IBBC hosts largest ever Spring Conference

The Iraq Britain Business Council (IBBC) hosted the largest attendance for their Spring conference at the Mansion house on 24th May, with just under 300 attendees, half of whom came from Iraq.

Widely considered a success, the overall theme was ‘sustaining economic growth in Iraq’, There were multiple panels and roundtable sessions; including four panels focused on Finance and Energy, and additional themes of Education and Skills, Future Tech, Privatisation and a Kurdish ministerial roundtable with full attendance at all.

The conference was opened by Baroness Nicholson, president of IBBC.

Notable speakers included the Governor of the central bank H.E Mr. Mustafa Ghalib Mukheef, the Governor of Kirkuk, H.E. Mr Rakan Aljoubouri, the Chairman of the Trade Bank of Iraq, Dr Salem Chalabi and H.E. Dr Dara Rasheed, Minister of Planning, Kurdish Regional Government, and Mr Louis Taylor, CEO of UKEF, while Lord Howell gave an insightful and powerful speech on energy provision and the continuing importance of oil and gas distribution and production, especially in the light of Russian aggression. Professor Frank Gunter offered his paper for privatisation to a packed room. Dr Luay Al Khateeb, Distinguished Fellow Columbia University, chaired the Energy Transition session alongside with panellist from BP, Shell, GE and Oilserv.

The Rasmi AL Jabri award to the most outstanding, well run, professional Iraqi company engaged with the UK and international business from Iraq, was awarded to The Sardar Group and accepted by Mr Sardar Al Bebany from Rasmi’s son and Baroness Nicholson.

Delegates came from all regions of Iraq, including KRI, Basra and Baghdad, with chambers of commerce, leading Iraqi businesses, and private investors and business- people engaged and supplying IBBC corporate members.

Principal sponsors included the Iraq private banking league, who brought 20 banking members, gold sponsors – The Sardar Group and Hydro C and Bronze sponsors – GE.

The Conference was also made available online and a recording of the Tech forum is available here.

(Source: IBBC)

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Iraq confirms exceptional April Oil Exports

By John Lee.

Iraq’s Ministry of Oil has announced preliminary oil exports for April of 101,390,662 barrels, giving an average for the month of 3.380 million barrels per day (bpd), up from the 3.244 million bpd exported in March.

This is the highest daily export rate since the 3.438 million barrels per day achieved in April 2020.

The exports from the oilfields in central and southern Iraq amounted to approximately 98,100,042 barrels, while exports from the Kirkuk fields through the port of Ceyhan amounted to 2,991,060 barrels.

While not explicitly stated by the Ministry, these figures seem to imply that exports by road to Jordan have resumed as planned, and totalled 299,560 barrels for the month.

Revenues for the month were $10.609 billion, at an average price of $104.637 per barrel.

March’s export figures can be found here.

(Source: Ministry of Oil)

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Genel Energy appoints new Chief Financial Officer

By John Lee.

Genel Energy has announced that Luke Clements (pictured) has been appointed Chief Financial Officer (CFO) with immediate effect.

Luke, who was previously Interim Chief Financial Officer, has been responsible for a broad range of financial, commercial, and treasury related activities at the Company.

Having joined the Company in 2011 to advise on the merger of Vallares Plc and Genel Enerji, he became Group Financial Controller in 2015. Prior to joining the Company, Luke spent seven years at KPMG, where he was head of department and advised multiple FTSE100 and FTSE350 companies across a range of sectors.

David McManus, Chair, said:

Luke is the ideal person to continue delivering the financial platform that facilitates our strategy, a strategy he has been integral in building, as we seek to utilise our growing financial strength to add production and further bolster our progressive dividend.

“Genel’s low-cost production generates significant cash flow, in turn supporting investment in growth and material shareholder returns, and we look forward to Luke playing a significant role as we continue to aim to create material value for shareholders.

(Source: Genel Energy)

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AirSada Medevac: Keeping your People Safe in Iraq

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Being a success means employing the best staff, and the best staff will always go where they are valued and looked after.

That just one reason why AirSada‘s medevac services are essential to your operations in Iraq.

Working in collaboration with Medical Park Group, we provide 24/7 air ambulance services with super-fast response times, so you can be assured that your people are in the best hands.

Founder and CEO Tolga Urcu commented:

Employees and their families need to know that they’ll be taken care of in the event of an emergency, and we are passionate about making sure that happens.

Our recent service agreements with JGC and Hyundai show that we’re the go-to supplier for this essential service in Iraq, and we’re proud of our growing reputation for excellence.

Contact us now, and let us show you how AirSada can make a real difference to your business:

+90 531 780 36 53 (Turkey)
+90 212 890 01 27 (Turkey)

info@airsada.com

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Meet Top Iraqi Officials at IBBC Conference

Hear Iraq’s principal ministers and financiers share their vision and policies for Energy, Finance and Educational sectors at IBBC’s Mansion House conference on 24th May.

Iraq is on the cusp of forming a new Government and is benefitting from high oil revenues and stability. The IBBC Spring conference is ideally timed for a potential new Government announcement with key players in both oil and finance speaking and sharing their vision of what policies and the future landscape lies in store for Iraq and the private sector.

Iraq is clearly open for business, and we can expect to hear strong indicators of where the economy and investment will be directed and how banks and government expect to achieve this.

Addressing the new government agenda of reforms, we have a panel dedicated to the Iraqi Government White paper, led by Dr Alaa, the executive director or the Prime Minister’s reform unit.

It is also expected that the Minister of Oil will announce several investment opportunities that will be discussed in a separate session after the energy panel during the afternoon

This is your opportunity to meet these confirmed speakers: the Minister of Oil H.E. Ihsan Abdul Jabbar Ismaael, the Governor of the Central Bank of Iraq, H.E Mr. Mustafa Ghalib Mukheef, Ms Taif Sami, Deputy Minister of finance, the Minister of youth and sport H.E. Adnan Darjal Motar Al-Rubaye, and higher education, as well as a Dr Salem Chalabi, President & Chairman of the Trade Bank of Iraq and a delegation of Iraqi private banks. In addition, key IBBC members including BP country director Zaid Elysari, Shell, Total, GE, Siemens, KBR, SKA, Serco, Petronor and Petrofac, PWC, EY, Standard Chartered Bank, JP Morgan, TBI, SAP, Barclays, City and Guilds among many, and from the UK Government Mr Louis Taylor, director of UKEF are attending.

The overall theme will examine how Iraq can sustain economic growth going forward, through the significant speaker energy, finance and Insurance panels who will discuss this at length.

New topics include privatisation of state-owned enterprises at a round table discussion led by Prof. Frank Gunter with the participation of the Prime Minister’s Office, additionally, a special paper on the subject written by members of the IBBC Advisory Council will be launched on the day and form the backdrop of the discussion.

Panels on project finance and energy transition are included during the day.

Beyond these topics many companies will find ample opportunity to meet the key speakers, as well as network with large businesses in Iraq and UK during the conference and in separate sessions. IBBC constantly advocates for the opportunity of private business to change economies and this conference confirms the benefits business brings to Iraq.

Economic sustainability is not just confined to energy and finance sectors as the knock-on effect of an expanding economy is creating big demand for skilled employees across all sectors, an issue that will be addressed by the educational panel including MSelect, who’s Iraq employment report has shed great light on the unprecedented nature of skills and sectoral requirements and how they might be addressed.

IBBC are very proud to be holding, possibly our best conference and we hope those companies’ operating in Iraq and considering joining our council, will attend at this time of opportunity and evolution for Iraq’s economy to meet the people who are shaping its future.

Click here to register.

(Source: IBBC)

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US Law Firm Awarded for Iraq Advisory Role

By John Lee.

New York-based law firm Cleary Gottlieb Steen & Hamilton LLP has won the Infrastructure and Energy Projects Team of the Year award at Law.com International’s Middle East Legal Awards 2022.

According to a press release from the firm, it “was recognized for advising on Iraq’s gas growth integrated project, one of the largest projects ever in Iraq.”

The firm represented the Iraqi Ministry of Oil and two Iraqi state-owned companies, Basra Oil Company (BOC) and South Gas Company (SGC), in the major $27-billion investment project with France’s TotalEnergies.

Cleary partner Andrew Bernstein and associate Jad Nasr were mentioned as part of the team advising the Iraqi government in a Law.com International article about the deal.

The firm had previously advised Iraq’s oil ministry on a $17.2 billion deal with Shell and Mitsubishi to develop the infrastructure required to process natural gas in the southern part of Iraq.

(Source: Cleary Gottlieb)

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OPEC increases Iraq’s Oil Quota

By John Lee.

OPEC has reportedly agreed to increase Iraq’s oil production to 4.5 million barrels per day (bpd) in June.

The state-controlled Iraqi News Agency (INA) quotes Iraq’s representative to OPEC, Muhammad Saadoun, as saying that oil production will then increase by 50,000 bpd each month from July to September.

He also predicted anĀ  average oil price in excess of $100 per barrel until the third quarter of this year.

(Source: INA)

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KRG Denies seizing control of Oil Fields

By John Lee.

The Kurdistan Regional Government (KRG) has denied seizing the Bai Hassan and Dawd Gurg oil fields in Kirkuk from the Iraqi federal government’s Ministry of Oil.

On Saturday, the North Oil Company (NOC), which is owned by the Iraqi National Oil Company (INOC), claimed that the KRG took over the fields in what it said was a contravention of Iraqi law.

The KRG has issued a statement saying the claims are, “completely untrue and are aimed at sowing discord.

Bai Hassan was originally controlled by the Ministry of Oil (Baghdad), but seized by KRG forces in July 2014. It was subsequently returned to Baghdad (NOC) control in 2017.

(Sources: NOC, KRG)

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Iranian Gas passed off as Iraqi Origin

By John Lee.

Media in Pakistan report that Iranian LPG has been illegally imported into the country under the guise of Iraqi product.

According to Business Recorder, the latest case is one of five ships which are allegedly involved in the illegal import of Iranian LPG using a falsified declaration of origin.

Pakistan’s Ministry of Interior (MoI) has reportedly directed the authorities to take action against the carrier.

More here.

(Source: Business Recorder)

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DNO Profits Surge on Back of High Oil and Gas Prices

DNO ASA, the Norwegian oil and gas operator, today reported an 84 percent jump in operating profit in the first quarter of 2022 to USD 236 million on the back of high oil and gas prices and solid production performance. Net debt dropped USD 126 million quarter-on-quarter to USD 27 million.

“Oil and gas are back,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani, “and of course, DNO never left.” Operations have continued uninterrupted across the portfolio, notwithstanding the challenges faced by the industry in the past two years. “We’ve remained true to our commitment to develop oil and gas in a cost-effective and responsible way,” he added.

In addition to raising investments in its core business with the additional financial firepower, the Company will now step up to pay down debt and return cash to shareholders, according to Mr. Mossavar-Rahmani.

Yesterday, DNO announced a USD 200 million partial redemption of the DNO03 bond. In addition, USD 23.8 million of the bond previously acquired by the Company will be cancelled. At the late May AGM, the Company will ask shareholders to authorize an increase in annual dividend payments from NOK 0.40 to NOK 1 per share and retain the flexibility to resume its buyback program.

As previously reported, gross production at the Company’s flagship Tawke license in Kurdistan averaged 106,500 barrels of oil per day (bopd) during the quarter, of which the Peshkabir field contributed 64,500 bopd and the Tawke field 42,000 bopd. Of the total, 79,800 bopd were net to DNO’s interest. North Sea net production averaged 12,700 barrels of oil equivalent per day (boepd), bringing the Company’s total quarterly net production to 92,500 boepd.

In Kurdistan, DNO has ramped up drilling activities to maintain Tawke license gross production of 105,000 bopd on average in 2022. The first phase field development of the Baeshiqa license has been fast-tracked, with a third well, Zartik-2, currently drilling ahead at 2,300 meters.

In the North Sea, the Company projects net production in 2022 to remain 13,000 boepd on average. DNO’s active 2022 exploration program comprising seven wells was kicked off with the Kveikje discovery well (25-50 million boe gross resources and a DNO participating interest of 29 percent) which has proven up a new play concept in an area offshore Norway in which DNO has a significant acreage position. Six additional exploration wells will be drilled this year.

An earnings call with DNO CFO Haakon Sandborg will be held today at 11:00 (CET). A link to the call is available on the Company’s homepage www.dno.no.

Key figures

Q1 2022 Q4 2021 Full Year 2021
Gross operated production (boepd) 106,465 107,472 108,713
Net production (boepd) 92,548 94,175 94,477
Revenues (USD million) 339 396 1,004
Operating profit/-loss (USD million) 236 128 321
Net profit/-loss (USD million) 140 65 204
Free cash flow (USD million) 152 227 362
Net debt (USD million) 27 153 153

(Source: DNO)

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