With the Iraq election completed, the oil and gas marketplace in Iraq is set to see explosive growth. The plan is to raise production from c.2 million bbd to approaching 12 million bbd. Infrastructure is in a parlous state with limited investment over 30 years. The current state owned infrastructure and the services sectors are unable to respond to existing demand and the previous regime’s systematic dismantling of the private sector leaves Iraq with no prospect of increasing capacity quickly. In this situation Iraq needs international private sector partners urgently.
To bring costs of looking into this massive market into an acceptable range, Upper Quartile will run the second Oil and Gas Trade Mission to Basra and Baghdad between the 2nd and 7th May – ” ……. this will reduce costs for individual companies yet allow for maximum exposure to decision makers within government ministries and the private sector, in a safe & secure environment” said Adrian Green today.
If Iraq signs all contracts now on offer, output may approach 12 million barrels per day and lift Iraq to second or third place among global oil producers.
- Shell and BP have tenders out and further tenders on the way
- BP Rumaila site plan drawn up and about to be contracted
- Schlumberger are negotiating a significant sub contract
- Baker Hughes are having a site built in Rumaila
- Shell have tendered for a number of services in Majnoon
- ENI, Shell, BP, and other IOC planning team members are making weekly visits in and around Basra
- One IOC has office and accommodation base partly located in downtown Basra
Contracts on offer will push Iraq’s oil services market to $8 billion by 2014. Capital spending on oilfield services in 2011 alone is estimated to be five times that of Saudi Arabia, Bahrain, United Arab Emirates, Oman, Qatar and Kuwait combined.
Contact Adrian Green on [email protected]