The Future is Coming – Oil and Gas in Iraq
[You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.]April 21 2015[You must be registered and logged in to see this link.]by Samar Rassam
As always, when returning to my column in Nina Magazine, I reflect on the past few months. It has been a very busy time. I am excited to see developments and opportunities arising which would not have been possible this time last year.
In March 2015, I attended an event in Erbil organised by the Iraqi British Business Council (IBBC) regarding business opportunities between UK, Iraq and Kurdistan. I met attendees from various Iraqi Chambers of Commerce covering all the country’s regions. Over the two day event much was discussed. The panels covered the Oil & Gas Sector and Higher Education. Training was discussed too, with talk of linking private sector capabilities to the energy sector. I was also pleased to hear that a united Iraq seemed to be at the top of the agenda for most delegates.
Although this united vision seems to be the common goal, it is also one of the main challenges and directly impacts the economic and social development of Iraq. My personal view is that, in order for Iraq to get to where Iraq wants to be, the need for an improved standard of education is still paramount.
In simple terms, the country holds almost nine per cent of global oil reserves and a vast wealth of natural resources. This means that Iraq will have a critical role supporting the future worldwide demands for oil. In order to meet these demands efficiently an ‘enabling commercial environment’ for international trade must be assured. The people of Iraq must embrace the role they have to play in facilitating this – building a united, peaceful and prosperous future for all.
That we are all united in this vision is the good news – the current backdrop however, is the flip side of the coin; with falling oil prices and security threats having a significant impact on the realisation of this vision. From this less than stable present, the energy sector must grow – harbouring Iraq’s broader development in the areas of infrastructure, education, healthcare and improved services for the population. We must ensure that this investment covers the whole of the country equally. It is only by ensuring equity of investment that we will create the right conditions for prosperity and a vibrant private sector.
Overcoming the challenges:
There are many challenges ahead; one of them is the relationship between the Central Government and the Kurdistan Regional Government (KRG). At the end of 2014 Iraqi Government and KRG leaders met in order to resolve issues regarding budget allocations and energy exports. Under the constitution, Baghdad requires the Kurdish Regional Government (KRG) to share its own oil production with the rest of Iraq. The Kurds should then be reimbursed with 17% of the total nationwide budget, which is currently set at $105bn (£71bn).
This deal not only paves the way for an increasingly conducive political environment, but will also bring enhanced economic benefits to all communities.
Continuing the drive for a more united Iraq, further meetings between Prime Minister Nechirvan Barzani and Iraq’s Prime Minister, Haider Al-Abadi and their respective Government officials occurred in Bagdad in February followed by a visit to Erbil in April.
This visit by Mr Al Abadi to Erbil was fruitful, particularly regarding the discussion around overall regional development and the strengthening of mutual ties. The agreement, as set out, will also of course have an impact on budget payments, refugee problems, oil exports and many other issues.
At the same time the liberation of Tikrit is a major strike at IS. The stability of Iraq has been balanced on the army’s ability to recapture Tikrit. This is a key stage prior to retaking Mosul. The aim is of course to drive IS out of the country altogether.
Since the appointment of the new Oil Minister eight months ago, there have been many positive changes. However, key problems remain. For example, Baiji, Iraq’s largest oil producing refinery has been out of service since June 2014. Prior to this, it had been producing a third of Iraq’s oil output. To get the refinery back online to previous outputs the Ministry will need to find solutions through support and partnerships.
The future:
The Iraqi Minister of Oil, Adil Abd-al Mahdi, visited Paris to meet with the French President, François Hollande to discuss a petrochemicals project in the South of Iraq. The Ministry of Oil will be working alongside France’s giant oil company, Total. During the visit a Memorandum of Understanding was signed by the Iraqi Ministries of Oil and Industry as well as Total.
This is in addition to an agreement signed at the beginning of the year by the Iraqi Ministry of Industry and Shell for a petrochemical plant in Basra. It is uncertain at this point in time whether these two agreements are interlinked or separate projects.
There are many challenges to come of course, such as the progress of the contract re-negotiations with International Oil Companies (IOCs) which is steady but slow. Steps are also being put into place to solve the obstacles that might prevent foreign companies from working in Iraq within the current licencing framework. Intentions are clear though, by solving existing problems methodically and without prejudice, bigger problems will be avoided in the future.
Training and capacity building:
As the government deals with short term threats, medium term economic growth and long term prosperity plans must be made to ensure in-country human resource is prepared for both public sector growth and private sector competition.
Iraq needs a world-class workforce and Iraqi ministries are budgeting accordingly, investing heavily in training strategies. However, it is imperative that the education and training provided meets rigorous international standards; the needs of multinational companies looking to build opportunity in Iraq must addressed. It is only in understanding and acting upon the fact that that Iraq contributes to the global economy as a whole, that the best economic outcome for Iraq will be assured.
Two key takeaways for me are:
So, look out world – Iraq is ready for the international community. The future is coming.
[You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.], [You must be registered and logged in to see this link.]April 21 2015[You must be registered and logged in to see this link.]by Samar Rassam
As always, when returning to my column in Nina Magazine, I reflect on the past few months. It has been a very busy time. I am excited to see developments and opportunities arising which would not have been possible this time last year.
In March 2015, I attended an event in Erbil organised by the Iraqi British Business Council (IBBC) regarding business opportunities between UK, Iraq and Kurdistan. I met attendees from various Iraqi Chambers of Commerce covering all the country’s regions. Over the two day event much was discussed. The panels covered the Oil & Gas Sector and Higher Education. Training was discussed too, with talk of linking private sector capabilities to the energy sector. I was also pleased to hear that a united Iraq seemed to be at the top of the agenda for most delegates.
Although this united vision seems to be the common goal, it is also one of the main challenges and directly impacts the economic and social development of Iraq. My personal view is that, in order for Iraq to get to where Iraq wants to be, the need for an improved standard of education is still paramount.
In simple terms, the country holds almost nine per cent of global oil reserves and a vast wealth of natural resources. This means that Iraq will have a critical role supporting the future worldwide demands for oil. In order to meet these demands efficiently an ‘enabling commercial environment’ for international trade must be assured. The people of Iraq must embrace the role they have to play in facilitating this – building a united, peaceful and prosperous future for all.
That we are all united in this vision is the good news – the current backdrop however, is the flip side of the coin; with falling oil prices and security threats having a significant impact on the realisation of this vision. From this less than stable present, the energy sector must grow – harbouring Iraq’s broader development in the areas of infrastructure, education, healthcare and improved services for the population. We must ensure that this investment covers the whole of the country equally. It is only by ensuring equity of investment that we will create the right conditions for prosperity and a vibrant private sector.
Overcoming the challenges:
There are many challenges ahead; one of them is the relationship between the Central Government and the Kurdistan Regional Government (KRG). At the end of 2014 Iraqi Government and KRG leaders met in order to resolve issues regarding budget allocations and energy exports. Under the constitution, Baghdad requires the Kurdish Regional Government (KRG) to share its own oil production with the rest of Iraq. The Kurds should then be reimbursed with 17% of the total nationwide budget, which is currently set at $105bn (£71bn).
This deal not only paves the way for an increasingly conducive political environment, but will also bring enhanced economic benefits to all communities.
Continuing the drive for a more united Iraq, further meetings between Prime Minister Nechirvan Barzani and Iraq’s Prime Minister, Haider Al-Abadi and their respective Government officials occurred in Bagdad in February followed by a visit to Erbil in April.
This visit by Mr Al Abadi to Erbil was fruitful, particularly regarding the discussion around overall regional development and the strengthening of mutual ties. The agreement, as set out, will also of course have an impact on budget payments, refugee problems, oil exports and many other issues.
At the same time the liberation of Tikrit is a major strike at IS. The stability of Iraq has been balanced on the army’s ability to recapture Tikrit. This is a key stage prior to retaking Mosul. The aim is of course to drive IS out of the country altogether.
Since the appointment of the new Oil Minister eight months ago, there have been many positive changes. However, key problems remain. For example, Baiji, Iraq’s largest oil producing refinery has been out of service since June 2014. Prior to this, it had been producing a third of Iraq’s oil output. To get the refinery back online to previous outputs the Ministry will need to find solutions through support and partnerships.
The future:
The Iraqi Minister of Oil, Adil Abd-al Mahdi, visited Paris to meet with the French President, François Hollande to discuss a petrochemicals project in the South of Iraq. The Ministry of Oil will be working alongside France’s giant oil company, Total. During the visit a Memorandum of Understanding was signed by the Iraqi Ministries of Oil and Industry as well as Total.
This is in addition to an agreement signed at the beginning of the year by the Iraqi Ministry of Industry and Shell for a petrochemical plant in Basra. It is uncertain at this point in time whether these two agreements are interlinked or separate projects.
There are many challenges to come of course, such as the progress of the contract re-negotiations with International Oil Companies (IOCs) which is steady but slow. Steps are also being put into place to solve the obstacles that might prevent foreign companies from working in Iraq within the current licencing framework. Intentions are clear though, by solving existing problems methodically and without prejudice, bigger problems will be avoided in the future.
Training and capacity building:
As the government deals with short term threats, medium term economic growth and long term prosperity plans must be made to ensure in-country human resource is prepared for both public sector growth and private sector competition.
Iraq needs a world-class workforce and Iraqi ministries are budgeting accordingly, investing heavily in training strategies. However, it is imperative that the education and training provided meets rigorous international standards; the needs of multinational companies looking to build opportunity in Iraq must addressed. It is only in understanding and acting upon the fact that that Iraq contributes to the global economy as a whole, that the best economic outcome for Iraq will be assured.
Two key takeaways for me are:
- Commercial expertise is crucial to success, and development plans have the potential to impact the whole workforce
- Having a skilled workforce is the key to develop Iraq as a nation.
So, look out world – Iraq is ready for the international community. The future is coming.
Today at 2:18 pm by Rocky
» utube MM&C 4/26/24 Iraqi Dinar - US Treasury Exchange Rates- Focus - Banking Partnerships - Rate C
Today at 2:17 pm by Rocky
» Parliamentary efforts to transform Iraq into a global market for transferring Internet capacities
Today at 2:07 pm by Rocky
» A parliamentary committee that enriches the political forces: Stop plundering Iraq’s wealth and work
Today at 1:56 pm by Rocky
» Politician: Salem Al-Issawi is the most likely to assume the presidency of Parliament
Today at 1:55 pm by Rocky
» The price of the dollar is close to 145 thousand dinars؛ how much is $100 worth of transactions؟
Today at 11:57 am by wciappetta
» Al-Sudani: The world today is witnessing crises whose impact has been reflected in the global econo
Today at 9:50 am by Rocky
» The Federal Court responds to an inquiry by Al-Sudani regarding the powers of the provincial council
Today at 9:40 am by Rocky
» Among them are the Iraqis... a list of the most sought-after immigrants to America
Today at 9:38 am by Rocky
» An expert talks about the "biggest barrier" and the positives of merging Iraqi and Arab banks
Today at 9:29 am by Rocky
» The House of Representatives adjourns its session
Today at 9:24 am by Rocky
» Parliamentary demands to expedite the legislation of the Eid al-Ghadir holiday law (documents)
Today at 9:23 am by Rocky
» Parliament adds the paragraph “Electing the Speaker of the House of Representatives” to its agenda
Today at 9:21 am by Rocky
» Alsumaria publishes the text of the law against prostitution and homosexuality
Today at 9:20 am by Rocky
» A parliamentarian reveals the reason for the failure of the Speaker of Parliament to pass during tod
Today at 9:19 am by Rocky
» Al-Sudani: The government has launched many strategies and initiatives that will improve the reality
Today at 8:42 am by Rocky
» International Business: Iraq has made progress in supporting businesses through investment and priva
Today at 8:33 am by Rocky
» Association of Banks: Iraq is witnessing great development in the transition to electronic governmen
Today at 8:25 am by Rocky
» The House of Representatives votes to add an item to its agenda (election of the Speaker of the Hous
Today at 8:22 am by Rocky
» Parliamentary integrity: Combating corruption requires parliamentary legislation
Today at 8:15 am by Rocky
» Al-Karaawi: America is trying to restrict Iraq
Today at 8:13 am by Rocky
» The State of Law coalition moves to form the local government in Diyala
Today at 8:12 am by Rocky
» The Sudanese and his battle against corruption.. Where is the fault with the government or with the
Today at 8:11 am by Rocky
» Prime Minister's Advisor: We will see the dollar fall on the black market soon
Today at 8:09 am by Rocky
» The Sunni blocs are resolute. The presidency of the Council is ours, away from Al-Halbousi
Today at 8:08 am by Rocky
» Al-Sudani discusses with a workers’ organization his government’s steps in this field
Today at 7:58 am by Rocky
» Parliament holds its session in the presence of 170 deputies
Today at 7:57 am by Rocky
» In the presence of Nechirvan Barzani and Al-Sudani... the State Administration Coalition holds an “i
Today at 7:55 am by Rocky
» The UAE company ADNOC resorts to Iraqi oil. Find out the reasons
Today at 7:53 am by Rocky
» The Iraqi Parliament votes to add an item to elect a president to its agenda
Today at 7:52 am by Rocky
» The Federal Court responds to an inquiry by Al-Sudani regarding the powers of the provincial council
Today at 7:51 am by Rocky
» Al-Sudani: It is necessary to attract women to work as a productive energy that cannot be disrupted
Today at 7:47 am by Rocky
» Zebari regarding targeting the Kormor field: a systematic attack on the economy of Kurdistan
Today at 7:46 am by Rocky
» Saudi Arabia tops, and this is Iraq's rank... a list of major suppliers of crude oil to South Korea
Today at 7:45 am by Rocky
» With a value of 125 million dollars.. Iraq is at the forefront of countries importing Iranian textil
Today at 7:44 am by Rocky
» More than a billion dollars in sales from the Iraqi Central Bank within a week
Today at 7:43 am by Rocky
» Al-Sudani stresses the need for the expertise of the International Labor Organization to legislate a
Today at 7:29 am by Rocky
» Including the return of 21 wanted persons.. The Iraq Money Recovery Fund counts its achievements in
Today at 7:27 am by Rocky
» The path to development is the criterion between true patriotism and political clowning.
Today at 7:25 am by Rocky
» The file of the Presidency of Parliament is on the state administration table... this evening
Today at 7:22 am by Rocky
» Director General of the International Labor Organization: Many challenges in the world of work and t
Today at 7:20 am by Rocky
» Al-Sudani: The world is witnessing crises that reflect negatively on the Arab and international peop
Today at 7:11 am by Rocky
» Prime Minister: Our government has provided great support for the success of the activities, program
Today at 7:08 am by Rocky
» Al-Asadi: Iraq places the social protection file among its priorities
Today at 7:07 am by Rocky
» Al-Sudani: Iraq is one of the first countries in the region to join the International Labor Organiza
Today at 7:05 am by Rocky
» In the presence of Al-Sudani and Barzani, the State Administration Coalition holds an “important” me
Today at 7:03 am by Rocky
» Appreciating the presence of Al-Sudani... Director General of the Arab Labor Organization: Here from
Today at 5:29 am by Rocky
» Prime Minister: Our government has provided great support for the success of the activities, program
Today at 5:28 am by Rocky
» Al-Sudani: The world is witnessing crises that reflect negatively on the Arab and international peop
Today at 5:24 am by Rocky
» The Parliamentary Development Institute organizes a workshop on the political role of the representa
Today at 5:22 am by Rocky
» With Arab and international participation. Tomorrow will be the start of the Fourth Baghdad Internat
Today at 5:21 am by Rocky
» OPEC Secretary General: The end of oil is not on the horizon
Today at 5:19 am by Rocky
» Closing a number of unlicensed offices and companies south of Baghdad
Today at 5:16 am by Rocky
» Repercussions of the bombing...intensive government movements to resume work in the “Kormor” field
Today at 5:15 am by Rocky
» In the presence of Al-Sudani...the opening of the Arab Labor Conference in its 50th session in Baghd
Today at 5:14 am by Rocky
» Al-Sudani: We are working on drawing future visions regarding the “green and digital” economic secto
Today at 5:13 am by Rocky
» Barzani after the Kormor attack: We are ready to coordinate with Baghdad to put an end to these atta
Today at 5:10 am by Rocky
» Al-Sudani directs the formation of an investigative committee into the circumstances of the Kormo fi
Today at 5:08 am by Rocky
» Bismayah is confused about the new electronic portal.. What about the landlord and the subcontracts?
Today at 5:07 am by Rocky
» Kurdistan Government: Loss of 2,500 megawatts of electricity due to targeting the Kormor field
Today at 5:06 am by Rocky
» Crisis in Kurdistan: 12-hour daily power outage and complaints of “confusion”
Today at 5:05 am by Rocky
» The Supreme Anti-Corruption Commission demands Nineveh for the contracts concluded by “Najm Al-Jubou
Today at 5:04 am by Rocky
» Al-Khanjar, Al-Samarrai, and Abu Mazen are hosted by Shaalan Al-Karim to discuss accelerating the se
Today at 5:03 am by Rocky
» Iraq asks the countries of the world to respond to its requests to extradite wanted persons: We have
Today at 5:02 am by Rocky
» “It is coming soon.” The Sudanese advisor sets the date for the referral of the Baghdad metro and th
Today at 5:01 am by Rocky
» Al-Mubarqa: Iraq reserves its full right to respond to the Australian behavior
Today at 5:00 am by Rocky
» Dollar exchange rates on Iraqi stock exchanges... recorded a decline, and this is the list
Today at 4:58 am by Rocky
» Mr. Al-Sadr supports the position of American university students
Today at 4:56 am by Rocky
» Iraqis are ranked 7th in the Arab world on the list of those most seeking immigration to America. He
Today at 4:55 am by Rocky
» Soon.. 3 new hospitals will open in Baghdad
Today at 4:52 am by Rocky
» Sponsored by Al-Sudani...the opening of the Arab Labor Conference in its fiftieth session in Baghdad
Today at 4:51 am by Rocky
» Al-Shammari chairs a meeting at the controlling headquarters to review the results of the security o
Today at 4:49 am by Rocky
» Arab Labor Organization: We commend Iraq's interest in the Arab Labor Conference
Today at 4:48 am by Rocky
» Al-Sudani: The development road project will provide many job opportunities
Today at 4:47 am by Rocky
» Sudanese advisor criticizes Kuwaiti analyzes regarding the development road project
Yesterday at 2:21 pm by Rocky
» Al-Mandalawi stresses the need to strengthen economic and trade cooperation between Iraq and Poland
Yesterday at 2:04 pm by Rocky
» Power maneuvers: America provides defensive weapons to Kurdistan in exchange for withholding from Ba
Yesterday at 10:26 am by Rocky
» Kuwait is drilling an oil well near Umm Qasr, towards Iraqi territory
Yesterday at 10:24 am by Rocky
» In the document... the first Iraqi ministry identifies the obstacles to changing the new official wo
Yesterday at 10:22 am by Rocky
» Italian Institute: Iraq is stuck in its own crises, including Baghdad’s efforts to undermine the “au
Yesterday at 10:21 am by Rocky
» The head of the Integrity Commission announces the holding of an international Interpol conference i
Yesterday at 10:18 am by Rocky
» Planning: Iraqi companies are not efficient in conducting the population census
Yesterday at 10:14 am by Rocky
» MM&C 4/25/24 National Bank of Iraq goes live with Temenos core banking and payments
Yesterday at 8:06 am by Rocky
» A banking official indicates a "danger" to Iraq by depriving more than half of its banks of dollars
Yesterday at 7:55 am by Rocky
» With the participation of the Association of Private Banks, investment opportunities are on the tabl
Yesterday at 7:45 am by Rocky
» Within a month... an Iranian border crossing recorded a noticeable increase in exports of goods to I
Yesterday at 7:44 am by Rocky
» The Association of Private Banks appreciates the efforts of the government and the Central Bank to c
Yesterday at 7:43 am by Rocky
» Al-Maliki's coalition presents a third candidate for the position of governor of Diyala
Yesterday at 6:57 am by Rocky
» Arab gathering: The Kirkuk problem is getting complicated and the Sudanese must intervene
Yesterday at 6:56 am by Rocky
» Next week.. a Kurdish delegation will visit Baghdad to meet with the Minister of Finance
Yesterday at 6:54 am by Rocky
» Under the pretext of salaries... Al-Party refrains from handing over port revenues to Baghdad
Yesterday at 6:53 am by Rocky
» Association of Banks: For the first time, we are witnessing a clear targeting of depriving half of t
Yesterday at 6:51 am by Rocky
» Parliament does not know the reason for the delay in sending the 2024 budget schedules: Voting takes
Yesterday at 6:49 am by Rocky
» Applicants for the 2024 Hajj are demanding that the Central Bank secure the dollar for them through
Yesterday at 5:09 am by Rocky
» Governmental and private banks will showcase their services tomorrow during Financial Inclusion Week
Yesterday at 5:08 am by Rocky
» Iraq's oil exports rise despite OPEC+ cuts
Yesterday at 5:06 am by Rocky
» A study explodes a "surprise"... Iraq is among the countries that export oil to "Israel": How is the
Yesterday at 5:04 am by Rocky
» Al-Araji emphasizes working to strengthen national identity
Yesterday at 5:02 am by Rocky
» Al-Sudani visits Saudi Arabia to participate in the World Economic Forum in Riyadh
Yesterday at 5:01 am by Rocky