Iraq bets on a new law for developing its enormous oil wealth

Iraq is one of the main oil states in the region and the world as well as being one of the founders of OPEC; the first oil activity started in it early last century, and began the first commercial production in 1929 from Kirkuk field and then other fields followed until oil was nationalized oil in Iraq on the first of June / 1972. Then a series of tensions and wars rolled and surrounded the Iraqi policy, especially the economic embargo in 1990, in addition to three devastating wars which led to an unprecedented destruction of the oil and gas industry in Iraq. Iraqi fixed oil reserve is estimated at about 115 billion barrels, making it the second largest oil reservoir known in the world, and there are almost certain other estimates indicate that Iraq reserves are much more than that. Iraq today may need at least three years to return to the previous level of production in 1980 of about $ 5 .3 million barrels a day and investments estimated at tens of billions of dollars for the rehabilitating the infrastructure of the old installations. For these reasons, Iraqi oil exports now do not exceed two million barrels per day at best, at a time when it should be producing no less than ten million barrels daily. Therefore, the only hope for Iraq now is to issue a new oil and gas law to develop this enormous hydrocarbon wealth as soon as possible to alleviate the burden of the Iraqi people who continue suffering for more than 35 years.

The following are the most important events in the oil and gas sector during the week in the Gulf region:

Emirates

Al-Hilal Oil Company has sponsored the participation of three major Iraqi universities in the "Jet Energy 2008" conference which was held in London on 26 - 28 last March; the company ensured the attendance of representatives of: Baghdad University, the University of Basrah and the American University in Iraq at Sulaymaniya. The annual exhibition and conference of "Jet Energy" attracts more than 400 participants from 35 countries representing national and international major oil and gas companies, governments, training and rehabilitation institutions and universities; it is held annually in order to consolidate relations between these various institutions to support the training and education programs in the energy sector on the international level.

The sponsorship of Al-Hilal Oil Company for the participation of the three major Iraqi universities in this important international event was for paving the way for Iraq's educational institutions to establish long-term cooperative relations with international training and education institutions. This is the first participation of Iraq in this annual specialist International Conference, with a focus on the areas of petroleum engineering and topics on economy and business.

On the other, Dana Gas announced the implementation of a massive program for exploration and development in Egypt includes drilling 19 wells, 15 of which exploratory wells and 4 other developmental wells at a total cost of $170 million, using 5 drilling platforms. The wells located within the concession areas of the company under participation contract in the production sector of Kum Ambu in Upper Egypt and the Nile Delta sectors; the company drilled an exploratory well and another developmental one in the first sector, three developmental wells and 14 exploratory wells in the second sector where 5 wells was targeting the layer of Seedi Salim which is a significant technical challenge because reaching that layer requires drilling to a depth of 4000 meters.

Meanwhile, Abu Dhabi National Energy Company, (Energy), entered into a letter of intent with "Oasis International Energy" for cooperation in electricity and water projects in Pakistan, India and Bangladesh. It is noteworthy that the Government of Abu Dhabi owns 75% of Energy Company, while the Oasis Company, located in Abu Dhabi, is working for the establishment of independent electricity and water stations.

On its part, the company Abar is working to complete a contract of selling Pearl Unit for oil prospect and production to Mubadala Company for Development at $833.3 million by the end of April, which had been signed earlier; shareholders approved earlier last month on the sale of 100% of the shares of Pearl for Energy to Mubadala Company for Development.

Iraq

The Russian Company Stroy Transjaz entered into a bilateral protocol, signed in Jordan, with the North Oil Company to reform a pipeline to export oil to the Syrian port of Banias on the Mediterranean.

The second largest oil refinery in Iraq resumed operations in Basrah after two days of interruption due to electricity blackouts, according to sources in the South Oil Company; the first refining unit, which produces 75 thousand barrels per day of refined oil, resumed its normal operations but the other two units did not resume work yet. According to the Ministry of Energy, the production of the oil refining complex reaches 160 thousand barrels of oil per day for local market.