Page 8 - MEOG Week 29 2022

MEOG PRICES & PERFORMANCE MEOG

KRG provides Q1 oil sales data

KURDISTAN THE Kurdistan Regional Government (KRG) reaching $1.112bn on account of an $11 per bar-
has issued a report, audited by Deloitte, which rel increase in the realised price of crude. To the
shows that it made a $1.3bn in net oil sales during south, Federal Iraq exported more than 100mn
Q1 this year. barrels during March, with revenues rising to
The figure marks a slight improvement on $11.07bn.
previous quarters, though it is likely to be signif- Referring to missed payments to IOCs for
icantly improved upon in Q2 data. oil sales between November 2019 and February
The report showed that the KRG exported 2020 and the suspension of override payments
nearly 36.5mn barrels of oil until March 31 at from March to December 2020, the report
an average price per barrel of $86.7. A further said: “The net movement in buyer account
2.6mn barrels were consumed locally and were balances during the period was a decrease of
either sold directly, processed by KRG-owned $175,114,220. The resulting total balance owing
refineries or sold to private refineries. from the KRG to buyers at the end of the period
Gross oil sales ran at $3.1bn during the was $3,640,924,825.”
period, with just over $1bn of this passed on to During the full-year 2021, the KRG exported
IOCs that are developing the region’s oilfields. more than 152mn barrels, giving a net income
Daily production fluctuated between a high from oil sales in excess of $3.9bn.
of 401,000 barrels per day in January and 404,000 Meanwhile, as an agreement with Baghdad
bpd in February to 360,000 bpd in March, with remains a distant prospect, lawmakers in Erbil
the drop likely to have been related to the Iraqi last week approved amendments to the region’s
Federal Supreme Court’s decision to brand inde- 2007 oil and gas law, adding Cabinet Secretary
pendent KRG oil exports as “unconstitutional”. Omed Sabah to the Oil & Gas Council, in a move
Despite the fall in daily sales, revenues rose to ignore the Federal court judgement and pro-
by around $115mn from February to March, ceed as independently as it can.™

Halliburton posts improved results

RESULTS SERVICES giant Halliburton announced its Q2 and all but sold out,” he said.
results this week, with the company’s perfor- He pointed to the success and potential
mance benefiting from market dynamics. growth of its artificial lift and speciality chemi-
The company, unencumbered by a $344mn cals offerings.
write-down from the closure of its Russian Highlighting work installing electric sub-
assets, posted a 41% increase in Q2 adjusted net mersible pumps (ESPs) in Kuwait and Oman,
income compared to the first quarter, driven by and trials in Saudi Arabia, Miller noted that there
higher demand for drilling on the back of buoy- is significant upside in the Middle East. “Upon
ant oil prices. completion of trials at the end of the year, we
Halliburton’s completion and production expect pre-qualification to participate in Saudi
division reported margins of 17%, the highest Aramco’s future artificial lift tenders,” he said,
for eight years, as other services firms battle with noting that “Latin America is another successful
supply chain issues. market for our artificial lift business.
Adjusted net income for the quarter rose Halliburton also anticipates the growth of its
to $442mn, up from $314mn during Q1, with speciality chemicals business in the Middle East
shares up by more than 25% on the year so far. through the ramp-up of output at a new facil-
However, a pre-tax charge associated with its ity in Saudi Arabia and through a contract for
departure from Russia saw the company’s net drilling fluids, specialty chemicals and hydraulic
income drop from $263mn to $109mn. The fracturing in Oman.
company’s CEO, Jeff Miller, said that spending Revenues in North America were 26% higher
by international customers is seen growing at a amid greater demand for hydraulic fracturing
healthy pace over the next few years, noting that and well servicing, and Miller said the com-
underinvestment and politics had resulted in pany will look to maintain this momentum.
issues in energy supply security. Noting that Q2 had brought “another step up in
“We expect to benefit more from this mul- both US land rig activity and stages completed”
ti-year upcycle than ever before. This aligns with fracking increasing steadily, he said: “Our
perfectly with our strategy to deliver profitable strategic priority is to maximise value in North
international growth. Turning to North Amer- America by focusing on cash flow and returns,
ica: this market remains strong, steadily growing, not market share.”™

P8 www. NEWSBASE .com Week 29 20•July•2022