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By Ali Mamouri for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iraq works to distance itself from US-Iran tension after Saudi Aramco attack

Attacks that occurred Sept. 14 against Aramco oil processing facilities in Saudi Arabia, resulting in huge fires and halting near half of the supply from the largest oil exporter in the world, could have a major effect on Iraq.

Soon after the attacks, Yemen’s Houthi rebels took responsibility, saying they used 10 drones in the strikes.

However, Middle East Eye quoted an unnamed Iraqi intelligence official as saying the strikes were launched by Iranian drones using Iraqi territory.

Middle East Eye added that the attack was in revenge, occurring out of the belief that Riyadh funded Israeli drone attacks that have taken place in recent months on Iraqi Popular Mobilization Units.

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(Picture credit: Tasnim, under Creative Commons licence)

Iraq has signed a landmark deal with the Gulf Cooperation Council (GCC) for a power line to import 500 megawatts of electricity by 2020, local reports said on Sunday.

According to the Iraqi Electricity Ministry, the 300-kilometre line will run from Kuwait to Iraq’s southern port of Faw and be financed by the GCC.

Electricity Minister Lo’ai [Luay] Al-Khatteeb (pictured) signed the agreement with the head of the GCC Interconnection Authority, Ahmad Ibrahim, on the sidelines of an energy conference held in Baghdad.

“This is the first deal of its kind with the GCC,” explained Al-Khatteeb. Iraq is also in separate talks with neighbours Saudi Arabia, Jordan and Turkey to import electricity.

“This first step will pave the way to discuss further and higher capacity projects,” the minister added, “not only to supply Baghdad and northern Iraq but also as a pathway to other countries.”

(Source: Middle East Monitor)

By John Lee.

Commercial operations at the new Saudi-Iraq Arar Crossing will begin on a trial basis on 15th October.

Saudi Arabia's Ambassador to Iraq, Abdul Aziz Al-Shammari, and Iraqi Ambassador to Riyadh, Qahtan Al-Janabi, made the announcement during a visit to the crossing point.

The Saudi town of Arar is 70 kilometers from the Iraqi border.

(Sources: Xinhua, Arab News)

By John Lee.

Petrofac has said that a fall in first-half order intake was partly due to an investigation into the oilfield services company’s dealings in Saudi Arabia and Iraq.

In its results for the six months ended 30th June 2019, Petrofac's Group Chief Executive Ayman Asfari commented:

"Petrofac has delivered good results that reflect solid operational performance across the business.

"New order intake year to date has been impacted by recent challenges in Saudi Arabia and Iraq. 

"Looking forward, the Group has a busy tendering pipeline with around US$13 billion of bid opportunities due for award in the second half of the year."

It added that "no charges have been brought against Petrofac, or any officers or current employees."

Earlier this year, David Lufkin, previously Global Head of Sales for Petrofac International Limited, pleaded guilty to eleven counts of bribery.

(Source: Petrofac)

By John Lee.

The Arar border crossing between Saudi Arabia and Iraq will reportedly officially reopen in October.

It was closed in 1990 following Iraq’s invasion of Kuwait.

According to Gulf News, some pilgrims are currently being allowed to pass through the crossing to participate in next month’s Haj.

(Source: Gulf News)

By Padraig O'Hannelly.

A senior oil executive has predicted that Iraq could surpass Saudi Arabia as an oil producer.

Addressing delegates at CWC's Iraq Petroleum conference in London, Majid Jafar (pictured), CEO of Sharjah-based Crescent Petroleum, said:

"Iraq is hugely underexplored. We at Crescent know of 300 structures just in the Western Desert that have yet to be drilled, so I for one believe that Iraq has a lot of potential, and I wouldn't be surprised if it becomes the largest producer in OPEC during my career."

Crescent Petroleum has an interest in the Khor Mor field in the Kurdistan Region of Iraq, and has signed initial contracts to develop the oil fields of Gilabat-Qumar (in Diyala), Khashim Ahmer-Injana (in Diyala), and Khudher Al-Mai [Khider al-Mai] (in Basra and Muthana).

By Padraig O'Hannelly.

Following the increase in tensions in the Gulf region in recent weeks, two British diplomats have expressed the view that Iraq could have a positive role to play.

Addressing delegates at CWC's Iraq Petroleum conference in London, the British Ambassador to Iraq, Jonathan Wilks CMG, said:

"Iraq is strong enough now to keep itself out of whatever may develop between the US and Iran, as long as it asserts its sovereignty and independence with all countries, not just with Iran and the US, but with all countries east and west. It is powerful enough to do this now ... [and] must be taken seriously as an economic power.

"Iraq is back as a reasonable, constructive and credible player in world affairs."

Later at the same gathering, Sir William Patey KCMG (pictured on left), a former UK Ambassador to both Iraq and Saudi Arabia, said:

"Iraq is in a unique position, in that it has equity in ensuring that there isn't a war ... and I think a confident new Iraq could play a role.

"It has better relations with Saudi Arabia, it has good relations with Iran, it has a close relationship with the United States, and it has a lot at stake. So I actually think in terms of reducing the tensions, I think there is potential for Iraq, and I think  the current leadership of Iraq has the [right] vision and outlook."

This weekend, the Iraq Britain Business Council (IBBC) hosted its annual members’ retreat at Cumberland Lodge, Windsor Park, which was generously sponsored by Al Burhan Group.

As with previous years, it was very well attended by over seventy delegates, and allowed our members to mingle and network with representatives of other businesses, civil servants, and Iraqi government dignitaries.

Speakers and organisations represented included:

• Dr Falah Al Amiri, Advisor to the Ministry of Oil, Government of Iraq
• Dr Hameed Ahmed, Deputy Higher Education Minister
• Eng. Dara Rasheed, Deputy Minister of Housing, Construction & Municipalities
• Jon Wilks CMG, HM Ambassador to Iraq
• Beverley Simpson, Director, Department of International Trade (DIT) in Iraq
• Dr Victoria Lindsay, Director, British Council, Iraq
• Emma Sky, Director, Greenberg World Fellows Program, Yale University
• Nicolas Pelham, The Economist
• Professor Toby Dodge, London School of Economics
• Dr Renad Mansour, Chatham House
• Al Burhan Group
• Al Maseer Insurance
• Basra Gateway Terminal
• Bath Spa University
• BP
• Chevron
• Constellis
• EAME
• ENKA
• ExxonMobil
• Financial Times
• G4S
• GulfTek Saudi
• KBR
• Management Partners
• Mosul University
• OiLSERV Kuwait
• Perkins+Will UK, Ltd
• Petrofac
• Petronor
• Pro-Technique Group
• Rolls-Royce
• Serco
• Shire Oak International
• Stirling Education
• Tube Tech International
• TurnKey LLC
• Unihouse Global
• University of Dundee
• University of Liverpool
• University of Northampton
• University of Sheffield
• Wood Plc
• Zaha Hadid Architects

Sessions included discussions and panels on the state of Iraq, contemporary Middle Eastern politics, meetings for our various sector tables (including oil and gas, and construction and infrastructure), economic development strategies for Iraq, and how higher education partnerships could be developed between the UK and Iraq. A biannual council meeting for representatives of our member organisations was also held.

Christophe Michels, Managing Director of the IBBC was happy with how the weekend went:

“As in previous years the Retreat has attracted some of the finest minds from business, academia, politics, media and diplomacy working on Iraq to conduct truly meaningful and intimate discussions”.

Baroness Emma Nicholson, President of the IBBC and the Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Kazakhstan and Turkmenistan said:

“IBBC has had a fantastically happy and hugely productive busy weekend. We call it a retreat, but I am not sure what it was a retreat from! People were working morning, noon, and night, and they were making great achievements, and huge strides in the various different table meetings…one of the best I can ever remember”.

For more information on the Iraq Britain Business Council, visit our website at https://www.iraqbritainbusiness.org/

(Source: IBBC)

By John Lee.

The Trade Bank of Iraq (TBI) has officially opened its new headquarters in Baghdad.

Located on Al Rasheed Street in the heart of Baghdad, the new headquarters is wholly owned by the bank and is designed to facilitate collaboration, bringing 670 Baghdad-based employees of TBI under one roof for the first time.

The building comprises of 5 floors with the ground floor set to provide banking services to customers while the remaining floors are dedicated to administrative work.

The TBI also recently opened its first operational branch outside Iraq, in Saudi Arabia.

(Source: TBI)