By John Lee.

Baker Hughes has signed a contract to harness 200 MMcf/d of natural gas from Iraq’s Nassiriya and Gharraf oil fields.

The Nassiriya field is operated by the state-run Dhi Qar Oil Company (DQOC) and currently producing around 70,000 barrels per day of crude oil, with a target of 150,000 bpd.

Gharraf is operated by Petronas and is producing around 88,000 bpd with a plateau production target of 250,000 bpd.

(Sources: Minister of Oil, Platts)

By John Lee.

According to a report from Platts, the Iraqi oil ministry is about to award two management contracts to replace Shell at the Majnoon oil field.

Sources say the state-run Basra Oil Company (BOC) has opted to operate the field instead of replacing Shell, and junior partner Petronas, which announced last year it was relinquishing its 2010 technical service contract.

They added that KBR will play a project management consultant role, while China’s Anton Oil will handle production operations and management, ch after the recent oil price decline — which altered the financial equation for the contract.

More here from Platts.

(Source: Platts)

By John Lee.

Russia’s Gazprom Neft has reportedly revised down its output plateau for the Badra oil field.

Denis Sugaipov, head of Gazprom Neft’s department of large projects, told Reuters that the consortium running the project has proposed setting the output plateau for the next few years at its current level of around 85,000 bpd, as the field is more geologically complex than previously thought.

This is half the level initially planned as a plateau to be reached in 2017.

The field is being developed by Gazprom (30%), KOGAS (22.5%), Petronas (15%), TPAO (7.5%), Iraqi state-owned Oil Exploration Company (25%).

According to Reuters, $4.0 billion has been invested in the plant so far, including $1 billion for a gas processing plant; another $2.5 billion is planned to be invested by 2030.

(Source: Reuters)

By John Lee.

Malaysia’s Petronas has reportedly confirmed that it will exit from Iraq’s Majnoon oil field along with joint stakeholder Shell.

A spokeswoman for Petronas told The National:

Petronas confirms its exit from the Majnoon oilfield, Iraq, together with Shell. We will be working with Shell on the handover of the field to the Basra Oil Company [BOC].

“An announcement will be made once details of the handover is finalised.

Petronas holds a 30-percent stake in the field, with Shell having 45 percent.

On 21st December, Iraq’s Ministry of Oil approved a set of measures relating to the development of the super giant field once Shell relingushes it back to Iraq; IBN Expert Blogger Ahmed Mousa Jiyad described the decision as “an important move in the right direction“.

Petronas retains interests in the Badra, Garraf, Halfaya oilfields.

(Source: The National)

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)

By John Lee.

Janus Global Operations (JGO) has announced that it has been selected by “an integrated oil and gas multinational corporation based in Malaysia“, to provide security and risk management services for the company’s operations in central Iraq.

Some 600 JGO U.S. and foreign national employees will be responsible, during the two-year contract, for security and risk management for the Malaysian International Oil Company’s (IOC) oil exploration and development program in central Iraq, to include the company’s base camp, facilities, and also mobile security for company personnel.

Matt Kaye (pictured), JGO’s chief executive officer, said:

We’re proud that the Malaysian IOC has selected JGO for this security responsibility.

“JGO has worked in Iraq with commercial and government clients for more than 13 years on demining and unexploded remnants of war clearance, munitions management, security and risk management, and other tasks critical to clients’ operations.

The Malaysian IOC has a 10-year relationship with JGO, Kaye added.

Although not named in the announcement, Malaysia’s state-owned Petronas is the operator of the Garraf [Gharraf] oil field in Dhi Qar Governorate, in which it holds a 45-percent stake. The company also has interests in Iraq’s Majnoon, Halfaya and Badra fields.

(Source: JGO)

By John Lee.

Oil giant Shell is trying to sell its stake in the Majnoon oilfield (pictured) in southern Iraq, following a failure to reach agreement with Iraq’s Ministry of Oil.

A Shell spokesman told UAE-based newspaper The National:

“Following extensive discussions with the Ministry of Oil, the oil minister of Iraq formally endorsed a recent Shell proposal to pursue an amicable and mutually acceptable release of the Shell interest in Majnoon, with the timeline to be agreed in due course.”

Reuters quotes an oil official as confirming that the Ministry failed to reach an agreement with Shell over its Majnoon operations, including production plans and investments budgets. “We think it’s for the interest of all parties that Shell should withdraw,” he added.

A Shell spokesman told Reuters:

“In May 2017, the ministry of oil in Iraq applied the performance penalty and remuneration factor on the Shell operated venture, the Majnoon oil field, which had a significant impact on its commerciality.”

The company holds a 45-percent share in the project, with Malaysia’s Petronas holding 30 percent, and the Iraqi state-owned Maysan Oil Company having 25 percent.

Output from the field, which commenced production in 2014, is currently estimated at around 235,000 barrels per day (bpd), with a 400,000 bpd target by 2020.

Shell is also seeking to selling its stake in the ExxonMobil-operated West Qurna 1 oil field.

In addition to its oil interests in Iraq, Shell is a key player in the Basra Gas Company (BGC), a joint venture between the Iraq’s South Gas Company (SGC) (51%), Shell (44%) and Japan’s Mitsubishi (5%), which processes gas from the Rumaila, West Qurna and Zubair fields, which would otherwise be flared.

The National also quotes a Shell spokesman as saying that the company remains committed to this, and to its petrochemical project in Iraq:

“By leaving Majnoon, Shell will be in a stronger position to focus its efforts on the development and growth of the Basrah Gas Company and the Nebras Petrochemicals Project.

(Sources: Reuters, The National)

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)

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 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)