London-A projected US$ 35-40 billion is up for grabs as contractors vie to participate in rebuilding the Iraqi oil sector. According to a BBC report, service and technology providers are expected to be the biggest beneficiaries of this exercise.
OGS 2005, the premier Arab Oil and Gas Show which is to be held from November 7 to 9, 2005, at the Dubai International Exhibition Centre, is expected to be an important link between cutting-edge technology providers and investors in Iraq’s resurgent Oil & Gas sector. In the 12th edition of its showing, OGS will provide companies with a platform to network and discuss business prospects, innovation and issues related to exploration, extraction, processing, storage, transportation and security in the oil and gas industry.
“With investment in Oil & Gas infrastructure growing exponentially all across the GCC region, investors are increasingly on the look-out for technologies and services that provide the optimum combination of high return on investment and competitive edge in a dynamic global market-place. OGS, as a forum, has created a niche where industry leaders can be assured of hands-on inspection of newly launched technologies and services,” said Anselm Godinho, Managing Director, International Conferences & Exhibitions (IC&E).
The show bears tremendous importance to the region as the Gulf’s economy is largely driven by reserves of oil and natural gas. Saudi Arabia, according to independent research, has one-fourth of the world’s proven oil reserves and has agreed to support OPEC’s ceiling hike by 500,000 barrels per day. Iran has ten percent of the world’s proven oil reserves and the second largest natural gas reserves after Russia, whilst Qatar has the third largest natural gas reserves. At crossroads between the East and West, the UAE has over 97 billion barrels of oil and is the ideal location for such an exhibition.
Iraq, on the other hand, is estimated to possess 115 billion barrels of proven oil reserves and an estimated 110 trillion cubic feet of natural gas, which is ten percent of the world’s known reserves. As independent research has shown, one of the top oil rich countries, Iraq was producing 3.7 million barrels of oil per day in 1979 and 3.5 million barrels per day in 1999. These capacities declined abruptly to 1.5 million barrels per day in 2002 due to the recent political crisis.
By 2003, Iraq’s weekly oil production dropped by 75 percent as the NYMEX near month crude oil price rose by 6.5 percent. The circumstance required immediate action and companies jumped in to initiate the rebuild.
Funds in excess of US$ 1 billion have been dispensed on reviving the oil sector in Iraq. The potential of the Iraq industry and the scale of projects to be implemented opens the door to companies in oil and gas related fields.
At OGS 2005, Oil & Gas majors such as Aramco (Arabian American Oil Company) and IOEC (Iranian Offshore Engineering and Construction Company) will be at hand to enhance the networking and business potential for exhibitors showcasing technology and services. The show will also see a dedicated section showcasing automation and instrumentation for the industry.