Draw Media
News / Kurdistan

Oil companies in Iraqi Kurdistan plan expansions as Baghdad vows crackdown

Crude production in Iraq's semiautonomous Kurdistan region continues to increase, as Baghdad ratchets up pressure on Erbil to lower output and help the country comply with its OPEC+ quota.   Financial filings from five public oil companies operating in the Kurdistan region show their crude production reached a collective 173,000 b/d in the second quarter, up from 170,000 b/d last quarter. That compares with just over 2,000 b/d in the quarter immediately after the region's key export pipeline to the Turkish port of Ceyhan was shuttered in March 2023 and 182,230 b/d in the quarter preceding its closure. Overall production in the region, including volumes from the local Kar Group, is higher and is estimated by S&P Global Commodity Insights to stand around 250,000 b/d, down from about 400,000 b/d before the pipeline closure. In a sign of how the Kurdish market is rebounding, Norwegian oil company DNO announced it would expand its operations in Kurdistan for the first time since early 2023, saying in its second-quarter financial results that it would mobilize a rig to drill a new well on its Tawke license. Production at DNO's fields was up 9% from the last quarter, with pumped crude totaling 79,800 b/d in the second quarter of 2024. Similarly, Canada's Shamaran Petroleum, which acquired the Atrush and Sarsang blocks, with HKN operating both blocks, said it expects to increase production. Gulf Keystone said it has begun round-the-clock trucking operations as production and demand pick up. The company noted a "successful return to profitability and free cash flow generation" in its H1 2024 financial results "following a challenging 2023."   Baghdad's OPEC woes   Kurdish production, even in its reduced capacity, has hampered Iraq's OPEC+ quota compliance. Iraq increased production by 110,000 b/d on the month to 4.33 million b/d in July, according to the latest Platts OPEC+ survey by Commodity Insights -- well above its quota of 3.93 million b/d under the group's latest accord. Iraq has significantly overpumped its quota since the start of the year, provoking the ire of other OPEC+ members, who have pressured the country and other compliance laggards, such as Kazakhstan and Russia, to improve their conformity. Baghdad, in turn, has ratcheted up pressure on the Kurdistan Regional Government, along with pledges to reduce its own federal crude exports and domestic consumption. To improve compliance, Baghdad has told the KRG that it must reduce output to 46,000 b/d, with any additional volumes requiring Erbil to pay the federal government, a senior official with federal marketer SOMO said in an Aug. 29 briefing with independent secondary sources used by the OPEC+ alliance to monitor member production. That will be enforced, the official added, through withholding of the KRG's share of the federal budget, which includes money to pay salaries. SOMO has also disputed the production figures reported by the international oil companies, pegging KRG output at around 150,000 b/d. The KRG could not be reached for comment, and the Association of the Petroleum Industry of Kurdistan, a trade group representing oil companies in the region, did not respond to a request for comment. As of March, Baghdad owed the Kurdistan region over $7 billion in unpaid dues, according to a statement from the regional government at the time.   Local market   Producers in the region have found a new domestic market for their crude, where sales prices are well below international market rates. Sales to local traders go for roughly $28 to $40/b in a murky process controlled by Kurdish officials. Local refineries process the crude – primarily turning it into gasoil and diesel. According to Mahmood Baban, a fellow at the Rudaw Research Center in Erbil, the five official refineries in Kurdistan have a collective refining capacity of 330,000 b/d. Hundreds of illegal topping plants and small refineries also process a small amount of crude. On Aug. 4, local authorities in the Erbil governorate said they had shut 138 illegal topping plants and ordered dozens of unlicensed refineries to implement environmental protection requirements or face closure. While most of the refined products are used domestically and sold to local fuel stations, some makes its way on truck – or even pack horses – across the border into Iran and Syria, Commodity Insights has reported. Crude from the region was once a staple of refineries in the Mediterranean market, which imported cargoes of medium sour Kurdish Test Blend from the Iraq-Turkey Pipeline's terminal in the Turkish port of Ceyhan through deals signed with the KRG, independent of SOMO's oversight. The pipeline is now at the center of a lengthy political and legal battle that shows no signs of letting up. The federal government may have little to gain from reopening the pipeline, and indeed, a full restoration of Kurdish crude exports would cause further OPEC+ compliance challenges.

Read more

Kurdish production complicates Baghdad’s gas ambitions

Iraqi Kurdistan continues to increase its oil production despite restrictions from Baghdad, which is trying to comply with OPEC+ quotas and attract US gas investment to diversify its energy sources.  Oil production in Iraq’s Kurdistan region is increasing, despite efforts by the central government in Baghdad to limit it and meet OPEC+ quotas. The latest data from SOMO (State Oil Marketing Organization) show Iraq producing 4.33 million barrels per day (b/d) in July 2024, exceeding the imposed quota of 3.93 million b/d by 400,000 b/d. This situation is creating growing tensions between the federal government and the Kurdistan Regional Government (KRG), with threats of cuts to the federal budget allocated to the Kurdish region if production levels are not adjusted. Baghdad seeks to attract US investment in the gas sector To offset these tensions and improve its economic position, Iraq is banking on the development of its gas sector. Oil Minister Hayan Abdel-Ghani has announced that he will present ten gas exploration blocks to American companies during a forthcoming visit to the United States. This initiative comes after several licensing rounds in which the majority of available fields were awarded to Chinese companies, leaving blocks untapped. The project aims to diversify Iraq’s energy partnerships and reduce dependence on gas imports, particularly from Iran, essential for supplying energy to power plants. In addition, Iraq plans to launch a new gas project by the end of the year on the Al-Faihaa oil field in the south of the country, with an estimated production capacity of 125 million standard cubic feet (mscf). This project is part of a wider strategy that also includes recent agreements to develop 13 oil and gas blocks, strengthening the local energy infrastructure. Oil companies expand in Kurdistan despite restrictions Meanwhile, oil companies operating in Kurdistan continue to expand their activities. DNO, a Norwegian company, is mobilizing a new drilling rig at the Tawke site, increasing production to 79,800 b/d in the second quarter of 2024. This expansion marks a significant recovery from previous slowdowns, although export constraints persist due to the closure of the pipeline to Turkey. Other players such as Shamaran Petroleum and Gulf Keystone are adopting similar strategies, stepping up their trucking operations to move crude to the local market, compensating for the absence of regular exports. Gulf Keystone reports an improvement in its financial situation and a return to positive cash flow for the first half of 2024, while adjusting its operations to market realities. Implications for Iraq’s compliance with OPEC+ quotas The surge in Kurdish oil production poses a direct challenge to Iraq’s efforts to meet its OPEC+ commitments. SOMO disputes the production figures published by international companies in the Kurdistan region, believing them to be lower than announced. This uncertainty makes it difficult to monitor total production and compliance with quotas, exacerbating tensions between Erbil and Baghdad. In response to these difficulties, Baghdad stepped up the pressure on the KRG by reaffirming that any additional production above 46,000 b/d would have to be accompanied by payments to the federal government. This measure is intended to deter any attempt by the KRG to increase production autonomously without coordination with the central government. Domestic market and logistics challenges Faced with the continuing closure of the pipeline to Ceyhan in Turkey, Kurdish producers are looking for alternatives on the domestic market. Crude is sold locally at prices ranging from $28 to $40 a barrel, well below international tariffs. Local refineries process crude oil into products such as diesel and gasoil, while some volumes are smuggled across the border into Iran and Syria. Local authorities, meanwhile, are closing down illegal refining facilities and imposing environmental protection requirements on unlicensed refineries. These actions demonstrate an attempt to regulate a local market that is increasingly diversified, but also difficult to control in a context of political and economic uncertainty. Future strategies and geopolitical issues The continued closure of the Kurdistan-Turkey pipeline and the uncertainties surrounding its reopening add to the complexity of Iraq’s energy situation. A resumption of exports via this route could further complicate Iraq’s OPEC+ compliance efforts, creating a dilemma for Baghdad. In this context, the approach of energy diversification and reducing import dependency by attracting US investment appears to be a pragmatic strategy for securing the country’s energy future. Iraq’s energy challenges continue to evolve in an environment marked by internal rivalries and complex international dynamics. Efforts to balance oil production, meet international commitments and attract new economic partners will define the country’s future trajectory on the global energy scene.   Source: energynews

Read more

Kurdistan oil production increases despite pipeline closure

Crude oil production in the Kurdistan Region has increased despite the closure of its export pipeline, with plans for further expansion. Financial reports from five public oil companies operating in the Kurdistan Region show that their crude oil production reached 173,000 barrels per day (bpd) in the second quarter of 2024, up from 170,000 bpd in the previous quarter. This is a significant recovery compared to just over 2,000 bpd in the quarter following the shutdown of the Region's main export pipeline to Turkiye's Ceyhan port in March 2023. Production had been at 182,230 bpd in the quarter before the pipeline closure. The Region's total production, including volumes from the local Kar Group, reached approximately 250,000 bpd, down from around 400,000 bpd before the pipeline was shut. Indicating a recovery in the Kurdish oil market, Norwegian oil company DNO announced plans to expand its operations in the Kurdistan Region for the first time since early 2023. In its second-quarter financial results, DNO stated it would mobilize a rig to drill a new well in the Tawke license. DNO's production in its fields increased by 9% from the previous quarter, with total crude output at 79,800 bpd in the second quarter of 2024. Similarly, Canada's ShaMaran Petroleum, which operates the Atrush and Sarsang blocks through HKN Energy, expects to increase production. Gulf Keystone also reported that it has resumed 24-hour transport operations as production and demand grow, noting a "successful return to profitability and free cash flow generation" in its first-half 2024 financial results after a challenging 2023.

Read more

Kurdistan Elections, Oil, and State of Journalism discussed at Washington Institute

The Washington Institute invited Mohammad Rauf the editor-in-chief of Draw Media to a roundtable with a number of researchers on the Middle East, Iraq, the Kurdistan Region, Egypt and Palestine. The editor-in-chief of Draw Media had a serious discussion with researchers from the Washington Institute on the issues of Kurdistan Elections, Oil, and State of Journalism. Mohammad Rauf analyzed the issues with statistics, data and graphs.

Read more

Ahead of Elections, Iraqi Kurdistan’s “Shadow Media” Ramps Up

Winthrop Rodgers Iraq’s semi-autonomous Kurdistan Region will hold elections on Oct. 20. Although the formal campaign has not yet begun, the so-called “shadow media” is already in full swing spreading disinformation, promoting political spin, and attacking rivals. One post claims the US and Iran are conspiring to remove Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani from power. Another post insists that an opposition figure asked a military commander to have soldiers shoot up his house in a contrived bid for sympathy.  One post from a supportive page hailed KRG Deputy Prime Minister Qubad Talabani as a “symphony of tranquility in the noisy forum of politics.” In contrast, an attack page claimed he was scheming to “humiliate” a faction within his own party and blame them in the event of an election loss. The shadow media refers to networks of social media pages that are affiliated with political parties and powerful individuals. They mimic the appearance of legitimate — if low-quality — Kurdish news outlets by mixing in authentic news coverage and posting graphics in a similar style. Nevertheless, experts say their primary purpose is to manipulate public opinion in service of their patron. “The influence of shadow media on the Kurdistan Region’s information landscape is profound,” explained Dr. Harem Karem at Pasewan Organization for Public Policy. “These outlets sow discord within society, erode the already fragile trust in public institutions, and severely damage the credibility of the journalism profession.” Stoking Anger and Discord The most popular pages, including most of those cited above, have more than 100,000 followers on Facebook, the most active social network in the Kurdistan Region. Even small operations pass through the feeds of tens of thousands of people every day.  Disinformation and malignant social media campaigns are not unique to the Kurdistan Region; they are a worldwide phenomenon. Yet, it has a profound and outsized effect on the Kurdistan Region’s relatively small political community, which has fewer than three million eligible voters. The rise of the shadow media was not an organic process. It was designed, directed, and funded by some of the most powerful politicians, businesspeople, and security forces in the Kurdistan Region, who frequently hide their involvement through proxies and shell companies in order to maintain a façade of independence. All parties across the political spectrum are involved, including the two ruling parties and the steadily expanding galaxy of opposition groups. For the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK), which have controlled the Kurdistan Region for the last three decades, the pages are a way to frame their most prominent families as paternal protectors and statesmen. They are also a way to launch defamatory attacks on rivals, journalists, and critics. For opposition parties, shadow operations are a relatively cheap way to bypass mainstream outlets, stoke public anger, and introduce doubts about the ruling parties and competitors within the opposition. “Criticize the Authorities” According to one employee, who works for a page associated with an opposition party and spoke on condition of anonymity to protect their job, shadow media operations are staffed by small teams. They receive direction from an editor and must write and edit numerous posts each day to keep a steady stream of content flowing. The employee said they were paid 900,000 Iraqi dinars (around $600 at current market rates) per month for their work, which makes for an above average paycheck in difficult economic conditions. “We are opposition media and our direction at work is to criticize the authorities,” they said. “We have tried not to become a party media despite being financially supported by an opposition force, but sometimes we need to convey our articles to viewers and readers according to the policy of [that party].” While some patrons try to keep as much distance from the shadow media pages that they fund, others prefer a more hands-on approach. Hevar Jalal used to work for the New Generation Movement, an opposition party led by businessman Shaswar Abdulwahid, as the head of its official media shop. During the course of his work, Jalal became increasingly aware of the party’s concealed media operations, which had “dozens of large shadow pages to be used against the president’s rivals.” In an interview, Jalal claimed that Abdulwahid closely monitored social media to see what was being said online and would tweak the language of posts before sponsoring them on Facebook. “He changed his opinion about parties and personalities every day, sometimes sending messages that everyone should write against someone or support someone else,” Jalal said, adding that he eventually resigned from his position with the party after becoming disillusioned. No Clear Distinction  These cases show that the line between legitimate journalism and political activism, on the one hand, and disinformation and clandestine political attacks, on the other, is not at all clear in the Kurdistan Region’s highly politicized information space. “The distinction between the mainstream and shadow media has become increasingly difficult to discern, as they often overlap or influence one another,” Karem noted. “The current state of the information ecosystem is chaotic, with no immediate efforts underway to restore order.” “Unrealistic and Dishonest” Beyond sowing confusion and disinformation, the shadow media frequently attacks prominent women, government critics, journalists, and minority communities. Rezan Sheikh Dler, a lawyer and women’s rights activist who served two terms as PUK MP in the Iraqi parliament, said that “it cannot be imagined how many big attacks have been done by these shadow media pages on me. They are so unrealistic and dishonest.” Dler said that pages would sometimes publish fake statements in her name in order to provoke public outrage. She added that it is normal for public figures to be talked about, but that the shadow media’s extreme actions resulted in real harm. When women working in the political field face such instances, she said, they become frightened, “and that fear is worse than hopelessness.” She added that women often face threats of fake photos or videos that show them in compromising situations. “This makes women politicians unable to speak the truth and to withdraw from politics.” It is clear that the region’s shadow media, a pervasive presence in the information landscape, in has a malignant impact both in broad societal terms and for specific individuals and communities. Yet, it is difficult to address these harms and reduce the sector’s impact. “I would often decide to go and file a legal complaint,” Dler said. “But then I thought that with all these shadow media pages, how can you file a complaint against so many people and parties?” She believes that since the parties “created the shadow media, they can remove them as well.”  “Difficult to See the Truth” For his part, Karem believes in a more comprehensive approach, including improving media literacy and ensuring that major social media companies conduct better oversight of the content on their platforms. He also urged the Kurdistan Parliament to pass legislation to update media regulations, ensure transparency in media funding, and improve access to information. However, these solutions cannot be implemented in time for the parliamentary elections, now less than two months away. As the campaign heats up, the pace and intensity of shadow media’s activities will only grow. “Only the creator of the storm can understand what is going on,” Jalal said. “The shadow media has confused the Kurdish media in such a way that it is difficult to see the truth.”

Read more

Draw Media's Discussion on elections, oil and freedom of the press at the US State Department

Mohammad Rauf the editor-in-chief of Draw Media at the U.S. Department of State, with a number of the US officials concerned with the Iraqi and the Kurdistan Region's affairs, discussed the issues; (elections in the Kurdistan Region, the issue of oil and oil smuggling, the state journalism and assassination of journalists, especially the assassination of two journalists by Turkey). During his meeting with Jacob D. Surface, of the Iraqi affair, Jeffrey Zimmer, Program Officer, Michael Day, of the Kurdistan Region's affair at the U.S. Department of State, and several other officials, Mohammad of Rauf the editor-in-chief of Draw Media, presented the issues of freedom of expression, oil smuggling and elections with detailed graphs, data and statistics at the US State Department

Read more

UNDP unveils comprehensive report on grand corruption cases in Kurdistan Region

The United Nations Development Programme (UNDP) has released the Trial Monitoring Report on grand corruption cases across the Kurdistan Region of Iraq, marking a significant milestone in curbing corruption in Iraq. The report highlights substantial progress by the Kurdistan Regional Government in combating corruption and offers deep insights into the region's judicial proceedings through comprehensive analysis, while setting forth a number of recommendations to bolster the efforts in achieving transparency and integrity within the judicial system. Key Findings Reveal Corruption-Prone Sectors and Judicial Improvements The report, which covers court hearings in Erbil, Sulaymaniyah, and Duhok, is based on the monitoring of over 100 cases from November 2022 to December 2023, along with 50 verdicts issued between 2016 and 2022. The focus of the report is on major corruption cases, including those involving high monetary thresholds, high-ranking officials, and cases of public interest or those against informants and Anti-Corruption advocates. Key findings of the report indicate that the Ministry of Finance (25%), the Ministry of Electricity (18%), and the Municipal Councils (17%) are among the most affected government sectors by grand corruption. The analysis reveals an increase in convictions compared to acquittals, though the rate of high-level defendants remains low, with few senior government officials being charged. A significant progress is reported with the exclusion of corruption-related cases from the general amnesty regime. It also notes a notable reduction in trials conducted in absentia and a rise in felonies related to intentional damage through abuse of public office, reflecting the judiciary's progress in anti-corruption efforts. However, it highlights a concerning lack of civil society organizations (CSOs) attending trials as third parties, despite legal provisions allowing their presence.  A cornerstone to bolster the progress Being a corner stone of UNDP`s Anti-Corruption and Arbitration Initiatives financed by the European Union; the report was published in collaboration with the Judicial Council of the Kurdistan Region of Iraq Human Rights Office of the United Nations Assistance Mission for Iraq (UNAMI). Speaking at the launching event Auke Lootsma, Representative of UNDP, emphasized the importance of the report for the unified efforts for curbing corruption, `This critical report, the culmination of our joint efforts, represents a significant milestone in our collective quest for enhanced transparency and justice. We stand ready to collaborate to address the recommendations of the report` he said. Sending a video message, Thomas Seiler, the European Union Ambassador to Iraq has stated, `The Trial Monitoring report offers a very deep insight into how investigations are led and how trials are conducted. Its recommendations will guide us in refining our strategies and enhancing anti-corruption measures.’ Judge Abdel Gabar Aziz Hassan, the head of Judicial Council of the Kurdistan Region of Iraq stated the important role of the report for the judiciary reforms in the region, `While proving our dedication against corruption, the report also provides us with an opportunity to advance our committed practices towards a more transparent and accountable judiciary system,’ he said.  Reforms Recommended The report urges the Government of the Kurdistan Region, the Judicial Council, the Bar Association, and Civil Society and International Community to implement proposed anti-corruption reforms. These include the establishment of specialized courts for major corruption cases, the modernization of the penal code to address current issues such as private sector bribery, and the enactment of legislation to protect whistleblowers and victims. The report also calls for limiting institutional discretion in withdrawing damage claims and strengthening oversight in corruption-affected sectors. Further recommendations include reforms to criminal procedures to enhance investigative capabilities, the implementation of an electronic case management system, and the standardization of sentencing. Additionally, the report highlights the importance of reinforcing the financial independence of the Public Prosecutor’s Office and supporting civil society in anti-corruption initiatives.

Read more

Dana Gas terminates EPC contract for Khor Mor expansion project

The UAE company Dana Gas has confirmed the termination of the contractor working at its project in Kurdistan Region of Iraq. On Monday (August 19), the notice of termination was issued to Enerflex, the EPC (engineering, procurement, construction) contractor for the Khor Mor gas expansion work in KRI. “The ongoing impact of performance issues has materially affected Enerflex’s ability to meet its contractual obligations,” Dana Gas said in a statement. And which led to ‘unacceptable delays’ and in turn hindering timely completion of the project (KM250). “To safeguard the interests of Pearl Petroleum, its stakeholders and the people of the KRI, the company (Pearl Petroleum, the operating company) has taken the necessary step of issuing this notice of termination,” the statement added. “This action will enable Pearl Petroleum to assume direct control over the remaining phases of the project, ensuring that it is brought back on track and completed in the timeliest manner.” Plus, 'Pearl also reserves all its rights under the contract including potential claims for damages'. The KRI facility had been the target of mortar attacks in the recent past, but the company was able to resume existing operations swiftly enough. Dana Gas recorded profit of Dh124 million in the first-half of 2024, a 3 per cent gain.   

Read more

DNO Reports $35 Million Profit, Fueled by Kurdistan Production

 The Norwegian oil and gas operator DNO reported a $35 million profit for the second quarter of 2024, driven by increased oil production in Iraqi Kurdistan, the company announced on Saturday. DNO's average production in Kurdistan reached 79,783 barrels per day (bpd) during the second quarter, marking a 5% rise from the previous quarter. According to the DNO report, the output was primarily sourced from the Peshkabir and Tawke fields, which produced 49,099 bpd and 30,684 bpd, respectively. No production was reported from the Bashiqa field. The company noted that the average selling price for oil from these fields was $30 per barrel to local traders, contributing to total revenues of $137 million. Notably, the Kurdistan region of Iraq remains DNO's core area in production and reserves. DNO holds a 75 percent operated interest in the Tawke license, with partner Genel Energy International Limited holding the remaining 25 percent.

Read more

ShaMaran Petroleum Achieves Strong Growth in Q2 2024

ShaMaran Petroleum Corp. has reported a significant increase in production and revenue for Q2 2024, with gross daily oil production more than tripling and revenue from local sales nearly quadrupling compared to the same period last year. The company has also successfully extended the maturity of its bonds, enhancing its financial flexibility for future growth. Key Financial Results Revenue: US$22.6m (up 246% from 2Q 2023). Net loss: US$509.0k (loss narrowed by 98% from 2Q 2023). Garrett Soden, President and CEO of ShaMaran, commented: “Our two blocks in Kurdistan continue to deliver solid EBITDAX1 and cash flow from local market sales. The recent TAQA/HKN transaction closing will allow us to increase production and local sales at Atrush. With the bond maturity extension in Q2 2024, we now have the strategic flexibility to pursue additional growth opportunities in Kurdistan. Long-term, we look forward to a commercial solution for the restart of exports through the Iraq-Türkiye pipeline.” Corporate Highlights: The closure of the Iraq-Türkiye pipeline (“ITP”) since March 25, 2023, continues to have a material impact on ShaMaran’s operations and financial results. The Company is actively engaging with the relevant parties to resume pipeline exports; In Q2 2024, average gross daily oil production from Atrush and Sarsang combined was 54,800 bopd, more than three times the level achieved in Q2 2023 (18,000 bopd in Q2 2023 from Sarsang only as Atrush was shut in immediately after the ITP closure); As a result of higher production from both blocks, revenue from local sales in Q2 2024 was $22.6 million, approximately three-and-a-half times the $6.5 million delivered during Q2 2023; and In June 2024, the Company retired $47 million of the ShaMaran 2025 bond through a tender process and $5.9 million of its own bonds, and announced bondholder approval for amendments to the bond terms, including a two-year extension of the maturity date to July 2027. Financial Highlights:   ShaMaran generated $15.8 million in operating cash flow during Q2 2024 from local sales (negative $0.7 million in Q2 2023); The Company produced free cash flow before debt service2 of $16.8 million in Q2 2024 (negative $6.8 million in Q2 2023) with tight cost control; EBITDAX has consistently increased since the ITP shutdown, with Q2 2024 EBITDAX at $14.7 million (negative $4.9 million in Q2 2023); Q2 2024 oil sales to the Kurdistan local market averaged a net oil price of $37.80/bbl from the two blocks ($41.28/bbl in Q2 2023 from Sarsang only), 8% lower than Q2 2023; and At June 30, 2024, the Company had cash of $38.7 million and gross debt of $217.7 million (including the $202.1 million bond and $15.6 million related-party loan). Net debt3 was $179 million. At Atrush, production averaged 25,100 bopd in Q2 2024 and remains stable; and At Sarsang, production averaged 29,700 bopd in Q2 2024 due to maintenance activities and facility downtime. Daily rates in late June and early July 2024 have exceeded 36,000 bopd. During Q3 2024, a two-well drilling program will commence that is expected to increase production towards year-end.

Read more

In Iraq's Summer, Residents of Kurdistan's Erbil Ache for Water

 AFP The taps have run dry, and the wells are almost empty. In the capital of Iraq's autonomous Kurdistan region, 80-year-old Babir hasn't bathed in weeks and impatiently waits for trucked-in water deliveries. "There is nothing worse than not having water," said Babir, who gave only his first name, in his modest house in Erbil's Darto suburb. As in several other densely populated areas of Erbil and its suburbs, Babir and his neighbours rely on groundwater as their primary water source. But for years, they have dreaded summer, when relentless drought, a lack of wells and power outages that bring pumps to a halt leave them cut off the supply of water. Usually "we bathe once every fortnight," said Babir, dressed in traditional Kurdish sarwal trousers. From the roof of his house, he shouted for a water truck as it drove up into the street, then hurried downstairs to request a refill for his home. This time, the truck belonged to a local aid group. When such assistance is unavailable, the retiree has to pay from his meagre pension or rely on family for water and other essentials. Over the years, residents of several districts have taken to the streets many times to demand solutions, but Babir said appeals to officials had fallen on deaf ears. He said he was considering moving "to a place with water." -Dried wells Iraq is known in Arabic as the Land of the Two Rivers, referring to the once mighty Tigris and Euphrates. But the rivers' water levels have plummeted and the UN classifies the country as one of the most impacted by some effects of climate change. Authorities blame the drought as well as dams built upstream in neighbouring Türkiye and Iran. Erbil relies on 1,240 wells dotted across the city alongside the Ifraz water station that draws from the upper Zab River, which has its source in Turkey and joins the Tigris in Iraq. Its governor, Omed Khoshnaw, told reporters earlier this month that "more than 25 percent of wells have dried up this year," adding that Erbil should rely less on groundwater. Amid the crisis, the city's local authorities say they have allocated 1.5 billion Iraqi dinars ($1.1 million) to help solve it, including by digging new wells and providing power via generators and the electricity grid. Local official Nabz Abdul Hamid said that power outages have heavily impacted pumps for wells in residential areas. "We have now provided an uninterrupted electricity supply to most of the wells," he told AFP, adding that officials were working to fix the broader problem including by improving the Ifraz plant supply. - 'Radical solutions' In the Darto district, one person skillfully manoeuvred the aid truck's hose as a torrent of water gushed into a tank. A young girl waited to fill plastic bottles while other children joyfully splashed water on their faces, finding relief from the relentless heat. But when it comes to washing, Surur Mohamad, 49, said that for anything more than basic clothes he goes to a nearby village where they have a steady water supply. Trucked-in water from aid organisations "is not a solution," he said, adding that overcrowding has put further pressure on the water system while poor pipe infrastructure has exacerbated the problem. "The government must find radical solutions as relying solely on wells" is no longer viable, especially considering the drought, he said. His neighbour, Mahya Najm, said the lack of water had stopped her children and young families from visiting her. "We cannot wash, cook or even receive guests," she said. "We are in dire need of water. This is not a life," she added.

Read more

Genel Energy First Half 2024 Results

Key Financial Results Revenue: US$37.6m (down 27% from 1H 2023). Net loss: US$21.0m (loss narrowed by 48% from 1H 2023). US$0.076 loss per share (improved from US$0.15 loss in 1H 2023).   KURDISTAN With the ongoing suspension of the export pipeline meaning that the only market available is domestic sales, which are at heavily discounted prices, the Company has worked with its partners to minimise both operational spend and risking of capital, with no new wells drilled so far this year. Gross production for the first half of 2024 was 78,050 bopd, well below what we would expect to produce if exports were available, but significantly higher than the first half last year, which produced minimal volumes after the pipeline was shut at the end of March. The full report of Genel Energy First Half 2024 Results  

Read more

Dana Gas reports a 3% increase in Net Profit to AED 124 million ($34 million) in Q2 2024

 Dana Gas has announced a 3 percent increase in its profit margin for the second quarter of 2024 from the Khor Mor field, along with a $34 million rise in revenues compared to last year. In a statement, Dana Gas highlighted that oil production in the Kurdistan Region reached 37,000 barrels per day, alongside its gas production. Despite facing several attacks in the Kurdistan Region, the company remains committed to completing the 'Kormor 250' project in the Khor Mor field. Dana Gas PJSC, the largest private natural gas company in the Middle East, reported revenues of AED 356 million ($97 million) and net profits of AED 139 million ($38 million) in the first quarter of 2024, down from AED 183 million ($50 million) in the first quarter of 2023. This decline was attributed to lower achieved selling prices of condensates during the first quarter of 2024 compared to the same period in 2023. On April 26, a drone attack on a condensate storage tank in the Khor Mor gas field temporarily halted production. However, production resumed within days after the Iraqi government and the Kurdistan Regional Government took measures to enhance security and defense capabilities in the area. This incident may impact the timeline for the completion of the Khor Mor 250 project, and Dana Gas continues to monitor the situation, promising to disclose further developments as they occur. Established in December 2005 and listed on the Abu Dhabi Securities Exchange, Dana Gas is the first and largest private regional natural gas production company in the Middle East. With operations in Egypt, the Kurdistan Region of Iraq, and the United Arab Emirates, the company boasts proven and probable reserves exceeding one billion barrels of oil equivalent and a daily production rate of approximately 60,000 barrels of oil equivalent. Dana Gas plays a crucial role in the natural gas sector's growth across the Middle East, North Africa, and South Asia.

Read more

UAE’s TAQA sells stake in Kurdistan oil field

On Wednesday, Abu Dhabi National Energy Company (Taqa) has finalized the sale of its 47.4% stake in the Atrush oilfield in Iraq's Kurdistan Region (KRI). The company announced that “the stake was sold to British company General General Exploration Partners via Taqa International B.V., a wholly owned TAQA subsidiary.” At the start of 2024, Taqa agreed to sell its entire stake in the Atrush oilfield to General Exploration Partners, stating that it “had finalized the sales agreements via Taqa International BV, but the deal is still pending approval from third parties.” Taqa is a major integrated utilities provider involved in water desalination, power generation, and oil and gas. The Atrush oilfield near Erbil, in which Taqa holds an interest, produced about 50,000 barrels of oil equivalent per day by the end of 2019. Active in various global regions, the company focuses on renewables and infrastructure, with recent investments in subsea power cables and water reservoirs, and is exploring new opportunities in Uzbekistan.

Read more

Water stops the oldest oil field in Garmian

After more than a year of controversy and suspension of work due to mixing water with oil, the Turkish company finally stopped oil production in the field (Chia Surkh) in Garmian, on the order of the Ministry of Natural Resources. This is the oldest field in the region, which is located within the jurisdiction of the Patriotic Union of Kurdistan (PUK). Before the shutdown, the field produced 1,500 to 2,000 barrels of oil per day.

Read more

All Contents are reserved by Draw media.
Developed by Smarthand