Commodities & Mining

Devco Ships $53m Kit to Sulfur Mine

Devco Ships $53m Kit to Sulfur Mine

By John Lee.

US-based engineering firm Devco has shipped $53 million worth of equipment to the Mishraq State Sulfur Mine in Mosul.

This is the second major shipment from Devco’s $78.6 million order from the Iraqi Ministry of Industry. This contract, part of ongoing rehabilitation of the mine, is the largest contract awarded by Iraq’s Ministry of Industry in the post-war period.

At full capacity, the facility will be able to purify 500,000 tons of sulfur per year, using Submerged Combustion Technology from Crescent Technology, Inc. (CTI) in New Orleans, LA. The shipment is scheduled to arrive at the jobsite on June 10th, and the Mishraq facility is projected to go online in January, 2015.

Included in this shipment were 43 skids, or modular units, as well as over 200 crates of different piping and structural material. One of the main benefits of this type of modular assembly is that as the trial fit of the entire plant was performed at the manufacturing site in Oklahoma, Devco was able to simultaneously begin construction at the site in Iraq, and will be ready to erect the equipment when it arrives in June.

Tulsa-based ISTI Plant Services, Devco’s key fabricator to the project, was responsible for full assembly. Working at their shop in Catoosa, ISTI poured new slabs to perform trial fit functions on each area, and as Project Manager Jeff Hutsell described, “did so with great success while maintaining a high level of safety for all involved.

Financing for the project was backed by loan guarantee from EX-IM Bank. The goal of this type of loan guarantee for EX-IM Bank is to support hundreds of US small business jobs, while also supporting the sulfur and agricultural industries in Iraq.

(Source: Devco)

Posted in Commodities & Mining, Construction & Engineering0 Comments

The New Iraq: 2014 Discovering Business

The New Iraq: 2014 Discovering Business

Iraq Business News is delighted to bring you the latest major new guide to business in Iraq.

Published by Allurentis, in association with Iraq’s National Investment Commission (NIC) and UK Trade and Investment (UKTI), the fifth edition in the annual New Iraq series – The New Iraq: 2014 Discovering Business – contains a wealth of case studies, commentary and data; it’s 136 pages of essential reading for everyone with an interest in the redevelopment of Iraq.

And as Dr. Sami Al-Araji, Chairman of the National Investment Commission, says in the introduction:

Iraq has managed to overcome daunting challenges, to experience sustained economic expansion since 2010, with 8.4% GDP growth in 2012 and further expansion of 9% in 2013. 2014 will be the year of investment in Iraq.

We’d like to congratulate Laura Curtis (laura.curtis@allurentis.com) and all her team at Allurentis on a splendid publication.

Iraq Business News is delighted to make this guide available to readers in pdf format: Please click here to view or download the full document.

Posted in Banking & Finance, Commodities & Mining, Construction & Engineering, Industry & Trade, Investment, Oil & Gas8 Comments

KRG Natural Resources Monthly Report

KRG Natural Resources Monthly Report

The KRG Ministry of Natural Resources (MNR) announces the publication of its first Monthly Report.

The Report contains the latest information on production and export in the Kurdistan Region, domestic refining and consumption, well activity, rig counts and map, employment figures and updates on Production Sharing Contracts.

The report will help interested citizens, companies and the media to closely follow the activities and progress of the oil industry in the Kurdistan Region. New information sections will be added over the coming months.

The first report, published today, covers activities in the month of October, 2013. Reports for November and December 2013 are being prepared and will appear in mid-February. Thereafter, it will be published monthly.

The Monthly Report is part of MNR’s ongoing commitment to transparency. Each report will be in English and Kurdish and will be posted every month on MNR’s website when it will be announced soon. Hard copies will also be available. An Arabic version is under preparation.

Please click here to download the full report from the Iraq Business News reports service.

(Source: KRG)

Posted in Commodities & Mining, Oil & Gas6 Comments

New Report from Extractive Ind. Transparency Initiative

New Report from Extractive Ind. Transparency Initiative

By John Lee.

The Iraqi-Extractive Industries Transparency Initiative (IEITI) report for year 2011 has been published by an independent and international reconciler firm Ernst & Young.

The report considers for the first time the quantities of crude oil used for local consumption and the paid revenues by the Extractive Oil Companies (National & International).

It concludes that the total revenues from selling crude oil for year 2011 amounts to US$ 83 billion, plus the total paid amounts of US$ 4.5 billion to the International Extractive Companies involved in developing oil fields, and US$ 4.5 billion to the National Extractive Companies in exchange for their participation in the extractive operation of the oil fields in Basra, Umara, Nasiriyah, Kirkuk and others

The International Reconciler concluded that there was a total difference of US$ 1.175 billion between the data reported by the Oil companies compared to those of the Ministry of Oil (MoO),the difference was in favor of MoO; furthermore, a difference of US$ 720 million was also reported in respect to other costs in favor of MoO.

The report clarified that all discrepancies are explained and justified and were due to the difference in the calculation mechanism used by MoO compared to thatused by the Oil Companies. The report summarized the results of the reconciliation process between the Companies and the Iraqi Government (excluding Kurdistan Region) as being 100% comparable, based on adopting a Materiality figure of 1%.

Other challenges faced by the reconciliation process were the inability to reconcile the data information of oil production in Kurdistan Region with the information of data of crude oil consumption by the Electricity Power Generation due to the absence of supplying data by neither the Kurdistan Regional Government nor the Ministry of Electricity.

The full report can be downloaded here, while our Expert Blogger Ahmed Mousa Jiyad gives his initial assessment here.

Posted in Commodities & Mining, Oil & Gas4 Comments

Ukraine Offers Lowest Bid For Iraq Wheat Tender

Ukraine Offers Lowest Bid For Iraq Wheat Tender

By Matthew Gayle.

Ukrainian wheat was offered at the lowest price of $326 a tonne c&f free out (ciffo) in a tender from Iraq’s state grain board to purchase at least 50,000 tonnes, European traders said on Monday. The offer was for 50,000 tonnes. A separate offer for 50,000 tonnes of Ukrainian wheat was made at $344.12 a tonne ciffo, according to the Business Recorder.

The lowest offers from other countries in dollars a tonne ciffo were Romanian wheat at $348.35, Russian at $355 and Hungarian at $355.38. Australian wheat was offered at $362.50, Canadian at $369.50, US wheat at $394, and German at $376. Australian wheat was available in the largest volume with total offers for 350,000 tonnes made at up to $392.76, followed by 200,000 tonnes from the United States offered at up to $442.42.

The tender sought shipment between November 15 and December 15, 2013, with delivery taking place between December 16, 2013, and January 28, 2014. Iraq is one of the world’s largest importers of wheat, much of which goes to supply a national food ration program.

(Source: Business Recorder)

Posted in Agriculture, Commodities & Mining3 Comments

Iraq’s Oil Exports Fall In June

Iraq’s Oil Exports Fall In June

By Matthew Gayle.

According to shipping data tracked by Reuters and industry sources, oil exports from Iraq have fallen by about 200,000 barrels per day (bpd) in June due to bad weather disrupting loadings.

Exports from Iraq’s southern shipping outlet, have averaged close to 2 million bpd in the first three weeks of June, which is down about 200,000 bpd from 2.198 million bpd the month of May.

This recent decline is not expected carry over into July, as it mostly reflects the impact of poor weather disrupting tanker loadings rather than production shortfalls or unplanned outages.

According to Reuters sources, shipments of Kirkuk have maintained around 280,000 bpd, similar to May, leaving Iraq’s exports on track to average around 2.28 million bpd by the end of the month. However, exports from Kirkuk remain restrained by a dispute between the central government and Kurdistan over payments. In addition, a recent bomb attack on the pipeline to Turkey interrupted flows.

(Source: Reuters)

Posted in Commodities & Mining, Oil & Gas0 Comments

Iraq Awards Rice Tender To Thailand

Iraq Awards Rice Tender To Thailand

Iraq has awarded Thailand with the tender announced last month seeking a minimum of 30,000 tons of rice, and will purchase a total of 80,000 tons of rice from Thailand. Thai rice was amongst the lowest offers in the tender that closed on March 31, which included invited applications from the U.S., Uruguay, Argentina and Thailand.

The lowest Thai rice quote was $539.59 per ton for 40,000 tons of rice, while the two second lowest quotes were offered at $568.20 per ton for 110,000 tons and $569.65 per ton for 40,000 tons of rice.

Thailand is the second largest exporter of rice in the world, while Iraq’s domestic consumption of rice was up by 5 percent in 2012.

(Source: Black Sea Grain)

Posted in Commodities & Mining, Industry & Trade0 Comments

Over 5m Tons of Food Imported in 2012

Over 5m Tons of Food Imported in 2012

By Matthew Gayle.

According to the state-run Grain Board of Iraq, over 5.4 million tons of food were imported into Iraq last year to cover the state-run food rationing system that was originally initiated in 1990.

The system food rationing system was put into place to help offset the impact of U.N. trade sanctions, and allowed Iraqi families free access to quantities of certain food items at almost no charge.

“We imported 2.5 million tons of wheat in 2012,” said the board’s chief Hassan Ismael. Ismael added that annual imports of wheat are usually higher, but domestic wheat yields were high last year with government silos receiving 1.8 million tons from Iraqi farmers.

Ismael also pointed out that Iraq imported 1 million tons of rice, 800 million tons of sugar, 500,000 tons of baby milk formula and 600 tons of cooking oil.

The volume of food imports referred to by Ismael does not represent the food shipments into Iraq by the private sector.

(Source: Azzman)

Posted in Agriculture, Commodities & Mining1 Comment

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