Thread: Iraq to start crude oil shipping

London, Jan. 9 (AKnews) - Iraq plans to begin crude oil shipping operations in March as it prepares to export larger volumes of crude in the future, the head of Iraq's State Oil Marketing Organisation (Somo) said yesterday.

Iraq last year awarded contracts to foreign oil firms that would boost its output capacity to 12 million barrels per day (bpd) from 2.5m bpd in 2017. Pumping and exporting the anticipated rise in output presents huge logistical challenges.

"We want to get familiar with this business for the future," Falah Alamri, head of Iraq's State Oil Marketing Organisation, said.

"We have to prepare ourselves for when exports are three or four million barrels per day in a few years."

To deliver the crude, Iraq would revive the Iraqi Oil Tanker Company (IOTC), Alamri said.

The company would lease a tanker and begin crude deliveries in March or soon after, he added.

The IOTC, controlled by the ministry of oil, was set up in 1972 and at one time had about 20 tankers.

The fleet was hit hard by the Iran-Iraq war and the 1991 Gulf War. During the Gulf War, four tankers were sunk off the Iraqi and Kuwaiti coasts and four others were vandalised and abandoned by crews.

Iraq planned a joint venture company to handle the shipping, Alamri said. He declined to give more details on possible partners for IOTC.

Iraq this week offered a rare spot crude cargo of Basra oil on a delivered basis to Asian clients, traders said on Wednesday.

It would be the first cargo to be delivered under the revived shipping operation, Alamri said.

It was the first delivered cargo of Basra crude Iraq has offered since 2003, another source at Somo said, the same year US-led forces invaded the country.

Since then crude has been offered only from export ports with buyers chartering vessels to collect the crude, in a purchase contract on terms known as free-on-board.

"We need both free on board and deliveries for the future," Alamri said.

ma gs AKnews

Sulaimaniyah, Jan. 9 (AKnews) – The KRG ministry of trade announced 1,846 foreign and local companies were licensed to open their branches in Kurdistan Region during 2009.

"The toll of companies registration is continually increasing in Kurdistan Region which are about 1,846 investment companies opened its branches during 2009," Companies registration chief, Parween Nouri told the Independent National News Agency of Kurdistan (AKnews).
She further added "Near to 659 local companies are opening its branches and the rest ones are foreign companies in Kurdistan Region."
"The main office of 48 above registered companies are located the Iraqi capital of Baghdad."
"The orders of opening branch companies are increased gradually in the ministry of trade due to stability of security situations, and the possibility of trade and investment exercising in Kurdistan Region," she added.
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Erbil, January.7 (AKnews) – It is for 5 years living standards of Kurdistan Region is on the booming. The Region's economic relation with the neighboring countries and the outside word is getting advanced. This has urged car companies to flood Kurdistan markets with their car products.
There was already only one car market in Erbil, called "car exhibition place", but now tens of car markets are opened in some parts of Erbil.
"Kurdistan Region imports cars more than needed, everyone wants to have a car. some try to purchase it or others to replace," owner of one car company who brings car from outside, Ali Saifaddin, told The Independent National News Agency of Kurdistan (AKnews).
"Kurdistan Region is the place that bails us out of the world financial crisis," Saifaddin quoted car makers as saying.
Saifaddin also said that they bring cars from Saudi Arabia, UAE, and some EU countries. Some more companies like us do the same. A large number of cars daily enter Kurdistan Region regardless how much they cost finally.
Deputy Director of Hajji Omaran Customs Offices, Slam Arab, said that a large number of cars daily cross Kurdistan border of all kinds like, trucks, private cars, motorcycles. From the start of 2010, 120 thousand cars have entered the Region.
"Our people are fond of new cars most of them favor installment system," one of the car company owners, Taha Hamad, told AKnews. Car companies are following the system and their cars are best sellers.
The large number of car is for sure increases road accidents. "Buying new cars in Kurdistan Region has become a phenomenon," General Press Director of Kurdistan Regional Government (KRG)-Traffic Police, Qadir Sadiq, said. It is not unique for Kurdistan; it is also apparent in the sudden parts and south of Iraq.

This will badly affect the Region's economic situation as the large number of cars is being imported. On the other hand a huge amount of money goes abroad, Sadiq said. Quality control office should take strict measures for cars are soon breaking.
"Its loss is twofold, firstly the majority of the individual's income abroad which causes deflation, and secondly this would cause traffic jam and traffic problems," concerning the bad aspects of car importation, economist and university instructor, Idris Ramadan, said.
The fuel comes from the Iraqi refineries is not well-refined. This would also pollute climate, consequently it would badly affect people's health condition, according to Sadiq.
The Ministries of Trade and Industry, and Interior have to put limitation before car importation.

"2 thousand car accidents in Kurdistan Region in 2009 has left more than 2 thousand casualties; 400 to 500 deaths" brigadier Sadiq said. World Health Organization (WH) statistical figures show that 15 million people are yearly becoming victims of car accident on the globe, in which 5 million die.
Although car is one of the critical needs of people that every family could have one. What is strange is that in Kurdistan most of the families have more than two cars, Ramadan surprisingly said.
Buying car has become an imitative phenomenon in Kurdistan Region, some people loan more than half of the price to by a car. That is an economic phenomenon which exists in the retarded countries, the economist reiterated.
"It time for KRG to establish a huge car making company in Kurdistan in cooperation with the car makers to keep the enormous finance at home and provide job opportunity for our youths."
He also suggested a law to stop people to buy cars outside, similar to Iran which does not allow foreign cars come in.


Due to the global financial crisis, the demand for cars has fallen. This has caused severe damages to the car makers. But this is contrary to Kurdistan Region which it has become a huge market of cars.

sm gs AKnews

Erbil (AKnews) - The highly prospective Shaikan Block is situated near the city of Dihok, approximately 85 kilometres North-West of Erbil and covers an area of 283 square kilometres. Shaikan was covered in 2008 by 171 kilometres of 2D seismic and analysis of that seismic data has already resulted in a first ready to drill prospect being identified by the Company.

A drilling rig has been contracted with Weatherford Drilling International (BVI) Ltd. The new build NOV IDEAL 1500HP rig is now expected to arrive in country before the end of February of this year with a target date for the commencement of drilling by early second quarter 2009.

The acquisition of a well head and casing is complete with long lead items now in stock at our pipe yard near Maraiba, Kurdistan. In addition, preparation of the Shaikan-1 drilling site is complete. Contracts for ancillary well site services have either been signed or are pending finalisation.

The Akri-Bijeel Block is adjacent to the Shaikan Block and covers an area of 889 square kilometres. Acquisition of 442 kilometres of 2D seismic was completed in August 2008 and processing of the seismic data is underway. It is intended to drill the first Akri-Bijeel well following completion of Shaikan-1 using the same rig.

Mr. Todd Kozel, ****utive Chairman, Gulf Keystone, commented:
“We are delighted with the result of the HBH-6 appraisal well on the HBH Permit, Algeria. This is the fourth successful well from our now completed six well drilling programme, which included the RM-1 discovery to the southeast of the HBH gas field. The success of this drilling programme justifies our decision to proceed to the second prospecting period early, and underlines the high prospectivity of the HBH Permit.

“This early success is also a welcome start to what I expect to be a busy drilling year for Gulf Keystone. We continue to make rapid progress in both of our key areas of operation and eagerly anticipate the start of phase two drilling on the HBH Permit, and our first exploration well on Shaikan Block, Kurdistan.” gs AKnews

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Erbil, Jan. 14 (AKnews) – After mounting of housing loan paying off speculations, land price has been increased by in Iraqi Kurdistan Region 125%.

Until two months ago, real estate marketing was too slow, but now it's been improving especially in this week, owner of Sardar Office for selling and buying house and land, Rzgar Aziz, told The Independent National News Agency of Kurdistan (AKnews).

"It is for a month, a 250 square meter of land at the 8 section of Hasarost is worth up to US$ 1000, but now the price has mounted to 18% i.e. increased by 125%," according to Aziz. This change of prices comes after a decision announced by head of Kurdistan Investment Board, Hersh Mharram, to lend money to people for building house.

In the last two years, real estate markets witnessed a cut-throat recession. We could only earn the price we gave to rent the shops, but now it seems to have got better, owner of Yassir estate marketing, Nabi Hamad, told AKnews.

"The speeches by head of Kurdistan Investment Board two days ago urged the land owners to increase land prices by 100% as total. For example a 250 square meter of land in Sebardan was worth up to $7,000, but now it has been escalated to $16, 000," Hamad exemplified.

Earlier at a press conference, head of Kurdistan Investment Board, Hersh Mharram, had said that "the project of solving the issue of housing would come to effect and KRG would pay the price of housing units by 10% at the province centers, 15% at the districts and sub-districts, and 20% at the villages voluntary.

Except for the rest of the money that should be back during 10 years time for the company, $210 to $220 each month, Hamad concluded.

sm gs AKnews

Wednesday, January 20th 2010 9:20 AM


Sulaimaniyah, Jan.20 (AKnews) – Iraq is not necessarily to borrow money from International Monetary Fund but if the state budget will dramatically step down, we will borrow financial backups from the IMF," financial procurator of the Iraqi finance ministry said, on Wednesday.
"There are some rumors that the central government of Iraqi will borrow money from the international funds but it might be the bogus news just to receive money easily," financial procurator, Fazel Nabi told the Independent National News Agency of Kurdistan (AKnews).
He further noted" Iraq is still driving in the dramatic financial rescission process, but it is not meaning that the state can not battle against budget decreasing due to the rate one barrel of oil is determined by $60 ,but the price is increasing to $ 80 per barrel right now , thus we can control the obstacles very easily.
"We will ask to the international funds to support us, if we can not control the financial recessions at that time."
"The state general budget does not need international funds to solve its financial problem but it can require funds and backups in necessity moment at any time,"
The Iraqi budget is estimated to more than 84 trillion and 600 milliard ID for the year 2010.
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Baghdad, Jan. 17 (AKnews) - The recent oil deals between Iraqi and foreign companies could be good news for its people but any rapid increase in the country's crude production could undermine the market, a veteran Arab oil analyst has said.

Nicolas Sarkis, Director-General of the Paris-based Arab Petroleum Research Centre (APRC), said the deals and other similar agreements in the future could lift Iraq's oil output capacity to 12 million barrels per day, similar to that of Saudi Arabia, the world's largest crude exporter.

Writing in the APRC's monthly magazine, he said the three major oil accords signed before the end of 2009 had removed what he described as one of the biggest obstacles to the development of the Iraqi oil industry, adding that they would open the way to a substantial expansion of national oil production.

According to Sarkis, whose centre acts as an advisor to the 10-nation Oapec, the first agreement was concluded in June with BP/CNPC and involves expanding Rumaila field from one million bpd now to 2.85 million bpd.

The second was signed in October with Eni in association with Occidental and Kogas and provides for output at the giant Zubair field to be increased from 195,000 bpd to more than one million bpd.

Most recently, a third one was announced in November with ExxonMobil and Royal Dutch Shell for the development of output capacity at the West Qurna 1 field from 279,000 bpd at present to 2.1 million bpd.

Sarkis said the deals can be credited to the Iraqi negotiators who succeeded in securing international oil companies' agreement to contractual conditions they had regarded as too tough and had rejected only a few months earlier.

He noted that the conditions include a rate of remuneration of $1.90 (Dh7) to $2 per incremental barrel produced, whereas BP/CNPC and ExxonMobil had sought double that ($4/b) and Eni had asked for as much as $4.80/b.

The agreement was made possible by easing other conditions, such as the rate of tax levied on the remuneration paid to foreign partners.

"This breakthrough in negotiations that had been dragging on for years theoretically brings the prospect of an increase in Iraqi oil production from its current level of 2.5 million bpd to as much as six million bpd by 2016. In addition, there are the expansion projects tendered in the second international bid round, which closed in December 2009," he said.

ma gs AKnews

Erbil, Jan. 20 (AKnews) - Sardar Trading Agencies Ltd, part of the Sardar Group, the largest privately owned automotive group in Iraq, has been appointed as the distributor of the Land Rover ***** in northern Iraq.

This venture marks Land Rover's entry to the region. This move reiterates Land Rover's commitment to the Middle East as the company ventures into this untapped market, the northern region of Iraq also known as Kurdistan. As part of its commitment to the development, the Sardar Group has invested in a new, state-of the-art facility for Land Rover vehicles.

The 2400sq/m showroom and fully equipped after-sales centre is located in the city of Erbil on Golan Street. "We are extremely honoured to represent Land Rover exclusively in the northern region of Iraq. Given Land Rover's proud heritage and excellent vehicle portfolio combined with our strong market presence, infrastructure, and investment in our facilities and our highly dedicated staff; we look forward to taking the ***** to the forefront of luxury 4x4s in the market," said Sardar Hasan, Chairman of the Sardar Group.

Land Rover premiered its 2010 model range at the Erbil Motor Show this month. The motor show was a great success in response to the growing needs of Iraq's - and the region's - flourishing automotive industry.

"We are already present in 19 markets in the Middle East and North Africa region and now with Sardar Group, a name synonymous with trust and customer care, we will be better poised to service the northern region of Iraq. We are bringing a strong Land Rover product portfolio to the market and expect the vehicles to be well received by consumers here, just as they have been across the globe and the Middle East region," explained Robin Colgan, Managing Director, Jaguar Land Rover, Middle East and North Africa.

Discerning customers visiting the Land Rover showroom in Erbil will be able to view the 2010 line-up comprising the Range Rover, Range Rover Sport, Land Rover LR4 and the legendary Defender. The 2010 vehicles set new benchmarks for performance and economy, boasting substantial increases in power and torque over their predecessors as well as reduced emissions and fuel consumption. The Middle East is one of the most important markets for Land Rover and despite the recent global and local market downturn, the ***** experienced a good sales year in the region and is firmly positioned to capitalize on this in 2010.