By Matthew Gayle.

According to Bloomberg, Oil Minister Abdul Kareem al-Luaibi [Elaibi] recently said that Iraq is seeking a long-term accord to boost oil exports to China as OPEC’s second -biggest producer increases output from fields operated by companies like Royal Dutch Shell (RDSA).

Crude exports from Iraq to China average 500,000 barrels per day, and Iraq’s oil production, which averaged 3.5 million barrels a day in the first quarter, is expected to rise this year due to increases in output in the southern portion of the country.

“The Chinese companies are considered strategic partners to Iraq in aspects of extracting and marketing crude oil through their active participation in developing the Iraqi oilfields,” the state-run Iraqia channel quoted Minister al-Luaibi as having said.

China is on track to overtake the U.S. as the world’s top crude importer in 2014 as the country’s growing refining capacity boosts demand.

 (Source: Bloomberg, People’s Daily)

By John Lee.

Chinese fast-food chain CaliBurger has announced that it has signed a franchise agreement to begin opening CaliBurger restaurants in Kuwait and Iraq.

According to a report from Fast Casual, the franchisee, Ali Hashem, will have rights to open multiple units in Kuwait and serve as the master franchisee for Iraq. Hashem is a local entrepreneur whose family owns United Foodstuff Industries Group Company, one of the largest food companies in Kuwait.

Rick DeMarco, COO of CaliBurger, said:

“We are pleased to be working with Ali Hashem and his colleagues at United Foodstuff Industries Group Company … Burger concepts in Kuwait are experiencing some of the highest sales in the world, and Iraq represents a tremendous future growth opportunity.“

John Miller, chairman of the CaliBurger board of directors, added:

“Through our franchising development partner, Fransmart, we are seeing tremendous demand for international franchise agreements. We will carefully select our franchise partners and support them through a dedicated international franchise support team.“

(Source: Fast Casual)

By John Lee.

The Acting Minister of Communications, Torhan al-Mufti [Torhan Mudher Hassan AL-Mufti] (pictured), has held a meeting with representatives of the Chinese companies Huawei and ZTE.

According to a report from AIN, they discussed cooperation between Iraq and the Chinese companies.

The Director General of the General Company of Communication and Post, Salih Hassan, said that “The Ministry of Communications is cooperative with the Chinese companies since it offered modern and progressed methods and we will continue contracting with these companies hoping for the best.”

(Source: AIN)

By John Lee.

Iraq’s Petroleum Contracts and Licensing Directorate (PCLD) has announced that seven international oil companies (IOCs) have been selected to bid for the development of its Nasiriya oilfield and refinery:

1. Zarubezhneft, from Russia (Up and Downstream);
2. CNPC, from China (Downstream);
3. Brown Energy, from US (Downstream);
4. Reliance Industries, from India (Up & Downstream);
5. Lukoil, from Russia (Downstream);
6. Total, from France (Downstream);
7. JGC and Tonen General,  from Japan (Up & Downstream).

Fourteen companies submitted their qualifications for the Nasiriya Integrated Project between 1st November 2012 and 28th February 2013, and they were judged on four criteria — Technical, Financial, Legal, and HSE.

The eventual winner will develop the giant Nasiriya oilfield and build a new 300,000 bpd refinery.

Reuters reports that the Ministry of Oil plans to hold a roadshow to discuss the contract model on 8th and 9th April in Amman, Jordan.

(Sources: Ministry of Oil, Reuters)

The Chairman of PetroChina has told Reuters that his company is willing to join Exxon Mobil in the 400,000-bpd West Qurna-1 oilfield project.

Jiang Jiemin (pictured) told the news agency:

“We are willing to jointly develop the project with Exxon Mobil. Exxon Mobil welcomed our participation and the Iraqi government also supports us joining the development … The asset value of the whole project is massive, but near-term capital spending required is not that huge.“

He went on to say that the PetroChina, owned by the China National Petroleum Corporation (CNPC), would “thoroughly evaluate the project” and make an investment decision at an “appropriate” time.

Exxon is understood to be considering various options to resolve the difficulties caused by the company’s activities in Iraqi Kurdistan, which Baghdad regards as illegal, and the Ministry of Oil may be willing to offer better terms. One option for Exxon may to to sell part of its 60 percent stake while remaining as operator.

CNPC made a play for Exxon’s full stake in West Qurna-1 at the end of last year, but the U.S. company was not satisfied with the bid, according to industry sources.

(Source: Reuters)

By John Lee.

The China Petroleum Pipeline (CPP) company is said to be close to winning a $650-million contract to build a pipeline linking the southern oilfields in Maysan province to the al-Fao [al Faw] storage depots.

The chief of state-run Maysan Oil Company, Ali Maarij, told Reuters, that the line will expand the export capacity from the oilfields of Maysan and Halfaya, and other small fields. “It will definitely remove all exports constrictions“, he added.

The 300-km (186-mile) 42-inch export pipeline should be operational at the start of 2014, facilitating a planned increase in output from the current 230,000 bpd to around 400,000 bpd.

It will replace an existing outdated 28-inch pipeline currently shipping crude from the southern fields in Ammara to storage facilities near the city of Basra.

(Source: Reuters)

By John Lee.

Foreign Minister Hoshyar Zebari has met with the Ambassador of the People’s Republic of China, Ni Jian.

The two sides discussed the developing relations between the countries and ways of enhancing them . The Minister conveyed a letter from the Iraqi government to the Chinese Ambassador about the ongoing deliberations at the Security Council on ending mandate of the International Coordinator for missing Kuwaitis and prisoners, and requested the understanding and cooperation of China to get Iraq out of the provisions of Chapter VII.

The meeting was attended by Undersecretary for Policy Planning and Bilateral Relations, Head of Asia Department and the Minister’s Office Director.

(Source: MOFA)

By John Lee.

Iraqi Railways signed a contract to import 10 passengers trains from a Chinese company.

Aswat al-Iraq reports that the contract is valued at $115 million.

(Source: Aswat al-Iraq)