CWC


Iraq Plans Big Increase in Oil Production

By John Lee.

The Basra Oil Company (BOC) reportedly plans to increase production  from 3.2 to 5 million barrels per day over the next seven years.

According to Platts, BOC directror Ihsan Ismaael told the CWC Basra conference in Istanbul that the increased production would be sustained for at least 20 years after that.

Among the projects being considered are three new subsea pipelines replacing the old pipelines leading to the Khor al-Amaya Oil Terminal (KAAOT) and the al-Basra Oil Terminal (ABOT), adding up to 3 million bpd of new export capacity.

ABOT is currently operating at just under half its capacity of 3.5 million bpd due to the risk of pipeline rupture, while the 350k-bpd KAAOT (pictured) has been offline because of oil leaks when the pipeline is pressurised high enough for loading to be economical.

New pipelines and storage pumping at the Fao terminal would also allow the four installed single point mooring buoys (SPMs) to reach their capacity of 900,000 bpd each — up from about half that now — and potentially add a fifth SPM.

More here from Platts.

(Source: Platts)

Luiebi named Head of new National Oil Company

Iraq’s Cabinet has named Jabbar al-Luiebi, the current oil minister, to head the new Iraqi National Oil Company (INOC) – giving new momentum to a fundamental restructuring of the country’s oil sector.

Yes, he is the president of the Iraqi National Oil Company,” said Oil Ministry Spokesperson Assem Jihad, in an interview with Iraq Oil Report on the sidelines of the CWC Basra Mega Projects conference in Istanbul. “The company will be in charge of Basra Oil Company, North Oil Company, all of it – more than the ministry.”

More details here from Iraq Oil Report (subscription required)

(Source: Iraq Oil Report)

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)

Video: Iraq lures Investors to Boost Oil, Gas Output

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Iraq is hoping to lure international investors to help develop its oil and gas industry.

With victory declared over fighters from Islamic State of Iraq and the Levant (ISIL, also known as ISIS), government ministers are meeting oil executives in Berlin to discuss how to exploit its vast reserves.

Al Jazeera’s Dominic Kane reports from Berlin:

Natural Gas Must Be an Asset for Iraq

By Alessandro Bacci.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

On February 27-28, 2018, the C.W.C. Group, an energy and infrastructure conference, exhibition and training company, will organize in Berlin, Germany, the twelfth edition of Iraq Petroleum, which is one of the major events concerning Iraq’s oil and gas sector.

One of the main topics of Iraq Petroleum 2018 will be the development of Iraq’s natural gas reserves with the specific goal of strengthening energy-intensive industries to diversify the Iraqi economy.

In Iraq, natural gas might really be the key driver to develop additional industrial sectors. In fact, natural gas may be used for power generation (electricity), petrochemicals, fertilizers, and other heavy industries in which gas is the primary feedstock.

In this regard, some analysts might object that the development of these new industrial sectors would not really change the picture for Iraq because its economic development would still be too linked to the oil and gas sector—in practice Iraq’s economy would continue to be overaffected by the price of oil and gas.

This observation is by no means wrong, but it’s also true that, apart from increasing oil exports (and in this regard, it will be important to see how Iraq will deal in the future with OPEC’s quota restrictions) to improve its economic standing Iraq does not have many alternatives to developing its natural gas resources and then using them to add other industrial sectors to the economy.

Please click here to download the full report.

Alessandro Bacci is an independent energy consultant in relation to business strategy and corporate diplomacy (policy, government, and public affairs). Much of his activity is linked to the MENA region, an area where he lived for four years. Alessandro is now based in London, United Kingdom (www.alessandrobacci.com). A multilingual professional, Alessandro holds a Bachelor of Laws and Master of Laws from the University of Florence (Italy), a Master in Public Affairs from Sciences Po (France), and a Master in Public Policy from the Lee Kuan Yew School of Public Policy (Singapore).    

Iraqi Govt Ministries to Attend Oil Conference in Berlin

Iraqi Government Ministries heading to Berlin for International Meeting in February

Iraq’s oil and gas industry has started 2018 with invigorating news including new blocks to be offered at a bidding round in May, several high profile deals finalised with international companies as well as the continued upstream reforms led by Minister of Oil Jabbar Al Luaibi, which aim to enhance investment conditions and establish the country as the next oil and gas cluster.

We invite all international companies to participate. This new exploration bidding round aims to maximise reserves… We are keen to make significant changes to the new exploration model contracts, and to adopt a new commercial and financial model different from the service contract,” stated Jabbar Al Luaibi (Reuters)

CWC Iraq Petroleum, taking place in Berlin, Germany on 27-28 February 2018, brings you comprehensive updates on this new energy vision, directly from the Government of Iraq, the Federal Parliament of Iraq and the Ministry of Oil alongside the established international supermajors already operating in Iraq.

The event is held with the backing of Chevron, Shell, Lukoil, Total, Baker Hughes a GE Company, GardaWorld, Vinson & Elkins, OilSERV, RSK, ILF Consulting and RPSC.

This important meeting, now on its 12th year, provides an official platform for industry leaders to meet directly with Government officials to discuss the future of the industry as well as network and build lasting partnerships enabling commercial projects to become a reality.

Iraqi Government delegations attending the meeting include:

  • Iraq Government
  • Iraq Presidency
  • Iraq Parliament
  • Iraq Ministry of Oil
  • Iraq Ministry of Electricity
  • Iraq Ministry of Industry and Minerals
  • Iraq Ministry of Environment
  • Basra Governorate
  • Baghdad Provincial Council

View the full list of speakers and programme here or visit cwciraqpetroleum.com

(Source: CWC)

Kurdistan Oil Conference in London Postponed

By John Lee.

The CWC Kurdistan-Iraq Oil and Gas conference, planned for London in December, has been postponed.

The Kurdistan Regional Government (KRG) cited “the current logistical and other circumstances affecting the Kurdistan Region” for their request to reschedule the conference.

CWC has said that new dates and venue will be announced shortly.

(Sources: KRG, CWC)

Interview with Ahmed Tabaqchali, CIO of AFC Iraq Fund

Ahead of the Basra Oil, Gas & Infrastructure Conference taking place on the 30-31 October in Beirut, we caught up with one of the speakers, Ahmed Tabaqchali the CIO of AFC Iraq Fund on the importance of Iraq, the economy and what to look forward to at the event.

Q. Why Iraq is such an important market in the Middle East?

A. The size and quality of Iraq’s hydrocarbon wealth would alone make the country one of the most significant markets in the region. As a consequence of over 35 years of conflict, much of Iraq has not seen any meaningful exploration and thus the potential for significant discoveries is exciting. The rebuilding of its hydrocarbon industry since 2003 has a long way to go, and as such there are enormous opportunities for upgrading the sector across the whole spectrum.

Q. What are the positive implications for the economy and for Basra for the new era of reconstructing Iraq?

A. The reconstruction process will have far reaching implications for the overall economy and Basra in particular with the potential that the associated economic activities to contribute to the development of a diversified economy. The short term effect impact on the economy would be to add fuel to the expansionary economic effects produced by the reversal of the negative forces, i.e. escalating costs of war & collapsing oil prices, that crushed the economy over the last 3 years.

Q. While the Iraqi economy is driven by the state, how do you assess Basra province role as Iraq’s economic capital in driving multiple industries?

A. Arguably, the state’s domination of the economy has stifled the development of both the private sector and regional development in the country. Basra can and should play a leading role in reigniting economic growth given its position as the economic powerhouse of the country. Its rich history & traditions coupled with its mineral & human wealth are significant assets that would allow it to assume this leading role.

Q. How do you at Asia Frontier Capital assess Basra’s role?

A. Personally, Basra has a special place in my heart as it is the burial site of my grandmother since the 1940’s when my grandfather was the governor of Basra, and so I have a bias for the province and its people. It’s worth repeating that its  rich history & traditions coupled with its mineral & human wealth give it an outsized role in Iraq’s future.

Q. What is the role of AFC in Iraq in enhancing projects performance and driving growth?

A. The AFC Iraq Fund, as an investor in Iraq’s equity market signifies AFC’s belief in the long-term economic potential of the country. As long-term institutional investors, we bring foreign capital into the country and contribute to the development of the country’s institutional investor sector, which like much of its frontier market peers is underdeveloped. The long-term horizon of Institutional investors allows them to invest counter cyclically especially during financial crisis by acting as shock absorbers which in the process provides the underlying companies with shareholder stability that allows them to rebuild, grow and expand.

Q. What is your main interest at the Conference? And what are you going to discuss at the Basra Oil, Gas & Infrastructure 2017 Conference in Beirut 30-31st of October?

A. The conference provides an opportunity to meet the players and participants in potentially one of the most dynamic drivers of Iraq’s economy through Basra’s industries spanning oil, gas, power, petrochemicals, infrastructure, construction, transport and logistics. I am hoping to discuss the role and challenges of the private sector in the reconstruction process. Specifically, to explore the role that institutional investors can play as shareholders in infrastructure projects both as an additional source of financing and as contributors to long-term stability as anchor investors.

(Source: CWC)

Interview with Ahmed Tabaqchali, CIO of AFC Iraq Fund

Ahead of the Basra Oil, Gas & Infrastructure Conference taking place on the 30-31 October in Beirut, we caught up with one of the speakers, Ahmed Tabaqchali the CIO of AFC Iraq Fund on the importance of Iraq, the economy and what to look forward to at the event.

Q. Why Iraq is such an important market in the Middle East?

A. The size and quality of Iraq’s hydrocarbon wealth would alone make the country one of the most significant markets in the region. As a consequence of over 35 years of conflict, much of Iraq has not seen any meaningful exploration and thus the potential for significant discoveries is exciting. The rebuilding of its hydrocarbon industry since 2003 has a long way to go, and as such there are enormous opportunities for upgrading the sector across the whole spectrum.

Q. What are the positive implications for the economy and for Basra for the new era of reconstructing Iraq?

A. The reconstruction process will have far reaching implications for the overall economy and Basra in particular with the potential that the associated economic activities to contribute to the development of a diversified economy. The short term effect impact on the economy would be to add fuel to the expansionary economic effects produced by the reversal of the negative forces, i.e. escalating costs of war & collapsing oil prices, that crushed the economy over the last 3 years.

Q. While the Iraqi economy is driven by the state, how do you assess Basra province role as Iraq’s economic capital in driving multiple industries?

A. Arguably, the state’s domination of the economy has stifled the development of both the private sector and regional development in the country. Basra can and should play a leading role in reigniting economic growth given its position as the economic powerhouse of the country. Its rich history & traditions coupled with its mineral & human wealth are significant assets that would allow it to assume this leading role.

Q. How do you at Asia Frontier Capital assess Basra’s role?

A. Personally, Basra has a special place in my heart as it is the burial site of my grandmother since the 1940’s when my grandfather was the governor of Basra, and so I have a bias for the province and its people. It’s worth repeating that its  rich history & traditions coupled with its mineral & human wealth give it an outsized role in Iraq’s future.

Q. What is the role of AFC in Iraq in enhancing projects performance and driving growth?

A. The AFC Iraq Fund, as an investor in Iraq’s equity market signifies AFC’s belief in the long-term economic potential of the country. As long-term institutional investors, we bring foreign capital into the country and contribute to the development of the country’s institutional investor sector, which like much of its frontier market peers is underdeveloped. The long-term horizon of Institutional investors allows them to invest counter cyclically especially during financial crisis by acting as shock absorbers which in the process provides the underlying companies with shareholder stability that allows them to rebuild, grow and expand.

Q. What is your main interest at the Conference? And what are you going to discuss at the Basra Oil, Gas & Infrastructure 2017 Conference in Beirut 30-31st of October?

A. The conference provides an opportunity to meet the players and participants in potentially one of the most dynamic drivers of Iraq’s economy through Basra’s industries spanning oil, gas, power, petrochemicals, infrastructure, construction, transport and logistics. I am hoping to discuss the role and challenges of the private sector in the reconstruction process. Specifically, to explore the role that institutional investors can play as shareholders in infrastructure projects both as an additional source of financing and as contributors to long-term stability as anchor investors.

(Source: CWC)

Interview with Ali Fares: Overview of the Opportunities

Ahead of the international Basra Oil, Gas & Infrastructure 2017 Conference which CWC Group hosts annually with the Basra Governorate, the Basra Council and the Basra Oil Company, Nawar Abdulhadi, MENA Director for CWC Group interviewed Mr Ali Shadad Al Fares, Chairman of the Oil & Gas Committee at the Basra Council.

Mr Ali Fares highlights the importance of the Conference for the province this year as well as for the rest of Iraq as Basra moves towards expanding to accommodate the upcoming projects in the new era focusing on rebuilding Iraq.

Mr Al Fares touched upon the oil, gas, petrochemicals and power projects, the infrastructure and constructions projects as well as the transportation and logistics projects which will be addressed at the international conference in Beirut between the 30-31st of October.

Nawar Abdulhadi: What are the current opportunities for companies investing in oil and gas in Basra?

Mr Al Fares: There are many opportunities, which are the focus of the local government of Basra and the Federal Oil Ministry. I would like to highlight the following:

  1. Strategic Sea Water Project to supply the fields for water injection.
  2. Aqaba pipeline project, which extends from Rumaila field to Najaf Governorate.
  3. Investment project in the gas fields with a new economic model (Nahran Omar, national fields, the exploitation of gas flared in the fields of other remaining licensing rounds)
  4. Investment in non-invested oil fields that are managed through the small and medium national effort.
  5. The joint fields with the Iranian side and the Kuwaiti side.
  6. There are different projects within which the size of investment is very important as they must be within the contracts of the licensing rounds, such as digging new wells and the maintenance of the old and the infrastructure of the oil and gas sector.
  7. The Muftiyah tourist project in Basra, located on the Shatt al-Arab, using the private investment model .