Security Situation. Basra Province. Thi-Qar Province. Koerk telecom company attacked. Source: iraqi news. Date: 06 April 2014

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1 Security Situation Basra Province Koerk telecom company attacked Source: iraqi news. Date: 08 April 2014 A sound bomb targeted the headquarter of Koerk telecom company at 14 th street, Al-Jaza'aer area in the center of Basra city. No details have been reported. The main reason for this attack is the disputes between the employees who have been dismissed by the company. There also might be a political reason since Korek is a Kurdish Company. Thi-Qar Province Authorities in Thi-Qar announced the new guarantee system Source: ANIN Date: 06 April 2014 Thi-Qar has introduced new security measures which include an obligation to identify a resident guarantor from the province to enter the province. A similar scheme is used by Kurdistan, but in Thi-Qar it s already causing a plenty of problems and one politician says it will make non-local residents prisoners inside their own cities. Authorities in Thi-Qar announced the new guarantee system. This meant that anyone who go into areas where they were not regular residents, needed to provide a person within the area who would guarantee their identity. 1

2 Economic Situation Basra Province 1. Shell lifts first crude oil from Majnoon Oilfield Source: Khaleejtimes Date: 07 April 2014 Shell announced that Majnoon oil field, which is now operational in partnership with South Oil Company, Petronas and Maysan Oil Company, had successfully exported its first shipment of crude oil through trading, which is considered a significant milestone for the oilfield. After extensive rehabilitation works at the oilfield, the production of Majnoon oilfield has reached a current average of 210,000 bpd exceeding the initial target of 175,000 bpd by which the commencement of cost recovery can be achieved. The Shell s first oil shipment from Majnoon is of great significance to us as it is a testimony to our progress and signals of the start of Majoon s long-term to generate great revenue for Iraq, said Hans Nijkamp, vice-president and chairman of Shell Iraq. Nijkamp added that the progress in Majnoon field could not be achieved without the support of South Oil Company, and the partners, Petronas and Maysan Oil. Shell and its partners successfully resumed their production at Majnoon in September 2013 following the completion of major overhaul works, including 28sqkm of mine clearance, extensive refurbishment of Brownfield facilities to meet safety standards, and the construction of a new Greenfield central processing facility the largest one to be built in Iraq in a decade enabling an increase of the production capacity. So far, 18 new wells have been drilled, while the project has created more than 2,850 jobs for Iraqi people from the neighboring communities. 2

3 2. Lucky Cement begins production in Basra Source: aggregate research Date: 07 April 2014 Pakistan producer Lucky Cement has started its production at its 0.87 grinding plant in Basra, Iraq. Lucky Cement CEO, Muhammad Ali Tabba, said that the production had started in February as the first phase and if we succeed in our projections, we may go for a full cement production of 1.25 million tons, which may cost around US$125m in total. US$40m project is executed by 50:50 joint ventures with the Al-Shawy group of Iraq. 3. US Firms form Iraq Oil Services Group Source: business news Date: 09 April 2014 North America Western Asia Holdings (NAWAH), U.S. Steel Tubular Products, a subsidiary of United States Steel Corporation, and MRC Global Inc. have announced an alliance to bring critical oil well equipment into the natural resources-rich region of southern Iraq. The consortium will serve as international lineup of leading oil and gas companies charged with developing Iraq s giant oil and gas fields. This consortium has committed to providing an initial inventory of oil well equipment to launch the effort and plans to expand Iraq s in-country supply of material when the oil well demand increases. The first shipment of oil well material is expected to arrive in Iraq in early May. NAWAH, with regional headquarters in Dubai, United Arab Emirates and operational headquarters in Basra, Iraq, is focused on world-class port operations and supply and distribution in southern Iraq. U.S. Steel Tubular Products is the largest integrated tubular producer with more than 100 years of experience serving the energy markets. Houston-based MRC Global is the largest global distributor of pipe, valve and fitting products and services to the energy and industrial markets. 3

4 4. French engineering company Technip awarded Basra NGL contract as one of the contractors Source: kuna.net French engineering company, Technip, in partnership with China's HuanQuiu Construction (HQC), has been awarded a contract by Basra Gas Company (BGC) as one of the contractors for frontend engineering and design of a Natural Gas Liquids production in the North Rumaila field in Basra. Technip said in a statement that the project was the first of a series of "Greenfield" processing units that will handle associated gas and minimize gas flaring on Iraqi oil fields. The NGL tank will have a nominal gas feed capacity of 530 million cubic feet per day and the facility will produce NGLs and condensate and will make more energy resources available for power and home use. The contractors are responsible to a standard EPC package. Work of Technip will be managed from its operating centre in Abu Dhabi and it is due for completion by the end of this year. BGC is composed of Iraq South Gas Company (51 percent), Shell (44 percent) and Mitsubishi (5 percent). 5. Philippines ICTSI to invest $130m in Iraq port deal Source: trend.az The Philippines' International Container Terminal Services Inc (ICTSI) said that it had agreed to operate, develop and expand Iraq's largest port facilities and invest $130 million in the first phase of the deal. The Manila-based global ports operator signed a contract with General Company for Ports of Iraq involving container facilities at the Port of Umm Qasr, located on Iraq's Gulf coast. The port has 21 berths, with container throughput totaling 500,000 Twenty-foot Equivalent Units (TEU), in ICTSI said that the contract grants it rights to manage and operate the existing berth for a 10-year period. ICTSI will also build, under a build-operate-transfer scheme, a new container and general cargo terminal in the port for a 26-year concession period, and provide container and general cargo terminal services in both components. It said that the expansion project would involve an initial 200 meters of quay with an estimated capacity of 300,000 TEUs. The capacity will expand to 900,000 TEUs when the facility is fully developed with 600 meters of quay, ICTSI said. 4

5 ICTSI, owned by the Philippines' fourth-richest person Enrique Razon, operates the Southeast Asian country's biggest ports and has terminal concessions and port development projects in more than a dozen other countries, including in Indonesia, Japan, China, the United States, Brazil, Colombia, Ecuador, Poland, Pakistan and India. Thi-Qar Province Lukoil and Inpex started a project in Iraq Source: upstream online Russian giant Lukoil has launched a 2D seismic survey of Block 10 in southern Iraq. Geophysical survey is being carried out in over a period of 16 months in Thi-Qar and Mutanna provinces, 120 kilometres to the west of Basra. It is a part of a five-year exploration program, with possible twoyear extension, that also includes drilling of a single well under a 25-year technical service contract awarded to Lukoil in The Russian player, which holds exploration, development and production rights, operates the block with a 60% stake with Japanese partner Inpex on 40%, while state-owned South Oil Company is deemed to be the contract holder. 5