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As our regular readers will already know, there is a wealth of opportunities available in all sectors of the Iraqi economy. In recent days alone we've reported developments in hospitals, oil infrastucture, and air transport.

Industry analysis and reports are important tools for many businesses interested in breaking into the Iraqi market, and one particular report that came across our desks recently is the EIC Iraq Energy Overview 2012, which will make particularly interesting reading for all involved in oil, gas and electricity.

The authors, EIC Consult,  expect a minimum investment of $50 billion over the next five years in Iraq's energy industry.

Admittedly this is the sector that will drive the Iraqi economy, but the scale of the investment required in other fields is similarly impressive. You can find our full collection of free and available-to-buy reports by clicking here.

The energy sector in Iraq is predicted to see investment of a minimum of US$50 billion over the next five years amidst a gradually improving security situation. This was one of the key findings of ‘Iraq – An Energy Overview 2012’, a comprehensive country report developed by EIC Consult, the market research and consultancy arm of the Energy Industries Council (EIC).

The EIC Consult report found that, despite continued concerns over security, political instability, and the lack of a settled investment environment, the proposed infrastructure overhaul and ambitious plans to increase oil & gas production present huge and long-term opportunities for service providers at every stage of the supply chain.

The report stresses that Iraq remains the largest and most underdeveloped oil nation in the world today, with fewer than ten wells drilled annually since 1980 and only 25% of the country comprehensively explored for energy resources. As of 2011, Iraq had around 80 commercial oilfields and daily oil production averaged 2.65 million barrels per day (b/d).

While, if completed, the deals signed during Iraq’s licensing rounds would raise production to 12 million b/d by 2017, the report predicts a more conservative estimate of a minimum of around 6 million b/d and a maximum 8 million b/d by the end of 2017.

Part of the reason for this slower growth, the report claims, is the lack of definitive revenue sharing, federal oil investment and national hydrocarbon laws, although with the previously delayed Fourth Licensing Round due to take place on May 30th and 31st 2012, the report cites causes for optimism. The report stresses, however, that the round’s status still remains far from certain, due to political wrangling between the Iraqi Executive and the Parliament.

ABB, the leading power and automation technology group, has won an order worth around $16 million from Mass Global Investment Company for the construction of a substation and SVC Light (static var compensator) system that will supply electricity to a new melt shop and steel rolling mill in northern Iraq. The order was received in the first quarter.

The steel manufacturing plant will have an annual melting capacity of 1,000,000 tons of billets. Its furnace capacity will be 120 tons and the plant will use scrap metal as input material. The rolling mill part of the plant will have an annual capacity of 650,000 tons of steel bars produced from billets.

ABB is responsible for the design, engineering, supply and commissioning of the project. The turnkey scope of supply includes 132- and 36-kilovolt (kV) switchgear with disconnector circuit breakers (DCBs), control and protection systems, transformers and the SVC equipment. The project is scheduled for completion by 2013.

“This solution will boost transmission capacity to serve the needs of the steel plant and enhance grid reliability in the region. The solution will also improve the quality of electricity supply and efficiency of the manufacturing process,” said Brice Koch, head of the Power Systems division.

ABB’s innovative, compact and energy-efficient DCB integrates the disconnecting function into the circuit breaker, thereby eliminating the need for separate conventional disconnectors. This reduces the footprint and minimizes maintenance requirements.

The station will also be equipped with an SVC Light reactive power compensation technology. SVC Light is part of ABB’s FACTS (flexible alternating current transmission systems) portfolio that enhances the security, capacity and flexibility of power transmission and distribution systems, and improves productivity and power quality. It’s highly dynamic response capability, makes it ideally suited for applications in the metallurgical industry where it helps mitigate electric arc furnace flicker, thereby improving efficiency.

Iraq's electricity ministry signed the $363 million, 1,014 megawatt, power plant deal with Egypt's Orascom Construction, which was announced in February.

The contract involves building the plant and installing six 169 MW generators, which Iraq bought from Siemens in 2008, at the facility in Baiji [Beiji, Bayji].

The project is expected to be completed within 21 months.

(Source: Reuters)

Nine years after the war and with billions of US dollars spent, electricity is still in short supply in Iraq.

The government is looking to use electricity-generating ships to meet the expected uptick in demand in the coming summer months.

In electricity-strapped provinces like Basra, where the power generated by a Turkish 'floating electricity plant' is diverted to the national grid, there is an especially high need.

Jane Arraf reports for Al Jazeera from Abu Falous Port in Basra:

(Source: Al Jazeera)

Siemens has announced that it has won a major order from the Iraqi Ministry of Electricity to supply the control and instrumentation system, field equipment, and spare parts for steam turbine generators  for Iraq's largest power plant at Al Mussaib [Musayyib].

The upgraded plant will be more reliable, and will have higher output and increased efficiency. Work is to be completed in 2013.

Siemens said the scope of supply includes new rotating elements for the four 320-megawatt (MW) steam turbines, generator rotors and the complete instrumentation and controls system.

The latest order follows the successful rehabilitation of the control system in unit 2 in 2009 and unit 1 in 2010, it added.

In addition to this, Siemens has also signed two separate contracts with Iraq’s Ministry of Electricity for gas-insulated switchgear (GIS) substations as part of the ministry’s plans to upgrade its 132-kV power transmission network.

Under the first contract, Siemens will supply and carry out civil and supervision works on six 132/33-kV GIS substations at various locations in the country.

The second contract covers the construction of another six 132/33-kV GIS substations on a turnkey basis in Iraq. The contracts for the substations are due to be completed by October 2013, the energy giant said.

Commenting on the deal, Dietmar Siersdorfer, Siemens Energy CEO, Middle East, said:

“Iraq is facing acute and critical challenges in providing reliable power to all the country's residents and Siemens is fully committed to assisting the Ministry of Electricity in meeting those challenges.

“We have a long history in Iraq and the wider Middle East, and understand that this is an issue of utmost importance to the Ministry and the people of Iraq. With our complete portfolio of proven products and service solutions, we are well-positioned to address this issue.”

In addition to the latest order for Al Mussaib power station, Siemens also performed the renovation of the control system in the Al Hartha power station near Basrah in 2010, which was destroyed by a fire.

(Sources: Trade Arabia)

Iraq has signed a contract to buy 250 megawatts of electricity from UAE's Oilfield Services.

Under the two-year deal, the company will provide two power plants docked on ships in Basra. The ships are expected to reach the port within a few weeks, and the plants will be connected to the grid by 31st July, the ministry said.

The contract is said to be based on a price of 7.5 cents per kilowatt hour.

Turkish ships are already docked at the port in Basra, which supply 270 MW per day to the national grid.

(Sources: Reuters, Arabian Business, Utilities-ME)

Iran's Mehr news agency reports that Iraq will soon sign a deal with Iran to start importing 25 million cubic meters (mcm) of natural gas per day in 2013.

The Iranian gas will be used to power four Iraqi electricity plants.

The giant South Pars gas field (pictured) in the Persian Gulf is shared by Iran and Qatar. The Iranian share has about 14 trillion cubic meters of gas, or about eight percent of the total world reserves, and more than 18 billion barrels of liquefied natural gas resources.

(Source: Tehran Times)

(Photo credit: Alireza824)

Inaugural speech by KRG Prime Minister Nechirvan Barzani, at the swearing in of the seventh KRG cabinet, Kurdistan Parliament, Erbil, 5 April 2012.

Your Excellency the Speaker of the Kurdistan parliament, your Excellency Vice President of the Kurdistan Region, Excellencies Members of the Kurdistan Parliament, dear audience,

We are glad that we are present today in front of the Kurdistan Parliament to announce the formation of the seventh cabinet of the Kurdistan Regional Government.

The people of Kurdistan are the source of legitimacy of the KRG

It is a huge responsibility that has been entrusted to us, and with my dear colleague Mr Imad Ahmad and all my colleagues in the seventh cabinet, we will work hard to meet this challenge.

The people of Kurdistan are the source of legitimacy for the Kurdistan Regional Government (KRG), and today we are honoured to receive their endorsement through their representatives in the Kurdistan Parliament.

In spite of its remaining shortcomings, the Kurdistan Region has witnessed tremendous political, economic and social development. However, we will continue our efforts to fulfill our duty and the promises that have been made to our people.

We thank our dear friends Dr Barham Salih the Prime Minister of the Sixth KRG Cabinet, his Deputy Mr Azad Barwari and the members of their cabinet for the important work that they accomplished in the time that they had. Their efforts are appreciated both by us and by the people of Kurdistan.

We would also like to faithfully remember and appreciate the sacrifices of all the martyrs of the Kurdistan liberation and freedom movement. We promise to continue the struggle for the development and the prosperity of our people in their memory, for we wouldn't be here today if it hadn’t been for their struggle and sacrifices.

A strong will

Today, we have come here to the parliament of Kurdistan with a strong will. While we will continue the work of the fifth and sixth cabinets, we will also partner with the Kurdistan parliament to implement a new program, with strategies and initiatives that will take into consideration the political, economic and social changes that have taken place in recent years.

Recently, some countries of the Middle East and North Africa have a begun to see the emergence of democracy and justice. The Kurdistan Region welcomes these changes, and supports any change that is in the direction of democracy, freedom and human rights. By contrast, the Kurdish Spring began twenty years ago when the people of Kurdistan rose up, with the support of the Kurdistan political parties, and managed to end the authority of one of the most dangerous dictators of that time in our land, choosing to install the rule of law, democracy and freedom without the support of foreign countries.

Abu Dhabi National Energy (TAQA), a state-owned oil explorer and power supplier, said it bought a 50 percent interest in a power plant in Iraqi Kurdistan.

According to Reuters, the plant, which has been operating since 2009, has a capacity of 750 megawatts, with an additional 250 megawatts under construction.

The company signed a joint venture agreement with Mass Global Investments for the purchase.

"There is a 15 year take or pay agreement in place with the Ministry of Electricity, Kurdistan Region. The facility receives gas from an underground pipeline connecting the Khor Mor gas field to the plant," a company spokesman told Reuters.

The National reports that the company also has a stake in WesternZagros, the Canadian oil company that is exploring two blocks in Kurdistan.

(Sources: Reuters, Bloomberg, The National)