Category: featured

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KBR, Anton Oil to replace Shell at Majnoon?

By John Lee.

According to a report from Platts, the Iraqi oil ministry is about to award two management contracts to replace Shell at the Majnoon oil field.

Sources say the state-run Basra Oil Company (BOC) has opted to operate the field instead of replacing Shell, and junior partner Petronas, which announced last year it was relinquishing its 2010 technical service contract.

They added that KBR will play a project management consultant role, while China’s Anton Oil will handle production operations and management, ch after the recent oil price decline — which altered the financial equation for the contract.

More here from Platts.

(Source: Platts)

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IOCs scramble to analyze new Contract Model

Iraq is giving international oil companies (IOCs) just two weeks to evaluate a new contract model that will serve as the basis of an upcoming bidding round for 11 oil exploration and development projects.

The Oil Ministry has set April 15 as the deadline for companies to submit bids, according to Abdul Mahdy al-Ameedi, director general of the Petroleum Contracts and Licensing Directorate (PCLD), who presided over a briefing for IOCs at the ministry Thursday to outline the contract model and bidding process.

More here from Iraq Oil Report (subscription required).

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GKP appoints new Non-Exec Chairman

Gulf Keystone Petroleum (GKP) has announced the appointment of Jacobus (“Jaap”) Huijskes as Non-Executive Chairman effective as of 11 April 2018, immediately following the announcement of the Company’s 2017 Full Year Results.  

Jaap Huijskes, who replaces Keith Lough as Chairman, joined the Board of Gulf Keystone in November 2017 as a Non-Executive Director.  Today’s news follows the January 2018 announcement of Mr Lough’s intention to step down from the Board.  Mr Huijskes selection was the result of a process undertaken by the Nominations Committee and was unanimously supported by the Board. 

Jaap Huijskes has had a distinguished career in the oil and gas sector, including relevant experience in the Kurdistan region of Iraq.  He was most recently a Director at OMV (AG:OMV), the largest listed Austrian oil and gas company, where he was responsible for Exploration and Production (E&P) and oversaw the Company’s expansion into new territories.  He also played a key role in OMV’s operations in the Kurdistan region of Iraq. 

Prior to this, Mr Huijskes held a number of senior positions at Shell, including Executive Vice President of Upstream Major Projects and Project Director at the Sakhalin Energy Investment Company, which was set up to develop the Sakhalin-II oil and gas project in Russia.  He holds a Masters in Mechanical Engineering from Delft University of Technology in The Netherlands. 

In addition to serving on the Board of Gulf Keystone, Mr Huijskes is currently Non-Executive Chairman of the Dutch state-owned integrated oil and gas company, Energie Beheer Nederland. He was a member of OMV’s Executive Board for E&P between 2010 and 2016.

Commenting on today’s announcement, Jaap Huijskes, said:

“I am delighted to have been selected to take on the Non-Executive Chairman role.  Gulf Keystone has a strong investment case, underpinned by a great asset and management team. 

“With recent positive progress, including the signing of the important Shaikan Crude Oil Sales Agreement, we are looking forward to recommencing investment into the field and generating value for our investors, as well as the Kurdistan Region of Iraq.  I look forward to leading the Board and supporting the Company at this exciting time.

“On behalf of the Board and everyone at GKP, I would like to thank Keith Lough for his leadership and significant contribution to the business over the past two years.  It was a challenging period for the Company and we are grateful for his hard work and wise counsel.  We wish him the very best for the future.”   

(Source: GKP)

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Iraq may build Oil Storage in Japan, South Korea

By John Lee.

Reuters reports that Iraq is studying the possibility of building crude oil storage facilities in South Korea and Japan.

Alaa al-Yasiri, head of the State Oil Marketing Organization (SOMO), said the move is part of a plan to increase sales to Asian clients:

“SOMO’s new strategy is to form trade arms in Asian markets to maximize profits and boost crude shipments to Asian markets.”

More here from Reuters.

(Source: Reuters)

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An Urgent Call to Action: Run. Give. Volunteer.

The Iraqi Children Foundation (ICF) has appealed for runners and doners for its annual run in Alexandria, Virginia.

“More than 4 million children have been impacted by extreme violence in several areas including in Ninewa and al-Anbar.  Last year alone, 270 children were killed.  Many were robbed of their childhood, forced to fight on the frontlines.   Some will bear the physical and psychological scars for life due to exposure to unprecedented brutality.  Over 1 million children were forced to leave their homes.”

—       January 19, 2018, Statement by UNICEF Regional Director Geert Cappelaere, after visiting Iraq

During ISIS’ occupation, UNICEF called Iraq “one of the most dangerous places in the world for children.”  Now, after Iraq has driven ISIS from its strongholds, the emotional, psychological, and physical wreckage is staggering.  For everyone who loves Iraqi children, this an urgent call to action.   We call on all to Run. Give. Volunteer. Today.

RUN.  Run – or walk – with us at the IN THEIR SHOES 5K  on May 5th.  Tell the world these kids are not forgotten.  We lift them up with our hearts and voices.

GIVE.  GIVE because we can’t hire a teacher or lawyer or social worker, or buy food, school supplies, and clothing without money.

VOLUNTEER.  VOLUNTEER because every volunteer on our team saves ICF money that can go directly to the Iraqi kids we all love.  We salute our 2017 volunteers who donated thousands of hours of loving service!

ARE YOU IN?

(Source: ICF)

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Major Plans to Boost Iraq Oil-Exporting Capacity

By John Lee.

Iraq is reportedly ramping up efforts to expand capacity to pump and export oil.

Ihsan Abdul Jabbar, the director-general of state-run Basra Oil Company, told Bloomberg that Iraq is seeking bids from six companies for a $4-billion project to inject seawater into its southern oil fields, and the country has already received bids from five companies interested in building a processing facility to double output at the Majnoon field to 450,000 bpd.

He added that Iraq is also studying a proposal from a Dutch company to build a 10 million-barrel storage facility and an oil-exporting terminal with a capacity of 2 million barrels a day on an artificial island off the coast.

More here from Bloomberg.

(Source: Bloomberg)

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IBBC joins British Chambers of Commerce in boost to UK-Iraq Trade

Iraq Britain Business Council joins British Chambers of Commerce in boost to UK – Iraq Trade

IBBC is delighted to announce that we are officially an international affiliate to the British Chambers of Commerce (BCC). The IBBC is now the official organisation to whom British companies and organisations will be referred by the BCC.

This relationship neatly mirrors our status with the Iraqi Federation of Chambers of Commerce and the Kurdish Federation of Chambers of Commerce and Industry who are close partners of IBBC. Indeed the 5 largest Iraqi chambers, namely Baghdad, Erbil, Basrah, Najaf and Karbala are full members of the IBBC.

The BCC sits at the heart of a business network that spans the length and breadth of the UK, with links to markets across the world, with 52 accredited Chambers in the UK as trusted champions of businesses, places, and global trade.

Chambers of Commerce provide a voice to the business communities they represent, amplifying their priorities and concerns. In every region and nation of the UK, Chambers of Commerce and their members work to improve the local business environment in which they operate.

The Chamber of Commerce network exists to support and connect companies, bringing together firms to build new relationships, share best practice and foster new opportunities.

Christophe Michels, MD of IBBC says:

“IBBC is delighted to have been granted this affiliate status by BCC, as this endorses our role as intermediaries and trade enablers with Iraq for all the work we do with British business in the country. It completes the circle of business with Iraqi companies, as we have an equal position in Iraq, and are thus able to bring businesses in both UK and Iraq together through this unique leverage.”

Dr Adam Marshall, Director General at BCC stated:

“We are delighted to welcome IBBC to the BCC and we look forward together to strengthening relations and business opportunities between the UK and Iraq in the weeks and months ahead.”

(Source: IBBC)

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Minister of Oil meets Head of Jinhua

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has met with Mr Lu Ygiang, the President of the Chinese company Jinhua, and his entourage.

The two parties discussed during the meeting about enforcing the bilateral cooperation and the development of East Baghdad oil field.

The Minister confirmed he was keen to prepare the appropriate work environment for the company, while Mr Ygiang said his company was ready to start work after “the completion of all the procedures“.

Late last year, the Ministry of Oil signed the initial form of the contract to develop the East Baghdad field with Jinhua.

(Source: Ministry of Oil)

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Oil Ministry Conf on Development of 11 Exploration Zones

By John Lee.

Iraq’s Ministry of Oil will hold a conference on Thursday 29th March to announce for a new licensing round to develop and rehabilitate 11 exploration zones on the borders of Iran and Kuwait, including one offshore zone on the Gulf.

The conference will be attended by 13 international companies which have purchased the data portfolios, in addition to two companies which intended to buy data portfolios.

These 15 companies will compete for the rights to develop and rehabilitate these exploration zones.

Assim Jihad, spokesman of the Ministry of Oil, said also that the form of the contract will be “service contract with a few modifications”.

(Source: Ministry of Oil)

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Shell Sells West Qurna-1 stake for $406m

Shell EP Middle East Holdings B.V. has agreed to sell the entire share capital of Shell Iraq B.V (SIBV), which holds its 19.6% stake in the West Qurna 1 oil field, for $406 million, to a subsidiary of Japan’s Itochu Corporation.

The purchaser will also assume debt of $144 million as part of the transaction. The sale has received the necessary regulatory consent, is expected to complete in the next few days, and has an effective date of 31 December 2015.

Since joining the project in 2009, Shell has enjoyed successful cooperation with its partners in the West Qurna 1 venture, which will continue to be operated by ExxonMobil.

Shell’s Upstream Director, Andy Brown (pictured), said:

“Iraq is an important country for the Shell Group, and exiting West Qurna 1 allows us to focus our resources on other assets in our Iraq portfolio. We are grateful for the support of the Iraqi government during the divestment process.

“Shell remains committed to working with its partners to redevelop Iraq’s energy infrastructure by capturing associated gas, through the Basrah Gas Company (BGC) Joint Venture, for domestic and regional consumption.

“This deal maintains the momentum behind Shell’s $30bn divestment programme and is in line with the drive to simplify our upstream portfolio and reshape the company into a world class investment.”

Shell’s other businesses in the country will not be affected by this divestment.

(Source: Shell)