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Bloomberg's Eduard Gismatullin interviewed Peter Voser, chief executive officer of Royal Dutch Shell Plc, at the World Petroleum Congress in Doha, Qatar, on Tuesday.

His comments on operations in Iraq start about 9 minutes into the interview.

(Source: Bloomberg)

His comments on operations in Iraq start about 9 minutes into the interview.

Reuters reports that Qatar-based Gulf Bridge International (GBI) is completing the final stages of a submarine cable network that will give Iraq fast, reliable connections to other parts of the world for the first time.

The network, expected to be fully operational by the end of the year, consists of a 13,000 km (8,078 miles) undersea cable system that will link all six Gulf Cooperation Council (GCC) countries as well as Iran and Iraq, with onward connections to Sicily and India.

"Nations in the region have seen tremendous growth in the demand for broadband, roughly doubling each year. The demand is very clear. Increased speed and reliability are essential, and will be a catalyst for the development of other sectors of their economies (besides oil and gas)," GBI Chief Executive Officer Ahmed Mekky (pictured) told Reuters in a telephone interview.

"The region needs increased connectivity, as the existing infrastructure isn't enough to meet the demand."

The project , launched in 2008, will be the first cable network to land in Iraq, a country where still only under 3 percent of the population is connected to the Internet.

The initiative was partly motivated by the multiple cable outages in 2008, which cut off tens of millions of users in the Middle East and India when submarine cables were damaged.

"That supported our case, and increased interest in the project," Mekky said.

The company has invested $500 million in the project so far and is considering an expansion eastward into Singapore, likely in the second or third quarter of 2012, Mekky said, adding that he viewed Iran as another highly promising market.

"Iran is just as hungry for telecom services as any other market in the Middle East. It has a very young population which is growing. Internet use and mobile connectivity are an essential part of life, and we are happy to be able to provide it to them."

The firm's shareholders include regional sovereign wealth funds such as Qatar Investment Authority (QIA), Kuwait Investment Authority (KIA), as well as Qatar Foundation.

Its regional partners include Qatar Telecom (Qtel), Vodafone Qatar, Bahrain Telecommunications (Batelco) , Oman Telecommunications Co (Omantel), Dubai's du and Iran's ITC, Mekky said.

The company is also considering an initial public offering in upcoming years, he said.

"We are considering that, maybe in a couple of years," he said.

(Source: Reuters, Gulf Bridge International)

Reuters reports that the United Arab Shipping Company (UASC), which is jointly owned by a group of Gulf Arab states and Iraq, has picked banks for investor meetings in advance of a possible bond issue.

Deutsche Bank, Mitsubishi UFJ and UBS will arrange meetings for the company.

Roadshows will begin in Singapore on Thursday, and continue in Hong Kong on Friday, Abu Dhabi and Dubai on Nov. 28 and London on Nov. 29, before concluding in Switzerland on Nov. 30.

A dollar-denominated bond from the company will be the first time it has issued public debt in any currency, a source at one of the lead arrangers told Reuters.

UASC is unrated and will not be seeking a credit rating ahead of any potential issue given its ownership structure -- it is owned by the governments of Saudi Arabia, Qatar, Kuwait, United Arab Emirates, Bahrain, as well as Iraq.

The firm signed a $302 million term loan facility in February to back the acquisition of three A13 vessels ordered from Samsung Heavy Industries.

(Source: Reuters)

Foreign investors’ appetite for Iraq’s stock market is rising before planned IPOs by the country’s three mobile telephone operators, but the fledgling market’s small size means it may struggle to cope with the listings, according to a report from Gulf News.

The Iraq Stock Exchange (ISX) is an outpost of private sector business in Iraq, which is still dominated by state-run firms. Market capitalisation of the bourse, which started operating in 2004, is about $4bn with average daily trading value only around $2.8mn.

Successful stock market listings of the three mobile phone firms, Asiacell, Korek and Zain Iraq—a requirement of their operating licences—would be seen as a triumph for Iraq’s effort to create a diversified economy and a sign that it was establishing a stable development path after years of conflict.

The listings could also trigger a fresh wave of foreign interest in the market, which currently is heavily weighted towards banks, accompanied by a range of industrial, insurance, hotel and agriculture firms.

ISX chief executive Taha A Abdulsalam has said he expects the initial public offers of shares to double the market’s capitalisation. But with fewer than half of the 85 listed stocks active daily, such a boost in value could destabilise the market.

“The IPOs, first of all, they should put it in the market gradually,” Iraq Communications Minister Mohammed Allawi told Reuters. “If you put all the shares, the price will collapse for sure.”

Taking the companies public will not be an easy task, however. The companies themselves have been reluctant to move quickly until the stock market is more developed and they can be sure of getting good prices for their shares.

Zain Iraq, a unit of Kuwait’s Zain, Asiacell, an affiliate of Qatar Telecom and Korek, part-owned by France Telecom SA and Kuwait’s Agility, all missed an initial August 31 deadline set by the CMC for their listings, which now look likely to go ahead sometime next year.

2nd BASRA OIL & GAS

25- 28 November 2011

Basra International Fair Ground, Al Maqal Port / Basra, IRAQ

19 SPONSORS, 470 PARTICIPANT COMPANIES… THE FOREMOST OIL & GAS EVENT IN IRAQ!

2nd Basra Oil & Gas has exceeded all expectations and has proven it is going to be a much bigger success compared to the first edition. 19 Sponsors and 470 participant companies will welcome the high number of visitors expected. We invite you to participate in this biggest industry event of Iraq, along with local and international companies, global oil & gas giants and state companies from both Iraq and abroad, such as Shell, BP, ExxonMobil, Eni, Petro China, General Electric, Samsung, Siemens, Tenaris, South Oil Company, South Gas Company, Turkish Petroleum, Honeywell, Cameron, FMC Technologies, Mitsubishi and many more.

Largest in Iraq!

The 2nd edition of Basra Oil & Gas, taking place from 25-28 November 2011, is set to be the largest industry event to date in Iraq. It has already exceeded the record of the first event which hosted 218 exhibiting companies in 2010.

High Profile Conference

The conference will be held concurrently with the exhibition, with the theme "IRAQ ON TRACK IN CONTRIBUTING TO FUTURE WORLD ENERGY SUPPLY." As well as international and local industry professionals, officials from state companies and ministries will be joining this important summit. Conference will enable the Explorationists, Geoscientists and Engineers from the Oil and Gas Industry, Service and Manufacturing Companies, Finance, Universities and R & D institutions, to share their expertise, exchange ideas and experiences, update their knowledge and skills and discuss the latest progress and challenges facing the Petroleum Industry as well as, of course, networking and relational development.

Confirmed speakers briefing the conference delegates at the 2nd Basra Oil & Gas will be from; Ministry of Oil , South Oil Company, Qatar Petroleum, Novomet, Chimec, Endress Hauser, Mena Associates & Amereller Legal Consultants, Control Risks, Olive Group and Al Iraq Company for Safety and Fire Fighting Services.

Keynote speakers will be the senior level managers from Oilserv, Shell, Exxon Mobil, Turkish Petroleum Corporation and ENI.

To participate in the foremost oil & gas event of Iraq, kindly send all your enquiries to [email protected] .

Iran and Iraq will be major target markets for Dubai’s newest engineering consultancy, Whitby & Mohajer, says the company’s MEP director.

While the usual target markets of Saudi Arabia, Qatar and the UAE will still be areas of interest, Louise Collins told MEP Middle East said that the intense competition for MEP contracts in those markets was a deterrent.

“A lot of the bigger companies are wary of Iraq right now, but it’s got a lot of money and is looking to rebuild. The Americans are already in there, it seems to be the British and European companies that are hanging back, (being) a little bit more insecure. But there’s certainly a lot of money out there,” she said.

Whitby and Mohajer are currently working on two major projects in Iraq, one a six hundred bed hospital and the other the Council of Ministers building.

“There’s a lot of iconic stuff in Iraq, but we have to be careful how many projects we take in that region. In Iran, it’s the same thing. But you’ve got to spread your risk when you’re going into those kinds of places.”

“Kuwait and Saudi Arabia are flying along and we’re getting a lot of fit outs here in Dubai, so that’ll sustain smaller companies (like us) for a while. There’s going to be a lot of fighting for big projects in Abu Dhabi by the bigger companies, but that’s not going to pick up for a while,” Collins said.

(Source: Construction Week Online)

The head of Invest AD, the Abu Dhabi-based investment firm, sees growth in Iraq and Qatar.

Gulf News reports that performance by the firm's Iraq fund has been particularly strong.

"This year, with political change in the Middle East, performance has been varied, with a large dispersion of returns across the region," executive director Mohammad Al Hashemi said.

"Mena [Middle East and North Africa] markets are down about 11 per cent this year.

"But in Iraq we see a completely different story. Our Iraq fund is up about 27 per cent since October 2010."

(Source: Gulf News)

A Scottish manufacturer of prefabricated buildings has embarked on a major push into the Middle East as it targets construction projects in countries such as Libya and Iraq.

Powerwall, which runs a ten-acre production site in Wishaw and employs about 80 staff, is also locked in talks with potential partners in a string of markets, including Egypt and Syria.

The firm’s fabricated structural frames, reaching up to 22 storeys, can be used in housing developments, schools and hospitals and are said to offer major time and cost savings over traditional building techniques. Its concerted push east comes on the back of two deals in the region.

The company, which began developing its modular building technology in the early 1990s, has just formed a partnership with a Saudi group to form Powerwall Arabia.

It will manufacture and market products under a licensing arrangement in Saudi Arabia and Qatar.

Powerwall has also entered into a partnering agreement with the Al Badie Group in Abu Dhabi to market its building system in a number of “key locations” in the Middle East.

Global sales director Joe Pacitti said the region in general was in a growth phase, with older infrastructure in need of upgrading or replacement. “The whole of the Middle East is looking to increase investment in quality housing, hospital, schools, hotels and the like,” he said.

Powerwall’s global sales director told Scotland on Sunday earlier this year he was confident the firm could build up between £50 million and £100m of international business over the next five to ten years.

Powerwall’s “volumetric” building system is also said to have attracted interest from oil and gas explorers operating in remote regions.

In addition to its main plant near Glasgow, the company has a facility in Udine, in Italy, and employs up to 40 sub-contractors. It turns over some £15m, but is projecting growth of 60 per cent-plus in the next couple of years as the number of licensees multiplies.

(Source: Powerwall)

Asiacell has selected HSBC and Morgan Stanley to manage its initial public offering (IPO) on the Iraqi bourse, according to Bloomberg.

Chief Executive Officer Diar Ahmed told the news agency that the company will offer 25 percent of its shares, but did not specify when.

The company, which is an affiliate of Qatar Telecom, is in talks with Iraqi authorities to complete the listing procedures and set a timeframe, he said.

According to regulations, it should also convert from a limited liability company to a shareholding company before listing on the stock exchange.

Along with its two competitors, Zain and Korek Telecom, it was due to trade 25 percent of its shares on the Iraq Stock Exchange by the end of August, according to the terms of its licence.

Reports were unclear as to whether the three companies will be fined for missing the deadline.

Reuters reports that Zain has also begun the process of changing to a shareholding company, and  has appointed BNP Paribas, Citigroup and National Bank of Kuwait to manage its IPO, while Korek Telecom has yet to invite banks to pitch.

Iraq has 23 million mobile-phone subscribers, according to the Communications and Media Commission.

(Source: Reuters, Bloomberg)

The Qatari petroleum company, Woqod, has revealed a plan to invest in the oil sector through the construction of oil warehouses for logistic support to oil companies in Basra.

The representative of the company, Mr. Khaleel Hassan, said during his meeting with the deputy chairman of Basra Investment Commission that his company has several similar projects all over the world and that they hope to expand their investments to include the south of Iraq.

He added that the project requires an area of land near the oil ports of Basra and that the first phase includes the construction of warehouses to store and transfer energy while the second phase will include fuel and gas projects.

The deputy chairman of BIC, Eng. Haider Ali Fadhil, said that BIC is always seeking to attract Gulf oil companies in order to provide logistic support for Iraqi oil companies; he also said that such projects provide job opportunities for local labour.

(Source: Basra Investment Commission)