An American report: Al-Kazemi will discuss concluding 3 agreements during his visit to Washington
Economie 2020/08/18 20:00 980
Baghdad Today - Baghdad
An American report revealed that American companies are negotiating with Iraq to explore for oil, including Chevron, General Electric and Honeywell.
In the details, Chevron Corp is holding talks to invest in a large oil field in Iraq, according to Iraqi officials, as part of a series of potential deals with American companies that indicate confidence in the energy industry in that country despite years of instability and the start of a halt of foreign investment.
Chevron plans, according to the report prepared by the "Wall Street Journal" and the Iraqi government in principle to sign a memorandum of understanding to develop a large Iraqi oil field in the south of the country, according to these officials.
The initial agreement, if completed, could be announced later this week during the new Iraqi prime minister's visit to Washington, where he is expected to meet President Donald Trump on Thursday.
On the sidelines of the visit, US and Iraqi officials also intend to reveal progress toward ending natural gas and energy technology deals with Honeywell, General Electric and Stellar Energy, according to the officials.
Any deal with Chevron will be limited in scope, calling for hundreds of millions of dollars in investment once completed, according to officials.
Executing exploration work in the Nassiriya field
and Chevron’s discussions focus on carrying out exploration work in the Nassiriya field, which is estimated at about 4.4 billion barrels of crude oil, according to people familiar with the matter. This field is not one of the easiest fields to explore in the country, as it requires the kind of complex technologies that can be provided by major international oil companies such as Chevron.
This investment is a bold move by Chevron at a time when the global oil and gas industry is experiencing a deep contraction after the Corona virus pandemic led to a significant decrease in the demand for hydrocarbons, as well as the announcement of the largest companies in the sector about layoffs and cutting capital budgets by billions of dollars.
Chevron said earlier this year it would cut its spending by $4 billion, or 20%. It plans to lay off up to 15% of its employees.
US-Iraqi agreements signed ...
and Al-Kazemi in Washington . The new Iraqi Prime Minister Mustafa Al-Kazemi is scheduled to meet Trump on Thursday to discuss the epidemic, combating terrorism and other issues, including energy cooperation, according to what the White House said.
The Al-Kazemi government also plans to sign temporary agreements with American companies that will help the energy sector in his country, as two billion dollars of natural gas is wasted instead of being redirected to power stations.
Iraqi officials said Washington encouraged the deals, seeing them as a way to reduce Iraq's dependence on supplies from other countries, a long-standing demand from the Trump administration.
Iraqi officials revealed that the Iraqis are scheduled to reveal new steps towards concluding contracts with Honeywell to help develop the gas center in the Ratawi field in Basra worth $2.2 billion, and deals with Stellar Energy and GE to rebuild the electricity system. Honeywell, GE, and Stellar did not respond to requests for comment.
Iraq agrees on a deal of two oil tankers with a Norwegian company
In a related context, Iraqi Oil Minister Ihssan Abdul-Jabbar said today, Tuesday, that Iraq has reached an agreement with the Norwegian Batservice Mandal to build ships for the construction of two oil tankers with a capacity of 30 thousand tons each.
Abdul-Jabbar said in a statement that Iraq will receive the two tankers within 18 months, pointing out that the agreement comes within the framework of the ministry's efforts to rebuild the fleet of tankers that have been damaged by decades of war.