Iraq’s oil exports have reached the highest records in decades. Crude oil exports averaged 2.508 million bpd in April 2012 due to the opening of two new floating terminals, easing export constraints. The Iraq Petroleum 2012 Conference will address this recent increase in crude oil exports, in a key session titled ‘Positioning Iraq on the World Energy Map’ led by members of the Iraqi Government, including: H.E. Thamir Ghadban; H.E. Dr Ali Al Dabagh; and H.E. Dr Adnan Janabi.

The Conference receives support from leading industry experts and government officials, as shown by the participation of its distinguished speakers over the years. Speakers for 2012 include: H.E. Dr Rowsch N. Shaways, the Deputy Prime Minister of Iraq; H.E. Thamir Ghadhban, Chairman of the Advisory Commission to the PM of Iraq; H.E. Dr Selahattin Cimen, Deputy Energy Minister of Turkey; H.E. Dr Ali Al Dabagh, Minister of State and Iraqi Government Spokesman; H.E. Dr Adnan Janabi, Chairmen of the Oil & Gas Committee, Iraqi Government.

Iraq Petroleum is an internationally renowned Conference and provides a platform for key government officials and senior executives to network, discuss current issues and promote innovative ideas surrounding Iraq’s oil and gas sector. Taking place 18-20 June 2012 at the Intercontinental Hotel, Park Lane, London, the Conference is considered the annual meeting place for the industry and is an opportunity for national and foreign companies to strategically engage with key stakeholders.

“Iraq Petroleum 2011 was an excellent opportunity to meet and hear the main players in the Iraqi oil sector” Yazdi Merchant from Saudi Aramco

Supported by the industry, sponsors for the event include; Shell, Lukoil, Total, Genel Energy, Gulf Keystone Petroleum, Occidental, Aspect Holdings; General Exploration Partners, Technology Partners, Clyde & Co, Crescent Petroleum, Motorola and Mubadala.

In a step that further builds its resource base in the Kurdistan Region of Iraq, Genel Energy  announced on Monday that it is to acquire a 23 per cent stake in the Bina Bawi exploration licence. The Bina Bawi licence lies alongside the producing Taq Taq oilfield where current potential output is some 80,000 barrels a day and is projected to rise to some 200,000 barrels a day.

Bina Bawi licence covers an area of 246 square kilometres to the east of Erbil. Genel said two of the three wells drilled on the block to date had encountered significant hydrocarbons.

The acquisition will be made through the purchase for $175 million of all of the share capital of A&T Petroleum Company Ltd, current holders of the stake. A&T is wholly owned by Petoil Petroleum and Petroleum Products International Exploration and Production Inc. The deal will be financed from Genel’s existing cash resources.

Genel CEO Tony Hayward said:

“What we are acquiring is very high-quality acreage in an area immediately adjacent to Taq Taq, one of our major established fields which we plan in due course to link by a pipe line to the region’s main export pipeline from Kirkuk to Ceyhan.

“The transaction fits neatly with our strategy of building our Kurdistan resource base through the steady, considered addition of promising acreage.“

Genel said the first well drilled on the block in 2007 on a large surface anticline Bina Bawi-1, had encountered significant shows of 35-degree API oil while drilling through the Cretaceous zone and tested 6 million standard cubic feet of gas a day in the Triassic zone.

The third well, Bina Bawi-3, completed recently by block operator OMV on the same structure, had encountered a gross hydrocarbon column of more than 800 metres in the Jurassic zone. Two Jurassic reservoir intervals tested separately had achieved an aggregate flow rate of more than 4,000 barrels a day of light, 44 to 47-degree API oil.

Genel said a further gross hydrocarbon column, estimated at over 1,000 metres, in the Triassic zone of Bina Bawi-3, remained untested but had confirmed the gas find made in the first well in 2007.

The overall results of Bina Bawi-3 continue to be reviewed, including the evaluation of deeper potential targets in the Triassic reservoirs. Further exploration/appraisal drilling is planned for this year and next, along with an early production test that should start up in early 2013.

“Our estimate is that the Bina Bawi discovery has contingent resources of some 500 million to 1 billion barrels of oil and oil equivalent, with some additional prospective upside,” Hayward said.

On completion of the purchase, which is subject to various consents, approvals and assurances, including from the Kurdistan Regional Government (KRG), Genel Energy will hold a 23 per cent interest in the Bina Bawi production sharing contract, OMV a 36 per cent operated interest and Prime Natural Resources a 21 per cent interest. The KRG will retain a 20 per cent working interest which is carried by the contractors on a pro rata basis.

“Genel Energy is already the biggest oil producer in the region and has one of the strongest reserves base” Hayward said. “This deal enhances that position and confirms our continuing confidence in the immense potential of the Kurdistan Region and our determination to play a leading role in its ongoing development.“

Having received all necessary approvals of the Field Development Plan (FDP) for Barda Rash during November 2011, the Company has commenced the development programme that will initially target approximately 500 million barrels of light recoverable oil out of the independently assessed 1.43 billion barrels total recoverable volume.

Phase I development work is focused on the existing BR-1, BR-2 and BR-3 wells that have been drilled at the field to date. The three wells will be sequentially re-entered, worked over, tested, completed and bought onstream. The wells will be tied back to a modular Early Production Facility that is being installed at the central BR-1 well location. Assembly of the Romfor 23 rig has been completed at the BR-1 well location, and final preparations are being made to re-enter the well.

The Company is on track to commence production at Barda Rash by August, and expects all three wells to be onstream and producing at a rate of between 10,000 bopd to 15,000 bopd by year end. Acquisition of a comprehensive block wide 3D seismic survey has also commenced and is progressing well. The objective of the survey is to provide additional data that will assist in future development planning and well placement combined with enhancement of the Company’s understanding of fracture zone distribution.

Post completion of this initial phase, the Company will commence the drilling and completion of multiple new development wells with the intention of increasing production to a planned trucking capacity of 35,000 bopd and ultimately to a targeted 125,000 bopd by 2017. Following this, the Company will focus on the development and production of the heavier oil resources, which will offer further large scale production growth.

On 17 April 2012, the Company announced that the Simrit-2 exploration well had discovered a significant oil accumulation based on the results of drilling, wireline logs and sidewall core sampling. The objective of the Simrit-2 exploration well was to test the western extent of the Simrit anticline. The well was initially drilled to its prognosed total measured depth of 12,139 ft (12,129 ft true vertical depth) and successfully encountered an estimated 1,342 ft of net oil pay in Cretaceous, Jurassic and Triassic age reservoirs, an estimated 1,024 ft of which is interpreted as containing light oil. No oil water contact has been established in the target reservoirs.

As there were continuing strong hydrocarbon shows to the planned depth of 12,139 ft, Afren and operator Hunt Oil Middle East ran casing at that depth and continued drilling to a new total depth of circa 12,467 ft to test additional zones of prospectivity. Drilling operations are expected to be completed by the end of May, after which a comprehensive well testing programme will be undertaken across multiple reservoir intervals.

Testing operations are expected to take up to two months to complete. Following this, the drilling rig will be mobilised to the East Simrit prospect to drill the Simrit-3 exploration well. Given the scale of the oil column that has been intersected with the Simrit-2 well, the initial volumetric estimates for the Ain Sifni PSC are being updated to incorporate the new data.

Russia’s  is expecting to start exporting from its East Badrah oil field in Wasit [Wassit] province early next year, according to AKnews.

Alexander V Kolomatsky, Project director for the Middle East at Gazprom, said the company had initially planned to reach the 15,000 bpd level by the last quarter of 2013 because the oil field, which is near Iraq’s border with Iran, had to be first cleared of landmines.

But progress in the de-mining work however has led to this figure being pulled forward to early 2013, with 60,000 bpd expected by mid year, and 120,000 bpd by the beginning of 2014.

The field, which has estimated reserves of 100 million barrels of oil, is being developed by Gazprom (30%), Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

Halliburton has won a $95 million contract from Russian state oil producer Gazprom Neft to test and complete 11 wells at its Badra oil field in eastern Iraq, according to the Wall Street Journal.

Gazprom said testing of the first well is scheduled to start in the third quarter of this year. “Production will commence once the final field development plan is completed in 2013,” the Russian firm said.

The field, which has estimated reserves of 100 million barrels of oil, is being developed by Gazprom (30%), Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

Shares in Afren jumped more than 10% in early trading, before falling back slightly, following the company’s announcement that the high impact Simrit-2 exploration well, located on the Ain Sifni PSC in the Kurdistan region of Iraq, has discovered a significant oil accumulation based on the results of drilling, wireline logs and sidewall core sampling.

The objective of the Simrit-2 exploration well is to test the western extent of the Simrit anticline. The well has reached the prognosed total measured depth of 3,700 m (3,697 m true vertical depth). Preliminary analysis of data collected during and following drilling indicates that the well has encountered an estimated 409 m of net oil pay in Cretaceous, Jurassic and Triassic age reservoirs (an estimated 312 m of this pay is interpreted as containing light oil). No oil water contact has been established in the target reservoirs.

As there are continuing strong hydrocarbon shows to the current depth of 3700 m, Afren and operator Hunt Oil Middle East plan to run casing at the current depth and continue drilling to a new total depth of circa 3,800 m to test additional zones of prospectivity.

Once drilling operations have concluded a comprehensive well testing programme will be undertaken across multiple reservoir intervals, after which the drilling rig will be mobilised to the East Simrit prospect to drill the Simrit-3 exploration well. Afren has a 20 per cent. interest in the Ain Sifni PSC and is partnered by Hunt Oil Middle East (60 per cent. and operator) and the Kurdistan Regional Government (20 per cent.).

Osman Shahenshah, Chief Executive of Afren, commented:

“The successful result of the Simrit-2 exploration well represents a second major exploration success for Afren in 2012, following on from the Okoro East discovery offshore south east Nigeria. The scale of the oil column that has been intersected suggests that the Simrit structure and surrounding prospects elsewhere on the Ain Sifni PSC have the potential to be transformational for Afren“.

Iraq’s oil exports from its southern ports have jumped by 190,000 barrels per day (bpd) in April, according to shipping data tracked by Reuters, a sign shipments are heading for another post-war record.

Exports from the Basra oil terminal, Khor al-Amaya, and a new Gulf outlet have averaged 2.11 million bpd in the first 16 days of April, the data showed. Iraq said its southern exports averaged 1.92 million bpd last month.

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Iraq is expected to provide the world’s largest expansion in oil export capacity in 2012 as new outlets open. Analysts said the extra flows, if they continue, could keep a lid on prices, which are trading near $120 a barrel.

“That is substantial,” said Paul Tossetti, an oil analyst at PFC Energy. “It could have a market impact if it’s sustained for the rest of the month.”

Iraq’s supply to the market had been held back for years by a lack of port capacity after decades of war and sanctions.

Oil began loading from a new floating single-point mooring (SPM) platform in the Gulf – the first of several – on March 8. So far in April, the facility has exported four 2 million-barrel shipments, more than in all of March.

The extra port capacity is allowing Iraq to sell more of its increasing oil output. Oil companies such as BP (BP.L) and ENI (ENI.MI) have been working to boost production in Iraq, which holds the third-largest reserves in the Middle East.

Until the new Gulf outlet came into operation, industry sources said companies were having to restrain output at the southern oilfields, because shipments were at the limit of capacity.

Iraq exports the bulk of its crude from southern ports. Shipments of crude by pipeline from the Kirkuk field in northern Iraq to Ceyhan in Turkey usually amount to 400,000 bpd and are expected to remain stable around that level.

If shipments from the south are sustained at around 2.10 million bpd for the rest of April, Iraq will be on course to export about 2.5 million bpd.

That would exceed April’s total of 2.32 million bpd, which Iraq’s State Oil Marketing Organisation (SOMO) said was the country’s highest since 2003, the year of the U.S.-led invasion.

Shipments from the north are sometimes disrupted by technical problems and sabotage, although industry sources say this rarely cuts tanker shipments significantly, because vessels are able to keep loading using oil stored at the Turkish port.

Kurdish militants on April 5 claimed responsibility for blasts on a Turkish oil pipeline that temporarily cut off the flow of oil from Kirkuk.

Iraq’s oil exports are surging this month to record rates that are expected to be sustained for the rest of the year, industry sources said yesterday.

Exports from the country’s southern ports have jumped by 190,000 barrels per day (bpd) so far in April to 2.11 million bpd. Iraq said its southern exports averaged 1.92m bpd last month.

The April export rate suggests shipments overall, including those from the north, will grow by about 300,000 bpd from 2011 as projects deliver more oil from the southern fields of Rumaila, led by BP; West Qurna-1, run by Exxon Mobil; and Zubair, where Eni is in charge.

Iraq signed a Memorandum of Understanding in Baghdad with Royal Dutch Shell to make a technical and economic feasibility study to set up a huge petrochemical plant in Iraq.

“Iraq has a big vision to cope with the big leaps in the oil sector in the coming few years through the use of the natural gas reserves to develop the Iraqi industry and to benefit from these materials to produce the basic materials for the petrochemical industries,” Mohammad Abdullah, undersecretary of ministry of industry for companies affairs, said during the ceremony of signing the memo.

“There is a high level of coordination with the oil ministry regarding providing the raw materials necessary for the petrochemical industries and the nitrogen fertilizers,” he added.

“The project will contribute in offering job opportunities for a large number of people and will

decrease the unemployment rate,” the Iraqi official noted.

Iraq has ambitious plans to develop its huge southern oil fields – potentially the world’s biggest source of new oil over the next few years – and few oil firms dare risk being barred from such a bonanza by angering Baghdad.

Iraq resumed pumping oil via a pipeline through Turkey after a fire resulting from an “act of sabotage” was brought under control, the Iraqi oil ministry said on Thursday.

“The pumping of oil was resumed at mid-day (0900 GMT) at the same rate after the fire was brought under control,” ministry spokesman Assem Jihad told AFP.

Jihad had earlier said an explosion hit the pipeline in Turkey at about 1:20 am (2220 GMT), halting exports.

A high-ranking official in Iraq’s North Oil Company said the pipeline “was exposed to an act of sabotage.”

A statement by the Sirnak regional government in Turkey meanwhile said that three blasts had hit a section of the pipeline running near the border city of Idil, in Sirnak province, sparking a fire.

The blaze was put out at around 0730 GMT, it said, adding that an operation has been launched to find those responsible.

Militants from the Kurdistan Workers’ Party (PKK), which operates in Iraq’s autonomous Kurdistan region and across the border in Turkey, have sabotaged the pipeline several times in the past as part of its armed campaign against the Ankara government.

The pipeline was hit by an explosion in early February inside Turkey, leading to a halt in exports, which resumed via an alternative pipeline.

It has also been repeatedly attacked by Sunni Arab insurgents inside Iraq since the US-led invasion of the country in 2003.

The 970-kilometre (600-mile) pipeline runs from Iraq’s northern oil hub of Kirkuk to the port of Ceyhan on Turkey’s Mediterranean coast, pumping 450,000 to 500,000 barrels of crude oil per day.

Oil sales account for the vast majority of Iraqi government income and around two thirds of gross domestic product.

Most of Iraq’s oil exports are shipped from the south.