Latest news with #DragonOil
The National
3 days ago
- Business
- The National
Why solving Iraq's gas problem is crucial for its economy and environment
It was a week of good, bad and ambiguous news for Iraq's natural gas industry. What stood out is the fact that solving its gas problem is the single most feasible and effective thing the government could do for its economy, environment and quality of life. But meddlesome forces stand in the way. On the good side, Iraq signed an agreement with US oil services giant SLB (formerly Schlumberger) to develop the Akkas field on the Syrian border, a large but geologically challenging resource. Iraqi prime minister Mohammed Shia Al Sudani inaugurated two new gas processing plants in the Basra province, including one at the Faihaa field, in which Dubai-based Dragon Oil is a partner. And US-based HKN agreed to expand oil and gas output from the Hamrin field in the Salahaddin province. In May, HKN had been awarded a contract to develop the Miran gasfield, while compatriot Western Zagros signed terms for Topkhana. These are two of the largest undeveloped gas accumulations in the Kurdistan region and, indeed, the whole of Iraq. And Sharjah-based Crescent Petroleum is moving ahead with work on Chemchemal, another large gasfield in Kurdistan, while it completes work to expand its long-standing Khor Mor field. Agreement signalled that a logjam between the two main Kurdish political parties had been broken – the Kurdistan Democratic Party, which controls the capital Erbil, the oil sector and most of the government, and the smaller Patriotic Union of Kurdistan, which holds the gasfields themselves and territory through which pipelines have to run. On the bad side, drones launched by unidentified assailants struck several oilfields in the semi-autonomous Kurdistan region. Fortunately, and probably by design, no one was killed or injured, and the damage to facilities seems to be limited. But most of the region's oil output has now been closed down as a precautionary measure. One of the two initial targets was the Sarsang field, operated by HKN. The company has been one of the most vocal in pressing its rights in Baghdad, and bringing US political pressure to bear. These bombings are the most widespread and clearly targeted assault on the Kurdish petroleum sector so far. Earlier attacks were sporadic, and mostly consisted of unguided rockets aimed at Khor Mor. One strike killed four workers at the field in April last year, the only deadly incident known of this campaign. Iran-aligned armed groups are well-understood to be the culprits, which used Iranian-model drones, though they denied responsibility. Their aims seem to be to attack American interests, deter alleged ties of the Kurdistan region with Israel, prevent competition to Iranian gas supplies to Iraq, and keep up pressure on Mr Al Sudani's government as it seeks a workable arrangement with Erbil and as federal elections in November loom. In the ambiguous category is Turkey's decision to exit the treaty governing the Iraq-Turkey oil pipeline when it expires next July. The pipeline has been shut anyway since March 2023 when an arbitral judgment went against Turkey. But the main sticking point since then has been the need for an accord between the Kurdistan region and the federal authorities in Baghdad over the rules for oil export, the responsibility for sales, the distribution of revenue, and the contractual position of the oil companies operating in Kurdistan. Ankara seems to favour replacement of the treaty with a more expansive agreement covering gas and electricity as well as oil. That could be good news for facilitating Kurdish gas exports finally, after a decade of discussion. But Turkey is playing a complicated game, including balancing tensions within Iraq, its interests in Syria, which include gas supply and electricity investments, and its gas trade with Russia, Iran and European neighbours. Iraq has struggled to provide adequate electricity to its people since the 1990-91 Gulf War and particularly following the botched US occupation after 2003. This creates discontent as people swelter through ever-hotter summers without adequate air-conditioning. It holds back the development of an economy beyond oil. In turn, a large part of the electricity problem stems from the failure to supply enough gas. Iraq is the world's third worst flarer of unused gas from oil production, behind only Russia and Iran. This causes local pollution and massive greenhouse gas releases. Yet it burns more than 300,000 barrels per day of extra oil for power generation in the summer, causing further pollution and wasting fuel that could be exported. Gas capture has increased in the past few years, but oil production has also grown, so the flaring problem has hardly diminished. Iraq's fast-rising population means the gas and electricity deficits do not narrow either. Supplies of Iranian gas and electricity, vital to help fill the gap, have become increasingly unreliable because of US sanctions and Iran's own worsening shortages. The US has devoted significant diplomatic effort to solving this mess, with mixed motives including the noble – promoting Iraqi stability, well-being and the environment – and the more self-interested, including its campaign against Iran, and boosting the prospects of American companies. The optimal development of gas in Kurdistan and the rest of Iraq is the key that would unlock several other doors. It could foster a more constructive relationship between Baghdad and Erbil. It would improve Iraq's economy and help it move on from over-reliance on oil exports, by providing reliable energy for industry. It is plausible that it would not even harm Iran. Tehran cannot meet its supply commitments to Iraq anyway, because of its own shortfall and because of US sanctions. Its exports to Turkey too are coming under increasing strain. If Iran overcame these problems, Iraq would be ready to continue buying its gas: domestic Iraqi, including Kurdish, supplies will not be enough for years to come, so great is the deficit and the pent-up demand. Turkey would gain from a greater pool of gas which it can combine with its own burgeoning supplies, to on-sell to Europe. Europe too would be aided in its attempts to eliminate its remaining fraction of Russian gas imports. Brussels' lack of realpolitik and its allergy to hydrocarbons unfortunately prevent it from playing the active role it should. Gulf, European, Turkish and American companies may be able to tread a path between Baghdad, Erbil and Ankara. But first, the shadowy figures behind the drone swarm need to be stopped.
Iraqi News
23-05-2025
- Business
- Iraqi News
Iraq's Dhi Qar Oil Company signs HOA with KBR, Dragon Oil
Baghdad ( – In a significant move aimed at bolstering Iraq's oil production capabilities, the Dhi Qar Oil Company has signed a Heads of Agreement (HOA) with a consortium of international energy firms. The coalition includes the United States' KBR, the UAE's Dragon Oil, and Iraq-based Al-Hurra International. The agreement, announced by Basem Mohammed Khudair, Undersecretary of the Ministry of Oil for Extraction Affairs, marks a strategic step toward the development of the Abu Amood and Al-Subba oil fields, located in the Dhi Qar Governorate in southern Iraq. Khudair stated that this HOA will serve as the foundation for further negotiations with the participating companies. The Abu Amood and Al-Subba fields are considered pivotal to Iraq's plan to expand its southern oil output and attract foreign investment into its energy sector. With this move, the Iraqi Ministry of Oil signals its commitment to leveraging international expertise and investment to revitalize underdeveloped fields and boost national production. The collaboration with well-established international partners like KBR and Dragon Oil is also expected to bring in advanced technology and project management practices, contributing to more efficient and sustainable field development.
Hi Dubai
28-04-2025
- Business
- Hi Dubai
Dragon Oil Strengthens Global Energy Leadership with New Strategic Agreements
Dragon Oil, owned by the Government of Dubai, has reinforced its global expansion drive by signing a series of major agreements and Memorandums of Understanding (MoUs) at GOTECH 2025, positioning itself for stronger leadership in the international energy sector. Key deals include a collaboration with Business Oil Africa to develop oil and gas assets in Gabon and a new concession agreement with Egypt's EGPC for petroleum exploration and exploitation in the East El-Hamd Area. Dragon Oil also signed an MoU with Qorum to fast-track digital transformation and improve operational efficiency. Furthering its commitment to innovation, the company partnered with Baker Hughes Corva and Exebenus to pilot artificial intelligence solutions for drilling management. It also agreed to collaborate with BGP to adopt advanced seismic survey technologies and AI applications, while a reconciliation agreement was signed with Turkish Petroleum Corporation (TPAO). Commenting on the agreements, Dragon Oil CEO Ali Rashid Al Jarwan said the partnerships reflect the company's strategic vision of smart expansion, investment in digital innovation, and solidifying its role as a trusted energy partner globally. The move underlines Dragon Oil's ongoing efforts to embrace technological advancements, enhance competitiveness, and drive sustainable growth in an increasingly dynamic global energy landscape. News Source: Emirates News Agency
Trade Arabia
26-04-2025
- Business
- Trade Arabia
Dragon Oil signs strategic energy project deals with top firms
Dragon Oil, a fully owned entity of Dubai government, has signed a series of strategic agreements and MoUs with leading global players including Baker Hughes, Egyptian and Turkish Petroleum as part of its global expansion strategy. These deals, inked at the GOTECH 2025 expo in Dubai, were aimed at reaffirming the group's commitment to global expansion and strengthening its position in the energy sector. The signed agreements include: •Collaboration with Business Oil Africa to develop oil and gas assets in Gabon. •Award of a new concession agreement with the Egyptian General Petroleum Corporation (EGPC) for petroleum exploration and exploitation in the East El-Hamd Area. •A Memorandum of Understanding with Qorum to accelerate digital transformation and enhance operational efficiency. •Partnership with Baker Hughes Corva and Exebenus to pilot Artificial Intelligence (AI) solutions in drilling operations management. •Collaboration with BGP to leverage cutting-edge seismic survey technologies and AI applications. •A reconciliation agreement with Turkish Petroleum Corporation (TPAO). Speaking on the occasion, CEO Ali Rashid Al Jarwan said: "The signing of these agreements reflects our strategic vision for smart expansion, investment in digital innovation, and solidifying our position as a trusted partner in the global energy sector." "We are committed to building strong partnerships that drive sustainable growth and support future transformations," stated Al Jarwan.
Gulf Today
17-04-2025
- Business
- Gulf Today
Agenda for the 7th GOTECH 2025 technology conference unveiled
The organizing committee for the GOTECH 2025 technology conference revealed the official agenda for the seventh edition of the conference during a press conference in Dubai. The event will be held from April 21 to 23, 2025, under the patronage and presence of His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Supreme Council of Energy in Dubai. GOTECH is one of the most prominent conferences in the oil and gas sector, and this year's theme is: 'Towards a Digital and Sustainable Future of Energy.' Global leaders, innovators, and experts will gather to explore the future of energy under one roof. The event is organised in partnership with the Society of Petroleum Engineers (SPE) and Dragon Oil, providing a dynamic platform to explore the changing challenges and opportunities within the energy sector. The press conference was attended by representatives of participating organizations and sponsors, as well as experts and specialists in the energy and technology sectors, alongside local and international media. The Honorary President of the Organizing Committee, His Excellency Engineer Ali Rashid Al Jarwan, CEO of Dragon Oil, fully owned by the Government of Dubai, said in his speech: 'The patronage of His Highness Sheikh Ahmed Bin Saeed Al Maktoum of this event emphasizes the importance of supporting digital transformation and innovation in the energy sector, as well as artificial intelligence applications. It also strengthens Dubai's position as a global hub for knowledge and technology in this field. While we celebrate the 25th anniversary of Dragon Oil's establishment, we find ourselves at a pivotal moment for the energy sector. The decisions we make today will shape the future of our sector for generations to come. GOTECH 2025 provides an exceptional platform to exchange ideas and innovation, pushing the boundaries of what is possible in both digital transformation and sustainability. It is a unique opportunity to discuss the next generation of technologies that will address new challenges and seize opportunities in the changing energy landscape.' Al Jarwan also expressed deep appreciation for the vision of His Excellency Saeed Mohammed Al Tayer, MD& CEO of Dubai Electricity & Water Authority (DEWA) and Dragon Oil Chairman, and his continuous support for sustainable and digital transformation efforts, emphasizing that this vision aligns with the aspirations of the leadership, especially His Highness Sheikh Mohammed Bin Zayed Al Nahyan, President of the UAE, and His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in supporting innovation and the development of the energy sector in line with the future ambitions of the UAE. Michelle Boyd, General Manager of Events at the Society of Petroleum Engineers, stated, 'The energy sector is undergoing unprecedented transformations, and it's essential to address both the technical and human aspects. GOTECH 2025 provides a unique opportunity for sector leaders and innovators to discuss the intersection of technology, sustainability, and talent development. This event will provide invaluable insights into how innovation can drive a cleaner, more sustainable energy future.' The agenda includes discussions on topics such as: Panel 1: Harnessing the Power of Digital Transformation Panel 2: Talent and Skills Development in the New Energy Landscape Panel 3: Accelerating the Energy Transition: A Deep Dive into Low-Carbon Technologies Panel 4: Maximizing Recovery from Mature Assets: Innovative Strategies and Technologies Panel 5: Fostering Diversity, Equity, and Inclusion in the Energy Sector. The conference will also feature specialized technical sessions, including: Enhancing mature field production using analytics and machine learning; Digital transformation in the oil and gas industry Artificial intelligence, renewable energy, and advanced drilling and production technologies. Cybersecurity: The event will also include workshops, including one focusing on offshore operations excellence through technology, innovation, and sustainability. Additionally, a dedicated university platform will give students opportunities to interact with industry leaders, speakers, and exhibitors, while showcasing their projects and research on energy, innovation, and digital technologies. The accompanying technology exhibition will showcase products and solutions from over 48 exhibitors transforming the energy sector, offering attendees a chance to engage with innovators and explore how digital transformation and sustainability are shaping the future of energy. The Society of Petroleum Engineers (SPE) is a non-profit professional organization with more than 132,000 members in 146 countries, working in oil and gas exploration and production. SPE is a leading source of technical and professional knowledge, providing opportunities for knowledge exchange through events, publications, and interactive programmes. The event will take place next week in Dubai, under the theme 'Empowering the Future of Energy through Digital Transformation, Innovation, and Sustainability.'
