Construction & Engineering In Iraq


IOCs discuss Basra’s Oil and Gas Megaprojects

BP, Shell, Basra Gas Company, LUKOIL, Petronas and Chevron discuss Basra’s oil and gas megaprojects

The 5th annual CWC Basra Megaprojects Conference – Oil, Gas & Environment will be held from 9-10 October in Istanbul, Turkey chaired by the EU Ambassador to Baghdad, Ramon Blecau.

In a show of support for the rebuilding of Iraq, Ambassador Blecau and industry experts will highlight the business opportunities available in the resource-rich South of Iraq with the aim of driving more investment to develop the country’s industrial infrastructure.

The conference takes place under the patronage of Basra’s Governorate, Council and oil company and looks to find solutions to the challenges of Basra’s oil and gas megaprojects and increasing Iraq’s oil and gas production, as well as highlighting the upcoming infrastructure projects for: gas, water, electricity and environment. All the major operators will be participating in discussions including: BP, Shell, Basra Gas Company, LUKOIL, Petronas and Chevron.

Further to these discussions, there will be a strong focus on Iraq’s environment and how to build a legislative framework to tackle Basra’s environmental issues; tackling all types of challenges including the demining projects.

New technology will play a significant role in achieving operational excellence in the execution of Iraq’s projects; whilst Iraq’s new generation of workforce are eager to embrace the technologies, the conference will touch upon the training programmes that are imperative for helping Iraqis compete for job opportunities and increase the role of the Iraqi local workforce in the execution of the latest projects.

Water and desalination projects will be the centre of discussion on the second day of the conference as well as the electricity requirements for such projects and ideas for renewable projects in Iraq.

Gas and petrochemical projects will also be covered by industry experts, which will be instrumental in creating new jobs for Iraqis but raise further questions on how the environment can be preserved during these processes. During the conclusion of the Conference, all the available tenders for the new projects will be outlined.

The interactive networking sessions will be at the centre of the conference with great number of functions including the Gala Dinner at the end of the first day of the Conference. The achievements of individuals in environmental technology projects will also be celebrated at the Environmental Awards Ceremony, which will take place during the Gala Dinner with awards being given out by the Iraqi delegation.

We look forward to seeing everyone at the Intercontinental Istanbul from 9-10 of October. To download the latest programme, please visit www.cwcbasraoilgas.com/brochure-download/.

Distinguished Speakers to include:

  • Ambassador Ramon Blecua, Ambassador / Head of Delegation, Delegation of the European Union to Iraq
    • HE Kameran Ali Hassan
    , Deputy Minister of Environment, Ministry of Environment, Federal Government of Iraq
    •       HE Asaad Abdulamir Abdulghafar Al – Idan
    , Governor of Basra, Federal Government of Iraq
    •       HE Engineer Mohammed Al Tamimi
    , First Deputy Governor of Basra, Governorate of Basra, Federal Government of Iraq
    •       Ihsan Abduljabbar Ismaael Al – Saade
    , Director General of the Basra Oil Company, Ministry of Oil, Federal Government of Iraq
    •       HE Dara Reshid
    , Deputy Minister, Deputy Head of Reconstruction Fund for Areas Affected by Terroristic Operations (REFAATO), Ministry of Construction, Housing & General Municipalities, Federal Government of Iraq
    •       HE Ali Dawai Lazem
    , Governor of Maysan, Federal Government of Iraq
    •       Nafaa Abdulsada Ali Al-Hmidawi
    , Director General of Training & Development Office, Ministry of Electricity, Federal Government of Iraq
    •       Mohammed Hashim
    , Director General of Electricity Distribution, Ministry of Electricity, Federal Government of Iraq
  • MP Dr Jamal Abdul-Zahra Muhammadawi, Member of the Parliament Representing Basra, Federal Parliament of Iraq •                   Kevin J. Kveton, Ph.D.Director, Iraq Exploration & Business Development, Chevron  Europe, Eurasia & Middle East Exploration & Production
    •       Zaid Elyaseri
    , Country Manager, BP Iraq
    •       Dr Mark Wharton
    , Development & JV Manager Shell Iraq, Shell EP International Ltd.
    •       Abd Malik Jaffar
    , Iraq Country Chairman, PETRONAS Carigali Iraq Holding B.V.
    •       Yaroslav Okulov
    ,  Financial Director, LUKOIL Mid-East Ltd
    •       Dr Jaafar Oklany
    , Commercial Director, Basrah Gas Company

View the full list of speakers here: http://www.cwcbasraoilgas.com/speaker/

The renowned Conference will address opportunities, projects and tenders in each one of these industries through its 2 day Strategic Programme. Attendees can expect the following topics to be discussed:

  • Current updates on Basra’s oil fields
  • Iraq’s Environment
  • Infrastructure for Upstream Oil & Gas Projects ( Technology Showcasing- upstream activities suppliers, pipelines suppliers, demining technologies, logistics suppliers, security suppliers ) & Training on the New Skillsets
  • Finance, Laws & Regulations & Procurement
  • Water Projects: Increasing Efficiency for the Oil & Gas Projects
  • Electricity Expansion & Renewables for the Oil & Gas Projects
  • Gas & Petrochemicals
  • Energy Tenders Announcements; Downstream, Midstream, Petrochemicals & Electricity projects

View the full programme here: www.cwcbasraoilgas.com/brochure-download/

(Source: CWC)

£9m from UK for Iraqis Refugees

UNHCR supports 130,000 Iraqis taking the first steps on the road to recovery, thanks to funds from the UK Department for International Development

UNHCR, the UN Refugee Agency, completes a year-long series of activities this month, supporting 130,000 vulnerable Iraqis as they take the first steps on the road to recovery, thanks to the generous donation of £9 million from the UK Department for International Development (DFID).

With these funds, UNHCR was able to reach approximately 90,000 people with cash assistance, and support 40,000 people to obtain the legal documents that are essential for them to access social welfare services provided by the Iraqi government.

The recent conflict cast a long shadow across Iraq. As the country begins to recover, the challenges faced by millions of people diversify. Although different to the situation endured during the years of extremist control and conflict, the current problems are no less acute for the people facing them.

By promoting self-sufficiency, reducing the burden of debt and encouraging reintegration into existing social mechanisms, programmes like cash assistance and access to legal documentation help to lay the groundwork for longer-term recovery.

“The UK continues to stand by vulnerable Iraqis affected by the devastating conflict with Da’esh,” said Mr. Jim Carpy, Head of DFID Iraq. “Through UNHCR’s programme, UK aid is providing families displaced by conflict with cash assistance, allowing them to buy food and other essential items, re-build their lives, and ultimately return home when it is safe to do so. Our support to displaced people – including many female-headed households – offers them dignity while empowering them to prioritise their own needs in a flexible and cost-effective way.”

“Cash assistance and access to new and replacement documents are crucial for Iraqis making the jump from crisis to recovery,” said Mr. Bruno Geddo, UNHCR’s Representative in Iraq. “The first step can be the hardest to take, and we must continue to stand by the people of Iraq as they start the long journey to peace and stability. UNHCR is grateful to DFID for its long standing support on cash assistance. At a time when global interest in Iraq is diminishing, I urge key donors to maintain the support they have so generously provided throughout this critical time. There is no quick fix for Iraq, and underfunding could severely impact many vulnerable people still unable to return home in a safe and sustainable way.”

(Source: UN)

Erbil Stadium to be Sold to Private Investor

By John Lee.

Erbil’s main outdoor stadium will reportedly be sold off to a private investor.

According to Rudaw, a new stadium will be built on the site of the Franso Hariri Stadium.

The existing 28,000-capacity venue was built in 1956 and refurbished in 1992.

More here from Rudaw.

(Source: Rudaw)

(Picture credit: Kushared)

Record Profits at Gulf Keystone

Gulf Keystone Petroleum (GKP) has announced its results for the half year ended 30 June 2018.

Highlights to 30 June 2018 and post reporting period

Operational

  • Gulf Keystone’s operations in the Kurdistan Region of Iraq remained safe and secure throughout H1 2018 with plant uptime at Production Facility 1 (“PF-1”) and Production Facility 2 (“PF-2”) of over 99% during H1 2018 and one lost-time incident (the first for three years) in July 2018.
  • Shaikan achieved gross average production of 31,861 bopd for H1 2018 and 31,399 bopd for July and August. Our guidance for the full year remains unchanged at 27,000-32,000 bopd.
  • Cumulative production from Shaikan since inception exceeded 50 million barrels in June 2018.  Production and well     behaviour continues to match our expectations and increase our confidence in the Company’s geological model of the field.
  • PF-2 was tied-in to the export pipeline and the export of crude oil via the pipeline commenced during July 2018, leading to reduced operating costs and HSSE risk.
  •  Agreement reached in June 2018 with Ministry of Natural Resources (“MNR”) of the Kurdistan Regional Government (“KRG”) and our partner, MOL Hungarian Oil & Gas plc (“MOL”), in relation to investment plans to increase production at Shaikan to 55,000 bopd during the second half of 2019.
  • Construction work for the investment programme has started, equipment procurement and contract tendering are underway and overall activity is on schedule.
  • The scope of work for the 55,000 bopd project has been expanded to include opportunities to accelerate the production  increase and tie-in PF-1 to the export pipeline. While capex guidance for the original scope remains unchanged, the required capex for the project has been revised to between $200 million and $230 million gross to account for the acceleration of those additional opportunities.
  • The revised Field Development Plan (“FDP”) has been drafted and is being finalised prior to submission later in 2018.

Financial

  • Record profit after tax of $26.7 million (H1 2017: profit after tax of $0.7 million).
  • Continued disciplined cost control with underlying cash operating costs stable at $14.1m (H1 2017: $14.1m) and underlying cash operating costs per barrel of $3.0/bbl (H1 2017: $2.7/bbl).
  • The Group has continued to receive regular oil sales payments since 1 September 2015, with cash receipts of $107 million net to GKP during the half year and $147 million net to GKP during the eight months to 31 August 2018.
  • Net cash generated in operating activities of $61.2 million (H1 2017: $30.1 million).
  • Cash balance of $219 million at 30 June 2018 and $240 million at 7 September 2018 against $100 million debt principal.
  • Debt refinanced in July 2018, with $100 million Reinstated Notes redeemed and replaced by $100 million New Notes with five-year maturity and 10% interest rate.
  • Signing the Crude Oil Sales Agreement in January 2018 was a key milestone for the Company

Corporate

  • Jaap Huijskes appointed Non-Executive Chairman in April 2018.
  • Martin Angle appointed Senior Independent Non-Executive Director in July 2018.

Outlook

  • With construction work underway, the Company remains on track to increase production at Shaikan to 55,000 bopd in the second half of 2019.
  • GKP plans to carry out workovers on SH-1 and SH-3 wells by the end of the year, subject to rig availability.
  • The Company has begun work to tie-in PF-1 to the export pipeline which is anticipated to be complete mid-2019, leading to further reduced operating costs and HSSE risk.
  • The Company continues to make progress with the MNR and MOL to achieve further contractual and commercial clarity in relation to amendments of the Shaikan PSC, which it anticipates being concluded during Q4 2018.

Jón Ferrier, Gulf Keystone’s Chief Executive Officer, said:

It is pleasing to note that over the course of the year a number of key milestones have been achieved, leading to the recommencement of investment into Shaikan and the anticipated growth in production from the field. 

“The signing, and successful implementation, of the Shaikan crude oil export sales agreement at the start of the year paved the way for the commercial progress that has been achieved, including the investment plans but also regarding the amendment to the Shaikan PSC. Once the revised FDP is submitted to the MNR and there is clarity around the PSC, we look forward to providing further details to investors, including capital strategy.

“Once again, Shaikan has continued to perform well from an operational perspective, and in line with our strategic priority, this has been achieved whilst maintaining our strong safety track record.  With a clear path to future growth, underpinned by a healthy balance sheet and an outstanding asset, we can look to the future with confidence”.

More details here.

(Source: GKP)

Former Netherlands Defence Minister to head UNAMI

United Nations Secretary-General António Guterres has announced the appointment of Jeanine Hennis-Plasschaert (pictured) of the Netherlands as his Special Representative for Iraq and Head of the United Nations Assistance Mission for Iraq (UNAMI).

She will succeed Ján Kubiš of Slovakia, to whom the Secretary-General is grateful for his service.

Ms. Hennis-Plasschaert brings over 20 years of political and diplomatic experience, having served in several high-level government and parliamentary positions. She was Minister of Defence of the Netherlands (2012-2017), the first woman to be appointed in that role.

As Minister, she oversaw the Central Staff, Support Command, the Defence Material Organisation and the four Royal Netherlands Armed Forces: Army, Navy, Air Force and the Military and Border Police. In this role, she had oversight of Dutch involvement in military operations in Mali, Afghanistan and Iraq, building close collaboration with the European Union, the North Atlantic Treaty Organization and United Nations partners.

Ms. Hennis-Plasschaert also served as a member of the House of Representatives of the Netherlands (2010-2012) and a member of the European Parliament (2004-2010). She worked for the European Commission in Brussels and in Riga, Latvia, and for the City of Amsterdam.

(Source: UN)

Netherlands Substantially Increases Support to Iraq

The Netherlands has contributed an additional USD 23.2 million (EUR 20 million) to UNDP’s Funding Facility for Stabilization (FFS), which finances fast-track initiatives to stabilize areas liberated from the Islamic State of Iraq and the Levant (ISIL). This brings the Netherlands’ total contribution to USD 65.4 million (EUR 57 million).

Marta Ruedas, Deputy Special Representative of the UN Secretary-General for Iraq, said:

The impact of stabilization activities is clearly visible across the country. Schools are reopening, clean water is flowing and bridges are reconnecting communities.

“Almost 70 percent of the 5.9 million people who fled during the conflict have returned home. The scale of work still left to do cannot be underestimated, however, which is why this generous contribution from The Netherlands comes at exactly the right time.”

Sigrid Kaag, Dutch Minister for Foreign Trade and Development Cooperation, said:

“It is of the utmost importance to restore stability here and in other places destroyed by ISIS … Giving people the prospect of a brighter future is essential because their property and livelihoods lie in ruins. This includes re-establishing water and electricity supplies, schools and other basic services.”

The Minister recently visited the Old City of Mosul to assess the impact of stabilization activities in the region.

At the request of the Government of Iraq, UNDP established the Funding Facility for Stabilization (FFS) in June 2015 to facilitate the return of displaced Iraqis, lay the groundwork for reconstruction and recovery, and safeguard against the resurgence of violence and extremism.

The Facility currently has over 2,400 projects underway in 31 liberated cities and districts, helping local authorities to quickly rehabilitate essential infrastructure. Almost 1,200 projects have now been completed, with some 95 percent of projects carried out by the local private sector employing local labour. In Mosul alone, FFS is implementing over 750 projects. With over 300 projects now completed across the city, residents have improved access to healthcare, education, electricity, and clean running water.

Since the start of the most recent conflict in 2014, almost 70% of the 5.8 million displaced Iraqis have returned to their homes. The impact of FFS has been significant in supporting people upon their return home. FFS has 26 donors that have committed over USD 800 million to stabilization efforts in Iraq.

(Source: UNDP)

IRCS distributes Food Parcels in Tikrit

The Teams of the Iraqi Red Crescent distributes more than 500 food parcels for the families who have returned to their areas in Tikrit.

The Iraqi Red Crescent Society (IRCS) has distributed more than 500 food parcels for the families who have returned to their areas in Tikrit district.

” The teams of the IRCS have distributed 537 food parcels for the families who have returned to their home areas in Tikrit district and they are continuing to distribute for all the displaced families that have been surveyed because they are covered by food assistance”, said the IRCS relief teams official of Salahuldin center Mr. Hyder Qassim.

Qassim has added that the IRCS`s health teams have implemented health awareness and psychosocial support programs  for the displaced families who are living in the camps of Al-Shahama and Al-shuyukh orchards in Salahuddin governorate through conducting field visits and delivering awareness lectures to the displaced families in the camps, the number of the beneficiaries has reached more than 180 people.

(Source: IRCS)

IRCS distributes Food Parcels in Tikrit

The Teams of the Iraqi Red Crescent distributes more than 500 food parcels for the families who have returned to their areas in Tikrit.

The Iraqi Red Crescent Society (IRCS) has distributed more than 500 food parcels for the families who have returned to their areas in Tikrit district.

” The teams of the IRCS have distributed 537 food parcels for the families who have returned to their home areas in Tikrit district and they are continuing to distribute for all the displaced families that have been surveyed because they are covered by food assistance”, said the IRCS relief teams official of Salahuldin center Mr. Hyder Qassim.

Qassim has added that the IRCS`s health teams have implemented health awareness and psychosocial support programs  for the displaced families who are living in the camps of Al-Shahama and Al-shuyukh orchards in Salahuddin governorate through conducting field visits and delivering awareness lectures to the displaced families in the camps, the number of the beneficiaries has reached more than 180 people.

(Source: IRCS)

New Investment Opportunities in Iraq

By John Lee.

The National Investment Commission (NIC) has announced new investment opportunities in Iraq:

  1. Textile and leather plants, State Company for Textile and Leather Industries
  2. Sulfur production, Mishraq Sulfur State Company
  3. Production of ethylene and high-densite polyethylene (HDPE), State Company for Petrochemical Industries
  4. Dextrin and starch production, State Company for Food Products
  5. Al-Qadisiya Brick Factory, State Company for Construction Industries

(Source: National Investment Commission)

(Picture: Business opportunity word cloud, from ibreakstock/Shutterstock)