- Four companies secured four deals in Iraq in July, similar to the weak showing in May which only had four deals, after the stronger month of June which had twelve deals.
- Geographically, there were deals across Iraq as well as in Bahrain, France, UAE, and UK. Oil and gas and defense each had one deal.
- Iraqi PM Haider al-Abadi has issued a temporary travel ban on several MPs accused of corruption in defense ministry contracts until an investigation is completed.
Summary
Economy: Economic data mixed - ISM Non-Manufacturing Index falls to lowest level of the year; July jobs data stronger than forecast
Fed Policy: G-20 inflation falls to lowest level since 2009; reduces odds of rate hike in fourth quarter
Sentiment: Indicators of investor psychology show optimism excessive
Strongest Sectors: Utilities, health care and telecom gaining in relative strength
Trade & Trasit Cooperation with Afghanistan - Results from a Firm - level Survey from Pakistan
Sustainable Development Policy Institute (SDPI)
Vaqar Ahmed
Saad Shabbir
Summary
Economy: Economic data mixed - ISM Non-Manufacturing Index falls to lowest level of the year; July jobs data stronger than forecast
Fed Policy: G-20 inflation falls to lowest level since 2009; reduces odds of rate hike in fourth quarter
Sentiment: Indicators of investor psychology show optimism excessive
Strongest Sectors: Utilities, health care and telecom gaining in relative strength
Trade & Trasit Cooperation with Afghanistan - Results from a Firm - level Survey from Pakistan
Sustainable Development Policy Institute (SDPI)
Vaqar Ahmed
Saad Shabbir
Iraqi Prime Minister Haider Al-Abadi had his first success in attempting to reshuffle his cabinet in mid-August, with the approval of five new ministers by the parliament, including a new Minister of Oil. One Minister, Trade, was rejected by parliament, but overall, this represented a victory after a long convoluted attempt to get a smaller, technocrat-oriented cabinet in place. The objective was to take corruption and political patronage out of the cabinet, and replace it with more qualified leadership. So far, this is a good first step, with the new Ministers generally career technocrats. However, challenges remain, with the rest of his 16 member cabinet yet to be approved, and a lack of full success potentially threatening his premiership. And of course, former Prime Minister Nouri Al-Maliki is waiting in the wings to try to capitalize on any stumble to gain a return to power.
http://www.uat.whisperingbell.com/business-advisory/reports
Asia Frontier Capital - AFC Iraq Fund presentationThomas Hugger
The AFC Iraq Fund was launched on the 26th June 2015 and aims to achieve long-term capital appreciation for investors by capturing value and growth potential in the post conflict high-growth & resource rich Iraq market. The fund emphasises long term investment horizon to truly capture the opportunity in Iraq. The fund's investable universe consists of locally listed companies that have their principal business activities in Iraq as well as foreign listed companies that have the majority of the business in Iraq as a whole including the prosperous Kurdish Region of Iraq (KRI). The AFC Iraq Fund offers access to investments in post conflict recovery potential of Iraq, including the KRI, and/or stability in its territory. The AFC Iraq Fund is managed by Asia Frontier Capital (Iraq) Limited, Cayman Islands under the executive leadership team of Thomas Hugger (CEO & Fund Manager) and Ahmed Tabaqchali (CIO) who have more than 47 years of investment experience as well as an extensive background covering global, emerging, frontier and MENA markets.
Greetings,
Attached FYI ( NewBase Special 17 February 2015 ) , with
energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• S.Arabia & UAE control 74 percent of GCC’s private wealth
• Egypt, Cyprus Sign Oil & Gas Related MoU
• Pipeline of opportunities: ‘TAPI will bring Kabul, Islamabad, Delhi closer’
• Norway:BG Group drills two dry wells near the Knarr field in N.Sea
• Norway Lundin Petroleum spuds exploration well on Gemini prospect
• France:Europa Oil & Gas farms out Tarbes Permit to Vermilion
• Angola: Oil majors focus on Angola
• U.S. 2014 LNG imports nosedive in 2014
• Oil Rises as OPEC Producers Signal Optimism Over Market Recovery
• Bahrain: MEOS-15 Conference to start March 11th
As this daily news periodical is free for you, we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
The AFC Iraq Fund will be launched on the 15th May 2015 and aims to achieve long-term capital appreciation for investors by capturing value and growth potential in the post conflict high-growth & resource rich Iraq market. The fund emphasises long term investment horizon to truly capture the opportunity in Iraq. The fund's investable universe consists of locally listed companies that have their principal business activities in Iraq as well as foreign listed companies that have the majority of the business in Iraq as a whole including the prosperous Kurdish Region of Iraq (KRI). The AFC Iraq Fund offers access to investments in post conflict recovery potential of Iraq, including the KRI, and/or stability in its territory.
Microsoft word new base 669 special 20 august 2015 (1)Khaled Al Awadi
Attached FYI ( NewBase Special 20 August 2015 ) , from Hawk Energy Services Dubai . Daily energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• Iraq oil exports drop to weigh on Opec output
• Iraq PM visits oilfield where locals harass Lukoil
• INDIAN, UAE TO BUILD STRATEGIC PARTNERSHIP ON ENERGY
• Tunisia:Circle Oil announces extension of permit for Mahdia Licence
• Algeria: Petroceltic International provides update on Ain Tsila development project
• Congo (Brazzaville): Aquatic awarded multi-million pound
• Lehman to Build a $12 Billion Solar Empire in US,Africa & Asia
• Oil prices dip further after U.S. stock-build, Saudi export rise
• Three Reasons Oil Will Surge Past $70 By the End of the Year
• Iran shopping list disputed in US debate over deal
• Japan, Iran to discuss investment pact after sanctions end
we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
View the latest commentary on Iraq from The PRS Group. Now more a decade on from the overthrow of Saddam Hussein, Iraq remains deeply troubled by dangerous ethnic and sectarian divisions, woeful security conditions, and chronic political instability in Baghdad that has undermined the
Greetings,
Attached FYI ( NewBase Special 10 September 2015 ) , from Hawk Energy Services Dubai . Daily energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• UAE: IMC Awards function concluded with recognition yesterday.
• Qatar scores high in BMI trade, investment market risks index
• Saudi oil Expectations of shake-up stir uncertainty
• Saudi Arabia maintained crude oil market share in Asia in the
• Egypt: Eni sees Egypt's Zohr gas field investment at $6-10 billion
• Kenya: Erin Energy awarded licence extension offshore
• EU: GE’s Alstom buyout approved by EU
• Oil prices fall as Asia's leading economies
• Global Energy E&P cuts topping U$D132 Billion in 2 years
• UK: Low oil price accelerating decommissioning in the UKCS
we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
NewBase Energy news
Daily PDF file can be sent to your In-Box call us khdmohd@hawkenergy.net
Covering the global energy event that affect the MENA area .
Khaled Al Awadi - Energy consultant , UAE
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Iraqi Prime Minister Haider Al-Abadi had his first success in attempting to reshuffle his cabinet in mid-August, with the approval of five new ministers by the parliament, including a new Minister of Oil. One Minister, Trade, was rejected by parliament, but overall, this represented a victory after a long convoluted attempt to get a smaller, technocrat-oriented cabinet in place. The objective was to take corruption and political patronage out of the cabinet, and replace it with more qualified leadership. So far, this is a good first step, with the new Ministers generally career technocrats. However, challenges remain, with the rest of his 16 member cabinet yet to be approved, and a lack of full success potentially threatening his premiership. And of course, former Prime Minister Nouri Al-Maliki is waiting in the wings to try to capitalize on any stumble to gain a return to power.
http://www.uat.whisperingbell.com/business-advisory/reports
Asia Frontier Capital - AFC Iraq Fund presentationThomas Hugger
The AFC Iraq Fund was launched on the 26th June 2015 and aims to achieve long-term capital appreciation for investors by capturing value and growth potential in the post conflict high-growth & resource rich Iraq market. The fund emphasises long term investment horizon to truly capture the opportunity in Iraq. The fund's investable universe consists of locally listed companies that have their principal business activities in Iraq as well as foreign listed companies that have the majority of the business in Iraq as a whole including the prosperous Kurdish Region of Iraq (KRI). The AFC Iraq Fund offers access to investments in post conflict recovery potential of Iraq, including the KRI, and/or stability in its territory. The AFC Iraq Fund is managed by Asia Frontier Capital (Iraq) Limited, Cayman Islands under the executive leadership team of Thomas Hugger (CEO & Fund Manager) and Ahmed Tabaqchali (CIO) who have more than 47 years of investment experience as well as an extensive background covering global, emerging, frontier and MENA markets.
Greetings,
Attached FYI ( NewBase Special 17 February 2015 ) , with
energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• S.Arabia & UAE control 74 percent of GCC’s private wealth
• Egypt, Cyprus Sign Oil & Gas Related MoU
• Pipeline of opportunities: ‘TAPI will bring Kabul, Islamabad, Delhi closer’
• Norway:BG Group drills two dry wells near the Knarr field in N.Sea
• Norway Lundin Petroleum spuds exploration well on Gemini prospect
• France:Europa Oil & Gas farms out Tarbes Permit to Vermilion
• Angola: Oil majors focus on Angola
• U.S. 2014 LNG imports nosedive in 2014
• Oil Rises as OPEC Producers Signal Optimism Over Market Recovery
• Bahrain: MEOS-15 Conference to start March 11th
As this daily news periodical is free for you, we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
The AFC Iraq Fund will be launched on the 15th May 2015 and aims to achieve long-term capital appreciation for investors by capturing value and growth potential in the post conflict high-growth & resource rich Iraq market. The fund emphasises long term investment horizon to truly capture the opportunity in Iraq. The fund's investable universe consists of locally listed companies that have their principal business activities in Iraq as well as foreign listed companies that have the majority of the business in Iraq as a whole including the prosperous Kurdish Region of Iraq (KRI). The AFC Iraq Fund offers access to investments in post conflict recovery potential of Iraq, including the KRI, and/or stability in its territory.
Microsoft word new base 669 special 20 august 2015 (1)Khaled Al Awadi
Attached FYI ( NewBase Special 20 August 2015 ) , from Hawk Energy Services Dubai . Daily energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• Iraq oil exports drop to weigh on Opec output
• Iraq PM visits oilfield where locals harass Lukoil
• INDIAN, UAE TO BUILD STRATEGIC PARTNERSHIP ON ENERGY
• Tunisia:Circle Oil announces extension of permit for Mahdia Licence
• Algeria: Petroceltic International provides update on Ain Tsila development project
• Congo (Brazzaville): Aquatic awarded multi-million pound
• Lehman to Build a $12 Billion Solar Empire in US,Africa & Asia
• Oil prices dip further after U.S. stock-build, Saudi export rise
• Three Reasons Oil Will Surge Past $70 By the End of the Year
• Iran shopping list disputed in US debate over deal
• Japan, Iran to discuss investment pact after sanctions end
we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
View the latest commentary on Iraq from The PRS Group. Now more a decade on from the overthrow of Saddam Hussein, Iraq remains deeply troubled by dangerous ethnic and sectarian divisions, woeful security conditions, and chronic political instability in Baghdad that has undermined the
Greetings,
Attached FYI ( NewBase Special 10 September 2015 ) , from Hawk Energy Services Dubai . Daily energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• UAE: IMC Awards function concluded with recognition yesterday.
• Qatar scores high in BMI trade, investment market risks index
• Saudi oil Expectations of shake-up stir uncertainty
• Saudi Arabia maintained crude oil market share in Asia in the
• Egypt: Eni sees Egypt's Zohr gas field investment at $6-10 billion
• Kenya: Erin Energy awarded licence extension offshore
• EU: GE’s Alstom buyout approved by EU
• Oil prices fall as Asia's leading economies
• Global Energy E&P cuts topping U$D132 Billion in 2 years
• UK: Low oil price accelerating decommissioning in the UKCS
we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
NewBase Energy news
Daily PDF file can be sent to your In-Box call us khdmohd@hawkenergy.net
Covering the global energy event that affect the MENA area .
Khaled Al Awadi - Energy consultant , UAE
Similar to Iraq Commercial Activities & Business Development Opportunities - Aug 2016 (20)
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
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As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
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The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
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What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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Iraq Commercial Activities & Business Development Opportunities - Aug 2016
1. Four Deals In July
Four companies landed four deals
in Iraq in July, back to the weak
showing of May, which had only
four deals, after the strong month
of June, which had twelve deals.
On first blush, we would say that
this would indicate that June
was an anomaly. However, we
would also note, as we mentioned
before that it is probably more
appropriate to focus on the fall
for actual confirmation, as the
summer months of July and August
are likely to be slow seasonally. As
a result, we would only say that
the unusual strength of June has
not yet been confirmed, but that
neither is the unusual weakness of
May and July.
Geographically, there were two
Iraq-wide deals, one in Basra and
one in an undisclosed location,
as the client was not named. Four
countries had one deal each –
Bahrain, France, the UAE and the
UK. Oil and gas had two deals,
and Defense and Banking had
one each. These last two areas
were the Iraq-wide deals, given
the broad focus on military actions
and bank branch networks.
Finance over the last year seems
to have a consistent, though low,
level of investment, below the
pillars of oil and gas and defense,
but still significant because of
continued investment in improving
financial services in Iraq.
PM orders travel ban on MPs
Iraqi Prime Minister Haider
al-Abadi has issued a travel ban
on several members of parliament
accused of corruption until an
investigation is completed. On 1
August, Defence Minister Khaled
al-Obeidi accused Parliament
Speaker Salim al-Jabouri and
other politicians of lobbying for
businesses seeking contracts to sell
overpriced planes, vehicles and
other goods to the armed forces.
He said they sought to influence
ministry appointments and some
tried to blackmail him.
Besides the speaker, Obeidi
mentioned the names of four
sitting MPs, a former MP and two
parliamentary officials affiliated
with the speaker. They all denied
the accusations and called for
an investigation. Abadi ordered
the "temporary travel ban"
against those accused, in order
to investigate. A parliament-
appointed committee will probe
the allegations, according to Talal
al-Zobaie, head of the Integrity
Commission.
Investing in Iraq
CONTENTS
1. Investing in Iraq
2. Iraq at a Glance
3. Government Tenders
4. Commercial Activity
5. Sector Profiles
6. Investment Climate
7. Conferences & Delegations
Iraqi Commercial Activity &
Business Development Opportunities
August 2016
UAE | Libya | Bulgaria | USA
www.whisperingbell.com
Iraqi Commercial Activity &
Business Development Opportunities - August 2016
2. 2
Iraqi Commercial Activity &
Business Development Opportunities - August 2016
Whispering Bell MEA DMCC, PO Box 487151, Dubai, United Arab Emirates. Tel: +9714 448 6690
www.whisperingbell.com
Iraq at a Glance
Dahuk
Ramadi
Karbala
KutHillah
Najaf
Diwaniyah
Samawah
Nasiriyah
BASRA
Amarah
BAGHDAD
Sulaymaniyah
Baaqubah
MOSUL
KIRKUK
TigrisRiver
EuphratesRiver
Erbil
Key Investment Thesis
Iraq’s economic infrastructure has been destroyed by
more than 35 years of war and sanctions that began
with the Iraq-Iran War in 1980. Some 95% of the Iraqi
federal budget is derived from crude oil sales, the vast
majority of which is dedicated to supporting state owned
enterprises, social welfare programs, and in the post-IS
era, defense. Following the IS invasion, Iraq continues to
need hundreds of billions of dollars in foreign capital to
rebuild infrastructure and kick-start private sector growth.
Although the overhang of the IS invasion remains, Iraq
retains demographic advantages and abundant oil
which could drive near double-digit economic growth as
IS is pushed out and the country retrenches in years to
come.
Major Deals
See Commercial
Activity Section for
other info
Iraq Critical Data (2015 est.)
Land Mass: 441,839 sq km
Population: 37.1 mn
Nominal GDP: US$ 165.1 bn
GDP Growth: 0%
GDP per capita: US$ 4,450
Inflation: 1.8%
Oil Exports: 3.0 mn bpd
Labor Force: 8.9 mn
Unemployment: 16%
Imports/GDP: 30.2%
Exports/GDP: 33.1%
External Debt: US$ 58.1 bn
Debt/GDP: 35.2%
Govt. Budget: US$ 86.6 bn
Fiscal Deficit: - 41.7%
Currency: New Iraqi Dinar
Drake and Scull International won
a $61.5 million EPC contract for
construction of a water injection
network installation project at Zubair oil
field in Basra
MBDA Missile Systems won
a GBP 28 million contract to
support a long range missile in
Iraq and Libya
Ahli United Bank raised its stake
in Commercial Bank of Iraq by
10 per cent to 64.7 percent
Deep Casing Tools Deployed
Turbocaser Express reaming
system for a client who had
experienced liner running issues
3. 3
Iraqi Commercial Activity &
Business Development Opportunities - August 2016
Whispering Bell MEA DMCC, PO Box 487151, Dubai, United Arab Emirates. Tel: +9714 448 6690
www.whisperingbell.com
Current Political State of Play
KEY POINTS
• Maliki wades into Kurdish politics
• Part of renewed bid for PM post?
• Abadi asks for corruption probe
Is Maliki plotting return to power with Kurdistan visit?
In a scene surprising to many, a smiling Nouri al-Maliki disembarked from an Iraqi airliner in July in
the city of Sulaimaniyah and was received by senior officials from the Patriotic Union of Kurdistan
(PUK), one of the major parties in Iraqi Kurdistan. Maliki said his visit was merely a normal meeting
with PUK and Gorran (Movement of Change) leaders in the wake of the two parties' having
formed an alliance earlier this year. However, the trip took place amid unconfirmed reports of
his hopes of taking back the premiership from Haider al-Abadi, a fellow Islamic Dawa member
and that party's leader. General elections are due to be held in 2018.
Once thought of as poised to become a strongman of sorts in Iraq, Maliki had to vacate the
office of prime minister in 2014, with many blaming him for the dramatic territorial sweep of the
Islamic State (IS) through Iraq. Defying expectations that this would spell the end of his political
career, however, Maliki has worked relentlessly behind the scenes for the past two years to retain
his political stature and is now reported to be plotting a comeback.
Maliki shortly after his arrival in Sulaimaniyah. Mala Bakhtiar, Head of the PUK Politburo is to his right..
Maliki's visit to the Kurdistan region came at a time of deep fissures among major Kurdish factions,
and disagreement over how to deal with the government in Baghdad. The two dominant parties
in Sulaimaniyah, the PUK and Gorran, formed an alliance in mid-May putting them at odds with
the Kurdistan Democratic Party (KDP). Led by Massoud Barzani, acting president of the Kurdistan
Regional Government (KRG), the KDP dominates the Kurdish government and has adopted
rhetoric highly critical of Maliki. Whereas the KDP publicly advocates secession from Iraq, or
at least greater powers for the Kurdish region in a confederation, the PUK and Gorran favor
reconciliation with Baghdad and exhausting all available options before any decision to push
for statehood.
Against this backdrop, many have questioned Maliki's motive for visiting PUK-Gorran
4. 4
Iraqi Commercial Activity &
Business Development Opportunities - August 2016
Whispering Bell MEA DMCC, PO Box 487151, Dubai, United Arab Emirates. Tel: +9714 448 6690
www.whisperingbell.com
Current Political State of Play Cont’d.
representatives and ignoring the KDP at a time of such acute political rivalry among Iraqi Kurds.
“Whether Maliki’s visit was as innocent as he said or not, suspicions about his real intentions can
only deepen when it is rumored … that Maliki is plotting to form a new alliance with the aim of
returning to power as prime minister,” said Kamran Karadaghi, a veteran Iraqi Kurdish journalist
and former chief of staff to Iraqi President Jalal Talabani, also the PUK's leader.
“During his two terms as Iraq’s prime minister [2006-14], Maliki became a controversial and divisive
figure,” Karadaghi added. “As such, his Sulaimaniyah visit has stirred problems in Kurdistan. I am
afraid Maliki’s visit has had a negative impact on efforts to overcome differences between the
Kurdish parties.” Maliki's past relationship with the Kurds was a troubled one, reaching a tipping
point when he withheld the Kurdistan region's share of the Iraqi budget in early 2014 after the
KRG sold oil independently against Baghdad's wishes. In addition, Barzani had been a main
figure in attempts to unseat Maliki in 2012 in a failed no-confidence motion in the parliament. The
PUK's Talabani did not support the effort to remove Maliki from power. Thus, it is of no surprise that
Maliki's visit stirred controversy among the Kurds.
Maliki also attempted to project optimism about settling the disputes between the KRG and
Baghdad governments. “There is a lot of hope for resolving the budget dispute between Baghdad
and Erbil,” Maliki said during a joint news conference with Mala Bakhtiyar, a senior PUK leader, on
July 18. “Since we have a constitution, that means we can resolve all the problems. The budget
issue can be addressed on the basis of the constitution.” According to Iraq's budget laws in the
past years, the KRG is entitled to around 17% of the country's budget.
While KDP officials and affiliated media took the lead in slamming Maliki's visit, PUK officials
have been struggling to defend their largely warm reception of him while denying that the visit
had anything to do with Maliki's alleged prime ministerial ambitions or trying to deepen Kurdish
discord. “Maliki wants to see KRG-Baghdad relations improved,” Saadi Pira, a member of the
PUK's political bureau, told Al-Monitor. “He was not here to discuss his premiership and gather
support for [obtaining] it.” Consequently, even though it is not yet clear whether the disgraced
former prime minister is likely to gain another chance to win the premiership, it is clear that his
meddling in Kurdistan could add fuel to the fire of internal divisions there.
Iraq Defense Minister, Brigadier General Khaled Al-Obeidi
PM Haider al-Abadi orders probe over corruption allegations
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Iraqi Prime Minister Haider al-Abadi ordered an investigation on August 1 into allegations of
corruption in weapons deals ahead of planned military moves to retake Mosul from Islamic
State (IS). Infighting over anti-corruption measures, which stalled government activity for
several months and sparked clashes between protesters and security forces in Baghdad earlier
this year, threatens to slow momentum to recapture Mosul and capitalise on battlefield gains
against the ultra-hardline militants. Parliament Speaker Salim al-Jabouri denied charges of
corruption made at a closed parliament session by Defence Minister Khaled al-Obeidi, who
later said on his official Facebook page that he had details of blackmail relating to weapons
contracts, without providing any evidence.Abadi said in a statement that he had directed the
Integrity Commission, a government body tasked with fighting corruption, to investigate the
accusations, and it is as yet unclear where the invesigation will lead.
Current Political State of Play Cont’d.
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Key Recent Security Incidents
Dahuk
Ramadi
Karbala
KutHillah
Najaf
Diwaniyah
Samawah
Nasiriyah
BASRA
Amarah
BAGHDAD
Sulaymaniyah
Baaqubah
MOSUL
KIRKUK
TigrisRiver
EuphratesRiver
Erbil
SECURITY OVERVIEW
With Anbar Province and Baghdad relatively quiet
in recent weeks, focus shifted to Ninewa and
preparations of the eventual assault on Mosul.
Popular Mobilization Forces (PMFs) have been
increasingly integrated into that process, with Iran's
IRGC-Quds Force Commander Qassim Suleimani
reportedly visiting unnamed locations in Ninewa
Province on August 4. Suleimani’s presence in
theater has typically preceded intense militia
involvement in the operation, as happened in
Baiji in mid-October 2015. Thus his recent presence
in Ninewa indicates that Popular Mobilization,
including proxy militias, could play a serious role in
upcoming operations in Shirqat and even Mosul.
Senior militia leaders, including Badr Organization
leader Hadi al-Amiri and Popular Mobilization
Deputy Chairman Abu Mahdi al-Muhandis, also
met with senior ISF officials under Salah al-Din
Operations Command on August 6 to discuss
participation in Shirqat.
The PMFs, however, will face resistance against
their deployment to northern Iraq from Coalition,
Kurdish, and Ninewa officials out of fear of sectarian
reprisals on Ninewa’s majority Sunni population.
The Coalition will also reject militias imposing on
long-cultivated Coalition turf. The Coalition will
likely shape the Mosul operation by leveraging air
support to eliminate militia participation and by
increasing its presence on the ground, including the
August 5 deployment to provide logistical support
to Qayyarah airbase, which was recaptured on
July 9. The base will serve as a logistics hub for
operations into Mosul. Coalition basing in both
Qayyarah and Makhmur may limit the militias’
expansion towards Mosul, though they are likely
to participate in Shirqat. So we would watch for
continued jockeying for advantage among militias
and other forces in the lead-up to the assault on
Mosul.
BAGHDAD
• (Aug 5) Reports emerged
that ISF thwarted a planned
IS attack on Baghdad
called, "The Great Battle of
Baghdad." The attack was
said to have targeted the
Mansour and Kadhimiyah
neighborhoods near
government buildings, and
was reportedly meant to
be similar to the deadly
July 3 Karrada attack, using
SVBIEDs and Suicide Vests.
ANBAR PROVINCE
• (Aug 3) Units of the Iraqi
Border Guards, Federal
Police, Iraqi Army, and
tribal fighters, supported
by coalition air forces,
recaptured the al-Waleed
border crossing with Syria.
IS counterattacked from
the Syrian side on Aug 8,
only to be repelled.
NINEWA PROVINCE
• (Aug 5) Coalition troops
deploy to Qayyarah
Airbase to support its
rehabilitation and logistics
for the assault on Mosul
• (Aug 7) ISF repel a major
attack by IS forces on the
Tigris river downstream of
Mosul, killing 104 militants
• (Aug 8) Iraq Defense
Minister Obaidi's convoy
attacked near Qayyarah
with no casualties
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With ISIS switching tactics in Iraq, Baghdad must raise its game
Over the past few months, the Islamic State has shifted tactics in Iraq, reverting to targeting
civilian locations in the capital and other major cities. Iraq’s government, which has seen
success in retaking territory, must now adjust as well. On July 3, ISIS claimed responsibility for the
suicide car bombing that killed over 300 Iraqis in Baghdad’s popular Karada district. This was the
deadliest bombing since the 2003 U.S.-led invasion. The last time a bomb in the city killed even
half as many people was seven years ago. The surge in attacks comes as the Islamic State is on
the decline. Prime Minister Haider al-Abadi continues to celebrate the victories and liberation of
Iraqi cities from IS fighters, most recently, a few weeks ago in Fallujah.
After suffering such military defeats, the Islamic State has had to change its modus operandi.
The organization, which once sought to conquer and occupy territory in an effort to build a
state, is more frequently resorting to asymmetrical warfare and attacks on civilian populations
in Baghdad. Haider al-Abadi has reached a working compromise that has thus far proved
successful in liberating Fallujah: Iraqi government forces, namely the Golden Division special
operators, move into cities while the Popular Mobilization Forces (PMF) protect borders and
provide support from the outskirts. Washington now directly funds and equips the peshmerga.
U.S.-led airstrikes have proven critical in battles in Fallujah, Tikrit, Baiji, and Ramadi.
General Talib Shaghati al-Kenani Shaghati al-Kenani with US Secretary of Defense Ash Carter in July 2015.
Since conventional battle has become difficult, the Islamic State is returning to the tried-and-
tested tactics of its predecessor, al-Qaeda in Iraq. The organization also uses these attacks to
instigate political division inside Baghdad. They provide the opportunity for Abadi’s opponents
to discredit his leadership. Following the Karada bombing, former Prime Minister Nouri al-Maliki
made several media appearances to criticize the security problems. He even told BBC that he
could be ready to return as prime minister if necessary. For the Islamic State, attacks on civilians
in Baghdad has become an easy way to maintain legitimacy and sustain the narrative of a
powerful organization that strikes fear against national armies and citizens.
To address the tactical shift, Abadi has focused on increasing troop levels in Baghdad. According
Security Analysis
KEY POINTS
• IS shifts to asymmetric warfare
• ISF must respond with coordination
• KRG regains control of Bai Hassan
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to a report, almost half of Iraq’s combat troops are now based in the capital. He has also worked
to get rid of fake bomb detectors, increase aerial reconnaissance, and better fund military
groups. The PMF leadership, moreover, has mobilized inside Baghdad to secure the so-called
“belt areas,” where much of the attacks have occurred. Despite these efforts, civilians in the
capital are not being properly protected, mainly due to lack of coordination between the
several security forces and intelligence agencies.
Analysts have offered various solutions. Some say suggest bringing together the U.S.-led coalition’s
technology, planning, and intelligence expertise with Iraqi ground forces. However, the solution
must also include the emergence of a clearer and more effective structure to monitor and
coordinate security and intelligence agencies. Abadi’s attempt to bring the various government
agencies and non-government groups together, including Order 91, which makes the PMF a
part of the Iraqi armed forces, has thus far failed.
Ideally, the answer is in the integration of the paramilitary groups. Although there is a PMF
administrative office within Abadi’s office, the some 80 groups under the PMF remain autonomous
entities. At times, they are at odds with the state or with each other. Today, integration of these
groups into the state apparatus is too distant a reality. As long as this is the case, however,
Baghdad’s security and intelligence will be at the behest of different actors who do not always
act in unison. This creates the ideal environment for the Islamic State to continue its tactical shift
and stage attacks in Baghdad.
People gather at the site of a car bomb attack in Baghdad al-Jadeeda, in eastern Baghdad, on June 9.
Kurdish Forces retake oil field after Islamic State attack
Kurdish Peshmerga forces in northern Iraq regained control of an oil field near Kirkuk on July
31, after Islamic State militants overran the facility, setting fire to two storage tanks and causing
crude production of 175,000 barrels a day to be halted. “The Peshmerga killed two Daesh suicide
attackers who seized the Bai Hassan field this morning, a third blew himself up, and there is
a search for others,” the Kurdish armed forces said in a statement, using the Arabic acronym
for Islamic State. “The situation is now under near-total control but the fires are still burning at
the oil storage tanks.” Five Kurdish soldiers and one oil worker were wounded in the clashes,
the Peshmerga said. Islamic State invaded large swathes of northern Iraq in June 2014, driving
Security Analysis Cont’d.
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Iraqi Government Tenders
The following pages contain a presentation of highlighted tenders issued in the previous month
by six major ministries of the Iraqi government. The following tenders are intended to provide an
illustration of the kinds of equipment, materials and services that are currently in demand – and
especially those that would be of interest to foreign firms and investors.
Dunia Frontier Consultants maintains a full database of all tenders released by the ministries, as well
as copies of the underlying bidding requirements and instructions. Any interested parties should
contact Dunia for further details and assistance in pursuing these opportunities.
Bidding Process Overview
Each ministry or state-owned enterprise that releases a tender offer provides its own set of
instructions and priorities; in general, however, all bids for Iraqi government tenders require at a
minimum the following steps or submissions:
1. Submission of a bid bond: equal to 1 percent of the total tender value, in the form of a bank
guarantee, certified check, or debenture bond issued by an Iraqi bank recognized by the Iraq
Central Bank or Trade Bank of Iraq.
2. Proof of company registration: foreign companies must present their articles of incorporation
as certified by their own government, as well as the Iraqi embassy in their home country;
locally-based firms must provide their proof of registration with the Iraqi Ministry of Trade, as
well as addresses and contact information within Iraq.
3. Qualified use of proxies/agents: any company wishing to use submit a bid through an agent
must also provide authorization documents as well as proof of affiliation (i.e. an agent must
show certification with the stamp of the manufacturer or bidding companies, as well as
registration with the Iraqi embassy in the country of agency).
4. Proof of purchase: the original receipt of the purchasing tender should be attached to the bid.
5. Proof of financial status: companies may need to submit their records of profits or revenues
as certified by an accountant; a certificate of registration from the General Commission for
Taxes that authorizes participation in any bid; as well as proof of the non-existence of any
outstanding financial or legal disputes.
6. Samples: in the case of certain equipment (e.g. electrical transformers), some ministries require
that product samples be included along with the bid.
7. Price vs. technical bid: some ministries require that the technical proposal be submitted
separately from the cost proposals.
Finally, nearly all ministries and state-owned enterprises offer information sessions during which
potential bidders can seek clarifications and additional information regarding the general
conditions of the tenders.
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Ministry of Oil Tenders
Inside Scoop:
Dunia has learned of the following activity from the Ministry of Oil in July:
- In order to raise performance and open cooperation with international companies, a delegation
from Chinese company Lanpec visited the Heavy Engineering Equipment State Company (HEESCO)
to discuss cooperation, particularly in areas related to the manufacturing of reservoirs and other
core business fields the company is specialized in. HEESCO also confirmed that it completed a
number of projects in oil and gas and other government sectors, to include the manufacturing
of 3 oxidation towers and thermal swap engines with a capacity of 3.5 m3
). The company also
completed the manufacturing of 15 thermal switches and reservoirs for sulfuric acid for Midland
Refinery Company as well as two gas reservoirs for Gas Filling Company.
- Separately, the Ministry of Oil announced that Maysan Oil Company (MOC) will soon start the
work on phase 3 of the Halfaya field, which aims to increase production to a peak of 400,000 bpd
by mid-2018. The company’s general manager, Adnan Nochi, confirmed that upon MoO and the
Council’s approval, the MOC and Petrochina (the main operator) will begin execution, including
the creation of a complex to process crude oil and an integrated export system, as well as the
modernization of the complex's dewatering facilities.
Company Requisition Closing Date Ref. No. Contact
Oil Products
Distribution
Company (OPDC)
The establishment of
Hasaniyat fuel station
23 August 2016 1/2016
Opdc_dura2010@yahoo.
com
Heavy Engineering
Equipment State
Company (HEESCO)
Provision of Radial
Drilling Machine (Italian,
approximate value: IQD
370mn)
5 September 2016 2016/th.h.m/m/4 info@heesco.oil.gov.iq
Oil Products
Distribution
Company (OPDC)
Provision of tires suitable
for paved road and long
distances
30 August 2016 602/2016
Purchases_dep@opdc.oil.
gov.iq
Gas Filling Company
(GFC)
Supply of Thiophene
material (quantity: 50 tons
from West Europe)
21 August 2016 8F/2016 Pd.taji@gfc.gov.iq
TENDERS AT A GLANCE
Total this month: 52
Largest issuer: Midland Refinery Company (10)
www.oil.gov.iq
Oil Complex Building
Port Saeed Street
Baghdad – Iraq
Tel: 00964 – 1 – 7270710
oilministry@oil.gov.iq
Minister:
Adel Abdul-Mahdi
No. of Employees:
≈ 66,500
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Ministry of Agriculture Tenders
Inside Scoop:
Dunia has learned of the following activity from the Ministry of Industry and Minerals (MIM) in July:
- As part of enforcing a new plan to boost local agriculture the Kurdish government has now
added the rest of Iraq to the list of countries from which no agricultural products can be imported,
especially after businessmen started using Iraq as a route to get around import regulations. Traders
and suppliers have been said to bring Iranian and Turkish products into Iraq and from there bring
them into the Kurdistan Region to avoid the ban list and high tariffs. Most of the products are fruits
and vegetables. However, products that can prove they come from farmers licensed in Iraq, with
official Ministry of Agriculture documentation will be allowed into Kurdistan.
For three years the Kurdish government has banned the import of certain products, especially
during harvesting season, in order to protect local agriculture while imposing heavy tariffs on other
products to make local production more appealing to local customers.
Company Requisition Closing Date Ref. No. Contact
State Company
for Seeds
(MESOPOTAMIA)
Sale of wheat residues
(as first meal) in Azizia
(725 tonnes subject to
increase/decrease)
24 August 2016 (18)/2016
meso_nahrin@moagr.
org
Ministry’s
Directorate in
Baghdad/AlKarkh
Renting of farm lands 29 August 2016
111/2016,
98/2016
Zeraa-AlkarKh@Moagr.
org
Ministry’s
Directorate in
Baghdad/AlKarkh
Renting of farm lands 25 August 2016 96/2016
Zeraa-AlkarKh@Moagr.
org
Ministry’s
Directorate
in Baghdad/
Alrasafa
Renting of farm lands 26 August 2016 44/2016
Zeraa-AlRasafa@
Moagr.org
TENDERS AT A GLANCE
Total this month: 15
Largest issuer: Directorate in Baghdad/AlKarkh
http://www.zeraa.gov.iq Minister:
Falah Hassan Zeidan
Ministry governing support
of agriculture within Iraq
through direct activity or
subsidy.
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Other Tenders
Inside Scoop: Tenders
Dunia has learned of investment opportunities with the following provincial investment
commissions, as well as select opportunities with various other national ministries. For
further information or for the relevant point of contact, e-mail contact@duniafrontier.com.
Ministry of Oil (Continued)
The Missan Oil Company (MOC) offered the following tenders:
• Purchase of Inspection, CP, Corrosion Instruments and Monitoring Spares for CPF 1 &
2. Tender submissions are due August 22, 2016
Interested parties can contact the directorate at halfaya_procurement@petrochina-hfy.
com
• SA NY Crane Operation Training (training for 4 iraqi crane operators). Tender
submissions are due August 25, 2016
Interested parties can contact the directorate at Mohammedjawadkadhim@cmitfod.
com, ex_zhr@cnoociraq.com
• Purchase of Camp Maintenance Material, Carpenter materials, Paint materials,
Tools, plumping and sanitary materials and Others. Tender submissions are due
August 16, 2016
Interested parties can contact the directorate at chafikbenlamri@cmitfod.com,
MohamedOsman@cmitfod.com
The Midland Refinery Company (MRC) offered the following tenders:
• Supply of Electrical motors & starters (medium voltage)
• Supply of Bung 2", Tap Seal 2"
• Supply of Fire Fighting Agent Alcohol Resistant
• Supply of Inst. Gramenga/Chrinkage Machine
• Supply of Fire & Safety equipment
Tender submissions for all the above are due August 29, 2016 .
• Supply of VALVE FITTING
Tender submissions for all the above are due August 24, 2016.
• Supply of Wrapping machine
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Other Tenders Cont’d.
• Supply of METALS
• Supply of Supplementary Inst. & Meter
• Supply of SPARE PARTS FOR GROVE CRANE
Tender submissions for all the above are due August 22, 2016.
Interested parties can contact the directorate at purchase@mrc.oil.gov.iq
The Oil Products Distribution Company (OPDC) offered the following tenders:
• Supply of tires with tube and flap. Tender submissions are due August 30, 2016
• Supply of pistols in different measurements and specifications. Tender submissions are
due August 21, 2016
Interested parties can contact the directorate at Opdc_dura2010@yahoo.com, Purchases_
dep@opdc.oil.gov.iq
The Iraq Drilling Company (IDC) offered the following tenders:
• Supply of LINK ELEVATOR. Tender submissions are due August 29, 2016
• Supply of Repair Kit. Tender submissions are due August 29, 2016
Interested parties can contact the directorate at Contracts.south@idc.gov.iq
Ministry of Electricity Tenders
The Ministry’s Electrical Energy Distribution Directorate – Al Sadr issued the following tenders:
• Provision of maintenance work and the collection of electricity network in all of the
directorate’s related areas. Tender submissions are due August 28, 2016
Interested parties can contact the directorate at sdr.dis.dg@moelc.gov.iq
The Ministry’s Directorate for Power Transmission – Mid Euphrates issued the following tenders:
• Supply of oil filter purifier adapters for oil treatment plant (10000 liters / hour of
capacity). Tender submissions are due August 28, 2016
Interested parties can contact the directorate at 35_Eqpt.Dept.Mgr@moelc.gov.iq; 35_
DG@moelc.gov.iq
The Ministry’s Nasiriyah Production Directorate issued the following tenders:
• Supply of 500 Bushing for Nasiriyah steam power station. Tender submissions are due
August 25, 2016.
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Commercial Activity: Deals in Detail
The following is a deep-dive presentation of facts, contact information, and potential business
development opportunities for some of the most important, recently announced, deals and
projects:
Bahrain’s Ahli United Bank raises stake in Commercial Bank of Iraq
Ahli United Bank (AUB), Bahrain’s largest lender, has raised its stake in Commercial Bank of Iraq
to 64.71 per cent, according to a stock exchange statement. AUB purchased a 10 per cent stake
in Commercial Bank of Iraq, AUB said in a statement, without elaborating. A statement from the
Iraq Stock Exchange on 28 July said AUB’s stake in Commercial Bank of Iraq had reached 64.71
per cent after AUB purchased 25 billion additional shares in the bank. It did not mention the price
AUB paid for the shares. Commercial Bank of Iraq’s closing share price on 28 July was 0.43 dinars,
which would value the 10 per cent stake at around 10.75 billion dinars ($9.20 million).
Business Development Opportunities
It is not clear in the news whether the additional stake that Ahli United Bank has taken in Commercial
Bank of Iraq foreshadows a change the strategic relationship between the Bahraini parent and
its Iraqi subsidiary. We believe that, should this turn out to be the case, key business development
opportunities could result. These may center on various aspects that a tighter integration between
AUB and CBI would entail. These could include core functions such as financial systems and other
information technology aspects of the business, like human resources customer support and
relationship management systems. Or, it could be indirectly driven by a tighter integration, such
as other opportunities in branch expansion or restructuring resulting from increased investment
coming from the parent. Either way, any business development opportunity would begin with a
deeper understanding of the nature of AUB's increased investment and whether it implies any
operational change or is just a portfolio enhancement on their part. We would reach out to both
parent and subsidiary management to gain some insight into the implications of the investment
and take it from there.
Interested parties should contact:
Ahli United Bank B.S.C Building 2495, Road 2832, Al Seef District 428, P.O. Box 2424, Manama,
Bahrain, Tel.: +973 17 585 858; email: info@ahliunited.com
Commercial Bank of Iraq PSC, Al-Sadoon Street, Baghdad, Iraq, Tel: (+964) 1 7405583
Deep Casing Tools Deploys First System in Iraq
Casing and completion tool specialist Deep Casing Tools has continued its Middle East expansion
with a successful deployment of its drillable turbine technology in Iraq. The company’s 7”
Turbocaser Express™ high-speed reaming system was deployed recently for a client who had
experienced liner running issues. The Turbocaser Express™ reamed through multiple problematic
areas overcoming reactive shale and limestone stringers. Following a successful cement program,
the Turbocaser Express™ was quickly and successfully drilled out with a PDC (polycrystalline
diamond compact) bit and the next section was drilled during the same run.
Business Development Opportunities
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Dunia research indicated that even though Deep Casing Tools has had some level of business in
the Middle East and Asia for some time, it first established an office and warehouse presence in
the UAE in January of 2015, underpinning a renewed push in the region. The Iraq success seems
to be a direct result of the company's local marketing push. Consequently, we would speculate
that there may be some upside business development opportunity in synergistic businesses in Iraq.
Companies in oil and gas, particularly complementary services and equipment related to the
company's completion and casing tools services, may want to explore any synergistic business
activities that might be possible in the context of Deep Casing's expansion in the Iraqi market.
However, we would caution that the company is rather small, with business in 2014 at about GBP
9 million, although that was double the revenue of the year before. Based on that trajectory, we
would note that the company should be well into its double-digit millions in revenue. Because of
its rapid growth and new opening in Iraq, therefore, it will likely be looking for new partners to help
leverage its presence there and elsewhere in the Middle East. This may mean it will be looking
for a new partner to bring business relationships to the table, but it could also bring new solutions
and help a key partner to win business in Iraq with its apparently unique technology. We would
proceed with caution, understanding that depending on the shape of its current Middle East
expansion strategy, there could be strong synergies with Deep Casing, or perhaps not.
Interested parties should contact:
Deep Casing Tools, Middle East, Jebel Ali Free Zone, Tel.: +971 56 6867425
Dubai's Drake wins $61.5mn Iraqi oil field contract
Dubai-based Drake & Scull International announced on 18 July that it was awarded a $61.5
million engineering, procurement and construction (EPC) contract for the construction of a
water injection network installation project at the Zubair oil field in Basra, Iraq. The contract was
awarded by ENI Iraq, a subsidiary of the Italian oil and gas multinational firm ENI, the company
said in a statement. Under the terms of the agreement, Drake and Scull Oil & Gas (DSOG) will
oversee the EPC of a gas supply pipeline system to a power plant in addition to water injection
systems consisting of flow lines, trunk lines, manifold stations and wellhead hook-up work to
enhance oil recovery.
Mobilisation activity on the project has commenced with a scheduled completion of early
2018, the statement added. Wael Allan, chief operating officer of Drake & Scull International,
said: “Drake & Scull Oil and Gas continues to achieve substantial progress and has gained a
noticeable foothold in the oil and gas infrastructure construction sector in the MENA region in
short period. The contract award has also raised DSI’s total project wins to AED570 million in very
challenging circumstances.”
Commercial Activity: Deals in Detail
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Business Development Opportunities
Drake and Scull has had quite a bit of local success in the Middle East region as well as in Iraq in
particular, especially with respect to construction projects tied to the oil and gas industry. Although
mobilization for this project has apparently already begun, we would expect that the project
could have various ancillary areas that might open opportunities for subcontractors. In addition,
we believe that the current project itself may open other opportunities and insights into other parts
of the massive multi-billlion dollar water injection project which spans not only ENI but also all other
Basra oil and gas projects. Because water injection is crucial to sustaining oil and gas production
levels over the long term, this is one of the key areas that must be invested in going forward in
the key revenue generator for Iraq. Consequently, there should be other water injection projects
besides Drake and Scull's, and any insight into these others may be well worth investigating even
if there are no direct opportunities with DSOG itself.
We would approach DSOG first, to try to gain insight into this project's opportunities and how it fits
into the bigger picture on water injection. Then, we would also reach out to the parent Drake and
Scull International to assess what other touch points might present opportunities in Iraq and the
broader Middle East as well.
Interested parties should contact:
Drake and Scull Oil and Gas, P.O. Box 44325, Abu Dhabi, Tel.: +971 2 493 9239
Drake and Scull International, Dubai International Media Production Zone, P.O.Box 65794, Tel.:
+971 4 4463444
Commercial Activity: Deals in Detail
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Increase in Iraq Oil exports and revenues in July
Iraq’s oil exports rebounded in July to an average of 3.202 million bpd in July, up very slightly
(less than 1%) from the level of 3.175 million bpd in June, and close to May's level of 3.200 million
bpd. With 99.266 million barrels exported in July, revenues reached about $3.744 billion for the
month, a 2.6% decrease from June revenue levels (of $3.845 billion). This represented a departure
from the previous four consecutive months of increased revenues for the state, even as barrels
produced has declined, as the oil price finally broke its winning streak and backed off to $37.72
from June's $40.37 per barrel. Revenues remain far from the monthly peak of over $8 billion in
April of 2014, and trends suggest that both the oil price and Iraqi production volumes are likely to
remain subdued for the near term.
Kurdistan is still exporting oil separately from the Federal Government's State Oil Marketing
Organization (SOMO), flowing through the northern Turkish port of Ceyhan for a ninth consecutive
month, owing to the continuing oil dispute between the Government of Iraq (GoI) and the
Kurdistan Regional Government (KRG).
Crude oil export levels and monthly revenues from July 2015–July 2016. (Data: SOMO)
Iraq and three IOCs agree to restart investments
Iraq has reached agreement with BP, Shell and Lukoil to restart stalled investment in oil fields the
firms are developing, allowing projects that were halted in 2016 to resume and crude production
to increase in 2017, Iraqi oil officials said. The agreements, reached in July and August, effectively
delay to the second half of the year projects that the three companies had planned to carry out
in the first half, which had been suspended because of low oil prices. As a result of the investment,
Iraq's crude output should increase by 250,000-350,000 barrels per day next year, Iraqi officials
said. The country now produces about 4.6 million bpd, most of it from the southern region.
Iraq is OPEC's second biggest producer after Saudi Arabia, and the increase in its output,
Sector Profile: Oil and Gas
KEY POINTS
• Oil revenues down, breaking streak
• Iraq, IOCs agree to investments
• OPEC warns on oil demand in 2017
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alongside that of Iran, could aggravate the global oil glut and complicate discussions between
OPEC and non-OPEC producers on output limits to prop up prices. Shell, BP and Lukoil all declined
immediate comment. All three firms agreed to spend in the second half of 2016 roughly half the
budgets they proposed for 2015. BP agreed to spend $1.8 billion this year at Rumaila. It had
initially agreed to spend $3.5 billion last year, which it later revised down to $2.5 billion. Shell
agreed to spend $742 million after proposing $1.5 billion last year. Lukoil would spend $1.08 billion,
compared to $2.1 billion it had proposed last year.
"Many vital projects that foreign firms were forced to halt due to lower oil prices will be brought
online after the recent budget cuts agreements," said Basim Abdul Kareem, the deputy chairman
of South Oil Co that oversees oil operations in the region. "The companies now should have the
needed budgets to implement these projects," he said. Iraq has yet to reach agreements with
Exxon, CNPC and Petronas on fields those firms are developing in the south.
Oil companies helping Iraq develop its massive oil fields have to clear their spending with
the government each year. They are then repaid with income from Iraq's exports of crude oil
produced from existing fields. The arrangement worked smoothly when oil prices were above
$100 a barrel but since crude has collapsed to about $40 a barrel, Iraq has been struggling to
find enough oil to repay the companies for their investment. Iraq relies on oil for nearly all its
revenues and is spending heavily to fight Islamic State in its northern and western provinces. With
its finances stretched, Iraq asked foreign oil companies last year to spend less than proposed,
and all but cut off investment entirely for the first half of this year to the major projects.
An aerial view of Rumaila Operating Base in Iraq
"The agreed investment budgets are covering almost the rest of 2016 and it’s obviously a win-win
deal," said another South Oil Company official who declined to be identified. "The companies
will be able to resume work on many delayed projects that will help to raise Iraq’s production in
early 2017. We are talking about at least 250,000 to 350,000 additional barrels a day in early 2017."
The Iraqi oil ministry in February said the budget for foreign oil company development costs had
been revised down to just over $9 billion in 2016, while the companies estimated their cost at $23
billion, following complex negotiations. Among OPEC members, Iraq's supply rose the most last
year and output reached a record 4.775 million barrels per day in January 2016. Iran also intends
to boost supply after a deal to lift sanctions imposed over its nuclear programme, making it more
Sector Profile: Oil and Gas Cont’d.
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difficult for OPEC to agree production limits.
Did OPEC Just Issue A Warning For Oil Prices In 2017?
On August 10, OPEC upgraded its 2016 projections for world oil demand growth to 1.22 million
barrels a day (mb/d), up by 30,000 b/d from its previous estimate, but warned that there were
“lingering concerns” that refiners in the U.S. and Europe may cut processing rates, which could
decrease the demand for crude. In its Monthly Oil Market Report, OPEC said that now its latest
estimates peg the total oil demand at 94.26 mb/d. For 2017, global oil demand is expected to
grow at the same level anticipated last month; that is, going up by 1.15 mb/d from 2016 levels. The
total 2017 oil consumption is projected to hit a new record of 95.41 mb/d, OPEC noted.
While either affirming or slightly upgrading last month’s forecasts, OPEC alerted that lingering
concerns persist that the “U.S. and European refiners could cut runs in response to a declining
gasoline crack in both regions in a period when summer driving and margins should have been
at their highest during the year.” This was the main reason why crude prices have come under
downward pressure in recent weeks, OPEC said. Gasoline demand could drop after the end of
the driving season in the third quarter of 2016. The supply side may also pressure middle distillates
as stockpiles remain high across the world, especially in the OECD, where inventories are currently
around 80 million barrels higher than the latest five-year average, OPEC commented.
In addition, lower-than-anticipated demand, high refined-product inventories, and growing
crude supply led to the first decline of the OPEC Reference Basket in five months. In July, the
OPEC Reference Basket averaged $42.68 per barrel. In its previous report in July, OPEC said it
expected the oil market balancing later this year, leaving its forecasts largely unchanged. At the
time of writing, West Texas Intermediate (WTI) Crude traded at US$42.03, down 1.73 percent, and
Brent Crude was down 1.47 percent to US$44.32.
Gazprom Neft production picking up at Badra
Production momentum at the Badra oil field in eastern Iraq has resulted in almost half of the total
volumes emerging this year, Russian company Gazprom Neft said. Gazprom Neft said its Iraqi
subsidiary commissioned its 10th production well at the Badra oil field in Wasit province in eastern
Iraq, near the border with Iran. "With production volumes at the newly launched well now at
6,527 barrels per day, its commissioning has allowed daily production levels at the field to reach
67,000 barrels," the company said in a statement. Total production at Badra now stands at 2.9
million barrels of oil, the company said, with almost half of that coming online since the start of
2016. An additional four wells are in the planning stages with completions expected by early next
year. Gazprom Neft estimates Badra holds around 3 billion barrels of oil in place.
The Russian company's trends contrast with other oil developments in Iraq. According to the
Organization of Petroleum Exporting Countries, of which Iraq is a member, crude oil production
dropped 1.3 percent from May to June. Iraq this year called on international oil companies from
BP to Exxon Mobil to cut their investment plans for the country in order to clear debt. The affect,
however, is that it reduces oil-generated revenue in the Iraqi budget, which in turn starves the
country of the funds to support operations against the Islamic State terrorist group. The Russian
company said the terms of its Iraqi contract call for the eventual production of 170,000 barrels
per day.
Sector Profile: Oil and Gas Cont’d.
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Sector Profile: Kurdistan Energy
KEY POINTS
• KRG exports fall again to 473k b/d
• DNO launches bid for Gulf Keystone
• GKP takeout benefits many parties
KRG oil exports average of 499,908 bpd in July
The Kurdistan Regional Government’s (KRG) Ministry of Natural Resources (MNR) released its July
production and export report this month, stating the region’s export sales averaged 457,314 bpd,
down another notch from 499,908 bpd in June, for the second straight monthly decline. Total
exports for the month were listed as 14,176,761 barrels (bbl) of crude oil (compared to 14,997,250
bbl in June). All oil export volumes flowed through the KRG-Ceyhan crude oil pipeline, with all
crude oil cargoes lifted from the port of Ceyhan.
The KRG realized a total value of $461,196,477 in July from its oil exports, of which $24,914,718
was allocated to producers according to their Production Sharing Contracts (PSCs). In addition,
$63,424,530 of that total realized value was retained by buyers against past prepayments.
Consequently, the net cash balance retained by the KRG from export sales for the month of June
was $ 372,857,229. It should be noted that both the producers and buyers took proportionally
smaller amounts out of the total realized value in July, such that although that amount was more
than $100 million below the June amount of $562 mn, the cash retained by the KRG only fell by
$10 mn, to $373 mn in July from $382 mn in June.
However, neither are foreign traders advancing as much to the KRG as in the past. In July, the
KRG only took $35 mn as an advance against future sales (versus $127 mn in June). The KRG
allocated $ 18.1 mn in petrodollar payments to Kirkuk (versus $30.3 mn in June). This resulted in net
income to the KRG budget of $389,757,229, versus about $479.4 mn in June.
Gulf Keystone facilities in Iraq
DNO set to take over Gulf Keystone
Middle East-focused Norwegian oil company DNO is proposing to put long-suffering investors in
Gulf Keystone Petroleum Ltd (GKP) out of their misery with a $300mn cash and share bid for the UK
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Sector Profile: Kurdistan Energy Cont’d.
group. The proposed transaction follows very quickly on the heels of a debt for equity swap that
effectively rescued London-listed GKP, but diluted existing holders. In fact the cash component
of the bid, $120mn, will provide an “early exit” for former bondholders unable or unwilling to hold
the firm’s equity. DNO is one of the biggest operators in the volatile Kurdistan region of northern
Iraq, where GKP also made (and some would say also destroyed) its reputation. DNO owns 55%
of the Tawke Field, which produces 120,000 barrels of crude a day, while Gulf Keystone owns
another premier asset, Shaikan, which churns out 40,000 barrels. For investors in GKP it has been
a roller coaster ride, which in recent years has involved a rather scary downhill section. The stock
topped out above £4 in 2012 when it first began to enjoy success at Shaikan, at a time when
Kurdistan was seen as an exciting new oil frontier.
The company funded growth by raising debt based on the potential of its world class assets.
However a perfect storm of falling prices, political instability and rather modest export income
(that fell well short of what was needed to meet its financial requirements), hurt GKP badly. The
company's share price closed at 5.3p on 11 August, not much higher than recent lows close to
3p in July. DNO’s chairman, Bijan Mossavar-Rahmani, said, "Combining these two companies will
create further scale and unlock operational synergies that will reinforce DNO's already formidable
presence in Kurdistan. "We understand Shaikan's challenges and opportunities and we are well
positioned to focus financial, technical, commercial and logistical support to maintain and then
grow production at this field to the benefit of both Kurdistan and our investors.”
A Genel oil facility in Kurdistan in 2014
Genel cuts outlook; shares fall
Genel Energy, one of the main oil producers in Iraqi Kurdistan, cut its revenue outlook for the year
on July 28 after it reduced its production target earlier in the month. London-listed Genel reported
a first-half pretax loss of $4.2 million, down from a $31.4 million profit in the same period last year
as weak oil prices and lower production took their toll. Shares in Genel were down 5 percent at
98 pence a share shortly after market opening the same day. Genel said 2016 revenue would be
$200-230 million, down from $200-275 million previously expected. The oil producer, which is still
owed $412 million by the Kurdistan Regional Government (KRG) for oil exports in 2014 and 2015,
halved its proven and probable reserves at its Taq Taq oil field in Kurdistan earlier this year.
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The Taq Taq and Tawke oil fields saw much lower production levels year on year, partly due to
the closure of the Ceyhan export pipeline to Turkey and partly due to natural decline in the
reservoirs. This led Genel to cut its full-year production target by around 14 percent earlier this
month to 53,000-60,000 barrels per day (bpd). With reliance on revenue from its main two oil
fields, Genel is banking on a recovery in oil prices to beef up its balance sheet in the short term.
"With its production and balance sheet, Genel is a decent levered play on oil price recovery,
but the shares may otherwise struggle to make progress," said Daniel Slater, analyst at Arden
Partners. In the long term, Genel's Miran and Bina Bawi gas fields are expected to contribute
significant cashflow through gas exports to energy-hungry Turkey.
DNO consolidation a potential boon for all parties
Norwegian independent DNO’s move for fellow Iraqi Kurdistan producer Gulf Keystone should
potentially be welcomed by all interested parties. For Gulf Keystone shareholders, the $300mn
cash-and-shares bid offers a way out before their ownership gets diluted under Gulf Keystone’s
last-ditch restructuring plan. For Gulf Keystone’s partners in the Shaikan field, it holds out the
prospect of an operator with some cash for investment in the field’s development. And for DNO,
it offers a chance to broaden its asset base in northern Iraq’s Kurdish region, for a reasonably low
outlay, at a time when there are signs of confidence returning to the region’s upstream sector.
But the move will be welcomed most in Erbil, where it will be read as a sign of belief in the region’s
prospects. This is quite the turnaround from the start of this year, when Gulf Keystone’s chief
executive said the Kurdistan Regional Government’s (KRG) inability or unwillingness to pay for
crude exports had put his company “on a financial knife edge”. Massive downgrades to reserve
estimates had also shaken the sector that was already caught in the middle of a political stand-
off between Erbil and Iraq’s central government.
Anewpaymentagreement,implementedinFebruary,wasaimedatensuringplannedproduction
capacity rises. DNO and Turkish firm Genel have said that, after five months of regular payments
under the new system, they will hold their end of that bargain. Erbil hopes the investment pays
off – its battles with Islamist group IS, in northern Iraq and in Syria, is a massive drain on finances
that depend entirely on crude sales. The potential for fresh disruption to exports through Turkey is
always at the back of minds, and even more so in a post-coup world, hence the sounding out of
plans for an export pipeline through Iran.
The potential deal has a political angle too. Genel trumpeted its ambitions to be a consolidating
force in the KRG oil sector. And the KRG is highly dependent on Turkey for its crude export route
and for future gas sales. The unremitting slide in Genel’s market capitalization and the reserves
downgrade of its Taq Taq field look to have taken it out of the consolidation game for now,
although it is too early to entirely rule out a counter bid for Gulf Keystone. Given the delicate
and ever-shifting political relationships within and between Turkey, Iraq, the KRG and the wider
region, Erbil may be pleased to see a more unambiguously extra-regional company taking on
Shaikan.
Sector Profile: Kurdistan Energy Cont’d.
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Sector Profile: Telecom and Media
KEY POINTS
• Iran and Iraq to sign trade MoU
• Jordan closes Iraq border again
• KRG bans foreign produce
Zain profits up despite Iraq challenges
Operator group Zain said its results were impacted by continued instability and tax issues in Iraq,
with “intense price competition” also affecting key operations. Asaad Al Banwan, chairman, said:
“It is pleasing to report growth in several of our key financial metrics for the second quarter and
six-month periods, given that Zain Group is exposed to conflict zones and currency fluctuations
that continue to impact the growth potential of our business.”
Quarterly net income of KD45 million ($148 million) was up 14 per cent year-on-year, on revenue
of KD275 million, down 3 per cent. For the first half, net income increased 2 per cent to KD82
million ($272 million), on revenue of KD552 million, down 2 per cent. The company ended the
period with 45.2 million active customers. Data contributed 22 per cent of total group revenue in
the first half, with the company citing a focus on “leveraging 4G networks”. Zain Sudan launched
LTE, the technology’s debut in the country, marking the sixth Zain operation to introduce it.
Many in Iraq carry multiple cell phones because of the fragmented carrier network services and
coverage
With regard to Iraq, continued instability plus the introduction of a 20 per cent sales tax on mobile
services, as well as “wide-ranging tax increases on other sectors in the country”, are affecting
spending on mobile services. H1 net income more than halved to $24 million, on revenue which
decreased 11 per cent to $536 million. Scott Gegenheimer, CEO, said: “The severe impact of
ongoing civil instability in Iraq is a concern for us, both from the perspective of the human suffering
that it causes, but also due to the detrimental impact it has on our business. The sales tax instituted
in the country also had a determined negative effect on our overall financial results, though we
remain optimistic that the strategy we have in place is the correct one for our circumstances.”
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Sector Profile: Telecom and Media, Cont’d.
For its home market of Kuwait, Zain noted “a very challenging six month period that witnessed
intense price competition impacting its financial performance”. Gegenheimer said: “We are
actively seeking and securing sources of incremental revenue in the digital space including
enterprise M2M services and smart city solutions to governments and mega real estate projects
across the region. We have entered into several strategic partnerships recently, which we strongly
believe will fast-track and further enhance our ambitions to unlock many lucrative opportunities
in the connected society revolution.”
Icflix launches streaming in Iraq
On August 3, Middle East subscription video-on-demand service Icflix announced that it is
launching in Iraq through a partnership with the country’s leading mobile telco Asiacell. Both
prepaid and postpaid Asiacell customers will be able to subscribe to the icflix library of content
for a monthly fee of 10,000 IQD (US$8.56), a weekly fee of IQD4,000 or a daily subscription for
IQD1,200. Content available will include Arabic female teen superhero animation series Dunia,
Arabic series including Al Arrab: Taht Al Hazem, Layali El Helmya 6 and Al Tawarid and Hollywood
movies Lone Survivor, Grace of Monaco and Need for Speed.
“We are glad to have partnered with Asiacell, the leading provider of mobile telecommunications
in Iraq who will ensure their subscribers receive the best of ICFLIX content with ease and
uncompromising quality,” said Carlos Tibi, founder and CEO, icflix. Zring Faruk, Asiacell chief
commercial officer, said: “This new project and our partnership with a leading company such
as icflix reflects our deep interest in modernising the services we use in order to enhance the
performance of our company and in turn provide the best entertainment services to our
subscribers who deserve the most outstanding services, especially Internet streaming services.”
Daesh cuts off internet in Mosul
The Daesh terrorist group has cut off Internet access in Iraq’s northern city of Mosul -- which
the group has held since mid-2014 -- with the apparent aim of preventing local residents from
communicating with elements of the Iraqi army. "Daesh is afraid that Mosul residents will use
the Internet to inform the army as to the whereabouts of the group’s positions and strongholds
in the city," the Iraqi army’s media unit said in a statement. According to local witnesses, Daesh
has set up small Internet centers throughout the city at which local residents can go online, but
the centers are full of Daesh agents who monitor what people are looking at and who they
communicate with.
Omar Abdullah, a Mosul University professor and expert on Islamic groups, said that Daesh "has
recently come to understand how much the Iraqi security forces depend on information provided
by Internet users -- especially when it comes to the locations of Daesh positions and sites". "With
this in mind," Abdullah noted, "the group decided to cut Internet access in Mosul before the Iraqi
army launches its anticipated campaign to liberate the city." Iraqi forces are currently preparing
a major offensive aimed at retaking Mosul, Iraq’s second largest city.
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Commercial Activity: Deals & Details
Projects and Contracts Announced in July
Company Name Industry/Sector Country of Origin Province/Area Description
Ahli United Bank Banking/Finance Bahrain Iraq-wide
Bahrain's largest lender raised stake in Commercial
Bank of Iraq by 10 per cent to 64.7 percent
Deep Casing Tools Oil and gas UK Undisclosed
Deployed 7” Turbocaser Express high-speed
reaming system for a client who had experienced
liner running issues
Drake and Scull International Oil and gas UAE Basra
Awarded a $61.5 million EPC contract for
construction of a water injection network installation
project at Zubair oil field in Basra
MBDA Missile Systems Defense France Iraq-wide
Awarded a GBP 28 million contract to support long
range missiles used in Iraq and Libya
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Investment Climate
Japan to lend $2.1 bn to develop Basra refinery
A top Iraqi official announced on 27 July that Japan will
lend an amount of $2.1bn to Iraq, to be allocated for
developing Basra refinery. Ali Shadad Al Fares, Head of
Oil and Gas Committee of the Basra Provincial Council
said: “The Japanese government has agreed to lend
Iraq a loan of $2.1bn to execute a number of projects for
rehabilitating Basra Oil Refinery. The loan will be repaid in
40 years with a 2% interest rate.”
He further added that the loan is to be used in
implementing strategic and vital projects in Basra refinery
that are to be completed by 2020. These projects include
oil gas hydrogenation project with a capacity of 20,000
b/d. “These projects are designed to bring production
at the refinery to about 4,500t of reformulated gasoline,
and about 27,000 barrels of fuel oil and 40,000 barrels
of hydrogenated oil gas per day, in addition to the
production of 500t of liquid gas,” revealed Al Fares.
Lack of banking culture in Kurdistan
Bank managers in the Kurdistan Region paint an
optimistic picture of the banking system despite a
continued financial crisis and lack of a banking culture
among people. “IBL bank have never experienced a
case where a client has come and asked for money and
we did not have enough money to deliver,” says Ishtar
Zulfa, manager of the Erbil branch of the International
Bank of Lebanon (IBL). Zulfa says that people still trust
the bank but taking into account the financial crisis, they
need a little assurance that their money will stay and can
withdraw when they want.
Zulfa explained that for transactions within the Kurdistan
Region it is business as usual. The only challenge is dealing
with transactions outside the region, including in Iraq. “We
do have money in the bank but it has become difficult to
transfer money to Baghdad and other countries due to
the instability of the region and the tension between the
two regions,” she said. She pointed the finger of blame
at the central banks in Baghdad and Erbil: “The central
bank in Kurdistan is not very responsive to our requests
to transfer money to Baghdad and Baghdad is not
transferring money to Kurdistan. There is no cooperation
between the two.”
Nevertheless, she believes that locals have more trust
in international than national banks. “There are still
people who come and open accounts because it is an
international bank, because they trust the international
banks than the Iraqi ones.” The Kurdish government
decided earlier this year to boost the banking sector
as part of wide ranging reforms of the financial system,
and people’s understanding of banks seems to have
changed. “Based on my experience I can say there has
been a huge development in people’s knowledge about
banks,” said Zulfa, who has worked in the sector in Erbil
for a decade. “Every year it improves. Before, when we
were talking about credit cards, only few had any idea
what we were talking and now I have dozens of requests
for credit cards.”
Iraq receives first IMF payment
The Iraqi government had already received the first
installment of a multi-billion dollar loan approved by
the International Monetary Fund (IMF) in May, an Iraqi
official finally confirmed in July. "The Iraqi government
received Tuesday the first $634 million installment,"
Mazhar Mohammed Saleh, the Iraqi Prime Minister's
financial affairs advisor said, adding that three of the 13
payments will come during 2016 and total an estimated
$2 billion. "The first installment was allocated to the areas
of the relief of the displaced, education, health, and
social care," he said. In May, Iraq signed an agreement
with the IMF for a $5.3 billion loan, at an interest rate of
1.5 percent, after meetings held in the Jordanian capital,
Amman. Iraq announced last year that it borrowed
$1.9 billion from the World Bank during 2015 in order to
cover “the expenses of reconstructing the liberated
areas from [militant group] Daesh.” Falling oil prices have
contributed to an economic crisis Iraq has been facing
which has forced the government to reduce its budget
and introduce austerity measures.
KEY POINTS
• Japan lends $2.1B for Basra refinery
• Kurdish banking culture lacking
• Iraq got first IMF payment in May
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High level delegation participates in IBBC retreat
Dara Rasheed, Iraq’s acting Minister of Housing and Construction, Jan Kubis, Head of UNAMI and
Special Representative of the United Nations for Iraq, Robert Bou Jaoude, World Bank’s Special
Representative for Iraq, Patrick Simmonet, EU Ambassador to Iraq and Baroness Nicholson of
Winterbourne,IBBCExecutiveChairmanandUKtradeEnvoyforIraq,AzerbaijanandTurkmenistan,
were amongst the participants of IBBC’s annual retreat at Cumberland Lodge, Great Windsor
Park, held the 8th-10th July 2016. Christian Josz, Mission Chief of the International Monetary Fund
(IMF), gave a presentation on the IMF’s Stand-By Agreement for Iraq approved on the 29th June.
The retreat was also attended by senior officials from the Home Office and the Iraqi Embassy in
London, who gave speeches on Friday evening. The after dinner speaker on Saturday was Sir
Terrece Clark KBE, Chairman of the Friends of the Basrah Museum, who updated delegates on
the status of this important cultural initiative.
Iraq considers Belarusian Universal Commodity Exchange (BUCE)
The Belarusian Universal Commodity Exchange (BUCE) recently held a meeting with a delegation
from the Iraqi Businessmen Association (IBA). In the course of the talks, the representatives of Iraq’s
production and trading companies learned about the BUCE's main activities and principles as
well as the advantages of leveraging the exchange mechanism to boost Belarus-Iraq bilateral
trade.
In this context, the sides discussed prospects of using BUCE’s electronic platforms when selling
Belarusian products in Iraq and other Middle Eastern countries. It was also noted that in case
of a significant number of transactions involving Iraqi companies a BUCE branch office or an
exchange warehouse might be opened in Iraq.
Closing the meeting, the sides agreed to develop cooperation in information exchange,
promotion of BUCE’s services among the Iraqi business community, and facilitation of Iraqi
companies’ participation in exchange trade. As a first step, there are plans to arrange a workshop
for IBA members so that they could study basic commodity trading strategies and learn how to
work with BUCE’s electronic trading platform of industrial and consumer goods.
Conferences & Delegations
KEY POINTS
• Iraq seeks Mexican investors
• Barzani receives Iran delegation
• US consuls in Erbil transition
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Conferences & Delegations
Minister of Foreign Affairs Jaafari receives new Hungarian Ambassador
Minister of Foreign Affairs Dr Ibrahim Al-Jaafari received a copy of credentials of the new
Hungarian Ambassador Mr Attila Tar, on 3 August 2016, at the ministry headquarters. During the
meeting, they reviewed bilateral relations and means to promote them to serve the interest of
the two friendly peoples. The minister wished the new Hungarian Ambassador every possible
success in fulfilling his diplomatic duties, expressing the readiness of the ministry to supply every
possible assistant to make the work of the mission in Iraq successful.
HE Dr Al-Jaafari called on the Hungarian companies to invest in Iraq, particularly, in the energy
sector. Dr Al-Jaafari urged the Hungarian side to grant Iraqi students scholarships, and make
further training courses in several fields, asserting the need to reactivate trade, cultural, and
health conventions, signed previously between the two states, or conducting agreements that
are still under study. “Hungary is standing by Iraq, and it’s ready to provide further support to
Iraq,” The Hungarian Ambassador asserted, expressing the readiness of Hungary to invest in
Iraq in energy field. Mr Attila Tar congratulated the Iraqi armed forces for achieving significant
triumphs against Da’esh.
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Conferences & Delegations Cont’d.
Key Upcoming Conferences
Name Location Dates Cost* Contact
6th Erbil Oil and Gas Interna-
tional Exhibition
Erbil, Iraq 22-25 September 2016 $1000 +
Pyramids International
T: +90 216 575 28 28
Email: info@pyramidsfair.com
International Healthcare Exhi-
bition And Conference
Baghdad, Iraq 28-30 September 2016
contact orga-
nizer for details
International Fairs and Promotion – Iraq
Tel: +964 (0)66 2567634
info@ifpiraq.com
Project Iraq Erbil Erbil, Iraq 3-6 October 2016
contact orga-
nizer for details
Mr. Fady Darwiche
+964 66 256 7634 / +964 66 225 2048
fady.darwiche@ifpiraq.com
Erbil International Fair Erbil, Iraq 10-13 October 2016
contact orga-
nizer for details
Ms. Rania Houjaij
+961 5 959 111 Ext 112
rania.houjaij@ifpexpo.com
Project Iraq Baghdad Baghdad, Iraq 19-22 October 2016
contact orga-
nizer for details
Mr. Fady Darwiche
+964 66 256 7634 / +964 66 225 2048
fady.darwiche@ifpiraq.com
Kurdistan-Iraq Oil & Gas Con-
ference and Exhibition
London, UK 5-7 December 2016 £2,749
Mr. Mohamad Kantar or Sebastien David
+44 20 7978 0781; +44 20 7879 0080
kiog@thecwcgroup.com
Basrah Building Basra, Iraq 11-14 December 2016
contact orga-
nizer for details
Pyramids International
T: +90 216 575 28 28
Email: info@pyramidsfair.com
* Nearly all events offered reduced prices for early registration or limited participation.
30. 30
Iraqi Commercial Activity &
Business Development Opportunities - August 2016
Whispering Bell MEA DMCC, PO Box 487151, Dubai, United Arab Emirates. Tel: +9714 448 6690
www.whisperingbell.com
About Whispering Bell
Established in 2009 and headquartered in the UAE, Whispering Bell has rapidly expanded
across the region and now provides security risk mitigation support to clients from the oil and
gas, critical national infrastructure, finance, telecommunications, maritime, aviation and
government sectors.
We are comprised of passionate security, risk management and market entry specialists,
focused on delivering integrated physical security, technical security and business advisory
solutions with a core focus on service delivery.
By listening to our clients’ needs and sharing our experience, each one of our solutions is
unique and built around the specifics of the country, sector, assets and people within the
client’s organization.
Business Advisory Services
Market Research, Commercial Due Diligence, Partner Vetting and Feasibility Studies
Threat and Risk Assessments
Security Consultancy Services
Technical and Information Security Services
For more information on our reporting capability and pricing, contact: ras@whisperingbell.com