Kuwait Energy starts producing natural gas from field in southern Iraq

Iraq said it had launched commercial production at its Siba gas field in the southern province of Basra in a joint venture with Kuwaiti, Turkish and Egyptian firms. (File Photo: AFP)
Updated 25 April 2018
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Kuwait Energy starts producing natural gas from field in southern Iraq

BASRA: Kuwait Energy PLC started producing natural gas from Siba on Wednesday, the first gas field to be brought on stream in the south of Iraq, an Iraqi oil executive said.
Siba began producing gas at an initial rate of 25 million cubic feet a day (mcf/d), which should rise gradually to 100 mcf/d by the end of the year, said Kareem Abd Oda, the director general of the joint venture established by Iraq and Kuwait Energy to develop the field.
Siba, south of the city of Basra, is producing natural gas and gas condensates, he added.
The other hydrocarbon reservoirs of southern Iraq that are already in operation produce natural gas alongside crude oil.
The gas extracted in several of these fields is burnt off instead of being captured, as the country lacks the capacity to process it into fuel for local consumption or exports.
Energy-rich Iraq is looking to boost oil and gas production with joint ventures with Kuwaiti, Turkish and Egyptian firms, as it rebuilds its economy following years of turmoil, including the takeover of large parts of the country by Daesh in 2014.
The semi-autonomous Kurdistan Regional Government has started producing natural gas from fields in northern Iraq.
Iraq hopes by 2021 to end gas flaring, which costs nearly $2.5 billion in lost revenue for the government and would be sufficient to meet most of its unmet needs for gas-based power generation, according to the World Bank.
Iraq holds on Thursday an auction of oil and gas exploration contracts in 11 blocks alongside the border with Iran and Kuwait and in offshore Gulf waters. The new contracts set a time limit for companies to end gas flaring from oilfields they develop.
Iraq is the Organization of the Petroleum Exporting Countries’ second-largest producer after Saudi Arabia.
Companies including BP, Exxon Mobil, Eni , Total, Royal Dutch Shell and Lukoil helped Iraq expand production in the past decade by more than 2.5 million barrels per day (bpd) to about 4.7 million bpd.
Iraq’s crude exports from its southern region on the Gulf have averaged 3.5 million bpd so far in April, two oil executives told Reuters on Wednesday.
That is higher than the March average of 3.45 million bpd.


White House to host meeting with tech executives on Huawei ban

Details of an easing of the Huawei ban have not yet been released. (Reuters)
Updated 2 min 21 sec ago
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White House to host meeting with tech executives on Huawei ban

  • Intel and Qualcomm declined to comment. Google, Micron, Microsoft and Broadcom did not immediately respond to requests for comment

WASHINGTON: White House economic adviser Larry Kudlow will host a meeting with semiconductor and software executives on Monday to discuss the US ban on sales to China’s Huawei Technologies, two sources briefed on the meeting said.
Treasury Secretary Steven Mnuchin will also attend the White House event, to which chipmakers Inteland Qualcomm have been invited, the people said.
A White House official confirmed the meeting would take place, noting that Google and Micron would attend, but said it had been called to discuss economic matters.
The subject of Huawei was expected “to come up but that it is not the reason why they are convening the meeting,” said the official, who spoke on condition of anonymity.
The future of US companies’ ties to Huawei, the world’s no. 1 maker of telecommunications equipment, remains uncertain after the Trump administration put the company on a blacklist in May, citing national security concerns.

HIGHLIGHTS

• Huawei is the world's number one maker of telecommunications equipment.

• US Treasury Secretary Steven Mnuchin will attend the White House event, to which chipmakers Intel and Qualcomm have been invited, the people said.

The move banned US companies from selling most US parts and components to it without special licenses. However President Donald Trump said last month American firms could resume sales, with an eye on reviving trade talks with Beijing. Several weeks after the announcement, details about what the new policy toward the company is are still not forthcoming.
Commerce Department Secretary Wilbur Ross has said licenses would be issued where there is no threat to national security. Reuters reported that the United States may approve licenses for companies to restart new sales in a matter of weeks.
One of the people briefed on Monday’s meeting said Broadcom was also invited to the White House event. Microsoft was also expected to receive an invitation, the person said.
Intel and Qualcomm declined to comment. Google, Micron, Microsoft and Broadcom did not immediately respond to requests for comment.