KBR's Journey in Iraq: From Serving Meals to Strategic Project Assessment

Introduction:

I’ve always heard about KBR—a company known for serving meals to troops and developing oil fields in Basrah. But then, I stumbled upon a headline from July 25, 2024, that made me do a double-take. KBR digitizing government reports? Doing strategic project assessments and feasibility studies? Enhancing the Iraqi Development Fund (IDF)? Seriously? Naturally, my curiosity got the best of me. I had to dig deeper to understand how a company that started with serving meals ended up shaping Iraq’s future.

Supporting U.S. Military Operations

From 2003, KBR worked in supporting U.S. military operations. During this period, KBR served 32 million meals, produced 490 million gallons of water, and managed various facilities for military personnel's daily functioning and morale.

Restore Iraqi Oil (RIO)

During the same period, under the Restore Iraqi Oil (RIO) contract, KBR repaired and restored damaged oil facilities and pipelines. Despite their achievements, the RIO contract faced scrutiny due to allegations of overbilling and fraud, as well as controversy over its no-bid nature and connections to former Vice President Dick Cheney, previously CEO of Halliburton, KBR's parent company. These activities laid the groundwork for KBR's long-term presence in Iraq, showcasing their capability in large-scale logistical and infrastructure projects, setting the stage for their subsequent involvement in the Majnoon Oil Field contract starting in 2018.

Majnoon Oil Field

From 2018 onwards, KBR focused on developing the Majnoon Oil Field in Basra, Iraq. Their activities have gradually expanded over the years. In May 2018, KBR was awarded a contract by Basra Oil Company (BOC) for the management and development of the Majnoon Oil Field. This contract, initially set for two years with an option to extend, included providing engineering, procurement, construction, and management (EPCM) services. The combined contracts with KBR and Anton Oilfield Services Group for operating and maintaining the Majnoon Oil Field were valued at $118 million. Plans included increasing the oil field’s capacity by an additional 200,000 barrels per day, requiring the development of new wells and facilities such as a Central Processing Facility (CPF), Sour Gas Treatment Plant, and Central Power Plant. KBR performed the Front-End Engineering Design (FEED). On the 4th of June 2024, the Council of Ministers decided to increase the cost of the (EPCM) BOC-1540 contract with KBR regarding the production and development of the Majnoon oil field/Basra Oil Company. KBR’s operations in the Majnoon Oil Field from 2018 to the present have progressively expanded.

Development of Oil and Gas Production

During the Iraqi PM's visit to the USA, a major turn in this relationship appeared. On the 18th of April 2024, the PM announced that the GOI had signed many MoUs with some USA companies, including two with KBR in the development of oil fields and processing raw gas and associated gas, which were also raised the next day.

Energy Development and Partnership with Local Private Sector

In a meeting in Houston between the PM and KBR, for the first time, there was talk about partnering with the Iraqi private sector in energy development. This marked a wider cooperation.

Petrochemicals Project and Ammonia Production

In the main meeting, KBR expressed interest in ammonia production and a new Iraqi petrochemicals project. This was in the same context as a new partnership with the Ministry of Oil.

The Update of the Integrated National Energy Strategy

Later on, the PM ordered the urgent update of the Integrated National Energy Strategy in consultation with KBR, described in the statement for the first time as the consultant for the Ministry of Planning. This marked a new era of KBR's contribution, focusing on important governmental strategy writing.

Participating in Integrated Energy Projects within Investment Formulas

On the 16th of May 2024, the PM met again with a KBR delegation in Baghdad. The statement mentioned KBR's contribution to oil field development, including the utilization of associated gas. The PM raised the possibility of KBR participating in integrated energy projects and investment formulas, indicating that the collaboration with KBR could be a window of investment opportunities in energy projects with foreign and internal private sector companies.

Fertilizer Projects

In addition to petrochemical projects, fertilizer projects were also mentioned as one of the important industries that the GOI wants to improve in Iraq.

Supporting Iraq’s Infrastructure and Energy Ambitions

On the 18th of June 2024, KBR announced that it had been awarded a five-year contract worth $46 million to support Iraq’s infrastructure and energy ambitions. The contract involves providing advisory and consultancy services to the Iraqi Government’s Ministry of Planning. Focus areas include economic planning, strategy development, feasibility studies, technical reviews, and large-scale project management. This will be managed by establishing an operational office in Baghdad and potentially building an engineering design center to expand KBR's footprint in Iraq.

This is a significant contribution, and as an expert in governmental hierarchy within the administrative body in the GOI, I can describe this as a limitless contribution. This was proven on the 25th of July, when a meeting between KBR and the PM in Baghdad discussed KBR's technical, financial, economic, legal, and trade consultation tasks, including project assessment, feasibility studies, and supervising implementation. Several strategic governmental projects were assigned to KBR for study.

New Trends in KBR's Involvement

The new trends in KBR's involvement in Iraq include digitization of governmental reports and data storage and recovery. The next body of the GOI under supervision to improve work is the Iraqi Development Fund (IDF). Key focus areas include simplification of reports and processes, attracting foreign investment, increasing public-private sector partnerships, and identifying funding options for major projects. For those unfamiliar with the Iraqi Development Fund, please visit its website at fundiraq.com. I will explore its activities further in the future.

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