Thursday, September 13, 2007
Iraq may offer S. Korea favourable terms for oilfield development
Oil
(Earth Times) - Iraq may offer South Korea enhanced terms for developing an oil field because of Korea's work in reconstruction. The Korea Information Service reports the possible favorable terms for the Halfaya field near Amara, Iraq, were discussed during a meeting in Dubai between Oil Minister Hussain al-Shahristani and Kim Young-joo, South Korea's minister of commerce, industry and energy.S hahristani was in Dubai attending an Iraq oil conference.
Halfaya has an estimated 3.8 billion barrels of oil reserves, and Iraq wants it to produce 200,000 barrels per day. Shahristani said South Korea may draw down the bidding qualifications for the field because of the support South Korea has given to Iraq oil and reconstruction development efforts. The Korea National Oil Corp. had signed a contract in 1997 for the field. There were a handful of contracts signed by Saddam Hussein. Shahristani has said that those the government recognizes as still valid will be renegotiated under terms set by a proposed federal oil law.
Labels: Halfaya field, Hussain al-Shahristani, Kim Young-joo, Korea National Oil Corp., South Korea
Friday, April 13, 2007
Iraq targets 3 million bpd 2007 oil production
Oil, South Korea
(Reuters) - Iraq hopes to raise oil production by nearly 1 million barrels per day (bpd) this year, achieving its long-held target of 3 million bpd by restoring northern exports, its oil minister said on Thursday. Iraq has struggled to overcome the sabotage and outdated infrastructure that has hobbled its production since the U.S.-led invasion of 2003, largely due to unrelenting attacks on a key pipeline that runs north through Turkey. It has regularly fallen short of production and export targets aimed at restoring pre-war levels.
"Iraq wishes to exceed producing 3 million barrels a day in 2007 -- this is achievable by repairing the northern pipeline that connects to the Mediterranean," Hussain al Shahristani told Reuters after a meeting with South Korean energy officials. Iraq produced 1.97 million bpd in March, up from 1.89 million bpd in February, a Reuters survey shows, but Shahristani said last December that 2006 production averaged 2.3 million bpd.
Despite the weak production figures, exports climbed last month to 1.62 million bpd, the highest since last September, on increased shipments from the southern Basra oil terminal, shipping sources said. Shahristani said the country was targeting oil production of more than 4 million bpd in 2011. Shahristani was in Seoul to sign a cooperation deal with South Korea's energy minister Kim Young-joo on broadening opportunities for South Koreans to secure oilfields in Iraq, anxious to inject new investment into the ailing industry.
In 1997, state-owned Korea National Oil Corp. (KNOC) and Iraq's oil ministry under Saddam Hussein signed a preliminary deal to develop the Halfaya oilfield, estimated to hold up to 3.8 billion barrels of reserves and produce 250,000 bpd. The South Korean energy ministry said the deal was never followed through due to United Nations financial sanctions against Iraq. But Iraq will "positively consider" involving South Korea in the field once oil legislation is in place, according a memorandum of understanding signed by the two sides on Thursday.
Iraq issued invitations for 15 Arab, Asian and American firms to drill 100 oil wells in the country's south as part of efforts to boost production, the oil ministry said earlier this month. "It is achievable to pass the [draft oil] law within two months since all political parties are in favor," Shahristani said. The law will also restructure the Iraq National Oil Company (INOC) as an independent holding firm and establish a Federal Council as a forum for national oil policy.
"Iraq wishes to exceed producing 3 million barrels a day in 2007 -- this is achievable by repairing the northern pipeline that connects to the Mediterranean," Hussain al Shahristani told Reuters after a meeting with South Korean energy officials. Iraq produced 1.97 million bpd in March, up from 1.89 million bpd in February, a Reuters survey shows, but Shahristani said last December that 2006 production averaged 2.3 million bpd.
Despite the weak production figures, exports climbed last month to 1.62 million bpd, the highest since last September, on increased shipments from the southern Basra oil terminal, shipping sources said. Shahristani said the country was targeting oil production of more than 4 million bpd in 2011. Shahristani was in Seoul to sign a cooperation deal with South Korea's energy minister Kim Young-joo on broadening opportunities for South Koreans to secure oilfields in Iraq, anxious to inject new investment into the ailing industry.
In 1997, state-owned Korea National Oil Corp. (KNOC) and Iraq's oil ministry under Saddam Hussein signed a preliminary deal to develop the Halfaya oilfield, estimated to hold up to 3.8 billion barrels of reserves and produce 250,000 bpd. The South Korean energy ministry said the deal was never followed through due to United Nations financial sanctions against Iraq. But Iraq will "positively consider" involving South Korea in the field once oil legislation is in place, according a memorandum of understanding signed by the two sides on Thursday.
Iraq issued invitations for 15 Arab, Asian and American firms to drill 100 oil wells in the country's south as part of efforts to boost production, the oil ministry said earlier this month. "It is achievable to pass the [draft oil] law within two months since all political parties are in favor," Shahristani said. The law will also restructure the Iraq National Oil Company (INOC) as an independent holding firm and establish a Federal Council as a forum for national oil policy.
Labels: Halfaya oilfield, Hussain al-Shahristani, INOC, Iraq National Oil Co., KNOC, Korea National Oil Corp., South Korea
