Maliki approve the allocation of 25 billion dinars to open the closed border crossing with Iran 34 years ago Alsumaria News / Diyala’s governor of Diyala Amer Salman Nostra, on Tuesday, Prime Minister Nuri al-Maliki agreed to allocate 25 billion dinars to speed up the reopening of the border crossing closed with Iran 34 years […]

Foreign Minister Hoshyar Zebari held talks in Tehran last week with the Minister of Foreign Affairs of the Islamic Republic of Iran, Mohammad Javad Zarif, on the issue of the Shatt al- Arab, land borders and border rivers.

The talks were held in a friendly and constructive atmosphere with a common desire to address the raised issues in accordance with the good-neighbor principle, the rights and obligations of the two countries.

The two sides reviewed results of the joint technical committees meetings, the substantial progress made in the field of establishing mechanisms to settle all outstanding issues and ways to get rid of the disastrous war legacy including the confrontation and hostility between the two friendly countries and peoples.

The two sides reached understandings on how to move forward and implement the agreements in accordance with the borders treaty, protocols and agreements signed between the two countries in 1975.

The discussions focused on the development of bilateral relations and solution of all outstanding issues concerning river borders in the Shatt al-Arab , land borders and common rivers on the borders. The talks resulted in reaching agreements on the delimitation of the river borders in Shatt al-Arab in a way that ensure interests and rights of both parties through the re-counting of the ( Talouk ) line border, in addition to cleaning Shatt al-Arab and removing drowned bodies , preventing pollution , conserving its environment , regulating the navigation in a manner that serves interests of the two countries’ ports .They also agreed on resuming work on the land borders , the borders’ common rivers and sharing of their water.

The agreements were included in the joint memorandum of understanding to be signed as soon as possible, the two Ministers also exchanged views on a number of regional issues, particularly the Syrian crisis and its tragic consequences on the Syrian people and the region as a whole, and stressed the need to search for political solutions and initiatives by countries of the region to put an end for the crisis. The Iranian Foreign Minister briefed Mr. Zebari on the latest result of the nuclear talks in Vienna.

The two Ministers held a press conference in which they reviewed results of two delegations’ talks.

(Source: MoFA)

Zebari denied the purchase of arms from Iran and announces agreement on clearing the Shatt al-Arab from the sediment and the demarcation of the land border Long-Presse / Baghdad denied Foreign Minister Hoshyar Zebari, on Wednesday, there was no agreement to buy arms from Iran, and between that Iraq is “committed” to the UN resolutions […]

Rise in the volume of trade exchange between Iraq and Iran to 15 billion dollars Chamber of Commerce suggested the joint between Iraq and Iran, and the arrival of the balance of trade between the two countries in March to the next [15] billion dollars. Amin said the Chamber of Commerce between the two countries Jahanbakhsh […]

Reuters: The documents show that Iraq signed a military deal with Iran Iran signed a deal to sell Iraq weapons and ammunition worth 195 million dollars, according to documents seen by exclusively by Reuters, which reported that the move violated the United Nations embargo on sales of Tehran’s military. documents show that the agreement was […]

Diyala opened a border crossing with Iran in 2015 and 12 billion allocated for rehabilitation Alsumaria News / Diyala revealed the Diyala provincial council, said Friday that the file re-open the crossing Somare – Mandali border between Iraq and Iran to resolve once and for all and will see the light in 2015, and among […]

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

In a Feb. 4 interview with the semi-official Iranian Tasnim News Agency, Mohammed Majid al-Sheikh, Iraq’s ambassador to Iran, was reported to have revealed his country’s intention to strike a deal to buy weapons from Iran.

The agency quoted Sheikh as saying, “Some well-informed sources said that the Iranian-Iraqi talks came in light of the Iraqi Ministry of Defense’s vision of the need to supply the Iraqi army with Iranian-made military equipment, given their efficiency and importance.”

This style of statement is inconsistent with the ambassador’s official role, which is to present the official position of the Iraqi government, from official Iraqi sources, not from “well-informed sources.” This calls into question the validity of this supposed news, especially since it has not been confirmed by Iranian authorities or the Iraqi officials typically involved in such deals.

Mohammed Ugail, a member of the ruling coalition in Iraq, had declared in a Jan. 17 interview with a Russian website that the Iraqi government was seeking to strike arms deals with Egypt as well as Iran.

In addition, several newspapers and news websites have reported on an Iraqi purchase of Iranian weapons, giving the story additional impetus by claiming that the deal has already been sealed. They quote Sheikh as having said, “Iraq signed a memorandum of understanding with Iran to buy weapons and military equipment.”

Iraqi Defense Minister Saadoun al-Dulaimi had traveled to Iran on Sept. 23, it is thought to discuss ways to promote defense cooperation between the two countries. His visit followed that of Iraqi parliament speaker Osama al-Najafi, to offer condolences to the commander of the al-Quds Force, Qasem Soleimani, on the death of his mother.

By John Lee.

Bloomberg reports that Iran plans to offer international companies better oil contracts than Iraq, as it seeks long-term investment to revive its energy industry.

As Iran discusses limits to its nuclear program to remove Western sanctions against its financial and energy businesses, Mehdi Hosseini, of the Iranian oil ministry, said it is developing new hydrocarbon contracts that are “in line” with international practice and law, and that will offer more flexible terms than those used by Iraq. He added:

We want oil companies to be involved in joint fields and high-risk fields … We are looking at longer-term commitments so that our own companies can learn alongside foreign companies …

Iran will give a preview of its new investor contract to a domestic audience in Tehran next week, and will introduce it at a conference in London in late June or early July. Hosseini commented:

Any new model will have to be win-win for all parties involved … The new contract is our own type. We haven’t given it a name.

Iran will resume negotiations with world powers over its nuclear activities on 18th February, after reaching a preliminary deal in November. The nation needs as much as $150 billion in investment over the next five years to develop its oil and gas, and Iranian officials expect most of the money to come from foreign companies.

But Abdul Mahdy Al-Ameedi, director of the Iraqi oil ministry’s licensing department, told Bloomberg:

Iraq’s contracts are the best in the world in terms of making high national profits … The Iranians seek to copy our contracts and improve some terms by giving more privileges to companies to work in Iran. Nothing has happened so far, it’s just an idea.

(Source: Bloomberg)

(Flag image via Shutterstock)

By John Lee.

India’s Hindustan Petroleum (HPCL) aims to increase crude imports from Iraq by 8 percent to about 65,000 bpd in the year to the end of March 2015, as it takes up better terms offered by Baghdad.

The company’s director of refineries, B. K. Namdeo, told Reuters that Iraq is offering 60 days’ credit on purchases, up from 30 days previously.

HPCL halted purchases from Iran in April after insurers did not extend coverage for processing oil from the sanctions-hit nation.

Although Iran has reached a deal with world powers over its nuclear programme which has meant the relaxation of some sanctions, insurance and reinsurance for processing its crude has not yet been addressed.

India’s biggest refiner, Indian Oil Corporation (IOC) has increased volumes from Iraq by 5 percent to 284,000 bpd, as it also took advantage of the better credit terms.

(Source: Economic Times)

By John Lee.

Iraq and Iran, which together hold more oil reserves than Saudi Arabia, are planning to challenge Saudi Arabia’s grip on OPEC and its status as the “swing producer” in the cartel, according to a report from The Telegraph.

With Iraq poised to triple its capacity to 9 million bpd by 2020,  the result could be a dramatic fall in oil prices.

Hussain al-Shahristani (pictured), Deputy Prime Minister for Energy, said:

We feel the world needs to be assured of fuel for economic growth … It’s very difficult to predict actual world (oil) demand by 2020 because the world economy is unpredictable … Iran has been in touch with us; they want to share our contracts model and experience.

This news that Baghdad is working with Iran to help it attract investment ahead of the possible lifting of sanctions could be seen as a challenge to Saudi Arabia. Oil companies are understood to be queuing up to win Iranian oil deals.

The report speculates that, even if Iraq is able to achieve its target of boost production capacity as planned, it is unlikely to be able to put in place sufficient pipeline and port infrastructure to export the additional crude; the main export terminal near Basra will require billions of pounds worth of improvements in addition to the refurbishment of its pipeline network.

Currently, crude oil exports account for 93 percent of Iraqi government revenue.

(Source: The Telegraph)