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

An Iraqi blogger wrote on the Facebook page "Buying and Selling Weapons in Iraq,” an account he also manages: “Needed anti-armor rocket propellers. Anti-personnel missiles available."

This Facebook page consists of countless posts that promote the sale and purchase of various types of arms in Iraq.

The weapons trade in Iraq is thriving and has become a public affair due to widespread "social militarization” and the escalating war against the Islamic State (IS), which is now occupying extensive territories in northern and western Iraq.

A trader in Babil, a city located 100 kilometers (62 miles) south of Baghdad, and its surrounding regions told Al-Monitor on condition of anonymity that the price of weapons has risen. “The price of a Kalashnikov rifle, which is the most sought-after in Iraq, varies between $350 and $900, depending on its buttstock. The price of a two-handed Czech- or Romanian-made rifle ranges between $600 and $1,000," he said.

Abdel Amir Hasan who owns a shop in Hillah, the capital of Babil governorate, told Al-Monitor, “Most traders, if not all, have at least one gun [for personal use], which has become indispensable at work, in the car and at home. Some people including doctors and workers find a gun insufficient and possess a machine gun as well.”

Iraqi society has seen an increase in fighting against IS in particular and arms possession among civilians is common, as they no longer fear buying weapons, even the mid-range ones. Sheikh Mazen al-Kallabi, who is one of the prominent tribal sheikhs in Babil governorate, said in an interview with Al-Monitor, “Inhabitants of rural areas and tribal members are usually better armed than citydwellers. [Tribal members] mostly carry single-handed or two-handed guns.”

Kallabi, who bought a gun for $900, added, “Most [tribal members] own dozens of PKC machine guns and the security authorities are well aware of that.”

By Patrick M Schmidt.

The Dubai-based division of the Russian oil company, Lukoil announced revise production figures for the West Qurna-2 fields.

The company began production in March 2014 with an output of approximately 120,000 barrels of oil per day. Current production levels are now at 300,000 barrels of oil per day.

It is expected output will reach 400,000 barrels of oil per day by next year.

West Qurna-2 has an estimated 13 billion barrels of oil in reserve and is located approximately forty miles from the city of Basra.

(Source: Gulf News)

By Patrick M Schmidt.

Concerns are now mounting with Western defense agencies that the Islamic State (IS) has gained control of Syrian fighter jets. It is believed the captured at least three jets during their assault of the Syrian air force base, al-Jarrah.

The fighters may be receiving training from Iraqi pilots who have defected to the Islamic State. The jets would be an addition to the vast array of weaponry the Islamic State has seized following assaults on Iraqi and Syrian military installations.

Initial reports suggest the aircraft have been flown at low altitudes for only a few minutes at a time. It is also believed that the aircraft are Russian-made.

The United States military says it will continue to conduct strikes against the Islamic State and will investigate these claims as they currently have no information on the issue.

(Source: Reuters)

(Terrorism image via Shutterstock)

By John Lee.

Lukoil President Vagit Alekperov has said that his company has invested $6 billion dollars so far on operations in Iraq.

At a meeting with Iraqi Oil Minister Adel Abdul-Mahdi [Adil Abd al-Mahdi] in Baghdad, Alekperov said:

"Lukoil is now working on geological exploration projects with other foreign companies in the 10th exploratory area ... I believe the appropriate circumstances were made for investing in Iraq that guarantees the rights of the investors."

First oil was produced from Lukoil's West Qurna in March. The company, Russia's largest private oil company, signed a contract revision in June to build two 75-mile pipelines and associated infrastructure.

(Sources: UPI, Ministry of Oil)

By John Lee.

Lukoil president Vagit Alekperov (pictured) is to meet Iraq's Minister for Oil, Adel Abdul-Mahdi [Adil Abd al-Mahdi], to discuss the expansion of the company's operations in the country.

The head of the Russian oil company told journalists:

"I will be in Baghdad on October 13 to meet the oil minister. I hope, we will continue our talks on the expansion of our operations in Iraq."

Lukoil currently has a 75 percent stake in Iraq's giant West Qurna-2 oil field in Iraq, and has the right to further develop and explore Block 10, which lies 120 kilometers to the west of Basra.

The company is also believed to be considering a joint venture with Russian state-owned exploration and production company Zarubezhneft to develop the Nassiriya oil field and help build an associated refinery.

(Source: RIA Novosti)

By John Lee.

Rudaw reports that Russia's Gazprom Neft has been forced to halt operations at its Halabja block following demonstrations by hundreds of protestors from 34 villages around the town of Darbandikhan.

According to the report, the protesters have given the oil company until 20th October to stop all exploration activity, claiming that “scientific evidence shows work conducted by this company is lethal and damages the environment, air, water wells and springs - and such changes are irreversible.”

They also demand that all oil companies leave the region and that the Kurdistan Regional Government (KRG) drop its drive for independent oil exports, insisting that it should focus instead on tourism and agriculture.

Gazprom Neft is involved in three projects in the Region - Shakal, Garmian and Halabja - and estimated geological reserves for all three are more than 1.3 billion tonnes of oil. In the Halabja block, the company is conducting geological surveys.

(Source: Rudaw)

By John Lee.

In its interim management statement issued on Tuesday, Russian-based HMS Group said that since the start of this year it has signed several contracts for business in Iraq.

The contracts, which it values at about 1 billion rubles ($25 million; 29 billion Iraqi dinars), were signed with Russian and international oil and gas majors.

The deals are for the supply of water injection pumps, booster pumps, upstream process equipment and a contract for the provision of short-term repair services, refurbishment and supply of pumps and auxiliary equipment.

(Source: HMS Group)

At an international conference in Paris, the five permanent members of the U.N. Security Council, representatives of European and Arab states, and representatives of the EU, Arab League and United Nations, have all pledged to help the government in Baghdad fight against Islamic State militants.

The full statement from the French Ministry of Foreign Affairs is shown below:

Communiqué from the Ministry of Foreign Affairs and International Development

Paris, September 15, 2014

1. At the invitation of the President of the French Republic and the President of the Republic of Iraq, an international conference on peace and security in Iraq was held today in Paris.

2. The conference participants (Bahrain, Belgium, Canada, China, the Czech Republic, Denmark, Egypt, France, Germany, Iraq, Italy, Japan, Jordan, Kuwait, Lebanon, the Netherlands, Norway, Oman, Qatar, Russia, Saudi Arabia, Spain, Turkey, United Arab Emirates, United Kingdom, United States of America, Arab League, European Union, United Nations) expressed their commitment to the unity, territorial integrity and sovereignty of Iraq. They welcomed the formation of a new government under the authority of the Prime Minister, Mr Haïdar al-Abadi, and offered him their full support to strengthen the rule of law, implement a policy of inclusiveness, and ensure that all components are fairly represented within the federal institutions and all citizens are treated equally. All of these measures are necessary in order to successfully combat Daech (ISIL) and terrorist groups, which represent a threat to all Iraqis.

3. The conference participants asserted that Daech (ISIL) is a threat not only to Iraq but also to the entire international community. They condemned the crimes and acts of mass violence that Daech (ISIL) commits against civilians, including the most vulnerable minorities, which may amount to crimes against humanity. They agreed to cooperate and do everything to ensure that the culprits are brought to justice. They confirmed support for the inquiry led by the Office of the High Commissioner for Human Rights to that end.

By John Lee.

Russia's Gazprom Neft, the operator of the Badra oil field (pictured) in Iraq, has announced that first oil from the field is now being delivered to Iraq’s main pipeline system for transfer to the export terminal in Basra, on the Persian Gulf.

Current deliveries from Badra to the pipeline stand at over 15,000 barrels of oil per day and this level should be maintained until the end of 2014.

According to the service contract with the Government of Iraq, the consortium of investor companies will begin receiving a share of the oil produced at the field after a period of 90 days following launch of commercial supply.

All of the oil produced in southern Iraq, including at Badra, is Basrah Light oil. The Iraqi State Oil Marketing Organization (SOMO) is responsible for oil sales and each quarter will be delivering a share of oil to the investor companies to reimburse their initial project costs.

Once these project costs have been covered, the investor companies will receive remuneration in kind for ongoing development at the rate of $5.5 of oil per barrel produced. Each investor company will be selling their share of oil independently.

First oil from the Badra field was produced in December 2013. Final commissioning at the field and testing of production and transportation infrastructure began in May 2014. Two wells are currently in production at the field and a further three wells are being drilled under a contract with the Chinese company ZPEC. According to the service contract production at the field will achieve 170,000 barrels of oil per day.

Alexander Dyukov, Chairman of the Management Board of Gazprom Neft, said:

"Over the period of just a few years, a consortium of companies led by Gazprom Neft has fully prepared Badra, one of the most complex geological field structures in Iraq, for full-scale commercial development.

"This is the first major international project in upstream the company has implemented from scratch. The unique experience gained during this project will contribute to our development of future projects both in Russia and internationally".

The field is being developed by Gazprom as lead partner (30% stake), along with Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

(Sources: Gazprom Neft, KOGAS)

By John Lee.

China expert Simone Van Nieuwenhuizen has written an opinion piece for The Diplomat, a foreign affairs journal that covers events in Asia. She argues that it would be in China's interests to do more for Iraq.

In the piece, Van Niewenhuizen notes that not only has China been threatened by the Islamic State of Iraq and the Levant (ISIL) but also supports a UN Resolution condemning terror groups in Iraq and Syria and imports a significant amount of Iraq's oil.

But despite China's involvement in investment and reconstruction in Iraq, the Asian giant has so far avoided any counter-terror commitments currently being pursued by both NATO and Russia, among other countries with interests in the Middle East.

Van Nieuwenhuizen argues this situation may soon change if China wishes to safeguard her MENA region interests. Read the full piece here.

(Source: The Diplomat)