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A deal for US fighter jets and tanks will not be stopped by political instability, reports Al Jazeera.

The deal is reportedly for USD11bn-worth of weaponry. Since the US pulled out its remaining troops two weeks ago, violence has increased, arrest warrants have been issued against senior politicians opposing prime minister Nouri al-Maliki, and opposing factions have made demands for decentralising power to such an extent and in such a way that it would probably require amending the constitution.

Alexandre Vautravers, editor of Swiss Military Review, told Al Jazeera: "If the US did not sell weapons to Iraq, the weapons would still materialise, perhaps from Russia or China, or perhaps from Iran."

Although the weaponry is advanced, it is not cutting edge. "The types of weapons which have been sold, F-16s, M1 Abrams tanks, these vehicles, these aircrafts, have been designed 20 or 30 years ago."

According to Vautravers, the US accounts for nearly 60% of arms sales to the Middle East.

(Sources: Al Jazeera)

Bloomberg reports that Iraq bought 400,000 metric tons of wheat from Russia, Australia and Canada.

The amounts were:

• 150,000 tons from Canada;
• 150,000 tons from Russia; and,
• 100,000 tons from Australia,

Hassan Ismail Ibrahim, director general of the Grain Board, told Bloomberg by telephone. The deadline for the tender expired on 4th December.

Iraq plans to import 3 million tons of wheat next year, with tenders starting in January.

Iraq uses 4.5 million tons of wheat a year and the country’s wheat production for 2010-11 was 1.73 million tons.

(Source: Bloomberg)

Russian news agency RBC Daily reports that Lukoil, Russia’s second-largest oil producer, is looking to expand its business in Iraq through buying part of ExxonMobil's 60% stake in the West Qurna 1 field.

If the deal goes ahead Lukoil would hold 37.5% of the business. It is already in partnership with Norway's Statoil in the development of the West Qurna-2 oil field.

Vice CEO Leonid Fedun says Lukoil is interested in developing West Qurna-1.

The report quotes Alexey Kokin, analyst in Uralsib Capital, as saying “ExxonMobil is probably giving up the project, because its economics are not clear yet. It requires $15-20 billion to be invested in the next 20 years.”

Anglo-Dutch Shell is reportedly going to buy the rest of ExxonMobils’s share. The purchase would increase Shell’s share from 15 to 37,5%. The Iraqi state North Oil Company holds 25% of the project.

(Source: RBC Daily)

Russia's Gazprom Neft expects to start commercial production at Iraq's Badra (Badrah) gas field in August 2013, according to Reuters.

Initial production is expected to be 15,000 barrels per day.

The company said it commenced drilling the first appraisal well on Thursday.

"The results of the initial appraisal wells will allow us to better understand the geology of the location, produce a definitive operating plan and move to commercial production of at least 15,000 barrels of oil per day in August 2013," Vadim Yakovlev, Gazprom Neft's first deputy head, said in a statement.

In January, Iraq signed a deal with Gazprom Neft, Turkey's TPAO, Korea's Kogas and Malaysia's Petronas to develop Badra oilfield, which has estimated reserves of 100 million barrels of oil. The field is near Iraq's border with Iran.

(Source: Reuters)

The Russian news agency RT produced this report on corruption in the US military in Iraq:

(Source: RT)

Waterford Finance & Investment Limited disclosed after the close of Monday's business on the London Stock Exchange it has increased its holding in Gulfsands Petroleum to 12.7%.

This follows an increase to 6.39% on Wednesday, and to 9.27% on Friday.

Waterford is an investment vehicle controlled by Russian investor Michael Kroupeev.

Shares in Gulfsands Petroleum (LSE: GPX) were up 4.5% on Monday.

Iraq is expected to compete with both Iran and Russia in the natural gas market in Turkey and Europe, thanks to its geographic location and prices, according to a report from Al Sumaria TV.

A marketing expert on the sidelines of the Kurdistan Oil & Gas conference told the agency:

“The European Union has real interests in Iraq’s Kurdistan region. Kurdistan’s biggest opportunities will be coming from the European Union which wants to import gas from Middle East and Kurdistan region is on its borders. Turkey’s demand for gas will double in the upcoming decade and Kurdistan region should move along in works and start competing in that market.”

Saad Saadallah, trade counselor for the Ministry of Natural Resources in the Kurdistan Region Government said:

“Kurdistan region can start exporting gas after meeting all the needs of the local market. It would be able to aim at Turkish market by the year 2015 and to start competing with Russia and Iran, which is possible because of its geographic location.”

Aydın Selcen, Turkish consul general in Erbil said that Turkey’s development rate is very high and it should diversify its oil and gas import sources:

“We [import] a lot of gas from Russia and the best alternative would be Kurdistan region ... Turkey aims to reach the highest level of synergy with the region and we are doing so through highways, airlines as well as oil and gas transportation pipelines via the borders.”

“The development in oil and gas sector in Kurdistan region raised my interest”, said Jennifer College an expert in oil and gas affairs.

Turkey and Azerbaijan signed contracts to transport gas to turkey and via turkey towards Europe which raises the importance of Iraqi gas and helps to develop oil and gas transportation pipelines from Iraq to Turkey and via Turkey towards Europe, the expert added.

Iraq Kurdistan region has 45 billion cubic meters of gas reserves, sources in KRG confirm. Dana Gas and Al Hilal Oil, Emirati companies invest in Kurdistan gas sector. The two companies’ sources say they spent 900 million dollars as investments and produce nowadays 300000 cubic meters of gas used mainly to supply Kurdistan power plants in Erbil, Suleimaniyah and Duhok with their needs.

(Source: Al Sumaria TV)

(Picture: Dana Gas)

A local newspaper in Georgia, USA, reports that some local residents are buying Iraqi dinars in cash form, in the hope of profiting from a revaluation of the currency.

According to the Moultrie Observer, people are buying boxes of crisp Iraqi dinars that look fresh off the printing press. It goes on to quote a local commodities trader as saying he could possibly think of worse investments than Iraqi money at this time, but would be hard pressed to do so:

"If you want to make a wild investment, I'd buy Russian rubles ... It (the dinar) would be one of the most foolhardy investments you can make."

Meanwhile, CNBC columnist Kelley Holland says the dinar is the subject of a variety of scams, and regulators and watchdogs are sounding alarms:

"If someone has been telling you about the rosy prospects for the dinar, please, please, be careful. It's almost certainly too good a story to be true."

On Thursday, Komo News in Seattle, Washington, ran a news report on the dinar and interviewed one woman who had actually bought what she believes to be Iraqi dinars on the internet. You can find the full video report on the next page ...

ARINC Engineering Services, LLC today announced it has completed the procurement, integration, testing, and installation of new Air Traffic Control Tower (ATCT) systems and equipment for two bases of the Iraqi Air Force.

The new technology will allow Iraq’s Air Force to establish efficient operational control with modern equipment in the control towers at Tikrit and Taji Airbases, as part of the rebuilding of Iraq.

ARINC performed the work under a U.S. Air Force Foreign Military Sales (FMS) contract, awarded by the USAF Electronic Systems Center (ESC) Aerospace Management Systems Division.

ARINC completed the first equipment installation earlier this year at Tikrit Airbase, and the second installation at Taji was handed over to representatives of ITAM, the Iraq Training and Advisory Mission, in September. ARINC’s Charleston, SC-based installation and integration team completed both of the technology installations despite disruptions caused by construction delays and frequent brownouts.

“The team’s ability to improvise, adapt, and overcome was key to ARINC’s success on the ground in the dynamic environment of post-war Iraq,” stated Rivers Cleveland, ARINC Director. “The success of this project is a testament to the collaboration and teaming of the Electronic Systems Center, ITAM, and ARINC.”

ARINC’s work enables the U.S. government to deliver turnkey operational Air Traffic Control Towers to the Iraqi Air Force as part of the rebuilding of Iraq. It is a key step in helping them operate autonomously with modern facilities and equipment. The new equipment replaces outdated Russian systems and will allow Iraqi personnel to manage their airspace in accordance with modern FAA guidelines. This could open the door for more civilian overflights, and possibly the opportunity for increased revenue.

The U.S. Air Force FMS contract was managed by the ARINC Engineering Services Program Office in Charleston, SC. ARINC Engineering Services will continue to provide maintenance and logistics support services at Tikrit and Taji to maintain the equipment installed as part of this program.

ARINC Incorporated, a portfolio company of The Carlyle Group, provides communications, engineering and integration solutions for commercial, defense and government customers worldwide. Headquartered in Annapolis, Maryland with regional headquarters in London and Singapore, ARINC is ISO 9001:2008 certified.

(Source: ARINC)

The Provincial Council of Thi Qar [Dhi Qar] has announced that the ministry of electricity has approved the award of a contract to build a 500-megawatt power station to a local company.

Aswat al-Iraq reports that the council expects the work to start this month, after verifying the company's records and abilities.

The contract had previously been withdrawn after the resignation of ex-electricity minister Raad Shalal, as Deputy Premier for Energy Affairs Hussein Shahristani cancelled all contracts with Iraqi companies.

There are two power generation stations in Thi Qar. The first was built by a Russian company in 1978 and has a capacity of 800 megawatts, and the second is the gas powered station with 40 megawatt capacity.

(Source: Aswat al-Iraq)