Cursor International executes projects and collaboration activities across several industries.
By John Lee.
The Ministry of Oil has extended the closing date for tenders for the new 100,000-bpd refinery in Kut.
Companies interested in investing must submit their documents by the end of working hours on Tuesday, 4th October 2018.
For further information please contact studies@oil.gov.iq or studies.oil@gmail.com.
(Source: Iraqi Ministry of Oil)
Following the earlier announcement that Philip Dimmock will retire and thus not seek re-election at today’s Annual General Meeting, Gulf Keystone Petroleum (GKP) has announced the appointment of Martin Angle as Senior Independent Non-Executive Director with effect from Monday 16th July 2018.
Mr Angle has had a distinguished executive career across investment banking, private equity and industry. His previous roles include senior positions with SG Warburg & Co. Ltd, Morgan Stanley, Dresdner Kleinwort Benson, as well as the Group Finance Director at TI Group plc, then a FTSE100 company.
More recently, he spent time at Terra Firma Capital Partners where he held various senior roles in its portfolio companies. As a Non-Executive Director he has served on a number of Boards including Savills plc, where he was the Senior Independent Director, National Exhibition Group (Chairman), Severstal, and Dubai International Capital.
He currently chairs the Remuneration Committee and is a member of the Audit, Nomination and Sustainability Committees at Pennon Group, a FTSE 250 company.
On joining the GKP Board following the Annual General Meeting, Mr Angle will also succeed Philip Dimmock as Chairman of the Remuneration Committee and join the Audit and Risk Committee.
Jaap Huijskes, Gulf Keystone’s Non-Executive Chairman, said:
“We are very pleased to welcome Martin Angle to the Board. Martin brings a depth of financial, commercial and boardroom experience to the Company and we look forward to his support and counsel at this exciting time as we prepare to invest to increase production at Shaikan.
“On behalf of everyone at the Company, we would also like to thank Philip Dimmock for his considerable contribution to the Board since his appointment; he leaves the Company at a time when the Company has strengthened considerably.“
(Source: GKP)
By John Lee.
Protestors took to the streets of Basra for the fourth day on Wednesday, protesting the killing of a demonstrator by security forces, and demanding jobs and public services.
According to AFP, protesters also blocked the road leading to the oilfields of West Qurna, while international oil companies (IOCs) have reportedly moved senior staff out of the area for their security.
On Tuesday, the Cabinet approved measures to improve the delivery of essential public services in Basra province, with a focus on improving the supply of electricity to homes and businesses.
It also “instructed Iraq’s embassies, consulates and all border entry points to apply new visa and residency fees for foreign nationals seeking to enter Iraq“.
The Cabinet voted to establish a specialist committee staffed by teams from the Planning and the Construction & Housing Ministries to assess the value of resuming several incomplete or suspended projects, and instructed the Ministry of Finance to speed up the allocation of funds for projects that are deemed suitable for completion.
Meanwhile, Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] ordered “secondary contractor companies in West Qurna oil field to provide new jobs for the citizens of the neighbor towns near to the field“, and to “provide additional jobs for the citizens of Shatt Al-Arab district and the other towns“.
“Otherwise“, he added, “the Ministry will take the appropriate procedures towards the companies that violates the directions“.
(Sources: AFP, Iraqi Cabinet, Ministry of Oil)
(Picture credit: Ahmed Mahmoud)
IBBC holds annual Cumberland Lodge Conference with Political, Academic, Education and Business Experts, 6-8 July
The Iraq Britain Business Council hosted its annual Cumberland Lodge Retreat on 6-8 July, inviting a host of political, business, academic and education experts to discuss the most pertinent issues relating to Iraq and its future.
The title of the conference was ‘Iraq: Domestic Expectations & Geopolitical Aspirations’ and addressed a variety of issues on regional politics, election diagnosis and the future of higher education in Iraq.
On Friday members and guests heard speeches from Baroness Nicholson of Winterbourne, President of IBBC and the Prime Minister’s Trade Envoy to Iraq, Dr Edmund Canon Newell, Principal of Cumberland Lodge, Mr Nazar Mirajan Mohammed, Minister Plenipotentiary Iraq Embassy and Sara Akbar, Founder Member of IBBC, Kuwait Government Adviser and CEO of new IBBC member OiLSERVE.
The conference also featured in-depth discussions with high level representatives from the Government of Iraq, including Dr Abdul Razzaq Al-Issa, Minister of Higher Education and Scientific Research, Dr Adbul Kariem Al Faisal, Chairman of the PM’s Advisory, Dr Dara Rasheed, Deputy Minister for Construction, Housing and Municipalities and Deputy Head of Refaato and Dr Salah Hadi Saleh Alhashim, DG for Scholarships at he Ministry of Higher Education and Scientific Research.
Agenda & Speakers
Session 1: Present Situation in Iraq
Chair: Baroness Nicholson of Winterbourne
Dr Barham Salih MP, Coalition for Democracy, Jon Wilks CMG (tbc), HM Ambassador to Iraq, Dr Renad Mansour, Research Fellow, Chatham House, Professor Toby Dodge, Director Middle East Centre, LSE
Session 2: Iraq in a Regional Perspective
Chair: Dr Renad Mansour, Research Fellow, Chatham House
Sara Akbar, CEO Oil Serve Kuwait
Session 3: China and Iraq
Chair: Botan Osman, Managing Director, Restrata
Raffaello Pantucci, Director of International Security Studies, RUSI
Session 4: IMF view on Iraq
Chair: Gavin Wishart, Board Member, IBBC
Gavin Gray, Mission Chief for Iraq, IMF
Session 5: Partnerships between British and Iraqi Universities
Chair: Dr Victoria Lindsay, Director British Council Iraq
Professor Obay Al Dewachi, President of Mosul University, Professor Nick Petford, Vice Chancellor, Northampton University, Professor Mohammed Al Uzri, Honorary Professor with Social and Epidemiological Psychiatry Research Group, Leicester University, Professor John Strachan, Vice Chancellor, Bath Spa University
On Saturday 7, an after dinner speech was given by Dr Mohammed Jasim, Library Director of Mosul University, who gave an impassioned presentation on the progress made in rebuilding the university’s dilapidated library.
IBBC would like thank the staff at Cumberland Lodge, all speakers and delegates who contributed to the extremely fruitful discussions, and to its members, with representatives attending from Al Burhan Group, Al Nukbha OFS, Bath Spa University, BP, Olive Group, Eversheds Sutherland, G4S, KBR, Menzies Aviation, Mosul University, Najaf Chamber of Commerce, OiLSERV, Penspen, Perkins+Will, Petrofac, Restrata, Serco, Shell, TurnKey LLC, University of Leicester, University of Northampton and Wood.
(Source: IBBC)
By John Lee.
Dana Gas has said it has received $43.8 million in dividends from Pearl Petroleum Company Limited for condensate and LPG sales in the Kurdistan Region of Iraq (KRI) in the first half of 2018, including a $7 million payment for the month of June.
The company added that the capacity to process gas and condensate from the Khor Mor field (pictured) will increase by 580 MMscf/d and 20 mbbld, respectively, with the expansion programme is on track to deliver an increase in output of 80 MMscf/d by Q3 2018.
(Sources: Rudaw, Mubasher)
Gulf Keystone Petroleum Ltd., operator of the Shaikan Field in the Kurdistan Region of Iraq, has announced the successful completion of the private placement of a 5-year senior unsecured $100 million bond issue (the “New Notes”).
The New Notes will be issued at 100 percent of par and carry a 10 percent fixed semi-annual coupon. The bond placement received strong investor demand, both from existing and new investors across international markets and was oversubscribed.
The New Notes issue is expected to settle on or about 25 July 2018, subject to customary conditions precedent. An application will be made for the New Notes to be listed on an appropriate recognised exchange. The proceeds from the New Notes will be used to refinance all of Gulf Keystone’s existing $100 million Guaranteed Notes due 2021 (the “Existing Notes”).
With respect to the Existing Notes that have not tendered for exchange, the Company intends to exercise the option to redeem all of the Existing Notes then outstanding at par value according to the call option, expected to take place on 26 July 2018.
Jón Ferrier (pictured), Gulf Keystone’s Chief Executive Officer, said:
“Following our recent announcement of the resumption of investments at the Shaikan Field to increase production to 55,000 bopd, an increase by about 70% compared to current levels, this refinancing resets the Company’s capital structure that was put in place in conjunction with the restructuring in 2016. This is another positive milestone for the company and the Kurdistan Region of Iraq.
“We also look forward to updating the market on our plans to increase production to 75,000 bopd and up to 110,000 bopd in due course.“
Sami Zouari, Gulf Keystone’s Chief Financial Officer, said:
“The refinancing confirms the substantial progress achieved by the Company. The New Notes considerably strengthen the Company’s financial capabilities as we embark on our next investment phases in the Shaikan field.”
(Source: GKP)
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.
Floating Oil Island will handle Iraq’s expected Spurt in Exports
The South Oil Co. (SOC), based in Basra, Iraq, will establish a floating oil island off the coast of al-Faw Peninsula to increase its export capacity by as many as 2 million barrels a day.
The company announced the project June 14 in anticipation of a surge in Iraqi oil exports to reach 5-6 million barrels per day. Indeed, OPEC on June 23 approved an increase in crude oil output to meet growing demand.
Hamzah al-Jawahiri, an Iraqi Oil Ministry consultant, explained that Basra province has five floating terminals overlooking the Arab Gulf for commercial work and two fixed offshore terminals at Khor al-Amiyah and al-Basra dedicated to loading about 80% of Iraq’s oil exports.
He told Al-Monitor, “All of these terminals require technical and administrative staff working around the clock. The ministry noted the need for more flexibility, as work will double in the future with the increase in oil and oil derivatives output. This requires additional technical, logistical and human support that can be provided by the oil island project near the seven Iraqi terminals. The project will facilitate shift work and the delivery of services with no interruption caused by [outside] emergency disruptions, human errors or terminal platforms oil spills.”
Jawahiri revealed that the island will include a spare-parts warehouse for all equipment and pumps, in addition to civil protection and technical services teams, as well as comfortable and modern accommodations for workers. “The floating island will spare Iraq work delays due to possible failures,” he said. “It will save time when it comes to oil export and prevent any emergency crisis caused by the disruption of any of the pumps. Recently, Iraq has paid delay penalties of about 300 million Iraqi dinars [about $252,300].”
He said the island will provide storage capacity for oil derivatives, black oil and refinery waste. “The island is linked to jetties and will provide a ready alternative in the event of disruption of any of the seven terminals.”
A source in the oil company’s media office told Al-Monitor, “The project will … also provide other services, such as anchoring and launching oil tankers and ensuring their technical and logistical support. Tankers will be filled with oil stored on the island in sufficient quantities.”
Jawahiri said a contract has been awarded to a Dutch company regarding the island project, including a preliminary agreement, but he provided no further details other than to say discussions are ongoing about the completion period and expected costs.
However, Alaa al-Yasiri, the director general of the State Organization for Marketing of Oil (SOMO), told Al-Monitor, “The contract is expected to be signed in the first quarter of 2019, with operation at partial capacity set for the first quarter of 2022. All services will be provided in the fourth quarter of 2022.”
He added, “Iraq is in dire need of expanding its export outlets. Its services must be in line with modern technology, and it must be able to cope with the potential oil and oil derivatives increase. SOMO’s new plans include joint projects with Asian companies to invest in the continent’s vast market. The Asian market consumes 60% of Iraqi oil exports. … The Ministry of Oil wants to turn SOMO into a profit-earning company. The floating oil island will help achieve this.”
Oil Ministry spokesman Assem Jihad said the project coincides with plans to build a national tanker fleet to transport oil and oil derivatives. “It is also in line with plans to restore the capabilities of the Iraqi Oil Tankers Co. to transport crude oil and oil derivatives to all parts of the world.”
Jihad said the island will help Iraq transfer oil to consumers via four giant tankers. “Three other tankers will be added at later stages,” he said.
Some experts worry about the coming increase in oil output. Oil projects expert Mohammed Zaki Ibrahim told Al-Monitor, “Experiences proved that sporadic increases in crude oil output offered for sale on global markets does not serve the Iraqi economy. Increasing exports above 3 million or 4 million barrels per day will harm Iraq gravely and deny it any opportunity to develop other resources. This also will deplete oil resources in the south.”
Meanwhile, Iraq urgently needs financial resources, with its deteriorating economy and a suffering agriculture sector. The floating island will provide hundreds of jobs, limit export delays and reduce the cost of transporting oil and derivatives.
By John Lee.
By John Lee.
The National Investment Commission (NIC) has announced a new investment opportunity in Iraq:
(Source: National Investment Commission)
(Picture: Business opportunity word cloud, from ibreakstock/Shutterstock)
By John Lee.
Iraq’s Ministry of Oil has announced interim oil exports for June of 105,640,160 barrels, giving an average for the month of 3.521 million barrels per day (bpd), an increase from the 3.490 bpd exported in May.
These exports were entirely from the southern terminals, with no exports registered from Kirkuk via Ceyhan.
Revenues for the month were $7.323 billion at an average price of $69.322 per barrel.
May export figures can be found here.
(Source: Ministry of Oil)
By John Lee.
Iraq’s Ministry of Oil has announced final oil exports for May of 108,175,920 barrels, giving an average for the month of 3.490 million barrels per day (bpd), an increase from the 3.340 bpd exported in April.
These exports were entirely from the southern terminals, with no exports registered from Kirkuk via Ceyhan.
Revenues for the month were $7.551 billion at an average price of $69.801 per barrel.
April export figures can be found here.
(Source: Ministry of Oil)