Partnership with foreign companies will provide the opportunity to acquire modern technologies and develop productivity[You must be registered and logged in to see this link.] an Iraqi reporter
Saturday 27 November 2021 0
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Signing ceremony of the contract for the establishment of the Basra Energy Company (Information Office of the Iraqi Ministry of Oil)
Iraq has taken its first steps to convert [You must be registered and logged in to see this link.] contracts for investing its oil fields into companies that organize work in them, with the aim of increasing Iraq's revenues and bringing more investments to this vital sector, which is the cornerstone of the Iraqi economy.
The first step was the approval of [You must be registered and logged in to see this link.] to establish the "Basra Energy Company", which will operate the Rumaila oil field near the Iraqi-Kuwaiti border, which was first discovered in 1955, and is considered the largest in Iraq and produces about a third of Iraqi oil, located 50 kilometers west of Basra city.
The licensing rounds were able to raise [You must be registered and logged in to see this link.] Iraq, which reached its lowest stage in 2007 with one and a half million barrels per day, reaching more than 4 million barrels per day, after these companies carried out a comprehensive development process for the Iraqi oil fields in the south of the country in various aspects of this sector, in production, export and extraction.
Field project financing
Iraqi Oil Minister Ihsan Abdul-Jabbar said that the Basra Energy Company includes the British "BP" and "Petrogaina" companies, in addition to the Basra Oil Company and the Iraqi Oil Marketing Company "SOMO", noting that "this project is a new establishment in which the company will assume the role of contractor." The chief is in Rumaila, under a technical service contract.” Abdul-Jabbar added at the ceremony announcing the company’s founding, that “the goal of establishing this company is to secure sustainable financing for the development projects of the Rumaila oil field, which is one of the most important oil fields in Iraq and the world by financing its activities,” noting that “the company will rise from the profits and contributions of the founding companies.” ".
One million and 700 thousand barrels
For his part, the representative of the Basra Energy Company, Zaid al-Yasiri, said, "The announcement of the establishment of the Basra Energy Company comes to develop work in the Rumaila field, to reach a peak production of one million and 700 thousand barrels." He explained that "the establishment of the Basra Energy Company represents an important step towards strengthening the financing of the implementation of the company's plans to develop the field."
The fourth field in the world
In turn, the Director General of the Basra Oil Company, Khaled Hamza, said, "The Rumaila field is classified as one of the largest fields in the world, as it is the fourth in the world, and the field's current production rate is one million and 450 thousand barrels per day," noting that "the field's production represents 39 percent of the world's production. The national production, therefore, the development of the field has economic returns. Hamza added that "Basra Energy Company will have a high flexibility to finance the development projects of the Rumaila field to reach peak production."
Since 2009, Iraq signed a series of contracts with international oil companies to develop its fields in the southern and central regions of the country, to focus on the governorates of Basra, Maysan, Wasit and Dhi Qar, and then expanded towards exploring for new oil reserves in the governorates of Muthanna, Najaf and Anbar.
Oil experts praised the establishment of the company, considering that it will develop the field and introduce modern technologies to it, and that the new company will make investments in all fields of energy in the future.
Modernization of the oil industry
The oil expert, Hamza Al-Jawaher, described the partnership carried out by the Iraqi national companies with international companies as "necessary" to modernize the local oil industry, expecting that the work of foreign companies will be "consultant." Al-Jawahiri added that "this partnership is very necessary because local companies need technology and sterile studies," noting that "the work of Iraqi oil companies is difficult without a partnership with international companies specialized in these matters."
Global companies are a necessity
Al-Jawahiri pointed to "Iraq's need for specialized international companies, as they have experience and their goal is to benefit. When we bring these companies, we will benefit from their experience in this field." He added, "The Rumaila oil field needs in-depth studies and a review of all development programs to come up with a result, to increase the extraction coefficients in the field from 15 to 20 percent," noting that "implementing this matter will mean that there are billions of dollars in profits."
Other companies in the south
For his part, a researcher in the field of energy, Kovind Shiraoni, said that "the new company will work on investing in the energy field," expecting "the establishment of similar companies in other southern governorates in cooperation with international companies." Sherwani added that "this matter will support the work of the National Oil Company, which will include within its structure all the national companies operating in Iraq, whether the South Oil Company or the North Oil Company and other companies whose law is still not in effect," noting that "the Basra oil fields are old and have huge reserves. And it needs a development process to increase its productivity.”
Sherauni indicated that "the new company will invest in free and associated gas," stressing that "the partnership with foreign companies will provide an opportunity to obtain modern technologies and develop productivity." He added, "The Iraqi side will benefit from the experience of these companies in managing these projects, and the foreign company will benefit to overcome several routine obstacles," noting that "the companies will get more tax exemptions than working independently."
He suggested that "new companies similar to the newly created company will be established in the oil provinces with the aim of benefiting from the revenues to develop the infrastructure of those provinces," pointing out that "the new energy name, which indicates that its work is not limited to the oil issue, but rather in the field of energy." Including investing in natural and associated gas.
And the former deputy head of the Oil and Energy Committee in the Iraqi parliament, Abdul Hadi Al-Hassani, said that "the work of the new company will take care of all energy fields," adding that "the partnership will benefit local and foreign companies." Al-Hassani, who belongs to Basra Governorate, added that "this partnership is necessary to train the Iraqi people so that they can keep pace with the scientific progress that is taking place in all fields, and it constitutes a boost to its financial, technical and integration dimension, and it is necessary in order to increase energy in all fields."
Al-Hassani considered that "the company's specialization in all fields of energy aims to prepare to invest in all these fields in the event of oil depletion, and to benefit from renewable energies," noting that "companies will benefit in obtaining priority in some new investment projects."
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