Iraq: Oil production could drive equipment sales

Sara Johnson · March 31, 2011

Energy — By admin on March 31, 2011 at 11:43 am

Procurement consultant Jeremy Waller believes that the market Iraq has a lot of

potential and will be driven by oil production although incoming companies will

need “creative strategies”.

Waller predicts that higher oil prices mean that budgets are again available to

meet infrastructure plans in certain countries. With Iraq likely to expand

production significantly, Waller thinks that this will result in a “massive

inflow of funds”.

“Higher oil prices mean that Iraq is starting to feel relief from having short

term funding problems in meeting its need for infrastructure spend and

rebuilding,” said Waller in his Construction trends in the Middle East – Iraq

example is worth considering report. “It is dependent on maintaining the

current success of the major oil companies operating in the southern fields of

Manjoon and Rumailah.

“Western industrials should be looking hard at Iraq as an emerging market.

There is huge pent up demand for most industrial equipment in the short term

and massive consumerism in the longer term,” he said. “Unfortunately this is

occurring against a background of state owned companies, where accountability

is an issue, although the private sector is emerging strongly to assume a more

entrepreneurial role. Options now are emerging so that ambitious manufacturers

and service providers in the oil, water, power, sectors have real options.”

According to Waller, particular issues lie with product support, service and

training and need to be addressed as they represents a higher investment than

with other markets.“You cannot just fly training and support staff into Iraq

quite yet, but fortunately decades of surviving parts and equipment embargoes

mean that Iraqi engineers are exceptionally skilled at maintaining and

repairing plant and equipment, the oil fields in the south being a testimonial

to this.”

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