9th Jun 2015 11:21
LONDON (Alliance News) - UK Energy Secretary Andrea Leadsom Tuesday said the UK aims to be Iraq's "partner of choice" to help grow oil production in the Middle Eastern country to help meet energy demand and boost British business involvement.
Speaking at the Iraqi Petroleum Conference 2015, Leadsom said energy security was a priority for the UK government, especially since tensions in Russia and Ukraine began, and said she will boost British business involvement in Iraq to help the country grow oil production.
Citing the International Energy Agency, Leadsom said global oil demand will grow by 14 million barrels a day to reach a total of 104 million barrels a day by 2040, adding that Iraq can meet "the highest proportion" of that expected growth than any other country in the world.
"Because of this huge potential Iraq remains strategically, economically and practically at the centre of any conversation we have about global energy security," said Leadsom. "This makes it more vital than ever that we continue to focus on investment and the future health of Iraq?s energy sector which will help to deliver prosperity for Iraq as a whole."
"The UK is highly ambitious ? we want to be Iraq?s 'partner of choice', we are committed to working with you to make this happen. Our biggest energy companies have already committed billions of dollars to Iraq, both in terms of investment and in the provision of technical expertise," she added.
Leadsom noted that British giants such as BP PLC and Royal Dutch Shell PLC have been operating in Iraq for years, highlighting BP's operation of "one of the world's largest fields" in southern Iraq and Shell's recent deal to build an USD11.0 billion petrochemical plant in Basra, which will be "one of the largest in the world", the minister said in a statement.
"Many other British companies also operate across Iraq in all parts of the energy sector, from production to engineering and the supporting supply chains," said Leadsom.
In order to support more British involvement within Iraq's oil and gas industry, Leadsom said UK Trade and Investment have created a programme of strategic engagement with BP, Shell and the leading engineering, procurement and construction contractors to help smaller UK companies make the most of the opportunities available and provide the skills and services Iraq needs.
"For example we have run a 'share fair' with BP to introduce more UK companies to the procurement chain associated with the Rumaila project," said Leadsom.
The UK government is also helping smaller companies engage with the larger players in the field such as BP and Shell.
"I am proud of the role that British businesses are playing and commend the contribution of all our firms involved. So to reiterate, my aim is for the UK to be Iraq?s primary partner of choice in energy," said Leadsom.
"The UK plans to continue our support as Iraq takes these transformational steps. Tackling Iraq?s challenges, from the fall in oil prices to regional events, is important to us all," she added.
By Joshua Warner; [email protected]; @JoshAlliance
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