The first annual Iraq Airport Expansion Cargo and Logistics (IAECL) conference & exhibition will be held in Erbil on the 26th and 28th of April, 2011, at the Erbil international fair grounds.

Iraq’s major airports are being re-developed, and provincial governments are upgrading existing airports as well as planning the construction of new airports.

Cargo and logistics facilities are also being given a facelift. Cargo villages are planned with latest shelving, storage technology and material handling equipments.

Procurement of a range of solutions from design and build engineers, air traffic control systems, baggage handling and passenger ticketing equipment is underway.

MRO facilities are under construction.  The “Iraq Airport Expansion Cargo and Logistics” (IAECL) conference & exhibition gives you a unique opportunities to network and gain unrivalled insights into the Iraq’s airports, cargo and logistics industry.

The conference will also focus on investment opportunities in the airport, aviation, and logistics sector in Iraq and other regional airports.

Iraq country offers a pro-business-minded environment, and is a challenging but fast growing emerging market.

For more details about the IAECL conference and exhibition, and to learn more about the opportunities in this market, please click here to download the brochure.

The Ministry of Electricity in Baghdad, in cooperation with consulting firm Parsons Brinckerhoff (PB), will present Iraq’s Long Term Electricity Master Plan at a 2-day conference in Istanbul on 1st and 2nd February, 2011.

The 2010 – 2030 Long Term Master Plan, prepared by joint teams from Parsons Brinckerhoff and the Ministry of Electricity’s Planning and Studies Department, provides a long term road map for the future expansion of Iraq’s electricity program. The Master Plan Conference will present the findings and recommendations of the master plan report. Attendees will have the opportunity to interact with Ministry of Electricity and Parsons Brinckerhoff teams to discuss the latest issues facing the power sector in Iraq.

The Master Plan Conference has been organised in partnership with the US Embassy-Baghdad and is open to all interested parties.  Registration and attendance is free. More information and registration details are available at: http://www.iraqelectricitymasterplan.com.

Jeff Larkin, project director for Parsons Brinckerhoff’s role on the master plan, comments, “Development of this master plan has been a huge joint effort on the part of both PB and the Ministry of Electricity and has resulted in a detailed and comprehensive study and analysis of the many issues facing the power sector in Iraq. I’m confident the conference will be informative and constructive for attendees.”

The investment outlook in Iraq will be probed at a key summit in Bahrain. In its ongoing commitment to provide intelligent market analysis for the region in a frank and open forum, Economist Conferences, part of The Economist Group, will host the Iraq Business and Investment Summit.

It will be held at the Ritz-Carlton Bahrain, Hotel and Spa on Wednesday 29th September.

The summit will provide a platform for panelists to discuss the broader Iraqi economy.

The event will feature senior ministers from the Iraq government and Kurdistan alongside business leaders and experts from The Economist Group, to engage in a debate on the critical issues affecting the investment outlook of Iraq.

Government speakers include Iraqi government spokesman Ali Dabbagh; Iraqi Minister of Industry and Minerals, Fawzi Al Hariri; Kurdistan Regional Government Minister of Planning, and Ali Sindi; and senior adviser to the prime minister Farhad Alaaldin.

Key findings of an Economist Intelligence Unit (EIU) white paper on international investor perceptions of Iraq will be distributed at the event.

The report is based on a programme of desk research, a survey of 367 senior executives, and 13 in-depth interviews with business executives, diplomats and investment experts.

The research argues that against a backdrop of difficult political and economic transitions, Iraq is once again opening its doors to foreign business overall.

The inflow of oil revenue, and expectations of substantial increases, has allowed the government to pass expansionary budgets and announce ambitious investment plans of approximately $186bn over the next five years. Eleven technical service contracts have been signed since last year that will see international oil companies help boost existing oil production, and the EIU forecasts that production could almost triple to over six million barrels per day by 2016.

Beyond the hydrocarbons sector, opportunities abound for enterprising businesses looking to enter the Iraqi market.

The study concluded that investor opinion about Iraq is divided with 49 per cent of respondents judging that “the ongoing violence means doing business in Iraq will remain too risky for some time”.

However, 51pc said their perceptions of Iraq as a place to do business had improved in the past two years, compared to only 12pc who said it got worse.

Construction was seen as the most promising sector after oil and gas with 46pc of investors seeing real estate as the country’s single most promising non-hydrocarbons sector, followed by chemicals, 25pc.

The report found that the most attractive aspect of Iraq is the country’s oil and gas resources, which are cited by 58pc as one of the top three attractions. However, Iraq’s untapped consumer market is almost as big a draw, selected by 49pc of those surveyed, with the chance of achieving first-mover advantage being the third most popular choice.

The full results of the survey, along with the latest issues on Iraq’s investment challenges and opportunities, prospects for recovery in the non-oil economy, and its political future, will be discussed at the summit.

Interview with the Chairman of the Advisory Committee to the Prime Minister, and Former Oil Minister, His Excellency Thamir Al Ghadhban.

Reproduced with permission from The Energy Exchange, whose Iraq Future Energy 2010 conference runs from 27-28 September 2010 at the Point Hotel Barbaros, Istanbul, Turkey.

With over 35 years direct and hands on experience and with a career spanning Basra Petroleum Company, Iraq National Oil Company and The Ministry of Oil, The Energy Exchange were delighted recently to have the opportunity to speak exclusively with His Excellency Thamir Al Ghadhban, Chairman, Advisory Commission to the Prime Minister of Iraq and former Minister of Oil to gain a snapshot of his views on the immediate and future development of Iraq’s oil and gas sector.

Q: The Energy Exchange: Mr Al Ghadhban, thank you for taking the time to speak with us today.

We are looking forward to having you join us in Istanbul in just 1 weeks time for our inaugural Iraq 2010: Future Energy where we are delighted that you will be contributing with a formal keynote presentation addressing our audience and helping them to understand the current and future outlook for the Iraqi upstream oil industry.

Ahead of the event, can you outline for us, your thoughts on when we might see the formation of Iraq’s next Government?  Are we any closer or do you believe there is still a way to go?

A: Thamir Al Ghadhban: It is true that the formation of the government has taken a long time since the election on 7th March, actually too long to be justified.

In view of the recent development in particular within the United Iraqi Alliance and the possibility that a candidate Prime Minister is going to be named within the next two weeks, it’s possible to say that Yes, we are going to witness the formation of the new government within the next few weeks.

Q: The Energy Exchange: The IOCs involvement in Iraq’s hydrocarbon development is still in its infancy.  Do you believe the Ministry of Oil taking on the possible role of a more regulating body in the future will help guide its future development through these early stages?

A: Thamir Al Ghadhban: No doubt at all of that.  The Ministry of Oil and also other Federal Ministries as well should concentrate on taking a regulatory role besides their planning, follow up and supervisory roles.

The Council of Ministers has recently approved a Road Map for the restructuring of state owned enterprises (SOEs) which is the first major step towards achieving such goals.

While the upstream oil and gas companies are excluded, other companies such as refining, gas processing and the downstream companies could be included.

Q: The Energy Exchange: There have been recent discussions surrounding the re-establishment of the Iraq National Oil Company (INOC), which would we believe see the creation of one of the largest oil companies in the world.

Do you see this as a positive and essential step forwards in creating a vital backbone to the industry?  Upon its formation, in your view, what do you see its main objectives being?

A: Thamir Al Ghadhban: Yes, and a draft law was prepared by a dedicated Committee which was then approved by the Council of Ministers and sent to the Council of Representatives.

No doubt that its re-establishment is an essential step in creating a modern, dynamic and capable upstream industry to handle the great challenges ahead and to achieve production targets.

The main objectives are to manage the oil and gas upstream industry efficiently, carry out the expansion scheme in all its aspects from field development down to export.

INOC from the first day of its re-establishment shall own all the present regional operating companies such NOC, SOC, MOC and any other company to be established in the future.

It is planned as stated in the draft law, to make it an independent company, financially and adminsterally speaking with an empowered management and having all sorts of flexibility including operating outside Iraq.

Mr Al Ghadhban, on behalf of The Energy Exchange, thank you for taking the time to speak with us today and providing us with an insight into your views on Iraq’s oil and gas sector ahead of your speech at Iraq 2010: Future Energy.  We very much look forward to hearing further in depth details in Istanbul and to the opportunity of asking some more questions!

Conference on bridging the research gap

The Kurdistan Regional Government (KRG) Ministry of Higher Education and Scientific Research will hold an international conference on revitalising scientific research, from 14 to 16 December in Erbil, capital of the Kurdistan Region. The goal of this conference is to connect university departments and individual scientists with their counterparts in international centres of excellence.

The primary aims of the conference are to

• Support researchers’ efforts to widen their contacts and networks
• Engage international academics in split-site PhD supervision
• Encourage world-renowned universities to establish long-term relationships and investment in the Kurdistan Region
• Encourage international companies with interests in higher education and scientific research to establish a foothold in the Kurdistan Region’s market

Workshops will include:

• Review, identify and analyse policies for research collaboration.
• Analyse policies and best practices for split-site PhD programs in specific scientific fields.
• Present programmes for developing links and MOUs between international and Kurdistan Region universities.
• Review access to the market and policies for investing.
• Review policies for widening scholarship programs.
• Recommend policies and best practices in research administration.

The Conference will give participants an opportunity to:

• Present proposals
• Discuss opportunities
• Network for new projects
• Visit historical sites of cultural interest

Please note that the conference has been rescheduled from October to December 2010.

Call for applications to participate in the conference

The conference is for higher education policy makers, administrators, academics and researchers.

For more information and to download a registration form, please see the conference website http://sites.google.com/a/mhe-krg.org/rrku/home

For more information about the KRG Ministry of Higher Education and Scientific Research please see http://www.mhe-krg.org/

Shell continues to work hard to deliver joint projects with its Iraqi partners, the South Gas Company, and expects a final agreement on the Heads of Agreement (HoA) soon, after the Iraqi cabinet endorsed the project end of June this year.  This is according to the architect of the 2008 agreement, Mounir Bouaziz, Shell EP International’s Vice President Commercial, New Business, LNG, Middle East and North Africa.  The HoA will eventually form the gas joint venture, Basrah Gas Co (BGC), with the immediate aim of boosting much needed power generation in Iraq.

Mounir Bouaziz, who was one of the first senior IOC executives to visit Baghdad after 2003, has since then spearheaded Shell’s activities in the region and most recently steered the winning consortium of the giant Majnoon oilfield bid.

Basrah Gas Company (BGC)
The establishment of the Basrah Gas Company (BGC) marks an important milestone in supporting Iraq to make a better use of the gas, which is currently being flared, according Mounir Bouaziz.  “Gas is a key part of the chain in delivering sustainable power generation”, he says, “together with our partner, the South Gas Company, we have been working hard to deliver joint projects that have resulted in an estimated 135 mmscfd of gas, and circa. 500 tonnes per day of LPG being gathered, that were previously flared.  This represents around 20% of the currently flared gas, and over a third of the current Iraqi LPG import requirements.”  He continues:  “We continue working with our Iraqi partners and expect a final agreement soon, as the Iraqi Cabinet endorsed the project end of June 2010. Now we are waiting for the final conclusion and ratification of the contracts by the Cabinet”.

Reduction of flaring
The joint venture between Shell, Mitsubishi and South Gas Company is set to capture and exploit gas flared from four giant southern Iraqi oilfields.  According to the Shell LNG specialist, it is difficult to provide an exact figure on how much the project will be able to reduce the flaring.  “What I can say is that progress is being made”, says Mounir Bouaziz, “the current level of flaring equates to approximately 20 million tonnes per year, in CO2 equivalent emissions. The JV would initially focus on gathering this gas in order to reduce the flaring and turn this resource, currently being wasted, into value for Iraq – by helping the country meet its domestic needs for power generation and creating a new income stream.”

Huge potential for gas exports
“We have worked for many years with the Ministry and the national Oil and Gas companies on a Gas Master Plan”, he continues: ”it is exciting to realise that Iraq could develop into a prominent gas industry, and match some of the top gas exporters. I am personally excited about the opportunity to play a role in this challenge.”

Mounir Bouaziz acknowledges and supports the fact that domestic needs take preference.  “There is no doubt about that”, he continues, “yet, there is still phenomenal potential for export through LNG and pipelines, simply because the large associated gas volumes expected from the ongoing oil-field developments. I would like to emphasise that any gas export will be subject to Government approval.”
Majnoon oil field:  local communities

In December 2009, Petronas joined Shell to form the winning consortium of the giant Majnoon oil field bid, one of the largest oil fields in the world, estimated by the Iraqi government to hold 38 billion barrels of oil in place.  According to Mounir Bouaziz good progress is being made.  “What pleases me is the news I am getting about the relationships and cooperation with the local communities in Majnoon. I visited these communities myself a day after signing the contract, and I am delighted about the acceptance of the Basrawis to the project and Shell’s presence.”

Visit www.Basrahgas.com for the latest information about the Basrah Gas Company (BGC).

Iraq Future Energy 2010
Mounir Bouaziz forms part of a distinguished list of speakers and experts who will discuss the exploration of Iraq’s rich oil and gas fields during Iraq Future Energy 2010, a top meeting energy executives and Iraqi regulators from 27-28 September in Istanbul, as global companies that have won contracts prepare to start the development of various fields.

The complete interview with Mounir Bouaziz and other top speakers at Iraq Future Energy 2010 are available at:  www.theenergyexchange.co.uk/iraq10

More high-level speakers at Iraq Future Energy 2010 include:

• His Excellency Thamir Al Ghadhban, Chairman, Advisory Committee to the Prime Minister of Iraq, Former Oil Minister
• Michael Townshend, President Iraq, BP
• Dr Abdul Hadi Al Hassani, Vice Chairman, Oil and Gas Committee, Iraqi Parliament
• Baroness Nicholson of Winterbourne, Executive Chairman, IBBC (Iraq Britain Business Council)
• Dr Thamir Al Uqaili, Independent Consultant in Iraq’s oil and gas sector

Event website:  www.theenergyexchange.co.uk/iraq10
Event dates and location:  27-28 September 2010 – Point Hotel Barbaros, Istanbul, Turkey

For more information:
Programme director: Claire Pallen c.pallen@theenergyexchange.co.uk
Mobile: +971 50 264 1202

For more information, interviews and media accreditation:
Communications manager:  Annemarie Roodbol
Tel.  +27 21 700 3558
Fax.  +27 21 700 3501
Mobile: +27 82 562 7844
Email:  annemarie.roodbol@clarionevents.com

Basra International Oil & Gas Conference and Exhibition

25–28 November 2010

International Exhibition Center, Basra – IRAQ

Our participants has passed 100!

Why Exhibit

• Have a key role in rebuilding of Iraqi Oil & Gas Sector.
• Build a network of new and productive business contacts and establish local partnerships which is important to do business in the region
• Meet with state officials whose purpose is to promote private sector involvement
• Develop your profile by supporting conference that will be taking place at the event or by being a sponsor of the exhibition

Basra Oil & Gas Conference Part

Our conference programme’s draft is ready and speakers will be put in order after the election of abstracts by our conference commitee.

Speakers whose abstracts are approved up-to-now:

Due date for submission of abstracts for papers has been extended to September 15th.

Sergi Tour Inc., the official travel agency for Basra Oil & Gas has announced the Accommodation Program. Please visit: http://www.basraoilgas.com/travel_and_accommodation.html

We have announced “official forwarder” and “official custom stand designers” of Basra Oil & Gas 2010. Please visit : http://www.basraoilgas.com/services.html

Please do not hesitate to contact us for further details…

An Iraqi oil industry veteran, Dr Thamir Al Uqaili, says there is a general belief that the production plateau targets (PPTs) of the international oil companies who have won contracts in Iraq are too ambitious and that export will face a marketing problem.

The exploration of Iraq’s rich oil and gas fields will be under the spotlight during Iraq Energy Future 2010, a top meeting of oil executives and Iraqi energy regulators in Istanbul from 27-28 September, as global companies that have won contracts prepare to start the development of various fields.  Dr Al Uqaili heads up a distinguished list of speakers and experts and will host a roundtable discussion at the event addressing operational challenges, opportunities, legislation, infrastructure and pipeline modernisation.

Common issues on different oil sites
A 30-year-old veteran of Iraqi oil companies such as the Iraq Petroleum Company, Basra Petroleum Company, Iraq National Oil Company, State Company of Oil Projects and the Iraq Drilling Company, Dr Uqaili comments on the challenges facing the IOC winners of the 1st and 2nd bid rounds as they prepare their teams and sites:  “There are certainly common issues, mainly use of production surface facilities, export terminals in addition to achieving and maintaining the contracted plateaus ‘PPTs’ (production plateau targets).”

Maintaining field pressure and boosting production is a key area for the IOCs to solve as they get started, says Dr Al Uqaili: “The fields are multi-reservoir fields of different characters. The IOCs are evaluating the characteristics and requirements of each reservoir. The evaluation includes revising recoverable oil under water injection and may be other solutions, to be able not only to achieve the production plateau target but to maintain it for some seven years. “

Export infrastructure

According to Dr Al Uqaili there are several production or export facilities that need upgrading and expansion to ensure Iraq can export its output.  “A new production centre like Hlafaya-Nahr-Umer-Majnoon down to the Fao [Faw] sea terminal and removing the bottlenecks in the pipelines from Rumaila and Zubair depots to the Fao terminal”, he continues, “as well as sea lines from Fao to the Basra sea terminal and installations of single buoy moorings (SBMs) in the Basra sea terminal”.

He also believes that the current bottleneck in the Iraq-Turkey export pipeline must be removed and perhaps a third line constructed.  Furthermore, should Iraq reach an agreement with Saudi Arabia, the Iraq Petroleum Saudi Arabia (IPSA) pipeline should be put into service.  He continues:”There is the possibility of constructing a pipeline each to Kuwait and Jordan.  Furthermore, we can resolve the current stalemate of the oil export from Kurdistan by using Iraq’s transport transportation system.”

Safety and security

“The main worries are security and political stability”, says Dr Al Uqaili, “that may severely affect fulfillment of a reliable national integrated plan that includes other sectors beside the oil sector. This integrated plan has not been started yet.”

High-level speakers at Iraq Future Energy 2010 include:

• His Excellency Thamir Al Ghadhban, Chairman, Advisory Committee to the Prime Minister of Iraq, Former Oil Minister
• Michael Townshend, President Iraq, BP
• Dr Abdul Hadi Al Hassani, Vice Chairman, Oil and Gas Committee, Iraqi Parliament
• Baroness Nicholson of Winterbourne, Executive Chairman, IBBC (Iraq Britain Business Council)
• Mounir Bouaziz, Vice President Commercial, New Business, LNG, Middle East and North Africa, Shell EP International

Event website:  www.theenergyexchange.co.uk/iraq10
Event dates and location:  27-28 September 2010 – Istanbul, Turkey

For more information:
Programme director: Claire Pallen c.pallen@theenergyexchange.co.uk
Mobile: +44 78 330 93510

For more information, interviews and media accreditation:
Communications manager:  Annemarie Roodbol
Tel.  +27 21 700 3558
Fax.  +27 21 700 3501
Mobile: +27 82 562 7844
Email:  annemarie.roodbol@clarionevents.com

AAIB View

A spokesperson from A.A.I.B. Insurance Brokers observed “a number of commentators have recently raised the question of the achievability of the documented production targets within the planned timescales, feeling that they may not be realistic considering the circumstances faced.

However, penalty clauses built into contracts if certain project milestones are not met and output targets are not achieved, are additional spurs for the International Oil Companies and the oilfield support and service companies to strive to meet contractual deliverables and get the Oil and Gas sector infrastructure refurbished and expanded as quickly as they are able to.

The challenges of operating in Iraq in this sector are formidable and should not be underestimated. The security situation, the bureaucratic procedures faced by businesses operating in the country, the current degree of political uncertainty, the transportation bottlenecks at Umm Qasr etc. have all been highlighted and are caused for concern.

However the International Oil Companies and their support network have faced similar obstacles before in many other challenging environments such as Angola and Nigeria, etc. and have gained valuable experience in overcoming such obstacles.

They have demonstrated adaptability and determination and they will certainly need these qualities in order to build a long term presence in Iraq and in supporting the modernisation and expansion of Iraq’s Oil and Gas sector.