Author: Editor

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Positive Indicators at IBBC Conference

At a major Iraqi business event in London on Tuesday, there was a strong sense that Iraq’s perceived risk profile is improving, and that this is an excellent time to do business in the country.

Nearly 300 delegates attended the Iraq Britain Business Council (IBBC)‘s Spring Conference at the Mansion House, which focused on “building a diversified and modern economy“, with many of those flying in from Iraq specially for the occasion.

This record attendance was just one of the positive indicators in evidence at the event, with speakers pointing to improved security, better relations between the Kurdistan Regional Government (KRG) and the central government in Baghdad, and a growing trend towards up-skilling and capacity building in the local population; here at Iraq Business News, we’ve seen a positive indicator of our own, with a 15 percent increase in our website traffic over the past year.

Closing the conference’s first day, IBBC Managing Director Christophe Michels also drew attention to the growing number of companies joining his organisation, and a much more relaxed atmosphere in Iraq’s major cities.

The second day of the conference also saw a full house at the Royal Overseas League to discuss business opportunities for Iraqi and British small- and medium-sized enterprises (SMEs).

(Picture: Baroness Fairhead CBE, UK Minister of State for Trade and Export Promotion, addressing the conference.)

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Iraq Extends Deadline for Qayara Refinery Bids

By John Lee.

Iraq has extended the deadline to bid for the construction and operation of a new 100,000-bpd Qayara refinery.

The full statement from the Ministry of Oil is as follows:

The ministry of oil would like to announce for the investment refinery in Ninawa governorate/ Qayara with a capacity of 100 thousand barrels / day.

The execution is according to the methods of BOOT or BOO and according to the investment law of the refineries No.64 for the year 2007 and its amendments.

The products of the refinery must be environment friendly according to the international standards.

The tax breaks must be according to the investment law No.13 for the year 2006.

In accordance with the second amendment of the investment law No.64 for the year 2007. The subtraction on the crude oil price over the ship is (8%) “The subtraction must be more than 5$ and less than 10$ of the global price”.

The studies, planning and follow-up directorate in the ministry of oil have prepared the data portfolio of the refinery and the price of the data portfolio shall be (30) thousand dollars, or its equivalent in Iraqi Dinars “nonrefundable”.

–  The closing date of selling data portfolios is at the end of the work hours of Tuesday the 15th of May 2018.

–  The receipt of the documents from the companies whom would like to invest in the above mentioned refinery must be to the end of the work hours of Thursday the 14th of June 2018.

The presentation of the documents will be to the Studies Planning & Follow-up Directorate directly in a closed envelop. Otherwise the documents will be rejected.

For further information please contact the E-mails (studies@oil.gov.iq) or (studies.oil@gmail.com).

(Source: Ministry of Oil)

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Oil Ministry Finalises Export Figures for March

By John Lee.

Iraq’s Ministry of Oil has announced final oil exports for March of 107,050,000 barrels, giving an average for the month of 3.453 million barrels per day (bpd), a slight increase from the 3.426 bpd exported in February.

The exports were entirely from the southern terminals, through 39 international companies, with no exports registered from Kirkuk via Ceyhan.

Revenues for the month were  $6.435 billion at an average price of $60.114 per barrel.

February export figures can be found here.

(Source: Ministry of Oil)

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Exxon, Baghdad face Setback on Seawater Project

By John Lee.

Talks between ExxonMobil and Iraq on the multi-billion-dollar Common Seawater Supply Project (CSSP) have reportedly reached an impasse.

According to Reuters, two sides differ on contract terms and costs.

Ian Thom, principal analyst at consultancy Wood Mackenzie, told the news agency:

“The CSSP would be expensive and challenging but there’s opportunity here (for Exxon) … to get access to resources on a very large scale and to achieve something and really make a difference to its own business.”

More here from Reuters.

(Source: Reuters)

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Expert Blog: Seeds of Life

By Elena Kornienko.

Once upon a time, there lived a widow woman and her son, Jack, on their small farm in the country. Every day, Jack would help his mother with the chores — chopping the wood, weeding the garden and milking the cow. 

But despite all their hard work, Jack and his mother were very poor with barely enough money to keep themselves fed. And one day he was told by his mother to go and sell their cow and use the money to buy seeds to plant a good crop. On his way to the market he met a man who offered to buy the cow for three magic beans.

The boy did this deal, however his mother got very upset that he brought home only three beans…. Long story short, the magic happened and this family started making money and had a decent living. Fairy tale, right? We have been raised by so many stories like that, but did we relate any of them to our adult lives? Just last week I felt like this boy planting the magic seeds. The seeds of knowledge. The seeds to grow the expertise of local Iraqi companies which work with international oil companies (IOCs).

It’s no secret that upon completion of any tender exercise, most of the bidders do not get any feedback from Procurement team on what made them loose that contract. And in most of the cases it is not price, but the technical proposal itself. Even having all capabilities to perform services, most of the contractors struggle to understand how to put their proposals in the best way.

And Iraq, unfortunately, is not unique in that. It is a common situation that Procurement departments are detached from their bidders and contractors. Some of IOCs run workshops on understanding their specific requirements in tenders and systems, however what is still missing in the industry is a good education system for local contractors on requirements to tenders from IOCs.

Last week, 10th April 2018, the first training in Iraq on tendering skills for oil and gas contractors took place in Basra, which was run independently from IOCs. It was specifically dedicated to local Iraqi companies and all participants got to benefit from learning what exactly is happening in Procurement teams of IOCs operating in Iraq and what makes bids win the contracts.

It was the biggest surprise to all participants that 70 percent of bids do not even make through the technical evaluation, and Procurement teams do not even get to see their prices! And while this training was a matter of planting the seeds, the watering is still to happen.

From the left to the right: Majid A. Abdullah from Basra Chamber of Industry, Sabeeh H. Al-Hashemi, Iraqi Businessmen Union Basra, Elena Kornienko, InfoCORE Consultancy, Najih Shinawa Ahmad Alqanas, Basra Chamber of Commerce

After the training, the meeting with Basra Chamber of Commerce, Basra Chamber of Industry and Iraqi Businessmen Union took place to discuss the future opportunities for local companies. Whenever it comes to education and training, it is about the future vision.

It might seem that these three beans are too small for the exchange of a milking cow, but the magic of those beans should not be underestimated. All these organizations have a great understanding of the importance of the development of local Iraqi companies, and agreed to provide support in conducting future training sessions for local companies in Basra.

What was unique and magic about that meeting is the understanding that all participants are on the same level of grasping the needs of local companies development. It was planting those magic beans and start watering them to grow the capabilities of local Iraqi contractors to make the economy of Iraq more sustainable.

Elena Kornienko has more than 15 years of professional experience in contracts, procurement and tendering in various roles from demand-identification to contract close-out. She has worked on major international oil and gas projects, including the Sakhalin-1 and Sakhalin-2 fields in Russia, and Iraq’s West Qurna-2. Now based in Dubai, she provides consultancy services to the oil and gas industry. Elena is a fluent English and Russian speaker, and a graduate of the Moscow State University of Commerce, holding a degree in Economics. She also graduated with distinction from the School of Business Administration at Portland State University and holds a CIPS diploma.

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Genel Energy receives Payment for January Sales

Genel Energy has announced that the Taq Taq partners have received a gross payment of $8.30 million from the Kurdistan Regional Government (KRG) for oil sales during January 2018. Genel’s net share of the payment is $4.57 million.

Genel also notes the announcement from DNO ASA, as operator of the Tawke PSC, that the Tawke partners have received $56.44 million from the KRG as payment for January 2018 crude oil deliveries to the export market from the Tawke licence. Genel’s net share of the payment is $14.07 million.

The Company has received an override payment of $7.86 million from the KRG, representing 4.5% of Tawke gross licence revenues for the month of January 2018, as per the terms of the Receivable Settlement Agreement.

In total, Genel’s net share of payments relating to January 2018 exports totals $26.50 million.

(Source: Genel Energy)

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Iraq: Building a Diversified and Modern Economy

IBBC Spring Conference 2018

Iraq: Building a diversified and modern economy 

Tuesday 24 April at Mansion House, London

IBBC’s Spring Conference returns on 24 April 2018, bringing to the heart of London the preeminent political and business figures involved in business and the economy of Iraq.

The theme for this years’ conference is Iraq: Building a diversified and modern economy. The conference aims to address the key challenges in building a diversified and modern economy, which will enable Iraq to build on the recent economic and social stability to progress into one of the Middle East’s major economies once again. Sessions will focus on Finance, Technology, Oil & Gas and Education.

The Government of Iraq has confirmed it is sending a high-level delegation of government representatives to the IBBC Spring Conference, which will be led by H.E. Dr Abdul Kariem Al Faisal, Chairman of the Iraq Prime Minister’s Advisory Commission (PMAC). The delegation will also include senior representatives from the Iraq Ministries of Oil and Industry.

The IBBC Spring Conference, held at the prestigious Mansion House, the home and office of the Lord Mayor of London, is traditionally IBBC’s flagship event, which attracts suppliers, investors, producers and buyers from Iraq, the UK and the wider international business community.

Prominent speakers include Baroness Nicholson of Winterbourne, President of IBBC and the Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Turkmenistan and Kazakhstan, Alderman Sir Alan Yarrow, Lord Mayor, Locum Tenens, Ambassador Jonathon Wilks, Her Majesty’s Ambassador to the Republic of Iraq and Baroness Fairhead CBE, Minister of State for Trade and Export Promotion, Department for International Trade.

IBBC expects a high attendance at the conference and the new round tables are designed for close business interaction and the facilitation of in-depth discussion, where delegates can focus on particular sectors of interest and engage with speakers and industry experts on the issues that really matter.

With representatives from all major interested parties involved in Iraq expected to attend, as well as pre- and post- networking events, the IBBC Spring Conference 2018 will provide many opportunities for networking at the highest level, as well as providing exceptionally informative and experienced panels.

Sessions on the agenda include:

Finance: ‘Criteria and process for obtaining major project finance’ Chair: Mr Gavin Wishart, IBBC

IBBC has gathered several preeminent voices in the finance industry to discuss the challenges and opportunities Iraqi and international firms face in sourcing capital for major projects. Representatives from some of the largest international finance organisations, JP Morgan and Allan & Overy LLP, as well as representatives from UK Export Finance and GE will discuss in detail the criteria and process of obtaining finance for major projects in Iraq.

  • Mr Richard S. Wilkins, Executive Director – Export Finance, JP Morgan
  • Mr Tom Longmuir, Counsel, Allen & Overy LLP
  • Mr Guto Davies, Managing Director – Global ECA CoE Leader, GE Capital
  • Mr David Craig, Deputy Head of Civil Infrastructure and Energy Business, UK Export Finance

 

Technology: ‘Developing Iraq’s digital economy’ Chair: Mr Ashley Goodall, IBBC

The IBBC Tech Panel brings together the two leaders of the UK and Iraq e-government initiatives in addition to experts in FinTech and entrepreneurial hub development. The panel will address in detail how innovative new technology and the use of information and communication technologies (ICTs) can improve the activities in the public and private sectors to help Iraq’s economy and growth.

  • Mr Ahmed Elkady, Partner, Ernst & Young
  • Mr Ali Al Dahwi, Consultant, Management Partners
  • Mr Chris Fergusson, Director at The Cabinet Office (Government Digital Service)
  • Mr Mohammed Khudairi, Managing Partner, Khudairi Group

 

Oil & Gas: ‘Need for locally available products and services – how the sector can help diversification of Iraq’s economy’ Chair: Mr Vikas Handa, IBBC

This expert panel consists of representatives from the largest IOC’s in Iraq, Governmental representatives from the Iraq Ministries of Oil and Industry and an Oil & Gas expert from the Department of International Trade. The session will cover all key aspects of Iraq’s Oil & Gas sector for 2018, delivered by the preeminent experts in the field and will include a panel discussion and Q & A chaired by Vikas Handa, the head of IBBC’s Oil & Gas Sector Table and its GCC representative.

  • Dr Mark Wharton, Development Manager, Shell Iraq
  • Mr Mike Wenham, Commercial Manager, BP Iraq
  • Mr Bob Dastmalchi, Vice President, Business Development, Chevron
  • Mr Craig Jones, Deputy Director, Oil & Gas, Department for International Trade
  • Representative from the Ministry of Oil, Government of Iraq
  • Representative from the Ministry of Industry, Government of Iraq

 

Education and Training: ‘Developing human capital in Iraq’

The panel brings together leading representatives from academia and business to address the challenges of developing Iraq’s human capital to support its transition into a diversified, vibrant economy. Members of the panel have direct experience of challenges and advantages of delivering advanced education and training in-country.

Chair & Presentation: Professor Paul Boyle, President & Vice Chancellor, Leicester University

  • Mr Alex Haynes, Senior VP Business Development AMEA & Southern Europe, Wood
  • Mr Saadi Faraj Muthanna, Business Development Manager, Al Nukhba-OFS FZCO
  • Ms Christine van den Toorn, Institute of Regional and International Studies, American University of Iraq
  • Mr Will Follett, Director, Restrata

With a dedicated and well informed agenda, IBBC are bringing the experts and practitioners best placed to answer these questions, so the international business community can work towards framing the future and contributing to a modern and outward looking Iraq. Each session will emphasise the growing business opportunities for international companies.

For more information and tickets, please visit: http://www.webuildiraq.org/ibbc-conference/spring-conference-2018/ or email london@webuildiraq.org.

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Turkish Firm wins Contract at Garraf

Turkish oil and gas services company Ergil has been awarded a design, engineering, fabrication, and testing contract by China Petroleum Engineering & Construction Corporation ( CPECC), for Petronas‘ Garraf oil field.

The company says it has completed designing, manufacturing and supplying of 12 units 320-bar high-pressure pig receivers and launchers, 28 units pig signallers, 12 units manual pig jib crane and 8 units pig trolley.

The field is owned by Petronas (45%), Japex (30%) and the North Oil Company (25%).

(Source: Ergil)

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GKP Confirms Payment for January Sales

By John Lee.

Gulf Keystone Petroleum (GKP) has confirmed that a gross payment of $23.1 million ($17.8 million net to GKP) has been received from the Kurdistan Regional Government (KRG) for Shaikan crude oil sales during January 2018.

(Source: Gulf Keystone)