Category: Iraq Industry & Trade News

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Fighting Climate Change “an Economic Opportunity” for Iraq

Writing in the Financial Times, Iraqi President Barham Salih argues that addressing climate change represents an opportunity for Iraq and the region to introduce measures that will leave them on a more solid foundation as they face the challenges of the decades to come.

Click here to read the full article (subscription required)

(Picture: Tigris river in central Baghdad; Credit: Christian Lindgren)

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CITIC Construction Wins $3.7bn Iraq Power Deal

By John Lee.

China’s CITIC Construction has won the bid for the first and second phases of AI Khairat heavy oil power plant in Iraq.

Yang Jianqiang, Deputy President of CITIC Construction, held talks with Mazin Wajih, Chairman of Harlow International, in Dubai representative office, and received the letter of acceptance issued by Mazin Wajih.

It is estimated that the contract value of each phase of the project is about $2.85 billion.

The AI Khairat heavy oil power plant is located in Karbala Province in south-central Iraq, about 100km away from Baghdad, next to the Karbala refinery, which provides its by-product heavy oil for the power plant as fuel.

The total installed capacity of the project consists of 8 power generating units of 400MW each, of which 4 units will be constructed in each phase and put into operation in batches.

As the EPC general contractor of the project, CITIC Construction will be responsible for designing, procurement, construction, installation, commissioning and operation and maintenance of the project for a period of ten years, and assist in financing on the premise that the owner is guaranteed by the Iraqi government.

Wining the bid has made CITIC Construction see another major breakthrough in electric energy market of Iraq following the project of Maisan combined cycle power plant. After the completion of the project, it will become an energy hub around the capital, which will provide power for the reconstruction of Iraq’s post-war industry, help ease the power shortage of residents in central and southern Iraq, improve people’s livelihood and safeguard social stability.

(Source: CITIC)

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IBBC’s Autumn Conference – Open for Business Engagement

IBBC’s Autumn conference is back with a bang and open for business engagement.

On 22nd November this year the overarching conference topic is looking to the future with ‘sustainability’- whether in terms of energy and renewables, the Iraqi economy and its diversification, or sustaining finance, logistics and training. Underpinning much of this is the application of technology and modernising ways to run a successful economy, with the tech forum’s online sessions.

With a successful election now completed and a new government being formed, it’s a good time to discuss the prospects for reform and sustainability.

IBBC members find that the Autumn conference is probably the best forum to meet the leaders in the region and those engaged with provision of supply chains and decision making. Many of Iraq’s industry sectors have regional headquarters in Dubai, which enables the high turnout and interest in the networking opportunities.

The current speaker line-up is probably the best for some years, featuring the Iraqi Minster of Oil H.E. Ihsan Abdul Jabbar Ismaael giving a keynote speech, H.E. Dr Thani bin Ahmed Al Zeyoudi UAE Minister of State for Foreign Trade. Dr Salem Chalabi, President and Chairman of the Trade Bank of Iraq, Iraqi Ambassador to the UAE H.E. Mudaffar Mustafa Al Jubouri and UK ambassador Mr Mark Bryson-Richardson, Mr Simon Penny, UK’s Consul General and Trade Commissioner for the region, and top academic Professor Frank Gunter on the economic outlook for Iraq.

For those engaged with energy, Mr Zaid Elyaseri from BP will be speaking, and Dunia Chalabi will be representing new Iraqi entrants Total, who have signed contracts to invest USD 27 billion in and plan to bring in hundreds of expatriates into Iraq to develop the Ar-Ratawi oil field and build gas capture, solar power and injection water facilities. Leading figures from Oilserve, Ms Sara Akbar, and Hydro-C, Mr Hassan Heshmat, will discuss sustainable energy, and a separate session will be voted to Basrah Gas Company.

The Finance panel includes a stella line up with Emirates Credit Insurance Co, Standard Chartered Bank and IFC. Mr Aziz Khudairi heads the Industry panel and a significant group including Martrade and IBBC Autumn Conference Principal Sponsor Sardar Group.

Finally, and in parallel, an online Tech forum session on Data and its benefits to Government, Economies, business, and citizens, will include speakers from UK’s GDS, British Water, Agri-epicentre, Serco and Mastercard with more to be confirmed.

Overall, the panels will be exploring in more detail how to ensure the current high oil and gas prices can bring investment and rebalance the economy and promote and develop agriculture and enhance the food chain to increase employment and reduce food poverty. These discussions will also address how to improve the water supply and waste reduction and consider the role of clean power generation in relation to climate change and initiatives to improve sustainability.

We look forward to welcoming you to Dubai, or even following us online if you are unable to make it in person.

A pre-conference reception will be held at the Iraqi Pavilion at Dubai EXPO2020 in the evening of 21st November.

Finally, we’d very much like to thank our sponsors: Principal Sponsor Sardar Group, Gold Sponsor: Hydro-C, Silver Sponsor: Serco and Reception Sponsor: Basra Gateway Terminal

(Source: IBBC)

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Iraq to Invest in Greener Technology

By John Lee.

Iraq reportedly plans to invest $3 billion annually to transition from burning liquids to burning natural gas in its power plants.

Deputy Prime Minister and Finance Minister, Ali Allawi (pictured), told the Middle East Green Initiative Forum in Saudi Arabia that Iraq will also end gas flaring by 2025.

He also recommitted Iraq to working towards a greener future.

More here.

(Sources: The National, Arab News)

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Norwegian-led Consortium to build Solar Plant in Karbala

By John Lee.

Iraq signed an agreement to build a 525-MW solar power plant in Karbala.

The project will be built by a consortium of companies led by the Norwegian Scatec, whose main shareholder is Equinor (formerly Statoil).

Also involved are Egypt’s Orascom and Iraq’s Al-Bilal.

The signing comes after recent announcements of renewable energy projects by Masdar, TotalEnergies and PowerChina.

(Source: Ministry of Oil)

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Petrofac Fined $105m; Shares Rally Futher

By John Lee.

Shares in Petrofac were trading up more than 7 percent on Monday, as the company was ordered to pay GBP 77 million [$105 million] after the UK’s Serious Fraud Office (SFO) secured further convictions in its investigation into bribery and corruption at the Jersey-registered energy services company.

On Friday, Petrofac Limited pleaded guilty to seven separate counts of failing to prevent bribery between 2011 and 2017.

Petrofac Limited admitted that it failed to prevent former senior executives of the Petrofac Group from paying GBP 32 million (USD 44 million) in bribes, to help the Petrofac Group win over GBP 2.6 billion (USD 3.5 billion) of contracts in the oil and gas industry in Iraq, Saudi Arabia and the United Arab Emirates.

The Court heard how, over a period of six years, senior executives within the Petrofac Group engaged in elaborate schemes to corrupt the awarding of contracts, using agents to systematically bribe officials to win lucrative contracts by unfair and dishonest means.

A key feature of the case was the complex and deliberately opaque methods used by these senior executives to pay agents across borders, disguising payments through sub-contractors, creating fake contracts for fictitious services and, in some cases, passing bribes through more than one agent and one country, to disguise their actions.

Lisa Osofsky, Director, Serious Fraud Office, said:

“By pleading guilty, Petrofac Limited has accepted that senior executives within the Petrofac Group acted deliberately and without conscience in the pursuit of greed. The company’s failure to prevent this conduct distorted competitive market conditions and tainted the oil and gas industry.

“Today’s result should serve as a warning; the SFO will use all the powers at its disposal to root out and prosecute companies and individuals, whose criminal activity detrimentally affects the reputation and integrity of the United Kingdom.

“The SFO welcomes Petrofac Limited taking responsibility for its conduct.“

This is the third set of convictions secured by the SFO in its four-year investigation into cross-border corruption at the Petrofac Group. David Lufkin, former Head of Sales at Petrofac pleaded guilty to 11 counts of bribery in 2019 and 3 counts of bribery in 2021.

Lufkin was today sentenced to a two-year custodial sentence, which was suspended for 18 months. In addition to pleading guilty, David Lufkin co-operated with SFO investigators and assisted with the investigation.

The SFO continues to investigate this case.

Petrofac Chairman René Médori said:

“This draws a line under a regrettable period of our history. We have taken responsibility, reformed and learned from these past mistakes, as acknowledged by the SFO and the Court. Most importantly, the extensive work that we have done since the SFO investigation began means that the Petrofac of today has a comprehensive compliance and governance regime that meets or exceeds international best practice.

“The past behaviour uncovered by the SFO would not be possible today, and we look to the future a better and more focused company, well positioned to capitalise on the opportunities we see before us.“

(Sources: SFO, Petrofac)

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Al Majal Business Park (AMBP) in Burjessia Celebrates 6th Anniversary

On September 21st, 2015, Al Majal Business Park (AMBP) opened its doors in Burjessia, serving local and international clients. Today AMBP is a recognized, leading life support services provider in Iraq.

Innovation has always been part of our journey. We continue to apply value-driven innovative ideas to deliver world-class services at AMBP. Our team works tirelessly to achieve our primary objective; setting a premium standard for life support services in Iraq to help accelerate the development of Iraq’s oil and gas industry.

Throughout the years, we have expanded our service offerings at AMBP to accommodate all of our clients’ needs. From premium accommodations, office leasing solutions, dining and catering facilities to customized warehousing and workshop solutions and amenities including state of the art recreation and fitness facilities, all of which are offered in a strategically located, highly secured 145,000 sqm property.

6 years at AMBP is a remarkable time of professional activity and exciting projects with notable clients and partners, all of which were accomplished with our valued former and current employees.  Currently, AMBP employs around 100 outstanding and experienced professionals. We are proud of our team, full of creativity and determination to offer only the best to our clients.

On this occasion, Mr. Ali Agha Jaffar, the CEO and President of Al Majal said:

“We have earned the trust and respect of the market for one simple reason: we have great people who are dedicated to setting the standard in the industry.

“I would like to thank all of our clients, principals and friends for choosing Al Majal Business Park (AMBP) as your trusted life support services provider in Iraq. We share the success of the past 6 years with you all and look forward to continue contributing to your achievements.“

Al Majal Business Park

Al Majal Business Park (AMBP) offers full life support services within two highly secure properties in the south of Iraq, located in North Rumaila and Burjessia. Both locations are strategically located within proximity to major oilfields and provide easy access to major ports and transportation networks.

AMBP has set the standard for premium life support services in Iraq including residential accommodations, customizable office leasing solutions, customizable workshop and warehousing solutions, dining and catering services, security provided by international firms, 24/7 medical services (offered through direct subscription), and premium amenities including state of the art recreation and fitness facilities.

(Source: AMBP)

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TotalEnergies signs $10bn New Deals in Iraq

TotalEnergies, the Iraqi Ministries for oil and electricity, and the country’s National Investment Commission (NIC) have signed, in the presence of the Prime Minister of Iraq, major agreements covering several projects in the Basra region, designed to enhance the development of Iraq’s natural resources to improve the country’s electricity supply.

Iraq, a country rich in natural resources, is indeed experiencing electricity shortages while it faces a sharp increase in demand from the population.

TotalEnergies, with the support of the Iraqi authorities, on the one hand will invest in installations to recover gas that is being flared on three oil fields and as such supply gas to 1,5 GW of power generation capacity in a first phase growing to 3 GW in a second phase, and, on the other hand, will also develop 1 GWac of solar electricity generation capacity to supply the Basra regional grid.

These agreements include:

  • The construction of a new gas gathering network and treatment units to supply the local power stations, with TotalEnergies also bringing its expertise to optimize the oil and gas production of the Ratawi field, by building and operating new capacities.
  • The construction of a large-scale seawater treatment unit to increase water injection capacities in southern Iraq fields without increasing water withdrawals as the country is currently facing a water-stress situation. This water injection is required to maintain pressure in several fields and as such will help optimizing the production of the natural resources in the Basra region.
  • The construction and operation of a photovoltaic power plant with a capacity of 1 GWp to supply electricity to the grid in the Basra region.

These projects represent a total investment of approximately $10 billion (100% share).

Patrick Pouyanné, TotalEnergies’ Chairman and CEO, said:

“These agreements signal our return through the front door to Iraq, the country where our Company was born in 1924. Our ambition is to assist Iraq in building a more sustainable future by developing access to electricity for its people through a more sustainable use of the country’s natural resources such as: reduction of gas flaring that generates air pollution and greenhouse gas emissions, water resource management and development of solar energy.

“This project perfectly illustrates the new sustainable development model of TotalEnergies, a multi-energy Company which supports producing countries in their energy transition by combining the production of natural gas and solar energy to meet the growing demand for electricity. It also demonstrates how TotalEnergies can leverage its unique position in the Middle East, a region where the lowest-cost hydrocarbons are produced, to gain access to large-scale renewable projects.“

(Sources: TotalEnergies, Ministry of Oil)

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Iran Slashes Natural Gas Exports to Iraq

By John Lee.

An Iranian official has said that Iran’s natural gas (methane) exports to Iraq have been reduced, but not because of arrears owed by Iraq.

Mohammad Reza Julaei , the Dispatching Director of the National Iranian Gas Company (NIGC), told Shana that exports have been reduced by 38 million cubic meters per day; they were believed to be running about 40 to 45 million cubic meters per day previously.

But he said that this was done based on an agreement and with prior notice, and has “nothing to do with [Iraq’s] arrears to Iran.”

He added, however, that the need to settle the debts is still on the agenda.

(Source: Shana)

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