Iraq Starts Expansion of Shinafiyah Refinery 

An Iraqi flag is seen at an oilfield. (Reuters)
An Iraqi flag is seen at an oilfield. (Reuters)
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Iraq Starts Expansion of Shinafiyah Refinery 

An Iraqi flag is seen at an oilfield. (Reuters)
An Iraqi flag is seen at an oilfield. (Reuters)

Prime Minister Mohammed Shia al-Sudani announced on Saturday the beginning of the Shinafiyah refinery expansion in Al Diwaniyah in southern Iraq. 

During his visit to the province, the PM confirmed the government will to develop the oil sector and complete the projects that meet the needs of the people.  

The Iraqi News Agency cited Sudani as saying: "Designs have been put in place for the expansion of Shinafiyah refinery, which will increase the production capacity of the refinery from 20,000 to 90,000 barrels per day, in addition to a refining unit with a capacity of 70,000 barrels per day."  

He stressed that he directed that production be compatible with environmental requirements.  

The Prime Minister stated that this increase would help in reducing the import of gasoline and gas oil, and the provision of surplus quantities of liquid gas and fuel oil products, which have a significant economic return.  

“The project will also provide up to 3,000 job opportunities, to employ local manpower," he added.  

According to shipping data, Iraq also increased exports to Europe by more than 20 percent in the past five months.  

European refiners have found themselves oversupplied with crude as an expected shortage owing to the looming EU ban on Russian oil has yet to materialize.  

Iraq, OPEC's second-largest producer behind Saudi Arabia, has been pumping about 4,652,000 barrels of crude a day this year. It plans to increase oil production to eight million barrels per day (BPD) by the end of 2027. 



Chevron Announces First Oil at Ballymore Project in Gulf of Mexico  

The logo and trading information for Chevron is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 27, 2022. (Reuters)
The logo and trading information for Chevron is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 27, 2022. (Reuters)
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Chevron Announces First Oil at Ballymore Project in Gulf of Mexico  

The logo and trading information for Chevron is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 27, 2022. (Reuters)
The logo and trading information for Chevron is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 27, 2022. (Reuters)

Chevron has started oil and gas production from a project in the US Gulf of Mexico, the oil major said on Monday, bringing the company a step closer toward its goal of growing production from the ocean basin by 50% this year.

The $1.6 billion project called Ballymore, located about 160 miles southeast of New Orleans, is composed of three wells that are expected to produce up to 75,000 barrels of oil per day.

Chevron aims to grow oil and gas production from the Gulf to 300,000 barrels of oil equivalent per day in 2026, and at the same time, it is working to cut up to $3 billion in costs across the business.

Instead of building a new production platform for Ballymore, the wells will transport oil and gas back to an existing platform, which the company said will allow it to increase production at less expense.

“Ballymore is interesting in that it's a tie-back to an existing facility, which has allowed us to bring production to market more quickly,” said Bruce Niemeyer, president of Americas exploration and production, in an interview.

The project is also Chevron's first in a geological formation of the Gulf called Norphlet, where the oil and gas industry has historically had fewer discoveries than in other parts of the ocean basin, he added.

Advancements in technology are key to expanding resource exploration, such as the use of ocean bottom nodes, which allow geophysicists to collect better data underneath the ocean floor, Niemeyer said.

Chevron is the operator of Ballymore with a 60% interest, while co-owner TotalEnergies has 40%.

Ballymore holds an estimated 150 million barrels of oil equivalent in potentially recoverable resources.

The company owns 370 leases in the Gulf of Mexico and expects to participate in a lease sale this year by US President Donald Trump's administration, Niemeyer said.

The Ballymore start-up comes after Chevron announced first oil in August at Anchor, a Gulf of Mexico project that is a technological breakthrough with the ability to operate in deepwater pressures of up to 20,000 pounds per square inch.