Representatives of global energy service giant Wood Group flew into Iraq yesterday as part of the first British business delegation in more than 20 years to the country.
Business Secretary Lord Mandelson led the one-day visit to both Baghdad and Basra.
Aberdeen-based Wood Group plus other big names from the UK oil business including BP, Shell and AMEC were among the 23 companies from Britain which had representatives attending.
The business secretary and other members of the delegation met Iraq government ministers and officials to discuss opportunities for British business to contribute to the reconstruction of the Middle East country.
Lord Mandelson said: “It is a tribute to the efforts of our armed forces that I am able to visit Iraq to talk business; something that no senior British minister has been able to do in 20 years. Iraq today is a place of opportunity.
“Britain will stand by Iraq in peace as we have in conflict to help Iraqis realise that opportunity.
“The size and seniority of the delegation reflects the importance that both the British government and British business place in Iraq and its people.
“British business expertise and skills can play an important role in the development of the Iraq economy and the UK Government will do all it can to make a positive contribution to the economic future of Iraq.”
The delegation represented a range of sectors including healthcare, construction, transport, power, oil and gas, water, banking and security.
Wood Group said yesterday it could not comment on the visit to Iraq, or say who was representing the company, for security reasons, however, it is understood that it is interested in providing support for gas turbines for both oil production and electricity generation.
Wood has previous experience of working in Iraq. It overhauled turbines there in the past, mainly for the oil and gas business, through the UN oil-for-food programme.
At the end of February, Ramco Energy, of Aberdeen, said a joint venture between state-owned Iraqi Drilling Company (IDC) and Ramco’s 32.7%-owned Mesopotamia Petroleum had agreed a deal to explore for oil in the country.
The Aberdeen company said the deal – the first joint venture between a British company and Iraq’s oil ministry – would cover drilling of 60 wells a year, starting this year. Shares in Ramco jumped on the news.
The joint venture, which will have start-up capital of £63million and will be 51%-owned by IDC and 49% by Mesopotamia, is expected to raise Iraq’s oil output by 120,000 barrels per day within a year.
It has planned to invest £280million to acquire and operate 12 new drilling rigs and to provide logistical support and working capital.