Custom Search

Dana Gas has announced the production of sales gas from Pearl Petroleum's Khor Mor Gas Plant in the Kurdistan Region of Iraq (KRI) reached a new record level of 430MMscf/d on 15 December 2020.

Fourth quarter's average gas production as of 15 December 2020 is 400MMscf/d, an 8% increase on Q4 2019's average production of 370MMscf/d.

Pearl Petroleum has also restarted expansion plans in the KRI on the 15 December. This follows the suspension of work in March 2020 due to Covid-19 restrictions. All parties working on the project are fully committed to executing the expansion project as quickly and as safely as possible.

The Company expects to complete the first 250 MMscf/d gas processing train in Q1 2023 and is also examining ways to reduce the schedule further.

In line with the Kurdistan Regional Government (KRG) commitment to review the outstanding December 2019 to February 2020 invoices totalling $30 million, Dana Gas notes Pearl Petroleum's confirmation of receipt of a payment plan proposal from the KRG to pay down past receivables during 2021 as long as Brent remains above $50/bbl.

Pearl Petroleum continues to engage constructively with the KRG on this matter to ensure timely payment. The KRG has maintained regular monthly payments since March 2020.

Dr Patrick Allman-Ward, CEO of Dana Gas, commented:

"Our joint operations at Pearl Petroleum continue to set new records with production output whilst maintaining an excellent HSSE track record, validating our long-term strategy to concentrate on further developing our world-class fields in the KRI. We are getting tremendous support from the KRG, which has given us the green-light to restart the civil engineering works under strict health protocols and controls.

"This clears a major hurdle and puts us on a path for first gas from the new train in Q1 2023. I am also pleased to provide an update on our Q4 average gas production, which is 8% higher at 400MMscf/d than in the same period last year.

"In addition, our commitment and contribution to the people of the KRI remains as strong as ever. Our partnership is now in its 12^th year. 2020 has been very challenging due to the restrictions imposed by the global pandemic but the team has worked tirelessly to keep our operations ongoing throughout the year, adhering to strict health and safety protocol to ensure the continuous flow of gas to power the KRI's electricity needs."

(Source: Dana Gas)

By John Lee.

GE Gas Power has said it has "marked a major milestone" by synchronizing two GT13E2 gas turbines to the national grid at the Zubair Permanent Power Generation Plant.

The facility is owned by the Basra Oil Company (BOC) and located at the Zubair oil field, about 20 kilometers from the city of Basra.

ENI Iraq B.V. is responsible for developing the oil field and had awarded a contract to GE for the engineering, procurement, installation and commissioning of the power plant.

Two other GT13E2 units at the site had previously been synchronized to the grid in summer 2020. The new additions have taken the total generation capacity of the site up to 700 megawatts (MW).

Joseph Anis, President & CEO of GE Gas Power in the Middle East, North Africa and South Asia, said:

"With Iraq's population growing at over 2 percent per year, the demand for reliable, affordable electricity continues to increase. Every megawatt added to the grid can make a significant impact to the quality of life of the Iraqi people. 

"GE is honored to work together with ENI to support the country's socioeconomic development by delivering much-needed electricity to power growth and prosperity for present and future generations."

(Source: GE)

From the Al-Bayan Center for Planning and Studies. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Powering Iraq: Challenges Facing the Electricity Sector in Iraq

On February 21, 2020, Iraq recorded its first case of the novel coronavirus. Five months later, total recorded cases are 129 000 at the time of writing, and daily reported deaths almost 100.

The crisis has battered the country's economic development plans, and put an indefinite question mark over the realisation of a massive US$ 15 billion electricity infrastructure upgrade roadmap announced by former Prime Minister Adel Abdel Mehdi in April last year.

Simultaneously, global energy markets continue to struggle ever since the oil market collapsed between March and April, briefly plunging oil price will drop to low single-digit.Iraq's hydrocarbon revenues have, as a result, fallen to their lowest since the early years after the 2003 US invasion.

Click here to read the full report by Robin Mills And Maryam Salman.

The Ministry of Foreign Affairs of the Republic of Korea (MoFA) is supporting the United Nations Development Programme (UNDP) with an additional USD 5M million to support stabilization activities in areas liberated from the Islamic State of Iraq and the Levant (ISIL) in Iraq.

The Republic of Korea's contribution will be channeled through UNDP's Funding Facility for Stabilization (FFS) which supports the return of Internally Displaced Populations from the five ISIL liberated governorates. This is Korea's sixth contribution to FFS since 2015, bringing its total contribution to US$23,950,000.

Based on priorities identified by the Government of Iraq and the local authorities, UNDP will use the generous contribution from Korea to rehabilitate basic infrastructure and repair damaged houses to facilitate the return of displaced Iraqis from Sinjar and surrounding areas.

The focus on Sinjar in Iraq's Ninewa governorate, homeland of the Yazidis and other minority groups who suffered atrocities under ISIL, stands as a key area for UNDP's stabilization programming.

"In mid-2020, Sinjar experienced a marked increase in returnees compared to previous years. UNDP continues to prioritize this area and is upscaling its efforts to meet the critical needs of returnees across a number of sectors including housing, electricity, water and education, as well as livelihoods creation and social cohesion," says Resident Representative of UNDP, Zena Ali-Ahmad.

"We are very grateful to the Republic of Korea for this important and timely contribution," adds Ms. Ali-Ahmad.

"I am very pleased that the Republic of Korea has provided contributions to FFS for six consecutive years since its launch in 2015, and I hope this year's contribution can help facilitate the implementation of UNDP's stabilization programme during its three-year extension until 2023." said Jang Kyung-Wook, Ambassador of the Republic of Korea to Iraq.

"Supporting internally displaced persons and returnees in areas liberated from ISIL is one of the main priorities in our assistance to Iraq, and we will continue to work with UNDP to help them rebuild their lives and achieve sustainable livelihoods and social cohesion."

To date, UNDP's Funding Facility has implemented over 2,560 projects in 31 locations in Ninewa, Anbar, Salah al-Din, Diyala and Kirkuk.

(Source: UN)

By John Lee.

The Iraqi Cabinet held its weekly meeting on Tuesday under the chairmanship of Prime Minister Mustafa Al-Kadhimi.

Following discussions, the Cabinet decided to:

• Approve the recommendations from the specialist working group to complete the comprehensive database of all those who work in the public sector, and to allocate a unique employment number to each employee by the Central Bureau of Statistics at the Ministry of Planning;
• Expedite the development of the unified salary structure for the public sector that supports electronic payment and receipt of salaries;
• Authorise the Minister of Finance to sign an agreement to finance multiple annual maintenance projects (fourth phase) which is implemented by GE for the Ministry of Electricity, and guaranteed by UK Export Finance (UKEF).

(Source: Govt of Iraq)

Norway renews commitment to stabilization with new $7.7m contribution

The Government of Norway has contributed NOK 70,000,000 (US$7.7 million) to the United Nations Development Programme (UNDP) Iraq's Funding Facility for Stabilization (FFS), which supports stabilization and the return of internally displaced persons (IDPs) from the five governorates liberated from the Islamic State of Iraq and the Levant (ISIL, also known as Da'esh).

This is Norway's twelfth contribution to FFS, bringing the country's total contribution to $56.2 million.

"We are grateful to Norway for this timely additional contribution to the FFS, which was recently extended until 2023 due to the urgent priorities that remain in liberated areas. Under this extension, we will see a greater focus on areas with the hardest-to-return populations to facilitate more returns, as well as additional emphasis on sustainable livelihood activities and sustainability concerns," says the UNDP Resident Representative for Iraq, Zena Ali Ahmad.

"Since 2015, Norway has been an invaluable partner to UNDP Iraq, and we are extremely grateful for its continued commitment to peace and stability in Iraq, as the country continues to reel from the devastation of the ISIL conflict," she adds.

Norwegian Ambassador to Jordan and Iraq, Ambassador Tone Allers said: "I am highly impressed by the work that the UNDP is doing in Iraq. The FFS secures not only a lasting development and stabilization of Iraq through the rehabilitation of areas demolished in the ISIL conflict, but also ensures the possibility for many Iraqis to return to their homes in a safe, sustainable and dignified manner. I have myself seen how critical this is for bringing peace and a better future to the Iraqis, and Norway is proud to continue our support for the UNDP and FFS in this work."

Established in June 2015, FFS works in the five liberated governorates of Anbar, Diyala, Kirkuk, Ninewa and Salah Al-Din. To date, UNDP has mobilized $1.3 billion from 27 donors and partners, and from the Government of Iraq, and has provided more than 10 million Iraqis with improved infrastructure and services, under critical sectors such as electricity, housing, health, water, education, sewerage, livelihoods, municipalities, roads and bridges, capacity support and social cohesion. It has assisted 4.7 million IDPs to return home.

(Source: UNDP)

JICA and UNDP Iraq Renew Partnership Agreement to Accelerate Infrastructure Projects

The Japan International Cooperation Agency (JICA) and UNDP Iraq have signed a renewed partnership agreement to monitor and support the acceleration of the implementation of socio-economic infrastructure projects in Iraq.

The projects are implemented by the Government of Iraq (GoI) with loan assistance from JICA with the aim of improving the economic recovery and living conditions of Iraqi communities, focusing on key sectors including electricity, water and sanitation, oil, irrigation, transportation, industry, health and Fcommunication.

JICA Chief Representative Kei Toyama states:

"Since 2009, UNDP has been an important partner for JICA in Iraq. Our partnership has contributed to the strengthened monitoring mechanism of GoI, addressing challenges faced by those projects. We look forward to further acceleration of GoI's project implementation under our joint supports under this 10th agreement."

According to Resident Representative of UNDP Iraq Zena Ali Ahmad:

"The signing of this renewed agreement between UNDP and JICA demonstrates the steadfast commitment of the Government and people of Japan to sustainable development in Iraq and its communities, and we look forward to seeing the results that this strengthened partnership will bring, particularly amidst the challenging context of the COVID-19 pandemic."

As a result of the socio-economic impacts of COVID-19 Iraq needs continued and focused support from the international community. With the signing of the renewed agreement, the GoI, JICA and UNDP commit to projects that will boost public services and private sector development in Iraq.

(Source: UN)

Kurdistan's Deputy Prime Minister HE Qubad Talabani to Speak at the Virtual Kurdistan Iraq Economic Forum

• Inaugural Conference set to navigate the economic future Kurdistan and Iraq
• Conference will include online sessions available live and on demand for all attendees
• Delegates will gain insights into the latest policy and project announcements, crucial for successful investment decisions in the region as well as the key recovery strategies post pandemic
• Virtual Event will take place on 17 - 18 November through an interactive platform

CWC and Global Future Energy are hosting the Kurdistan-Iraq Economic Forum with the support of the KRG High Commission to the UK.

Sponsored by Chevron, the Forum aims to be the first gathering dedicated to the economic diversification of the Region, and will include 6 panel sessions, enabling senior decision makers across multiple industries to engage with each other virtually to address current issues and facilitate practical solutions to advance the economy in these challenging times.

Confirmed speakers include:

1. HE Qubad Talabani, Deputy Prime Minister, Kurdistan Regional Government of Iraq HE
2. HE Safeen Dizayee, Head of the Department of Foreign Relations, Kurdistan Regional Government, Iraq
3. HE Karwan Jamal, Kurdistan Region High Representative to the UK, London
4. HE Dr Amanj Raheem, Cabinet Minister, Member of the Oil & Gas Council, Kurdistan Regional Government, Iraq
5. HE Kamal Muslim Saeed, Minister of Trade & Industry, Kurdistan Regional Government, Iraq
6. Matthew M. Zais, Ph.D., Principal Deputy Assistant Secretary, Office of International Affairs, US Department of Energy

"The Kurdistan Region has an opportunity to become an important commercial centre in Iraq and the region in order to attract foreign investments to implement strategic projects" said Prime Minister Barzani last month at the Supreme Economic Council meeting in the presence of Deputy Prime Minister Qubad Talabani and a number of ministers and governors.

In light of the current unprecedented circumstances, decision-makers and influencers from various industries will gather to unlock new business opportunities on all levels of the economy   by addressing the following themes:

• Extending the Value Chain beyond Producing Oil: How the Oil Sector Could Enrich Economic Diversification?
• Kurdistan plans to privatize the electricity sector, opportunities for investors
• Diversifying the energy mix to increase the role of gas and renewables
• How to grow non-oil sectors that will provide a sustainable source of growth?
• Fiscal reforms packages to support the recovery of post pandemic
• Maximizing strategic alignment with the major companies to support in building the region's infrastructure
• Promoting the growth of the economy through innovations in procurement and financial supply chain management processes

Over the past decade, the CWC Iraq Portfolio has hosted over 100+ Ministers and Senior Officials at various events. The Inaugural Kurdistan Iraq Economic Forum will bring together the international commercial executives interested in investing in Kurdistan.  CWC, now a brand of Global Future Energy, will again provide the only international platform for high level stakeholders in the Region to convene.

For further information, visit https://www.kurdistan-economic.com/

To access the full programme, please click here.

$660m required to cover priority stabilization needs in areas liberated from ISIL

Support to Iraq's displaced populations through the rehabilitation of critical infrastructure and services damaged in the ISIL conflict, livelihoods creation, local capacity development and social cohesion will continue under a three-year extension of the United Nations Development Programme (UNDP) in Iraq's flagship programme, the Funding Facility for Stabilization (FFS)

The extension, which was endorsed by the Government of Iraq and international partners at the FFS Steering Committee held today in Baghdad, requires $660 million through FFS to cover the remaining priority needs of areas liberated from ISIL - Anbar, Diyala, Kirkuk, Ninewa, Salah Al-Din.

The estimate was based on a comprehensive needs assessment undertaken by UNDP this year in consultation with the Government of Iraq, within the mandated sectors and parameters of FFS.

To date, UNDP has mobilized $1.3 billion from 27 donors and partners, and from the Government of Iraq, and has provided more than 10 million Iraqis with improved infrastructure and services, under critical sectors such as electricity, housing, health, water, education, sewerage, livelihoods, municipalities, roads and bridges, capacity support and social cohesion through local community reconciliation activities. It has assisted 4.7 million internally displaced persons (IDPs) to return home.

The extended programme will include:

• A focus on areas that have experienced difficulties in returns;
• Rehabilitation of infrastructure that supports productive sectors like agriculture and small business;
• Sustainable livelihood activities that promote employment opportunities;
• Strengthened mainstreaming of human rights principles, environmental sustainability, conflict sensitivity and gender in all sectors of work;
• A clear exit strategy in its final year 2023, handing over ownership of the implementation of immediate stabilization activities to the Government of Iraq.

Speaking on behalf of the Secretary-General of the Council of Ministers Secretariat (COMSEC), the Deputy Secretary-General of COMSEC Dr. Farhad Neamattallah Hussain reiterated the Government of Iraq's commitments to supporting the return of displaced Iraqis.

"We welcome the decision to extend FFS, which has made a tremendous impact on stabilizing the areas liberated from ISIL. However, more work remains to be done. There is still an urgent need to deliver on the stabilization needs of displaced communities, and to bolster social cohesion and community reconciliation efforts to ensure people can both rebuild their lives, and peacefully co-exist.

"With assistance from UNDP and the generous support of the international community we are committed to making this happen," added Dr. Hussain.

"Today's extension of FFS marks a critical milestone for Iraqis who are still displaced across the country", says Resident Representative of UNDP Iraq, Zena Ali Ahmad.

"We will continue to work alongside the Government of Iraq to create the necessary conditions for safe and dignified returns, with a greater focus on the hardest-to-return populations. The extension of FFS emphasizes the strong partnership between UNDP, the Government of Iraq, and the international community, who, through their generous support since the progamme's inception in 2015, have been instrumental in bringing millions of displaced Iraqis home. We are extremely grateful for their commitment and are proud to continue working together to bring stability, peace, and prosperity to Iraq under this programme extension," she adds.

To guide its programming and deliver on stabilization priorities, FFS will continue to use its proven agile and transparent mechanisms such as special anti-corruption measures, ability to conduct rapid assessments, dedicated service center to fast-track procurement, multi-layered monitoring, and the use of local labor.

FFS was established in 2015 as a mechanism to channel funds for the Iraqi Government's immediate stabilization priorities, to support the return of IDPs from the five liberated governorates. With much appreciation for the continued trust and confidence of partners, UNDP aims to continue delivering at scale to support returns and protect the stabilization gains in the areas liberated from ISIL.

(Source: UN)

Why you should come to the IBBC Conference in Dubai, entitled 'Opportunity in Adversity'

On 19^th November the Iraq Britain Business Council (IBBC) is holding its Autumn conference in person at the Address hotel Dubai Marina.

Some would say it's a brave decision, considering COVID, but others are keen to take up the challenge and opportunity to engage, meet, listen to expert business voices of Iraq and overall have proper opportunities for networking.

Not only do we have a good level of members signed up to attend, but also one of the strongest line ups of speakers, ready and willing to address the opportunities for Iraq in 2020.

The backdrop to this conference is not just COVID, but the election of a new American President, rising oil prices, a fundamental change in the way oil and gas companies are globally which will also affect their work in Iraq, a Government willing and able to make significant changes, in the way finance operates, investors can start up and a white paper that will impact a range of activity and on-going digital modernisation.

All these topics will be covered, and we are expecting significant speakers and attendees from our membership and the Ministry of Oil, the Deputy Minister of Electricity, and online from the World Bank, Central Bank payments director and Ministry of Communications, Mastercard and Zain Cash to name a few.

You can hear about one of the biggest changes as the oil and gas companies redefine themselves as Energy companies, and vertically integrate fuel with electricity generation. BP, Shell, Siemens and Ministry of Electricity will address this and other matters on the Energy panel.

On the Finance panel, we are looking at how to operate successfully in the present very challenging financial situation of the country. New proposals by the Government's white paper will also be discussed and how these align with the need of private sector.

Finally, the Tech Forum with the World Bank on the digitisation of Iraq, the progress that is being made with GOI, and to hear from Mastercard and GSMA and Thinkbank on consumer online behaviour and attitudes.

Now is a great opportunity for change and we believe Iraq won't let the opportunity go to waste. Iraq is at a critical inflection point and the Government understands the importance of encouraging the private sector as a vehicle to solving investment, jobs and diversifying the economy at this time, which is why we are expecting a strong attendance from members and speakers alike from sectors crucial to Iraq's future.

As we look to the coming year, we see a Government making good decisions, investing in large projects, understanding the importance of diversifying its economy and also providing work and opportunity to its young population.

Now is the time to turn up, attend and make plans for the future of Iraq, and we look forward to welcoming you.

Please register here:

https://iraqbritainbusiness.org/event/ibbc-autumn-conference-at-the-address-hotel-dubai-marina