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Iraq Business News is delighted to bring you the latest Iraq Market Tracker report from Dunia Frontier Consultants. The market tracker highlights the activities and market performance of a basket of publicly traded firms who derive a significant percentage of their revenues from operations in Iraq, but are traded on foreign exchanges: a proxy Iraq play as much as practicable. It also identifies and analyzes the primary political and security events that occur in country that have market-moving implications.

Click here to access the report.

Companies Mentioned:

DNO, ExxonMobil, Shell

Action Calls:

• Moves afoot as Maliki pushes back on rivals: Maliki shows once again why he maintains his position on top of Iraqi politics.
• Shell negotiates cut to Majnoon output target: As we expected, Exxon is not the only one to benefit from their Kurdish PSC move.
• DNO lifts reserve estimates: DNO's adjustment - opportunity to revisit our Kurdish oil thesis.

Headlines:

• Move towards police supremacy continuing: One small potential step towards normalization of Iraq.
• Sadrist PDB asserting self in Basra: Potentially an indicator of SoL-Sadrist relations.

Calendar Events Discussed:

• May 23 - P5+1 Nuclear Talks in Baghdad
• May 30-31 - 4th Round Oil and Gas Auction
• June 15 - Parliament returns from 6 week break

Click here to access the report, or to add your email address to Dunia's mailing list to receive the Iraq Market Tracker via email.

His Excellency Dr Khalaf Samad Khalaf (pictured), Governor of Basrah, is guest of honour at IBBC’s Iraq Day Conference at London’s Mansion House on May 17th 2012 attended also by executives from the world’s leading corporations including major oil and construction companies.

As rising oil sales supercharge the Iraqi economy Dr Khalaf’s keynote address will outline business opportunities in the Basrah region for Western firms.

Delegates will hear millions of new homes are being planned along with highways, hospitals, schools, power plants, airports, ports and sports stadiums.

In short: contracts worth millions of dollars are up for grabs.

Other keynote speakers include former NATO Secretary General, Lord Robertson of Port Ellen, British Minister of State for Universities and Science, Rt.Hon. David Willetts MP and IBBC Executive Chairman Baroness Nicholson of Winterbourne.

Companies sending delegates include: Aegis, AMEC, Basrah Engineering, BP, CCC,Chevron, Clyde & Co, Control Risks, Dome Group, ExxonMobil, Fluor Ltd, Foster Wheeler, G4S, Gulfsands, KBR, KCA Deutag, Kier, Mott MacDonald, Olive Group, Petrofac, PwC, Shell, SKA International, South Oil Company, Trinity Group, Vitol, Weir Group and Wood Group.

Other delegations include: UK Trade and Investment, The Foreign and Commonwealth Office, UK Export Finance ECGD, UK Border Agency, Basrah Chamber of Commerce and Basrah Business Council, Embassy of the Republic of Iraq, London.

The battle for Iraq’s oil goes on. Iraqi Kurdistan is intent on controlling its own oil, Baghdad is intent on wresting that control from them. Will the impasse ever be solved? Only if both sides see reason, one commentator argues in this article from NIQASH.

Ever since oil was found in Iraq nearly a century ago, there has been a battle to control the most important commodity the country has known. In the beginning, the struggle over oil played out between foreign or colonial powers. Then when the Iraqi oil industry was finally nationalised in the early 1970s, the struggle for control of the oil industry became internal. Today it dominates domestic politics.

Ever since the government of the semi-autonomous region of Iraqi Kurdistan, in the north of the country, decided to come up with its own version of oil and gas laws in 2006 and 2007, the Kurdish and the Iraqi federal government in Baghdad have been on a collision course.

The Kurdish formulated their own laws because they were largely frustrated by the federal government’s inability to come up with such a law and to start to develop the oil industry. Iraqi Kurdistan then began to negotiate contracts with international oil companies and to move on without Baghdad’s explicit approval.

Since then the powers-that-be have been deadlocked, with neither side willing to compromise. Baghdad is refusing to recognise contracts made by the Kurdish region and threatens to blacklist international companies operating there. In return the Kurdish halted oil exports from out of their region.

In fact, it is only relatively recently that the Kurds have been able to control the oil under their own feet – and it is hard to imagine they would ever give up those rights, especially now that huge companies like Exxon Mobil and other major oil companies are lining up to do business in the region.

Advertising Feature

Iraq Business News is delighted to bring you the latest Iraq Market Tracker report from Dunia Frontier Consultants. The market tracker highlights the activities and market performance of a basket of publicly traded firms who derive a significant percentage of their revenues from operations in Iraq, but are traded on foreign exchanges: a proxy Iraq play as much as practicable. It also identifies and analyzes the primary political and security events that occur in country that have market-moving implications.

Click here to access the report.

Companies Mentioned:

ExxonMobil, Total

Action Calls:

• Sadr threatens no-confidence within 15 days:Not likely to result in no confidence, but may result in movement on some issues.
• Exxon signs contract to drill 20 wells with IDC: Signals Exxon's commitment to West Qurna 1, and tacit support at Ministry of Oil.
• Our take on 4th Round contracts: Auction will only be first test for viability of exploration under fixed payments.

Headlines:

• Qubad Talabani to return to Erbil: Most likely succession planning and sign of unity, but also signal to Baghdad?
• Tensions with Sadr in Baghdad, Basra: Look to Maliki's relations with Sadrists as signal of how far he's willing to push.

Calendar Events Discussed:

• May 23 - P5+1 Nuclear Talks in Baghdad
• May 30-31 - 4th Round Oil and Gas Auction

Click here to access the report, or to add your email address to Dunia's mailing list to receive the Iraq Market Tracker via email.

Afren plc announced on Wednesday several senior technical management appointments for its operations in the Kurdistan region of Iraq.

Appointment of Managing Director Afren MENA

Afren announces the appointment of Mr David Kennedy as Managing Director Afren MENA, who will assume responsibility for Afren's operations in the Kurdistan region of Iraq, including the major Barda Rash field development. Prior to joining Afren, Mr Kennedy held various senior positions within Hess Corporation, where he was most recently Country Manager Hess Equatorial Guinea, and Chevron Corporation, where he held senior management roles internationally in Nigeria, Angola, Indonesia and Kazakhstan. With over 30 years of upstream industry experience, Mr Kennedy holds a B.S in Petroleum Engineering from the University of Texas at Austin. Mr Kennedy will be based in Afren's Erbil office in the Kurdistan region of Iraq.

Operations and subsurface appointments

In addition, Afren is pleased to announce two further senior appointments. Mr Mark Maurin joins as Operations Manager for the Kurdistan region of Iraq and Dr David Goggin joins as Subsurface Director.

Mr Maurin will assume responsibility for the safe and efficient management of Afren's operations in the Kurdistan region of Iraq, including field development and production operations at the Barda Rash field development. Mr Maurin has over 25 years of international upstream oil and gas experience, and joins Afren from Hess Corporation where he most recently fulfilled operational management roles at Hess Equatorial Guinea. Prior to this, Mr Maurin held senior engineering, operational and project management roles at ExxonMobil, including international assignment in Nigeria. Mr Maurin has a B.S in Petroleum Engineering from Texas Tech University.

Dr Goggin will assume responsibility for Afren's post-exploration stage subsurface activities including subsurface aspects of the Company's field development and production activities. Dr Goggin has over 24 years of upstream industry experience and joins Afren from Hess Corporation where he was most recently Subsurface Director (Production) Offshore Americas and West Africa. Prior to this, Dr Goggin held senior reservoir engineering and subsurface management positions with Chevron Corporation. Dr Goggin holds a B.S, M.S and PhD in Petroleum Engineering from the University of Texas at Austin.

Iain Wright, Technical Director of Afren, commented:

"As we move towards first oil at the major Barda Rash field development and assess the transformational discovery on the Ain Sifni exploration block, I am delighted to further strengthen our technical capabilities in the Kurdistan region of Iraq."

Advertising Feature

Iraq Business News is delighted to bring you the latest Iraq Market Tracker report from Dunia Frontier Consultants. The market tracker highlights the activities and market performance of a basket of publicly traded firms who derive a significant percentage of their revenues from operations in Iraq, but are traded on foreign exchanges: a proxy Iraq play as much as practicable. It also identifies and analyzes the primary political and security events that occur in country that have market-moving implications.

Click here to access the report.

Companies Mentioned:

ExxonMobil, WesternZagros

Action Calls:

• Sadr in Erbil to mediate on crisis : Sadr won't resolve stalemate. Watch Baghdad and Erbil for signs.
• WesternZagros discovers new oil field, shares rise 20%: Hopefully those who may have sold into strength were able to get back in.

Headlines:

• NA Still Supports Maliki...With Conditions: Reminder of limits of Maliki's power.
• Second SPM exports two million barrels in first shipment: Kurdish oil becomes less relevant, though not totally irrelevant.

Calendar Events Discussed:

• May 23 - P5+1 Nuclear Talks in Baghdad
• May 30-31 - 4th Round Oil and Gas Auction

Click here to access the report, or to add your email address to Dunia's mailing list to receive the Iraq Market Tracker via email.

Iraq's the deputy head of the parliamentary security and defence committee, Iskander Witwit, has told Reuters that Iraq will take delivery of the first 24 of 36 F-16 fighter jets it has ordered from the United States at the beginning of 2014.

He said the first 24 planes would make up two air force squadron, and Iraq would be in the market for more planes in the future.

"Iraq intends to have equipment which is more developed than neighboring countries have. Small neighboring countries like Kuwait even have five squadrons," Witwit said.

The announcement has increased tensions between Erbil an Baghdad. According to AFP, Massud Barzani, the president of Iraq's autonomous Kurdistan, said he opposes the sale of F-16 warplanes to Iraq while Nuri al-Maliki is premier, as he fears they would be used against the region.

"The F-16 must not reach the hand of this man [Maliki]," Barzani said. Placing some hope in the region's relationship with ExxonMobil, he added: "If ExxonMobil came, it would be equal to 10 American military divisions ... they will defend the area if their interests are there."

(Sources: Reuters, AFP)

The CWC Group has announced its program for the Iraq Petroleum 2012 Conference; focusing on the new joint venture partnerships in Iraq’s oil and gas industry and the best model of cooperation, this international senior level event is a must attend for industry professionals and government officials.

Other key topics include: Iraq’s New Upstream Opportunities; Boosting Iraq’s Oil & Gas Infrastructure; Iraq’s Oil & Gas Resources Potential; Kurdistan’s Oil & Gas Joint Ventures & Partnerships; Gas & Power Development in Iraq; Financial Framework in Iraq for Energy Investment and Positioning Iraq in the World Energy Map.

Taking place on 18-20 June 2012 at the Intercontinental Hotel, Park Lane, London, a post Conference workshop hosted by Clyde & Co will follow the two day event, and provide a legal toolkit focused on the contractual, legal and commercial framework for oil and gas contracts in the Iraqi energy industry. It will further present a real assessment of Iraq’s oil and gas infrastructure requirements and provide updates on the realities and dynamics of the current Iraqi oil and gas landscape.

Iraq Petroleum is internationally renowned and provides a platform for key government officials and senior oil and gas executives to network, discuss current issues and promote innovative ideas. The Conference is considered as the annual meeting place for the industry and is an outstanding opportunity for national and foreign companies to strategically engage with key stakeholders. Sponsors for the event include: Shell, ExxonMobil, Total, Genel Energy, Occidental, Aspect Holdings, General Exploration Partners, Technology Partners, Clyde & Co, Crescent Petroleum, Motorola and Mubadala.

Advertising Feature

Iraq Business News is delighted to bring you the latest Iraq Market Tracker report from Dunia Frontier Consultants. The market tracker highlights the activities and market performance of a basket of publicly traded firms who derive a significant percentage of their revenues from operations in Iraq, but are traded on foreign exchanges: a proxy Iraq play as much as practicable. It also identifies and analyzes the primary political and security events that occur in country that have market-moving implications.

Click here to access the report.

Companies Mentioned:

Afren, DNO, Exxon, Gulf Keystone, Genel Energy, Heritage Oil, WesternZagros

Action Calls:

• Escalation in rhetoric against Maliki: Maliki apparently overreaches with IHEC arrests as Sadr joins protests.
• Afren shares up on Kurdistan oil discovery: Afren joins list of oil firms with Kurdish discoveries.

Headlines:

• Exxon excluded from 4th round as auction terms revealed: Exxon exclusion not surprising. Bigger news is lack of significant concessions to bidders.
• Second SPM Comes Online: Puts Kurdish threats to cut off exports in perspective.
• AQI Claims Thursday Attacks: Lull broken, but larger trend is towards decreased violence.

Calendar Events Discussed:

• May 30-31 - 4th Round Oil and Gas Auction

Click here to access the report, or to add your email address to Dunia's mailing list to receive the Iraq Market Tracker via email.

Exxon Mobil is conspicuously absent from the finalized list of 47 pre-qualified bidders for the Iraq's fourth round of energy exploration rights.

The Petroleum Contracts and Licensing Directorate (PCLD) at the Ministry of Oil has confirmed that the auction will take place as scheduled on May 30-31.

The full list of pre-qualified companies is shown below: