals with foreign oil companies need to be properly approved by the country's parliament.
The Iraqi Government contests the allegations and it is trying to get the case thrown out, insisting that its actions were lawful.
Iraq has been preparing to open its oil fields to foreign investment since the end of the war that ousted Saddam, and plans to raise production from 2 million barrels per day to 7 million over the next six years.
However, Mrs Musawi's audacious decision to take legal action against her prime minister is a measure of the public anger about the Government's handling of the contracts.
Source: Telegraph, Iraq Oil Report
Sheda Musawi, who did not run for re-election in the March 7 national election, claims the contract for the Rumaila oil field, awarded to BP and the Chinese National Petroleum Corp. in a June 30 auction, is illegal.
The British oil major and its partner China National Petroleum Corporation won the right to develop the field in an historic televised oil field auction last June. The contract was formally signed in November.
But amid rising public anger about the ''colonisation'' of Iraq's oil fields, Shatha al-Musawi, an independent former MP, is contesting the prize contract in her country's federal court.
Iraq's efforts to boost its oil output could lift it from being the 11th biggest producer to the top three, after years of under-investment and neglect under Saddam Hussein.
If successful, Mrs Musawi's case could set a legal precedent that would invalidate all the agreements that Iraq concluded last year - with BP, CNPC, ExxonMobil, Petronas, Royal Dutch Shell, Eni, Gazprom and Lukoil.
The court was first due to hear the case in January this year, with Mrs Musawi arguing that the BP contract violates the Iraqi constitution on four counts - including that deals with foreign oil companies need to be properly approved by the country's parliament.
The Iraqi Government contests the allegations and it is trying to get the case thrown out, insisting that its actions were lawful.
Iraq has been preparing to open its oil fields to foreign investment since the end of the war that ousted Saddam, and plans to raise production from 2 million barrels per day to 7 million over the next six years.
However, Mrs Musawi's audacious decision to take legal action against her prime minister is a measure of the public anger about the Government's handling of the contracts.
Source: Telegraph, Iraq Oil Report
Thursday, April 1, 2010
Iraq awards $500m Rumaila well deals
Abdul-Mahdy al-Ameedi, director of the licensing office at the Iraqi oil ministry has said that Iraq has awarded contracts to drill 49 out of 56 new wells at the giant Rumaila oilfield, each valued at around $10m, Reuters has reported. Chinese firm Daqing and a joint venture between Schlumberger and the state-owned Iraq Drilling Co are each being awarded contracts to drill 21 new wells, while Weatherford International was awarded seven new wells, Ameedi said. "The remaining seven wells we have left for later, once we review the performance of the contractors," he said. [ameinfo]
Thursday, March 25, 2010
Invest in Iraq
Iraq has changed. As normal life begins to resume, economic activity has revived. Demand for all types of goods and services is growing fast. The focus is on reconstruction as the government rebuilds essential infrastructure, from power and water utilities and transport infrastructure to residential housing. At the same time, the government is investing in the essential economic infrastructure; including oil fields and the mid- and downstream pipeline, petrochemical, and fuel distribution sectors.
Iraq presents a huge commercial opportunity across a broad range of sectors. After five years when security was the dominant issue in Iraq, the country has now entered a new, positive phase. As the Iraqi government and security forces have stepped up their capacity, the environment for trade and investment has transformed for the better. Millions of Iraqis now have the freedom to live, to trade, to work and to travel. Security improvements are now substantial and tested. There have been notable improvements in the regulation of the business environment. The private sector has grown more important and, for the first time in decades, Iraq is open to foreign investment. These factors combine to create opportunities for trade and investment on an unprecedented scale.
To attract foreign investment into Iraq, generous benefits, guarantees and exemptions have been set out in Iraqi investment laws. Qualifying investments are eligible to:
•Receive 10 years exemption from taxes.
•Repatriate investment and profits from investments.
•The right to employ foreign workers when needed.
•Obtain three years exemption from import fees for required equipment.
•The guarantee that the government will not nationalize or confiscate investments.
To learn more about how to establish a commercial presence in Iraq or any other country in the Middle East, please contact: info[AT]aramconsulting.com
Iraq presents a huge commercial opportunity across a broad range of sectors. After five years when security was the dominant issue in Iraq, the country has now entered a new, positive phase. As the Iraqi government and security forces have stepped up their capacity, the environment for trade and investment has transformed for the better. Millions of Iraqis now have the freedom to live, to trade, to work and to travel. Security improvements are now substantial and tested. There have been notable improvements in the regulation of the business environment. The private sector has grown more important and, for the first time in decades, Iraq is open to foreign investment. These factors combine to create opportunities for trade and investment on an unprecedented scale.
To attract foreign investment into Iraq, generous benefits, guarantees and exemptions have been set out in Iraqi investment laws. Qualifying investments are eligible to:
•Receive 10 years exemption from taxes.
•Repatriate investment and profits from investments.
•The right to employ foreign workers when needed.
•Obtain three years exemption from import fees for required equipment.
•The guarantee that the government will not nationalize or confiscate investments.
To learn more about how to establish a commercial presence in Iraq or any other country in the Middle East, please contact: info[AT]aramconsulting.com
Russia's Lukoil leaves Iran
WASHINGTON, March 25 (UPI) -- A decision by Russia's Lukoil to postpone work on an oil project in Iran shows the push to sanction Tehran for its nuclear work is working, advocates said.
Russian crude producer Lukoil announced Wednesday it was suspending work on the Anaran oil project in Iran because of international pressure on energy companies doing business with Iran.
Mark Dubowitz, the executive director of the Washington policy institute Foundation for Defense of Democracies, said pressure to limit Iran's access to gasoline and attract investors to its energy market is having a major impact.
"The Iranian energy industry is in increasingly terrible shape," he added. "Lukoil's exit, while welcome, shows the need for U.S. President Barack Obama and Congress to work together to sign energy sanctions legislation into law as expeditiously as possible and enforce existing energy sanctions on the books since 1996."
U.S. lawmakers in January advanced legislation that would impose sanctions on companies that supply gasoline to Iran.
Apart from Lukoil, global oil and gas traders Vitol lead a group of international companies in moving out of the Iranian energy sector.
Lukoil said it would return to Iran "under a favorable economic situation."
Russian crude producer Lukoil announced Wednesday it was suspending work on the Anaran oil project in Iran because of international pressure on energy companies doing business with Iran.
Mark Dubowitz, the executive director of the Washington policy institute Foundation for Defense of Democracies, said pressure to limit Iran's access to gasoline and attract investors to its energy market is having a major impact.
"The Iranian energy industry is in increasingly terrible shape," he added. "Lukoil's exit, while welcome, shows the need for U.S. President Barack Obama and Congress to work together to sign energy sanctions legislation into law as expeditiously as possible and enforce existing energy sanctions on the books since 1996."
U.S. lawmakers in January advanced legislation that would impose sanctions on companies that supply gasoline to Iran.
Apart from Lukoil, global oil and gas traders Vitol lead a group of international companies in moving out of the Iranian energy sector.
Lukoil said it would return to Iran "under a favorable economic situation."
Wednesday, March 24, 2010
Iraq: Third round of bidding for oil exploration
The Ministry of Petroleum of Iraq has announced that it has not yet decided on the third round of bidding. However it is now focusing on making a decision on exploration opportunities. “Once the third round of biddings is announced, the Ministry will seek to invite companies for exploring new oil rigs and not for developing the existing fields”, said a source in the Ministry of Oil, stressing that companies will be allocated parcels of land for carrying out explorations and research to discover potential oil wells.
“The Ministry has formed committees for negotiating with neighbouring countries to continue the negotiating process in order to develop appropriate solutions for the demarcation of the fields, and clarification of the rights of the states with respect to these fields” added the source, expressing hope that agreements with Iraq neighbouring countries to be reached in the coming days to resolve the outstanding issues which would allow joint development of the fields to begin.
Al Sabah, Baghdad
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