Custom Search

By John Lee.

Vodafone and Zain have jointly announced a Partner Market agreement that will significantly expand Vodafone’s Partner Market presence in the Middle East and provide Zain customers with greater support in Vodafone’s global footprint.

Under the non-equity partnership agreement, Vodafone will work with Zain companies in Saudi Arabia, Bahrain, Kuwait, Jordan and Iraq to provide customers with high quality communications services.

The move will enhance both Zain and Vodafone’s ability to meet growing demand among multinational businesses for sophisticated voice and data communications solutions as well as advanced roaming services within the Middle East.

This will complement Vodafone’s own regional operations in Egypt and Qatar and increase the number of countries in which Vodafone has Partner Market agreements to more than 50.

Zain will have access to Vodafone’s devices and services in its home markets and become the preferred partner of Vodafone in respect of the agreed areas of cooperation. Vodafone and Zain will work together to provide customers with enhanced network coverage, harmonised roaming rates across multiple countries with greater cost efficiencies and Zain will be able to use the Vodafone brand.

Vodafone's multinational customers served by Vodafone Global Enterprise will benefit by being able to add the Zain countries to their existing contracts for international managed services, while continuing to be serviced via a single point of contact. Zain will similarly benefit from Vodafone's footprint.

By John Lee.

Asiacell has become the first mobile operator to reach an initial agreement to list on the Iraqi bourse, according to a report from Reuters.

The company, part of Qatar Telecommunications, along with its two rivals Zain Iraq and Korek, were required to float their shares on the stock market as a condition of their $1.25 billion operating licenses, but all three companies missed the August 2011 deadline.

Iraq's communications regulator has fined all three companies for failing to meet the requirement.

Asiacell said in a statement that it was working through the final paperwork necessary to complete the listing.

(Source: Reuters)

To overcome Iraq’s current political crisis and prevent the breakdown of the entire post-2003 order, Prime Minister Maliki (pictured) and his opponents both will have to agree to painful compromises, according to this report from the International Crisis Group:

EXECUTIVE SUMMARY AND RECOMMENDATIONS

At first glance, the current Iraqi political crisis looks like just one more predictable bump in the long road from dictatorship to democracy. Every two years or so, the political class experiences a prolonged stalemate; just as regularly, it is overcome. So, one might think, it will be this time around.

But look closer and the picture changes. The tug of war over Prime Minister Nouri al-Maliki’s second term suggests something far worse: that a badly conceived, deeply flawed political process has turned into a chronic crisis that could bring down the existing political structure.

To avoid this outcome, both Maliki and his opponents need to make painful compromises: the prime minister should implement the power-sharing deal negotiated in 2010 and pledge to step down at the end of his term; in turn, his rivals should call off efforts to unseat him and instead use their parliamentary strength to build strong state institutions, such as an independent electoral commission, and ensure free and fair elections in two years’ time.

The present stalemate has its immediate roots in the Erbil accord between key political actors, which led to the second Maliki government. Key elements of the power-sharing agreement, which political leaders reached in a rush in November 2010 as impatience with the absence of a government grew, were never carried out.

By John Lee.

Iraq’s crude oil production overtook Iran’s last month for the first time since 1988, when the countries ended their eight-year war, reports Bloomberg.

Iraq pumped 2.984 million barrels a day in June, versus 2.963 million bpd for Iraq, OPEC said today in its Monthly Oil Market Report.

Production from Iran fell ahead of sanctions from the EU that started on 1st July 1, while Iraq is steadily increasing output.

OPEC’s 12 members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

(Source: Bloomberg)

By Mark DeWeaver.

Original shares of Al Mansour Bank (BMNS) resumed trading on July 1 following the announcement of the bank’s capital increase and dividend plan. All shareholders will receive a 51% bonus share issue along with an IQD 0.068 / share dividend. Qatar National Bank (QNB) is also buying 85 bn new shares at IQD 1.60 / share, which will raise its stake from 23% to 51%.

This is an exciting development. Before the capital increase, BMNS had only IQD 100 bn in capital, making it just one of a number of mid-sized Iraqi lenders. The new funds will raise the bank’s capital to IQD 236 bn, making it second only to BUND, which now has IQD 250 bn.

The terms of the deal were also not unfavorable to minority shareholders. QNB’s total cost per new share, adjusting for the dividend and bonus shares it received, comes to IQD 1.39—a 7% premium to the last traded price of IQD 1.30.

The July 1 closing price was IQD 1.18. For everyone but QNB, this must have been the best one-day return in the ISX all year.

Suppose you were holding one BMNS share worth IQD 1.30 on the last trading date. Following the bonus issue, you had 1.51 new shares, along with the IQD 0.068 dividend. At the July 1 close, you ended up with cash and shares worth IQD 1.18 * 1.51 shares + IQD 0.068 = IQD 1.85. The value of your account had increased by a whopping 42%.

Not bad for a bear market.

In May, Turkey and Iraqi Kurdistan announced they would build pipelines taking oil and gas from Iraq into Turkey, then possibly Europe. But according to this article from NIQASH behind the energy dream, lurks a nightmare of militant Kurdish independence fighters and the spectres of energy giants, Iran and Russia.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

To some it is a dream come true, others think it’s a nightmare that will never see the light of day. The May 2012 announcement by Ashti Hawrami, the Minister of Natural Resources in the semi-autonomous state of Iraqi Kurdistan that they would build new oil and gas pipelines to Turkey shook the Iraqi government in Baghdad.

The first phase of pipeline construction is supposed to be completed by October this year and the second phase is due to be finished by August 2013. Another pipeline is to be built by 2014.

Baghdad reacted unhappily to this announcement, saying – as they had done with other oil deals – that the Kurds were working outside of the national remit. National Deputy Prime Minister for Energy, Hussein al-Shahristani, was dismissive of the pipelines and local media were also rather negative about it.

Yet it appears that Baghdad feels that that the northern state of Iraqi Kurdistan is slipping out of its control. For the last five years Baghdad has been trying to reign in the Kurdish government, especially when it comes to oil and gas.

Shahristani has blacklisted oil companies operating in Iraqi Kurdistan and even ensured that, during the recent lacklustre fourth round of bidding to do oil work in Iraq, there was a new clause preventing any oil companies from going into Iraqi Kurdistan without Baghdad’s permission, as oil major Exxon Mobil did in November 2011.

Qatar Airways has in the span of just two weeks expanded passenger services to Iraq with the launch of its second destination in the country – to the capital Baghdad.

The Doha-based airline is operating four-flights-a-week non-stop on the Baghdad route. Located on the banks of the Tigris River, Iraq’s capital is one of the Arab world’s largest cities.

The move comes just two weeks after Qatar Airways launched flights, also four-times-a-week, to the northern Iraqi city of Erbil.

Cargo traffic bound for Iraq will see a boost when Qatar Airways launches a dedicated weekly freighter service to Erbil, effective July 5.

Both the Erbil and Baghdad passenger services are being operated with an Airbus A320 in a two-class configuration of 12 seats in Business Class and 132 in Economy.

Qatar Airways Senior Vice-President GCC, Levant, Iran, Iraq and Indian Sub continent Fathi Al Shehab was onboard inaugural flight QR442 to Baghdad, which arrived at the city’s international airport to a traditional water salute welcome followed by an airport ceremony attended by local officials and media.

The addition of Baghdad takes Qatar Airways’ global network to 116 destinations worldwide. Qatar Airways’ passengers flying to Iraq from destinations across the Gulf, Europe, Indian subcontinent, Asia Pacific and The Americas can seamlessly connect via the airline’s Doha hub.

Qatar Airways Chief Executive Officer Akbar Al Baker said: “Baghdad had long been on our list of destinations which we identified as being a key part of growing our Middle East network.

“During Iraq’s current period of reform and development, with industries resurging and many new companies expanding operations to Iraq, we felt this was the time to move into the country.

“With our new passenger flights to both Baghdad and Erbil, together with our new dedicated freighter service to Erbil starting next month, Qatar Airways is offering excellent capacity to and from the country.”

Added Al Baker: “With growing business ties between Iraq and the rest of the world, it is a natural next step for the airline to expand further within the region, providing opportunities for greater economic, cultural and educational exchanges through this greater air access.”

Addressing local airport officials and media upon arrival in Baghdad, Al Shehab said: “Baghdad is a route which will help facilitate easy movement for those travelling from around the world on business to the country, with excellent connectivity via Doha.

“In addition, we are offering Iraqis living abroad with a more convenient way to return to Baghdad and neighbouring towns and cities. We provide our passengers with an exceptional award-winning onboard product and great connections to reach their families and homes.

“We have been working closely with the travel trade and corporations in Iraq and indeed across our international network to promote our new Iraq services.

“Qatar Airways has enjoyed a busy year so far with Baghdad becoming the airline’s sixth new route start-up since January.”

Reuters reports that Qatar Telecom (Qtel) is to double its stake in Asiacell, Iraq's second biggest mobile operator, to 60 percent for $1.47 billion.

Qtel will initially increase its stake to 53.9 percent from 30 percent, with a further increase pending Iraqi government and regulatory approval.

Qtel did not identify the sellers of the stake, but in January sources told Reuters the operator was planning to buy private equity firm MerchantBridge's 19 percent holding in the company. Bloomberg reports that Eric le Blan, acting chief executive officer of MerchantBridge, declined to comment by phone on Tuesday.

“The Iraqi market is about to enter a period of rapid broadband and data growth and Asiacell is well-positioned to meet the demands of the population for high quality, reliable and affordable voice and data services,” Qtel chairman Sheikh Abdullah Al-Thani said in the statement. “We continue to work hard on preparing for Asiacell’s landmark IPO planned for later this year.”

Iraq's mobile operators have yet to launch 3G services, while fixed line broadband infrastructure is in its infancy.

Asiacell has a 38 percent share of Iraq's mobile subscribers, according to rival Zain's 2011 annual report. Zain's Iraqi unit is the market leader with 53 percent of subscribers, while France Telecom affiliate Korek has 9 percent.

(Sources: Reuters, Bloomberg)

Oryx Engineering Solutions (OES) is pleased to announce the official inauguration of the 1st of its kind fully integrated end-to-end engineering solutions service center, based in the heart of Ras Laffan in State of Qatar.

The Centre was officially inaugurated, on behalf of H.E. Dr. Mohammed Bin Saleh Al-Sada, the Minister of Energy & Industry and Chairman of Qatar Petroleum by Mr. Abdulaziz Jassim Al-Muftah, the Director of Ras Laffan Industrial City which is a department of Qatar Petroleum. The inauguration was attended by more than 200 senior government officials and decision makers from International Oil & Gas companies and Qatari energy companies.

The fully privately owned facility which covers an area of 14,000m2 is now able to support the rapidly changing, evolving and demanding needs of the Middle East and Africa’s energy sectors including oil and gas, power and water, petrochemical, industrial and marine.

To further validate Oryx Engineering Solution`s compelling and unique value proposition, three Joint Venture partnerships were also announced during the ceremony:

ABB Oryx Motors & Generators Service LLC (ABB Oryx M&G), a joint venture between Oryx and ABB, the leading power and automation technology group. ABB Oryx M&G will provide a full suite of motor and generator services to customers with operations in the oil, gas, water and energy sectors in Qatar and the surrounding Gulf and sub-Sahara African regions.

AESSEAL Oryx LLC: The fourth largest manufacturer of mechanical seals in the world AESSEAL has joined forces with Oryx to repair, refurbish, serve, supply and support all the engineering needs of mechanical and dry gas seals.

Transcar Projects Qatar LLC: The globally renowned project and logistics solution provider Transcar Projects which has played an instrumental role in the core logistics delivery component of the Pearl GTL project, has entered a joint venture partnership with Oryx to offer door-to-door services beyond logistics and project freight forwarding across MEA. The partnership allows Oryx to offer its clients a full 360° service from managing some of the most daunting transportation requirements for heavy oil and gas components and equipment and equally.

This new progressively customized facility – which has a built up area close to 10,500m2 of workshops, offices and training facilities – is fully equipped with all the advanced machinery needed to service a wide range of sophisticated engineering services.

The OESC’s location within Ras Laffan Industrial City will do much to reduce the number of valuable service contracts currently leaving Qatar by making it possible for the needs of the many companies working in the country’s expanding energy and water sectors to be met by locally-based services provided by Oryx Engineering Services and its strong Joint Venture partners.

Speaking at the ceremony. The Director of Ras Laffan Industrial City, Abdulaziz Jassim Al-Muftah, said” Ras Laffan Industrial City is pleased to see a Qatari private sector company making such significant investment and commitment to the Industrial services sector of Qatar, to support the various industries based in Ras Laffan and Qatar. We welcome them to the Ras Laffan Industrial City Family.

Speaking at the ceremony, Oryx’ Chairman and Managing Director, Abdulla Ahmed Mannai, said: “This journey has taken 7 years, I am delighted to see that the facility and the lineup of our experts and team has been received so positively by all of the industry experts who joined us at the ceremony. OES is the one stop solution for almost all engineering needs of RLIC, Qatar and greater MEA”

“We are extremely pleased with the strong and solid lineup of partnerships we have developed with ABB, AESSEAL and Transcar and equally so with the fact that we have created an environment that is all geared for productivity and excellence.”

Speaking for ABB Gus Abboud, Region Division Manager, ABB Discrete Automation and Motion, Middle East and Africa, ABB, mentioned “Oryx is a local company with an enviable reputation – throughout the Gulf region – for the quality of our services and the way we do business. We are a customer-focused organization, committed to delivering world-class services that major on value creation. We also have a strong commitment to sustainability and to the best interests of the wider Qatari community.”

“We are determined that, through the quality of our services and the convenience of our location, we will be able to contribute in supporting the development of business in the State of Qatar. The faster turnaround times we will offer will be attractive to companies operating in and near the Ras Laffan Industrial City, and our proximity to the region’s many off-shore operations will reduce the risks associated with transportation. Motors and generators are at the heart of everyday life and without them, many businesses would grind to a halt, therefore servicing this vital equipment is key to keeping the wheels of industry turning and keeping the lights on.”

Dean Rossiter, the Managing Director for Transcar highlighted the fact that “given the growing and rapidly expanding domestic and regional needs for agile and reliable logistics and project management services, we were in search for a local partner that brings global expertise for service to the region, the most important differentiator at Oryx is the mind-set and the precision, attention to the detail that is instrumental in our industry. We have found in Oryx a truly reliable partner and indeed a great complimentary value proposition for our vision of a joint presence within the energy industry.”’

AESSEAL the 4th largest manufacturer of mechanical seals in the world has also entered into a joint venture partnership with Oryx. David Elliot the Regional Director of AESSEAL in Qatar added: “I have been to almost all of our partner, engineering services centers in Australia and South Africa and around the world, I can admit that hardly any facility in many of these countries can match the line–up of human and technological capital that has been amalgamated under one roof at Oryx.”

Abdulla Mannai the Founder and Managing Director of Oryx Engineering Solutions concluded that “the journey has only begun and we are pleased to serve our customers and clients, doing so with passion, determination, foresight for the sector and being mindful that the well-being of our staff and team members within the facility is of paramount importance to the quality of our work. The journey for Qatar, Oryx Engineering Solutions and the opportunities in the energy sector in MEA has just begun.”

The full scope of the joint venture includes the repair, servicing, commissioning, installation and maintenance of all brands of electrical motors and generators, including those manufactured and distributed by ABB, all mechanical seals, project forwarding and logistics services for major transportation needs in the energy sector. The work will be carried out either at the new Oryx Engineering Solutions dedicated facility at the heart of Ras Laffan Industrial City or remotely on site at the customers’ operational locations. The on-site field services will cover the commissioning and installation of motors and generators and mechanical seals together with preventive maintenance backed by ABB’s Life Expectancy Analysis Program (LEAP) and AESSEAL. The off-site services offered will include preventative maintenance and the repair, refurbishment and upgrading of all brands of motors and generators.

The overall service provided by ABB Oryx M&G and AESSEAL Oryx will extend to the sale and delivery of spare parts and maintenance kits for the 10,000-plus ABB electrical motors and generators that have been installed by companies operating within the State of Qatar and other countries in the Middle East and sub-Saharan Africa.

Qatar Airways has extended its Middle East footprint to Iraq with Wednesday’s launch of scheduled flights to the northern city of Erbil.

Qatar Airways inaugural flight QR 446 from Doha to Erbil arrives in the northern Iraqi city to a traditional water salute welcome today.

The Doha-based airline is operating four-flights-a-week non-stop on the route – the first of two new Iraqi services being launched within two weeks. Effective June 7, Qatar Airways will start flights to the capital Baghdad, also operating four-times-a-week.

Both the Erbil and Baghdad services are being operated with an Airbus A320 in a two-class configuration of 12 seats in Business Class and 132 in Economy.

Qatar Airways Senior Vice-President GCC, Levant, Iran, Iraq and Indian Sub continent Fathi Al Shehab was onboard inaugural flight QR 446 which arrived at Erbil International Airport to a traditional water salute welcome followed by an airport ceremony attended by local officials.

Erbil takes Qatar Airways’ global network to 115 destinations worldwide.

Qatar Airways Chief Executive Officer Akbar Al Baker said: “Iraq has long been underserved due to the political and economic difficulties the country has faced over the years, but Iraq is undergoing reform, opening up to rapid infrastructure improvements and improved air access in an area for so long depleted by sufficient number of flights."