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Following the signing of the gas deal with Shell and Mitsubishi, the Iraqi Oil Ministry is considering exploiting flared gas at other oilfields, including in Missan [Maysan].

The Minister of Oil, Abdul Karim Luaibi [Abdul-Kareem Elaibi] told AKnews that the Iraqi government is considering projects similar to the Basra Gas Company.

It is noteworthy that Iraq is losing a billion cubic feet of gas per day, mostly in the south. The gas is being burnt off in great burning flares as Iraq's antebellum hydrocarbon infrastructure cannot exploit the gas.

The gas produced is intended to be used in the local market to meet the growing demand for electricity and there is high possibility to export the surplus, with the Basra Gas Company is looking to spend more than $4 billion USD (4,500 billion IQD) on a liquid natural gas export facility.

(Source: AKnews)

According to a report from Tokyo Times, Japan's Minister for Economy, Trade and Industry, Yukio Edano (pictured), has told Nuri al-Maliki of Japans’s desire to work on the development of Iraqi oil fields.

It was reported that a Japanese consortium led by Nippon Oil had been optimistic about securing the right to develop the Nasiriyah oil field located in the southern part of Iraq believed to be rich in oil reserves.

A Japanese official said Maliki had assured Edano of his country’s openness adn full support for Japanese investments.

Economic adviser Salam al-Quraishi said, "The Iraqi government invited 14 Japanese companies to implement projects in the field of energy and providing electricity, 7 to implement residential building projects, 5 companies to develop the oil industry and 8 companies specialized in different investment areas."

Officials affirmed cooperation in the energy and economic fields as well as in the development of infrastructure like railways, harbours and roads.

Edano expressed Japan’s readiness to provide technologies and financial resources for Iraq’s reconstruction efforts.

(Source: Tokyo Times)

(Photo credit: DAJF)

The deputy chairman of Wassit provincial council, Mehdi al-Mussawi, told Aswat al-Iraq that it has signed a memorandum of understanding (MOU) with an Iranian company to build a 500-megawatt power station on a deferred payment basis, in addition to a 400-bed hospital and 5000 flats housing complex.

The MOU, which the approval of the electricity ministry and the cabinet, includes provision for the training of Iraqi personnel in Iran, and for Iranian physicians to treat Iraqi patients at the new hospital.

(Source: Aswat al-Iraq)

According to a report in the Financial Times, violence is not deterring investment bankers hungry for potentially lucrative deals in Iraq. Over the past year, a trickle of visits from intrepid bankers has turned into a steady stream of senior executives from some of the world's largest financial institutions.

"The international banks can smell the opportunities," says Shwan Taha, an Iraqi who formerly worked for the family office of hedge fund manager George Soros, and returned to Iraq in 2007 to set up Rabee Securities, now one of the country's largest brokerages. "More and more bankers are flying in, and more will continue to come."

The head of a major private security company says he has seen a noticeable increase in visits by investment bankers in the past four to five months, and offers to provide secure accommodation and personal security details, including close protection. He says, "the biggest single threat to those kind of people is really kidnap - that's obviously a fairly nasty outcome".

It's the oil revenues and reconstruction that are enticing bankers. Some estimate that the total bill for investments in oil and gas infrastructure, electricity, healthcare, sewage and roads will total more than $500bn in the coming decades.

The planned listing of Iraq's three phone companies could almost double the market's size of the stock exchange (currently about $3.5bn) if they go through as proposed.

Yet despite all its promise, bankers concede that Iraq is fraught with potential pitfalls.

The President of Iraqi Kurdistan said on Wednesday that the region will go ahead with its exploration deal with U.S. oil major Exxon Mobil despite objections from Baghdad.

According to Reuters, Masoud Barzani (pictured) said Iraqi Prime Minister Nuri al-Maliki was told of the deal prior to its signing and had no objection, and called Baghdad's opposition unconstitutional.

"The contract is not unconstitutional. Yes, we have signed with Exxon Mobil according to the constitution ... the objection that we heard from some officials is what is unconstitutional," he told the news agency in an interview.

"We are committed to the deal and we will execute it without caring about what some officials in Baghdad say, which is against the constitution."

Exxon has not commented publicly on the agreement and Iraqi oil officials say the company has not responded to their requests for an explanation.

Despite the silence from Exxon, the U.S. State Department commented on the deal, saying it hoped Iraq and Exxon could resolve the dispute in a way that would not undercut the future development of Iraqi oil resources.

Barzani said the Exxon deal would benefit all of Iraq, not just the Kurdish region. He said he was surprised at Baghdad's recent warning against the deal.

"It is strange really, and has no meaning. For us, it doesn't mean anything. At the first step, I sent a message to the prime minister and informed him of all the details. The answer I got back was that there was no objection... Before the signing, yes."

"The oil policy in Iraq is a failed policy, I say it clearly. Ask the Iraqi people where are the oil refineries? ... How many hours of electricity are available for the Iraqi citizen in the center and south? And Iraq lives on a sea of oil," he said.

"If it is not a failed policy, then what is the reason?" he asked.

 (Source: Reuters)

The United States of America and the Republic of Iraq are committed to forging a strong partnership based on mutual interests that will continue to grow for years to come. Our two nations are entering a new phase in our relationship. We have a historic opportunity to strengthen our ties beyond security and build a multi-faceted relationship through trade, education, culture, law enforcement, environment, energy, and other important areas.

Three years ago, our nations signed the Strategic Framework Agreement (SFA), affirming both sides’ desire to establish long-term bonds of cooperation and friendship. The SFA is a lasting agreement, and one that serves as the foundation on which we are building a durable and mutually beneficial relationship. Today, we gather again in Baghdad to reaffirm our commitment to this important partnership and to the principles of cooperation, sovereignty, and mutual respect articulated in the SFA.

Vice President Joe Biden and Prime Minister Nuri al-Maliki convened the SFA’s Higher Coordinating Committee on November 30. Together, they affirmed the significant accomplishments under the SFA thus far and charted a course for further joint efforts.

Cultural and Education Cooperation

The Republic of Iraq seeks the cooperation of the United States in its efforts to build a stronger higher education system, expanding English language programs, and preserving Iraq’s rich cultural heritage, especially through assistance in conserving archeological sites such as the Babylon historical site, which the United States has helped preserve, and through support to the Iraqi Institute for Conservation of Antiquities and Heritage.

Shell, Mitsubishi and the Iraqi government have finally signed the $17.2 billion deal on Sunday to capture flared gas at Iraq's southern oilfields.

The 25-year project is intended to boost production of badly needed electricity and reduce the environmental damage caused by flaring, as well as opening up the possibility of gas exports.

It will harness more than 700 million cubic feet per day of gas from the oilfields of Rumaila, Zubair and West Qurna, increasing eventually to 2 billion cubic feet per day.

The goal of 2 billion cubic feet per day capacity is linked to peak production at the southern fields, which is expected by 2017, Deputy Oil Minister Ahmed al-Shamma told Reuters.

"This day represents a historic change in the Iraqi oil industry ... the best utilisation of (associated) gas to meet the increasing needs for gas in Iraq," Luaibi said at a signing ceremony attended by Shell Chief Executive Peter Voser.

The Shell deal will involve the creation of the Basra Gas Company joint venture, in which the government will hold 51 percent, Shell 44 percent and Mitsubishi 5 percent.

Existing facilities are currently handling 370 million cubic feet of gas per day from seven southern fields.

The project may include the construction of an LNG export facility with a maximum capacity of 600 million cubic feet per day. Exports are possible once Iraq's domestic needs are met.

Officials say the project requires investment of $17.2 billion -- $12.8 billion to rehabilitate existing facilities and build new ones, and $4.4 billion for the LNG export unit.

The Shell-Mitsubishi partnership expects an internal rate of return on the project of 15 percent on an initial investment of $6.98 billion, while SGC plans to put in $3.7 billion of public funds initially and fund the rest through gas sales.

(Sources: Reuters, Wall Street Journal)

The Chairman of Kurdistan's Investment Board said that the board will adopt a more strategic approach and devolve investment licensing powers to its three provincial directorates.

Minister Herish Muharam, speaking at the 'Iraq: Untapped Opportunities' conference in London, said, "To increase the efficiency of our Investment Board, we are delegating more of our operations to the provincial level, so that we can focus on our vision, and on the strategies that we need to achieve our vision."

At the conference, Minister Muharam outlined five key sectors for investment - industry, agriculture, banking, tourism and health - and invited British companies to participate in Kurdistan's vision.

He added "We used leading international consultants to help us develop strategies for electricity, water and road transport. We hope that foreign companies will help us to implement these strategies. In the Kurdistan Region (we) are no longer looking for the cheapest suppliers and trading partners. There is a growing recognition that quality represents value for money."

Lord Howell of Guildford, Minister of State at the Foreign and Commonwealth Office, also addressed the Middle East Association's (MEA) 'Iraq Untapped Opportunities' conference. He said, "With the Arab Spring we see the desire for reform and democracy. In Iraq, the people have chosen democracy. In the national election in 2009, voter turnout was 64% which is excellent by international standards."

Lord Howell said that the October British trade delegation to Erbil was the largest delegation led by UKTI to anywhere in the world, with 86 people representing 70 companies and organisations. He spoke of his pride in the UK's role in liberating the Iraqi people from tyranny. He said, "But now the nature of our bilateral relationship has changed. We are now developing broad-based bilateral relations in education, culture, and democratic development. Fundamental to this relationship is developing trade links."

Ms Bayan Sami Abdul Rahman, the KRG’s Representative to the UK, said, "Kurdistan is a good-news story. Since 2006, Kurdistan has attracted $16bn of investment in non-oil and gas sectors. This is a testament to the region's dynamic development and the Investment Board's efforts to help domestic and international investors."

Dr Hussein Al Shahristani, Iraq's Deputy Prime Minister for Energy; Dr Khairallah Hassan Babiker, Iraq's Minister of Trade; and Baroness Emma Nicholson, a member of the House of Lords and Executive Chair of the Iraqi-British Business Council, also spoke at the conference at the Dorchester Hotel.

Reuters reports that Iraq has signed contracts worth $396 million with South Korea's Hyundai Engineering to build two new power plants.

Laith al-Mamury, head of investments and contracts at the electricity ministry, said the plants will have a total capacity of 1,752 megawatts.

There will be five units of 292 MW each in Rumaila, with a total value of $308 million, and a separate deal worth $88.5 million for a single 292 MW gas unit at Taza in Kirkuk province.

The gas units were bought from Siemens in a contract signed in 2008.

The Rumaila contract is expected to be completed in 21 months while the Taza deal should be finished within 18 months.

Iraq finalised a $1.08 billion contract with China's CMEC last week to build a 1,260 MW plant in Salahaddin province.

(Source: Reuters)

GE marked the opening of its dedicated office in Erbil, the capital of the Kurdistan Region of Iraq, with the first GE Day. The event underlined the company’s focus on strengthening public private partnerships, highlighted by the recent multi-million dollar, multi-year agreement with Mass Global Investment Company to support power distribution in Northern Iraq. GE also committed to enhancing localization by creating new jobs and promoting knowledge transfer through training programs.

At the GE Day, over 200 government dignitaries and customers were present and a high profile panel discussion was held on the importance of ‘Public Private Partnerships to Drive the Growth of Kurdistan’ was held attended by His Excellency Nawzad Hadi, the Governor of Erbil; Nisar Talabany, the Advisor to the Kurdish Government; Diyar Babon, Director General of Kurdish Ministry of Electricity; Ahmed Mufti, Energy Expert to the Kurdish Government; Herish Muharam, Head of the Investment Board of the Kurdistan Region; and Nabil Habayeb, GE’s President & CEO of GE For MENAT.

One of the world’s leading technology providers in energy, aviation, healthcare, transportation and capital, GE put the spotlight on how the private and public sectors can work together to support the growth aspirations of the Kurdistan Government in line with its Strategic Plan, and how these partnerships can promote the economic welfare and well-being of the Kurdish people.

John Rice, Vice Chairman and President & CEO for GE’s Global Growth and Operations, who attended the GE Day, said: “The business friendly policies of the Kurdish government and the focus on infrastructure development are strong drivers for businesses, and have already brought about a transformational change to the region in a short span of time. In driving Kurdistan’s economic growth, public private partnerships have a central role to play, as envisaged by the Government’s Strategic Plan.

“With the opening of our office in Erbil, we are further underlining our commitment to support Kurdistan’s onward journey of development by bringing our advanced technologies, promoting localization and transferring advanced skill-sets.”