Gulf countries are pressuring the U.S. and Israel to avoid attacks on Iranian oil facilities, fearing retaliation against their own oil infrastructure. Iran has warned Saudi Arabia that it cannot ensure the safety of Saudi oil sites if Israel strikes Iran, and Saudi Arabia has refused to let Israel use its airspace for such attacks.

Key Concerns:

• GCC countries, including Saudi Arabia, Qatar, and the UAE, are alarmed by Israel’s threats to target Iran's energy and military sites.
• The U.S. is working to prevent Israel from attacking Iranian oil facilities to avoid escalating tensions in the region.
• Gulf nations fear retaliatory attacks on their oil facilities, similar to the 2019 Aramco drone strikes, which disrupted 5% of global oil supplies.

Diplomatic Efforts:

• Saudi Arabia is engaging with Iran to demonstrate neutrality in the conflict. Recent talks have involved high-level meetings between Saudi and Iranian officials.
• Iran has warned Gulf countries that allowing Israeli use of their airspace for strikes would be considered an act of war.

Regional Stance:

• Saudi Arabia, the UAE, and Qatar have refused to allow Israeli aircraft or missiles to pass through their airspace.
• These Gulf states are distancing themselves from Israel to avoid being dragged into conflict, especially amid growing tensions following the Gaza war.

Oil Market Impact:

• OPEC has the capacity to compensate for lost Iranian oil, but attacks on Saudi or UAE oil sites could destabilize global markets further.
• Gulf nations are hopeful that their diplomatic efforts will keep their oil facilities safe from potential attacks.

Source: Reuters

At Connectly.24, we are thrilled to share some exciting updates that mark a significant milestone in our journey. As we continue to grow and evolve, we are expanding our footprint and service offerings to better serve our clients across the region.

New Locations

To enhance our accessibility and support, we are proud to announce the opening of new offices in key locations:

• Head Office in Basra: Located at Zubair, Safwan Road, Near Albahrya Police Checkpoint, our new Basra office will serve as the central hub for our operations in Iraq.
• Erbil Office: Situated at Nishtiman St., Justice Tower, 5th Floor, Office 16, this office will bolster our presence and capabilities in northern Iraq.
• Dubai Office: Positioned at Dubai Silicon Oasis, DDP, Building A1, our new Dubai location will support our growing operations in the UAE and the broader Middle East region.

Expanded Services

We are excited to offer an expanded range of services designed to meet the evolving needs of our clients:

• Civil Engineering and Pipelines: Our team is now equipped to handle complex civil engineering projects and pipeline installations, ensuring precision and quality.
• Supply of Drilling and Workover Operations Materials: We provide comprehensive solutions for drilling and workover operations, supplying high-quality materials to support efficient and effective operations.
• Drilling and Completion Materials: Our new offerings include specialized drilling and completion materials, essential for successful project execution.

In addition to these new services, we continue to offer our expertise in tendering, contracting, and public relations within the oil and gas sector. Our commitment to excellence in these areas remains unwavering.

Registered and Certified

Connectly.24 is officially registered with IDC and the Central Government under Registration No. 000087552. This certification underscores our adherence to industry standards and our dedication to providing top-notch services.

We invite you to connect with us and explore how our expanded services and new locations can benefit your projects. Stay tuned for more updates as we continue to grow and innovate!

For more information or to get in touch with our new offices, please visit our website or contact us directly.

#Connectly24 #NewLocations #ExpandedServices #CivilEngineering #OilAndGas #Dubai #Basra #Erbil

Iraq continues to solidify its position as a major force in the global energy market with several significant crude oil projects. Below is a detailed look at the key projects and developments scheduled for the coming years.

Major Projects and Capacity Expansions:

1. Majnoon Field
2. Operator/Investor: Basra Oil Company
3. Additional Capacity: 200 thousand barrels per day (b/d)
4. Announced Start Date: End 2023
5. Notes: Shell exited field ownership in 2018.
6. West Qurna-1 Field
7. Operator/Investor: ExxonMobil and Basra Oil Company
8. Additional Capacity: 330 thousand b/d
9. Announced Start Date: 2028
10. Notes: Iraq awarded a drilling contract to Schlumberger, but delays are expected due to disputes and uncertainties.
11. Zubair Field
12. Operator/Investor: ENI
13. Additional Capacity: 50 thousand b/d
14. Announced Start Date: End 2024
15. Notes: Future expansions will require more water injection.
16. Ratawi Field
17. Operator/Investor: TotalEnergies
18. Additional Capacity: 130 thousand b/d
19. Announced Start Date: 2025
20. Notes: Field expansion is part of TotalEnergies' $27 billion deal with Iraq, finalized in July 2023.
21. Eridu Field
22. Operator/Investor: Lukoil
23. Additional Capacity: 250 thousand b/d
24. Announced Start Date: 2028
25. Notes: Pilot phase will produce 30,000 b/d from 2025 to 2028, with peak production target set for 250,000 b/d.
26. Fields in Dhi Qar Province
27. Operator/Investor: Dhi Qar Oil Company (DQOC)
28. Additional Capacity: 310 thousand b/d
29. Announced Start Date: 2028
30. Notes: Ongoing negotiations with Chevron for exploration and development. No progress as of September 2023.
31. West Qurna-2 Field
32. Operator/Investor: Lukoil
33. Additional Capacity: 330 thousand b/d
34. Announced Start Date: 2030
35. Notes: Capacity expansion includes Yamama reservoir. Pilot project began in 2021, producing 30,000 b/d as of October 2023.
36. Missan Cluster (Bazergan, Fakka, and Abu Gharb Fields)
37. Operator/Investor: China’s CNOOC
38. Additional Capacity: 100 thousand b/d
39. Announced Start Date: November 2022
40. Notes: CNOOC expanded the Missan Cluster’s capacity to 300,000 b/d in November 2022.
41. Faihaa Crude Oil Processing Facility
42. Operator/Investor: China’s United Energy Group
43. Additional Capacity: 100 thousand b/d
44. Announced Start Date: H2 2024
45. Notes: Located near the Iran border, plans include expanding Faihaa field capacity from 50,000 b/d to 130,000 b/d.

Economic Impact and Future Prospects

The planned expansions and developments in Iraq's oil fields underscore the country's critical role in the global energy market. These projects not only aim to increase production capacity but also address technological and logistical challenges, such as water injection requirements and the integration of advanced drilling techniques.

Challenges and Considerations

While these projects present significant opportunities, they also come with challenges, including political instability, regulatory delays, and the need for substantial infrastructure investments. The ongoing negotiations and potential delays highlight the complex landscape in which Iraq operates.

Conclusion

Iraq's ambitious plans to expand its crude oil production capacity reflect its commitment to maintaining and enhancing its position in the global energy market. By overcoming existing challenges and successfully executing these projects, Iraq can ensure sustained economic growth and stability, reinforcing its pivotal role in the global energy sector.

Sources

• Middle East Economic Survey
• FACTS Global Energy Services
• Rystad Energy
• Al Arabiya News
• Company Websites

Iraq stands as a pivotal player in the global energy market, underpinned by its vast oil reserves and significant production capabilities. With confirmed oil reserves ranking fifth globally at 145 billion barrels, Iraq's influence on global energy dynamics is substantial.

Major Oil Reserves and Production

Iraq is a key member of the Organization of the Petroleum Exporting Countries (OPEC), ranking second in crude oil production within the organization, only behind Saudi Arabia. On a global scale, Iraq stands sixth in the total production of petroleum liquids. The country's major oil fields are primarily located in regions such as Basra, Diyala, and Kirkuk, which are critical hubs for its oil extraction and export activities.

Economic Dependency on Oil Exports

The Iraqi economy is heavily reliant on oil exports, which constitute about 95% of its revenue. In 2022, Iraq's oil export revenue soared to $131 billion, up from $92 billion in the previous year. This significant increase underscores the centrality of oil to Iraq's economic health and its role in the global energy market.

Political and Legislative Landscape

Despite forming a consensus government after the parliamentary elections in 2021, Iraq faces challenges in the timely enactment of legislation and budget approvals. These delays can hinder major energy projects and impact the country's ability to fully leverage its oil resources for economic growth and stability.

Infrastructure and Development Needs

To maximize its energy potential, Iraq must address ongoing challenges in budget approvals and infrastructure development. Enhancing infrastructure is crucial for boosting production capacity and ensuring efficient export operations. Investments in infrastructure will also help Iraq better handle the technical and logistical demands of its vast oil industry.

Global Energy Influence

Iraq's substantial oil reserves, estimated at over 140 billion barrels, position it as a key global energy player. Its ability to influence global oil prices and supply dynamics is significant, given its production capacity and export volume. As the world's energy landscape continues to evolve, Iraq's role remains crucial in maintaining the balance and stability of global oil markets.

In conclusion, Iraq's vast oil reserves and its significant role in OPEC highlight its importance in the global energy market. However, to fully harness its potential, Iraq must address legislative delays and infrastructure challenges. By overcoming these obstacles, Iraq can ensure sustained economic growth and continue to be a major force in the global energy sector.

Sources

• U.S. Energy Information Administration (EIA)
• BP Statistical Review of World Energy