BP


BP, Eni “interested in Majnoon Oilfield”

By John Lee.

Reuters has reported that both BP and Eni have expressed an interest in developing the giant Majnoon oilfield, which Shell plans to exit next year.

Iraqi oil officials told the news agency that Iraq’s Ministry of Oil has not yet started negotiations with either company.

BP is currently developing the Rumaila field, while Eni operates Zubair.

Shell is expected to hand over Majnoon operations to the state-owned Basra Oil Company by the end of June 2018.

Both Chevron and Total have been previously reported as being interested in taking over the field.

(Source: Reuters)

Baghdad “Looks to Take Control of KRG Oil”

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

The Iraqi State Organization for Marketing Oil (SOMO) announced Nov. 2 that it is arranging with Turkey to allow SOMO to sell Iraqi crude from the disputed territories through the pipeline from Kirkuk to the Ceyhan Turkish port.

The Kurdistan Regional Government (KRG) used to export about 500,000 barrels per day independently through Ceyhan before the Baghdad operation to retake the disputed areas in mid-October.

It was not long after the Iraqi army took over the oil fields in Kirkuk in a military operation to “impose security,” as described by Prime Minister Haider al-Abadi, that the federal government resumed oil pumping operations.

The operations started about a week after the clashes between governmental forces and Kurdish peshmerga forces. Meanwhile, the Ministry of Oil rushed to increase oil production, and on Oct. 23, the ministry requested the help of the British petroleum company BP in increasing production in Kirkuk oil fields to more than 700,000 barrels per day. The ministry also announced the formation of a ministerial committee to advance the oil industry in the province of Kirkuk.

Kirkuk has more than 35 billion barrels in oil reserves and a production capacity ranging from 750,000 to 1 million barrels per day. The federal government seems determined to control the oil sources, especially in Kirkuk and the disputed areas. In light of this, on Oct. 19, the Iraqi minister of oil warned all countries and international petroleum companies against signing contracts with any Iraqi party without first consulting the federal government.

Rosneft in the Kurdish Region: Moscow’s Balancing Act

By Ahmed Tabaqchali. Originally published by Iraq in Context; re-published by Iraq Business News with permission. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Between February 2017 and mid-October, Rosneft signed a number of deals with the Kurdish Regional Government (KRG) that established for it, and by extension for Russia, a major position as both an investor and stakeholder in the Kurdish Region of Iraq (KRI)’s hydrocarbon resources and infrastructure.

The move was interpreted, especially by the KRG, as implicit support for the KRG in its bid for independence, especially in light of the latest deal signed following the reassertion of Iraq’s federal control over Kirkuk and other disputed territories. While there is an element of truth to this thinking, the deals are part of a wider geopolitical positioning for Russia as a major gas supplier to Europe and as an emerging power in the Middle East.

The deals provide Rosneft, and by extension Russia, effective control of the KRG’s Oil & Gas infrastructure, and a controlling stake in the region’s finances in more ways than one.

Within the oil space it has established this in three ways. The first was by providing USD 1.5bn in financing via forward oil sales payable over 3-5 years. This would be payable in kind from the KRG’s exports, until recently at about 550,000-600,000 barrels per day (bbl/d). However, the loss of the Kirkuk fields takes away about 430,000 bbl/d of production or eventually about half of the KRG’s exports.

This leaves the KRG with a tiny revenue stream after payments to International Oil Companies (IOC)’s, from which to make payments on forward oil sales of up USD 3.5 bn including Rosneft’s USD 1.5bn. A complicating factor is the repayment of other KRG debt, estimated at over USD 21bn by end of 2017, which will have to be factored into debt payment sustainability.

Opportunity for UAE Business: Key Iraqi Ministers come to Conference

Rebuilding Iraq is central to the agenda of the Iraq Britain Business Council (IBBC) autumn conference at The Address, Dubai Marina on 12th November.

The opportunity for businesses in the region to engage in Iraq is reflected by the attendance of a number of high profile Iraqi Ministers: from Electricity, Transport, Oil, Construction and Housing, to the Governor of Basrah and International financiers, including the IMF and World Bank.

Vikas Handa, the IBBC UAE representative agrees:

“Iraq is the second largest oil producer in OPEC and has one of the biggest programmes for new power generation projects in the region; Iraq presents massive opportunities for housing, Infrastructure and FMCG businesses. The event is designed to discover the opportunities and projects live and intended in Iraq, for business people to meet the decision makers, to obtain insights and to network”.

UAE is increasingly seen as the regional hub for corporate operations in Iraq and the place where business decisions are determined.

We can confirm this as a range of leading international companies are attending, including GE, Siemens, BP, Wood, Serco, Shell, Petronas, Gulftainer, Zain, KCA Deutag, the International Islamic Bank and more. There will also be plenty of networking and engagement on the sidelines beyond the main stage.

The IBBC Dubai conference is also the location for the Governor of Basrah to outline his vision for the future, and it is expected ministers will outline the latest thinking on the evolving situation in Iraq and the opportunities this brings.

To register, please follow the link: http://www.webuildiraq.org/ibbc-conference/autumn-conference/

(Source: IBBC)

Luaibi asks BP to Return to Kirkuk Oilfields

By John Lee.

Iraqi Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) has asked UK-based BP to develop the disputed Kirkuk oilfields.

The move comes just a day after Baghdad regained control of the area from Kurdish forces. Control of the field remains split between the Kurdistan Regional Government (KRG) and Baghdad’s North Oil Company (NOC).

According to the Financial Times, BP’s chief executive Bob Dudley said before lunchtime yesterday that he had not yet heard from the Iraqi oil minister, but indicated the company could be interested.

(Sources: Ministry of Oil, Financial Times)

British Businesses Training and Educating in Iraq

By Ashley Goodall.

Is the UK overlooking a key USP for British International businesses?

Education and training footprint of British companies around the world has a significant and excellent impact on communities and economies and is often taken for granted.

As the UK ramps up its trade rhetoric and a ‘Global Britain’ emerges, one of the key benefits that British companies bring is being overlooked: Education and training…

The penny dropped for me as I attended a meeting of the Iraq Britain Business Council (IBBC) members to find that one after the other, each company was committed to the concept of a learning organisation that are locally integrated. Not only are British companies employing as many local people as possible, but also training them to deliver increasingly complex managerial and technical roles.

Oil and gas companies, Shell and BP in particular, deliver an extraordinary amount of training in Iraq alone. The effect on the local communities and national economies is a massive injection of know-how and a source of social stability, development, prosperity and economic progress, let alone the transformative power training confers on individuals, families and communities.

Not only are our companies a source of prosperity, but when partnered with UK Universities offer a double whammy for the delivery of global standards and expertise that  few countries can match in country and via external courses, such as delivered by Oxford Brooks and Northampton Universities.

Emerging economies appreciate this expertise, as it raises business operations to global standards and enables them to compete with the best, to encourage inward investment and generate employment opportunities in their regions.

Oil and Power companies in particular make a big social impact on their suppliers. Osama Kadhum Managing Director of Ratba’ contracting in Iraq says his staff received 3885 hours of training in Majnoon Oilfield from Shell alone, ensuring the highest technical and supervisory standards are applied.

GE power likewise employ over 90% of local staff, often sent for technical training in USA or x for 6-12 month stretches supporting local recruitment , diversity of employees, and women for increasingly leadership and supervisory roles. Shell in Iraq train over 7,900 local staff in Basra for whom they are delivering over 200,000 training days per year. BP and its Partners are developing the Rumaila field which is supported by a 93% Iraqi workforce.

Around 2,400,000 training hours have been delivered to staff in a variety of technical disciplines, core skills, leadership and safety.  And these figures do not include community initiatives such as an extensive community vocational training programme that has been running for 3 years, or 400 women from a remote community that have been trained in the Rumaila funded Qarmat Ali Women’s Training Centre.

In Baghdad Serco have set up an ATC Academy for Air traffic Controllers. Multiply this scale of training globally in just Iraq and you begin to see the scale and quality of training that British companies deliver among International, Emerging and Frontier markets.

More widely Rolls- Royce has committed an ambitious plan to reach 6 million people worldwide through their STEM (Science, Technology, Engineering & Maths) education programmes between 2014- 2020. This bold target will encourage a more creative and engaging outreach through the company’s supply chain, through the wider STEM sector and to inspire society to attract talented young people from around the world to the world of STEM.

Businesses are often castigated by the media, but the reality is that they are usually a force for good, prosperity and ultimately stronger communities. So let’s celebrate the important impact British companies’ commitment to education and training brings to millions of people and their ability to change the world.

Ashley Goodall is a martketing consultant to Iraq Britain Business Council (IBBC).

IBBC holds Successful Inaugural Dubai Networking Event

The Iraq Britain Business Council (IBBC) has held its first major networking event in Dubai, to accommodate the demand from its members, who operate from Dubai as a regional business hub.

Vikas Handa, the IBBC UAE Representative said over the last few years UAE has emerged as the hub for companies doing business in Iraq, prompting IBBC to open a representative office in Dubai. “I am delighted with the turnout of over 90 delegates, which was more than double the expected attendance,” he said. UAE Ministry of Economy, British Consul General and oil, gas and infrastructure majors attended.

Sponsored by Amec Foster Wheeler, the event brought together leading oil, gas and power companies as well as Infrastructure corporations. Key speakers included Zaid Elyaseri, Country Manager of BP Iraq and Mr Zohdee Mohd Faiz of Petronas who addressed the audience. Delegates were also generally engaged with discussing several business opportunities and the chance to learn from each other.

A key insight to emerge was from the UAE Ministry of Economy representative Miss Hindi Al Youha, who announced that an Iraqi delegation from the Iraqi industry ministry would be visiting UAE in September to follow up on collaboration between the regions.

IBBC will be holding its Autumn Conference at The Address Hotel, Dubai Marina on 12 November which will be attended by International Monetary Fund (IMF) and World Bank focusing on business in Iraq post ISIS, rebuilding Iraqi infrastructure as well as the latest opportunities in Oil & Gas sector.

Should anyone wish to attend the conference or any future IBBC events, please contact London@webuildiraq.org

CONTACT: Christophe Michels (IBBC Managing Director): 020 7222 7100;

E-mail: London@webuildiraq.org; Website: www.webuildiraq.org

If you are based in the Gulf and Dubai please contact Vikas Handa directly at: Vikas.handa@webuildiraq.org

(Source: IBBC)

IBBC Networking Reception in Dubai

On Tuesday 1 August, 2017, the Iraq Britain Business Council (IBBC) will hold its first networking event in Dubai.

The event follows the appointment of Vikas Handa (pictured) as IBBC UAE representative. Vikas intends to host regular networking events in the UAE for IBBC members and companies that are interested in working in Iraq.

Since last year IBBC has committed itself to have a stronger presence in the UAE which is generally seen as the major platform for international business operating in Iraq.

IBBC participated in ADIPEC in 2016 and successfully organised its first conference in Dubai in December of the same year. The organisation is now set to further expand its activities in the United Arab Emirates to bolster trade with Iraq at this crucial time for the country and the wider region.

The event will be held at the Dubai World Trade Centre. It is sponsored by Amec Foster Wheeler and several IBBC members, including Petronas and BP, will make informal comments about their operations in Iraq. IBBC Deputy Chairman and Iraq Representative, Mr Rasmi Al Jabri and IBBC Managing Director, Mr Christophe Michels, will be in attendance.

Companies that are not part of IBBC but would like to learn more about business opportunities in Iraq can register their interest in attending this event by emailing london@webuildiraq.org

(Source: IBBC)

Ratba’a Contracting joins IBBC, seeks JVs with UK Firms

Ratba’a Contracting Company has just joined the Iraq Britain Business Council (IBBC).

Ratba’a is an Iraqi Company based in Basra and Baghdad and is owned by Haj Aboud Al Khlaidy & Sons Group.

The group works to deliver projects in key sectors such as oil and gas (currently Shell, Petronas and BP are major clients), infrastructure and distinctively, the agricultural technology market for greenhouses.

Ossama A. Kadum, Managing Director, explained on a visit to the IBBC Cumberland Lodge weekend retreat that:

“Ratba’a are on the look out to collaborate with British companies with strong design and planning expertise and IOC’s for whom Ratba’a can deliver high quality engineering contracts and build projects.”

Mr Kadhum’s staff has a high commitment to training, quality assurance and engineering expertise that has enabled the company to prosper and grow through a difficult macro environment.

Christophe Michels, MD of IBBC said:

“Ratba’s strength in Iraq is their scrupulous adherence to high standards of delivery, which distinguishes them from many local contractors. High standards are something IBBC expects and admires among and for our members. We are very pleased to welcome Ratba’a on board and the value they will add to our members.”

(Source: IBBC)