Invest Iraq

Oil Prices Increase

Crude oil prices have touched $105 per barrel at the end of last week despite the crisis in Iraq and the advance of the Islamic state of Iraq and the Levant

Crude oil prices have touched $105 per barrel at the end of last week despite the crisis in Iraq and the advance of the Islamic state of Iraq and the Levant

Crude oil prices have touched $105 per barrel at the end of last week. This price increase occurred after a period of unusually low oil prices in the world market. During the last 2 months, oil prices had declined by over $10 due to excess supply and increased production.

The ongoing crisis in Iraq and the advance of the Islamic state of Iraq and the Levant have caused the oil prices to surge. While specialists argue that Iraq’s northern oil fields cannot be considered as a reliable source of production, they do agree that as long as southern fields continue to be intact and quite safe, no cause of fear or concern will affect the oil market.

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Iraq Oil Explorers Evacuate More Staff

Oil explorers have suspended operations in Kurdistan and evacuated more staff as the security situation has worsened in northern Iraq. Afren Plc halted work at Barda Rash field on the region’s western border. Oryx Petroleum Corp. stopped production at demir Dagh facility and temporarily suspended drilling in two other areas. Genel Energy Plc has also evacuated some personnel and Gulf Keystone Petroleum Ltd. increased security as a precautionary step. Genel Petroleum officials have stated that their company is taking prudent and precautionary steps of withdrawing unnecessary staff from the non-producing assets in the region.

KRG Oil

Oil explorers have suspended operations in Kurdistan and evacuated more staff

Chevron Corp. withdrew some expatriate staff yesterday. Reuters reported that Exxon-Mobil Corp. also evacuated people from the region. The world’s largest Oil Company declined to comment, saying that it doesn’t discuss security matters.Crude oil prices reversed gains of as much as 1.3 % in London, falling 36 cents to $105.08 a barrel by 11:11 a.m. in New York on the London-based ICE Futures Europe exchange. West Texas Intermediate declined 1 cent to $97.33 a barrel on the New York Mercantile Exchange.

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LUKOIL Earning $2 Billion from Iraq

LUKOIL, the second largest Russian oil producer announced that it expects to earn a minimum of $2 billion from Iraq’s crude oil exports in 2014. The company estimates to ship a minimum of 28 million barrels of oil and thus expects to regain more than half of the $4 billion original investment in the oil field during this year.

LUKOIL expects to earn a minimum of $2 billion from Iraq’s crude oil exports in 2014.

LUKOIL expects to earn a minimum of $2 billion from Iraq’s crude oil exports in 2014.

The company plans to invest approximately $40 billion in the project during its 25-yer life span; the majority of this amount will come from revenues generated from oil sales. Moreover, output is expected to increase over the next decade from today’s levels of 280,000 barrels a day now to 1.2 million barrels of oil a day.

LUKOIL president Andrey Kuzayev added that the political situation in Iraq has an important impact on his company but so far there is no influence on production in the south of country and that his company is satisfied with the level of security in Iraq.

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Afren Temporarily Suspends Production At Barda Rash

Afren announced that it has provisionally suspended production at Barda Rash filed as a cautionary step in the recent events

Afren announced that it has provisionally suspended production at Barda Rash filed as a cautionary step in the recent events

Afren Plc. announced last Friday that it has provisionally suspended production at Barda Rash filed as a cautionary step in the recent events of heightened security issues in the region. Afren officials have been working closely with its local security consultants in order to execute a phased withdrawal for unnecessary field staff from the Barda Rash field. However, all the remaining Afren operations in the Kurdistan are unchanged. Meanwhile, the company will keep closely monitoring the events in the region and consulting with its security advisors and the relevant authorities.Moreover, Afren added that they will return to filed operations as soon as it is cautious to do so and that this interruption is not expected to affect the Group’s cash flows.

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Gulf Keystone Petroleum Confirms Kurdistan To Be Safe

Gulf Keystone Petroleum announced that its operations in the Kurdistan region of Iraq have stayed safe and secure

Gulf Keystone Petroleum announced that its operations in the Kurdistan region of Iraq have stayed safe and secure

Gulf Keystone Petroleum announced that its operations in the Kurdistan region of Iraq have stayed safe and secure. The company’s operations include continuing production and trucking operations at its both Shalkan production facilities.

Even though GKP does not face an immediate threat to its operations in Kurdistan, the firm will keep monitoring the security situation and operating with additional cautiousness.

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METKA Gains Basra Contract

METKA won a contract worth $165 million to operate the Shatt Al Basra Power Plant.

METKA won a contract worth $165 million to operate the Shatt Al Basra Power Plant.

The Greek engineering and contracting firm METKA won a contract worth $165 million to operate the Shatt Al Basra Power Plant. The deal permits METKA to supervise the procedure of preparing the plant to burn heavy fuel oil to generate electricity. This project will be implemented during the next coming years for the Iraqi Ministry of Electricity.The company has another contract to install a 1250 MW gas-powered turbine in Basra.

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Russian Gazprom Explores Kurdistan for Oil

The Russian oil corporation Gazprom will begin exploration operations in the Kurdish province of Halabja before the year-end. Halabja is situated in the Kurdistan Regional Government KRG and is near to the Iraqi-Iranian Border.

 The Russian oil corporation Gazprom will begin exploration operations in the Kurdish province of Halabja


The Russian oil corporation Gazprom will begin exploration operations in the Kurdish province of Halabja

As soon as the firm succeeds in locating enough oil reserves, it will start normal drilling operations. In return to drilling in the Halabja region, Gazprom has agreed to provide several social services to residents in addition to offering opportunities for local students to travel and study energy related specialties in Russia every year.

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British Airways Considers Iraqi Airspace Safe

British Airways flies over Iraq because they consider it safe and they found Iraq to be unsafe they would stop flying over it.

British Airways flies over Iraq because they consider it safe and they found Iraq to be unsafe they would stop flying over it.

British Airways Chief Executive Officer Willie Walsh supports the airline’s decision to keep permitting their flights to across through Iraqi airspace. In fact, British Airways flights to Dubai and Doha regularly pass over Iraq for a part of the flight.

Walsh added that the company flies over Iraq because they consider it safe and they found Iraq to be unsafe they would stop flying over it.

The announcement followed others made by important airlines worldwide and their intents to modify their flight plans in order to avoid Iraqi airspace due to security concerns regarding rebels operating surface-to-air missiles.

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Positive Outlooks for Southern Oil

The southern part of Iraq, particularly the city of Basra, has remained relatively peaceful during the last few months despite the ongoing conflict in the northern country. Crude oil production for the southern fields stayed at around 3.15 million barrels per day. Iraq’s government forecasts the long-term oil export to reach about 8.4 million barrels per day. The new estimate was scaled down from 12 million barrels of oil per day by 2020 due to technical and infrastructure problems.

Crude oil production for the southern fields stayed at around 3.15 million barrels per day.

Crude oil production for the southern fields stayed at around 3.15 million barrels per day.

As a result to the current security problems, Iraq is not expected to reach the short-term production goal of 3.7 million barrels of oil per day. Experts estimate the output to be closer to 3.4 million barrels per day.

Several oilfield workers working for foreign companies have withdrew due to security worries, however oil output was not affected. Nevertheless, major pipeline projects will be delayed and won’t be completed this year.

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Russia Sells $1 billion Arms Deal to Iraq

The Russian government has signed a USD 1 billion contract to the Iraqi government, the Russians will provide the Iraq army heavy artillery, ballistic missile systems and ammunition.

Iraqi government has recently signed a USD 1 billion-worth deal with Russian government

Iraqi government has recently signed a USD 1 billion-worth deal with Russian government

The Russian Interfax News Agency reported that the deal was signed during a recent visit by Iraqi Defense Minister Saadoun Al-Dulaimi to Moscow.

The Russian agency added that the deal also includes, among others things, providing the Iraqi army with Grad missiles and armored vehicles. In addition, negotiations have started to sell the Iraqi government ten Su-27 jet fighters. The Su-27 frontline fighter has been declared one of the best combatant aircraft of the last century.

 

 

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Fifth Tanker of Kurdish Oil Loaded in Turkey

The fifth cargo of Kurdish crude oil was filled at the port of Ceyhan in Turkey yesterday and is scheduled to cruise today

The fifth cargo of Kurdish crude oil was filled at the port of Ceyhan in Turkey yesterday and is scheduled to sail today

According to Turkish government, the fifth cargo of Kurdish crude oil was filled at the port of Ceyhan in Turkey yesterday and is scheduled to cruise today. This cargo is the first loading of Kurdish oil from Turkey since a month when the Iraqi central government blocked Kurdish oil exports.

The Suezmax tanker Kamari arrived to the Cyehan port Wednesday and is expected to ship one million barrels of crude oil.

Baghdad has cut Kurdistan’s budget since the beginning of the year over oil sales disagreement. Kurdistan’s population of 5 million has been semi-autonomous enjoying relative stability since the U.S. invasion in 2003.

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LUKOIL Receives First Oil Batch in Wset Qurna 2

LUKOIL Iraq

LUKOIL crude oil carrier has arrived to Basra’s port to take the first batch of oil. The carrier will stay days in the port to load one million barrels of oil. This is the first crude carrier to transport buy-back oil belonging to LUKOIL in compliance with the terms of the West Qurna-2 contract.

Output at West Qurna-2 has attained 280,000 barrels per day. The project will continue execution in accordance with the plan as long as LUKOIL successfully completes the contract terms.

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Iran Kurdistan New Energy Agreement

KRG Iran

A new energy agreement is being pursued with Iran. The new contract is expected to be comparable to the deal between Kurdistan and Turkey

Kurdistan officials have revealed that a new energy agreement is being pursued with Iran. The new contract is expected to be comparable to the deal between Kurdistan and Turkey. The Kurdish Head of the Industry and Energy Committee Sherko Jawdat announced that the Kurdistan economic policy aims to establish strong oil and economic relations with Iran.

The Iraqi central government condemns all contracts that Kurdistan signs with foreign countries and insists that only Iraq’s central government has the right to export Iraqi crude oil and has threatened to take legal action.

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Terrorist Oil trade

The United Nations Security Council has expressed concerns regarding radical groups in Iraq and Syria using seized oil fields to generate income for their terrorist organizations. This fear originates from the attacks and profits made by the Islamic State of Iraq and the Levant and the Nusra Front in Syria.

 The United Nations Security Council has expressed concerns regarding radical groups in Iraq and Syria using seized oil fields to generate income for their terrorist organizations.


The United Nations Security Council has expressed concerns regarding radical groups in Iraq and Syria using seized oil fields to generate income for their terrorist organizations.

The UN statement read “any oil fields and related infrastructure controlled by terrorist organization could generate material income for terrorists, which would support their recruitment efforts, including of foreign terrorists fighters and strengthen their operational capability to organize and carry out terrorist attacks”.

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ISIS Takes Control of a Portion of Baji Oil Refinery

Last Saturday, Iraqi security forces stated that ISIS rebels took control over a part of the Baji oil refinery. Baji refinery is one of the most producing oil fields in Iraq. During the past, Baji has been a targeted zone for numerous conflicts between security forces and ISIS militants. Iraqi Security forces have been fighting to drive the fighters off the oil refinery’s premises.

ISIS rebels took control over a part of the Baji oil refinery.

ISIS rebels took control over a part of the Baji oil refinery.

 

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China Wins Oil Storage Contract

China Petroleum Pipeline CPP wins a $607 million contract to build an oil storage facility in Nassiriya

China Petroleum Pipeline CPP wins a $607 million contract to build an oil storage facility in Nassiriya

The Iraqi Ministry of Oil has awarded a $ 607 million contract to China Petroleum Pipeline CPP. The firm will start the construction of an oil storage facility to contain future development projects at the Nassiriya oilfield located in southern Iraq. Nassiriya field is currently producing 40,000 barrels of oil per day, but by the completion of the new storage units, production is expected to reach 300,000 barrels per day.

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New Protection for Southern Iraqi Oil Infrastructure

Drones will protect Iraqi southern oil infrastructure

The Iraqi Minister of Oil, Abdul Kareem Al-Luaibi has announced that two drones are expected to start flying over the important oil infrastructure in southern Iraq. In fact, this statement denotes the first time that drones are used to safeguard energy wealth. Southern Iraq includes many of Iraq’s most vital oil fields, which make up the majority of Iraq’s overall oil exports.

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KRG Oil Export Resume to Ceyhan

The Turkish government has revealed that the flow of crude oil from Kurdistan to the Ceyhan port will restart during this week; once oil tankers are emptied. The oil flow stopped last week because the port attained its storage capacity allocated to Kurdistan of about 2.5 million barrels.

The flow of crude oil from Kurdistan to the Ceyhan port will restart during this week

The flow of crude oil from Kurdistan to the Ceyhan port will restart during this week

Ceyhan started exporting Kurdish oil on May 22nd; to date Turkey has traded approximately 4 million barrels of oil from Kurdistan to international markets. Moreover, oil market experts announced that three tankers would arrive to Ceyhan to transport 2.5 million barrels of Kurdish oil.

Turkey has declared that it is not implicated in the oil sale, and does not negotiate with the buyer or deal with price issues. Therefore, the fate of the crude oil stays ambiguous.

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Iraq, the Opportunity

Despite the recent frequent bad news in Iraq, several businesses are grabbing the opportunity to go and invest where others won’t. Recently, a Turkish company sealed the deal to complete a storage tank project, a new truck distribution deal was reported in Iraq’s Kurdistan, and a Malaysian firm planned to enter Iraq’s helicopter charter.

Despite the recent frequent bad news in Iraq, several businesses are grabbing the opportunity to go and invest where others won’t.

Despite the recent frequent bad news in Iraq, several businesses are grabbing the opportunity to go and invest where others won’t.

In addition, information was published regarding a plan to develop a new road that will decrease the travel time to and from Iran’s border. The Iraqi oil minister has assured that Iraq’s southern oil output has not been impacted by the latest violence incidents in the North of the country.

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Iraqi Oil Output To Reach 3.15 mbpd in July

Iraqi oil minister Abdul Kareem Al-Luaibi announced Wednesday that Iraq is currently producing 3.15 million barrels of oil per day and he added that he expects oil exports to be around 2.6 mbpd for July. Luaibi also said that the recent violence in the north and west of Iraq did not impact output or exports in the south, and the capacity of oil export facilities were expanded to 3 million barrels per day.

Iraq is currently producing 3.15 million barrels of oil per day

Iraq is currently producing 3.15 million barrels of oil per day

Last May, Iraq’s southern exports reached 2.582 million barrels per day, a record since 2003, but last June exports decreased back to 2.423 million due to maintenance works and expansion at one dock at the Al-Basra Oil Terminal.

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Oil Price Hit a 9-month High in June Due to Concerns Over Iraq Supply

Oil prices have hit a 9-month high during June as a result to Iraq’s oil supply following the advance of rebels in Iraq. In June, the price of Bent crude and west Texas Intermediate reached $115/bbl and $107/bbl respectively; while the price of Kuwait export crude reached $108.9/bbl. Oil prices haven’t reached these levels since last September. After the fall of Mosul and Tikrit under the control of the rebels, concerns regarding the rebels seizing control over oil fields and oil export infrastructure near Kirkuk where the federal government controls the majority of oil production in the north.

Oil prices have hit a 9-month high during June as a result to Iraq’s oil supply following the advance of rebels in Iraq

Oil prices have hit a 9-month high during June as a result to Iraq’s oil supply following the advance of rebels in Iraq

Insurgents have targeted Baji complex Iraq’s largest refinery located north of Baghdad. However, since rebels failed in taking over Baghdad or securing a foothold in oil rich Kirkuk, oil prices began to decrease. In fact, international market fears regarding Iraqi oil supply are mainly about future output and the impact of continued violence would have on Iraq’s capacity to maintain future oil targets in the context of increasing global oil demand rather than the current oil production.

The International Energy Agency IEA has forecasted the world oil demand to increase by 1.3 million barrels a day and to reach 92.8 million barrels a day in 2014.

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Iraqi Oil Sector Is Secure

 

The oil minister, Abdul Karrem Al-Luaibi stated that the government is committed to provide the ideal safe environment for international companies operating in Iraq. The minister has assured that the ministry has supplied the extra protection required for oil refineries and fields.

However, the U.S. Energy Information Administration EIA has cut its production growth forecast from Iraq by 300,000 barrels a day.

 Abdul Karrem Al-Luaibi stated that the government is committed to provide the ideal safe environment for international companies operating in Iraq.

Abdul Karrem Al-Luaibi stated that the government is committed to provide the ideal safe environment for international companies.

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Iraq Kurdistan Oil Production Increased by more than 50% in June

Despite the recent violence, Iraqi Kurdistan increased oil output by more than 50% during June. The port of Basra cut exports from the south due to logistical problems. In fact, the International Energy Agency stated that oil production in Kurdistan increased to 360,00 barrels per day during June, an growth of 130,000 barrels per day from May. Kurdistan Oil june 2014 Moreover, the IEA declared that the pipeline, which is currently pumping 120,000 barrels per day to Ceyhan a Turkish port, could increase its capacity to reach at least 300,000 barrels per day before the year-end. Kurdistan minister of natural resources has announced that Kurdistan is a aiming to export 400,000 barrels per day before the end of the year.

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Malaysian Weststar Aviation Targets Helicopter Charter Market

A report by Astro Awani stated that Malaysian Weststar Aviation Services is considering entering the helicopter charter market in Iraq. The company’s owner and director Tan Sri Syed Azman Syed Ibrahim announced that the Weststar has been planning to enter the Iraqi market as early as next year and it will be the pioneer company in providing such charter services in the country.

Malaysian Weststar Aviation Services is considering entering the helicopter charter market in Iraq

Malaysian Weststar Aviation Services is considering entering the helicopter charter market in Iraq

Weststar is expected to trade on the Malaysian stock market next year.

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Iraq-Iran Gas Pipeline To Finish in March 2015

According to Iran’s Press TV, the 100-kilometer pipeline that will carry natural gas from Iran to Iraq is scheduled to finish construction by the end of current Iranian calendar that is by March 2015.

The 100-kilometer pipeline that will carry natural gas from Iran to Iraq is scheduled to finish construction by the end of current Iranian calendar that is by March 2015

The natural gas pipeline  from Iran to Iraq will be completed by March 2015

Alireza Gharibi, the Managing Director of the Iran Gas Engineering and Development Company stated that initially 7 million cubic meters of natural gas will be delivered to Iraq per day, and that amount will increase to reach the peak of 40 million cubic meters. The 48-inch pipeline starts from the Iranian village of Charmaleh in Kermanshah and ends in the town of Naft Shahr on the Iraqi borders.

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Launch of Iraqi Satellite

The Iraqi Ministry of Science and Technology has revealed the launching of a satellite dedicated for research reasons on June 20th from a Russian base. The Tigrisat satellite will identify dust storms over Iraq. It only weighs 4 Kg with 10*10*30 cm measurements and was built in conjunction with La Sapienza University in Rome, Italy.

Tigrisat only weighs 4 Kg with 10*10*30 cm measurements

Tigrisat only weighs 4 Kg with 10*10*30 cm measurements

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Slight Crude Oil Exports Increase For May

Iraq’s oil exports have averaged 2.582 million barrels a day for the month of May, thus recording an increase from April’s 2.510 million barrels a day. Oil sales revenues have grossed $8.068 billion given an average barrel price of $100.08, while April’s revenues recorded $7.582 billion.

Iraq’s oil exports have averaged 2.582 million barrels a day for the month of May, thus recording an increase from April’s 2.510 million barrels a day.

Iraq’s oil exports have averaged 2.582 million barrels a day for the month of May, thus recording an increase from April’s 2.510 million barrels a day.

In fact, the pipeline that transports oil on the country’s Persian Gulf to Turkey’s Mediterranean port of Ceyhan has been inoperable since March due to terrorist attacks. The pipeline has been a preferred target to insurgents; it pumps 300,000 to 400,000 barrels a day and crosses restive Sunni-dominated regions of north of Iraq. Even though Iraq has the fourth largest oil reserves in the world, with about 140 billion barrels, increasing oil production has been very difficult mainly due to terrorist attacks, infrastructure bottlenecks and oil dispute in the Kurdistan region.

Since the 2003 U.S-led invasion, Iraq has been struggling to improve the oil and gas sectors given the bad security situation has been putting off many investors. Oil revenues account for approximately 95% of Iraq’s budget.

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Iraq’s Housing Crisis

Amid a persistent housing shortage, a steady population growth, dilapidation of existing dwellings and political turmoil, Iraq needs to revive its neglected property development sector. Securing adequate housing will be the biggest challenge facing Iraq in the next years. According to MEED, the current shortage is estimated from 2 to 3.5 million homes and it is growing. The senior vice-presidential at US-based Hill International, Akram Ogaily stated that last year only 5% of the required was accomplished while demand increased by more than 5%. The firm had won a contract to construct 100,000 new housing units in 2011.

MEED estimatesthe current shortage to range from 2 to 3.5 million homes and it is growing

MEED estimatesthe current shortage to range from 2 to 3.5 million homes and it is growing

The National Housing Plan was launched in 2010 and had planned ambitious housing targets to build new units. Due to underdeveloped construction sector and the absence of large-scale developers, international companies can take advantage of this opportunity.

The security situation is the biggest problem facing the housing program; violence and instability are causing the projects to be delayed and driving away the investors.

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Potential Record For the South of Iraq’s Oil Exports

Reuters has reported that oil exports in Southern Iraq could hit a high record in May. Oil exports have averaged 2.6 million barrels per day in the first 27 days of May; if these figures are sustained, they would beat April’s record of 2.51 million barrels per day, the highest level since the 2003 invasion.

Oil exports in Southern Iraq could hit a high record in May. Oil exports have averaged 2.6 million barrels per day

Oil exports in Southern Iraq could hit a high record in May. Oil exports have averaged 2.6 million barrels per day

 

Southern exports have increased by the launch of Lukoil’s West Qurna oilfield production. In the north of Iraq, shipments of Kirkuk oil have been delayed because of bomb blast on March 2nd. As rehabilitations are ongoing, there are expectations that flows may restart in the next few weeks. Kurdistan started operating its new pipeline to Ceyhan, resisting the central government.

 

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Iraq To Attract FDI

 

According to a recent report issued by London’s Center for Economics and Business research CEBR and the ICAEW, growth in foreign direct investment FDI to Iraq, Iran, Egypt Lebanon and Jordan is expected to surpass the expansion of flows to the Gulf Cooperation Council by 2019. The report focused on the GCC countries UAE, Bahrain, KSA, Oman Qatar and Kuwait in addition to Egypt, Iraq, Iran, Jordan and Lebanon referred to as GCC+5.

Iraq, Iran and Egypt are attractive mainly due to the large number of potential consumers they represent.

Iraq, Iran and Egypt are attractive mainly due to the large number of potential consumers they represent.

The report highlighted that regardless of their volatile economies, Iraq, Iran and Egypt are attractive mainly due to the large number of potential consumers they represent.

In fact, commodities form more than half of the total goods exports by value for most nations in the Middle East. In Iraq, the total is as high as 99.2%, and several other export industries have been interrupted due to continuous violence. Moreover, despite the ongoing violence, the Iraqi economic growth is forecasted to increase to 6.5% this year and reach up to 8.6% by 2016. Ever since the fall of the Saddam Hussein regime in 2003, western and Asian oil companies have not ceased to compete over profitable energy contracts.

 

 

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Housing Projects Worth $3 Billion Delayed in Iraq

Iraqi government officials have stated that only one out of four of the approved housing projects have started work whereas the remaining have been postponed.

Only 14 out of 60 housing projects have been launched and the remaining have been shelved, the 46 delayed projects have an approximate value of $3 billion

Only 14 out of 60 housing projects have been launched and the remaining have been shelved, the 46 delayed projects have an approximate value of $3 billion

Baghdad’s Secretariat and the Federal Ministry of Finance have been blamed for the projects’ suspensions. The delayed housing projects are estimated to worth nearly $3 billion. According to the chairman of Baghdad’s Investment Commission, only 14 out of 60 housing projects have been launched and the remaining have been shelved.

The 46 delayed projects have an approximate value of $3 billion and could immensely contribute to alleviate the severe housing crisis in Iraq, reduce unemployment and stimulate the economy.

 

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Cabinet Approves New Housing Loans

 The Iraqi Ministry of Housing and Construction has supported a program to fund new housing loans worth $215 million


The Iraqi Ministry of Housing and Construction has supported a program to fund new housing loans worth $215 million

The Iraqi Ministry of Housing and Construction has supported a program to fund new housing loans worth $215 million; this policy is an attempt of the government to alleviate the housing crisis.

The cabinet announced that the loans would be allocated to employees, low-income citizens and the unemployed who do not possess houses. In addition, the loans will be interest free and set on easy terms; they will be accessible to the residents of all Iraqi cities and areas without exceptions.

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Iraq The Largest Gas Importer From Iran

The Iranian Oil Minister Ali Majodi has declared that Iraq will become the biggest gas importer from Iran in the next years. Iraq is expected to import more than 40 million cubic meters of gas per day from Iran once the gas pipeline is completed in the next years. In fact, Iraq is forecasted to exceed Turkey in Iranian gas imports; Turkey is currently importing 25 million cubic meters per day.

Iraq will become the biggest gas importer from Iran in the next years.

Iraq will become the biggest gas importer from Iran in the next years.

 

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Hyundai Engineering & Construction Wins Contract for Karbala Refinery

 

Hyundai Engineering & Construction has won a $6.4 billion contract from Iraq’s State Company for Oil (SCOP); the contract is for engineering, procurement and construction for a 140,000-barre per day Karbala refinery

Hyundai Engineering & Construction has won a $6.4 billion contract from Iraq’s State Company for Oil (SCOP); the contract is for engineering, procurement and construction for a 140,000-barre per day Karbala refinery

Hyundai Engineering & Construction has won a $6.4 billion contract from Iraq’s State Company for Oil (SCOP); the contract is for engineering, procurement and construction for a 140,000-barre per day Karbala refinery.

SCOP has assigned French oil and gas services group Technip S A to provide the project management consultancy services for the refinery.

Iraq has 13 refineries whose combined crude processing capacity reaches 886,000 barrels per day. Iraq mainly depends on its three largest refineries at Basra, Daura and Baji to meet approximately 75% of its oil demand. The rest of refineries are small and have operational difficulties.

Given its limited access to refined petroleum, Iraqi government has to import refined petroleum and it costs about $6 billion per year. Therefore, Iraq plans to build 4 refineries in Karbala, Nasiriya, Missan and Kirkurk in order to reduce its dependency on imports, these new projects will have a joint capacity of 740,000 barrels

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Iraqi Cabinet Approves Basra-Aqaba Oil Pipeline

Basra-Aqaba oil pipeline is expected to be operative by late 2017, it will supply Jordan with 150,000 barrels of oil per day and the remaining will be exported through Aqaba

Basra-Aqaba oil pipeline is expected to be operative by late 2017, it will supply Jordan with 150,000 barrels of oil per day and the remaining will be exported through Aqaba

Iraqi parliament has given its full support to build an $18 billion pipeline to transfer crude oil from Basra to Aqaba in Jordan. This strategic plan will help Iraq with its efforts to increase its oil exports across the world.

The 1,680-kilometre double pipeline will transport one million barrels of oil per day from Basra on the Arabian Gulf to Aqaba Port, and approximately 258 million cubic feet of gas.

Negotiations are being held between Iraq and Jordan to build a refinery in Aqaba, which will be financed by the public and private sectors in both nations. The refinery will facilitate oil exports and will be beneficial for both countries.

Basra-Aqaba oil pipeline is expected to be operative by late 2017, it will supply Jordan with 150,000 barrels of oil per day and the remaining will be exported through Aqaba. Therefore, Iraq will accumulate an estimated $3 billion a year in revenues from this project. Jordan will also consume about 100 million cubic feet of natural gas, and the remaining will be used in pumping stations along the double pipeline.

The pipeline project will help absorb the increasing oil production in Basra. Iraq’s oil output is forecasted to reach 4.9 million barrels per day in 2015 and 9 million barrels per day in 2020 according to Abdallah Al Amir, technical adviser to Hussain Al Shahristani who is deputy prime minister for energy affair

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Dana Gas Boosts Output in Kurdistan

Dana Gas has announced that its operating profits have increased to $45 million, in Q1 2014 compared to $27 million in Q1 2013, which translates into a 67% increase. In addition, gross revenues generated in Q1 2014 were 18% higher than those in Q1 2013; they increased from $152 million to $180 million.

Dana Gas has announced that its operating profits have increased to $45 million, in Q1 2014 compared to $27 million in Q1 2013

Dana Gas has announced that its operating profits have increased to $45 million, in Q1 2014 compared to $27 million in Q1 2013

Increases in production and sales, in addition to stricter control of operational expenses were the main drivers to this growth in revenues and operating profits.

The corporation’s CEO has expressed his company’s commitment to continue operating gas production facilities in Khor Mor at full capacity in order to provide the necessary power supply to the citizens of Kurdistan.

 

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Dubai Investments Negotiating Erbil on Business Park

dubai

Dubai Investments International is in advanced stages of negotiations with potential business partners in Erbil to build an industrial, commercial and residential business park

Dubai Investments International, subsidiary to Dubai Investments PJSC, announced that it is currently aiming to expand abroad, and is looking into business opportunities in Africa and Asia.

The company is in advanced stages of negotiations with potential business partners in Erbil in Kurdistan, Iraq to build an industrial, commercial and residential business park similar to Dubai Investments Park and duplicating the business model in the Iraq. Dubai Investments International is also cooperating with the relevant government authorities to attract investments such as other international firms would establish industrial units within these business parks.

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Grand Faw Port Project will cost Iraq $1.3 Billion

The Grand Al-faw Port is located at the Shatt Al-Arab’s entry opposite to Kuwait’s Boubiyan Port

The Grand Al-faw Port is located at the Shatt Al-Arab’s entry opposite to Kuwait’s Boubiyan Port

Iraq is planning to assign a $1.3 billion contract that will mark the delivery of a marine works component for the start of phase 1 of Grand Al-Faw Port. The news was announced during the annual MEED Arabian World Construction Summit since the project’s first phase pre-qualification are being examined.

The project director, Asaad Rashid, declared that there are 18 consortium pre-qualification documents to be examined for Grand Al-Faw Port project.

The Grand Al-faw Port is located at the Shatt Al-Arab’s entry opposite to Kuwait’s Boubiyan Port. The port will have an ultimate capacity of 3.5 million 20-foot-equivalent unit (TEUs). Phase one of the project is currently under completion, with a capacity to be 2 million TEUs containers and general cargo.

This project is expected to reduce the constant congestion in the port of the Iraqi Gulf. The Iraqi government is keen to expedite the development of the project. Currently two construction contracts are underway. The first is an 8-km breakwater design valued at $280 million; it is an 18-month contract to be completed by the summer by Greece’s Archirodon. The second is a 16-km western breakwater design valued at $700 million; the South Korean company, Daewoo Engineering & Construction completed it by the end of 2013 by.

Once finished, the port is expected to become a dynamic gateway for seaborne imports into Iraq and regional markets.

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ShaMaran and Genel Energy Issue Bonds

bonds

ShaMaran and Genel Energy Issue Bonds

ShaMaran Petroleum has declared the listing of $150 million senior secured bonds issued by General Exploration Partners Inc., its subsidiary. The bonds will be traded on Oslo BØrs and will carry an annual coupon rate of 11.5%.

Genel Energy also announced that it completed the issuance of $500 million senior unsecured bonds  due in 2019, the bonds will carry an annual coupon rate of 7.5%.

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U.S. Approves $1 billion deal with Iraq Army

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The Pentagon has authorized the clearance of approximately $1 billion package for the Iraqi military

The Pentagon has authorized the clearance of approximately $1 billion package of aircraft trainers, surveillance aerostats and up-armored Humvees for the Iraqi army.

The deal is mostly comprised of 24 Beechcraft T-6C Texan II trainer aircraft; the turboprop aircraft and related services and equipment cost estimates reach around $790 million.

The planned sale of these aircraft, equipment and service support will hopefully support the Iraqi military in their efforts to bring stability to the country and to avert any possible spillover of turmoil into neighboring nations.

The US Defense Department has also approved the sale of 200 AM General up-armored Humvees valued at $101 million. The Humvees will be fitted for .50-caliber machine guns, training equipment and communications gear.

The Defense Security Cooperation Agency DSCA hoped that the new automobiles would facilitate the progress toward increasing Iraq’s ability to defend its oil infrastructure against terrorist attacks, and that the Humvees would also increase the safety, effectiveness and self-reliance of the Iraqi Oil police securing the nation’s petroleum pipelines.

 

 

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UNDP to Execute Development Plan in Iraq

UNDP

UNDP has announced that all development programs will be administered for the beginning of June inside of Iraq, not from abroad

The Iraqi country manager has announced that all development programs will be administered for the beginning of June inside of Iraq, not from abroad, asserting that the organization will launch a big branch office in Basra by the end of May and it also hopes to open an office in the city of Karbala to cover the Mid Euphrates region, adding that the UNDP does not have an office in Erbil.

The country manager also discussed with the Iraqi foreign minister the objectives of the development plan designed for the period 2015-2019. In addition, they examined the relations between Iraq and the government’s eagerness to deliver the best means and amenities to the organization’s work to support national development projects.

 

 

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Iraq gives OPEC Production a Rebound

The Organization of the Petroleum Exporting Countries announced in its monthly market report that its oil production bounced back in April thanks to Iraq’s surging output. OPEC also stated that its members’ crude oil production increased by 131,000 barrels a day in April to 29.6 million barrels a day.

OPEC

OPEC announced in its monthly market report that its oil production bounced back in April thanks to Iraq’s surging output

OPEC output reached its lowest level this year back in March, however, it was driven back by an increase of 102,100 barrels a day in Iraq to 3.3 million barrels a day.

Middle-Eastern countries have been pumping more oil; late March West Qurna field started up and its production has been pushed to levels not witnessed since 1979.

Coupled with a sustained North American oil boom, OPEC has increased global oil supply by 160,00 barrels in April to average 90.8 million barrels a day.

 

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Basra demands the government for negotiation rights with International Petroleum Companies

Basra Governorate has announced that it is waiting for the verdict of the lawsuit filed against the Ministry of Oil. The Basra local authorities are prosecuting the Oil Ministry for withholding them from participating in the oil extrapolation negotiations with international oil companies. Basra representatives have complained from the Ministry of Oil interference with the Governorate’s oil strategies and projects.

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Basra is currently producing 85% of Iraq’s total oil production

Basra Governorate is demanding more negotiations rights; the local council has changed the oil company from “South Oil Company” to “Basra Oil Company” after the Iraqi cabinet established Thi Qar Oil Company and Missan Oil company; and separated the two new entities from South Oil Company. Basra officials have declared that Basra Oil Company will only be operational in Basra Governorate and this procedure will create thousands of jobs for its citizens who have been denied from their county’s wealth. South Oil Company was operational in Thi Qar, Missan and Basra, with the latter hosting its head office.

Basra has long been denied from its oil abundance, it extrapolates about two million barrels per day. Even though Basra is currently producing 85% of Iraq’s total oil production; the county’s allocated budget has not even increased by 1%. In addition, Political differences regarding cutting down by 13 to 17% of Missan and Basra’s shares from their oil production have also been frequent, whereas the Iraqi government only assigns 3 to 4% of its budget to Basra.

 

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Infrastructure Projects Launched in Baghdad

The provincial governor of Baghdad has announced the launching of infrastructure projects worth $172 million in the towns surrounding Baghdad.

baghdad infrastructure

Iraq Infrastructure

The new infrastructure projects include water purification, roads, electricity and sanitation. They will be carried out in the towns of Abu Ghraib, Al-Mahmoudiyyah, Al-Tarmiya, Jisr Diyala and Al-Sada

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Completed Housing Project in Najaf

A housing project of 500 units has been completed in Najaf Iraq. The new complex also comprises a mosque, shopping mall, a kindergarten and two schools.
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Iraq is enduring a severe housing crisis; and the Iraqi government is currently pushing for a major campaign to construct and supply 2 million new housing units. A number of international construction firms are working on projects throughout Iraq, but the current housing supply is far behind the actual demand.

 

 

 

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Basra International Oil and Gas Free Zone

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BIOGH Iraq

Basra International oil and gas Hub Limited (BIOGH) was established in 2009 mainly to develop an oil and gas hub in the Free Zone at Khor Al Zubair in Basra, Iraq. In September 2012, BIOGH and the Free Zone Authority (FZA) started a joint venture, an independent authority under the Ministry of Finance. The zone is located close to Basra International Airport and nearby port Khor Al Zubair; covering 11 square kilometers; and will comprise mixed-use industrial, logistics, oil and gas storage, commercial and residential accommodation, a mixture of ancillary uses, alongside customs and airstrip. The Public Private Partnership between BIOGH, as the developer, and the FZA, is based on a 50-year agreement and development permit in favor of BIOGH.

BIOGH is currently the third largest oil exporter and has potentially second largest oil reserves in the world. Iraq has planned to spend over $30 billion annually on oil and gas infrastructure to increase production from the current 3 million barrels a day to 9 billion barrels a day by 2020. In order to attain this level of production, it is estimated that between $400 and $600 billion of investment in the oil and gas sector will be needed. A major portion of this amount will be required between 2015 and 2020 and that equals the annual figure of $30 million.

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Iraqi telecommunication upgrades to 3G

Iraq’s telecom operators will upgrade their networks from 2G to 3G; this process will lead to faster economic development in the country. Iraq remains one of the few countries in the world without 3G services, even though Internet penetration is only 7%, it is still a profitable market.

3G iraqHowever, due to the upheaval surrounding the elections the timing of the renovation remains undecided.

In the hopes of attracting foreign investors, the Iraqi cabinet consented to allow the operators provide 3G services instead of the original plan, which was to hold auctions for the licenses. According to a joint report from Boston Consultancy Group and GSMA, launching the internet services and introducing mobile broadband could increase Iraq’s GDP by 3.7% by 2025 and create more than 500,000 new jobs.

Iraq has currently three telecom operators including Zain Iraq, Asiacell a subsidiary of Qatar’s Ooredoo, and Korek Telecom partially owned by France Telecom. Each of these companies will have to pay $307 million to use the 3G spectrums, bagging the government near $1 billion. With Iraq’s population of 35 million, the spectrum charge is high and consumers will undoubtedly have to pay a great deal more for 3G subscriptions so that operators can make a return on their investment.

 

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Iraq signs two oil deals worth 1 Billion dollars

Iraq cabinet signed two deals with two oilfield providers both worth $1 billion to operate the nations largest oil field.

Petrofac Ltd., a British company, won a three-year deal worth about $585 million for running Rumaila field projects. China Petroleum Engineering & Construction Corp was granted a $425 million service contract for engineering, procurement and construction of a power station.

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Iraq expands its oil capacity

Iraq’s cabinet granted BP PLC and China’s CNPC management rights of the massive 17.8 billion barrel Rumaila field in southern Iraq during the country’s first postwar oil auction in 2009.

After decades of war and sanctions, the Iraqi government seeks to rapidly expand its oil capacity .

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Iraq oil exports record in April

Iraq’s oil exports reached 2.5 million barrels per day for April, an increase from 2.4 million barrels per day from March’s. Iraq’s exports went up despite the inactivity of the major northern Kirkuk-Ceyhan pipeline, which has been shut down due to insurgent sabotage at the beginning of March.images oil iraq

The ministry of oil stated that April’s total of 75 million barrels generated $7.5 billion in revenues. Iraq is currently dependent on exports through its southern terminals at Basra.

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Bismaya Housing Project in Baghdad

In May 2012, the National Investment Commission of Iraq (NIC) awarded the South Korean firm Hanwha Engineering and Construction Corp. an $8 billion construction contract for the development of Bismaya New City Project located 10 km south east of Baghdad on the Iraqi-Kuwaiti Highway, it will take up a a total area of 1,830 hectare. This mega-project is the first and biggest development project throughout the history of Iraq; it is planned to accommodate 100,000 residential units and will be the home of 600,000 citizens of Baghdad.

Two years later, in April 2014, Hanwha E&C wrapped up the construction of the world’s largest precast concrete plant. This factory is the first milestone to building Bismaya New City. The plant will help construct a housing complex big enough for 4,000 individuals every two months; it will produce subsidiary materials necessary for erecting a building, such as pillars, walls and beams, which will be assembled later at the construction site. This technique is suitable for large-scale constructions since it permits stable production of high-quality building supplies in a shorter period in comparison to the traditional method that creates and compiles the construction materials on site.Concrete Factory Plant

The new plant spread on a total area of 660,000 square meters and contains three factories producing concrete materials such as interior and exterior walls and slabs. The plant consumes 6,400 tons of concrete on a daily basis, which is enough to supply 430 ready mixed concrete trucks, to support the construction of Bismaya. The project has employed one hundred Korean subcontractors and 1,500 Korean workers.

 

Moreover, the precast concrete plant is expected to serve an important role in Iraq’s national housing program led by the NIC to provide homes for one million Iraqis. The construction of the plant went smoothly; in fact, the completion ceremony of the factory took place two months ahead of the scheduled date.

 

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Iraq Oil Production Surpasses Hussein Era

This year, Iraq oil output has been higher than since before Saddam Hussein took over the rule. However, Iraq is facing the problem of exporting the oil out of the country. In February, Iraq oil production increased by 50% compared to 2010, in fact, Iraqi oil fields pumped an average of 3.6 million barrels of crude on a daily basis. The last country oil output record was back in 1979 during Iraq’s petroleum peak, when it produced 3.5 barrels a day. International companies including BP, PLC, Royal Dutch Shell and ExxonMobil Corp., have spent billion of dollars to renew oil fields battered by decades of war, negligence and sanctions. But the Iraqi government has been slow to improve and develop the infrastructure to transport that oil from wells to tankers. The country’s old pipes and paltry storage have made even minor disruptions such as routine pump maintenance, a major reason for these companies to shut down wells. Attacks on infrastructure and workers are still common, in addition to weak bureaucracy and corruption. Iraqi executives frequently require foreign operators to stop production from few of the country’s largest fields before bad weather or during equipment breakdowns. It is important to not that the stakes aren’t just high for Iraq. In fact, a global oil market has emerged dependent on rising Iraqi production. Moreover, the boom in U.S. shale-oil output and oil-sands production in Canada, accompanied by the increase in Iraq’s output has helped stabilize prices amid rising global demand and conflicts in countries such Libya and Syria. The International Energy Agency forecasts that Iraq will be the sole largest contributor to oil global production growth over the next 2 decades.

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Iraq oil

The IEA based this forecast on Iraq’s steep growth, expecting that Iraqi production to reach about 8 million barrels per day by 2035. Nonetheless, it predicts that if Iraq falls short of that target by 3 million barrels a day, and global prices will be 10% higher than they would have been. Growing Iraqi production is crucial for Iraq and U.S.A. Oil exports finance about 90% of Iraq’s budget, making them a key element to stability. In 2013, Iraq’s budget deficit reached 6% of its GDP because it didn’t attain its export target and pending on security increased. Sectarian violence is still widespread and Al-Qaeda affiliated groups have infiltrated western Iraq. Iraqi’s oil industry has suffered years of war, neglect and sanctions; Iraq’s reservoirs have undergone underinvestment and mismanagement. After the U.S. occupation American and Iraqi engineers has struggled to improve output. Today, many of the modernization efforts have succeeded. For instance, Shell started production of about 200,000 barrels a day in Majnoon. In March, Russia’s OAO Lukoil production started with 120,000 barrels a day in West Qurna located northwest of Basra.

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