ISGID Member Bora Can Yıldız made a
warning: “The logic of ‘Gold Rush’ may turn into “Black Thursday” for some
companies in Iraq.”
Iraq’s energy future was discussed by the top
executives at a 2 day-long meeting. Some matters such as use of the water
resources, gas resources, infrastructure, petroleum pipelines, refineries,
processing and transportation of the petroleum as well as the energy strategies
of the country was handled by the speakers.
Having represented Turkey in the Middle East and
Iraq Energy Conference, Bora Can Yıldız, the ISGID Member, discussed the
country’s future together with the key players in the region.
The energy resources in Iraq and the projects
relating to such resources were discussed in the meeting in which the directors
of the world’s most important energy companies such as Shell, Chevron, Lukoil,
Crescent, Kogas as well as leading politicians in the region, bureaucrats and
businessmen participated.
The second richest oil reserves of the world as
well as the tenth richest natural gas resources of the world are located in
Iraq. However, being lack of security, logistics, human resources, transportation,
bureaucracy and infrastructure can sometimes constitute a problem for the
international players in terms of investing in the region.
Thamir Abbas Ghadbhan, the Chairman of the
Committee in Iraqi Parliament and former Minister of Oil explained the
Integrated National Energy Strategy INES in this meeting. He said that until
2017, they would reach 13 million barrels per day according to the high
production scenario, and 9 million barrels according to the medium production
scenario; and he stated the milestones relating to these two scenarios. Thamir
said that they would produce 10 BSCFD (Billion Standard Cubic Feet per Day) gas
in 2017 according to the high production scenario.
Adnan Al-Janabi, the Chairman of Energy and Oil
Committee, said that the oil reserves in Iraq reached 200 billion barrels, and
$ 1 trillion would be spent on the reconstruction of Iraq, provided that $ 500
billion of which would be spent on the oil and energy infrastructure. He
explained that they aim for a capacity of 1.5 million barrels a day as the
refinery capacity, and they aim for a capacity of 20 GW as the electricity
generation; and that they were making short, medium and long term investment
plans in this field, and that the majority of such investments would be made in
association with the international energy giants. Bora Can Yıldız who has taken
many projects in the region and one of the partners of EID Construction
addressed a speech about the region’s future and the difficulties encountered
in the region. Sharing his experiences about an airport project they run for
the international sector, and two hospital projects they run both for the
private and state sector, he explained that different projects had different
dynamics in the region.
Stating that the monthly safety expenses of a
single construction site may exceed $ 1 million for the international projects
they run in the oil regions; however, it costs way less for the projects they
run in the city among the people, and that the Iraqi people treat Turkish
people so hospitably and closely, Yıldız added: “We are really hopeful about
Iraq’s future; the bureaucratic difficulties are natural in a country going
through reconstruction, that’s why, we should be understanding. However, the
companies entering in the region must have a strong financial balance and be
prepared for the unexpected.
It is companies’ duty to contribute to the
development of the Iraqi people and Iraqi employees. They should also make a
contribution with the social projects. However, they should not do it just for
show; they should do because they want it from the heart.
Unfortunately, some international companies and
professional personnel working in the region aim for high revenues in the short
term. However, this causes a great damage both for the country and themselves
in the long term. The companies aiming to serve Iraqi people must be long
lasting, because these modest and humble people deserve it. Otherwise, the gold
rush may turn into a black Thursday situation for such companies”.
Bora Can Yıldız, the Vice President of EID
Construction running many construction projects in the region stated in his
speech that it is possible to encounter difficulties while conducting business
in Iraq due to the regional dynamics.
Yıldız said: “The amount of the processed gas production corresponds to 587
MMSCFD (million standard cubic feet per day) in Iraq today; however, more than
twice this amount is burnt off just because there is not enough facility to
process gases. While burning twice the production amount, they import one third
of their gas need. With a $ 40 billion worth investment to be made in the field
of gas in the next years, $ 500 billion revenue will be gained from the gas,
and saving on the oil which is used for the energy generation and corresponds to
$ 50 billion, the total revenue will be $ 550 billion. For the record, it is
amount to be gained only from the gas.” He added: “If some companies in the
region mistake these opportunities for gold rush and do not take the national
dynamics into account, and focus on the short term operations, and especially
do not respect the local culture there, the step they take with the intention
of gold rush may turn into a ‘black Thursday’ for them.”
Related Turkish Media Link:
http://www.patronlardunyasi.com/haber/Turk-isadami-uyardi-Irak-Kara-Persembe-olabilir/142014
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