Iraq’s Rehabilitation Continues: Find out More at Basra Megaprojects Conference

The summer months have seen Iraq continue with its quota-busting production run. According to figures from S&P Global Platts, the country added another 10,000 barrels per day in July, taking output to 4.78 million bpd, leaving it 270,000 bpd over its OPEC compliance target, due to higher crude exports from its southern terminals. Once again, it seems, Iraq is a force to be reckoned with in the global oil markets.

If the south of the country is Iraq’s oil and gas powerhouse, then Basra is its engine. The region is home to 70 per cent of the country’s natural gas and 60 per cent of its crude oil reserves, including supergiant fields such as Rumaila, Majnoon, Zubair and West Qurna I and II. With its sea ports, Basra is also the main export gateway for the country’s oil and gas riches, making it of vital strategic importance and the focus of much-needed investment to unplug the midstream bottlenecks that could undermine future production growth.

The world’s biggest oil companies have already partnered with Iraqi firms to optimise the performance of Basra’s supergiant fields. It is now more than a decade since the Ministry of Oil signed agreements with Shell, BP, ExxonMobil, Lukoil, Eni and other early entrants to rehabilitate and revamp the southern fields, which are key to the country hitting its longer-term production goal of 7.5 million bpd.

Meeting what currently looks like a stretch target will require significant investment in midstream infrastructure. The good news is that this work is already underway: earlier this year the Ministry of Oil announced plans to press ahead with the US$5 billion Iraqi-Jordanian pipeline project with capacity of 1 million bpd. The line will take oil from the Rumaila oilfields to the port of Aqaba on the Red Sea.  Downstream work is underway to increase domestic refining capacity; despite its oil riches, the country is heavily dependent on refined product imports, partly due to damaged or neglected refining assets and partly due to a misalignment between the product yield of existing refineries and its domestic needs.

Those keen to learn more about the opportunities in Basra as it rebuilds for a brighter future would do well to attend the 6th Basra Megaprojects – Oil, Gas & Environment Conference, which will once again take place in Istanbul, Turkey on 22-23 October 2019. Held under the patronage of the Governorate of Basra, the Basra Council and Basra Oil Company, this is the place to meet key officials and industry leaders to discover new commercial opportunities, the latest policy developments and network with the movers and shakers of this oil and gas hotspot. The event is sponsored by: Chevron, Shell, Crescent Petroleum, ILF Consulting Engineers, GardaWorld, Al-Barham Group and ENKA, all of which will have senior representatives meeting with attendees throughout the 2 days.

Of course, when it comes to mega-projects, it’s not just oil and gas infrastructure that needs investment. The region also faces a water crisis, with four million people in Basra province deemed “water insecure” by humanitarian agencies (and 180,000 hospitalised in August 2018 as a result of contaminated water) as the vital Shatt al-Arab river has suffered from reduced flow, sea water intrusion, pollution and mismanagement.

The Basra Megaprojects Conference will bring together professionals from around the world to share their knowledge and best working practices, discuss the changing face of environmental policy in Iraq and how private companies involved in mega-projects can contribute to a more sustainable future for Iraq. As part of this drive, the event will host the CWC Basra Environmental Awards to celebrate those who have implemented sustainable projects in the oil, gas, power and water sectors, with the winner announced during the Awards Dinner on Tuesday 22nd October 2019.

For anyone with an interest in Iraq’s oil, gas and water mega-projects and the investment and regulatory framework needed to build a more prosperous, sustainable and secure future, the Basra Megaprojects Conference is the strategic gateway into the south of Iraq and not to be missed.

Find out more at: http://www.cwcbasraoilgas.com/

(Source: CWC)

By Padraig O’Hannelly.

A senior oil executive has predicted that Iraq could surpass Saudi Arabia as an oil producer.

Addressing delegates at CWC‘s Iraq Petroleum conference in London, Majid Jafar (pictured), CEO of Sharjah-based Crescent Petroleum, said:

“Iraq is hugely underexplored. We at Crescent know of 300 structures just in the Western Desert that have yet to be drilled, so I for one believe that Iraq has a lot of potential, and I wouldn’t be surprised if it becomes the largest producer in OPEC during my career.”

Crescent Petroleum has an interest in the Khor Mor field in the Kurdistan Region of Iraq, and has signed initial contracts to develop the oil fields of Gilabat-Qumar (in Diyala), Khashim Ahmer-Injana (in Diyala), and Khudher Al-Mai [Khider al-Mai] (in Basra and Muthana).

By Padraig O’Hannelly.

Following the increase in tensions in the Gulf region in recent weeks, two British diplomats have expressed the view that Iraq could have a positive role to play.

Addressing delegates at CWC‘s Iraq Petroleum conference in London, the British Ambassador to Iraq, Jonathan Wilks CMG, said:

Iraq is strong enough now to keep itself out of whatever may develop between the US and Iran, as long as it asserts its sovereignty and independence with all countries, not just with Iran and the US, but with all countries east and west. It is powerful enough to do this now … [and] must be taken seriously as an economic power.

“Iraq is back as a reasonable, constructive and credible player in world affairs.

Later at the same gathering, Sir William Patey KCMG (pictured on left), a former UK Ambassador to both Iraq and Saudi Arabia, said:

Iraq is in a unique position, in that it has equity in ensuring that there isn’t a war … and I think a confident new Iraq could play a role.

“It has better relations with Saudi Arabia, it has good relations with Iran, it has a close relationship with the United States, and it has a lot at stake. So I actually think in terms of reducing the tensions, I think there is potential for Iraq, and I think  the current leadership of Iraq has the [right] vision and outlook.”

By Padraig O’Hannelly.

Following the increase in tensions in the Gulf region in recent weeks, two British diplomats have expressed the view that Iraq could have a positive role to play.

Addressing delegates at CWC‘s Iraq Petroleum conference in London, the British Ambassador to Iraq, Jonathan Wilks CMG, said:

Iraq is strong enough now to keep itself out of whatever may develop between the US and Iran, as long as it asserts its sovereignty and independence with all countries, not just with Iran and the US, but with all countries east and west. It is powerful enough to do this now … [and] must be taken seriously as an economic power.

“Iraq is back as a reasonable, constructive and credible player in world affairs.

Later at the same gathering, Sir William Patey KCMG (pictured on left), a former UK Ambassador to both Iraq and Saudi Arabia, said:

Iraq is in a unique position, in that it has equity in ensuring that there isn’t a war … and I think a confident new Iraq could play a role.

“It has better relations with Saudi Arabia, it has good relations with Iran, it has a close relationship with the United States, and it has a lot at stake. So I actually think in terms of reducing the tensions, I think there is potential for Iraq, and I think  the current leadership of Iraq has the [right] vision and outlook.”

By Padraig O’Hannelly.

Delegates attending CWC‘s Kirkuk & Mosul Megaprojects conference in London have been told that while Iraq “has never experienced as small a number of security incidents in the post 2003-era as it is now … there are some parts of Iraq that are experiencing as many incidents as they did in, say, 2008“.

Dr Michael Knights (pictured), of the Washington Institute for Near East Policy, added:

It’s all about exact location — the human terrain, the physical terrain, the security presence, and the level of Daesh threat …

“It’s also important to note that some of the ‘liberated‘ areas are liberated during the day, but they’re not liberated at night, and that’s a very important distinction … so you need to look into the degree to which an area truly has been liberated and normalised.

He said that Mosul is now one of the most secure environments in the country.

Most of the Daesh attacks that still happen, happen against very very soft targets“, explained Knights, “and if you’re an investor, you’re unlikely to be a soft target, you’re likely to be secured.

 

By Padraig O’Hannelly.

A major petroleum conference in London has been told that more than 200 British companies now operating in Iraq, and those numbers are increasing.

Addressing more than 300 delegates at CWC‘s Iraq Petroleum conference, British Ambassador Jonathan Wilks CMG said:

“The UK and Iraq are becoming increasingly strong business partners and education partners, and London is becoming as it once was, the second home for many Iraqis. The number of Iraqis visiting the UK is increasing, so if you hear of difficulties getting, visas this is exaggerated.”

Looking to the current climate in Iraq, Ambassador Wilks added:

I am more than glass-half-full; the positives in Iraq right now, the dynamics, the sustainability of security improvements and economic improvements are really the best we have seen for many many years.

“We now have the best [Iraqi] government that we’ve had since 2003 … This is an extremely good time to be working in Iraq.

By Padraig O’Hannelly.

Iraq’s Deputy Minister at the Ministry of Construction, Housing, Municipalities and General Works has presented details of reconstruction projects underway in areas affected by terrorism.

Dr Dara Reshid, who is also Vice President of the Reconstruction Fund for Areas Affected by Terroristic Operations (REFAATO), told CWC‘s Kirkuk & Mosul Megaprojects conference in London that IQD 1,086 billion ($870 million) has been allocated from Iraq’s 2019 budget to fund 267 projects in the liberated areas.

More details here and here.

There can be no doubting Iraq’s oil credentials. It is Opec’s number two oil producer, second only to Saudi Arabia, and holds the world’s fifth-largest proved oil reserves. Production is on the rise, having nearly doubled over the past decade, averaging around 4.5 million barrels per day in 2018.

Almost 90 per cent of the country’s output comes from giant oilfields in the southern part of the country. The remainder is largely pumped from oilfields in the northeast, in the semiautonomous Kurdistan Region of Iraq (KRI), which is under the control of the Kurdistan Regional Government.

This is good news for a country that is heavily dependent on revenues from its oil exports, which, according to the IMF, accounted for almost 90 per cent of total government revenues in 2017. The rise in oil prices, despite recent wobbles in the face of US-China trade tensions, has certainly been a boost to the country’s coffers and provides further impetus for investment in development and infrastructure.

This upwards trajectory is likely to continue as the country seeks to fill the supply gap left by new US sanctions on Iran. Iraq is keen to lift production capacity to 5 million bpd this year, and to 8.5 million bpd in the coming years as it upgrades its infrastructure. The southern oilfields are key to this growth, expected to pump some 6.5 million bpd in the coming years, with the country keen to partner with international oil companies (IOCs) to secure the necessary investment to unlock its vast resource potential.

Iraq’s growing importance as a key player on the world’s energy stage will be discussed at the upcoming CWC two-day event, Iraq Petroleum, which will be held in London on June 27-28 in collaboration with the new Federal Government of Iraq. For the first time, the event is being co-located with the one-day Kirkuk & Mosul Mega-Projects event on June 29, where delegates will be first to hear government plans and investment opportunities to develop the giant oilfields in the newly liberated oil-rich areas of Kirkuk and Mosul.

The three-day event brings together key figures shaping the future of this strategically important country. The Iraqi ministerial delegation will be led by H.E. Thamir Gadbhan, Deputy Prime Minister for Energy & Minister of Oil along with the heads of the Basra Oil Company and North Oil Company, while the international oil industry is well represented, with confirmed speakers including Michael Townshend, Regional President of BP Middle East, Jeffrey T. Levy, President of Chevron Chevron Europe, Eurasia and Middle East E&P, Majid Jafar, CEO of Crescent Petroleum, and Gati Saadi Al-Jebouri, Managing Director of LUKOIL Mid-East Limited.

It’s not just oil that’s creating new investment opportunities for international partners. Oslo-based energy consultancy Rystad Energy forecasts that in terms of resoruces sanctioned for development, gas will overtake oil projects in 2019, with new projects, mainly in the Kurdistan Region, set to triple the country’s gas output from just over 1 billion cubic feet per day in 2017 to 3 billion cf/d in 2022, enabling it to meet growing domestic demand for gas and possibly even launch the country as a gas exporter for the first time. Again, it’s a topic that will be widely covered at CWC’s Iraq Petroleum event, including presentations from Dr Jaafar Oklany, commercial director of Basra Gas Company and Ali H. Khudhier Al-Saady, former director general of South Gas Company, Basra.

For anyone with an interest in Iraq’s future, and indeed the stability of the world energy mix, this is one event not to be missed.

For further information, visit https://www.cwciraqpetroleum.com/

For full programme, download the brochure

(Source: CWC)

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)

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)