Al Majal Updates

As the leading life support services provider in Basra-Iraq, AMBP hosted a lunch for the IBBC members at our Burjessia business park. The event was successfully held on Monday, August 16th, and was hosted by the management of AMBP and the IBBC delegation in Iraq represented by Mr. Richard Cotton and Mr. Mohanad Al Khattab.

As one of Al Majal’s subsidiaries specialized in offering a wide-range of HR solutions for entities operating in Iraq, AMHR is one of the few companies in Iraq officially licensed to carry out recruitment of foreign workers.

The AMBP management team has revealed the completion of the football pitch renovation at our North Rumaila property, with a new, upgraded cushioned turf for the 450 sqm grass field as well as new kicking cages. The result looks stunning!


Al Majal’s Oil & Gas Market Roundup in Collaboration with Qamar Energy

Economic revival hinges on the country’s energy sector, where several high-profile developments have taken place in recent weeks. Oil exports in July increased slightly to 3.340 Mb/d, and revenues to US$ 6.514 B, up from US$ 6.163 B in June, with the average price of Iraqi crude rising to US$ 72.00/bbl. The 2021 Budget, first presented in December, was finally approved on March 31, preserving the country’s recent currency devaluation (~23% to the US dollar), and projecting a spending budget of US$ 89.7 B and a dinar-denominated deficit equivalent to US$ 19.5 B. Iraq expects to earn oil revenues of US$ 47.5 B[1] based on an oil price of US$ 45/b and ~3.5 Mb/d of exports, which in dinars should significantly improve state earnings.

 

Key Iraq Events – Politics

Iraq’s Parliament passed the country’s 2021 budget on March 31, after months of political wrangling, while preserving the country’s recent currency devaluation and projecting a new, dinar-denominated record-setting deficit of US$ 19.5 B. It features a new, but unclearly defined framework for Baghdad-Erbil oil and revenue cooperation, based on 250 kb/d of Kurdish oil transferred to the State Oil and Marketing Organisation (SOMO).

 

On August 8, Ali Allawi, Iraqi Finance Minister, mentioned that despite a relative improvement in Iraq’s finances, the country is seeking a US$ 3-4 B loan from the IMF. Allawi anticipates an agreement with the IMF by end-2021, although October parliamentary elections loom. The latest IMF data shows that the country’s total sovereign debt rose from US$ 108 B in 2019 to US$ 117 B in 2020.

 

Key Iraq Events – Oil

Meanwhile, Lukoil is planning to sell its stake in the 13 billion-barrel West Qurna-2 field, which was confirmed by the Oil Ministry.
In August 24, the Council of Ministers approved BP’s plan to spin off its operations in the country.

Norway’s DNO announced that the Kurdistan Regional Government approved the company’s acquisition of ExxonMobil’s remaining 32% interest in the Baeshiqa license, doubling the Norwegian company’s stake.
Iraq is planning to boost the production capacity of West Qurna-1 by 40% to more than 700 kb/d over the next 5 years at a time when operator ExxonMobil is seeking to exit the field.

Iraq’s July oil production rose to 3.886 Mb/d, up from June’s 3.862 Mb/d according to S&P Global Platts, 130 kb/d below its quota for the month (4.016 Mb/d), with compliance increasing significantly to 104% in July.

 

Iraq’s Oil Ministry has reviewed a version of a law governing the oil and gas industry and seeks to forward it to the Cabinet for approval.

 

As Iraq plans to re-establish INOC, the cabinet appointed Thamir Ghadhban, former Oil Minister, as expert advisor to the board of directors, along with three other members.

 

Federal Iraq and the semi-autonomous KRG have reached a notional agreement to implement a revenue-sharing deal that stalled since the ratification of the 2021 budget on March 31.
Explosives were detonated at the North Oil Company (NOC)-operated Bai Hassan oilfield and on an Erbil-Kirkuk electricity transmission line, in a series of intensifying acts of violence across northern Iraq.

 

Iraq’s tax authority to halt visas and imports for nearly two dozen international energy companies accused of late tax payments.

 

Scottish-based Wood announced that it has been awarded a 5-year contract to deliver specialist engineering solutions

 

 

Iraq’s Oil Ministry is in discussion with unnamed US companies to take over ExxonMobil’s 31.7% stake in the 490 kb/d West Qurna-1

 

Key Iraq Events – Gas

Iraq is seeking to spend US$ 15 B to boost its gas production as it works on reducing reliance on Iranian energy imports. Along with other partners,