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20 December, 2017

IBN Welcomes New Expert Blogger

By Padraig O’Hannelly.

This week at Iraq Business News, we are delighted to welcome a new Expert Blogger to our ranks:

Alessandro Bacci (pictured) is an independent energy consultant in relation to business strategy and corporate diplomacy (policy, government, and public affairs).

Much of his activity is linked to the MENA region, an area where he lived for four years. A multilingual professional, Alessandro holds a Bachelor of Laws and Master of Laws from the University of Florence (Italy), a Master in Public Affairs from Sciences Po (France), and a Master in Public Policy from the Lee Kuan Yew School of Public Policy (Singapore).

You can read his first blog here, and we look forward to reading more of his perspectives on the energy sector in Iraq.

20 December, 2017

Genel Energy confirms Payments for KRI Oil Exports

Genel Energy has announced the receipt of payments from the Kurdistan Regional Government (KRG) for oil sales during September 2017 from the Tawke and Taq Taq PSCs.

DNO ASA, as operator of the Tawke PSC, has announced the receipt of $54.32 million from the KRG as payment towards September 2017 crude oil deliveries to the export market from the Tawke licence. Genel’s net share of the payment is $13.58 million.

The Taq Taq field partners have received a gross payment of $9.70 million from the KRG for oil sales during September 2017. Genel’s net share of the payment is $5.33 million.

Genel has also received an override payment of $6.55 million from the KRG, representing 4.5% of Tawke gross field revenues for the month of October 2017, as per the terms of the Receivable Settlement Agreement.

Combined, Genel’s December 2017 net receipts total $25.46 million.

(Source: Genel Energy)

18 December, 2017

Lukoil signs Contract for Exploration at Block 10

Russia’s Lukoil has signed contracts with the state-owned Iraqi Oil Exploration Company to carry out seismic surveys at the Eridu field in Block 10, and also at Block 10’s southern and central parts, previously not part of the survey.

The scope of appraisal works at Eridu field includes a 3D seismic survey of 983 square kilometers to update the extension of the field and its geological structure.

At Block 10, 2D seismic acquisition of the southern and central parts is planned to be accomplished over an area of 3,500 linear kilometers to ensure the mapping of targets for prospect drilling.

The approved geological exploration plan for Eridu field envisages the drilling of additional appraisal wells on a mid-term horizon.

Block 10, covering 5,600 square kilometers, is located in the governorates of Dhi Qar and Muthanna, 120 kilometers west of Basra. The interests in the project are: Lukoil – 60% (operator), Inpex Corporation (Japan) – 40%.

The Iraqi party to the agreement is represented by the state-owned South Oil Company (SOC).

The drilling of the first exploration well, Eridu-1, in February of 2017 led to the discovery of a major oilfield. Preliminary data indicate it is the most significant discovery in Iraq for the past 20 years.

The drilling of the second and third wells confirmed the field’s earlier assumed geological model.Block 10, covering 5,600 square kilometers, is located in the governorates of Dhi Qar and Muthanna, 120 kilometers west of Basra.

(Source: Lukoil)

17 December, 2017

Germany is Top Contributor to Stabilization in Iraq

The Government of the Federal Republic of Germany has contributed an additional US$ 94 million (€80 million) to two major UNDP programmes that are helping to stabilize newly liberated areas – the Funding Facility for Stabilization (FFS), which finances fast-track initiatives in areas liberated from the Islamic State of Iraq and the Levant (ISIL) and the Iraq Crisis Response and Resilience Programme (ICRRP), which promotes recovery and resilience-building.

This latest instalment brings Germany’s total contribution to both programmes to $263.2 million, making it the top supporter of UNDP’s work in this area.

UNDP Resident Representative for Iraq, Ms. Lise Grande, said:

“Nothing is more important right now in Iraq than stabilizing the areas which have been liberated from ISIL.

“The task is huge. Electricity grids need to be rehabilitated, water systems repaired, rubble removed and schools and hospitals opened. Germany’s support comes at just the right time. Three million Iraqis are still displaced. Helping to improve conditions in their home towns is the first step in giving people confidence in their future.”

Ambassador of the Federal Republic of Germany in Iraq, H.E. Dr. Cyrill Nunn, lauded UNDP’s stabilization programmes in Iraq as one of the most effective and efficient mechanisms in Iraq to lay the ground for the safe return of internally displaced persons, giving hope to those who strive for a normal life again.

“I am happy to see Iraqi youth today taking the lead in shaping the future of their country. Germany is committed to support recovery in Iraq, but we firmly believe that it is the people of Iraq who will ultimately determine how successful and sustainable that recovery will be,” stressed Ambassador Nunn on his first visit to Mosul, on 12 December 2017, to review progress of stabilization work in Mosul, especially focusing on health and education projects.

17 December, 2017

Germany is Top Contributor to Stabilization in Iraq

This latest instalment brings Germany’s total contribution to both programmes to $263.2 million, making it the top supporter of UNDP’s work in this area.

UNDP Resident Representative for Iraq, Ms. Lise Grande, said:

“Nothing is more important right now in Iraq than stabilizing the areas which have been liberated from ISIL.

17 December, 2017

Germany is Top Contributor to Stabilization in Iraq

This latest instalment brings Germany’s total contribution to both programmes to $263.2 million, making it the top supporter of UNDP’s work in this area.

UNDP Resident Representative for Iraq, Ms. Lise Grande, said:

“Nothing is more important right now in Iraq than stabilizing the areas which have been liberated from ISIL.

16 December, 2017

IOM Assessment on Displacement and Returns in Iraq

As the Iraqi Government celebrated its final victory over ISIL this week, IOM, the UN Migration Agency, released a new study, which shows that 90 per cent of displaced Iraqis are determined to return home. This is similar to the long-term intentions recorded in 2016.

More than 1.3 million internally displaced persons (IDPs) have returned to their places of origin so far in 2017. In total since the start of the crisis in 2014, IOM estimates that more than 2.8 million displaced Iraqis have returned, while more than 2.9 million people remain displaced.

The IOM study, Integrated Location Assessment (ILA) analyzes both displacement and return movements of conflict-affected people across Iraq. Approximately 2.1 million displaced persons and more than 1.6 million returnees, based in 3,583 locations across Iraq, have been covered in the assessment, which was carried out between March and May 2017.

Only in Basrah and Najaf did families report that they consider integrating into the local community, where they are displaced.

According to the findings, Anbar was the single governorate where most returns took place in both 2016 and 2017, followed by Ninewa in 2017.

Among the main findings, this study identifies that residential and infrastructure damage is widespread. Nearly one third of returnees are reported to have returned to houses that have suffered significant damage, and 60 per cent to moderately damaged residences. Regarding infrastructure, most damage appears to affect roads, followed by the public power grid and water networks.

15 December, 2017

Petrel Resources Shares Slump following Iraq Settlement

By John Lee.

Shares in Irish-based Petrel Resources were trading 20 percent down on Friday after the company said it had reached a settlement in respect of the disposal of 2.2 million Petrel shares by Amira Petroleum‘s advisers notwithstanding a lock-in agreement entered into on 19 August 2013.

According to the company:

On 14 August 2013, the Company announced that it had agreed to acquire from Amira Petroleum N.V. (“Amira Petroleum”) a 20 per cent shareholding in Amira Hydrocarbons Wasit B.V. (“Amira”), the holder of a 25 per cent carried interest in certain oil and gas exploration and production licences in the Wasit Province of Iraq.

The consideration for the acquisition included the issue of 18,947,368 shares in Petrel (representing 19.82 per cent of the enlarged issued share capital of Petrel (“the Initial Consideration Shares”). The Initial Consideration Shares were agreed to be locked-in until the date of spudding the first conventional oil well in respect of Amira’s interest in the Wasit province (the “Spudding Date”) but that, if the Spudding Date had not occurred by 19 August 2018, Petrel could, amongst other things, elect to re-acquire the Initial Consideration Shares for a nominal amount.

As part of the agreement with Amira Petroleum, 2.8 million of the Initial Consideration Shares were, at the direction of Amira Petroleum, issued to its advisers in satisfaction of fees payable by Amira Petroleum (“the Adviser Shares”) and were subject to a lock in agreement as detailed above.

As of the date of this announcement, the Spudding Date has not occurred.

During December 2017, Petrel learnt that 2.2 million of the Adviser Shares had been sold between March and July 2017, notwithstanding the lock-in agreement.

The parties have reached a settlement and agreed that the vendors of the 2.2 million Adviser Shares shall make a payment of £100,000 to the Company (representing approximately 4.5p per Adviser Share sold). The remaining Adviser Shares shall remain subject to the lock-in agreed in 2013.

This announcement contains inside information for the purposes of Article 7 of EU Market Abuse Regulation 596/2014.

(Sources: Petrel Resources, Google Finance)

14 December, 2017

Petrofac wins $160m Iraq Contract

Petrofac’s Engineering & Production Services (EPS) division has secured an award worth US$160 million from Basra Oil Company (BOC), previously known as South Oil Company (SOC), for its Iraq Crude Oil Export Expansion Project (ICOEEP).

The new two-year extension reflects Petrofac’s continued delivery focus and five-year track record as the incumbent operations and maintenance service provider.

The facility, which is responsible for a significant proportion of Iraq’s oil export, is located 60 kilometres (km) offshore the Al Fao Peninsula in Southern Iraq. It comprises a central metering and manifold platform and four Single Point Moorings (SPMs) which facilitate oil export onto awaiting crude carrier tankers.

In addition, Petrofac is responsible for almost 300 km of subsea pipelines,1800 metres of subsea hose infrastructure and a marine spread comprising 14 vessels.

Mani Rajapathy, Managing Director, Engineering & Production Services East, said:

“We are delighted to continue with our role in support of this key crude export facility. Since the start of our involvement in 2012, we have exported more than 2.2 billion barrels of oil while retaining an impeccable safety record. We have also remained focused on adding value for our client through the deployment of innovative and differentiated solutions.”

Ihsan Ismaael, Director General, Basra Oil Company, said:

“Petrofac is a key partner for BOC. The team has supported us over the last five years to significantly increase export from the ICOEEP facility and we look forward to continuing our relationship into 2019.”

(Source: Petrofac)

14 December, 2017

Prince Charles: AMAR gives us Reason to have Faith in Humanity

By Padraig O’Hannelly.

HRH The Prince of Wales has paid tribute to the work of the AMAR International Charitable Foundation on the occasion of its 25th anniversary.

Addressing the celebration in London’s Lancaster House on Wednesday, Prince Charles said:

“Today is an opportunity to honour the work of the remarkable AMAR teams … whose professionalism has delivered extraordinary outcomes in health and education for so many people over these twenty-five years.

“Each and every one of them, whether they work in Iraq or in another part of the Middle East, or in London or Washington, should feel deeply proud of all that AMAR has achieved. So too, should the many businesses and commercial entities – and in particular the Iraq Britain Business Council [IBBC] – whose magnificent support over the years has made all of this work possible.

“If I may, I would also like to pay a special tribute to Baroness Nicholson whose indefatigable leadership and extraordinary professionalism has been so crucially important to this endeavour for so many years.“

He continued:

“AMAR has given us all reason to have faith in humanity. It has saved countless lives, created hope from despair and achieved nothing short of miracles.”

AMAR thanked the Prince for his wonderful support of the organisation since its founding, and in particular as its Patron for the past thirteen years.

Please help ensure Iraq’s children have the childhoods they deserve — support AMAR’s work today: https://appeal.amarfoundation.org/

(Sources: AMAR International Charitable Foundation, Clarence House)