Experts Discuss Current and Upcoming Pipeline Projects by State Company for Oil Projects in Iraq

Basra – Iraq: 06 November 2013 – With the fourth edition of the Iraq Future Energy Conference approaching, experts – Mr. Falah Al Khawaja, former Director General for oil projects at State Company for Oil Projects (SCOP), and Mr. Ali Alwash, General Manager at State Company for Oil Projects (SCOP) - participating at the conference discuss the developments in the Basra fields, current and upcoming pipeline projects in the region, as well as the outcome of the 4th December OPEC output target meeting for Iraq.

Speaking on the importance of the developments in the Basra fields, Mr. Falah Al Khawaja, former Director General for oil projects at State Company for Oil Projects (SCOP), confirmed: “The development of the Basra oil fields is very important for federal Iraq's energy industry. These fields will raise Iraq's hydrocarbon supply to about 9 mmb/d of oil including present capacity, and lead to trebling gas output by 2020. This is a huge input to world and local supply. Local refining capacity will be doubled, and Iraq's power generation needs will be met.”

Referring to how critical is it to have an alternative to the Strait of Hormuz for exports, whilst also providing updates on Iraq's export pipeline infrastructure project, Mr. Falah, said: “The Strait of Hormuz issue was exaggerated and may be discarded depending on the ongoing dialogue between the West and Iran. Iraq, however, needs the flexibility of the western route to Jordan and Syria, and the northern route to Turkey. Preparatory work for both routes is progressing towards Jordan and Turkey. The southern corridor was never an option; but with the restoration of The Iraqi Pipeline in Saudi Arabia (IPSA), the pipeline to Yanbu remains the aim and a valid option.”

With regards to the current state of the northern route to Turkey he further added: “The 40 inch pipe line extending from Kirkuk to Cehan in Turkey is badly damaged in the section from Fatha to the border (nearly 400 km) and, accordingly, the whole pipeline has deteriorated considerably from its original capacity. The damaged length is to be replaced.”

Mr. Ali Alwash, General Manager, State Company for Oil Projects (SCOP), speaking at the Iraq Future Energy Conference on day three also highlighted some of the company's upcoming plans.

Mr. Alwash confirmed that State Company for Oil Projects (SCOP) will be starting with the 56" (Rumaila – K3) Pipeline; Zubair 1-Zubair 2-Fao Terminal 48" Pipeline; and the completion of 48" PS1-Fao Terminal, amongst others. With regards to the upcoming Jordanian pipeline tender, he mentioned that the submission deadline was March 2013, and projected timelines for completion is early 2017. He further elaborated that new sites they are looking to develop include the Iraqi- Syria Pipeline 42", and the new Iraqi – Turkey pipeline.

Providing insight about the outcome that the 4th December OPEC output target meeting will have for Iraq – where the decision whether to adjust its output target will be made, Mr. Falah Al Khawaja, said: “It depends on the negations between America and Europe with Iran. The outlook is positive. Either way, there should be no negative effect on Iraq. Iraq is still outside the OPEC quota and has not reached its pre-sanctions quota of 4.2m b/d. When it does, hopefully next year the quota may come to the fore.”

With the aim of providing direct access to regulators, policy and decision makers, as well as early insight into investment plans and project announcements in Iraq, the fourth annual Iraq Future Energy conference - organised by the Energy Exchange in partnership with the Iraq Energy Institute - will be held for the first time in Basra, Iraq from 26 – 28 November 2013.

The conference offers a comprehensive three-day programme, and will include dedicated presentations covering Power and Infrastructure, Capacity Building Strategies and Oil and Gas respectively. Mr. Falah Al Khawaja and Mr. Ali Alwash are confirmed to participate at the event and will be speaking on day three on “Constraints on Iraq Production and Exports”, and “Iraq is the Market for EPC Contracting” respectively. 

For more information on Iraq Future Energy 2013, please visit: http://www.theenergyexchange.co.uk/iraq