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This milestone illustrates the commitment of AMTS, its team and management to consistently conducting business with respect and care for people and the environment.
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On June 6th 2021, our facility management partners, Prime Support for General Services (PSGS), kicked off their first initiative in the Management Development Program (MDP) by establishing The Prime Academy at the Al Majal Business Park (AMBP).
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Qamar Energy’s Monthly Contribution
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Latest in the Iraqi & Regional Energy Markets
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Economic revival hinges on the country’s energy sector, where several high-profile developments have taken place in recent weeks. Oil exports in May decreased to 3.336 Mb/d, yet, revenues increased to US$ 5.88 B, up from US$ 5.55 B in April, with the average price of Iraqi crude standing at US$ 63.3/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 of 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. This has caused Fitch Ratings to revise the Outlook on Iraq’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at ‘B-‘. 3.5 Mb/d is a significant jump from Iraq’s current ~3 Mb/d exports, which it is hoping to realize from new production from state-run fields that have had to keep production shut-in due to OPEC+ constraints.
A roundup of the latest developments in the Iraqi energy markets is summarized in the table below.
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OPEC forecasts 2021 world oil demand to increase by 6 Mb/d, unchanged from last month’s assessment, reflecting the positive economic impact on oil demand during H2 2021, encouraged by accelerated vaccination campaigns boosting transportation fuels’ outlook, leading to stronger economic indicators. Non-OECD demand will continue improving due to positive momentum from Q4 2020 carrying forward in China with growth projected to continue increasing in H2 2021, due to a combination of factors, including successful containment measures, and the encouraging outcome of fiscal and monetary stimulus programmes. Oil demand might still be impacted by India’s recent surge in CoVid-19 through May and June, placing Q2 2021 oil demand performance in question. In addition, new lockdowns in Asia (such as in India and Singapore), a patchy vaccination rollout in countries outside the GCC, and weaker economic momentum in Iran, Iraq, and Oman could drag demand in Asia and the Middle East down. While a sanctions-relief deal appears on the cards for Iran, it would be unlikely that substantial production and export levels would be realized before Q4 this year. It also remains unclear whether the US is willing to strike a deal with the outgoing Iranian administration before the inauguration of the newly elected President Ebrahim Raisi.
Overall Middle East demand increased by 311 kb/d in May over April levels, as lifted restrictions along with improvements in mobility added to a robust recovery that could pick up pace further in H2 2021. Demand for oil products in Saudi Arabia has posted healthy gains in recent months, averaging just over 2.3 Mb/d in May, mainly due to growing mobility as the country charges ahead with its vaccination campaign. PMIs have stabilized, even though economic activity has not yet reached pre-CoVid-19 levels. This has informed some noteworthy deals in the energy sector in recent weeks, summarized in the following table.
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Top Energy Deals in the Region
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Regional Rig Count (1): OPEC+ Pressure to Keep Iraq Rig Count Low
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Source: Baker Hughes International Rig Count
[1] While not yet disclosed by the Iraqi Parliament, the revenues earned seemed to be calculated by excluding the first two months of 2021, for the remainder of the year
Middle East oil drilling has still not recovered from the sharp drop induced by the pandemic and the related OPEC+ production cuts. However, it is likely to start expanding as quotas increase and production growth plans in the UAE and Iraq get underway.
Gas drilling is starting to show a moderate recovery, supported by the beginning of Qatar’s LNG expansion projects.
Note: Iraqi gas rigs are not reported by Baker Hughes, likely because Iraq reports gas rig figures clubbed with oil rigs and/or lack of response from contractors (drilling for non-associated gas is at minimal levels compared to oil).
* End of Qamar Energy’s contribution, for more information about Qamar Energy, please visit www.qamarenergy.com
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Iraq Oil Market Highlights
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Iraq Coronavirus Cases Overview
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Since the Beginning of the Outbreak
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While chairing a meeting to discuss the rehabilitation program for the North Refinery, with a capacity of 150,000 barrels per day.
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Drones Intercepted and Shot Down Over Iraqi Air Base
The Iraqi military said that air defenses at the Ain al-Asad air base, which hosts U.S. Forces, intercepted and shot down two drones. There was no immediate claim of responsibility for the attack. Prior to that, another separate rocket attack targeted the area of the Baghdad International Airport, two Iraqi security sources said. There were no reported damages or casualties.
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