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Having had to postpone its autumn conference earlier this year, the Iraq Britain Business Council (IBBC) has confirmed that it has received full UAE Government approval to hold its conference on Sunday 18th December.

It has convened 20 of the top decision-makers from the Government of Iraq and key industry sectors, who will come together at the IBBC Autumn Conference in Dubai to discuss the dynamic energy and financial landscape, as well as key opportunities to be seized.

Attendees will gain insights from leading government and industry leaders, including:

• H.E. Jabbar A.H. Al-Luiebi, Minister of Oil, Iraq
• Marcus Antonini, Vice President and Country Chairman, Shell Iraq
• Ariel Flores, GM, BP (Rumaila Operating Organisation)
• Marwa Al Nasaa, Resident Representative for Iraq, International Monetary Fund (IMF)
• Zeeshan Sheikh, Investment Officer, International Finance Corporation (IFC)
• Gavin Rennie, Global Power and Utilities Emerging Markets Leader, Ernst & Young
• Dennis Flannery, Managing Director, Iraq Country Head & Representative, Citibank

The four conference sessions will focus on:

• Session 1: The Iraq Oil and Gas Sector in 2016
• Session 2: Opportunities in Power Generation/Electricity Supply
• Session 3: Finance
• Session 4: Opportunities for the Private Sector

Among the companies already signed up for the conference are:

• AMEC Foster Wheeler
• BP
• China Petroleum Engineering
• Citibank
• DOME Group
• Exxon
• EY
• Garda World
• GE
• Gulftainer
• Harlow International
• International Islamic Bank
• Khudairy Group
• Marubeni Itochu Steel
• Olive Group
• Penspen
• Petronas
• Perkins+Will
• PwC
• Restrata
• ROO
• Severn Glocon
• Shell
• Siemens
• SKA
• Solar Turbines
• Stephenson Horwood
• Weir Group
• URUK Engineering

Register now if you would like to:

• Find out more about the strategy of global oil and gas majors in Iraq
• Understand what OPEC cuts mean for businesses in the Middle East
• Learn about new opportunities in Iraq that have arisen following the IMF deal and how to get involved
• Network with key industry figures, business partners and prospects

With rising oil prices, an IMF loan and increasing security, the opportunity for new business in Iraq is clear.

Book your spot at this must-attend conference now for £700!

Register Now

Download the Latest Programme

(Source: IBBC)

By John Lee.

Shell is reported to be considering selling its oil fields in Iraq, as part of a global $30-billion asset disposal program.

The move follows the company's $54-billion acquisition of gas company BG Group earlier this year.

Industry sources told Reuters that Shell has found only limited financial benefits in recent years from its involvement in Iraq's oil production, where it is paid in crude oil but has limited say on production strategy, but that it continues to see value in developing its gas business in Iraq and is not interested in selling those assets.

Iraq accounted for around 4.4 percent of Shell's total oil and gas production in 2015, according to its 2015 annual report.

Shell holds a 45 percent stake in the giant Majnoon oil field, that it operates under a technical service contract that expires in 2030. Production at Majnoon has stalled at 200,000 bpd, and although it has plans to double output, the company is just focusing on sustaining production this year.

It also has a 15 percent interest in the West Qurna 1 field (Reuters reports that it has 20 percent interest), which is operated by ExxonMobil.

The Basrah Gas Company (BGC) is a joint venture between the state-owned South Gas Company (SGC) (51%), Shell (44%) and Mitsubishi (5%).

(Source: Reuters)

Kurdistan’s Oil & Gas Leaders to Hold Official Annual Meeting in London

The Ministry of Natural Resources of the Kurdistan Regional Government, Iraq is to hold the sixth official Kurdistan-Iraq Oil & Gas Conference in London, on 5-7 December 2016 to drive forward the oil and gas development in the Region of Kurdistan.

Energy events experts CWC Group has hosted and grown the event over the years to become the gateway to the oil and gas business for the Kurdistan Region offering a unique platform for the global oil and gas industry.

The event is renowned for gathering Kurdistan’s Government representatives with global oil and gas leaders to discuss current opportunities, network and build partnerships to drive the industry forward.

Sponsored by an range of established companies: Star Light, ExxonMobil, Chevron, DNO, Gazprom, Qaiwan, KAR Group, Genel Energy, Gulf Keystone, Renwa Group, Petoil, Gardaworld, Iraqoil, Gas Liquids Engineering, Gas plus New Age, Hunt Oil Middle East, WesternZagros and SMB Group, the event will dedicate the two initial days to strategic panel discussions and a third day to the Security Seminar, focused on Protecting Critical Infrastructure in the region; a key aspect for any economic progress in Iraq.

Distinguished Speakers of the Conference Include:

• E Qubad Talabani, Deputy Prime Minister, Kurdistan Regional Government, Iraq
• E Dr Ashti Hawrami, Minister of Natural Resources, Kurdistan Regional Government, Iraq
• E Falah Mustafa Bakir, Head of the Department of Foreign Relations, Kurdistan Regional Government, Iraq
• Dr Amanj Raheem, Minister, Kurdistan Regional Government Cabinet Secretary & Chief Legal Advisor, Kurdistan Regional Government, Iraq
• Najmaldin Karim, Governor of Kirkuk Governorate, Iraq
• Saad Sadollah, Commercial & Business Development Advisor, Ministry of Natural Resources, Kurdistan Regional Government, Iraq
• Ian MacDonald, Vice President, Europe, Eurasia and Middle East Exploration and Production, Chevron
• Bijan Mossavar-Rahmani, Executive Chairman, DNO ASA
• Murat Ozgul, CEO, Genel Energy Plc
• Jón Ferrier, Chief Executive Officer, Gulf Keystone Petroleum Ltd

(View the full speaker list here)

Following the official opening keynote from the Deputy Prime Minister and the Minister of Natural Resources, the speakers will address important topics for the industry, dedicating a session to each of the following:

• Kurdistan’s Oil & Gas Operators: Transforming the Region into an Energy Hub
• Oil & Gas Infrastructure Development, the Catalyst for the Region’s Development
• Kurdistan’s Electricity Infrastructure; Innovation, Progress & Plans
• Kurdistan’s Gas : Potential & Opportunities
• Creating Value through Large Projects; Evaluating Kurdistan Oil & Gas Investment Strategies
• Integrated Telecommunications Services & Solutions for Kurdistan Energy Projects

 (View the full programme here)

(Source: CWC)

By Ahmed Mousa Jiyad.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The Ministry of Oil should withdraw its plan to offer 12 new oilfields.

In a rather surprise move, the Ministry of Oil (MoO) announced its “intention” to offer 12 medium and small oilfields to IOCs for development and production.

The most alarming and absurd components of the announcement are the contractual modality and the process of awarding and contracting.

Considering the danger and implications of the announcement I call upon the Ministry of Oil to withdraw this announcement immediately and focus instead on properly manage and monitor what has been contracted already. Otherwise, the Iraqi upstream petroleum could suffer from devastating consequences at a time when the country is liberating its provinces, especially Mousil from Da’esh.

The offered fields are Sindebad, Um-Qaser, Rachi and Abu-Khema (in Basra Governorate); Kumait, Noor, Umara, Dema and Dujaila (in Missan Province); and Merjan, Kifl and West Kifl-all known as Mid-Euphrates (in Middle Iraq).  MoO announcement provides further information which will be addressed in this commentary.

At the outset, this is not a new move at all. After completing the fourth bid rounds, the MoO has at least formally announced three times its intention for new offering. The first was during the former Minister Abdul Kareem Luaibi, who in March 2013 announced a fifth bid round comprising “10 oilfields”, then in October he postponed that round to “next year”.

The second was related to the well-known Nassiriya Integrated Project-NIP, which combines the development of Nassiriya oilfields with a 300kbd modern refinery. Though NIP attracted good number of reputable IOCs, the project was put on shelves and related bid round was postponed indefinitely in June 2014. Recently, MoO offered Nassiriya Refinery for private investors, thus NIP is dead!

The third is related to linking Ratawi and Bin-Umar oilfields (in Basra) to funding the water-injection Common Seawater Supply Project (CSSP) reportedly negotiated with ExxonMobil and PetroChina (CNPC). Since January this year no further information is publically available on earmarking the two oilfields to CSSP.

The current Minister of Oil made many pledges when he took office among them two of particular relevance to this topic: first, he emphasized the “national efforts” in upstream petroleum development and second, decision will be based on “solid and thorough studies and assessment”. The recent announcement by the Ministry is diametrically opposing to what the Minster has recently pledged.

By offering these 12 oilfields to IOCs “whether as independent (individual) company or as consortium of companies” in addition to what was contracted under the previous four bid rounds nothing meaningful is left for the “national efforts” role in this sub-sector. Moreover, where are these “solid and thorough studies and assessment” which the recent announcement was premised upon?   None!

Please click here to download Ahmed Mousa Jiyad’s full report.

Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad’s biography here.

By John Lee.

Iraqi oil minister, Jabbar al-Luaibi (Allibi), met with the head of Exxon Mobil Iraq, Paul Thiss, in his office on Wednesday to discuss cooperation and investment in the Iraqi energy sector.

The Minister said Iraq is about to enter a new age of development of its oil and gas industry and is "opening the door of investment to this vital sector."

He said also that the Ministry has plans to develop the process of oil marketing with the world via the State Oil Marketing Organization (SOMO) "through the mutual cooperation with Exxon Mobil Company for its big experience in this sector."

(Source: Ministry of Oil)

By John Lee.

Reuters reports that Baghdad has reached agreement with BP, Shell and Lukoil to restart stalled investment in Iraqi oil fields, allowing production to increase by 250,000-350,000 bpd in 2017.

According to documents seen by Reuters, the three firms agreed to spend in the second half of 2016 roughly half the budgets they proposed for 2015:

• BP to spend $1.8 billion this year at Rumaila. It had initially planned to spend $3.5 billion last year, which it revised down to $2.5 billion;
• Shell to spend $742 million; it proposed $1.5 billion last year; and,
• Lukoil to spend $1.08 billion; it proposed $2.1 billion last year.

Iraq has yet to reach agreements with Exxon Mobil, CNPC and Petronas regarding investment in their respective fields.

(Source: Reuters)

By John Lee.

Iraq's Deputy Oil Minister has said that Iraq is negotiating with Exxon Mobil and Petrochina to develop the Artawi and Nahran Omar [Nahr Bin Umar, Nahr Umr] oil fields in the south of the country.

Fayyad Al-Nima, who has been acting oil minister since Adel Abdel Mahdi [Adil Abd Al-Mahdi] "suspended his participation" in the cabinet in March, told Bloomberg that the Oil Ministry hopes hopes to increase combined production at the two fields from around 70,000 barrels per day to 550,000 bpd.

The ministry wants to start the project within six months.

(Source: Bloomberg)

By John Lee.

A senior Iraqi oil official has told Reuters that international oil companies (IOCs) have warned of delays to projects to increase its crude oil output if the Iraqi government insists on drastic spending cuts this year.

Investments by IOCs are repaid with crude oil, which has become a problem since oil prices have fallen and Iraq has been struggling to find enough oil to repay the companies for their investments.

Due to budgetary pressures, Iraq has asked IOCs to cut their development budgets for a second year, but the two sides have failed so far to agree on spending levels.

BP has been asked to cut its 2016 budget for Rumaila to $2.48 billion, and to target output of 1.4-million barrels per day. (BP proposed a budget of $3.25 billion for 2015).

Lukoil is expected to cut spending to $1.26b illion and aim for a production of 400,000 bpd at West Qurna 2 project; it proposed a 2015 budget of $2.1 billion.

Eni should cut spending to $1.62 billion and aim for production of 351,000 bpd at Zubair.

ExxonMobil was asked to slash spending to $878 million and aim for output of 379,000 bpd at West Qurna 1. Last year, according to Reuters, it "insisted" on spending $1.8 billion.

Shell should cut spending to $855 million and aim for 200,000 bpd from Majnoon. Last year, it proposed a budget of $1.5 billion.

Petronas should reduce costs to $712 million and target production of 100,000 bpd at Garraf.

(Source: Reuters)

By John Lee.

Shafaaq reports that Iraq will pay foreign oil companies about $2 billion in remaining arrears for 2015 in April.

The arrears were accumulated to international oil companies (IOCs) such as BP, Shell , ExxonMobil, Eni and Lukoil, which operate in under service contracts, whereby they are paid a fixed dollar fee for additional volumes produced.

Deputy Oil Minister Fayadh al-Nema, who is in charge of upstream operations, told Reuters that amended contracts could be in place by the middle of the year, which would ease the pressure on Iraqi finances.

He added that one way to reduce companies’ costs was to hand drilling operations over to the state-run Iraqi Drilling Company (IDC), while another was to replace foreign workers with locals.

Iraq’s output rise in 2016 will be “very modest,” Nema forecast, due to the shrinking investment budgets of foreign contractors, which are affected by the drop in oil prices.

Nema said a deal with PetroChina, ExxonMobil and other energy companies could be reached by the end of the year over investing in a project to boost output from its smaller southern oilfields.

The multi-billion dollar “Integrated South Project” consists of building oil pipelines, storage facilities and a seawater supply project to inject water from the Gulf to maintain pressure and enhance oil recovery.

Investing companies will help raise production from the Artawi and Nahr Bin Umar oilfields and build energy infrastructure. Revenues from rising output from the two oilfields will be used to repay investors, Nema said.

Nema also said Iraq was working with BP to upgrade an old water injection facility in Garmat Ali, north of Basra, to provide oilfields of Rumaila and Zubair with water needed to boost output.

(Source: Shafaaq)

By John Lee.

Iraq has reportedly approached PetroChina and ExxonMobil about investing in a multi-billion dollar project to help boost output from a number of smaller southern fields.

The Deputy Chairman of the South Oil Company (SOC), Basim Abdul Kareem, told Reuters that the "Integrated South Project" consists of building oil pipelines, storage facilities and a seawater supply project to inject water from the Gulf to maintain pressure and enhance oil recovery.

The project targets the Luhais, Nassiriya, Tuba, Nahr Bin Umar and Artawi oilfields, which are currently producing about 240,000 bpd currently and SOC's initial plan calls for raising that to about 350,000 bpd in 2016.

Petrochina has shown more interest than ExxonMobil in the project, according to another SOC official who declined to be identified.

(Sources: Reuters)