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Iraq dampens talk of Jordan crude pipeline progress

  • Market: Crude oil
  • 17/04/22

Iraq's oil ministry has poured cold water on prospects of an imminent start to construction of the 1mn b/d crude export pipeline from Iraq to Aqaba in Jordan, saying that the future of the project will be decided not by the current government, but the next government which the country is struggling to form.

"The project is still under technical study and neither has it been awarded, nor has a contract with any party been concluded", the ministry said late Saturday.

This comes just three months after Jordan's energy ministry expressed hope that work on the pipeline could soon begin after the project had secured the backing of the Iraqi government.

But Iraq's oil ministry now says the cabinet has only approved the "strategy and roadmap" for the project's implementation, rather than any binding agreements, and that the next steps towards its implementation will be left for the new government to take, once it is elected and in office.

How long that could take, however, is unclear as the country remains mired in a bitter political deadlock that has seen the government formation process stretch into its seventh month, a good deal longer than it typically takes, with no clear end in sight.

The crude export pipeline would consist of two sections: a 2mn b/d capacity pipeline extending from Basra to Haditha near Syrian border, which would transport oil to Iraqi refineries and power stations. The second would be a 1mn b/d pipeline extending from Haditha to Aqaba in Jordan's south.

The Iraqis and Jordanians had previously agreed to construct the Haditha-Aqaba section on a build, own, operate and transfer (BOOT) basis. But the ministry announced Saturday that the entire project, from Basra to Aqaba, would be built using an engineering, procurement, construction and financing (EPCF) model.

The Iraqi ministry now says the project cost "will not exceed $8.5bn," down from a previous estimate of "below $9bn." Cost and financing has been a major barrier for the project for many years, with both Iraq and Jordan looking for ways to cut expenses.

The Basra to Aqaba pipeline would give Iraq an alternative export route, allowing it to pump crude to the Red Sea and through Suez to Europe and the Atlantic or to Asia, which accounts for the vast majority of its shipments.


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24/07/24

Indian budget lifts spending for refining, crude SPR

Indian budget lifts spending for refining, crude SPR

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Repsol 2Q profit doubles but cash flow turns negative


24/07/24
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24/07/24

Repsol 2Q profit doubles but cash flow turns negative

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Equinor 2Q profit supported by higher European output


24/07/24
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24/07/24

Equinor 2Q profit supported by higher European output

London, 24 July (Argus) — Norway's state-controlled Equinor posted a small rise in profit on the year in the April-June period, as a lift in its European production offset lower gas prices. Equinor reported a profit of $1.87bn in the second quarter, up by 2.2pc on the year but down by 30pc from the first three months of 2024. The company paid two Norwegian corporation tax instalments, totalling $6.98bn, in the second quarter, compared with one in the first quarter. Equinor paid $7.85bn in tax in April-June in total. Its average liquids price in the second quarter was $77.6/bl, up by 10pc from the second quarter of 2023. But average gas prices for Equinor's Norwegian and US production fell in the same period by 17pc and 6pc, respectively. The company noted "strong operational performance and lower impact from turnarounds" on the Norwegian offshore, including new output from the Breidablikk field . Equinor's entitlement production was 1.92mn b/d of oil equivalent (boe/d) in April-June, up by 3pc on the year. The company cited "high production" from Norway's Troll and Oseberg fields in the second quarter, as well as new output from the UK's Buzzard field. But US output slid, owing to offshore turnarounds and "planned curtailments onshore to capture higher value when demand is higher", the company said. It estimates oil and gas production across 2024 will be "stable" compared with last year, while its renewable power generation is expected to increase by around 70pc across the same timespan. Equinor's share of power generation rose by 14pc on the year to 1.1TWh in April-June. Of this, 655GWh was renewables — almost doubling on the year — driven by new onshore wind capacity in Brazil and Poland. "Construction is progressing" on the UK's 1.2GW Dogger Bank A offshore windfarm , Equinor said. It is aiming for full commercial operations in the first half of 2025 at Dogger Bank A — a joint venture with UK utility SSE. Equinor was granted three new licences in June to develop CO2 storage in Norway and Denmark. The Norwegian licences — Albondigas and Kinno — together have CO2 storage potential of 10mn t/yr. The Danish onshore licence, for which Equinor was awarded a 60pc stake, has potential capacity of 12mn t/yr. Equinor has a goal of 30mn-50mn t/yr of CO2 transport and storage capacity by 2035. The company's scope 1 and 2 greenhouse gas (GHG) emissions amounted to 5.6mn t/CO2 equivalent (CO2e) in the first half of the year, edging lower from 5.8mn t/CO2e in January-June 2023. It also incrementally cut its upstream CO2 intensity, from 6.7 kg/boe across 2023, to 6.3 kg/boe in the first half of this year. Equinor has kept its ordinary cash dividend steady , at $0.35/share, and will continue the extraordinary cash dividend of $0.35/share for the second quarter. It will launch a third $1.6bn tranche of its share buyback programme on 25 July. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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23/07/24
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23/07/24

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Iraq begins importing Turkish power to cut crude burn


22/07/24
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22/07/24

Iraq begins importing Turkish power to cut crude burn

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