Posted on 23 October 2013.
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 & Mining
Posted on 22 June 2013.
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.
Posted in Commodities & Mining, Oil & Gas
Posted on 08 April 2013.
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 & Trade
Posted on 03 April 2013.
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.
Posted in Agriculture, Commodities & Mining
Posted on 10 January 2013.
This week marks the 150th edition of our Iraq Business News newsletter, and we are delighted to mark the occasion by bringing you a major new guide to business in Iraq.
Published by Allurentis, in association with Iraq’s National Investment Commission (NIC) and UK Trade & Investment (UKTI), the fourth edition in the annual New Iraq series — The New Iraq: 2013 Discovering Business — contains a wealth of case studies, commentary and data; it’s 132 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:
“Rebuilding the country’s economy is one of the biggest global investment opportunities to emerge in the past 50 years, with every sector open for investment.“
We’d like to congratulate Laura Curtis (firstname.lastname@example.org) 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 Agriculture, Banking & Finance, Blog, Commodities & Mining, Construction & Engineering, Education & Training, Employment, Healthcare, Industry & Trade, Investment, Leisure and Tourism, Oil & Gas, Politics, Public Works, Security, Telecoms/Comms, Transportation
Posted on 14 December 2012.
The Board of EITI (Extractive Industries Transparency Initiative) has declared Iraq to be ‘Compliant’ with the EITI Standard. There are now 18 countries that are ‘EITI Compliant’.
EITI compliance means that the country has an effective process for annual disclosure and reconciliation of all revenues from its extractive sector. This allows citizens to see how much their country receives from oil, gas and mining companies.
With approximately 10% of the world’s proven oil reserves and 2% of the natural gas reserves, Iraq becomes the largest EITI compliant country by oil and gas reserves in the world. It now produces around 3 million barrels every day with production expected to expand rapidly.
The industry in Iraq is completely state-owned with the state-owned companies selling crude to accredited international companies. There are also eleven international Technical Service Contracts (TSCs). The semi-autonomous Kurdish Regional Government (KRG) has a number of production sharing agreements. The 2009 Iraq EITI report showed that the government had received $41billion in revenue for oil and gas exports. The 2010 Iraq report is due out by the end of the year.
EITI Chair Clare Short commended Iraq for its achievement saying
“The Iraqi people have not had the benefits that should have flowed to them from their rich oil resources. Compliance with the EITI is a step towards helping to ensure ensuring that the resources will be better managed in the future. I congratulate Iraq on this excellent achievement.“
Posted in Commodities & Mining, Oil & Gas, Security
Posted on 09 November 2012.
By John Lee.
The board of the Export-Import Bank of the United States (Ex-Im Bank) voted to guarantee a JPMorgan Chase loan totaling $35 million to Devco International LLC (Devco) of Tulsa, Okla., for the design and construction of a sulfur purification plant in Mosul, Iraq.
Ex-Im Bank’s financing will support approximately 380 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.
“This significant transaction not only supports American small-business jobs here at home, but it also supports the sulfur and agricultural industries in Iraq,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “By providing a working-capital guarantee, Ex-Im Bank is demonstrating that we are always looking to support U.S. exporters and grow our economy by creating quality jobs here at home.”
Devco utilizes as part of its design a modular concept that maximizes labor concentration in a fabrication-shop environment. The company will design, procure, fabricate, and pre-assemble the plant in the United States and then ship the plant in modular form to Iraq. Upon arrival, Al Hawarth, an Iraqi-owned company, will re-assemble the facility outside the riverside city of Mosul.
The plant will process sulfur from underground deposits utilizing a priority process, Submerged Combustion Distillation, developed by CTI Consulting of New Orleans, La. The Al-Mishraq Sulphur State Company, which will own and operate the facility, plans to retail the purified sulfur output in Iraq for domestic use. Sulfur is a key ingredient in fertilizer and therefore is in demand within the agricultural sector.
Posted in Banking & Finance, Commodities & Mining, Industry & Trade
Posted on 08 August 2012.
By Padraig O’Hannelly.
With increasing commercial activity in Iraq, much of it by foreign-based investors, there’s a growing market for adequate insurance to cover the risks. But in a country emerging from years of chaos, how can you be sure that the insurance you buy is legal and valid?
To help clarify this point, Iraq Business News spoke with Ms Shirook Adnan, the head of the country’s insurance regulator, the Iraqi Insurance Diwan (IID).
“The law states that an organisation may not carry on a regulated insurance activity in Iraq unless it is authorised by the IID”, she explained. “An insurance broker, for example, must apply to the Ministry of Trade for a licence to set up a business, and the Ministry will not grant this licence without approval from the IID.”
“This also applies to foreign businesses. Our law doesn’t allow for a foreign insurance company or broker to work in Iraq; they must first establish and register a branch within the country.”
The regulator went on to explain that “any insurer not complying with these requirements would be liable to severe financial penalties, and any policy taken out with a broker who is not properly licensed within Iraq would not be valid under Iraqi insurance law”.
Posted in Banking & Finance, Commodities & Mining, Construction & Engineering, Employment, Industry & Trade, Oil & Gas, Security