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DMEA: Iraq stays the course broad range of companies, ranging from majors
Iraq may be a key Middle Eastern oil producer, such as BP, Royal Dutch Shell and France’s Total,
but after years of conflict and under-investment, to mid-sized players such as Neptune Energy,
it lacks the refining capacity to meet domestic Chrysaor and Premier Oil and smaller inde-
fuel demand. As a result, it typically chalks up a pendents like Deltic Energy, Independent Oil &
$2.5bn annual bill for imports of gasoline, diesel Gas (IOG) and Corallian Energy.
and other key oil products. Meanwhile, OGA, the country’s upstream
The country has a number of new refining regulator, says it is holding off on further rounds
projects in the works, but many of them are at an for a while, while the government reviews its
early stage of development. In fact, given the eco- licensing policy to ensure it aligns with climate
nomic crisis Iraq is facing, these schemes seem goals – namely, the UK’s pledge to make its
more like a wish list than a concrete programme economy net-zero in carbon emissions by 2050.
for developing the sector. The British government does still expect oil and
However, the country is making tangible pro- gas to play a key role in energy security over the
gress in some areas. Last month it hired Japan’s coming decades, so it is trying to ensure that the
JGC to build various new processing units at the country produces enough fossil fuels to meet OGA, the UK’s
Shuaiba oil refinery for $3.75bn. In late August, future demand, without compromising on its
Iraq’s Oil Ministry also ordered the capacity of climate goals. upstream
the Sumood refinery to be raised to 140,000 bar- Over in Norway, state-owned Equinor has regulator, is
rels per day (bpd) within months, from 75,000 suffered setbacks at the Johan Castberg oilfield
bpd at present. At a later stage, its output will in the Barents Sea, one of its largest ongoing holding off on
reach 280,000 bpd. upstream projects. The company has encoun-
The plant was significantly damaged during tered problems with the hull of the floating pro- further offshore
the ISIS invasion and occupation, and again duction, storage and offloading (FPSO) unit that
when it was retaken by Iraqi forces. Iraq plans to has been installed at the field. There are issues licensing rounds
restore its output by modernising and repairing with the hull’s welding, and errors have been for a while
its processing trains. found in the analysis programme used to test
Meanwhile Baghdad has not given up on fatigue.
longstanding plans to build a $8bn petrochemi- Corrective work could mean that the project,
cal complex in Nibras. The Oil Ministry said on currently due on stream in 2023, falls behind
August 31 that a final agreement on the venture schedule.
with Royal Dutch Shell would be signed before
the end of the year, despite market challenges. If you’d like to read more about the key events shaping
Europe’s oil and gas sector then please click here for
If you’d like to read more about the key events shaping NewsBase’s EurOil Monitor.
the downstream sector of Africa and the Middle East,
then please click here for NewsBase’s DMEA Monitor. FSU: Navalny, Novichok, Nord Stream 2
The poisoning of Russian dissident Alexei Nav-
Europe: UK licensing awards alny has placed Germany in a difficult position.
The UK has offered for award some 113 licences For years, the government of German Chan-
to 65 companies in its latest offshore licensing cellor Angela Merkel has been a staunch sup-
round. The winners of the round included a porter of Russia’s Nord Stream 2 pipeline.

P8 www. NEWSBASE .com Week 35 03•September•2020