THE OIL & GAS YEAR - theoilandgasyear.com€¦ · 42 PULLOUT MAP: The road to 1 million barrels per...
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KURDISTAN REGION OF IRAQ 2014
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9781783020683
ISBN 978-1-78302-068-3
Resilient and resolvedNechirvan BARZANIPrime MinisterKURDISTAN REGIONAL GOVERNMENT
Build it betterDr. Ashti HAWRAMIMinister of Natural ResourcesKURDISTAN REGIONAL GOVERNMENT
Realm of possibilityDrew GOODBREADGeneral Manager Kurdistan Region of IraqEXXONMOBIL
ARTICLES | INTERVIEWS | VIEWPOINTS | MARKET ANALYSIS | RESOURCES | PROJECTS | MAPS | INVESTOR SPOTLIGHTS
THE OIL & GAS YEAR The Who’s Who of the Global Energy Industry
14 THE YEAR IN REVIEW
15 VIEWPOINT: Resilient and resolved. Nechirvan Barzani,Prime Minister of the Kurdistan Regional Government
16 VIEWPOINT: Resources for peace. Yousif Mohammed Sadiq, Parliamentary Speaker of the Kurdistan Regional Government
DATA CENTRE: Key numbers from the Region’s industry18 THE KURDISTAN REGION OF IRAQ AT A GLANCE19 INVESTORS INDEX20 THE YEAR IN ENERGY
24 DIPLOMACY & POLITICS
25 ARTICLE: Double up. A look at an eventful 201425 IN SURVEY: TOGY’s survey results at the 2013 CWC
Iraq- Kurdistan Oil & Gas Conference in Erbil28 INTERVIEW: Dr. Ashti Hawrami, Minister for Natural Resources28 IN PRODUCTION: Gross production in the Kurdistan
region of Iraq by selected operators, 2009-201331 VIEWPOINT: Maximum Potential. Qubad Talabani,
Deputy Prime Minister of the Kurdistan Region of Iraq32 VIEWPOINT: Good neighbours. Mehmet Akif İnam,
Turkish Consul General in Erbil33 VIEWPOINT: Benefits for both. Sinan Ülgen, Centre for
Economics and Foreign Policy Studies34 MARKET ANALYSIS: Mutual interest. Hugh Evans, Former
UK Consul General in Erbil35 INTERVIEW: William Patey, Control Risks36 VIEWPOINT: Unaltered assistance. Gary Kent, All-Party
Parliamentary Group on the Kurdistan Region of Iraq 37 VIEWPOINT: Market access. Sohbet Karbuz,
Mediterranean Energy Observatory
38 E&P: EARLY ENTRANTS
39 ARTICLE: Remarkable investment. The success of early developers39 IN PRODUCTION: Gross oil production in the Kurdistan
region, 2003-201342 PULLOUT MAP: The road to 1 million barrels per day43 COMPANY PROFILE: Genel Energy44 RESOURCE: Shaikan Production Facility45 COMPANY PROFILE: Gulf Keystone Petroleum46 OPERATIONS REPORT: Gains and objectives at DNO’s
licences. Daljit Gill, DNO Iraq AS
48 ARTICLE: A different direction. A look at horizontal drillingFOLDOUT MAPS: Kurdistan Region exploration activities,
discoveries and development, gas infrastructure, oil infrastructure
50 OPERATIONS REPORT: MOL’s phased development at Akri-Bijeel. Alexander Dodds, MOL
52 OPERATIONS REPORT: New wells at TTOPCO’s Taq Taq field. Zhang Yi, Addax Petroleum
53 RESOURCE: Taq Taq field development56 OPERATIONS REPORT: Talisman Energy’s 3D-seismic
survey and exploratory drilling at Kurdamir and Topkhana. Ross Deutscher, Talisman Energy
57 COMMENT: The fluid fix. How the fractured carbonate reservoirs of the region affect drilling
58 OPERATIONS REPORT: Oil Search’s Taza-2 complete, eyeing Taza-3. Julian Fowles, Oil Search
60 INTERVIEW: Steve Lowden, NewAge61 RESOURCE: Taza-263 OPERATIONS REPORT: WesternZagros’ transition to
production at the Kurdamir and Garmian blocks. Simon Hatfield, WesternZagros Resources
64 ARTICLE: Take aim. Greater investment in the upstream sector calls for more seismic programmes
65 INTERVIEW: Dave Scott, HKN Energy66 ARTICLE: The structural domains of the Kurdistan Region
of Iraq. The four zones of the region’s topography explained in more detail
68 COMMENT: Pipeline progress. Export options open up69 INVESTOR SPOTLIGHTS: KAR Group, ShaMaran
Petroluem, Hunt Oil Company, OMV
70 E&P: RECENT ENTRANTS
71 ARTICLE: Assembled output. Attention on the big stage71 IN DEPTH: Investors’ opinions on the region’s PSC regime73 INTERVIEW: Donnie MacDonald, Chevron Iraq74 INTERVIEW: Emmanuel De Guillebon, Total E&P Iraq76 PROJECT HIGHLIGHT: Atrush field development77 RESOURCE: Atrush field development78 INTERVIEW: Drew Goodbread, ExxonMobil79 COMPANY PROFILE: Marathon Oil80 INTERVIEW: Frank McKay, Hess82 INTERVIEW: Mikhail Kholodov, Gazprom Neft83 ARTICLE: Favourable conditions. More than 50
international companies have signed PSCs in the region
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The Who’s Who of the Global Energy Industry
KURDISTAN REGION OF IRAQ 2014 THE OIL & GAS YEAR
The Who’s Who of the Global Energy IndustryTHE OIL & GAS YEAR | KURDISTAN REGION OF IRAQ 2014
24Diplomacy & Politics
2014 has been an eventful and decisive yearfor the Kurdistan Region of Iraq. In res-ponse to the insurgency of the Islamic State,the Kurdistan Region has expanded its terri-tory. The Kirkuk field came under control oflocals. With the debut of independent oilexports and backed by revenue from theregion’s fields, full economic independenceis becoming ever more likely day by day.
38E&P: Early Entrants
Since 2002, when Genel Energy signed the firstproduction-sharing contract (PSC) in the re-gion, more than 100 wells have been spuddedand some of the world’s largest oil and gascompanies have signed PSCs with the KurdistanRegional Government. Since Genel’s entrance,$15 billion has been invested in the region’soil and gas industry. Confidence in the region’sPSC model has been the foundation of invest-ment, more of which is predicted in the future.
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70E&P: Recent Entrants
From the wildcatters of 2002, the Kurdistan Re-gion is seeing some of the largest oil and gascompanies in the world enter the local market.Chevron, ExxonMobil, Total and Gazprom Neftare among the big players that are drilling andacquiring seismic data across the region. Underproduction-sharing contracts, the activities ofthese super-majors are adding a new perspec-tive to the region’s hydrocarbons industry.
94CSR & Local Workforce Development
The rapid growth of the oil and gas industry inthe Kurdistan Region of Iraq is outpacing thedevelopment of a domestic skilled workforce.Efforts are underway to train a greater numberof local workers and the Ministry of Natural Re-sources hopes to achieve at least a threefoldincrease in local labour by the time the regionhits production of 1 million barrels of oil perday, targeted for year-end 2015 or early 2016.
116The Year’s Focus: A decadeof drilling and development
The development of the hydrocarbons indus-try in the Kurdistan Region has been extraor-dinary. From the first well spud in 2005 to aproduction rate of 400,000 barrels of oil perday in 2014, there is now a target of 1 millionbarrels of oil per day by the end of 2015 orearly 2016. Industry hopes are high for a re-gion with such a successful track record.
83 RESOURCE: How production-sharing contracts work84 COMPANY PROFILE: Repsol86 INTERVIEW: Esbern Hoch, Maersk Oil87 OPERATIONS REPORT: Oryx Petroleum’s exploration,
appraisal and early production at Hawler. Jean Claude Gandur, Oryx Petroleum
88 GEOLOGY REPORT: Nuances of the Kurdish thrust belt91 ARTICLE: Pad potential. A look at the benefits of pad drilling92 INVESTOR SPOTLIGHTS: Afren, Petroceltic92 COMMENT: Heavy lifting. The production of heavy oil93 ILLUSTRATION: Khurmala field
94 CSR & LOCAL WORKFORCE DEVELOPMENT
95 ARTICLE: Local jobs for local growth. Efforts to grow local labour to keep pace with the expanding oil industry
96 IN EMPLOYMENT: Local employment by international oil company, 2014
96 IN STAFF: Proportion of local and expatriate staff according to skill level, 2014
97 INTERVIEW: Ian McIntosh, Ministry of Natural Resources98 RESOURCE: Piramagrun mountain99 VIEWPOINT: Heal old wounds. S.H. Salih, Ministry of
Natural Resources100 CSR SPOTLIGHTS: A round up of initiatives spearheaded by oil
and gas companies active in the Kurdistan Region of Iraq102 ARTICLE: Positive collaboration. CSR efforts to boost skills103 VIEWPOINT: Development without destruction. Azzam
Alwash, Nature Iraq104 INTERVIEW: Hallo Askari, Ministry of Natural Resources105 RESOURCE: Zab River Basin
106 BANKING & FINANCE
107 ARTICLE: On the verge. A lack of loans and regional instability is hindering further oil and gas developments
109 INTERVIEW: Tom Robinson, Deutsche Bank110 COMPANY PROFILE: İş Bank111 ARTICLE: Law and progress. Foreign direct investment112 VIEWPOINT: Insurance at home. Jamal Asfour, Asia
Insurance113 MARKET ANALYSIS: KRG needs a fair forum. Richard
Devine, Baker Botts114 INTERVIEW: Shwan Ibrahim Taha, Rabee Securities
115 ARTICLE: Anticipated exchange. Iraq’s Stock Exchange can help the growing Erbil Stock Exchange
115 IN VOLUME: ISX total monthly trading volume and foreigners’ share in total trading volume
116 THE YEAR’S FOCUS: A decade of drilling and development
117 ARTICLE: Streamlined development. The region has gone from a high-risk gamble to a global exploration powerhouse
117 IN EXPORTS: Oil exports by the KRG, 2008-2013119 MAP: Pipelines in the Kurdistan Region of Iraq120 VIEWPOINT: Turnaround time. Mehmet Sepil,
Genel Energy121 PROJECT HIGHLIGHT: The Kurdistan Crude pipeline122 VIEWPOINT: A transformative decade. Hiwa Talabani,
Kelkan Contracting
124 OILFIELD SERVICES
125 ARTICLE: Smooth transition. The services sector is being increasingly dominated by local companies
126 IN NUMBER: Rig count and the number of wells drilled127 MARKET ANALYSIS: Proximate amenities. Imran Khan,
Falcon Oil & Gas128 MARKET ANALYSIS: Benefits of the big four. Omar
Moussa, Schlumberger130 INTERVIEW: Jaz Dulay, Energy Logistics132 VIEWPOINT: Step right up. Dana Dougramachi,
Federal Group134 MARKET ANALYSIS: Seismic advance. Mick Lambert,
Wireless Seismic136 INVESTOR SPOTLIGHTS: NPS, Terraseis, Halliburton,
Black Lake
138 DRILLING CONTRACTORS
139 ARTICLE: Time to drill. The expansion of the drilling sector140 MAP: Drilling activity in the Kurdistan Region of Iraq141 RESOURCE: Drilling rig locations in the Kurdistan
Region of Iraq, beginning of 2014142 INTERVIEW: John Bushell, Ensign International
Energy Services144 COMPANY PROFILE: Güney Yıldızı Petrol
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The Who’s Who of the Global Energy Industry THE OIL & GAS YEAR | KURDISTAN REGION OF IRAQ 2014www.theoilandgasyear.com
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FOLDOUT TIMELINE: A decade of drilling and development146 INTERVIEW: Ben Babineau, Nabors Drilling International147 COMPANY PROFILE: EDC Romfor149 INVESTOR SPOTLIGHTS: Weatherford International,
Viking Services, Rotary Drilling, KS Drilling
150 ENGINEERING & CONSTRUCTION
151 ARTICLE: Blocks to build. A successful sector151 IN SURVEY: Opinions on equipment import, availability
of services and workforce development153 COMPANY PROFILE: ILF Consulting Engineers154 INTERVIEW: Larissa Urban, Qualitas International154 IN TOTAL: Local staff in the region’s oil and gas industry155 COMPANY PROFILE: Havatek156 COMMENT: Engineer Taq Taq. Construction is underway157 PROJECT HIGHLIGHT: Ceyhan Oil Storage Terminal
expansion project
158 DOWNSTREAM & POWER GENERATION
159 ARTICLE: Sound groundwork. Local companies are forecasting growth in the region’s downstream sector
159 IN INPUT: Oil processed in the region’s main refineries160 IN OUTPUT: Net main refining output, 2009-2013161 VIEWPOINT: A step forwards. Hadi Nezir, UB Holding162 COMPANY PROFILE: KAR Group163 PROJECT HIGHLIGHT: Bazian refinery expansion
164 ARTICLE: Rapid progression. A build-own-operate model165 COMPANY PROFILE: Mass Global166 PROJECT HIGHLIGHT: Dohuk combined-cycle power plant167 PROJECT HIGHLIGHT: Khurmala power plant
168 ASSOCIATED SERVICES
169 ARTICLE: Hold strong. Oil and gas is feeding the wider economy169 IN OPINION: Opinions on business efficiency, legal and
fiscal investment framework and security in the region170 VIEWPOINT: Critical mass. Brad Camp, Darb Global171 INTERVIEW: Charlie Mayne, VSC Security172 COMMENT: Continued stability in the Kurdistan Region
of Iraq. A look at security in the region from the 2013 bombs in Erbil to the present day Islamic State threat
174 INTERVIEW: Haller Dleir Miran, Mselect176 ARTICLE: Point of entry. The possibility of more entry points
along the Turkish border to ease present import export problems177 INVESTOR SPOTLIGHTS: Enertech International
Kurdistan, MineTech, Stirling Group178 INTERVIEW: Mike Gilbert, United Safety
180 EXECUTIVE GUIDE
181 ACCOMMODATION185 EVENTS186 ACKNOWLEDGMENTS187 ADVERTISERS INDEX
Publisher: Emmanuelle Berthemet Editor-in-Chief: Gilles Valentin Chief Operating Officer: Aslı Konyalı Country Director: Eric Gay Country Co-ordinator: Aslı Üçer Managing
Editor: Simon Johns Production Manager: Alex Mazonowicz Chief Sub-Editor: Amanda Towle Deputy Chief Sub-Editor: Suzanne Carlson News Editor: Nick Augusteijn
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KURDISTAN REGION OF IRAQ 2014The Who’s Who of the Global Energy Industry
THE OIL & GAS YEAR
The Who’s Who of the Global Energy Industry THE OIL & GAS YEAR | KURDISTAN REGION OF IRAQ 2014
138Drilling Contractors
The Kurdistan Region of Iraq’s drilling sectorhas expanded eightfold since 2003 and theoutlook for the future is positive, with new rigsin the market and techniques from managedpressure drilling and directional drilling facili-tating new discoveries and rapid field devel-opment. However, there are still challenges toovercome including a lack of skilled domesticemployees and a lengthy tendering process.
150Engineering & Construction
Greater electricity generation in the Kurdistan Re-gion of Iraq is one example of the area’s rapideconomic growth and engineering and construc-tion success. In 2007, electricity capacity in theKurdistan Region was 484 MW. This grew to 2.7GW in 2012 and the target is to double that withinthree years. Engineering and construction proj-ects across the upstream and midstream sectors,including processing facilities and pipelines arealso providing opportunities for sector growth.
124Oilfield Services
The oilfield services sector in the Kurdistan Re-gion is progressing steadily from a sector staffedwith mostly expatriate employees to one sup-ported by an expanding domestic workforce.This is largely thanks to the establishment ofmore machine shops in the region, allowing forequipment and repairs to be accessed domes-tically rather than relying on lengthy and costlyimports. However, obstacles remain to be over-come, such as growing the pool of local talent.
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15 Resilient and resolved Nechirvan Barzani
Prime Minister of the Kurdistan Regional Government
16 Resources for peaceYousif Mohammed SADIQ
Speaker
KURDISTAN PARLIAMENT
20 The Year in Energy
THE YEAR IN REVIEWp
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