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Basra International Fair Ground
25 - 28 November 2010
INTRODUCTION
Iraq is opening its doors. International Basra Oil and Gas Conference & Exhibition will take its place as the first and foremost gas and oil exhibition of the region. Events will have support from Iraq Government.
Exploring Iraq's true natural resources, modernizing its oil and gas industry is the single and most expensive project of the world at least for the next decade. Basra Oil & Gas as the first will be a unique meeting point for interested parties to achieve the results of this project.
Given these advantages, Iraq can expand its oil production rapidly and supply the international oil market with substantial amounts of oil exports. Considering the above possibilities of Iraq can make use and benefit from the future development of the international oil market and especially the future rapid increase in the global demand for oil. The International Energy Agency estimates that world demand will increase from the present level of 85mn b/d to 116mn b/d in 2030. In other words, in the next 23 years the global demand for oil will increase by about 30mn b/d. How will this increase be met and by whom?
Most of the world oil reserves (1,200bn barrels) are located in OPEC countries with its share reaching 76%. The Gulf countries’ share (Iraq, Iran and GCC states) is 62%.Therefore, there is a concentration of global oil reserves in a few countries, namely in the Gulf region including Iraq.
PR campaign has already started with ministries. Conference aims to cover macro dynamics of oil and gas industry in Iraq; emphasizing opportunities, challenges, and affects of projects. The governmental authorities, national oil and gas companies, recognized names of the industry will be involved with their speeches. Lunch, dinner and cocktail programs, along with other sponsorship opportunities are available.
Basra is ready and wants your business. There is no alternative for these events in the region. Participants of the first year will have a priority for the next years. Space is limited and interested companies are urged to register early.
Iraq to rebuild refining capacity
HUSSEIN AL-SHAHRISTANI, IRAQ’S oil minister, has further firmed up plans to radically rebuild and expand his country’s refining capacity in order to make Iraq self-sufficient in refined products and even turn it into a refined products exporter. Iraq will aim to build four refineries under a US$20-23 billion greenfield capacity construction programme, adding 750,000 bpd of capacity to its existing 550,000 bpd of effective refining capacity. The four planned refineries will - as previously announced - be located in the central Karbala area, in the northern oil hub of Kirkuk in Nassiriyah and in south eastern Maysan, with the Karbala plant being planned to have a 140,000-bpd capacity, the Nassiriyah plant a 300,000-bpd capacity, and the Kirkuk and Maysan facilities a 150,000-bpd processing capacity. Al-Shahristani told the Associated Press (AP) that companies partnering the Iraqi state companies in the construction and operations of the plants would receive a five per cent price discount on the purchased feedstock crude, as an incentive to take the risk and enter the Iraqi downstream market. |
The oil minister also promised a state tax exemption and no interference in the pricing of the oil products, with al-Shahristani telling a conference of oil executives meeting in Iraq recently that; "[I] encourage all investors to seriously think about investing in this promising sector as I do believe that it guarantees profits better than other places". Engineering giant FosterWheeler is already conducting the US$8-billion Nassiriyah feasibility study, expecting completion in the first quarter of 2012, while Shaw group is conducting the Kirkuk and Maysan refinery studies to a end-2011 deadline. Technip is hoping to complete the Karbala feasibility study before the end of this year.
Investment in the Iraqi downstream sector still remains a very risky undertaking, given the project’s exposed nature and long-term investment horizons, while Iraq’s political stability still remains quite precarious. A downstream investment law was actually passed in 2007 - one of the few oil-related laws not caught up in Iraq’s political deadlock - but it only stipulated a one per cent feedstock price discount, which the cabinet has now increased. That is likely a wise move to potentially get some investment underway, although to really mitigate the political risk on this issue that particular incentive needs to be ratified by parliament.
The feasibility study timeframes give these deals some time before investors need to move ahead, apart from in the case of Karbala, where the situation has been very stable for some time. The deregulation of Iraq’s refined products sales could over the long term really set the country apart in a region where large subsidies remain the norm, at great cost to government budgets.
Source : Oil Review Middle East, Issue 5, Page 48
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