Latest news with #IOCs
Rudaw Net
2 days ago
- Business
- Rudaw Net
Kurdistan Region's oil production before, after drone strikes
Also in Opinions Sarsang oil field attack and the Hamrin oil, gas contracts: five key questions Decoding Ocalan's message: The question of PKK disarmament and the future of Kurdish politics Kurdish intellectuals face challenges amid Turkey's Kurdish question The 12-day war and silent transformations of western Asia A+ A- Oil fields in Erbil and Duhok provinces were targeted by explosive-laden drones over two days last week. The attacks on various areas of these two provinces continue, and the number is increasing day by day, despite condemnations from the United States, Iraq, and demands from the Kurdistan Region to stop the attacks. Currently, two-thirds of oil production in the Kurdistan Region has been halted, and companies and the Kurdistan Regional Government's (KRG) natural resources ministry indicate massive damage to oil production infrastructure in the Region. This has had a direct impact on the market, with each ton of oil products becoming approximately $30-40 more expensive. If the current situation continues, prices will rise even higher. Furthermore, total oil production in the Kurdistan Region has declined to 101,680 barrels per day, which is the lowest level of oil production in the Kurdistan Region oil fields since the second quarter of 2015. Before the drone strikes, oil production from 12 oil and gas fields in the Kurdistan Region was 328,000 barrels, including 15,819 barrels of Khor Mor condensate gas. Currently, oil production - excluding gas - has reached 101,680 barrels. These attacks have a very significant impact on the oil and gas sector in the Kurdistan Region, as they come at a time when, since March 2023, all development and new investments by international oil companies (IOCs) in the Kurdistan Region have stopped. Now these attacks have targeted the existing infrastructure of companies and caused reduced production and zero operations by IOCs in Erbil and Duhok. If the Khurmala oil field facilities are again targeted by drones, production levels will certainly reach near zero throughout the Kurdistan Region. The motives behind these attacks are complex and varied. Primarily, they have targeted the oil industry infrastructure of the Kurdistan Region, demonstrating the high technical capability of the attackers and their ability to strike anywhere and anytime, regardless of the consequences. Another point is that oil and gas fields in the Kurdistan Region still lack adequate protection systems, which is why the impact of these attacks has caused major economic consequences and significant damage to the industry. Even the Shekhan oil field, operated by the British company Gulf Keystone, decided to halt oil production due to security risks, though it has not yet been targeted. The 70 percent reduction in oil production not only harms oil companies and the Kurdistan Region's revenues from this sector, but also will directly impact oil refineries and prices of oil products, especially gasoline, in the coming days if a solution is not found quickly. Currently, except for Khurmala and Sarqala oil fields, oil production has been halted in all other oil fields in the Kurdistan Region, and it is unclear when companies will resume oil production. Mahmood Baban is a research fellow at the Rudaw Research Center. The views expressed in this article are those of the authors and do not necessarily reflect the position of Rudaw.
Zawya
7 days ago
- Business
- Zawya
Egypt settles $1bln in arrears to IOCs: Madbouly
Arab Finance: The Egyptian government has paid more than $1 billion of its debts to international oil companies (IOCs) operating in the country, Prime Minister Mostafa Madbouly announced. Madbouly added that the state plans to settle an additional $1.4 billion before the end of this year. The move aims to reduce financial burdens and increase the local production from national fields and resources, instead of relying on imports. He also affirmed Egypt's ability to secure energy, lauding its success in bringing liquefied natural gas (LNG) vessels into service, as they are connected to the national gas grid. The prime minister noted that there are three vessels in Ain Sokhna, but they are not operating at full capacity. However, they will meet the state's needs in case of any unexpected problems that could cause a disruption to Egyptian gas resources. Two additional vessels are scheduled to arrive soon at the Alexandria Port and the Jordanian Port of Aqaba, as an additional emergency measure for the summer. In a meeting with key ministers on July 13 th, Madbouly followed up on the procedures for securing the financial allocations required for the petroleum products needed to operate power plants. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Iraq Business
15-07-2025
- Business
- Iraq Business
APIKUR Welcomes Intensified Talks to Resume Oil Exports
By John Lee. The Association of the Petroleum Industry of Kurdistan (APIKUR) has welcomed it described as renewed and intensified negotiations between the Kurdistan Regional Government (KRG) and the Government of Iraq (GoI) aimed at resuming oil exports via the Iraq-Türkiye Pipeline (ITP). The statement follows a high-level meeting held on 12th July 2025 between International Oil Companies (IOCs) operating in the Kurdistan Region - including APIKUR members - and representatives of both the KRG and GoI. During the meeting, IOCs reaffirmed their readiness to immediately resume oil exports once binding agreements are signed that ensure: Payment certainty for future exports, consistent with each company's existing, legally valid contracts; A mechanism for settling outstanding arrears, to be agreed individually with each company; Transparent and prompt payments, either in cash or via in-kind transfers of crude oil entitlements. Full statement from APIKUR: Member companies of the Association of the Petroleum Industry of Kurdistan (APIKUR) are pleased to note that the negotiations between the Kurdistan Regional Government (KRG) and the Government of Iraq (GoI) have intensified to reach agreement to resume of oil exports via the Iraq-Türkiye Pipeline (ITP), with the goal to do so in the near term. Ahead of these discussions, APIKUR member companies and representatives of other International Oil Companies (IOCs) active in the Kurdistan region of Iraq participated in a meeting on July 12, 2025 with officials from the KRG and the GoI. In this meeting, IOCs reiterated that they are prepared to immediately resume exports through the ITP once binding agreements are in place that ensure payment certainty for such exports which reflect each IOC's existing, legally valid contractual terms as well as resolution of the outstanding payment arrears to be agreed with each company. All payments to be made promptly and transparently in a manner acceptable to the IOCs and the KRG, either in cash or through the transfer of their entitlement share of oil " in kind. " " APIKUR member companies stand ready to resume exports as soon as written agreements are executed that honor our existing contracts which are governed by international law, " said Myles B. Caggins III, spokesman for the Association of the Petroleum Industry of Kurdistan. " APIKUR has always firmly held that our members' production sharing contracts must be honored in every respect and members have never participated in any meetings with any governmental body suggesting otherwise. " (Source: APIKUR) Tags: Association of the Petroleum Industry of Kurdistan (APIKUR), Ceyhan, cg, featured, Genel Energy, GKP, Gulf Keystone Petroleum, Iraq Oil Exports News, Iraq Oil Production News, Iraq-Turkey Pipeline (ITP), Iraq-Türkiye Pipeline, KRG, Kurdistan News, Ministry of Oil, oil contracts, oil revenues, Turkey, Turkiye
Yahoo
09-07-2025
- Business
- Yahoo
Exxon's Profit Took a $1.5 Billion Hit Last Quarter. Is the Oil Stock Still Worth Buying?
Exxon expects that its earnings will decline by $1.5 billion in the second quarter. The oil giant will likely still post industry-leading profitability. It expects its earnings to grow meaningfully by 2030, even if crude prices don't improve. 10 stocks we like better than ExxonMobil › ExxonMobil (NYSE: XOM) recently provided investors with a sneak peek at its second-quarter financial results. The oil giant revealed that it expects its profit to decline by $1.5 billion compared to the first quarter, primarily due to weaker oil and gas prices. That profit slump likely has some investors wondering whether it's an ominous sign for the oil stock's future. Here's a look at whether ExxonMobil remains a good investment despite declining profits. In a recent regulatory filing, Exxon noted that it expects its upstream oil and gas production segment will see a more than $1 billion hit from lower oil prices and a nearly $1 billion impact from weaker gas prices. On a more positive note, the company anticipates that higher refining margins will boost its earnings by about $300 million. Overall, the company expects its profits to fall by around $1.5 billion compared to the first quarter. It will officially report its second-quarter financial results on Aug. 1. While the expected drop is a lot of money, Exxon will still post a very profitable quarter. The oil giant reported $6.8 billion of upstream earnings in the first quarter and $7.7 billion of total profit. That total led all international oil companies (IOCs) in the period. For comparison, Chevron reported $3.5 billion in earnings while Shell's adjusted earnings were $5.6 billion. Exxon also led IOCs in cash flow from operations ($13 billion) and shareholder distributions ($9.1 billion, including a sector-leading $4.8 billion of share repurchases). So, while Exxon expects its earnings to decline in the second quarter, it's still likely to deliver industry-leading financial performance. A big contributor to Exxon's leading profitability is its structural cost savings program. Since 2019, Exxon has stripped $12.7 billion in costs out of its business, which is more than all other IOCs combined. It cut $600 million in costs during the first quarter alone. Exxon has also benefited from its focus on investing in its advantaged assets, places like the Permian and Guyana, which have low costs and high profit margins. While ExxonMobil expects its profits to dip in the second quarter, it anticipates a reacceleration in the coming years even if oil prices don't recover. Last December, the oil giant unveiled its plan to 2030. That strategy aims to deliver the growth potential of $20 billion in earnings and $30 billion in cash flow by 2030 compared to 2024's baseline. That implies compound annual growth rates of 10% (earnings) and 8% (cash flow). Exxon can achieve that growth assuming crude oil averages around $65 per barrel (it was recently around $70 per barrel). Exxon expects two catalysts to fuel its earnings growth plan. A core aspect of its strategy is to continue pouring capital into developing its advantaged assets. The company plans to invest around $140 billion in the coming years into major capital projects and its Permian Basin development program. Exxon expects to generate returns of more than 30% over the life of those investments. Its capital spending plan will grow its higher-margin production, which will help boost its profitability. For example, the company is in the process of starting up 10 key projects this year, which have the potential to deliver more than $3 billion of incremental earnings in 2026. In addition, the oil company expects to continue delivering structural cost savings. It aims to achieve a total of $18 billion by 2030. The company has outlined several strategies to achieve this target, including streamlining its business processes, optimizing supply chains, and upgrading its information technology and data management systems. The oil giant's plan to boost its profitability and cash flow should enable it to grow shareholder value. Exxon should be able to continue increasing its dividend (it has raised its payout for 42 consecutive years) and repurchasing stock. Exxon's earnings will fluctuate from quarter to quarter due to commodity price volatility. However, the company expects its earnings to grow significantly over the coming years as it executes its investment plan and cost-saving initiatives. That long-term growth puts Exxon in an excellent position to continue creating shareholder value, making it look like a great stock to buy and hold despite the current dip in its earnings. Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $695,481!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $969,935!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Matt DiLallo has positions in Chevron. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy. Exxon's Profit Took a $1.5 Billion Hit Last Quarter. Is the Oil Stock Still Worth Buying? was originally published by The Motley Fool
Rudaw Net
06-07-2025
- Business
- Rudaw Net
All Kurdish oil exports to be handed over to Baghdad: Source
Also in Iraq Solutions for Erbil-Baghdad disputes reached, talks to continue: Iraqi parliament PM Barzani, Iraqi parliament speaker discuss budget disputes KRG accuses Baghdad of evading responsibility on drone attacks Baghdad says 'unacceptable' for KRG to blame drone attacks on PMF A+ A- ERBIL, Kurdistan Region - The Kurdistan Regional Government (KRG) is set to deliver its official response to Baghdad on Monday concerning a key draft agreement that could restart Kurdish oil exports, signaling that a resolution to the long-standing oil revenue dispute may be within reach. A source close to the KRG, speaking to Rudaw on condition of anonymity due to the sensitivity of the discussions, confirmed that the proposed arrangement is "in its final stages." Under the deal, the "KRG will hand over all crude oil produced to Baghdad. In return, the Iraqi federal government will be responsible for supplying the Kurdistan Region with its domestic needs for refined petroleum products,' the source added. Oil exports through the Iraq-Turkey pipeline have been suspended since March 2023, following an arbitration ruling in Paris that found Turkey had violated a 1973 pipeline agreement by enabling Erbil to independently export oil. Last week, Kurdistan Region Prime Minister Masrour Barzani stated that the halt has resulted in more than $25 billion in lost revenues for the KRG. Key demands In February, the Iraqi parliament amended the federal budget law to include a provision for a $16-per-barrel fee to cover production and transportation costs for international oil companies (IOCs) operating in the Kurdistan Region. The amendment also called for the joint appointment of an international consultancy within 60 days to audit those costs. A representative of one of the IOCs told Rudaw on Wednesday that the companies officially submitted their feedback and proposals to the KRG, which has passed it on to Baghdad. The companies insist that the $16-per-barrel compensation "be valid for 90 days while the consultancy firm' to be assigned, 'completes its review,' and that "existing contractual terms remain unchanged and that financial entitlements be calculated based on contractual percentages rather than fixed sums." Another key demand by the IOCs is that "a party - either Baghdad or Erbil - be clearly designated as responsible for paying more than $900 million in outstanding debts to these companies." Production capacities Moreover, Iraq's federal budget law requires the KRG to hand over 400,000 barrels of oil per day (bpd) for its monthly financial share. The first source added that Baghdad has recently been informed that "the Region's current production capacity is closer to 280,000 bpd.' The source added that an Iraqi oil ministry delegation is expected to visit the Kurdistan Region, noting that their mission will be twofold: "to determine [the Kurdistan Region's] actual production levels and to assess the Region's needs for products such as kerosene, gasoline, and diesel." Initial estimates suggest that the KRG requires "between 50,000 and 55,000 barrels of oil per day for its refineries to meet domestic demand," the source explained. Of note, the draft agreement is being shaped in consultation with the Shiite-led Coordination Framework in Baghdad, which backed Prime Minister Mohammed Shia' al-Sudani to premiership. However, the prime minister is personally overseeing negotiations. In late May, tensions between Erbil and Baghdad escalated after the federal finance ministry halted all transfers to the KRG, claiming that it exceeded its 12.67 percent share of the 2025 budget. The freeze has suspended salary payments for over 1.2 million KRG public employees, drawing strong criticism from Kurdish political parties, who say the move is unconstitutional. If the draft agreement is approved and partial funds are released, salary payments could resume as early as Tuesday, offering critical relief to the Region's civil servants. Hastyar Qadir contributed to this article.
