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By John Lee.

The secretary of Iran's Cement Industry Employers Association has said that Iraq has promised to remove its ban on the import of Iranian cement.

Fars news agency quotes Abdolreza Sheikhan as saying that following several meetings between Iranian and Iraqi officials, Baghdad promised to give priority to Iranian exports, once general ban on cement import is removed.

He said Iraq's cement demand is currently met from domestic production.

Iran's cement and clinker exports fell by 20 percent in the Iranian year ended March 20, and stood at 15 million tons.

Iraq had previously accounted for 60 percent of Iran's cement exports.

Last year Baghdad increased tariffs on Iranian cement from $4 to $13.

Iran currently exports cement to some 24 countries including Azerbaijan, Turkmenistan, Afghanistan, Russia, Kazakhstan, Kuwait, Pakistan, Qatar, Turkey, the United Arab Emirates, Georgia, Oman, India, and China.

Last year, Sheikhan warned that Iran is gradually losing its domestic and foreign cement markets.

"Cement supply and demand is not balanced in the market and this has created problems for producers," he said.

(Source: Trend)

By Ahmed Mousa Jiyad.

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

Unaoil Corruption Scandal: International and Iraq update and follow-up

The recent joint report by Australia's Fairfax Media and the Huffington Post uncovering serious international corruption scandal allegedly masterminded by a Monaco based company, Unaoil, has quickly gained publicity, captured  worldwide attention and prompted formal investigations in many countries, including Iraq.

On 1 April, the headquarters of Unaoil and the homes of its executives have been raided by police in Monaco. In a statement, the Monaco government said it was helping British authorities investigate the "vast corruption scandal" revealed in recent days by Fairfax Media and The Huffington Post.

Monaco government statement said that several of the company's senior executives had been questioned between 29-30 March and their homes and headquarters searched following an urgent request from Britain's Serious Fraud Office-BSFO.

The searches and interviews were conducted in the presence of BSFO officers and the items collected during the search will be now be used by the BSFO in their investigations.

Fairfax Media revealed on Thursday, 31 March, that the British police had teamed up with the Australian Federal Police, the US Department of Justice-DoJ and the FBI to investigate the vast cache of emails on which their joint report was based.

The Monaco government said it would not release further details at this stage in case it compromised the investigation. The British, Australian and US authorities above mentioned might make some statements and provide further information on their investigation in the coming days; as more information on this scandal unfolding so we have to keep watching. The implications of such international investigations will not be confined to Unaoil, the corrupting company through deal fixing, but could implicate also a number of American, British, Australian, Dutch and Italian companies among others.

In Iraq, the development of the case has been, unusually, surprisingly and unexpectedly, very fast and substantive indeed.

By John Lee.

Transparency International has said that Iraq has risen one place in its global Corruption Perceptions Index (CPI).

From at total of 175 countries, Iraq came in at number 170, slightly better than last year's position of 171.

This result puts it ahead of countries such as Afghanistan, South Sudan, and Somalia (which came last), and just behind Libya, Turkmenistan, and Uzbekistan.

Denmark came first, again, followed by New Zealand, Finland and Sweden.

The Corruption Perceptions Index is a composite index, drawing on corruption-related data collected by a variety of reputable institutions.

(Corruption image via Shutterstock)

By John Lee.

In its interim financial and operational results for the period ended 30th June 2014, Dragon Oil gave the following update on its operations in Iraq:

In Iraq, the consortium of Dragon Oil (30%) and Kuwait Energy Corporation (70% and operator) is drilling an exploration well. The well is targeting two prospective reservoirs, which, in case of a discovery, are expected to be tested in 2H 2014.

The first target has been reached, coring operation is ongoing. Concurrently, the consortium has completed an environmental impact assessment and environmental baseline studies, as part of the consortium's contractual obligations, in preparation for de-mining work and seismic acquisition.

De-mining activities commenced in early June 2014. 3D seismic acquisition activities are planned for 1H 2015.The work commitment on the block within the initial five-year exploration period will include de-mining, seismic acquisition and interpretation and drilling of an exploration well.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:

"I am pleased to report that revenues increased by 11% in 1H 2014 supported by better realised crude oil prices and higher sales volumes for our entitlement share of crude oil production from the Cheleken Contract Area in Turkmenistan ...

"The Board is pleased to announce an increased interim dividend of 20 US cents. The Board continues to focus on the diversification opportunities for the Group, ongoing capital requirements for all our assets and a strong balance sheet."

(Source: Dragon Oil)

By John Lee.

Transparency International has said that Iraq has fallen one place in its global Corruption Perceptions Index (CPI).

From at total of 177 countries, Iraq came in at number 171, putting it in 7th-last position.

This result puts it ahead of countries such as Libya, South Sudan, and Somalia (which came last), and just behind Syria, Turkmenistan, and Uzbekistan.

Denmark and New Zealand shared first place, followed closely by Finland and Sweden.

The Corruption Perceptions Index is a composite index, drawing on corruption-related data collected by a variety of reputable institutions.

(Corruption image via Shutterstock)

Wide Area Communications specialist Hermes Datacomms has announced the appointment of a key member of staff to the team in Iraq.

Vincent Davies (pictured) is the first British ex-pat to join the team and will take on the role of Technical Manager with the primary aims of improving in-country support and helping to build customer relationships.

With an eight-year military background – including time served in Iraq and Afghanistan – Vincent joined Hermes Datacomms six years ago and has worked on various projects in locations such as Algeria and Dubai.

Commenting on his new job, Vincent said:

“I am very excited about this role and relish the opportunity to use my experience to improve our support infrastructure and country relations with customers.

“My presence in Iraq will help to ensure that we continue to offer the best solutions and that we provide the technical support needed in such a critical environment.”

Hermes Datacomms Middle East CEO Kevin Thorley added: “Our aim is to ensure that all our Middle East customers are provided with in-depth, direct and extensive support, and a more dependable and secure service that not only keeps up with the growth in the region but also exceeds customer and industry expectations.”

Hermes Datacomms specialises in providing tailored Wide Area Communications to the upstream oil and gas industry worldwide including remote and challenging locations such as Algeria, Angola, Malaysia, Kazakhstan, Libya, the Middle East, Iraq, Russia and Turkmenistan.

The company has been operating in the Middle East for more than a decade and established its Dubai office in 2008 to answer growing demand in the region. Rapid expansion since that time has led to ongoing strategic planning initiatives looking at expansion plans for operational capabilities and planned additions to the current 25-strong workforce.

Hermes Datacomms was awarded a trading license for Iraq in late 2011 and, since that time, has been working with partners to delivery turnkey projects involving fibre and last mile access as well as VSAT services, fixed, mobile and microwave services.

The Middle East Association (MEA) is pleased to inform you of the UKTI UK-Turkey Partnership for Opportunities in Iraq and Caspian Gas Forum, which are taking place at the Çırağan Kempinski Hotel in Istanbul during 3-5 July 2012.

Tickets are available for either event or both events together, and UK-based delegates can receive 20% discount if they book via UKTI Istanbul’s promotional code. Further details below.

On Tuesday 3rd July, UKTI will be putting on a Pre-Forum Masterclass: UK-Turkey: Partnering for Opportunities in Iraq.

This masterclass will uncover the latest developments in commercial partnerships in Iraq. It is important to understand the current political, cultural, and economic landscape in a country which is recovering from recent turmoil, and this masterclass will consider from political, business and strategic points of view an assessment of the likelihood that Iraq will reach its oil and gas production targets.

Speakers specially invited will explore the current estimated production targets, and what would be the likely global demand for Iraqi hydrocarbons, as well as key issues affecting companies currently operating in Iraq or considering entering the market, what new entrants should consider, and tax considerations.

After the event, there is a Networking Reception held at the Consulate in British Istanbul that will bring together 100+ key decision makers from British, Turkish and Iraqi Oil & Gas industries as well as from the Caspian region.

Speakers include:

• Michael Howard, Advisor to the Minister of Natural Resources, Kurdistan Regional Government – Iraq
• Saad Sadollah, Commercial & Business Development Advisor, Ministry of Natural Resources, Kurdistan Regional Government – Iraq
• Mehmet Sepil, President, Genel Energy
• Tony Hayward, CEO, Genel Energy
• Edward Oakden, Managing Director, Strategic Trade, UKTI’s Executive Team Member
• Jennifer Coolidge, Executive Director, CMX Caspian and Gulf Consultants
• Murat Yazici, Managing Partner, Yazici Law Offices

The event schedule is:

• 12:00 Registration and Light Lunch
• 13.15 Official Executive Briefing Welcome Address
• 13.30 Panel Discussion: Assessing the Latest Challenges and Opportunities of Doing Business and Creating Long Lasting Commercial Partnerships in Iraq
• 14.15 An Assessment of the Likelihood that Iraq Will Reach its Oil and Gas Production Targets
• 14.35 Specific Challenges for New Entrants to the Market
• 14.55 Special IOC Case Study
• 15.15 Networking & Refreshment Break
• 16.00 Panel Discussion: Assessing the Latest Challenges and Opportunities for IOC’s in Erbil
• 16.45 What Role Can Turkish Companies Play in Promoting Investments in the Kurdistan Region?
• 17.05 What are the Proposed Production Sharing Contracts and partnerships?
• 17.30 End of Workshop
• 18.00 Bus Transfer to Pera House, British Consulate-General (BCG), Istanbul
• 19.00 Networking Reception at Pera House, BCG, Istanbul, sponsored by UKTI

On Wednesday 4th and Thursday 5th July, Gastech Specialist Events will host the Caspian Gas Forum.

Bringing together government officials, IOCs, NOCs, operators, EPC specialists, local contractors and regional experts, this event will explore the key areas which will require further commitment and investment, and the significant geopolitics between the major players in the region.

It will cover developments throughout the region, including those in Azerbaijan, Uzbekistan, Georgia, Turkmenistan, Kazakhstan, Iraq, Iran, and Turkey (the gateway of Caspian gas to Europe), as well as surrounding countries influenced by the region. For more details, please visit the website:http://www.caspiangasforum.com/

Forum Highlights include:

• An overview of the geopolitics in the Caspian region: market entry and overcoming the risks of investment
• Developments in exploration and drilling: understanding the broader potential for gas beyond Shah Deniz
• The Southern Corridor: keeping the lights on in Europe
• Bringing Shah Deniz gas from the Caspian and Middle East to Europe
• Azerbaijan: open for business and a lynchpin for upstream developments
• The view from Northern Iraq: what are the challenges, where are the opportunities?
• An overview of the gas markets that are affected by the Caspian region
• Turkmenistan: what do investors really need to know?
• Turkey: the key player in the European gas market?
• How do the recent discoveries in the East Mediterranean affect Caspian gas supply in the medium and long term?
• Project updates from the Trans Caspian, Trans Adriatic, South Stream and White Stream Pipeline
• Kazakhstan: the development of the Kashagan oil and gas field
• The impact of Chinese high demand for energy on Caspian gas supply
• Iran: a potential game changer for the global gas market?

New Speakers Confirmed include:

• Reha Aykul Muratoğlu, Head of Transit Petroleum Pipelines Department, The Ministry of Energy and Natural Resources, Turkey
• Selami Incedalci, General Director of Petroleum Affairs, The Ministry of Energy and Natural Resources, Turkey
• Orhan Duran, Chairman, PETFORM
• Philippe Hochart, Vice-President Caspian Iran, GDF Suez

Discounted rate for those registering through UKTI

Further details are on the attached. UK companies that are interested in registering for the event(s) will be able do so by using UKTI’s promotional code of UKTICASPGAS and contact Darya Manaenkova, [email protected] or +44 (0)203 615 2871 to ensure that they receive the preferential rate by quoting the reference above.

Overseeing UKTI’s participation in the event are Basak Toker (Tel: +90 212 334 64 69 / [email protected]) and Sibel Bilgin ([email protected]) in Istanbul. Please note that these are not MEA events; any enquiries should be directed towards UKTI.

Iraq has improved its position in Transparency International’s Corruption Perceptions Index from 4th worst to joint 8th worst.

This places it ahead of Somalia, North Korea, Burma (Myanmar), Afghanistan, Uzbekistan, Turkmenistan, and Sudan, and on a par with Haiti.

The improvement is to praised, but being behind countries such as Venezuela, the Democratic Republic of Congo, and Zimbabwe, is hardly cause for celebration.

Rahim Hassan al-Uqailee [Judge Rahim al-Akili; al-Ugeily], stepped down as head of Iraq’s Integrity Commission in September, sharply criticising interference in his inquiries, and saying he had lost political support for his anti-corruption efforts since the beginning of the year.

Iraq has applied to join the Economic Cooperation Organization, or ECO, Turkey's President Abdullah Gul has reported, according to an article at the weekend from World Bulletin.

Leaders of ECO-member countries gathered in Istanbul for a one-day summit meeting during which Turkey assumed the rotating term presidency from Iran. Iraq, as well as Qatar and Syria participated in the ECO summit as guest countries.

The meeting was attended by delegations of the Islamic Republic of Afghanistan, the Republic of Azerbaijan, the Islamic Republic of Iran, the Republic of Kazakhstan, the Kyrgyz Republic, the Islamic Republic of Pakistan, the Republic of Tajikistan, the Republic of Turkey, Turkmenistan and the Republic of Uzbekistan. The representatives of ECO Specialized Agencies and Regional Institutions also participated in the meeting. Also, present in the meeting were the representatives of the Turkish Cypriot State, Developing 8 (D-8), International Road Union (IRU) and Black Sea Economic Cooperation Organization (BSEC).

Turkish President said that all ECO-member countries have welcomed Iraq's bid.

"I hope Iraq will become a member," told a press conference following the summit.

ECO was co-founded by Turkey, Iran and Pakistan in 1985 in a bid to develop economic, technical and cultural cooperation between member countries. In 1992, Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan joined the organization.

President Gul also said that Azerbaijan applied to ECO secretariat to be a part of ECO Trade & Development Bank which he said was a major dynamo of economic activities within ECO zone. Istanbul-based bank, which was founded by Turkey, Pakistan and Iran, has a paid-in capital of 230 million USD.

Gul said the bank would finance an number of important projects and added that Asian Development Bank and Islamic Development Bank had plans to be partners with ECO Bank.

(Source: World Bulletin, ECO)

The Nabucco pipeline project has taken another step forward. At their latest Steering Committee meeting in Ankara, the shareholders agreed on a modification of the feeder line concept.

Two feeder lines were confirmed and the respective engineering works were ordered but due to the current political situation, Nabucco Gas Pipeline International is not planning a third one to the Turkish-Iranian border so far.

There will be a feeder line to the Turkish-Georgian and to the Turkish-Iraqi border. The planned route offers a wide range of supply sources for the Nabucco gas pipeline, which will receive gas from Azerbaijan, Turkmenistan and Iraq.

Nabucco is a multi-sourcing project and will as such not rely on a single source or supplier for the operation of the pipeline. The Caspian region and the Middle East are among the world's richest gas regions and have large potential for gas export to Europe. These regions will therefore play a crucial role both in diversification and security of supply. The investment for the pipeline is 7.9 billion Euro.

Nabucco is the new gas bridge from Asia to Europe. It will directly connect the world’s richest gas regions - the Caspian region and the Middle East, to the European consumer markets. The pipeline will link the Eastern border of Turkey, to Baumgarten in Austria - one of the most important gas hubs in Central Europe - via Bulgaria, Romania and Hungary

The Nabucco shareholders are: Bulgarian Energy Holding (Bulgaria), Botas (Turkey), MOL (Hungary), OMV (Austria), RWE (Germany) and Transgaz (Romania). Each shareholder holds an equal share of 16.67% of Nabucco Gas Pipeline International GmbH. It is the shareholders who are responsible for the negotiation of gas contracts.