Iraq Business News (en)

Road Projects available for Investment

Iraq Business News (en) - Mon, 01/29/2018 - 6:24pm

By John Lee.

Iraq’s National Investment Commission (NIC) has included several road projects in its list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February:

Rehabilitation and development of the existing roads

Construction of highways next to the existing ones (on the sideways). Estimated cost for the new highways is $3m/km, while rehabilitation cost for the existing ones is $1m/km (one third of the new one cost). Estimated cost to add 2 pathways to each side of the road is $2m/km, including:

  • Rehabilitation and development of the 580km Baghdad–Basra highway
  • Rehabilitation and development of the 570km Baghdad-Mosul-Rabeea-Feshkhaboor highway
  • Rehabilitation and development of the 180km Baghdad-Baquba-Iranian border (Al Munthiriya) highway
  • Construction of the 250km Baghdad-Kirkuk highway

Sub roads (Secondary roads)

  • Rehabilitation of Bismaya-Baghdad-Muhamed Al Qasimhighway, 25km
  • Building the Dora-Yousfiya road and connecting the two –story bridge with Al Dora highway Baghdad-Basra 14km
  • Building Al Madaeen Bridge (connecting Baghdad -Kut-Bismaya road to Baghdad-Basra highway passing through Madaeen) 21 km

The full 46-page document can be downloaded here.

(Source: NIC)

US firm “Suspends” Tank Maintenance in Iraq

Iraq Business News (en) - Mon, 01/29/2018 - 6:23pm

By John Lee.

US-based General Dynamics, which produces Abrams tanks, has reportedly suspended its maintenance program in Iraq after one of its tanks was provided to the Iranian-backed Hashd al-Shaabi Popular Mobilization Force (PMF).

Iraq’s al-Ghad Press has reports that the company withdrew from its base at Baghdad’s al-Muthanna airport after finding out that Iraq violated the terms of the contract which only authorized the Iraqi army to use the US-provided tanks.

Iraq owns 140 M1 Abrams tanks, sixty of which are now out of service.

Read more here.

(Source: Kurdistan 24)

Iraq Stock Market Report

Iraq Business News (en) - Mon, 01/29/2018 - 6:23pm

Advertising Feature

Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 25th Jan 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD791 (+0.7%) / $822 (+1.5%) (weekly change) (-2.5% and -1.7% YTD change, respectively). The number of week traded shares was 7.6bn and the weekly trading volume was IQD10.9bn ($8.7mn).

ISX Company Announcements

  • In reference to ISX letter on Dec. 25, 2017 and the Iraqi Depository Center (IDC) letter on Jan. 18, 2018, no bonds were deposited from the first issue of national bonds in the IDC starting from the depositing date of Jan. 2, 2018 till Jan. 22, 2018. It was mentioned in the announcement that the discount price will be fixed based on the coupon rate every trading day according to the scheduled coupon dates provided by the CBI for each category that have different face values. The change in price limit will be +/- 5% for each session from 10:00 am to 12:00 pm.
  • The Governor of the Central Bank of Iraq (CBI), Mr. Ali Mohsen Ismail visited with a delegation of advanced leaders the branch of the CBI in Basra province. The delegation was keen to meet the staff of the branch and discuss the most important organizational matters in the work of the branch. (CBI)
  • International Development Bank for Investment (BIDB) will hold GA on Feb. 25, 2018 to elect a new BoD. ISX will suspend trading of BIDB starting Feb. 21, 2018. BIDB will resume trading on Feb. 26, 2018.
  • Iraqi Agricultural Products and Marketing Meat (AIPM) will hold a GA on Feb. 20, 2018 to elect a new BoD. ISX will suspend trading of AIPM starting Feb. 15, 2018. AIPM will resume trading on Feb. 21, 2018.
  • The ISC approved trading of Trans Iraq Bank for Investment (BTRI) in the regular market instead of the non-regular market starting Jan. 28, 2018.
  • According to the announcement made by the ISX on Jan. 23, 2018; the general commission for taxes issued an order on Oct. 15, 2017 to block all the current assets of Electronic Industries (IELI) because the company didn’t pay IQD1, 475,127K worth of taxes.

New Career Opportunities in Iraq

Iraq Business News (en) - Mon, 01/29/2018 - 6:23pm

By John Lee.

The United Nations has advertised new positions in Iraq:

(Source: UN)

New Career Opportunities in Iraqi Kurdistan

Iraq Business News (en) - Mon, 01/29/2018 - 6:23pm

By John Lee.

The United Nations has advertised new positions in Iraqi Kurdistan:

(Source: UN)

GardaWorld Weekly Security Report

Iraq Business News (en) - Sun, 01/28/2018 - 2:32pm

GardaWorld, a global leader in comprehensive security and risk management, has made its weekly security report available to Iraq Business News readers.

Prepared by GardaWorld’s Risk Analysis Team in Iraq, this essential report includes short- and medium-term outlooks on the security situation, reports and commentary on recent significant events, and a detailed overview of developments across the country.

Please click here to download the latest report free of charge.

For more information on how GardaWorld’s services can support your business in Iraq, please contact Daniel Matthews, Senior Director Iraq, at daniel.matthews@garda.com

Two Iraqi Airports to be Developed

Iraq Business News (en) - Sun, 01/28/2018 - 9:52am

By John Lee.

Iraq’s National Investment Commission (NIC) has included two airport projects in its list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February:

  • Rehabilitation and development of Mosul International Airport.
    • Estimated cost before 2014: 120 billion Iraqi Dinars.
    • Estimated percentage of Damage: over 40% (based on the estimation preformed by specialized committees carried out at the end of 2017).
  • Rehabilitation and development of Nasiriya International Airport, developing the Marshlands, and the Prophet Abraham Shrine.
    • Capacity: around 500 thousand passenger/y
    • Target capacity: 1 million passengers/y
    • Initial estimated cost: $74m
    • Buildings include: passengers terminal, runway, yard, taxi, tower, firefighting center, electricity, air conditioning systems with all devices.

The full 46-page document can be downloaded here.

(Source: NIC)

(Picture Credit: Tasnim, under Creative Commons licence)

Ministry drops Nassiriya Integrated Project

Iraq Business News (en) - Sun, 01/28/2018 - 9:51am

Iraq will rely on a newly formed state oil company to develop the Nassiriya oil field, leaving only the nearby refinery project for investors, ending more than six years of pitching the two as a combined mega-project, according to Iraq Oil Report.

Most recently, Iraq had been in direct negotiations with PetroChina and the China National Offshore Oil Corp. (CNOOC) to build a 150,000 barrel per day (bpd) refinery and develop the 4.4 billion barrel Nassiriya oil field – the two components of the Nassiriya Integrated Project.

The international engineering and construction firm Foster Wheeler completed a Front End Engineering and Design (FEED) study for the refinery.

Read the full report from Iraq Oil Report here (subscription required).

(Source: Iraq Oil Report)

NIDC Eyes Iraqi Drilling Market

Iraq Business News (en) - Sat, 01/27/2018 - 9:52am

The National Iranian Drilling Company (NIDC) is planning to participate in neighboring Iraq‘s drilling tenders.

Speaking to reported on the sidelines of an oil show in Kish Island, on Tuesday, Sepehr Sepehri, NIDC managing director, said the company’s approach is to secure itself a toehold in global markets, adding NIDC is planning to participate in international drilling tenders in Iraq.

“We have plans to join drilling projects in neighboring countries and we have started correspondences with Iraq in this regard,” the official said.

Sepehri said the two country’s access to Arvand Free Zone, favorable crude oil production capacity in Iraq’s Basra and the good terms the two neighbors are on are among the advantages of working in Iraq.

He further said that NIDC will take part in three drilling tenders that Italy’s ENI is planning to hold in Iraq.

The NIDC official added that Oman is another market the company is seeing to gain a foothold in.

“We have indicated readiness to offer services to Oman, too, and will consider the matter in more depth during a visit by an Omani delegation to Iran within the next few weeks.”

Besides drilling operations, NIDC enjoys massive potentialities in offering drilling services, the CEO added.

“After Iraq and Oman, we are targeting operations in Qatar,” Sepehri added.

(Source: Shana)

Security Forces hang on to Homes they Requisitioned

Iraq Business News (en) - Sat, 01/27/2018 - 9:51am

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

By Kamal al-Ayash.

In Anbar, Security Forces Hang Onto Private Homes They Requisitioned

During fighting against the Islamic State group, it was necessary for security forces to occupy private property in Anbar’s cities. But now the security forces appear reluctant to give back the homes they took over.

The argument went like this: Without establishing checkpoints and headquarters for security staff in residential areas, security cannot be guaranteed in the cities once controlled by the extremist group known as the Islamic State.

And so fortified houses and other suburban buildings became a common sight in cities of the Anbar province, a Sunni-Muslim-majority area where the extremists had controlled many of the major cities. The argument that these bases were necessary was also one advanced by less-official military groups, such as the formerly-volunteer Shiite Muslim militias and the anti-extremist forces set up by local often-Sunni Muslim tribes.

The homes and offices had security gates installed, were surrounded by barbed wire and roads leading toward them were blocked off. The security forces based in Anbar say converting the residences gives them an opportunity to protect the city without having to build whole new premises and it also means they can be in the best possible position in each city.

At first the bases in ordinary neighbourhoods were considered temporary. But now, even after the Islamic State, or IS, group, has been driven out of the province, the bases appear to have become more permanent. Even though Anbar’s local councils say that there’s an agreement with the various security forces that they will vacate the private property over the next few months, it doesn’t seem to be happening the way it is supposed to.

Senior security staff at Fallujah’s police department say that the houses security forces are still occupying now are those that were used by the IS group for their headquarters, or were also property belonging to the leaders of the IS group. Any other houses used by security forces were returned to the owners once the IS group was banished.

“When we get requests from citizens who want to return to their houses we vacate the property and that usually takes between one and two weeks,” says Jamal al-Jumaili, the chief of police in Fallujah. “But we do check whether the security records of the citizens are clean.”

And this is where problems arise. Proving a “clean” security record can be difficult. Some locals even suspect that local militia groups occupying their houses are promulgating suspicions against them, so they don’t have to give up the property.

Anbar local, Mathar al-Halbusi, says he has tried several times to return to his home in Fallujah. The last time the 65-year-old, who lives with his family in camp for displaced people south of the city, tried to return he was surprised to find that his house was guarded and encircled with barbed wire: It had become one of the new bases.

“I tried to go in, but I was not allowed to,” he told NIQASH. “Later I was told that the house was being used by tribal militias and they had taken it over because it belongs to a criminal family.”

Al-Halbusi told NIQASH that his son had disappeared several years ago and that gossip in the neighbourhood had it that the man had joined the extremists. Al-Halbusi said his son was dead although he had no idea where.

In Ramadi, it seems that some of the militias have taken over property even though the families to whom the buildings belonged had no blemish on their records.

Local man Firas al-Dulaimi says he has tried to return to his house in the Soufiyah neighbourhood in the suburbs of Ramadi but that the residence is occupied by security personnel. Al-Dulaimi says he’s tried and failed several times to get a security clearance, that would show that he has no connections with any extremist groups and would allow him to get his house back.

“I’ve tried so hard to prove my innocence but every time I do, I am newly accused of treachery,” he says. “My latest attempt to return home also failed and in fact I was threatened by members of the militias. Now I have to stay in a camp and wait for the government to do something, to help those of us who are oppressed and who are helpless.”

Iraq’s $100bn Reconstruction Drive

Iraq Business News (en) - Fri, 01/26/2018 - 9:26pm

By John Lee.

Prime Minister Haider al-Abadi has said Iraq needs up to $100 billion to fix crumbling infrastructure, according to a report from Reuters.

Calling on foreign investors to help it rebuild the country following the defeat of the Islamic State group (IS, ISIS, ISIL, Daesh, he told the World Economic Forum (WEF) in Davos, Switzerland:

“It’s a huge amount of money. We know we cannot provide it through our own budget.”

Iraq has just announced a list of 157 large- and medium-sized projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February.

(Source: Reuters)

MHPS to Upgrade Hartha Power Station

Iraq Business News (en) - Fri, 01/26/2018 - 9:26pm

By John Lee.

Iraq’s Ministry of Electricity has reportedly awarded a contract to Japan’s Mitsubishi Hitachi Power Systems (MHPS) to refurbish the Unit 1 of the Hartha thermal power station (pictured) in Basra province.

According to Energy Business Review, the power station is claimed to account for approximately 25 percent of Basra’s total power generation capacity.

It’s original equipment was developed by Mitsubishi Heavy Industries (MHI).

Funding will be provided by Japanese Official Development Assistance (ODA) through the Japan International Cooperation Agency (JICA).

Mitsubishi Electric will be responsible for the generator-related work, while the Turkey’s Gama Power System will be responsible for installation and other work.

The work is scheduled to be completed in 2020.

(Source: Energy Business Review)

Latest Strikes Against ISIS in Syria, Iraq

Iraq Business News (en) - Fri, 01/26/2018 - 9:26pm

U.S. and coalition military forces continued to attack the Islamic State of Iraq and Syria between Jan. 19-25, conducting 60 strikes consisting of 93 engagements, Combined Joint Task Force Operation Inherent Resolve officials reported today.

CJTF-OIR officials reported that a significant precision strike involving exhaustive intelligence and observation to confirm ISIS concentrations and ensure no civilian casualties killed 145-150 ISIS terrorists in Iraq’s Middle Euphrates Valley Jan. 20.

In addition, officials reported details of the most recent strikes, noting that assessments of results are based on initial reports.

Strikes in Syria

Yesterday in Syria, coalition military forces conducted six strikes consisting of 12 engagements against ISIS targets near Abu Kamal. The strikes engaged three ISIS tactical units and destroyed two ISIS supply routes, four fighting positions, a front-end loader, a road grader and an ISIS line of communication.

On Jan. 24, coalition military forces conducted 11 strikes consisting of 15 engagements against ISIS targets near Abu Kamal. The strikes engaged six ISIS tactical units and destroyed a front-end loader, two ISIS supply routes, four fighting positions and an ISIS line of communication.

On Jan. 23, coalition military forces conducted six strikes consisting of 10 engagements against ISIS targets near Abu Kamal. The strikes engaged an ISIS tactical unit and destroyed three pieces of ISIS construction equipment, three fighting positions and two ISIS supply routes.

On Jan. 22, coalition military forces conducted four strikes consisting of seven engagements against ISIS targets near Abu Kamal. The strikes engaged four ISIS tactical units and destroyed two ISIS supply routes, a command-and-control center and an ISIS-held building.

On Jan. 21, coalition military forces conducted 10 strikes consisting of 13 engagements against ISIS targets near Abu Kamal. The strikes engaged eight ISIS tactical units and destroyed a staging facility, two ISIS supply routes, a munitions storage site, an ISIS-held building, an ammunition truck and a fighting position.

On Jan. 20, coalition military forces conducted 12 strikes consisting of 19 engagements against ISIS targets near Abu Kamal. The strikes engaged 12 ISIS tactical units and destroyed two fighting positions, a staging facility, a vehicle-borne bomb, three weapons caches, two ISIS headquarters, an ISIS motorcycle, an ISIS construction vehicle and an ISIS-held building.

On Jan. 19, coalition military forces conducted seven strikes consisting of 13 engagements against ISIS targets near Abu Kamal. The strikes destroyed two ISIS supply routes, three ISIS equipment vehicles, six fighting positions, two ISIS vehicles and a command-and-control center.

Strikes in Iraq

There were no reported strikes in Iraq Jan. 23-25.

On Jan. 22, coalition military forces conducted a strike consisting of one engagement against ISIS targets near Qara Tapa. The strike destroyed an ISIS weapons cache.

On Jan. 21, coalition military forces conducted two strikes consisting of three engagements against ISIS targets:

— Near Hawija, a strike engaged an ISIS tactical unit and destroyed a fighting position and an ISIS command-and-control center.

— Near Rutbah, a strike destroyed two ISIS tactical vehicles.

On Jan. 20, coalition military forces conducted a strike consisting of one engagement against ISIS targets near Qayyarah. The strike engaged an ISIS tactical unit.

There were no reported strikes in Iraq on Jan. 19.

Part of Operation Inherent Resolve

These strikes were conducted as part of Operation Inherent Resolve, the operation to destroy ISIS in Iraq and Syria. The destruction of ISIS targets in Iraq and Syria also further limits the group’s ability to project terror and conduct external operations throughout the region and the rest of the world, task force officials said.

The list above contains all strikes conducted by fighter, attack, bomber, rotary-wing or remotely piloted aircraft; rocket-propelled artillery; and some ground-based tactical artillery when fired on planned targets, officials noted.

Ground-based artillery fired in counterfire or in fire support to maneuver roles is not classified as a strike, they added. A strike, as defined by the coalition, refers to one or more kinetic engagements that occur in roughly the same geographic location to produce a single or cumulative effect.

For example, task force officials explained, a single aircraft delivering a single weapon against a lone ISIS vehicle is one strike, but so is multiple aircraft delivering dozens of weapons against a group of ISIS-held buildings and weapon systems in a compound, having the cumulative effect of making that facility harder or impossible to use. Strike assessments are based on initial reports and may be refined, officials said.

The task force does not report the number or type of aircraft employed in a strike, the number of munitions dropped in each strike, or the number of individual munition impact points against a target.

(Source: US Dept of Defense)

Six Rail Projects offered for Investment

Iraq Business News (en) - Thu, 01/25/2018 - 5:58pm

By John Lee.

Iraq’s National Investment Commission (NIC) has included six rail projects in its list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February:

  1. New railway line (Baghdad-Kut-Umara-Basra) and branch line (Kut-Nasriya-Shuaiba-UmQasr)
    Length: 910km
    Number of lines: dual
    Axial load: 25 ton
    Passengers: 14 (million/year), Cargo : 35 (million/ton).
    Estimated cost (USD): Land Acquisition/2.73 billion, execution /11.0 billion, total/ 13.73 billion.
  2. Rehabilitation and development of the existing line (Baghdad –Diwaniya-Samawa-Basra)
    Length: 610km
    Number of lines: dual
    Axial load: 25 ton
    Passengers : 100 (million/year), Cargo: 70 (million/ton).
    Estimated cost (million USD): 793.
  3. Construction of Musaib-Karbala-Najaf –Semawa
    Length: 228km
    Number of lines: dual
    Axial load: 25 ton
    Passengers: 6 (million/year), Cargo : 2 (million/ton).
    Estimated cost (USD): Land Acquisition/750 million, execution /2.4 billion,
    total/ 3.150 billion.
  4. Construction of (Basra-Shalamcha–Iran line)
    Length: 35km
    Number of lines: single can be dual
    Axial load: 25ton
    Passengers: 2 million/year, Cargo: 10 million ton
    Estimated cost (USD): Land Acquisition 135 million; Execution, 500 million; Total 635million.
  5. Railway line (Mosul-Duhuk-Zakho-Turkey)
    Length: 160km
    Number of lines: dual
    Axial.load: 25ton
    Passengers: 1 million/year; Cargo: 55 million ton
    Estimated cost (USD): Land Acquisition, 450 million; Execution, 2.157 billion; Total, 2.607 billion.
  6. The railway line (Baghdad-Baquba-Kirkuk-Erbil-Mosul) and branch line (Baquba-Khanaqeen-Munthiriya-Iran)
    Length: 700 km
    Number of lines: multiple
    Axial load: 25 ton
    Passengers: 6 (million/year), Cargo : 20 (million/ton)
    Estimated cost (USD): Land Acquisition/1.650 billion, execution /7.0 billion, total/ 8.65 billion.

The full 46-page document can be downloaded here.

(Source: NIC)

(Picture Credit: Tasnim, under Creative Commons licence)

Dyncorp Wins Contract for Aviation Maintenance

Iraq Business News (en) - Thu, 01/25/2018 - 5:58pm

By John Lee.

Dyncorp International has been awarded a $13,253,810 contract for aviation field maintenance services in support of the U.S. Army Aviation and Missile Command.

Work will be performed in Germany, Iraq and Afghanistan, with an estimated completion date of Dec. 31, 2018.

(Source: US Dept of Defense)

Genel Energy Updates on Operations in Kurdistan

Iraq Business News (en) - Thu, 01/25/2018 - 5:58pm

Genel Energy has issued a trading and operations update in advance of the Company’s full-year 2017 results, which are scheduled for release on 22 March 2018. The information contained herein has not been audited and may be subject to further review.

Murat Özgül, Chief Executive of Genel, said:

A strong final quarter of 2017 completed a very positive year for Genel. During the quarter, the successful Peshkabir-3 well result tripled production at the field to c.15,000 bopd, a figure that is expected to grow in 2018, while at Taq Taq the TT-29w well was brought on production.

“Payments for oil sales were received from the Kurdistan Regional Government (‘KRG’) in every month of 2017, totalling over $260 million net to Genel and leading to $140 million of free cash flow in the year. The 2017 payments were bolstered by the receipt of override payments in the fourth quarter under the Receivable Settlement Agreement (‘RSA’), and payments have continued in early 2018.

“The recently announced CPRs reaffirmed the potential of the Bina Bawi and Miran fields, with combined 1C gross raw gas resource estimates higher than the gas volumes agreed under the Gas Lifting Agreements. The upstream field development plans are expected to complete shortly, and will help define the roadmap to unlocking the value in these major resources.

“The successful debt refinancing in late 2017, and the expectation of ongoing material free cash flow, provides us with a solid platform and financial flexibility to execute our growth plans during 2018 and beyond.

2017 OPERATING PERFORMANCE AND 2018 ACTIVITY OUTLOOK

  • 2017 net production averaged 35,200 bopd, with Q4 averaging 32,760 bopd. Production and sales by asset during 2017 was as follows:

(bopd)

Export via pipeline

Refinery sales

Total      sales

Total production

Genel net production

Taq Taq

11,700

6,350

18,050

18,050

7,940

Tawke PSC

108,250

10

108,260

109,050

27,260

Total

119,950

6,360

126,310

127,100

35,200

Note: Difference between production and sales relates to inventory movements

  • Tawke PSC (Genel 25% working interest)
    • Tawke PSC production averaged 109,050 bopd in 2017, with aggregate production from the Peshkabir-2 and Peshkabir-3 wells contributing 3,590 bopd to this figure. Combined production from the two fields currently averages c.110,000 barrels of oil per day
    • Preparations are underway to drill the Peshkabir-4 well. Additional drilling activity is planned on both the Tawke and Peshkabir fields during 2018, with overall activity levels dependent on production performance, drilling results, field studies, and ongoing payments from the KRG
  • Taq Taq PSC (Genel 44% working interest and joint operator)
    • Taq Taq field production averaged 18,050 bopd in 2017
    • Production in Q4 2017 averaged 14,035 bopd (Q3 2017 14,080 bopd). Ahead of the completion of a number of wells in Q4 2017, the overall rate of production decline slowed during the year due to the implementation of a proactive well intervention and production optimisation programme
    • In 2018 to date, production from Taq Taq has averaged 14,540 bopd, with the TT-29w, TT-30, and TT-31 wells contributing to the stabilisation in production from the beginning of Q4
    • As previously announced in late 2017, the TT-29w well was brought onto production after encountering a deeper free water level and more extensive oil bearing cretaceous reservoirs on the northern flank of the field than previously forecast. The results of the well will be analysed ahead of finalising the 2018 drilling programme, with field activity likely to be weighted towards the second half of the year. The ongoing Taq Taq well intervention programme, focused on the provision of artificial lift and water shut off in existing wells, will continue throughout 2018
    • Going forward, the Company will revert to reporting Taq Taq field production on a quarterly basis, as part of its corporate level disclosures
  • Bina Bawi and Miran (Genel 100% and operator)
    • As announced on 23 January 2018, Genel has agreed a 12 month extension to the conditions precedent schedule contained within the Gas Lifting Agreements for the Bina Bawi and Miran PSCs
    • CPRs for the Bina Bawi and Miran West gas fields concluded a c.40% increase in the combined 2C gas resources compared to the pro-forma end-2016 2C resource
    • The field development plans, being carried out by Baker Hughes, are on schedule to be completed shortly, and will help define the roadmap to unlocking the value of the assets
    • Genel will continue its systematic efforts to maximise the value of Bina Bawi and Miran, which includes optimising the cost and schedule of the proposed upstream developments
      • § In 2018 Genel expects to undertake an extended well test of Bina Bawi-4, which will provide valuable data on well deliverability and gas composition
    • The Company will continue to build momentum behind the development of Bina Bawi and Miran, and will continue engagement with potential farm-in partners for upstream participation at an optimal time to secure maximum value for Genel shareholders
  • African exploration update
    • Onshore Somaliland, the acquisition of 2D seismic data on the SL-10B/13 (Genel 75%, operator) and Odewayne (Genel 50%, operator) blocks has now completed – the first time that seismic has been obtained in this highly prospective area for over 25 years. The project acquired c.3,150 km in total, including infill 2D seismic acquisition of targeted high-graded areas. Processing of the data has commenced, and will facilitate seismic interpretation and the associated development of a prospect inventory, in turn guiding the optimal strategy to maximise future value
    • As announced in November 2017, Genel’s prior commitment to drill one well on the Sidi Moussa licence, offshore Morocco (Genel 60% working interest), has been replaced by an obligation to carry out a 3D seismic campaign across the Sidi Moussa acreage, significantly reducing anticipated expenditure. Planning is ongoing, with seismic acquisition set to begin in 2018, which is expected to materially de-risk the prospectivity of the Sidi Moussa licence

FINANCIAL PERFORMANCE

  • $263 million of cash proceeds were received in 2017 ($207 million in 2016), of which $72 million was received in Q4
  • Following the signing of the Receivable Settlement Agreement, effective 1 August 2017:
    • $19 million in override payments for the Tawke field were received in Q4
    • An additional $7 million of cash flow was generated from the elimination of the capacity building payment on Genel’s profit oil from the Tawke PSC
  • $19 million in payments for oil sales during October 2017 received post-period in January 2018
  • Free cash flow (pre interest payments) totalled $140 million in 2017 
  • In December 2017, the Company successfully completed the refinancing of its existing bonds, reducing the outstanding bond debt from $421.8 million to $300 million by way of an early redemption of a notional amount of $121.8 million. The new 5 year bond has a coupon of 10% per annum
  • Following the successful refinancing, unrestricted cash balances at 31 December 2017 stood at $162 million ($268 million at 30 September 2017). IFRS net debt at 31 December 2017 stood at $135 million ($138 million at 30 September 2017)
  • Capital expenditure for 2017 totalled $95 million (in line with guidance), with the majority of spend on the Taq Taq and Tawke PSCs ($64 million)

2018 GUIDANCE

  • Combined net production from the Tawke and Taq Taq PSCs during 2018 is expected to be close to Q4 2017 levels (as disclosed above)
  • Capital expenditure net to Genel is forecast to be c.$95-140 million, spanning a range of firm and contingent spend, with activity levels dependent on ongoing drilling results and progress on Miran and Bina Bawi. It is expected that capex  will be funded entirely from operational cash flow, and includes:
    • Tawke and Taq Taq net to Genel of $60-85 million
    • Miran and Bina Bawi capex of $25-40 million
    • African exploration cost of $10-15 million
  • Opex: c.$30 million
  • G&A: c.$15 million cash cost
  • Based on a continuation of payments throughout 2018, Genel expects to generate material free cash flow in 2018

(Source: Genel Energy)

Iraq-Saudi Links Enhanced

Iraq Business News (en) - Thu, 01/25/2018 - 5:57pm

By John Lee.

Saudi Arabia’s King Salman Bin Abdul Aziz received in Al Yamama Palace in Al Riyadh the Iraqi Planning/Trade Minister (acting) Dr. Salman Al Jumaily, Head of the Iraqi side in the Iraqi-Saudi Coordination Council, Dr. Sami R. Al Araji, Chairman of the National Investment Commission (NIC), Mr. Kadhim Mohamed Al Iqabi, Chairman of the Borders Crossings Commission, Engineer Adil Kereem, Vice Minister of Industry and Minerals and the Chargé d’affaires of the Iraqi Embassy to the Kingdom.

During the meeting, the importance of the council was emphasized in developing and enhancing the mutual cooperation between the two countries in various fields.

Prince Abdul Aziz Bin Saood Bin Naif Bin Abdul Aziz, Minister of Interior Affaires and Minister of Trade and Investment the head of the Saudi side in the Coordination Council both attended the reception.

(Source: NIC)

Iraq Britain Business Council (IBBC) visits Baghdad

Iraq Business News (en) - Thu, 01/25/2018 - 5:57pm

On 21st and 22nd January the Iraq Britain Business Council (IBBC) Deputy Chairman Mr Rasmi Al Jabri and Managing Director Mr Christophe Michels visited Baghdad.

They met with Dr Abdulkariem Faisal, Chairman of the Prime Minister’s Advisory Commission to discuss the upcoming Spring Conference in London on 24 April and plans for a conference in Baghdad. Outstanding issues on behalf of IBBC members were also raised.

A similar meeting was held with Dr Sami Al Araji, Chairman of the National Investment Commission, which is playing the leading role at the ‘Supporting Private Sector’ day of the Kuwait International Conference for Reconstruction of Iraq, to be held in Kuwait on 13 February.

Additional meetings were held with IBBC members BP, Najaf Chamber of Commerce, Baghdad Chamber of Commerce and the International Islamic Bank, which hosted the IBBC visitors for Lunch at the famous Alwiyah Club.

IBBC also met with Jaafar Al Hamdani, Chairman of the Iraqi Federation of Chambers of Commerce to discuss the ongoing relationship with the federation and to make plans for a conference in Baghdad.

‎IBBC is greatful to Al Burhan Group for generously hosting it’s delegates at the Al Burhan Centre close to Baghdad Airport during their stay.

(Source: IBBC)

Five Oil Storage Facilities available for Investment

Iraq Business News (en) - Wed, 01/24/2018 - 3:03am

By John Lee.

Iraq’s National Investment Commission (NIC) has included five oil storage facilities in its list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February:

  • Bin Omar field for crude oil in Basra Province, with a design capacity of 22x 66000 m3 (first phase) and 9x 66000 m3 (second phase).
  • Mosul field for Petroleum Products/ Gasoline 4x 10000 m3, Diesel Fuel 3x 10000 m3 and Kerosene 3x 10000 m3 in Mosul Province.
  • Tuba field for Petroleum Products/ Gasoline 4x 20000 m3, Diesel Fuel 2x 20000 m3, Kerosene 3x 10000 m3 and Jet fuel 2x 50000 m3 in Basra Province.
  • Aziziya field for Petroleum Products/ Gasoline 2x 10000 m3, Diesel Fuel 1x 10000 m3 and Kerosene 1x 10000 m3 in Kut.
  • Samara’a field for Petroleum Products/ Gasoline 4×2500 m3, Diesel Fuel 2×5000 m3 and Kerosene 2×5000 m3 in Saladin Province.

The full 46-page document can be downloaded here.

(Source: NIC)

Genel Energy gets more time for Gas Project

Iraq Business News (en) - Wed, 01/24/2018 - 3:02am

Genel Energy has announce that it has agreed with the Kurdistan Regional Government (KRG) a 12 month extension to the schedule for satisfying the conditions precedent (‘CPs’) contained within the Gas Lifting Agreements (‘GLA’s) for the Bina Bawi and Miran fields signed in February 2017.

The revised date by which the CPs are to be satisfied or waived is 9 February 2019.

The CPs contained within the February 2017 GLAs included, inter alia, the execution of final agreements on the midstream gas processing facilities and pipeline transportation, and the completion of updated competent person’s reports (‘CPRs’) for Bina Bawi and Miran.

The CPRs relating to the contingent gas resources at the Bina Bawi and Miran West fields have recently been completed, details of which were announced on 19 January 2018.

(Source: Genel Energy)

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