logologo #IraqPetroleum 20–21 October 2020

Interview with Loris Tealdi, Managing Director, ENI Iraq b.v

The eleventh edition of the Iraq Petroleum Conference taking place on 22-23 May 2017 in London is set to gather the Country’s industry experts to discuss the future of Iraq’s hydrocarbons sector. Ahead of the conference, CWC Group Director Nawar Abdulhadi interviews one of the key speakers of this year’s event, Mr Loris Tealdi, Managing Director, ENI Iraq b.v. Mr Tealdi shares his experience working on the Zubair oilfield, how Eni is working towards innovation and his outlook for the future of the industry. 

 

Nawar Abdulhadi: Why is Iraq such an important market for the global oil and gas industry?

Mr Loris Tealdi: Iraq is historically one of the most important areas in the world in term of oil reserves and production potential. In addition, there may be also future evolutions to improve gas valorisation and empower the downstream sector.

The Iraq reservoirs are of great size and excellent properties. On top the government is quite open to the application of new technology and innovation that can lead to very important results in term of production enhancement also in the short run. Eni has a story to tell here: the exceptional oil production ramp-up of over 70% that we had in giant Zubair field over the last 2 years.

 

Nawar Abdulhadi: How does the Government of Iraq and the oil and gas industry work together to drive innovation?

Mr Loris Tealdi: The drive for development is the effective deployment of new technology; here the presence of IOCs in the country and the effective know-how transfer from the industry to the brightest Iraqi personnel can be the leverage for a significant improvement from many perspectives. As far as Eni is concerned in Iraq, an important event that marked a new attitude of the country is the entry of SOC as second party in The Zubair JV replacing Occidental after its withdrawal in 2016. This event is a step change in the cooperation between IOCs and NOCs in Iraq and has the potential to strengthen win-win solutions and to further improve the deployment innovative technology In Iraq.

 

Nawar Abdulhadi: As an industry expert and ENI Iraq Managing Director, how would you summarize your experience working in Iraq?

Mr Loris Tealdi:  Working in Iraq requires motivation, resilience, passion for work, technical competence and strong negotiation skills. After 2 years in this role in the Country, I can say that working in Iraq has been a very exciting but extremely challenging professional experience. The relationships and personal trust built by Eni and the SOC/MOO personnel based upon transparency, integrity and technical competence have been the drivers that allow us to grow significantly over last years. The involvement of all the Iraqi and the expatriates as one unique team for the successful development of the Zubair field has been the key. The results have been extremely positive from both an operations and a project development perspective. Also, the project cost recovery has been positive over last period thanks to the cooperation of SOC following their entry in the Zubair JV.

At the beginning of March 2016, three new generation plants for oil, gas and water treatment (Initial Production Facilities – IPF) started operating in Zubair. Those plants, together with existing restructured and modernized facilities, increased the oil and natural gas treatment capacity of Zubair to approximately 650,000 barrels of oil per day (boed) and will ensure the maximization of the associated gas utilization. In addition, these facilities have a water re-injection capacity of approximately 300,000 boed that will boost Zubair’s hydrocarbons production further. In addition, the construction of a further oil treatment plant named DGS North with a capacity of additional 200,000 boed is in full execution.

Over last two years Eni has increased its output in Zubair of about 70% to the current level above 430,000 boed. In addition, water injection rose to about 450,000 bwpd ensuring the maximum recovery of reserves. Zubair can further grow in the near future if the cooperation with the local authorities remains positive as has been over the recent past. Thanks to its distinctive expertise and the important training of local resources, Eni’s operational efficiency has improved dramatically both in terms of productivity of wells and in terms of drilling and plant management capabilities and reduced downtimes. The significant achievements in the technical and operational performance improvement of Zubair were obtained through excellent performance in terms of safety at work and respect for the environment.

Unitary production costs have more than halved since the entrance in the project in 2010 making Eni top performers in the country, as recognized by the Iraqi authorities. Eni has been very attentive to the development of local resources and through relevant training opportunities for the Iraqi work force and achieved also very positive performances on one of our priorities, HSE. One number for all: the 3 IPFs were started up in 2016 with the record of 12 Million hours incident free.

 

Nawar Abdulhadi: What is the role of ENI Iraq in enhancing projects performance and research?

Mr Loris Tealdi: The plan that had been put in place for the redevelopment of the Zubair field is based on the best innovative solution available and the distinctive competencies of Eni in several areas of technical and managerial expertise.

It had already been realized and successfully put in service in 3 new IPF (production treatment facilities) with a new capacity of 300,000 bopd capacity and the 4th installation named DGS North will be commissioned within the end of the 2017 or other 200,000 bopd additional capacity. These investments will allow reaching the contractual production plateau in advance compared to the current plan with an important benefit for Iraq. All such improvements and start-ups, along with the oil production and water injection growth, will be done with the maximum attention to cost containment.

In the development plan it had also been foreseen the construction of a power plant that will cover part of the energetic needs of the Basra area after meeting the oilfield demand with an important social impact. On top Eni Iraq confirms its commitment to increased investment towards sustainability in Iraq in the coming years, with a focus on the education sector and the renovation of schools in Basra, in which Eni operates, as well as maintaining a high level of technical and operational performance of the Zubair field.

 

Nawar Abdulhadi: What is your main interest at the Iraq Petroleum 2017 Conference?

Mr Loris Tealdi:  Learn the experience of other IOCs operating in Iraq and capture the vision of the Oil ministry over the future of Iraq in the coming years.

 

Nawar Abdulhadi: What is the outlook for Iraq as a global player in Oil & Gas?

Mr Loris Tealdi:  Iraq can be a major player even much more than it is today in the Oil & Gas panorama. The potential to grow is huge.

 

Mr Loris Tealdi will be speaking at Iraq Petroleum on 22 May 2017 during Session 2: Iraq’s Oil & Gas Operators: the Value of Partnerships in Developing Energy for Iraq’s Future Generations.

 


 

About Mr Loris Tealdi

Loris joined Eni in 2001 as Reservoir Engineer and spent most of his career abroad in several countries and positions working in Italy, Kazakhstan, Nigeria and Congo. He covered positions as Reservoir Manager, Operations and Deputy General Manager in Nigeria and Congo, Vice President of the Reservoir activities for Africa Region. In 2013 was appointed Vice President for all Reservoir & Petroleum Engineering activities of Eni worldwide. Since May 2015, is the Managing Director of Eni Iraq b.v. managing the development and operations as Lead Contractor of the super-giant Zubair field.

Interview with Zaid Elyaseri, Iraq Country Manager, BP Iraq

The CWC Group’s Director, Nawar Abdulhadi interviews Mr Zaid Elyaseri, Iraq Country Manager, BP Iraq ahead of the 11th edition of the Iraq Petroleum Conference in May. Mr Elyaseri shares with us his experience working in the Rumaila oilfield, how BP is optimising and innovating in the current market and his outlook for the future of the industry in the country. 

 

Nawar Abdulhadi: Why is Iraq such an important market for the Oil & Gas industry?

Zaid Elyaseri: As well as being the fourth largest oil-producing country in the world, Iraq’s reservoirs harbours approximately 145 billion of oil reserves, so the country today is clearly an important market for the oil and gas industry and how the world meets its energy needs.

Moreover, with OPEC’s recent decision to curtail oil production supply, there is now clearly an emphasis on extracting oil that delivers values for money for both national governments and IOCs.

In the case of the Rumaila oilfield – which accounts for over a third of Iraq’s total oil production – the lifting cost per barrel is relatively low, making Rumaila’s oil production among the country and the world’s most competitive oilfields. So, despite its many challenges and because of this access to prolific and low-cost oil-production, Iraq is likely to remain a key player in the international oil market.

 

Nawar Abdulhadi: How does the Government of Iraq and the oil and gas industry work together to drive innovation?

Zaid Elyaseri: Innovation manifests itself in different ways. And in times of austerity the industry in Iraq has had to learn to work smarter.

In the face of a deep operational budget cut, at Rumaila we’ve had to reassess the way we work across the operation. We’ve had to look at where we could optimize processes – for example we now take a lot less time to drill a new well, to put on production and to complete a workover. Innovation at Rumaila has been about doing the same job better, in less time and for less money. I’d add that in many ways, the greatest innovations take place out on the field: the daily jobs that maintain and maximise production in what is largely a brownfield operation.

More broadly, we want to see a thriving local Iraqi market that supports our industry, so that Rumaila can expand its local contractors base (currently 40%), instead of having to turn to international firms. This means paying real attention to supporting local companies to take major steps in building their skill levels.

 

Nawar Abdulhadi: As an industry expert and BP Country Manager for Iraq, how would you summarize your experience working in Iraq?

Zaid Elyaseri: The joint venture between BP, SOC and PetroChina was a new way of operating for each partner; of course, it has been a challenging journey for all of us, not least exacerbated by the fall in oil price, but Rumaila has increased production by over a third (above base decline) since the establishment of the Rumaila Operating Organisation in 2010.

Personally speaking, it has been a rewarding seven years. We are working with our partners to overcome challenges – from logistical and structural difficulties (which have significantly improved in South Iraq in recent years) to developing a workforce comprised of different cultures that has been able to pull together and work as one team to deliver for Iraq. Yes, there are always challenges, which can make long-term planning difficult, but this is not unique to Iraq.

As an Iraqi, being able to work to help make Rumaila a success – Iraq’s most valuable economic asset – is something that gives me great pride. 

 

Nawar Abdulhadi: What is the role of BP in enhancing projects performance and research in Iraq?

Zaid Elyaseri: BP is in Iraq for precisely this reason: to enhance the performance of its contracted oil operations. At Rumaila, successfully increasing oil production has been achieved through introducing new technologies, renovating the field and by deploying modern engineering solutions.

Fundamentally, BP is here to improve Rumaila – both now and for the long-term – and that also means transferring our knowledge of managing super-giant oilfields to the next generation of Iraqi industry leaders, so that they can continue to deliver for Iraq.

Finally, I’d reiterate the need to view performance in terms of how efficient an operation functions. Rumaila managed to increase production in 2016 to 1.411 million barrels per day, despite a significant cut in budget. How did we do this? By building on investment made in previous years, by reshaping the business and by looking how we could ‘do more with less’ – a mantra now prevalent across BP operations across the world.

 

Nawar Abdulhadi: What is your main interest at the Iraq Petroleum Conference?

Zaid Elyaseri: The themes discussed are issues which resonate with everybody in the industry. My view is that all businesses thrive by building strong relationships and partnerships, so it is always beneficial to meet with counterparts who work in different parts of Iraq. Conferences such as the Iraq Petroleum are an opportunity to listen, reflect and engage with people who want to make our sector a success.

 

Nawar Abdulhadi: What is the outlook for Iraq as a global player in Oil & Gas?

Zaid Elyaseri: The outlook is very positive. The country has increased production by overall a million barrels per day in little over two years – a phenomenal increase.

Clearly, OPEC will have a large say in the rate of growth in the coming years, but Iraqi oil production is well-placed to continue to reap the benefits from the investment made between 2010-2015 and increase its impact on the global stage, and arguably its share of the global market.

 

Zaid Elyaseri will be speaking at Iraq Petroleum on 23rd May 2017 during Session 2: Iraq’s Oil & Gas Operators: the Value of Partnerships in Developing Energy for Iraq’s Future Generations.

 


 

About Mr Zaid Elyaseri

Zaid Elyaseri is Country Manager for BP Iraq responsible for working with key government and energy officials in Iraq. Prior to this role, Zaid was involved in starting the Rumaila business and was primarily responsible for cost recovery. He has been with BP for eight years and has worked in Europe and Middle East. Prior to BP, Zaid worked for KPMG UK with a focus on the Middle East. He completed several finance roles with clients from oil and gas and financial services.

Interview with Mr Gati Saadi Al-Jebouri, LUKOIL Vice President, Head of Middle East Upstream

The CWC Group’s Director, Nawar Abdulhadi interviews Mr Gati Saadi Al-Jebouri, LUKOIL Vice President, Head of Middle East Upstream in preparation for the 11th edition of the Iraq Petroleum Conference in May. Mr Al-Jebouri gives us his views on the Iraqi industry, how LUKOIL is working successfully in the country and his outlook for the future of the industry in the country. 

 

Nawar Abdulhadi: Why is Iraq such an important market for the global oil and gas industry?

Gati Saadi Al-Jebouri: Iraq is of great importance to the world oil market due to its abundant resource potential. The country ranks fifth in the world in terms of proven oil reserves, however many fields have either not been developed at all or developed at below their full capacity because of lack of investments and infrastructure problems. Our common goal with the Government of Iraq is to find possibilities to maximize investments in the country’s oil and gas industry, by making them beneficial both for the state and for the IOCs.

 

Nawar Abdulhadi: How does the Government of Iraq and the oil and gas industry work together to drive innovation?

Gati Saadi Al-Jebouri: The IOCs and the Government of Iraq are working actively toward this goal and have already achieved considerable results. Almost all leading IOCs and major service companies have already established their presence in Iraq and started to implement modern technologies in cooperation with the Iraqi partners.

However, there is still a long way to go. To bring more innovations, it’s essential to improve the investment climate continuously.

The representatives of LUKOIL and the Ministry of Oil and South Oil Company hold regular meetings to discuss terms and conditions of the existing contracts, trying to ensure inflow of investments into the country regardless of the market conditions.

 

Nawar Abdulhadi: As an industry expert and LUKOIL Senior VP, how would you summarize your experience working in Iraq?

Gati Saadi Al-Jebouri: I would summarize our experience in Iraq as “big challenges and incredible results”. Both of our projects in Iraq are “greenfield”. Moreover, while West Qurna-2 was already explored in the 70’s of the last century, the large discovery at Block 10 was made by SOC (South Oil Company), LUKOIL and Inpex just several months ago.

Currently, West Qurna-2 is leading all “greenfield” projects in Iraq in terms of production volume. To achieve these results, we have established good working relationship with the local population at the contract area, conducted demining and built modern production facilities. We can definitely state that the projects which we are implementing in Iraq are unique not only for the company but for the international oil industry as a whole.

 

Nawar Abdulhadi: What is the role of LUKOIL in enhancing projects performance and research?

Gati Saadi Al-Jebouri: LUKOIL pays special attention to the front-end engineering, including assessment and interpretation of geological data, preparation and updating of the field development feasibility studies, and selection of asset development options depending on the external conditions. Thus, we ensure that all the decisions made are optimal for the development of a particular asset. Besides, we work very closely with the local population, as we believe that mutual understanding and cooperation with people on the contract area has an immediate effect on the efficient implementation of our projects.

 

Nawar Abdulhadi: What is your main interest at the Iraq Petroleum Conference?

Gati Saadi Al-Jebouri: My aim is to highlight LUKOIL’s recent achievements in Iraq to the participants, to exchange views with my colleagues and representatives of the Iraqi state authorities on the most urgent issues in the development of the oil and gas industry in Iraq.

 

Nawar Abdulhadi: What is the outlook for Iraq as a global player in Oil & Gas?

Gati Saadi Al-Jebouri: Iraq has very good chances to become one of the leaders of the oil and gas industry of the 21st century. Our estimates suggest that the worldwide demand for liquid hydrocarbons will grow, especially in Asia and the Middle East. Iraq has apparent competitive advantages, such as huge hydrocarbon reserves, low cost of production, proximity of major oilfields to the export terminals. To unlock Iraq’s potential as a leading global oil and gas player, it’s essential to achieve internal political stability, as well as to reduce security risks, diversify the Iraqi economy, improve terms and conditions of E&P contracts, and develop the internal energy market. I strongly believe that the Iraqi authorities will do their best to turn it into reality.

 

Mr Gati Saadi Al-Jebouri will be speaking at Iraq Petroleum on 23rd May 2017 during Session 2: Iraq’s Oil & Gas Operators: the Value of Partnerships in Developing Energy for Iraq’s Future Generations.

 


 

About Mr Gati Saadi Al-Jebouri

Mr. AL-JEBOURI is LUKOIL Vice President, Head of Middle East Upstream.

He started his career with KPMG UK. In 1998 LUKOIL Europe Ltd invited Mr. AL-JEBOURI to take over the position of Director of Investments and Finance. After 3 years of working on various investment projects, including the acquisition of two refineries in Eastern Europe, he left the company in 2001 to assume the position of Deputy Minister of Energy’s Office in Bulgaria and subsequently was appointed to the post of First Deputy Minister of Finance. In October 2003, Mr. AL-JEBOURI took up the position of Chief Financial Officer of LITASCO SA. and in June 2005 he was appointed Chief Executive Officer of the Company.

In February 2010, Mr. Gati Al-Jebouri took up the position of Executive Director of LUKOIL MID-EAST Ltd., which is the Operator of West Qurna (Phase II) (Iraq), and in 2012 was appointed Senior Vice President of LUKOIL Overseas Service B.V.

 

Interview with Mr Shawki Al-Khalisi, Head of Studies, Arab Petroleum Training Institute, OAPEC, Ministry of Oil, Federal Government of Iraq

Ahead of the 11th edition of the Iraq Petroleum Conference in May, the CWC Group Director Nawar Abdulhadi interviews one of the key speakers of this year’s event, Mr Shawki Al-Khalisi, Head of Studies, Arab Petroleum Training Institute, OAPEC, Ministry of Oil, Federal Government of Iraq. Mr Al-Khalisi shares with us his views on the current state of the Iraqi oil and gas industry, the challenges, innovations and the outlook for the industry’s future.

 

Nawar Abdulhadi: Why is Iraq such an important market for the global oil and gas industry?

Shawki Al-Khalisi: Iraq is number five, globally, in conventional petroleum reserves and could rank even higher if the untapped areas are fully explored. Moreover average production cost in Iraq is one of the lowest, if not the lowest, in the world. The vast potential and the low production cost place Iraq among the most attractive areas for IOCs.

 

Nawar Abdulhadi: How does the Government of Iraq and the oil and gas industry work together to drive innovation?

Shawki Al-Khalisi: Iraq has embarked on an ambitious plan to raise its production capacity by signing service contracts with several, well-experienced IOCs to revive and enhance productions in a number of operating fields that were showing clear decline. The measures required to achieve this goal depend on the nature and history of each individual field which constitute a diversity of challenges. These challenges require concerted efforts by the joint Iraqi- IOCs management and call for, in some unique cases, coming up with novel ideas and new techniques that eventually lead to driving innovation in the industry.

 

Nawar Abdulhadi: As a refinery expert, what do you consider to be Iraq’s downstream challenges? And what could be the solutions?

Shawki Al-Khalisi: Iraq’s downstream sector has gone through dire circumstances in the previous decades and it badly needs reconstruction, modernizing and capacity building. The challenges are basically the lack of funds allocated by the central government due to budget constraints and the halfhearted resolve to address the problem.  All efforts to lure investors to invest in the sector have been, with few exceptions, futile.

The solutions lie in a more serious government resolve as well as in exploring new avenues to secure investment in the sector such as revising incentives, sharing security risks collaterally, joint venture arrangements, and bilateral agreements with major Iraqi crude oil importing countries and upstream/downstream integrated contracts.

 

Nawar Abdulhadi: What is the role of the Arab Petroleum Training Institute in enhancing projects performance and research?

Shawki Al-Khalisi: The role of the Arab Petroleum Training Institute is basically to help in human resources development so that ranks and specialties can take part individually or collectively in the betterment of the efficiency and performance of the establishment where they work. The institute also takes part in petroleum related techno-economics studies on its own or in collaboration with others.

Iraqi and IOCs personnel are engaged in the day-to-day operations such as wells work-over, the recently introduced in Iraq, horizontal drilling and many other activities. These activities are backed by field oriented studies and research that help customize the available off-the-shelf know-how and facilitate its effective implementation for the specific requirement. They further contribute to updating the know-how and to inciting ingenuity and creativity within the working groups involved.

 

Nawar Abdulhadi: What is your main interest at the Iraq Petroleum 2017 Conference?

Shawki Al-Khalisi: I consider the conference as a distinguished forum for the encounter for industry specialists, investors, vendors, contractors and oil companies, both Iraqis and non-Iraqis, to meet and get acquainted with the latest activities and plans related to the petroleum industry in Iraq.

The conference is of great interest to me as it is a valuable opportunity to have a first-hand update not only on the activities of the Ministry of Oil but also on the related activities of other Ministries of the Federal Government.

 

Nawar Abdulhadi: What is the outlook of Iraq as a global player in the oil and gas market?

Shawki Al-Khalisi: The share of oil in the energy demand market is expected to drop in the next few decades in favor of gas and the renewables. Notwithstanding, oil consumption will rise in absolute terms as a result of the global population growth and the rise in the standard of living in most developing countries.

With its ample reserves and low production cost, Iraq can actively take part in meeting the generated extra demand with its low cost oil and strengthen its position as a major player in the oil market. Iraq also started to make strides to exploit its free gas reserves. This drive can eventually realize self-sufficiency in meeting local demand and may also allow Iraq to play a certain role in the international gas trade.

 

Mr Shawki Al-Khalisi will be speaking at Iraq Petroleum on 23rd May 2017 during Session 3: Iraq’s Oil & Gas Infrastructure Development Projects: Cooperation, Innovation & Investment.

 


About Mr Shawki Al-Khalisi

Mr Al-Khalisi is head of studies in the Arab Petroleum Training Institute of the Organization of the Arab Petroleum Exporting Countries OAPEC and a private consultant on the Iraqi oil sector. Prior to this he was a senior consultant at the Iraqi oil ministry. He has been involved in several high-profile committees, including the Iraqi oil sector strategic planning committee and the transfer of technology in the energy sector committee.

Mr Al-Khalisi has also worked in the organization of the petroleum exporting countries OPEC in Vienna, where he was involved in crude oil evaluation and refining studies.

 

About the Arab Petroleum Training Institute, OAPEC
APTI was established in Baghdad, Iraq, in May 1978, to prepare instructors qualified to provide training in the many technical aspects of the oil industry, and to augment the administrative and technical personnel responsible for the different fields of the industry. The other objectives of APTI include performing research and conducting studies related to the modern techniques of industrial organization, and the methodology and techniques of training and education, as well as the creation of a central information and documentation system.

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