Author: Editor

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Pipeline Network to cover all of Iraq

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has reportedly said that Iraq plans to build a network of pipelines to transport oil products throughout the country, as an alternative to expensive and hazardous road transport.

Reuters quotes him as saying that the network will be part of a strategic plan that includes pipelines to deliver both crude oil and oil products to neighbouring countries.

Earlier this month Iraq announced plans to build a crude-oil pipeline to Iran.

(Source: Reuters)

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Albilal Group joins IBBC

The Iraq Britain Business Council (IBBC) has announced that one of Iraq’s most significant companies, Albilal Group, has joined the trade organization.

Not only is Albilal a major EPC to many IOCs in Iraq, but also to the ministries of Electricity, Oil & Gas, Water and Infrastructure.

ABG was established since 1993 with main offices in Iraq and branch offices in UAE, Jordan and Egypt. As a $309m turnover company, they are now one of the most trusted and largest local companies in Iraq. Akeel Abdul Razzak, President & CEO of Albilal explains:

“The key to our success is the quality and expertise of our core staff, with both expat managerial excellence and over 3000 local Iraqi project deliverers”.

Albilal believes in training and development of personnel and this has seen us through the last difficult years in Iraq, to emerge resilient, sustainable and more capable as an organization.

ABG’s network of clients and partners includes many international and national firms working across the country in numerous several sectors. Albilal has 13 years of experience working in the Oil & Gas sector, with base camps located in all major Oilfields in southern region of the country. in the Power sector, the group earned significant stripes constructing 14 power plants and 71 substations across the country.

ABG is considered a 1st degree civil, mechanical and electrical construction company classified by the Ministry of Planning and Chamber of Commerce, making them one of the top companies in Iraq that is licensed and that has the ability to conduct mid to large scale projects. Albilal Group has received numerous awards over the years, two of which being for Reliability, Quality of Service and High Safety, it’s also ISO certified (ISO 9001, 18001, and 14001).

The group is delighted to be working currently on various essential projects in Iraq, covering Oil & Gas and Power and are set for an expansive 2018 and remains at the forefront of development in the key growth market of Iraq.

Christophe Michels, MD of IBBC says:

“2017 has been an exceptional year for IBBC both in the volume and quality of attendees to our conferences in UK and Dubai, the very well attended and successful trade missions to Baghdad and Basrah and for the number of International and Iraqi companies that have joined our network”.

“Albilal joins new IBBC members Chevron, Al Burhan, Shamara and Ratba groups, Leicester and Northampton University, Serco, Rolls Royce, MenziesAviation and Xreach.

“All in all we are seeing confidence and opportunity return to Iraq, especially across the sectors of Infrastructure, Oil and Gas, Power and Education, with the promise of Tech and Professional services to follow in the coming year.”

(Source: IBBC)

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Shaikan Payment Update

By John Lee.

Gulf Keystone Petroleum (GKP) has confirmed that a gross payment of $15.0 million ($12.0 million net to GKP) has been received from the Kurdistan Regional Government (KRG) for Shaikan crude oil export sales in August 2017.

(Source: GKP)

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Iraq’s Fifth Licensing Round

By Alessandro Bacci.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The Ministry of Oil has repeatedly said that it would like to renegotiate the terms of its service contracts with the international oil companies (IOCs) to link the fees the companies receive for developing the fields to the oil prices and to have them share the burden when oil prices decrease.

However, discussions between the federal government and the IOCs have been going on for the past two years with no tangible results until now. Companies affirm that they have submitted some recommendations, but then the process has not moved on.

At this point, it seems that to have a successful fifth licensing round, the federal government must produce in the coming months a new model contract (or at least an amended version of the present technical service contracts) capable of satisfying according to different price levels both the government and the IOCs.

Otherwise, it’s difficult for Iraq to reach the production target of 6 million bpd of crude oil by 2020, especially if other neighboring countries might soon offer better contractual terms.

Please click here to download the full report.

Alessandro Bacci 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. Alessandro is now based in London, United Kingdom (www.alessandrobacci.com). 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).    

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Iraq’s Fifth Licensing Round

By Alessandro Bacci.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The Ministry of Oil has repeatedly said that it would like to renegotiate the terms of its service contracts with the international oil companies (IOCs) to link the fees the companies receive for developing the fields to the oil prices and to have them share the burden when oil prices decrease.

However, discussions between the federal government and the IOCs have been going on for the past two years with no tangible results until now. Companies affirm that they have submitted some recommendations, but then the process has not moved on.

At this point, it seems that to have a successful fifth licensing round, the federal government must produce in the coming months a new model contract (or at least an amended version of the present technical service contracts) capable of satisfying according to different price levels both the government and the IOCs.

Otherwise, it’s difficult for Iraq to reach the production target of 6 million bpd of crude oil by 2020, especially if other neighboring countries might soon offer better contractual terms.

Please click here to download the full report.

Alessandro Bacci 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. Alessandro is now based in London, United Kingdom (www.alessandrobacci.com). 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).    

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Genel Shares Rise on Debt Reduction Plan

By John Lee.

Shares in Genel Energy closed the day up 5.9 percent on Wednesday, after the company’s bondholders approved its proposal to reduce the outstanding bond debt from $421.8 million to $300 million.

It will also extend maturity through amending and restating terms to a new 5 year tenor.

DNB Markets and Pareto Securities acted as managers for the refinancing.

(Source: Genel Energy)

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Genel Shares Rise on Debt Reduction Plan

By John Lee.

Shares in Genel Energy closed the day up 5.9 percent on Wednesday, after the company’s bondholders approved its proposal to reduce the outstanding bond debt from $421.8 million to $300 million.

It will also extend maturity through amending and restating terms to a new 5 year tenor.

DNB Markets and Pareto Securities acted as managers for the refinancing.

(Source: Genel Energy)

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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.

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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)