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By Nick, April 3, 2013 6:41 pm

By John Lee.

Indonesia has signed a deal with Iraq’s State Oil Marketing Organization (SOMO) to buy Basra light crude in the second half of 2013.

According to reports from Reuters and Jakarta Globe, Iraq is winning more customers in Asia as it is selling its crude cheaper than comparable grades, undercutting rival Saudi Arabia to grab a bigger slice of the Asian market.

Petral, the trading unit of state-run energy firm Pertamina, will lift 1 million barrels of the medium, high sulphur crude each month between June and December.

(Sources: Reuters, Jakarta Globe)

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By Nick, April 2, 2013 2:11 pm

[unable to retrieve full-text content]Iraq plans to ship 48 cargoes of Basra Light crude from the Persian Gulf in April, according to a report from Bloomberg — 13 shipments more than last month. About 68.6 million barrels of the blend is to be exported from the al-Basra Oil Terminal (ABOT) (pictured), equating to 2.29 million barrels a day; this [...]
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By Nick, April 1, 2013 3:58 am

By John Lee.

The Special Representative of the Secretary-General (SRSG) for Iraq, Mr. Martin Kobler (pictured), has visited Basra where he met with the Governor, Dr. Khalaf Abdul-Samad, and with the Director of the Basra office of the Independent High Electoral Commission (IHEC), Mr. Hazim Joda. He also paid a visit to the Black Iraqi community and met with one of its representatives, Mr. Jalal Thiyab Thijeel.

“I had excellent discussions with the Governor over the UN’s ongoing role in the development of the province, the ongoing regional efforts to combat sandstorms, and progress made on Chapter VII,” Mr. Kobler said.

Following his meeting with IHEC officials, the UN envoy said that “with election day around the corner, the Iraqi people place their hopes on transparent, free and fair elections”, adding that “there is no democracy without elections”.

(Source: UNAMI)

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By Nick, March 29, 2013 7:34 am

By John Lee.

The Basra Gas Company (BGC) — a joint venture between the state-run South Gas Company (SGC), Shell and Mitsubishi — is processing around 400 million cubic feet per day (mcfd) of gas, and is on track to treat 2 billion cubic feet per day by 2017.

SGC general director, Ali Khudhier, told Reuters:

“Iraq should stop importing LPG in second half of 2014. We are producing now around 2,000 tonnes of LPG and we expect to reach production of 3,000 tonnes in second half of 2014.

“The produced LNG will be exported to east Asia by ships.“

The $ 17-billion project started processing small amounts of raw gas in mid-2012, and is now producing gas suitable for power plants along with liquid petroleum gas (LPG), cutting Iraq’s fuel import requirements.

Providing Iraq’s own modest gas needs are met first, the deal also gives BGC the right to build a liquefied natural gas (LNG) export terminal fed with at least 600 mcfd of gas in a few years time.

(Source: Reuters)

(Picture: Gas flaring at Rumaila)

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By Nick, March 5, 2013 7:13 pm

By John Lee.

Bloomberg reports that Iraq will ship 35 cargoes of crude oil from the Persian Gulf in March, six fewer than last month.

About 59.7 million barrels of the Basrah Light blend are to be exported from the al-Basra Oil Terminal (ABOT), equating to 1.93 million bpd, compared with average daily shipments in February of 2.34 million bpd.

The loading program is as follows:

• 24 lots of 2 million barrels each;
• 5 lots of 1 million barrels each;
• one lot of 1.97 million barrels;
• one lot of 1.2 million barrels;
• one lot of 1.11 million barrels;
• one lot of 889,000 barrels;
• one lot of 800,000 barrels; and,
• one lot of  715,000 barrels.

Loading programs are schedules of crude shipments compiled by field operators to allow buyers and sellers to plan their supply and trading activities.

(Source: Bloomberg)

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By Nick, March 2, 2013 11:24 am

Iraq’s ministry of industry and minerals has confirmed that it has finalised a $ 700 million contract with Turkish group United Brothers Holding to revamp and upgrade Iraq’s State Company for Iron & Steel, reports SteelGuru.

SCIS, located on the southern outskirts of Basra, has been out of action since April 2003. The company had a design capacity of 440,000 tonnes per year of 12 mm to 32mm diameter rebar and round bar. It achieved its highest output of 200,000 tonnes in 1989 before the first Gulf war. Limited operation was carried out between 1991 and 2003 before the mill was shut due to lack of funding.

The plant will be revamped in three stages;

• The first stage is the installation of a new 820,000 tonnes/yr 8 mm to 32 mm diameter rebar mill along with electric arc furnace meltshop and 130 mm to 150 mm square billet continuous caster. This should be completed in Q3 of 2014;
• Stage 2 is to double the melting capacity to over 1 million mt/yr and expand billet output to 130-180mm with an additional caster. A 250,000 mt/yr medium sections mill will be installed for production of IPE, IPN and UPN 80-160 sections, as well as 60 mm to 70 mm angles. SCIS’s existing rolling mill will also be modified to produce up to 250,000 tonne per year of light sections and rebar, giving the firm a finished long products capacity of 1.32 million tonnes per year by Q2 2015;
• State 3 will see the two direct reduced iron plants at the site dismantled and a new 1.2 million tonnes per year capacity DRI unit constructed, most likely using either ZR Reformer or Midrex technology.

The work is expected to be completed in Q2 2016. The contract stipulates that UB will also operate SCIS for a period of 18 years and train its staff. Profits from the plant will be divided between the Turkish company and Basra province.

(Source: SteelGuru)

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By Nick, February 23, 2013 2:41 am

At a ceremony in Basrah on Thursday (21st) the Iraq Britain Business Council Executive Chairman Baroness Nicholson signed a memorandum of understanding with the Governor of Basrah Dr Khalaf A Khalaf, signalling a new era of close co-operation.

Dr Khalaf said the agreement meant: “Basrah regards the IBBC as the door to the UK.”

Meanwhile Baroness Nicholson pledged to “promote Basrah as the major cultural and economic hub of the region.”

Around 40 guests including IBBC members gathered at the IBBC’s office on Basrah’s Corniche for the signing which also attracted national and local media, including Iraq’s 24 hour news channel.

Dr Khalaf told reporters the Basrah Governorate wanted a closer relationship with the IBBC because of the breadth of the Council’s membership and international corporate membership.

The agreement includes Basrah’s pledge to regard IBBC as the leading British trade council and for the IBBC to support the governorate in its relations with member firms.

There was also an agreement to help Basrah set up twinning arrangements with British cities.

After the signing ceremony Dr Khalaf was made the Council’s first honorary member and joined IBBC members for an informal round-table discussion on his vision for Basrah which included his ” dream” of building a 100 kilometre corniche to Al Faw. He also spoke of the Basrah region’s tourist potential.

The previous evening IBBC members attended a pre-signing reception at Basrah’s International Hotel where Basrah Engineering‘s Rasmi al Jabri said: “Basrah is potentially one of the richest cities in the world. Now we need to work towards realising that great goal.”

(Source: IBBC)

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By Nick, January 25, 2013 2:37 pm

By John Lee.

The National Investment Commission (NIC) has awarded India’s Welspun Corporation an investment licence to establish a factory for the production of iron welded pipes in Basra province.

A press release from the Council of Ministers says that the cost of the project is $ 450 million [dinar?].

(Source: Cabinet)

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By Nick, January 23, 2013 10:43 pm

The United Kingdom’s Trade Minister Lord Green met with local business leaders, British company executives, as well as the Iraq Britain Business Council representatives in Basrah today (23rd).

The hour long meeting focussed on the security environment in Basrah and business opportunities for British companies in the region.

Executives from IBBC member firms Mott Macdonald and Kier and Basrah Chamber of Commerce joined the meeting with Lord Green who was accompanied by the British Ambassador to Iraq Simon Collis.

Trade and Investment Minister Lord Green said:

“It’s clear that the UK-Basrah relationship is very strong. One of the aims of my visit is to underline our commitment to maintaining a very active diplomatic and commercial presence in Basrah and I look forward to us establishing new and lasting UK/Basrah relationships in all fields for the next generation.

“I’ve been fascinated to visit a range of British businesses in and around Basrah. I’ve seen the incredible work done by a British firm to deliver the fantastic Basrah Sports City complex and I’ve heard about the award winning management of BP which has changed working practices to make Iraq’s oilfields safer as well as more productive.

“These are all brilliant examples of British excellence and I’ve been encouraging the Basrawi leaders I’ve met to consider the value of British firms when they look for foreign investment.“

Rasmi Al Jabri, chief executive of Basrah Engineering Company said:

“It was a very, very good meeting. It was excellent to have a British minister here. I think he left us with the impression Basrah was safe, as safe as say Kurdistan. We gave him the very clear message British business was welcome in Basrah.“

Mr Al Jabri said he also urged the UK Minister to try to interest small to medium British businesses to consider investing in the Basrah region.

A UKTI spokesman said:

“Lord Green had a very enjoyable visit and appreciated seeing the situation on the ground. The point about SMEs I think was well taken.“

Lord Green’s mission to Iraq is the first by a British trade minister since 2003. Today’s meeting was in an office complex shared by the IBBC on Basrah’s Corniche.

After the meeting the UK minister went on to have talks with the Basrah Governor, Dr Khalaf al Khalaf and visited the Basrah Sports City complex, built by IBBC member Anwar Soura General Contracting Company.

The IBBC opened its Basrah office in July last year and Executive Chairman Baroness Nicholson will visit the city to sign a Memorandum of Understanding with the Basrah Governorate soon. The IBBC’s staff member is Basrah, Ahmad Hoobi, was recruited last November.

(Source: IBBC)

Picture, L – R: Nafea Rahem al-Jabri (Basrah Engineering), Peter Hunt (HWH Associates), Simon Collis (British Ambassador to Iraq), Lord Green (UK Trade Minister), Rasmi al-Jabri (Basrah Engineering), Ali Abdul Hussein (Kentz Global), Ahmad Hoobi (IBBC), Colin Long (Mott Macdonald), Qasem Hamad Bader (Basrah Chamber of Commerce), Kamal Rahem (Kier).

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By Nick, January 16, 2013 2:00 pm

The province of Basra has awarded Dewan Architects and Engineers the contract to design the sprawling Al Nakheel City, for which the foundation stone was recently laid.

As a modern urban development, the Al-Nakheel City is expected to provide world-class and modern sustainable living, working, and living solutions for the population of Basra and help alleviate the housing shortages in the province.

The decision for Dewan Architects & Engineers to participate and eventually be awarded this strategic project was based on the firm’s desire to actively participate in the active rebuilding of Iraq’s booming building sector, and the firm’s deep-rooted commitment to helping revive the architectural heritage of the country, which is home to mankind’s first urban settlements.

The design phase, as well as the scheduling and prioritizing of the project’s construction phases, is expected to be finalised by December 2013; one year from the date of commencement as committed to the Governorate.

Mohamed Al Assam, Founder, Chairman and Managing Director of Dewan, commented:

“As a major supporter of the construction efforts in the Iraqi housing sector, we are extremely pleased to be part of this significant project, which will see the establishment of an integrated community within a nurturing and sustainable environment. We will utilise the vast expertise gained from working in the UAE, which has become a regional hub of world-class developments in the region, to ensure that all the governorate’s and other stake holder’s objectives are met and exceeded.“

He added:

“This project’s importance stems from the fact that the city of Basra not only represents the only marine gateway to Iraq, but that it also serves as the main axis of trade into the Arabian Gulf and the region. In addition it serves as the economic capital of Iraq, and is home to a number of cultural and historical monuments.

“In light of this, our designs will incorporate different elements that are consistent with the region’s cultural and historical elements. These requirements will blend seamlessly by utilising design best practices in modern urban planning, ensuring that Nakheel City is designed to the highest creative and environmental standards without sacrificing the local context and cultural peculiarities of Basra.“

The Nakheel City is located 35 kilometres from Basra city overlooking Khor Abd Allah, near the Faw and Umm Qasr seaports, in an area of natural water and creeks. The project’s location boasts a unique ecological and geographical environment, and the development will be promoted as an eco-tourism destination.

Covering a total built up area of 145 square kilometres, the new city will be able to accommodate and provide services to approximately one million people at the culmination of its 25 year development milestone.

It will include 100,000 medium and high-end housing units, a robust industrial zone and a hub for free zone activity, as well as a port and airport for private jets and domestic flights, all of which is aimed at supporting the economic development of the region.

Nakheel City will also provide high medical, advanced education and recreational cultural facilities, and will support regional tourism through the development of high-end tourist resorts. In addition, it will contribute to the revitalisation of the river ports and industrial zone and boost business activities between itself and other ports.

(Source: AMEinfo)

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