Iraq forms three new oil companies

01 October 2013

Oil Ministry establishes subsidiaries to provide services

Iraq’s Oil Ministry has established three new subsidiaries to provide services for the sector, including two companies to operate the country’s oil and gas pipeline infrastructure.

The Oil Services Company has been formed with a capital of ID100bn ($85.8m) to manage the drilling and maintenance operations at Iraq’s wells.

The Oil Pipeline Company for Crude Oil Transportation has a capital of ID300bn and is intended to operate crude pipelines, pumping stations and storage depots. Its responsibilities also cover export terminals, according to Oil Ministry spokesman Asim Jihad, along with the pipeline network feeding Iraq’s power plants.

Working in parallel with the oil transport company is Pipeline Company for Gas Transportation, with another ID200bn in capital, which will operate and maintain dry gas and liquid petroleum gas (LPG) links and storage terminals.

No reason has been given for creating the new firms and it is unclear how they will work alongside the Oil Ministry’s existing organisations such as Iraqi Drilling Company and the Iraq Oil Pipelines Company, which have similar remits.

The ministry, which has acted as both the regulator and operator of the country’s oil sector, has a number of subsidiaries established to carry out its operating functions. The authority has been calling for the re-establishment of the Iraq National Oil Company (INOC) to resume the role of operator, leaving the ministry with a purely policy and regulatory role.

Iraq oil sector structure
BodySectorFunction
Oil MinistryAllRegulator and operator of oil and gas sector since 1987
Iraq National Oil CompanyAllMerged with Oil Ministry in 1987; proposal to re-establish the company has been with parliament since 2007
South Oil CompanyUpstreamOil and gas production in Basra, Dhi-Qar and Muthanna provinces
North Oil CompanyUpstreamOil and gas production in Baghdad, Kirkuk and Ninevah provinces
Missan Oil CompanyUpstreamOil and gas production in Missan province
Midland Oil CompanyUpstreamOil and gas production in Anbar, Babil, Diyala, Diwaniya, Karbala and Wasit provinces
North Gas CompanyGas processingDevelopment and utilisation of associated gas reserves in northern Iraq
South Gas CompanyGas processingDevelopment and utilisation of associated gas reserves in southern Iraq
Basra Gas CompanyGas processingJoint venture between South Gas Company, UK/Dutch Shell Group and Japan’s Mitsubishi to capture and use associated gas from southern oil fields
Iraq Oil Pipelines CompanyMidstreamOperation and maintenance of nation-wide oil and gas pipeline network
Oil Pipeline Company for Crude Oil TransportationMidstreamOperation and maintenance of crude pipelines, pumping stations, storage depots, export terminals and pipeline network feeding Iraq’s power plants
Pipeline Company for Gas TransportationMidstreamOperation and maintenance of dry gas and liquid petroleum gas pipelines and storage terminals
North Refineries CompanyDownstreamOperation and maintenance of Baiji, Seniyah, Kasik, Kirkuk and Qayara refineries
South Refineries CompanyDownstreamOperation and maintenance of Basra, Thi-Qar and Missan refineries
Midland Refineries CompanyDownstreamOperation and maintenance of Daura, Najaf, Haditha, Diwaniya and Khanaqin refineries
Oil Exploration CompanyExplorationOil and gas exploration activities in Iraq outside of blocks awarded to international oil companies
Iraqi Drilling CompanyDrillingProvision and operation of drilling rigs
Oil Services CompanyOil servicesManagement of drilling and maintenance operations at Iraq’s wells
Oil Products Distribution CompanyMidstreamDistribution of oil products
State Oil Marketing OrganisationMidstreamMarketing of oil products
State Company for Oil Projects (Scop)ProjectsActs as client for major oil and gas schemes
Source: MEED

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