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Iraq launches Social Fund to Fight Poverty

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

The Iraqi Ministry of Planning announced the launch of the Social Fund for Development on Sept. 23, with initial capital of $300 million, in cooperation with the World Bank.

The project aims to improve the living conditions of Iraq’s poor. High poverty rates in Iraq have led to repeated protests for 15 years calling for improving the standard of living and for more employment opportunities. These protests have resulted in dozens of deaths and injuries.

A May 2018 World Bank report noted that Iraq’s population of 38.5 million sits at the poverty line with a poverty rate of 22.5%. The spokesman for the Iraqi Ministry of Labor and Social Affairs, Ammar Menem, told Al-Monitor that this high rate is due to “exceptional security conditions ensuing from the war and its costs, as well as to the slump in oil prices. This resulted in the cessation of funding of projects for the rehabilitation of unemployed persons, a lack of investment projects and faltering economic growth.”

Click here to read the full story.

Posted on

Iraq launches Social Fund to Fight Poverty

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

The Iraqi Ministry of Planning announced the launch of the Social Fund for Development on Sept. 23, with initial capital of $300 million, in cooperation with the World Bank.

The project aims to improve the living conditions of Iraq’s poor. High poverty rates in Iraq have led to repeated protests for 15 years calling for improving the standard of living and for more employment opportunities. These protests have resulted in dozens of deaths and injuries.

A May 2018 World Bank report noted that Iraq’s population of 38.5 million sits at the poverty line with a poverty rate of 22.5%. The spokesman for the Iraqi Ministry of Labor and Social Affairs, Ammar Menem, told Al-Monitor that this high rate is due to “exceptional security conditions ensuing from the war and its costs, as well as to the slump in oil prices. This resulted in the cessation of funding of projects for the rehabilitation of unemployed persons, a lack of investment projects and faltering economic growth.”

Click here to read the full story.

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Oil Exports Revenues Rise in September

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for July of 106,795,022 barrels, giving an average for the month of 3.560 million barrels per day (bpd), a slight decrease from the 3.583 bpd exported in August.

These exports were entirely from the southern terminals, with no exports registered from Kirkuk via Ceyhan.

Revenues for the month were  $7.913 billion at an average price of $74.091 per barrel.

August export figures can be found here.

(Source: Ministry of Oil)

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Lawsuit Imperils Formation of Iraq National Oil Company

A coalition of Iraqi oil technocrats has filed a legal challenge against a law to re-establish the Iraq National Oil Company (INOC), which is likely to delay – if not derail – a major restructuring of the country’s oil sector.

Under the law, which took effect in April, the government has a six-month window to set up the new state company, which is supposed to take over many of the Oil Ministry’s most important powers in managing Iraq’s oil and gas resources.

More details here from Iraq Oil Report (subscription required)

(Source: Iraq Oil Report)

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Oil Production Resumes at Qayara

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has announced the resumption of production at Qayara oil field in Nineveh province.

The field has been rehabilitated following its destruction by the Islamic State group (IS, ISIS, ISIL, Daesh).

It is currently producing 30,000 barrels of oil per day, with a plan to increase to 60,000 bpd by the end of the year.

(Source: Ministry of Oil)

(Picture: Crude oil running through the streets of Qayara following damage caused by Daesh. Credit: UNICEF)

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SOMO may buy Oil Storage in Asia

By John Lee.

Iraq’s State Oil Marketing Organization (SOMO) is reportedly trying  to acquire storage tanks in Asia.

According to Reuters, any deal may involve a profit-sharing arrangement.

(Source: Reuters)

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Aggreko signs Contract with North Refineries Company

UK-based Aggreko (Middle East) and Iraq’s North Refineries Company have signed a contract for rental of temporary power generators to supply 15MW of power to Baiji Refinery as a first stage.

For Aggreko, the world’s largest supplier of temporary power, which also supplies South Refineries Company with 25MW,

This contract will help broaden the partnership between Aggreko, the world’s largest supplier of temporary power, and the Ministry of Oil and its affiliate companies, and is a demonstration of the collaboration between both entities.

Aggreko also supplies South Refineries Company with 25MW of power.

(Source: Eurogulf)

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Petrel Resources “Re-Establishing its Baghdad Operations”

Irish-based Petrel Resources has said it is “re-establishing its Baghdad operations”.

In its interim statement for the six months ended 30 June 2018, the company said:

“As we approach the end of 2018, Iraq is fitfully emerging from conflict, and again open for responsible business.  Baghdad has re-established its authority, by defeating Da’ech insurgents and recovering Kirkuk. 

“Pro-business parties won the 2018 elections.  While it proved difficult to form a National Government in 2018, which contributed to turbulent protests in southern Iraq during 2018, prospects are now more encouraging than at any time since 2010.

“Iraq has endured an almost continuous period of conflicts and/or sanctions since 1980, from which it is only now emerging.  Much trauma has been inflicted, as shown by the difficulties forming a government in 2018 and the protests in southern Iraq – a region generally supportive of Baghdad governments since 2005.

“Yet, despite 2018 difficulties, we believe Iraq is finally turning a corner: pro-business parties open to international investment polled well in the May 2018 general election.  But no one party holds a majority and, as of September 2018, negotiations on new government formation were ongoing.

“So far, the impact of this unrest on oil production from the southern fields has been limited, with August 2018 output stable at 4.65 million barrels daily (mmbod).  Internal demand of 0.8 mmbod leaves nearly 3.8 mmbod available for export – which has remained consistent despite infrastructural and decision-making challenges – though well below the 2008 target of 6.5 mmbod and the 2012 target of 8.5 mmbod.  Iraqi output is actually higher than immediately before the November 2016 OPEC + Russia cuts, and also higher than its current official OPEC quota of 4.444 mmbod.

“The Western Desert, where Petrel has an interest in exploration ground, is still impossible for international companies to effectively operate.”

(Source: Petrel Resources)

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GKP appoints new Non-Executive Director

Gulf Keystone Petroleum (GKP) has announced the appointment of Kimberley Wood as a Non-Executive Director with effect from 01 October 2018.

Kimberley Wood is a legal professional with 18 years’ experience and a specialist in the oil and gas sector.  Most recently she was Head of the Oil and Gas for EMEA at Norton Rose Fulbright LLP and remains a Senior Consultant for the firm. Throughout her career she has advised a wide range of companies in the sector, from small independents through to super majors.

Ms. Wood was a Partner at Vinson & Elkins RLLP from February 2011 to April 2015, and was previously at Dewey & LeBoeuf LLP. She was included as an expert in Energy and Natural Resources in the 2018 “Expert Guide” series and Women in Business Law, 2018 and is a member of the Advisory Board to the City of London Geological Forum.

Ms. Wood is currently a Non-Executive Director of Africa Oil Corp., an E&P company listed on the TSX (Canada) and Nasdaq OMX (Stockholm), with assets in Kenya and Ethiopia and a member of the Lundin Group.

Following Ms. Wood’s appointment, the Board will review the composition of the Board Committees.

Jaap Huijskes, Gulf Keystone’s Non-Executive Chairman, said:

“We are pleased to welcome Kimberley to the Board of Gulf Keystone Petroleum. She is a highly respected legal practitioner who has been counselling Boards for the past two decades.  We very much look forward to Kimberly’s contribution, in particular in this exciting phase of investment and of markedly increasing production from Shaikan.”

(Source: GKP)

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Iraq seeks Sanctions Waiver on Iran Energy Trade

Iraq is negotiating with the U.S. for exemptions from the impending snap-back of sanctions against Iran, arguing that it could not cut consumption of Iranian electricity and natural gas immediately without suffering serious economic harm and social instability.

An Iraqi delegation was in Washington last week seeking a waiver for its cross-border trade, meeting with senior officials in the State Department, Treasury Department, and National Security Council, according to multiple officials familiar with the talks.

More details here from Iraq Oil Report (subscription required)

(Source: Iraq Oil Report)