By John Lee.

Hyundai Engineering & Construction has reportedly won a $2.45-billion deal to build a seawater processing facility in Iraq.

South Korean media report that the company signed a letter of intent with Basra Oil Company (BOC) on Wednesday for the 49-month project, which will be capable of supplying 5 million barrels of fresh water per day.

This will help to increase output at Iraq’s oil fields.

(Sources: Yonhap, Korea Herald)

By John Lee.

Shell is reported to be still in the process of evaluating the viability of the $11-billion Nebras petrochemical complex in Basra.

The project was designed to produce 1.8 million mt/year of various petrochemicals, using naphtha as a feedstock.

Last year, Reuters reported that Saudi Basic Industries Corp (SABIC) was in talks to join the project, but according to S&P Global Platts there has been no update on the progress of these talks.

(Source: S&P Global Platts)

By John Lee.

Prime Minister Haider Al-Abadi has asked Iraq’s Integrity Commission to investigate the delays and stoppages in some infrastructure projects in Basra and other southern provinces.

He said some of these delays were the result of corruption, while other we because of what he described as a dereliction of duty and a failure of leadership.

He added that they will also look at the administration of border crossings to ensure that they are outside the influence of any political group.

(Source: Govt of Iraq)

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)

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)

The Cabinet held its weekly regular meeting in Baghdad on Tuesday under the chairmanship of Prime Minister Haider Al-Abadi.

At the meeting, it was decided to:

  • direct the Ministry of Water Resources to deliver water for Basra province to a rate of 75 m3 / s and remove unauthorised structures on the rivers;
  • direct the Ministry of Water Resources to follow-up on the chlorine ratio in the water of Basra and other provinces;
  • launch the Basra sewage waste management project, which has been suspended since 2015;
  • grant an investment license for the construction of the Kirkuk oil refinery;
  • vote on the implementation of a response to the demands of the demonstrators in Karbala, Basra, Dhi Qar, and Najaf;
  • allocate a residential plot for young athletes who win the gold, silver or bronze medals at international sporting championships.

(Source: Iraqi Govt)

By John Lee.

Security forces in Basra province have reportedly prevented demonstrators from storming the West Qurna 1 oil field on Wednesday.

A military source told Anadolu Agency that demonstrators blocked all roads leading to the facility, prompting local security forces to intervene.

(Source: Anadolu Agency)

Japan’s Mitsubishi Corporation has been awarded a contract for port construction in the Republic of Iraq.

Extended by the General Company for Ports of Iraq (GCPI), the contract covers a port rehabilitation project in the country’s southern region of Basra, and is valued at approximately 110 million US dollars. The project is being funded through ODA loans provided by the Japan International Cooperation Agency (JICA).

The project will be executed through a partnership between MC and multiple international contractors, including Turkey-based energy infrastructure provider Calik Enerji (CE), in which MC holds shares, and construction firm Gap Insaat, also Turkey-based.

Both part of the Calik Holding group, these two sister companies will play a major role in executing construction while MC will be responsible for overall project coordination and serve as the prime contractor, facilitating the import of steel structures and other necessary supplies from Japan.

The objective of this project is to modernize existing industrial port facilities around Basra by (i) expanding the oil products berth at Khor Al-Zubair Port, and (ii) building a new service berth for working ships and service boats at Umm Qasr Port.

The rehabilitation of ports throughout Iraq is essential to meeting increasing demands for port infrastructure, which is growing rapidly as the volumes of trade flowing in and out of the country grows. Rehabilitating this critical infrastructure will also contribute to further stabilizing the country’s economy as post-war reconstruction advances.

This project is particularly noteworthy given that Khor Al-Zubair and Umm Qasr are the only ports currently in operation in the Basra region, where a system of ports located in the 48 kilometer wide tip of the country wedged in between Iran and Kuwait along the Persian Gulf gives Iraq its only outlet to the sea.

In addition to this project, MC intends to continue leveraging provisions under the Japanese Government policy framework for promoting export of “high-quality infrastructure” to identify opportunities that support Iraq’s efforts towards reconstruction, economic development, and increased quality of life.

(Source: Mitsubishi Corporation)

(Picture: Takehiko Kakiuchi, President and CEO of Mitsubishi Corporation)

By John Lee.

A Kuwaiti businessman is reportedly planning to grow 100,000 date palms and build a nature reserve complete with ostriches and deer in southern Badia, 150 km from the city of Basra.

According to Reuters, Abdul-Aziz al-Babtain is investing $58 million in the project, which will see the palms grown over the next five to six years.

More here from Reuters.

(Source: Reuters)

By John Lee.

Iraq’s Ministy of Oil has awarded all four development projects, and two of the seven exploration blocks, that it offered in its fifth auction of oil licences.

Only nine of the 26 companies originally pre-qualified took part in the auction, with majors such as Lukoil (Russia), ExxonMobil (US) and Total (France) not bidding.

Development blocks:

  • Gilabat-Qumar, in Diyala: Crescent Petroleum (UAE)
  • Khashim Ahmer-Injana, in Diyala: Crescent Petroleum (UAE)
  • Huwaiza, in Missan (Maysan): Geo Jade Petroleum (China)
  • Khudher Al-Mai [Khider al-Mai], in Basra and Muthana: Crescent Petroleum (UAE)

Exploration blocks:

  • Naft Khana, in Diyala: Geo-Jade Petroleum (China)
  • Sindibad [Sindbad] field in Basra: United Energy Group (Hong Kong)
  • Zurbatiya [Zurbatia], in Wasit and Diyala: not awarded
  • Shihabi in Missan and Wasit: not awarded
  • Fao, in Basra: not awarded
  • Jebel Sanam [Jabal Sanam], in Basra: not awarded
  • Offshore Gulf block: not awarded

Abdul Mahdi al-Ameedi, director general of the Petroleum Contracts and Licensing Directorate (PCLD), told Reuters that the failure of five blocks to attract bids was due to a combination of factors, including the fact that some of them cover former battlefields, some are hard to access, and the one offshore plot needs more data.

He said another round could be held for those five blocks.

More details here from Iraq Oil Report (subscription required)

(Sources: Iraq Oil Report, Reuters, Associated Press, AFP)