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By John Lee.

Forty companies are reported to be bidding for contracts to build and finance the new pipeline from Haditha to Jordan’s Red Sea port of Aqaba (pictured).

Nateq Balasem Khalaf, deputy director general of the state State Company for Oil Projects (SCOP), told Bloomberg that Citibank is among the bidders, adding that other interested banks and companies are from Russia, South Korea, Japan, Italy, China, Egypt, Jordan, and Germany.

The new crude pipeline would carry 1 million barrels a day, including 150,000 barrels a day for Jordan’s domestic consumption, and the rest for export, while the gas pipeline would transport 252 million cubic feet a day, of which 100 million cubic feet would be exported to Jordan.

SNC-Lavalin Group (SNC) is advising the government on ways to build new routes to export oil currently shipped via pipeline to Turkey and by sea through the Persian Gulf.

Khalaf said that the government plans to build and finance a separate section of the network itself to Haditha from Basra, for which it will ask for bids from pipeline suppliers by the end of the year.

Citigroup, a U.S. lender scaling back in some emerging markets, plans to open offices and branches in Iraq to benefit from an estimated $1 trillion of infrastructure spending there, Mayank Malik, the bank’s chief executive officer for Jordan, Iraq, Syria and the Palestinian territories, said in a June 27 interview.

Iraq will start operating its third offshore export facility for crude by the end of the year and plans to upgrade its two onshore terminals at Basra and Khor al-Amaya, Khalaf said. The government is building 16 crude-storage tanks in the southern port of al-Faw, each with a capacity of 58,000 cubic feet. Four are operational, another four are to be completed by the end of July and the rest by year-end, he said.

Iraq is on track to increase crude exports to 3.5 million barrels a day by the end of 2013, Khalaf said. The country produced 3.15 million barrels a day to 3.2 million barrels a day on average in June, according to an e-mailed Oil Ministry statement on June 29.

(Source: Bloomberg)

By John Lee.

Russian oil company LUKoil has announced that its President, Vagit Alekperov (pictured), held talks in Moscow on Sunday with Iraqi Prime Minister, Nouri al-Maliki, and Iraqi Oil Minister, Abdul Karim Luaibi [Elaibi].

The parties discussed the progress of the West Qurna-2 development project, the company’s plans to develop Block-10, and other possible projects in which the company may participate.

In a statement, the company added:

"As was noted by the representatives of the Iraqi leadership, LUKOIL strictly abides by all its commitment as regards the West Qurna-2 project. They expressed confidence that the company would be able to expand its presence in Iraq."

(Source: LUKoil)

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

The Trade Promotion Organization of Iran (TPOI) said on Monday, June 24, 2013, that 72% of Iran’s exports go to Iraq, and revealed that Iraq's imported goods from Iran increased by nearly 15% this year.

The Iranian Fars News Agency quoted TPOI deputy Kiumars Fathallah Kermanshahi as saying that “Iraq receives 72% of the total volume of Iran's foreign trade, and is ranked first as the biggest importer of Iranian goods.”

For years, the UN and Western countries have imposed a series of sanctions against Iran, which is accused of seeking to develop nuclear weapons, under cover of an alleged civil program. Yet, Tehran denies these accusations.

In the most recent round of sanctions against Tehran, US media quoted on Wednesday, June 26, White House spokesman Jay Carney as saying that US President Barack Obama gave the green light to the imposition of sanctions on foreign institutions that purchase or sell significant amounts in Iranian rials, and those who hold amounts in rials in bank accounts outside Iran.

The Iranian rial fell to its lowest level because of international sanctions. The new set of US sanctions included Iran’s automotive manufacturing sector. Iraq is the largest external market for Iranian cars.

Iraqi political analyst Ihsan al-Shammari said, “Iran is convinced that Iraq is currently its only economic lung, and it is normal that Iraq receives the majority of Iranian exports.”

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

On June 18, an Iraqi military source confirmed that the air force command will receive “Alligator” combat helicopters from Russia in the coming period.

In a statement to Al-Monitor, the source, a senior Iraqi army officer, said that "the aircraft will be of the Ka-52 [pictured] and Mi-28NE models from the French Le Bourget Air Show.”

The source, who spoke on condition of anonymity, explained, “The Iraqi air force command will get a new source of strength with the acquisition of this model of helicopter.”

The source continued, saying, “The new Russian aircraft, especially the Ka-52, are distinguished by their ability to lead a squadron of helicopters and play the role of the command post, which defines and assigns the goals of the squadron’s helicopters.”

The source added that the Ka-52 “does not have less technical and combat characteristics than the US AH-64 Apache helicopters.”

This statement came one day after a Russian news agency published information on the completion of a purchase agreement between the Iraqi Ministry of Defense and the Russian government, dating back to 2011.

Iraqi Prime Minister Nouri al-Maliki had visited Moscow to hold negotiations for an arms deal. Yet, it was immediately halted after suspicions of corruption against officials close to Maliki.

By John Lee.

Gazprom has said that it is interested in working further in the oil and gas sector in Iraqi Kurdistan.

Following a meeting in St. Petersburg between the Russian company's Chairman, Alexei Miller [Alexey Miller] (pictured), and KRG President Massoud Barzani, Gazprom issued a statement saying, "in particular, the parties discussed the progress with interaction in oil and gas field exploration, development and operation".

Gazprom Neft, the oil subsidiary of Gazprom, is in the process of exploration activity in the Garmian and Shakal blocks in the southern regions of the Kurdish territories.

(Source: UPI)

Erbil Governorate has compiled and published a list of the top oil companies in Kurdistan [Note: This list was originally compiled and published by Marcopolis - Ed.].

Please click here to see a list of oil companies with licences granted by the Ministry of Oil in Baghdad.

[NEW: An updated list can now be found by clicking here - Ed.]

Listing them by country:

USA

• Exxon Mobil
• Chevron
• Aspect Energy
• Marathon Oil Corporation
• Hillwood International Energy
• Hunt Oil
• Prime Oil
• Murphy Oil
• Hess Corporation
• HKN Energy
• Viking International

Canada

• Forbes and Manhattan
• Western Zagros Resources
• Talisman Energy Inc
• NIKO Resources
• Ground Star
• Shamaran

By John Lee.

UPI reports that Russia has started fulfilling a contract to send attack helicopters and short-range air defense systems to Iraq.

Sergei Chemezov (pictured), Chief Executive Officer of Russian Technologies (Rostec), was quoted by state news agency RIA Novosti as saying:

"The contract is being implemented, the production (of ordered equipment) has started."

Iraq cancelled a $4.2-billion contract with Russia in 2012 following allegations of corruption, though the terms of the deal were renegotiated in early 2013.

Russia's weapons trade has come under scrutiny because of an ongoing relationship with the Syrian military.

(Sources: UPI, RIA Novosti)

The Iraqi Grain Board has reportedly bought 250,000 tons of wheat from Russia.

Aswat Al Iraq says the purchase was made following a bid to buy 500,000 tons of wheat, which was closed last week.

According to Russia Today News Agency, the shipments will be made between 1st and 31st July, 2013, and delivered in August-September.

Iraq bought the wheat in four shipments from four trading companies, at costs of $318.82, $319.69, $325.15 and $328 per ton, including shipping.

Iraq is expected to lose 25-30% of its wheat production this year due to heavy rains in south of the country.

(Source: Aswat Al Iraq)

By John Lee.

Eni has reportedly reached agreement with the Iraqi Ministry of Oil to cut the final production target at Zubair oil field to 850,000 bpd.

Iraqi Oil Minister Abdul Kareem Luaiby [Elaibi] told reporters that he has agreed to the drop from the original target of 1.25 million bpd, and that Eni has agreed to maintain the new level of production for 15 to 20 years.

Russia's Lukoil had already struck a deal to reduce the target for West Qurna-2 to 1.2 million bpd, instead of the earlier-agreed 1.8 million bpd.

BP and Shell are also pursuing talks with the Iraqi oil ministry to reduce final production targets of the Rumaila and West Qurna-1 oil fields respectively.

(Source: Dow Jones)

Turkish officials are dismayed hearing about US concerns that Turkey’s decision to sign an agreement with ExxonMobil in northern Iraq is perceived as a threat to Iraq’s unity.

Noting that it is ExxonMobil, a US company, that is going to do the exploration work in the Iraqi Kurdistan Regional Government's (KRG) area, the Turkish side is curious why the Obama administration would want Turkey — a country that is more than 80% dependent for its energy needs on outside sources — to turn its back on newly rising opportunities in its neighborhood that will help it to diversify its energy portfolio, while giant US oil and gas companies are exempt from such criticism.

According to the Turkish side, it is primarily these giant oil companies that decide how and when these hydrocarbon reserves will come on the market, and that when they make their move it is best to be on board from the beginning. As ExxonMobil took a step in that direction by exploiting the northern Iraqi resources, Turks are saying that it is not even serious to paint Turkey as a country attacking Iraq’s territorial integrity.

“We have a fast developing economy and industry. We have a large population and we don’t have our own homegrown energy resources to match our needs to keep up with the growth,” a Turkish official told Al-Monitor. “ So what it is exactly that the United States wants us to do — that we don’t work with Russia, Iran and Iraq! So, who should we buy our energy from?”

The Wall Street Journal, however, reported on May 14, “US officials fear setting a precedent to let regional governments strike independent resource deals could destabilize [Iraqi Prime Minister Nouri al-] Maliki’s government during a time when sectarian violence in Iraq is mounting.”

The Wall Street Journal also went on to write:

"'Our position on energy trade from Iraq has been consistent and remains unchanged: The United States doesn’t support oil exports from any part of Iraq without the appropriate approval of the federal Iraqi government,' said Caitlin Hayden, a spokeswoman for the National Security Council."

Turkish officials, however, argue that if the Obama administration is worried about rising sectarian conflict in Iraq, they should point fingers at themselves and take responsibility as the former occupier of the country — but not blame Turkey for anything that goes wrong in Iraq. “The problem is in Baghdad, not in Ankara,” one Turkish official told Al-Monitor.

The signing of the agreements does not mean that these resources will be available for consumption on the market tomorrow. It is going to take time, and much can change in Baghdad’s relations with the Iraqi Kurds before then. “We are just watching out for our best interest.”

Tulin Daloglu is a contributor to Al-Monitor's Turkey Pulse. She has also written extensively for various Turkish and American publications, including The New York Times, International Herald Tribune, The Middle East Times, Foreign Policy, The Daily Star (Lebanon) and the SAIS Turkey Analyst Report. On Twitter: @TurkeyPulse