Oil Daily | Iraq's Geo-Jade Deal Boosts Output Amid OPEC Tension; OPEC Considers July Production Hike

【Oil-Producing Countries Dynamics】

Iraq has signed a deal with Geo-Jade Petroleum to expand production at the Tuba oil field, build a refinery, power plants, and a petrochemicals facility. The agreement will boost Iraq’s oil production, with Chinese firms managing a significant portion of its reserves. Tensions arise as Iraq exceeds its OPEC quota.

The OPEC alliance is discussing another production increase for July, with options including a 411,000-bpd hike. Saudi Arabia aims for long-term stability, enduring short-term price pain, affecting U.S. shale producers. No final decision on July production levels has been reached yet.

【Company News】

India's ONGC reported a 35% drop in profits due to higher exploration costs. The company plans to diversify into refining, petrochemicals, LNG trading, and renewables. ONGC aims to invest $11.5 billion in green energy and is in talks with Exxon, Shell, and BP for deepwater block development.

Chevron confirmed a fire injuring 17 workers on its Benguela Belize Lobito Tomboco platform in Angola. Emergency operations are underway for a missing worker. The platform is crucial for Chevron, and the incident raises concerns over deepwater safety protocols.

【Industry News】

Indonesian gas producers signed a multi-party swap agreement to secure gas supply in Western Indonesia. The deal involves redirecting domestic gas while selling overseas volumes. Rising gas demand and falling production prompt Indonesia to replace diesel with LNG in power plants.

SSE in the UK is reducing renewables spending by $2 billion in its five-year plan due to a changing macro environment. The company warns it may not meet its goal of 50 TWh renewable generation by 2030. This reduction affects Britain’s clean energy ambitions.

【Others】

Russia's Rosneft acquired the license to develop the Tomtor rare earths deposit in Siberia, following President Putin's urging. The deposit is one of the world's largest and is considered strategic. This move could advance development of critical and rare earth metals.

Solar power generation globally could surpass nuclear output for the first time this summer. Solar generation jumped 34% in early 2025, driven by China and Europe. However, negative power prices in Europe discourage investments, highlighting the need for energy storage solutions.

Continental Resources estimates 6.1 billion barrels of shale oil reserves in Turkey’s Diyarbakr basin. Turkey is boosting natural gas production from Black Sea operations, with Sakarya Gas Field expected to meet household energy needs by 2028.