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By Tom Walker, Director, Assaye Risk

COUNTRY OVERVIEW

Little has changed in Iraq this week as al Qaeda (AQ) and Sunni insurgent groups have continued to press home a series of devastating attacks across the northern and central belts of the country.  The security situation in northern Syria and northern Iraq remains febrile and fluid as AQ and its affiliates, most notably the Islamic State in Iraq and Levant (ISIL) continue to battle moderate rebel groups and Kurdish militias in Syria with inevitable implications over the border in Iraq.

As groups freely move between Iraq and Syria the northwest of the country has seen a clear rise in activity during the past few weeks.  The ISIL has seen record numbers of fighters flock to its ranks in recent weeks as success against more moderate rebel groups continue to increase its operational and ideological attractiveness, which will only help the group sustain operations across a wider battles space, including Iraq. Last Thursday the ISIL captured a northwestern Syrian town, Atimiyah, after ousting moderate rebel fighters from the islamist group Suqur al-islam.  Geographically, this action poses little of a threat to Iraq and its security situation but the increasing influence of the ISIL remains a potent threat.  The rise of AQ and ISIL has changed the regional and international diplomatic calculus significantly and has tempered the calls of regional power brokers who desire the removal of the Assad regime. In the long term the possibility of hardline islamist groups gaining strong footholds in large parts of Syria poses its own dilemma, raising serious questions about the potential transnational influences that groups like the ISIL could have on Iraq’s security situation.  In the short to medium term the combat experience and increase in capacity and capability the ISIL has seen will continue to pose serious challenges for the Iraqi security forces (ISF) as ISIL fighters migrate freely between operations in Iraq and Syria.

Thursday also saw an Iraqi Shia militia group, reportedly backed by Iran, fire a salvo of mortars into Saudi Arabia in  an attempt to attack a Saudi border crossing point, with little physical damage reported.  In a statement to the press Wathiq al-Batat, commander of Iraq's al-Mukhtar Army militia said, "The goal was to send a warning message to Saudis to tell them that their border stations and patrol are within our range of fire," a comment that was linked to calls by the same group for Riyadh to stop meddling in the affairs of Iraq.  Just how potent a threat this is remains to be seen but government temperance will most likely ensure that it does not develop into anything of scale.  It is most likely in response to calls by Baghdad for closer ties to Saudi Arabia, where Iraq has not had an ambassador since before the 1990s Gulf crisis.  Shia groups harbor multiple suspicions against Sunni Saudi Arabia and Kuwait, both of who have been supporting Sunni rebel groups in Syria and this action is more likely linked to a spill over of aggravated Sunni-Shia antagonisms.

The latter part of the week saw significant insurgent activity along the Tigris River valley and into Baghdad.  A car bomb in the busy market town of Sadiya, some 65km north of Baghdad, killed at least 25 people and wounded over 50.  Further south in Taji, 20km from Baghdad, a suicide bomber attacked a police checkpoint (one of many attacks specifically targeting the ISF) and killed 4 police officers and wounded 8.  Later in the day the final round of high impact attacks killed 7 and wounded 18 as 3 separate bombs exploded in the western Baghdad district of Amiriya.  Altogether over 45 people were killed across the country on Thursday as northern cities and Baghdad continue to suffer from almost daily attacks, predominantly around religious sites, public social areas and ISF facilities.

By John Lee.

Oil Review Middle East reports that the Kuwait-based Safwan Petroleum Technologies Company (SPETCO) has said that it is looking to expand its upstream oil and gas services in Iraq and Saudi Arabia.

Anish Abraham, the company's manager of OFS/BD, told ORME that its specific attention in terms of marketing and distribution was towards Erbil in Iraq and Saudi Arabia.

The company provides upstream services ranging from well testing services, artificial lift systems, production facilities, tubular services.

Currently, SPETCO operates in Kuwait and the UAE and has set up a branch in Erbil.

(Source: Oil Review Middle East)

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With the fourth edition of the Iraq Future Energy Conference approaching, experts – Mr. Falah Al Khawaja, former Director General for oil projects at State Company for Oil Projects (SCOP), and Mr. Ali Alwash, General Manager at State Company for Oil Projects (SCOP) - participating at the conference discuss the developments in the Basra fields, current and upcoming pipeline projects in the region, as well as the outcome of the 4th December OPEC output target meeting for Iraq.

Speaking on the importance of the developments in the Basra fields, Mr. Falah Al Khawaja, former Director General for oil projects at State Company for Oil Projects­ (SCOP), confirmed:

“The development of the Basra oil fields is very important for federal Iraq’s energy industry. These fields will raise Iraq’s hydrocarbon supply to about 9 mmb/d of oil including present capacity, and lead to trebling gas output by 2020. This is a huge input to world and local supply. Local refining capacity will be doubled, and Iraq’s power generation needs will be met.”

Referring to how critical is it to have an alternative to the Strait of Hormuz for exports, whilst also providing updates on Iraq’s export pipeline infrastructure project, Mr. Falah, said:

“The Strait of Hormuz issue was exaggerated and may be discarded depending on the ongoing dialogue between the West and Iran. Iraq, however, needs the flexibility of the western route to Jordan and Syria, and the northern route to Turkey.

"Preparatory work for both routes is progressing towards Jordan and Turkey. The southern corridor was never an option; but with the restoration of The Iraqi Pipeline in Saudi Arabia (IPSA), the pipeline to Yanbu remains the aim and a valid option.”

With regards to the current state of the northern route to Turkey he further added:

“The 40 inch pipe line extending from Kirkuk to Cehan in Turkey is badly damaged in the section from Fatha to the border (nearly 400 km) and, accordingly, the whole pipeline has deteriorated considerably from its original capacity. The damaged length is to be replaced.”

Abu Dhabi-based Rotana, a leading hotel management company, announced the general manager and other senior appointments for its new property in Iraq, the five-star Karbala Rayhaan by Rotana.

General manager Nader Mobader, a seasoned hospitality player with 18 years of industry experience in Asia, Africa and the Middle East, has been leading the team through the crucial pre-opening phase and will head the operations when the hotel opens its doors to guests next month.

A native of Lebanon, Mobader is a graduate from Les Roches International School of Hotel Management, Switzerland. Prior moving to Rotana, Mobader worked with several international hotel chains.

Rotana also announced other key appointments, including Ali Kamar who has been appointed to the role of Rooms Division manager, and Wissam Injibar who takes on the position of director of Sales, and Hassan Salameh as executive Chef, overseeing the daily operations of the F&B department encompassing the hotel’s four dining outlets and one meeting room.

Mohamad Haj Hassan, Rotana’s area vice president – Iraq, Saudi Arabia and Sudan said:

“Iraq is a market that holds a great deal of interest for Rotana, and we wanted to make sure that the right team was in place to consolidate our reputation for service and excellence when we opened our second property in the country.”

The Karbala Rayhaan by Rotana will be the first and only five-star hotel to open in the city of Karbala, which annually attracts more than 12 million visitors.

The 200-room, 14-storey hotel is accessible from both Najaf Airport (80km) and Baghdad Airport (130km).

(Source: Trade Arabia)

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

Khurshid, the khajakji (the local word for a smuggler), smiled when he spoke of the border. “It’s a fairy tale for domestic consumption only, not a reality, at least for us,” he said.

Khurshid is a Kurdish smuggler who is now “retired” because of his age. He and many of his colleagues have left the profession and are now in the trade business. They do not use the word khajakji because it connotes an illegal activity. But Khurshid believes he performed a national service for the Kurdish people, as they faced a suffocating, government-backed, decades-long blockade and greatly relied on smugglers for food, fuel and goods.

He told Al-Monitor, “Borders are thought of as official outlets, stations or steel barriers, but the definition is completely different for smugglers who see borders as fluid and overlapping, with thousands of routes that are only known to the people on both sides. ... Millions of Iraqi soldiers and Iranians used to be deployed on both sides of the border between the two countries throughout the Iran-Iraq war (1980-1988). The fighting and shelling was nonstop. Despite that, we never found it difficult transporting supplies, fuel or even people between the two countries.”

Khurshid and Salman al-Shammari, who lives in Mosul and for years smuggled to and from Syria despite the closure of the border throughout the 1970s and 1980s, consider smuggling to be more about timing than location. Borders are considered true borders only when there are official forces guarding both sides, not at other times. So smugglers are good in the “timing” game.

Iraq shares 3,631 kilometers (2,256 miles) of border with six countries: Iran, Jordan, Kuwait, Saudi Arabia, Syria and Turkey, in addition to a narrow sea coast of 58 kilometer (36 miles).

Iraq’s borders are a problem with all its neighboring countries. In addition, there are disputes with a number of countries over the border demarcation line and the ownership of oil wells. Cross-border smuggling has been a major concern for countries in the region.

By John Lee.

China is attempting to increase purchases of its crude by more than two-thirds next year, according to a report from Reuters.

"Iraq is in a lucky position because we always get more requests than we can actually supply," deputy prime minister for energy Hussain Al-Shahristani said on Wednesday at the World Energy Congress in South Korea.

He added that China is requesting 850,000 bpd of crude from Iraq next year.

Saudi Arabia shipped 1.08 million bpd of crude to China in the first eight months of this year, while Baghdad has an annual term deal to sell about 500,000 bpd into China this year.

(Source: Reuters)

Iraqi Foreign Minister, Hoshyar Zebari, has received the credentials of the newly-appointed non-resident Ambassador of Ireland to Iraq, Dr Niall Holohan.

During the meeting, the two sides discussed relations between the two countries, and the Minister urged the Irish Ambassador to open an Embassy in Iraq.

Based in Riyadh, Dr Holohan also serves as Irish Ambassador to Saudi Arabia.

(Source: MoFA)

Reef Subsea Dredging and Excavation (D&E) has secured a number of substantial contracts in the Middle-East and Asia Pacific as the company continues to grow its global footprint.

The Middle-East contracts will involve two teams from the company’s UK workforce managing subsea excavation work in Saudi Arabia and Iraq. The work in the Al Khafji field in Saudi Arabia, on behalf of Technip and Khafji Joint Operations (KJO), is a shore approach cable excavation in shallow waters. Specialist personnel will also be deployed for the post-lay burial of the 165mm composite cable.

The second contract is the first project for Reef Subsea in Iraqi waters working with Leighton Offshore as part of the Iraqi Crude Oil Expansion programme (ICOEEP). The work involves post lay burial of a fibre optic cable in excess of 50km in length in Iraq’s largest producing oil field.

Reef Subsea’s specialist controlled flow excavation tools, the T4000 (pictured) and Twin R2000, will be deployed for both projects, as these can work effectively on live cables and pipelines without compromising the subsea assets integrity. The company has two sets of equipment based in Abu Dhabi for operations in the UAE and surrounding areas.

Niels-Henrik Brodtkorb, Managing Director, Reef Subsea Dredging and Excavation, commented:

"These substantial contract wins in the Middle East and Asia allows us to demonstrate the capabilities of our versatile subsea excavation tools.

"Our employees are highly skilled at operating these tools and bring a huge amount of experience to operations in these global industry projects.

"Increasing our presence and equipment capabilities across the world will allow us to further strengthen our reputation as a leader in subsea dredging and excavation.”

(Source: Reef Subsea)

The World Happiness Report 2013, published by the UN Sustainable Development Solutions Network (UNSDSN), reports that Iraqis are the 105th happiest nation worldwide, out of 156 countries surveyed.

The country scored lower than neighbouring Kuwait (32nd), Saudi Arabia (33rd), Jordan (74th), Turkey (77th) and Iraq (115th).

Denmark headed the table, with Togo in last place.

(Source: UNSDSN)

UAE-based Gulf Precast has signed a contract to build 65 precast schools in various locations in Central Iraq.

The design of the schools and their boundary walls has already been finalised. While the initial part of the production is under way in the UAE, Gulf Precast is already in the process of setting up a production plant in Iraq. This is the first phase of the international expansion strategy of the UAE Precast Leader.

The Precast schools awarded to Gulf Precast are a part of an Iraqi national program to build 1,485 schools across Iraq this year. The schools have been specified using precast construction, and consist of 6, 9, 12, 18, and 24 class rooms. While several potential Precast Manufacturers had been considered, Gulf Precast, which has been operating in the Emirates for the last 28 years, has been selected both for its wealth of expertise and for its readiness to set up a Precast Plant in Iraq.

The Iraq factory will cater for the second production phase of the schools project as well as for the fast-track infrastructure and housing program launched by the Iraq government, delivering quality construction by the UAE expert which handled many iconic projects, such as the Dubai Mall, the Paris Sorbonne University Abu Dhabi, high rise towers in the Jumeirah Beach Residence complex, more than 2,000 villas in the Al Falah Community Development, to name a few.

The new Iraq factory will complement the current 6 UAE plants managed by Gulf Precast as well as its 2 recent additions: its new Al Ain mobile Plant and Abu Dhabi Airport extension on-site Plant. Located in Baghdad, the Iraq factory is designed to produce 200 M3 of Precast per day in addition to 900 M2 of Hollowcore slabs daily.

Omar Araim, the representative of Gulf Precast in Iraq stated:

"The Iraqi government has launched an ambitious program of construction development which can only be achieved if modern performing technologies such as Precast are employed. By being present in the country during the initial stages of this program, companies such as Gulf Precast are positioning themselves as a key actor of the expected national expansion."

Gulf Precast's expansion strategy is not limited to Iraq only, but also includes numerous countries such as Saudi Arabia, Qatar, Libya, Oman, India and or Nigeria, countries in which Joint Ventures are in progress with governmental and private organisations.

Elias Seraphim (pictured), CEO of Gulf Precast declared that:

"The expertise gained by Gulf Precast in the very mature and demanding construction sector of the United Arab Emirates is perceived as a critical success factor by many of our Joint Venture partners or intended partners.

"They, in turn, bring to the partnership their extensive knowledge of the local construction market. In a few years' time, Gulf Precast intends to become an internationally renowned key player of the construction economy."

(Source: Gulf Precast)