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By John Lee.

Prime Minister Mohammed S. Al-Sudani presided over a meeting of the Higher Committee for the New Sadr City Project, focusing on advancing infrastructure and housing initiatives for this major urban development.

Key Decisions and Updates:

• Progress on Phase One
  • Reviewed advancements in awarding contracts for infrastructure projects.
  • Phase One comprises 11,000 housing units, initiated as per the Council of Ministers' resolution on November 26, 2024.
• Investment Models for Housing Units
  • Directed the development of investment models for Phase One and Phase Two, which collectively encompass 60,000 housing units (11,000 in Phase One and 49,000 in Phase Two).
  • Assigned technical and economic advisors to collaborate with the National Investment Commission (NIC) on model creation.
• Advisory and Consultancy Support
  • Invited reputable consulting firms to provide advisory services for the project's infrastructure and housing components.
• Archaeological and Utility Considerations
  • Directed the completion of evaluations for archaeological sites to determine suitability for development.
  • Identified optimal locations and finalized the models for power stations to supply electricity to the new city.
• Daily Reporting and Accountability
  • Ordered the submission of daily reports on progress to ensure transparency and adherence to timelines.

(Source: PMO)

By John Lee.

Prime Minister Mohammed S. Al-Sudani met a delegation from GE Vernova (General Electric), led by Mr. Joseph Anis, President and CEO for Europe, Middle East, and Africa in London this week.

The delegation reviewed the progress of strategic projects currently being implemented by GE across Iraq in the electricity sector. These projects include the construction of multiple secondary stations in all provinces to enhance the national power grid, as well as the execution of long-term maintenance work under previously signed Memorandums of Understanding.

The meeting emphasized the importance of strengthening collaboration in the implementation of renewable energy projects in Iraq. This aligns with the government's plans to increase electricity production capacity, meet growing demand, and support the energy needs of various industrial sectors, which are witnessing significant developmental projects across the country.

(Source: PMO)

By John Lee.

Prime Ministers Keir Starmer and Mohammed S. Al-Sudani have unveiled an ambitious £12.3 billion [$15 billion] UK-Iraq trade and investment package aimed at enhancing prosperity and bilateral economic ties.

The agreement represents over a tenfold increase in trade compared to last year and underscores both nations' commitment to strategic collaboration across key sectors.

Key Projects Announced:

1. De-mining Operations: £330 million for UK-led mine removal across Iraq.
2. Al-Qayyarah Airbase Rehabilitation: £500 million to boost Iraq's air defence capabilities.
3. Water Infrastructure:
   1. Comprehensive Water Project: £5.3 billion for improved water access and irrigation in South and West Iraq.
   2. Basra Desalination Project: £3.3 billion for clean water infrastructure benefiting 3 million residents.
4. Power Grid Enhancements:
   1. Iraq-Saudi grid interconnection (£1.2 billion).
   2. National grid upgrades by GE Vernova (£82 million).
5. Telecommunications: Vodafone to lead Iraq's 5G rollout (£410 million).
6. Railway and Sanitation Projects:
   1. £82 million for a new railway.
   2. £260 million for sewage and water processing in Hilla.
   3. £655 million for sewage and water processing in Baghdad.
7. Emergency Services and Border Security:
   1. British fire-fighting vehicles (£27.5 million).
   2. Radio communication systems (£98 million).
   3. Border security technology (£66.5 million).

The UK will leverage its global financial expertise to aid in the establishment of Iraq's Strategic Investment Fund, the Iraq Fund for Development (IFD). Designed to attract private investment, the IFD aims to finance critical socio-economic infrastructure projects and drive Iraq's long-term economic growth.

The Prime Ministers also welcomed a landmark Iraq-BP agreement for long-term investment, further solidifying the foundation for future collaboration in energy, logistics, and financial services.

Full statement from the 10 Downing Street:

The Prime Minister of the United Kingdom, The Rt Hon Sir Keir Starmer KCB KC MP, hosted the Prime Minister of The Republic of Iraq, His Excellency Mohammed Shia Al-Sudani as part of the Iraqi Prime Minister's official visit to the United Kingdom, from 14-16 January 2025.

Prime Minister Starmer congratulated PM Al-Sudani on the stability and growth that Iraq has enjoyed under his leadership. The leaders reaffirmed their commitment to the vision of a prosperous, sovereign Iraq through a new partnership focused on trade and investment, deepening educational and cultural ties, as well as tackling security, migration and climate change challenges. This visit re-affirms the UK and Iraq's commitment to work together on shared regional and global interests and underlines a shared commitment to the long-term strategic relationship.

The Prime Ministers signed a landmark Partnership & Cooperation Agreement (PCA), a wide-ranging treaty on trade and strategic cooperation and agreed a trade package worth up to £12.3 billion, underpinned by a series of export agreements, to bolster the growing trading relationship between the UK and Iraq.

Prime Ministers Starmer and Al-Sudani agreed to develop and further UK-Iraq co-operation on a wide range of sectors, including:

Trade, Economy and Investment

Prime Ministers Starmer and Al-Sudani discussed their shared objective of increasing prosperity and their commitment to an ambitious expansion of UK-Iraq trade and investment.

They agreed to utilise UK private sector expertise on critical water, energy, telecoms and defence infrastructure, and to secure future investment projects in the clean energy, pharmaceutical, logistics, and financial services sectors. This will be supported through a UK Export Finance (UKEF) Memorandum of Cooperation to boost private sector investment and financing in Iraq, signed by the UK Foreign Secretary and Iraqi Foreign Minister. The Prime Ministers welcomed the recently announced agreement between the Government of Iraq and BP for a long-term investment in Iraq.

The Leaders announced a trade and export package of £12.3 billion, over 10 times last year's total UK-Iraq bilateral trade, consisting of the following UK-led projects in Iraq:

• De-mining: UK Companies have been appointed to remove legacy mines across all of Iraq: a contract worth £330mn.
• Rehabilitation and reconstruction of Al-Qayyarah airbase: UK private sector expertise will deliver the £500mn rehabilitation of Iraq's Al Qayyarah airbase providing Iraq with air defence coverage and capability for North & West of Iraq.
• Comprehensive Water Project: a UK-led consortium will lead a significant water infrastructure project worth up to £5.3bn in UK exports. This will improve water quality, irrigate agricultural land, and provide clean water in the South and West of Iraq, improving living conditions for millions of Iraqis.
• Basra Water Project: a UK company has been appointed to build large-scale infrastructure for desalination and water processing plants, providing clean water for the 3 million Iraqis in the Basra province. This project is worth up to £3.3bn in UK exports.
• Iraq-Saudi Grid interconnection: UK-made power transmission systems will interconnect the Iraq and Saudi grids, a project worth at least £1.2bn.
• Enhancement of the Iraqi National Grid: GE Vernova will supply and install £82mn worth of power substations to improve Iraq's electricity grid.
• 5G rollout: Vodafone has been appointed to design the new 5G network planned by the government in a project set to be worth £410mn over twenty years.
• Iraqi Railway project: A UK company will deliver a £82mn construction project to build a new railway in Iraq.
• Hilla Phase 2: a UK company has been appointed to deliver sewage and water processing solutions serving 3 million Iraqis, worth £260mn in exports.
• Baghdad Sanitation Project: a UK company has been appointed to provide up to £655mn worth of water management, and sewage treatment solutions for the Mayoralty of Baghdad.
• Provision of UK Firefighting vehicles: 62 British-made fire-fighting vehicles will be exported to Iraq, in a UKEF-facilitated £27.5mn export.
• Provision of radio communications equipment: UK firms will export £98mn worth of communications technology to provide the Iraqi emergency services with equipment to tackle emergencies and incidents more efficiently across Iraq.
• Border technology: UK companies will provide £66.5mn worth of border security equipment to the Iraqi Ministry of Interior, to make Iraq's crossings, checkpoints, and airports safer.

The UK is supporting Iraq as it undertakes the bold long-term reforms needed to grow its economy. As a global financial leader, the UK is harnessing expertise to support the establishment of PM Al-Sudani's high ambition for the Iraq Fund for Development (IFD), Iraq's first Strategic Investment Fund. The IFD has the potential to support socio-economic infrastructure development projects in Iraq and provide a gateway to the world for attracting private investment.

Defence and Security

Prime Ministers Starmer and Al-Sudani re-affirmed the strong historical UK-Iraq defence and security relationship. Noting that 2025 marks over ten years of the Global Coalition's military mission in Iraq, both Prime Ministers reflected on the historic successes of the Iraqi Security Forces and the Coalition in achieving the territorial defeat of Daesh in Iraq and honoured the sacrifices made by Iraqi, UK, and other forces in securing this aim.

The Prime Ministers signed the Joint Statement on the Strategic Bilateral Defence Relationship that establishes the basis for a new era in security cooperation and paves the way for a new agreement to reflect the ambition of both countries. This deepens our defence cooperation for the future, including through the provision of UK-Iraq military education exchange, UK advisory support on capability and institutional reform, and the development of defence industrial partnerships. The Defence & Security Joint Statement underlines shared objectives, including counter-terrorism, regional security and stability and a strong and prosperous Iraq. The Prime Ministers Starmer and Al-Sudani jointly highlighted the importance of aviation safety and security standards.

Migration and Organised Immigration Crime

Prime Ministers Starmer and Al-Sudani committed to enhance vital migration cooperation between the UK and Iraq, given the importance of our strategic partnership in disrupting irregular migration upstream, and the significant work being led by the Government of Iraq to provide reintegration support to those returned.

The Prime Ministers agreed the principles of a specific returns agreement that delivers on a joint commitment to ensure those who have no right to be in the UK can be returned swiftly. They discussed the practical next steps on how to do so, building on the Home Secretary's recent visit, in which landmark agreements set out how the two countries will strengthen border security and enhance law enforcement cooperation to tackle people smuggling organised crime organisations.

Both agreed that the increasingly global nature of organised immigration crime underscores the need to stop people smuggling gangs from putting so many lives at risk and that strengthening the border security of our nations is a key part of this effort - UK private sector expertise plays an important role in this, announcing the provision of police communications equipment, border technology and comprehensive training programmes to Iraq's Ministry of Interior, ensuring Iraq has state-of-the-art technology and emergency response capability to support our shared objective of strengthening border security, whilst also contributing to UK growth.

Culture and Education

Prime Ministers Starmer and Al-Sudani noted the importance of educational and cultural exchange in building shared opportunities and mutual trust and understanding and acknowledged strong people-to-people connections between the two countries. They discussed Iraq's history of educational achievement and PM Starmer strongly welcomed Iraq's investment in international scholarships with PM Al-Sudani announcing a significant scholarship scheme enabling over 2000 Iraqi students to study in the UK. They noted the potential for high-quality teaching, learning and research collaboration between UK and Iraqi universities and academics with a number of high-level agreements being signed with UK Universities. They discussed the importance of English language learning and UK international school qualifications, which unlock opportunities for greater educational and cultural exchange, and recognised the work of UK and Iraqi institutions working to widen access.

Women, Peace and Security

Prime Ministers Starmer and Al-Sudani committed to deepening cooperation on the Women, Peace and Security agenda, with PM Starmer welcoming Iraq's plans to launch its third National Action Plan and a network of Iraqi women peacebuilders in March 2025. The Prime Ministers agreed on the importance of supporting women-led and women's rights organisations. They recognised the need for on-going support, justice and accountability for all survivors of Daesh-perpetrated sexual violence, including mothers and their children born of conflict-related sexual violence, and continued efforts to end violence against women and girls. They agreed on the importance of girls completing a quality education and women's economic empowerment, benefitting all of society.

Climate and Environment

Prime Ministers Starmer and Al-Sudani underlined the importance of working together to tackle climate and environmental issues. The Prime Ministers welcomed the Government of Iraq's commitment to end flaring of associated gas by 2028, as a part of its transition towards a cleaner energy system, and dry gas venting, that has negative environmental and economic consequences, and the UK's commitment to clean power by 2030.

The parties signed a Memorandum of Cooperation on Climate Change, the Environment, Energy Transition and the Carbon Economy. This will deepen cooperation on a broad range of climate and environment issues. In particular, it recognises a partnership to enhance co-operation to deliver Iraq's commitment to end flaring.

Sport Cooperation

The two Prime Ministers underlined the importance of developing sports exchange mutual benefit. The leaders encouraged further contact and development of cooperation over sports affairs and encouraged their sports associations to coordinate their activities and strengthen exchange and cooperation, including in sports science and medicine. The Prime Ministers expressed a strong interest in exchanging visits among sport teams of the two countries.

(Sources: 10 Downing Street, PMO)

By John Lee.

Prime Minister Mohammed S. Al-Sudani met with Stellar Energy's Executive Chairman, Peter Gibson, during his official visit to London to discuss the company's ongoing and future projects in Iraq.

The talks focused on Florida-based Stellar Energy's work with the Ministry of Electricity on combined-cycle power plants and gas supply mechanisms, as well as plans for a new agreement on power generation and distribution.

Al-Sudani underscored Iraq's commitment to expanding its energy sector, utilising associated gas from crude oil production to fuel plants, and achieving self-sufficiency while eliminating gas flaring.

Peter Gibson reaffirmed Stellar Energy's dedication to delivering projects on schedule and its willingness to support Iraq's energy ambitions, particularly in turbine station cooling and advanced power generation solutions.

Last year, the Export-Import Bank of the United States (EXIM) approved a $297-million commitment in support of a Stellar Energy project in Iraq.

(Source: PMO)

By John Lee.

On Friday, TotalEnergies (45%, operator) and its partners Basra Oil Company (BOC) (30%) and QatarEnergy (25%) launched today the construction works of ArtawiGas25, a first processing facility for the associated gas from the Ratawi [Artawi] field, in the Basra region.

This facility, which is part of the Gas Growth Integrated Project (GGIP), represents an investment of around USD 250 million and will process 50 million cubic feet per day (Mcf/d) of gas previously flared. The gas will supply local power plants, covering the demand of approximately 200,000 households in the Basra region.

Signed in September 2021, the GGIP project is a $10-billion multi-energy project designed to enhance the development of Iraq's natural resources and improve the country's electricity supply. The GGIP includes a large-scale gas processing plant, with a first phase of 300 Mcf/d that will recover gas being flared on three oil fields and supply gas to 1.5 GW of power generation capacity.

According to a statement from TotalEnergies, in anticipation of the start-up of this main gas processing facility, the ArtawiGas25 project will significantly reduce gas flaring at the Ratawi field as early as end 2025. "The innovative modular design of ArtawiGas25 could also pave the way for potential replication across other Iraqi oil fields. ArtawiGas25 will create up to 160 direct and indirect jobs for Iraqi nationals during construction phase and 30 jobs during operation phase."

Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies, said:

"We are very pleased to launch the ArtawiGas25 project: it will give the Iragi people a tangible insight into the benefits of the GGIP, which will provide more energy with less emissions. Through this project, TotalEnergies is demonstrating its capacity to deliver valuable and fast-track solutions in accordance with the government's expectations and the country's electricity needs. We look forward to the next GGIP milestones in the coming weeks with the start of construction of the 1 GW solar project."

(Sources: TotalEnergies, Ministry of Oil)

By John Lee.

The Iraqi Cabinet has approved a high-efficiency waste-to-energy power plant project in Baghdad.

The plant, employing advanced incineration technology, will be developed by China's Shanghai SUS Environment Co. Ltd. on a designated plot in Nahrawan District.

The National Investment Commission (NIC) has been authorised to issue the investment license and sign the agreement in coordination with key ministries, including Health, Electricity, Environment, and Baghdad Municipality.

This marks Iraq's inaugural project for waste management and power generation. The Ministry of Foreign Affairs will verify the company's documentation before finalising the contract.

Established in 2008, SUS Environment describes itself as, "a leading provider of integrated environmental and energy services, dedicated to achieving sustainable development for both people and the environment."

(Source: Media Office of the Prime Minister)

By John Lee.

Iraq's Oil Products Distribution Company (OPDC) has announced its 2024 fuel sales figures, showcasing extensive distribution across Iraq via retail outlets, electronic POS systems, and direct supply to state institutions, private companies, investors, displaced persons, the Ministry of Electricity, and aviation services.

Director-General Hussein Talib Aboud attributed the successful distribution to coordinated efforts across regional branches, ensuring seamless fuel availability for all customers.

Sales volumes included approximately:

• Petrol (regular, improved, super): 11.382 billion litres
• Kerosene: 1.768 billion litres
• Diesel (regular and heavy): 11 billion litres
• Fuel oil (various types): 11.5 billion litres
• Aviation fuel (civilian and military): 154 million litres

The company highlighted its commitment to maintaining efficiency and meeting national demand.

(Source: Ministry of Oil)

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani chaired a meeting on Tuesday with representatives of UAE's Crescent Petroleum, attended by the Ministers of Oil and Electricity.

The meeting discussed the government's plans to advance gas investment in partnership with the private sector.

The Prime Minister directed the Ministry of Electricity to proceed with signing a contract with Crescent Petroleum to secure 100 million standard cubic feet of gas for operating power stations.

He also instructed the Ministry of Oil to expedite efforts to overcome any obstacles hindering Crescent Petroleum's gas and oil investment in Khashm Al-Ahmar [Khashim Ahmer-Injana, Khasham Al-Ahmar] oil field in Diyala Province, within a defined plan and timeline.

The company signed a contract to develop the field in February 2023, as part of the fifth energy licensing round.

(Source: PMO)

By John Lee.

Iraq's Ministry of Oil celebrated the groundbreaking of the West Qurna 1 Field Operations Center (Phase 1) and inaugurated several service projects in Al-Sadiq District, Basra Province.

The initiatives were carried out by the Basra Oil Company (BOC) in collaboration with PetroChina, the operator of the West Qurna 1 field.

The new center will play a pivotal role in managing water injection, oil production, and gas processing operations. Once operational, it is expected to enhance efficiency and oversight of production activities across the field.

Oil Minister Abdul Ghani emphasized the strategic importance of the West Qurna 1 oil field, which boasts reserves exceeding 22 billion barrels. The field currently produces 550,000 barrels per day (bpd), with ongoing efforts to sustain and boost output.

Key Developments:

1. Infrastructure Improvements in Al-Sadiq District
   • Road Rehabilitation: Resurfacing and paving of key roads, including "Alam Street" (8.6 km) and "Antar Street" (5.5 km).
   • Electricity Projects: Commissioning of a new 33/11 kV substation in Al-Housh area to enhance local power supply.
2. Educational Support
   • Provision of supplies to 7 schools and the Institute of Fine Arts in Al-Sadiq and Al-Madina districts, including classroom furniture, office equipment, and IT tools.
3. Job Creation
   • Increased employment opportunities for local residents.
4. Gas Utilization Initiative
   • The minister directed PetroChina to prioritize capturing and utilizing associated gas for power generation, reducing flaring and contributing to the national grid.

West Qurna 1 was awarded to ExxonMobil during Iraq's first licensing round in 2010. However, ExxonMobil requested to transfer its stake to PetroChina, a process completed after negotiations and approval in 2023.

(Source: Ministry of Oil)

By John Lee.

The Iraqi Cabinet has authorised the Minister of Finance, or a designated representative, to sign a loan agreement funded by the Export-Import Bank of the United States (EXIM, EXIMBank).

The loan will support the implementation of combined-cycle projects for the Kirkuk Gas Power Plant under the Ministry of Electricity.

According to a statement from the Prime Minister's office, this decision aligns with the Federal Budget Law for the next three years and the principles of energy cooperation in Iraq. The agreement includes financing terms approved by the Ministry of Finance.

(Source: PMO)