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Iraqi losses

What a fact. Iraq as a one of the pioneers in the Oil industry find it self as the big loser now?

Nothing new if we listed main causes of Iraqi bad situation in oil industry during the last 3 decades. but the most important abnormal wave in those losses is that related to the total losses of the Iraqi economy in the oil sector have reached about US$493 billions. during the period from 2003 and 2011?Such a shock declared by Expert Nizar Haider of the Research Section in the US DTI Company for Energy Affairs in a study he prepared. copy of which was received by Aswat al-Iraq news agency which published a story about it early last month.

The losses were due to the hampering or postponement of projects. bad administration and planning. along with the loss of 8.5 million possible e -ployment chances that could have raised the annual income-per-capita from US$3.500 TO US$18.000 per annum..Always. due to the Iraq Expert. five years have been wasted before )Prime Minister( Nouri al-Malikis government had reached the necessary step to achieve the necessary step to move the wheel of oil production to register an average production between 3.1 million barrels per day )bpd( in 2011 to 3.7 million bpd by 2012. But those five years were too much if we know the estimated Iraqs financial losses. caused by the delay of oil production projects by US$227 billions )b( between 2006-2011. and US#538 billions )b( between 2012-2016. in the event of keeping the oil prices on an average of 80 dollars per barrel. Also there were Iraqs economic losses. caused by the delay of natural gas projects is estimated to be US$52.9 billions )b( between 2006 and 2011. and US$147 billions )b( between 2012 and 2016.Unfortunately estimated Iraqs total losses. started and caused by the waste of chances and postponement of projects had reached to US$5.3 trillions )t(. making them close to Iraqs economic losses due to wars it was involved in during Saddam Husseins regime. that reached US$7.8 trillions )t(.Facing a list of big losses. must lead to an extraordinary kind of work to compensate the chances that were our country lost. may be an extraordinary vision before the similar kind of work.

We think that the vision must be achieved in fast and strong steps: As Iraq was a place of clashes between powers. national and international during the last 3 decades. it must be a place of dialogue between them. and nothing can do that as the economic relations. and nothing economic power in Iraq now as Petroleum. so sharing that power will not save Iraq just from its most crit -cal situation: Security and political. but also to achieve strong base to start after decades of Tragedies. remembering here the South Korean example which is introduce the economy as a way to solve political problems. But the most important questions is: Are we have such a vision?

Ali Abdulameer Ejam

2011 ) ( 97

ranean Sea. The Basra north-south pipeline was followed by a pipeline from Basra through Saudi Arabia terminating at Al Muajjiz Terminal on the Red Sea. This pipeline was built in the mid-eighties as a joint endeavor with Saudi Arabia and became known as the Iraqi Pipeline through Saudi Arabia )IPSA(. The pipeline was an advanced and mo -itored petroleum system from IPSA pumping station #2 to the exporting terminal at Al Muajjiz port. At pre -ent there are 5 obtainable terminals to export Basra oil to world markets and only two. the Basra and Alam -ya terminals are actually operational in the Arabian Gulf. South Oil Company occupies the first rank in the oil recovery potential in Iraq. Its authority extends over a wide region extending to thousands square kilometers which is greater than one third of the whole area of Iraq. The companys responsibi -ity and activities include utilities of crude oil production. gas utilization and water injection. Moreover the company manages many oil fields containing a remarkable number producing wells as well as a remar -able number of water injection wells that support the reservoir pressure. The main oil and gas flow lines are dispersed and stretched for tho -sands of kilometers. while there are 3 exporting terminals on The Gulf and The Mediterranean Sea. Co -siderable permanent number of manpower along with a number of temporarily assigned people which is about 15 thousands. Right after the termination of mil -tary operations of the 2003 war. SOC suffered severely from damage. va -dalism and looting with between 20-100% of their facilities and i -frastructure affected. The result was that SOC reached zero production level. SOC fields and exporting te -minals along with the headquarters. stations. warehouses. workshops.

vehicles. communication centers and residential areas. etc. also e -countered burglaries and looting that adversely affected the co -panys activities. Among the factors contributing to the companys mi -fortune was:

The absence of security and saf -ty.

The lack of cash and financial su -port.

Intense aggressive attacks on oil wells and the company utilities a -companied with burglaries of tools. equipment. requirements and oil quantities.

remarkable number of water inje -tion wells that support the reservoir pressure. The main oil and gas flow lines are dispersed and stretched for thousands of kilometers. while there are 3 exporting terminals on The Gulf and The Mediterranean Sea. Considerable permanent number of manpower along with a number of temporarily assigned people which is about 15 thousands.

Burning of the majority of the company divisions.

Dispersal of the company staff and the absence from work of e -ployees.

Coexistence of foreign emplo -ment in the companys production stations that came along with the multinational forces.

After the 2003 war SOC began an unparalleled effort to return to its prominent position among inte -national petroleum companies. Building a prosperous Iraq at the dawn of a new era depending on production from high reserves that are subsistent in the companys g -ant fields and the development of others which have passed through a

long period of neglect.SOCs endeavor is to focus on d -veloping all its fields both the di -covered developed and discovered undeveloped through optimizing the total efforts by stimulating the national option and facilitating the work of international oil companies relying on the strict application of the three oil and gas bid rounds run by the ministry. Likewise. the company will conti -ue to develop the oil recovery in the present productive reservoirs with the goal of exceeding an oil produ -tion capacity and a gas utilization rate reaching the planned amount extending the current rates. Within next ten years thousands of wells will be drilled . water injection wells. surface and gas utilities will be increased and developed accomp -nied with modern technologies in horizontal drilling . gas lift. electrical submersible pumps. maintenance. quality control. logging. simul -tion in reservoir domination . ele -tronic management . information and communication technology. electricity systems. financial and administrative departments. stoc -ing and warehousing . safety and security. firefighting and ecological protection. Thereafter. the company vision i -cludes an intensive interest in e -ployee development in all aspects such as training and qualifying. providing convenient housing and medical care. water and electricity supply. building hospitals and clinic centers. schools and shopping facil -ties.Moreover. SOC endeavors to i -prove work environment and co -ditions as well as providing high standards health services. Overcoming the difficulties and bottlenecksThe countrys Development d -mands are still focusing on the r -covery potential of the oil industry

Historical Episodes and >Ambitions

During the thirties of former ce -tury. international petroleum co -panies started exploration in the Gulf area. Since then and till today the whole world has become d -pendent on the non-renewable e -ergy resources of this area. oil and

natural gas. Moreover. the people of this crucial area rely mainly on petroleum revenues. South Oil Company is one of the largest petroleum companies in the Middle East. Its large number of oil fields has a huge oil reserve capa -ity. SOCs main headquarters is located in Basra city. Its authority extends many governorates in south of Iraq. Crude oil production began in the late 1940s in Zubair Field. south- east of Basra city. followed by the giant South Rumaila Field in the early fifties. The current available number of fields have been e -plored and scheduled for develo -ment after a lag which lasted more than two decades due to the policy of the former regime.The exportation of Basra oil began in the late forties through the Fao exporting terminal at the mouth of the Shat Al Arab River. Production continued and rapid growth d -manded the construction of the A -amaya Creek Petroleum Terminal )Khawr Alamaya( in the early si -ties and later the Basra Petroleum Terminal. in the mid-seventies. built close to Khawr Alamya Terminal in the shape of an artificial island in the north of the Gulf.The southern oil fields were co -nected to the northern fields by a strategic pipeline making it possible to export Basra oil to the Ceyhan and Baniyas ports on the Medite -Mustafa A. Almaleki * **

Mustafa A. Almaleki

96 -

ranean Sea. The Basra north-south pipeline was followed by a pipeline from Basra through Saudi Arabia terminating at Al Muajjiz Terminal on the Red Sea. This pipeline was built in the mid-eighties as a joint endeavor with Saudi Arabia and became known as the Iraqi Pipeline through Saudi Arabia )IPSA(. The pipeline was an advanced and mo -itored petroleum system from IPSA pumping station #2 to the exporting terminal at Al Muajjiz port. At pre -ent there are 5 obtainable terminals to export Basra oil to world markets and only two. the Basra and Alam -ya terminals are actually operational in the Arabian Gulf. South Oil Company occupies the first rank in the oil recovery potential in Iraq. Its authority extends over a wide region extending to thousands square kilometers which is greater than one third of the whole area of Iraq. The companys responsibi -ity and activities include utilities of crude oil production. gas utilization and water injection. Moreover the company manages many oil fields containing a remarkable number producing wells as well as a remar -able number of water injection wells that support the reservoir pressure. The main oil and gas flow lines are dispersed and stretched for tho -sands of kilometers. while there are 3 exporting terminals on The Gulf and The Mediterranean Sea. Co -siderable permanent number of manpower along with a number of temporarily assigned people which is about 15 thousands. Right after the termination of mil -tary operations of the 2003 war. SOC suffered severely from damage. va -dalism and looting with between 20-100% of their facilities and i -frastructure affected. The result was that SOC reached zero production level. SOC fields and exporting te -minals along with the headquarters. stations. warehouses. workshops.

vehicles. communication centers and residential areas. etc. also e -countered burglaries and looting that adversely affected the co -panys activities. Among the factors contributing to the companys mi -fortune was:

The absence of security and saf -ty.

The lack of cash and financial su -port.

Intense aggressive attacks on oil wells and the company utilities a -companied with burglaries of tools. equipment. requirements and oil quantities.

remarkable number of water inje -tion wells that support the reservoir pressure. The main oil and gas flow lines are dispersed and stretched for thousands of kilometers. while there are 3 exporting terminals on The Gulf and The Mediterranean Sea. Considerable permanent number of manpower along with a number of temporarily assigned people which is about 15 thousands.

Burning of the majority of the company divisions.

Dispersal of the company staff and the absence from work of e -ployees.

Coexistence of foreign emplo -ment in the companys production stations that came along with the multinational forces.

After the 2003 war SOC began an unparalleled effort to return to its prominent position among inte -national petroleum companies. Building a prosperous Iraq at the dawn of a new era depending on production from high reserves that are subsistent in the companys g -ant fields and the development of others which have passed through a

long period of neglect.SOCs endeavor is to focus on d -veloping all its fields both the di -covered developed and discovered undeveloped through optimizing the total efforts by stimulating the national option and facilitating the work of international oil companies relying on the strict application of the three oil and gas bid rounds run by the ministry. Likewise. the company will conti -ue to develop the oil recovery in the present productive reservoirs with the goal of exceeding an oil produ -tion capacity and a gas utilization rate reaching the planned amount extending the current rates. Within next ten years thousands of wells will be drilled . water injection wells. surface and gas utilities will be increased and developed accomp -nied with modern technologies in horizontal drilling . gas lift. electrical submersible pumps. maintenance. quality control. logging. simul -tion in reservoir domination . ele -tronic management . information and communication technology. electricity systems. financial and administrative departments. stoc -ing and warehousing . safety and security. firefighting and ecological protection. Thereafter. the company vision i -cludes an intensive interest in e -ployee development in all aspects such as training and qualifying. providing convenient housing and medical care. water and electricity supply. building hospitals and clinic centers. schools and shopping facil -ties.Moreover. SOC endeavors to i -prove work environment and co -ditions as well as providing high standards health services. Overcoming the difficulties and bottlenecksThe countrys Development d -mands are still focusing on the r -covery potential of the oil industry

Historical Episodes and >Ambitions

During the thirties of former ce -tury. international petroleum co -panies started exploration in the Gulf area. Since then and till today the whole world has become d -pendent on the non-renewable e -ergy resources of this area. oil and

natural gas. Moreover. the people of this crucial area rely mainly on petroleum revenues. South Oil Company is one of the largest petroleum companies in the Middle East. Its large number of oil fields has a huge oil reserve capa -ity. SOCs main headquarters is located in Basra city. Its authority extends many governorates in south of Iraq. Crude oil production began in the late 1940s in Zubair Field. south- east of Basra city. followed by the giant South Rumaila Field in the early fifties. The current available number of fields have been e -plored and scheduled for develo -ment after a lag which lasted more than two decades due to the policy of the former regime.The exportation of Basra oil began in the late forties through the Fao exporting terminal at the mouth of the Shat Al Arab River. Production continued and rapid growth d -manded the construction of the A -amaya Creek Petroleum Terminal )Khawr Alamaya( in the early si -ties and later the Basra Petroleum Terminal. in the mid-seventies. built close to Khawr Alamya Terminal in the shape of an artificial island in the north of the Gulf.The southern oil fields were co -nected to the northern fields by a strategic pipeline making it possible to export Basra oil to the Ceyhan and Baniyas ports on the Medite -Mustafa A. Almaleki * **

2011 ) ( 95

to a joint plan prepared in advance to benefit from the )golden spots( of any field that can maximize the recovery potential then paying the attention to the next options when finding it applicable to reach the designed objectives of the rehabilit -tion and redevelopment plans.The well understood perspective of enhancing and earlier improvement stages of field productivity focuses on a water flooding system which considers the reservoir status and the lithological characteristics of the reservoir in order to avoid any damage especially with the carbo -ate productive formations but to put on the other hand the plans to install hundreds of ESPs as wor -over activity which currently pr -ferred by most of the international companies.The installation of the modified su -face utilities will help in separating different kinds of fluids even if there is huge amount of produced assoc -ated water that might be benefited from later in the water reinjection to the same field or the neighboring fields in order to solve the expected shortage due to the poverty of water supply within the next years. SOCs endeavor puts into the a -count that the currently used sta -dards should be dependent on the API and ISO rules and regulations so it works harder to meet with them through its different formations and divisions but the steps need more focus on the strict execution and implementation by commencing paying the attention to that issue especially through the Training & Development Department in SOC by sending delegates to practice and procure experiences by holding courses abroad and inside Iraq but we recommend to let the intern -tional petroleum companies unde -take the concentration on building up a system of international reliant regulations to educate and teach the

staff of the FODs to adhere to.SOC as a major and giant petroleum establishment strives seriously to achieve the relevant ministerial laws and decrees to the auctions literally abiding by its instructions to co -prehensively cooperating and stric -ly committed to procure the latest practices and techniques through a quite new inimitable system that never used in the past because of the eras of seclusion.Hence. urgent actions and non-bureaucratic method of administr -tion will speed up the operations and bring the opportunities for the creative initiatives of many promi -ing people in SOC who can present their hard effort in the drafting of the new oil industry situation.SOC does its best to make the a -propriate relations with various l -cal activities in the governorate to ease the companies attempts to i -stall and building up the logistic f -cilities and headquarters in the area benefiting from as much as po -sible- the present legislation which is indeed needs more justifications to be coped with the required ec -nomic status after the expected su -cess of international companies in maximizing the returns on wealth as oil and gas production increase.

EpilogueSOC has a national responsibility to maximize the recovery production capacity both in the operations that directly belonging to its own power but supported by the international expertise- in particularly assigned fields and executing the allocated duties to bring success to the mi -istrys effort in maximizing the pr -duction through the international oil and gas bid rounds.

SOC attempts to procure the la -est international practices and tec -niques in both options so that it can create a new environment of fun -

tionality.

SOC overtook all the turmoil sta -es and succeeded in sustaining an a -ceptable level and rate of production contributed in reducing the harm and pains that Iraqi People suffered severely from.

SOC has the capability to renew itself as it possesses a rich legacy of facing difficulties and getting safe in spite of the damage and casualties.

SOC calls for a joint endeavor of development and improvement with the international oil companies based on the international standards of contract holding.

SOC is committed to the cu -rently operative national system of legislation and fiscal terms wor -ing together with the ministry to overcome the difficulties in order to facilitate a proper environment for legislative and economic conditions in its operation and work areas.

SOC insists on abiding by the rules and regulations of the API and ISO as that is a way to make the big desired changes.

The distinct and comprehensive making of rehabilitation plans for brown )discovered developed( fields will create new facts on the field attitude while the successful co -mencement with the green fields )discovered undeveloped( demands the infusing of the prevailing inte -national operation standards and values to avoid any failure that might face this kind of endeavor if insis -ing on the old style methods of the seventies and eighties that became a heavy burden on the industry.

* Petroleum Researcher ** mustafalmaleki@yahoo.com

to obey the requests of the society to rebuild and rehabilitate the di -ferent axes of society which have been damaged and corrupted due to the behavior and policies of the former regime. Thus. oil is so far the only alternative that no one can discard.Hundreds of nonproductive wells caused a decline in the oil produ -tion capacity due to the decrease in reservoir pressure. The precedence of water front at the expense of oil in many wells which obstructed the workover processes.A remarkable figure of the total number of productive wells experienced a no -production status in many fields of the company. This represents wells that affect negatively the recovery status unless taking dec -sive measures to stop this dropping through pro -erly provision of reservoir support and immediate commencement to drill additional wells along with supporting well-studied plans for water injection operations in order to speeding up the appropr -ate and immediate actions to operate this concern to many assigned fields. The proper usage of the latest technologies and oil practices by procuring equipment and foreign expertise to industry by the currently available two options which must work jointly those are: firstly. the national effort to co -mence an intensive campaign to remedy the companys current bottlenecks and extend the drilling path as well as activating the other options such as rigless and subserv -ent activities. Secondly. going ahead dependably with the three ministry auctions to procure the global effort searching for the suitable solutions

to the deep- seated problems and troubles of the latest three decades.South Oil Company as a giant deep-rooted establishment has a rich le -acy of experience and perspectives in dealing with the expected cons -quences of decisions and measures taken due to a historical balance of accumulated experience which led to the reliance on the openness to the international solutions putting into the consideration that any kind of such openness does not neglect

The installation of the modified surface utilities will help in se -arating different kinds of fluids even if there is huge amount of produced associated water that might be benefited from later in the water reinjection to the same field or the neighboring fields in order to solve the expected shor -age due to the poverty of water supply within the next years.

the prevailing national capabilities of the Iraqi staff that can meet with the latest oil practices procured by international participation of e -cient petroleum firms.

Recovery Potential EscalationSOC is aiming at reaching remar -able. characteristic and quantum leap to overtake its status of tr -ditional methods and techniques that SOC used to have during the previous period into revolutionary actions in all the relevant aspects remarking an inimitable campaign based on the ministrys endeavor to benefit from the execution of the oil

and gas bid rounds. That endeavor cut a good way toward its objectives but it still has some constraints that might impede some of those obje -tives but the ministry has provided all the capabilities and facilities in order to ease the procedure which is really needs particular actions to implement the scheduled endeavor of the ministry relying on regul -tions and a system of laws issued through the Technical Service Co -tracts TSC drawn with a group of

companies currently hol -ing the operations in some of SOCs fields.Of the things that are e -sential to be taken into the consideration is dealing with a reliable rehabilit -tion plan to improve and develop any field. the sc -entifically handling of the current bottlenecks and finding the short term and immediate remedy to stop any retardation or collapse that any field is presently experiencing provided that no side effects and harmful consequences the field might face in the near or far future. The appraisal activities which include more drilling effort to o -

tain specific data and information based on the latest technological methods along with the 3-D Sei -mic Acquisition Survey to extract and create more updated image to the field so that the estimated r -serve figure might reach better e -couraging credibility. The build-up of the statistical )geological( model as well as the dynamic )reservoir( model relying on the latest so -ware available is a must to provide the guide that can serve properly the later operations taking into the account the priorities of choosing the reservoirs where operations might commence with according

94 -

to a joint plan prepared in advance to benefit from the )golden spots( of any field that can maximize the recovery potential then paying the attention to the next options when finding it applicable to reach the designed objectives of the rehabilit -tion and redevelopment plans.The well understood perspective of enhancing and earlier improvement stages of field productivity focuses on a water flooding system which considers the reservoir status and the lithological characteristics of the reservoir in order to avoid any damage especially with the carbo -ate productive formations but to put on the other hand the plans to install hundreds of ESPs as wor -over activity which currently pr -ferred by most of the international companies.The installation of the modified su -face utilities will help in separating different kinds of fluids even if there is huge amount of produced assoc -ated water that might be benefited from later in the water reinjection to the same field or the neighboring fields in order to solve the expected shortage due to the poverty of water supply within the next years. SOCs endeavor puts into the a -count that the currently used sta -dards should be dependent on the API and ISO rules and regulations so it works harder to meet with them through its different formations and divisions but the steps need more focus on the strict execution and implementation by commencing paying the attention to that issue especially through the Training & Development Department in SOC by sending delegates to practice and procure experiences by holding courses abroad and inside Iraq but we recommend to let the intern -tional petroleum companies unde -take the concentration on building up a system of international reliant regulations to educate and teach the

staff of the FODs to adhere to.SOC as a major and giant petroleum establishment strives seriously to achieve the relevant ministerial laws and decrees to the auctions literally abiding by its instructions to co -prehensively cooperating and stric -ly committed to procure the latest practices and techniques through a quite new inimitable system that never used in the past because of the eras of seclusion.Hence. urgent actions and non-bureaucratic method of administr -tion will speed up the operations and bring the opportunities for the creative initiatives of many promi -ing people in SOC who can present their hard effort in the drafting of the new oil industry situation.SOC does its best to make the a -propriate relations with various l -cal activities in the governorate to ease the companies attempts to i -stall and building up the logistic f -cilities and headquarters in the area benefiting from as much as po -sible- the present legislation which is indeed needs more justifications to be coped with the required ec -nomic status after the expected su -cess of international companies in maximizing the returns on wealth as oil and gas production increase.

EpilogueSOC has a national responsibility to maximize the recovery production capacity both in the operations that directly belonging to its own power but supported by the international expertise- in particularly assigned fields and executing the allocated duties to bring success to the mi -istrys effort in maximizing the pr -duction through the international oil and gas bid rounds.

SOC attempts to procure the la -est international practices and tec -niques in both options so that it can create a new environment of fun -

tionality.

SOC overtook all the turmoil sta -es and succeeded in sustaining an a -ceptable level and rate of production contributed in reducing the harm and pains that Iraqi People suffered severely from.

SOC has the capability to renew itself as it possesses a rich legacy of facing difficulties and getting safe in spite of the damage and casualties.

SOC calls for a joint endeavor of development and improvement with the international oil companies based on the international standards of contract holding.

SOC is committed to the cu -rently operative national system of legislation and fiscal terms wor -ing together with the ministry to overcome the difficulties in order to facilitate a proper environment for legislative and economic conditions in its operation and work areas.

SOC insists on abiding by the rules and regulations of the API and ISO as that is a way to make the big desired changes.

The distinct and comprehensive making of rehabilitation plans for brown )discovered developed( fields will create new facts on the field attitude while the successful co -mencement with the green fields )discovered undeveloped( demands the infusing of the prevailing inte -national operation standards and values to avoid any failure that might face this kind of endeavor if insis -ing on the old style methods of the seventies and eighties that became a heavy burden on the industry.

* Petroleum Researcher ** mustafalmaleki@yahoo.com

to obey the requests of the society to rebuild and rehabilitate the di -ferent axes of society which have been damaged and corrupted due to the behavior and policies of the former regime. Thus. oil is so far the only alternative that no one can discard.Hundreds of nonproductive wells caused a decline in the oil produ -tion capacity due to the decrease in reservoir pressure. The precedence of water front at the expense of oil in many wells which obstructed the workover processes.A remarkable figure of the total number of productive wells experienced a no -production status in many fields of the company. This represents wells that affect negatively the recovery status unless taking dec -sive measures to stop this dropping through pro -erly provision of reservoir support and immediate commencement to drill additional wells along with supporting well-studied plans for water injection operations in order to speeding up the appropr -ate and immediate actions to operate this concern to many assigned fields. The proper usage of the latest technologies and oil practices by procuring equipment and foreign expertise to industry by the currently available two options which must work jointly those are: firstly. the national effort to co -mence an intensive campaign to remedy the companys current bottlenecks and extend the drilling path as well as activating the other options such as rigless and subserv -ent activities. Secondly. going ahead dependably with the three ministry auctions to procure the global effort searching for the suitable solutions

to the deep- seated problems and troubles of the latest three decades.South Oil Company as a giant deep-rooted establishment has a rich le -acy of experience and perspectives in dealing with the expected cons -quences of decisions and measures taken due to a historical balance of accumulated experience which led to the reliance on the openness to the international solutions putting into the consideration that any kind of such openness does not neglect

The installation of the modified surface utilities will help in se -arating different kinds of fluids even if there is huge amount of produced associated water that might be benefited from later in the water reinjection to the same field or the neighboring fields in order to solve the expected shor -age due to the poverty of water supply within the next years.

the prevailing national capabilities of the Iraqi staff that can meet with the latest oil practices procured by international participation of e -cient petroleum firms.

Recovery Potential EscalationSOC is aiming at reaching remar -able. characteristic and quantum leap to overtake its status of tr -ditional methods and techniques that SOC used to have during the previous period into revolutionary actions in all the relevant aspects remarking an inimitable campaign based on the ministrys endeavor to benefit from the execution of the oil

and gas bid rounds. That endeavor cut a good way toward its objectives but it still has some constraints that might impede some of those obje -tives but the ministry has provided all the capabilities and facilities in order to ease the procedure which is really needs particular actions to implement the scheduled endeavor of the ministry relying on regul -tions and a system of laws issued through the Technical Service Co -tracts TSC drawn with a group of

companies currently hol -ing the operations in some of SOCs fields.Of the things that are e -sential to be taken into the consideration is dealing with a reliable rehabilit -tion plan to improve and develop any field. the sc -entifically handling of the current bottlenecks and finding the short term and immediate remedy to stop any retardation or collapse that any field is presently experiencing provided that no side effects and harmful consequences the field might face in the near or far future. The appraisal activities which include more drilling effort to o -

tain specific data and information based on the latest technological methods along with the 3-D Sei -mic Acquisition Survey to extract and create more updated image to the field so that the estimated r -serve figure might reach better e -couraging credibility. The build-up of the statistical )geological( model as well as the dynamic )reservoir( model relying on the latest so -ware available is a must to provide the guide that can serve properly the later operations taking into the account the priorities of choosing the reservoirs where operations might commence with according

2011 ) ( 93

Iraqs Deputy Premier for Energy. Hussein al-Shahrestani. laid the foundation stone for the new 1250 megawatt al-Khairat power station in Karbala. which will add about 20% to power production in Iraq if completed as scheduled in April 2013.Iraqi energy officials on Sunday marked the start of work on a 1.250 megawatt power plant with Turkeys Calik Enerji as the power-starved country seeks to boost its electricity output.The project is being undertaken by Turkish company Calik Enerji. which won the $445.5 million co -tract in October. The cost is to be repaid based on a deferred payment system as agreed with the Turkish government. Zahi Samit al-Dami. the chairman of the Karbala Provi -cial Councils power & fuel commi -tee. told Aswat al-Iraq news agency.The plant consists of 10 gas turbines. each producing 125 MW. giving 1.250 MW in total. The turbines are among 56 gas turbines the ministry purchased from General Electric in 2008. Sabeeh Qadu. general manager for gas projects in Iraqs Electricity Ministry. told Reuters.Today we are celebrating by putting in the foundation of building one of the biggest power generation plants in Iraq. Hussain al-Shahristani. the

deputy prime minister for energy. told reporters at the site where the plant will be built in Khairat. 30 km southeast of Kerbala.A Turkish official said Calik Enerji had so far completed a soil survey at the site. which currently employs 100 people. including engineers and technicians. Around 60 of the 100 employees are Turkish.Calik also won a $388.5 million contract in March to build a 750 KW power plant near Mosul in northern Iraq.A subsidiary of Calik Holdings. GAP Construction. will carry out a $195 million project rehabilitating a 19-kilometer expressway between Baghdad International Airport and the city center. as well as landsca -ing works on a plot with a total area of 1.6 million square meters.Indian Company to Build Power Station in WassitWassit local government has signed a memorandum of understanding with the Indian company BHEL )Bharat Heavy Electricals Limited( to build a 500 MW power station. according to a report from Aswat al-Iraq.Taha Rudaini. a member of the local governments Media Committee. told the news agency that the st -tion will be powered by diesel )black oil(.

The province got the final permi -sion from the Ministry of Electricity to build this station. he added.BHEL has reportedly implemented power stations in Sulaimaniyah. Baiji. Rumaila )Basra(. Oman. Y -men and UAE. in addition to its r -sponsibility of 70 electrical projects in the region.Turkeys Lanka Wins Nineveh Power ContractA Turkish company has been co -tracted to set up four new power stations in Nineveh province at an overall cost of $200 million [240 billion Iraqi dinars]. a provincial e -ergy official has announced.Muhammed Wadallah al-Jabbouri from the Nineveh directorate of e -ergy told AKnews that the Turkish firm Lanka has been given the task of supplying and installing the four 125 megawatt )MW( units in a bid to raise the generating capacity of the province for the summer season.

The company will begin setting up the units this week. Jabbouri said.

The four power generating units are in addition to a $267 million six-unit deal signed between the N -neveh energy directorate and Lanka in mid-February.

Work Starts at $450m Karbala Power Station

Mr Gates. U.S. Defense Secr -tary. recent visit to Iraq unde -lines Washin -tons uneasiness and frustration

with Baghdads indecisiveness and lack of strategic foresight in regards to the future of U.S.-Iraq postwar strategic partnership. namely. the future of U.S.-Iraq military coo -eration.Given the sacrifices endured by both countries. loss of lives and treasure. U.S. and Iraqi governments. two sovereign nations. ought to craft a clear and comprehensive postwar strategy that is capable of creating the conditions for a sustainable and successful partnership. However. before undertaking a such colo -sal and sensitive task. Washington and Baghdad ought to define the objectives of a such partnership )a -tainable and realistic(. stakeholders roles and responsibilities. and the needed resources. e.g.. training and equipping Iraqi Security Forces.Nonetheless. given the high levels of interoperability of the two mil -taries. the complete withdrawals of U.S. troops. including combat advisors. will undermine Iraqi S -curity Forces capabilities and. su -sequently. Iraqs national security. namely. air sovereignty and border security. Moreover. the ensuing security vacuum entails great risks and dire consequences:

Emboldening the quasi-dormant Sunni and Shiite extremist groups ) AQI. Baatists. Jaysh al-Islami. the

Promised Day Brigade. Kataib Hi -bollah. Jaysh al-Mehdi. etc(.

Precipitating the war between Baghdad and Kurdistan over oil-rich Kirkuk. given the ongoing te -ritorial tensions between the Arabs. Turkmen. and Kurds.

Disrupting Iraqs oil production and export and. subsequently. Iraqs revenues petrodollars.

Turning Iraq into a prime battl -ground for proxy wars. chiefly Saudi Vs. Iran.

Invigorating Irans centuries-old expansionist and religious amb -tions in Iraq turning Iraq into a satellite Shiite Islamic theocracy. Case in point: the nomination of Mr. Hassan Danaifar. a Baghdad native and Qods Force )IRGC sp -cial operations unit( veteran co -mander. as Iran Ambassador to Iraq underscores Irans vested interest in building and strengthening its military. political and religious i -fluence in Iraq and. consequently. expanding Irans sphere of infl -ence in the region beyond its trad -tional allies Syria and Hezbollah in Lebanon.Thus. to avoid the aforesaid grim scenario. the Iraqi government )executive and legislative bodies( ought to outline clearly its postwar policy objectives and priorities. in accordance with the country strategic interests. Nonetheless. the protracted political horse-trading over the security posts )defense. i -terior. and national security( is hi -dering communication channels

between U.S. officials and their Iraqi counterparts and. most importan -ly. jeopardizing Iraqs hard-earned security gains. Furthermore. given the recent upsurge in violence. the outcomes of such injudicious dec -sions could easily reignite Iraqs ethno-sectarian violence.Drawing on past experiences. namely. Germany. South Korea. and Japan. the scheduled complete wit -drawal of the U.S. combat troops from Iraq. by December 2011. pre -ents a unique opportunity to lay the foundation for a strong and sound postwar strategic partnership. that is Susceptible to preserve and foster Iraqs nascent democracy and. most importantly. prevent Iraq from r -verting to a military dictatorship. religious tyranny. or. worst. falling prey to Irans Mullacracy suicidal ambitions.Irrefutably. the success of a such momentous endeavor is contingent upon the genuine commitment and the political will of both Washin -ton and Baghdad. Simply put. The one who adapts his policy to the times prospers. and likewise that the one whose policy clashes with the demands of the times does not Niccolo Machiavelli.

*The opinions expressed here are those of the author. and do not ne -essarily reflect the views of Aswaq al-Iraq.**The author. Tariq Abdell. is an Iraqs political risk analyst. and Founder & CEO of Mesopotamia Insight

Postwar Iraq: Democracy or Theocracy?*

Tariq Abdell**

92 -

Iraqs Deputy Premier for Energy. Hussein al-Shahrestani. laid the foundation stone for the new 1250 megawatt al-Khairat power station in Karbala. which will add about 20% to power production in Iraq if completed as scheduled in April 2013.Iraqi energy officials on Sunday marked the start of work on a 1.250 megawatt power plant with Turkeys Calik Enerji as the power-starved country seeks to boost its electricity output.The project is being undertaken by Turkish company Calik Enerji. which won the $445.5 million co -tract in October. The cost is to be repaid based on a deferred payment system as agreed with the Turkish government. Zahi Samit al-Dami. the chairman of the Karbala Provi -cial Councils power & fuel commi -tee. told Aswat al-Iraq news agency.The plant consists of 10 gas turbines. each producing 125 MW. giving 1.250 MW in total. The turbines are among 56 gas turbines the ministry purchased from General Electric in 2008. Sabeeh Qadu. general manager for gas projects in Iraqs Electricity Ministry. told Reuters.Today we are celebrating by putting in the foundation of building one of the biggest power generation plants in Iraq. Hussain al-Shahristani. the

deputy prime minister for energy. told reporters at the site where the plant will be built in Khairat. 30 km southeast of Kerbala.A Turkish official said Calik Enerji had so far completed a soil survey at the site. which currently employs 100 people. including engineers and technicians. Around 60 of the 100 employees are Turkish.Calik also won a $388.5 million contract in March to build a 750 KW power plant near Mosul in northern Iraq.A subsidiary of Calik Holdings. GAP Construction. will carry out a $195 million project rehabilitating a 19-kilometer expressway between Baghdad International Airport and the city center. as well as landsca -ing works on a plot with a total area of 1.6 million square meters.Indian Company to Build Power Station in WassitWassit local government has signed a memorandum of understanding with the Indian company BHEL )Bharat Heavy Electricals Limited( to build a 500 MW power station. according to a report from Aswat al-Iraq.Taha Rudaini. a member of the local governments Media Committee. told the news agency that the st -tion will be powered by diesel )black oil(.

The province got the final permi -sion from the Ministry of Electricity to build this station. he added.BHEL has reportedly implemented power stations in Sulaimaniyah. Baiji. Rumaila )Basra(. Oman. Y -men and UAE. in addition to its r -sponsibility of 70 electrical projects in the region.Turkeys Lanka Wins Nineveh Power ContractA Turkish company has been co -tracted to set up four new power stations in Nineveh province at an overall cost of $200 million [240 billion Iraqi dinars]. a provincial e -ergy official has announced.Muhammed Wadallah al-Jabbouri from the Nineveh directorate of e -ergy told AKnews that the Turkish firm Lanka has been given the task of supplying and installing the four 125 megawatt )MW( units in a bid to raise the generating capacity of the province for the summer season.

The company will begin setting up the units this week. Jabbouri said.

The four power generating units are in addition to a $267 million six-unit deal signed between the N -neveh energy directorate and Lanka in mid-February.

Work Starts at $450m Karbala Power Station

Mr Gates. U.S. Defense Secr -tary. recent visit to Iraq unde -lines Washin -tons uneasiness and frustration

with Baghdads indecisiveness and lack of strategic foresight in regards to the future of U.S.-Iraq postwar strategic partnership. namely. the future of U.S.-Iraq military coo -eration.Given the sacrifices endured by both countries. loss of lives and treasure. U.S. and Iraqi governments. two sovereign nations. ought to craft a clear and comprehensive postwar strategy that is capable of creating the conditions for a sustainable and successful partnership. However. before undertaking a such colo -sal and sensitive task. Washington and Baghdad ought to define the objectives of a such partnership )a -tainable and realistic(. stakeholders roles and responsibilities. and the needed resources. e.g.. training and equipping Iraqi Security Forces.Nonetheless. given the high levels of interoperability of the two mil -taries. the complete withdrawals of U.S. troops. including combat advisors. will undermine Iraqi S -curity Forces capabilities and. su -sequently. Iraqs national security. namely. air sovereignty and border security. Moreover. the ensuing security vacuum entails great risks and dire consequences:

Emboldening the quasi-dormant Sunni and Shiite extremist groups ) AQI. Baatists. Jaysh al-Islami. the

Promised Day Brigade. Kataib Hi -bollah. Jaysh al-Mehdi. etc(.

Precipitating the war between Baghdad and Kurdistan over oil-rich Kirkuk. given the ongoing te -ritorial tensions between the Arabs. Turkmen. and Kurds.

Disrupting Iraqs oil production and export and. subsequently. Iraqs revenues petrodollars.

Turning Iraq into a prime battl -ground for proxy wars. chiefly Saudi Vs. Iran.

Invigorating Irans centuries-old expansionist and religious amb -tions in Iraq turning Iraq into a satellite Shiite Islamic theocracy. Case in point: the nomination of Mr. Hassan Danaifar. a Baghdad native and Qods Force )IRGC sp -cial operations unit( veteran co -mander. as Iran Ambassador to Iraq underscores Irans vested interest in building and strengthening its military. political and religious i -fluence in Iraq and. consequently. expanding Irans sphere of infl -ence in the region beyond its trad -tional allies Syria and Hezbollah in Lebanon.Thus. to avoid the aforesaid grim scenario. the Iraqi government )executive and legislative bodies( ought to outline clearly its postwar policy objectives and priorities. in accordance with the country strategic interests. Nonetheless. the protracted political horse-trading over the security posts )defense. i -terior. and national security( is hi -dering communication channels

between U.S. officials and their Iraqi counterparts and. most importan -ly. jeopardizing Iraqs hard-earned security gains. Furthermore. given the recent upsurge in violence. the outcomes of such injudicious dec -sions could easily reignite Iraqs ethno-sectarian violence.Drawing on past experiences. namely. Germany. South Korea. and Japan. the scheduled complete wit -drawal of the U.S. combat troops from Iraq. by December 2011. pre -ents a unique opportunity to lay the foundation for a strong and sound postwar strategic partnership. that is Susceptible to preserve and foster Iraqs nascent democracy and. most importantly. prevent Iraq from r -verting to a military dictatorship. religious tyranny. or. worst. falling prey to Irans Mullacracy suicidal ambitions.Irrefutably. the success of a such momentous endeavor is contingent upon the genuine commitment and the political will of both Washin -ton and Baghdad. Simply put. The one who adapts his policy to the times prospers. and likewise that the one whose policy clashes with the demands of the times does not Niccolo Machiavelli.

*The opinions expressed here are those of the author. and do not ne -essarily reflect the views of Aswaq al-Iraq.**The author. Tariq Abdell. is an Iraqs political risk analyst. and Founder & CEO of Mesopotamia Insight

Postwar Iraq: Democracy or Theocracy?*

Tariq Abdell**

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