DNO ASA, the Norwegian oil and gas operator, today announced issuance of a notice of discovery to the Kurdistan Regional Government of Iraq on the Baeshiqa-2 exploration well, in accordance with the requirements of the Production Sharing Contract, after flowing hydrocarbons to surface from the upper part of Triassic Kurra Chine B reservoir.

Following acid stimulation, the zone flowed variable rates of light oil and sour gas. Further testing of this and other Jurassic and Triassic zones is ongoing and will determine the next steps towards appraisal and assessment of commerciality.

The Baeshiqa-2 well was spud in February 2019 and drilled to a total depth of 3,204 meters (2,549 meters TVDSS).

DNO acquired a 32 percent interest and operatorship of the Baeshiqa license in 2017. Partners include ExxonMobil with 32 percent, Turkish Energy Company (TEC) with 16 percent and the Kurdistan Regional Government (KRG) with 20 percent.

(Source: DNO)

The Iraq Britain Business Council (IBBC) took a significant group of members on a trade mission to KRI this week. Paramount was the need to review business opportunities and investment in the region and to learn directly from the Prime Minister Barzani his plans for business and industry.

The group, led by Baroness Nicholson, UK Trade Envoy to Iraq, Christophe Michels MD of IBBC and Eng Rasmi Al Jabri, Deputy Chairman of IBBC included representatives from Jaguar LandRover, Crescent Petroleum, EY, Siemens, Sardar Trading Agency, Garda World, Stirling Education, KPMG, G4S, OilServ Kuwait, and from the DIT Mr Rawand Askary, and James Thornton of UK FCO.

The Prime Minister introduced a number of Ministers for discussion with the group, including KRI Minister of Electricity Mr Kamal Mohammad Saleh discussing project finance and other related matters. The DG of the KRIs MoI joint crisis coordination centre Mr Hoshang Mohamed discussed the clearance of IEDs & mines and the handling of the overall IDP and refugee crisis (that G4S have been heavily engaged with).

In conversation, Mr Barzani stated that ‘the KRI government will bring in reforms to cut down on red tape for the private sector to develop. It will pursue a policy of registering companies through a ‘one window’ online portal which should allow company registrations to be done in the same time it takes in western countries to do so. He also said that the new administration is streamlining overall bureaucracy for private businesses to limit unnecessary Government interference.

The Government is also planning to draft a new bribery law to fight corruption and is looking at reviewing its financial framework to encourage PPPs throughout the economy including education and health. Diversification of the economy is big on the agenda with agriculture, tourism and the manufacturing of goods being a priority. KRI should import less and produce more and eventually find markets outside its borders for its products. Foreign partners for all of this are sought after.’

A permanent revenue sharing agreement with Baghdad is top of the agenda among other things to allow credit export agencies to work directly in the KRIG.’

On Sunday the Planning Minister and Mr Amanj Raheem, Cabinet Secretary, Kurdistan Regional Government spoke, and the Ministers for Construction and Electricity attended the British Consulate Reception taking place at the JLR show room kindly sponsored by Sadar Trading Agencies – thanks to Mr Sardar Al-Bebany Chairman and CEO. Dr Dara Al Khayat, Chairman of KRI federation of Chamber of Commerce and Industry in Erbil, hosted a Monday evening event and on Tuesday the mission visited Crescent Petroleum offices.

The trip continued to Baghdad

(Source: IBBC)

KRG Prime Minister Masrour Barzani has received a delegation from the Iraq Britain Business Council (IBBC) headed by its chairman and the UK Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Turkmenistan, and Kazakhstan, Baroness Emma Nicholson.

The two officials discussed strengthening bilateral trade relations between the Kurdistan Region and the United Kingdom.

The Prime Minister outlined the government’s plans to modernise the Kurdistan Region’s economy, including through increasing local production and export levels and building up capacity in the service industry.

The Prime Minister highlighted the government’s commitment to working with partners such as the Iraq Britain Business Council to develop the Kurdistan Region into a preferred destination for investors.

Baroness Nicholson expressed the UK’s support for the Kurdistan Regional Government’s plans to diversify its economy and expand its sources of revenue, especially through the new government’s focus on transforming the agriculture and industry sectors.

(Source: KRG)

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

Iraqi President Barham Salih met separately Sept. 18 with four Kurdistan Regional Government (KRG) leaders — President Nechirvan Barzani, Prime Minister Masrour Barzani, parliament Speaker Rewaz Fayaq and Deputy Prime Minister Qubad Talabani in Erbil, the KRG capital.

The purpose of Salih’s visit was to warn the KRG about the region’s share in Iraq’s federal budget for 2020, scheduled to be passed by the national parliament by the end of the year.

A well-informed source close to the ruing elites in both Baghdad and Erbil told Al-Monitor on condition of anonymity that the Iraqi president — who is Kurdish — cautioned the Kurdish leadership that the federal government in Baghdad will cut the Kurdistan region’s share of budget, including salaries of the KRG employees, if Erbil fails to hand over a portion of its oil to the State Organization for Marketing of Oil. The organization is responsible for selling Iraq’s oil.

Click here to read the full story.

By John Lee.

The Kurdistan Regional Government (KRG) has reportedly banned the import of grapes into the Kurdistan Region.

Rudaw quotes Hussein Hama Karim, KRG’s Agriculture and Water Resources spokesperson, as saying:

“The ban is to protect our domestic product … We will continue our efforts to completely ban the illegal import of products into the Region … Our domestic products must sell in the markets.”

More here.

(Source: Rudaw)

By John Lee.

The Kurdistan Regional Government (KRG) is to repay the debts of what it describes as “around 9,000 hardworking farmers“.

In a statement, the KRG said the Ministry of Agriculture and Water Resources will repay over IQD 222 billion (USD 186 million), in line with the new government’s objective of developing and diversifying the Kurdistan Region’s economy.

(Source: KRG)

By John Lee.

Manufacturers of red bricks are reportedly criticizing the Kurdistan Regional Government (KRG) for its failure to financially support the industry and capitalize on demand in the rest of Iraq.

According to information obtained by Rudaw, the Kurdistan Region has 11 advanced brickworks, with the capacity to produce some 860 million bricks annually, but only five of these plants are currently in operation.

Hilal Bricks, established in 2015, is one of the biggest producers of the material in the Middle East, with a capacity of 250 million bricks annually.

More here.

(Source: Rudaw)

By John Lee.

Manufacturers of red bricks are reportedly criticizing the Kurdistan Regional Government (KRG) for its failure to financially support the industry and capitalize on demand in the rest of Iraq.

According to information obtained by Rudaw, the Kurdistan Region has 11 advanced brickworks, with the capacity to produce some 860 million bricks annually, but only five of these plants are currently in operation.

Hilal Bricks, established in 2015, is one of the biggest producers of the material in the Middle East, with a capacity of 250 million bricks annually.

More here.

(Source: Rudaw)

By John Lee.

The Kurdistan Regional Government (KRG) has agreed that it will update and fully implement legislation on intellectual property, protecting the Kurdistan Region’s entrepreneurs, academics and businesses from infringement.

A legal committee will also be established to review new draft legislation for approval in this session of the Kurdistan Parliament.

(Source: KRG)

By Omar Sattar for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News

New pipeline in works to transport Iraqi oil to Turkey

Ankara and Baghdad are working toward building a new oil pipeline with the capacity to transport one million barrels per day from Iraq’s Kirkuk fields to the Turkish border.

“The Iraqi government is now examining tenders for the new oil pipeline between Iraqi and Turkey, after having finished with the engineering and technical studies,” Iraqi Ministry of Oil spokesperson Assem Jihad told Al-Monitor recently.

He added that construction will probably get underway in 2020.

Click here to read the full story.