By John Lee.

Turkey will reportedly provide around $5 billion in loans for the reconstruction of Iraq.

According to Anadolu Agency, Foreign Minister Mevlut Cavusoglu (pictured) told a meeting in Istanbul on Sunday:

“We will provide $5 billion credit … We have already begun coordination of these works for the reconstruction of Iraq,”

(Source: Anadolu Agency)

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for January of 113,111,437 barrels, giving an average for the month of 3.649 million barrels per day (bpd), down from the 3.726 bpd exported in December.

These exports from the oilfields in central and southern Iraq amounted to 110,245,281 barrels, while exports from Kirkuk amounted to 2,315,381 barrels, and from Qayara 550,775 barrels.

Revenues for the month were $6.353 billion at an average price of $56.164 per barrel.

December export figures can be found here.

(Source: Ministry of Oil)

UK Export Finance (UKEF) has announced it will support UK firms with US $1.02 billion to build two new power stations in Iraq and support the restoration of a number of electricity substations in the country.

  • US $1.02 billion in support for UK firms to build two new power stations
  • Agreement will help build and refurbish numerous electricity substations across Iraq
  • Announcement reaffirms the UK’s commitment to Iraq’s continued economic development

US $620 million financing will go to support two contracts between GE and Iraq’s Ministry of Electricity to build two power stations in Samawa and Dhi Qar, located northwest of Basra, in southern Iraq.

UKEF had already provided initial support for the project; this additional financing supports the main construction phase of the project involving further procurement from UK suppliers through GE sub-contractor ENKA UK.

UKEF will also provide US $400 million to support a project by GE’s Grid Solutions, business to develop 14 sub-stations across Iraq. GE will build new substations on a turnkey basis and supply equipment such as transformers and other parts to rehabilitate existing substations, helping to bring power to areas with significant power shortages from the north to the south of the country.

This announcement follows the agreement between the governments of the UK and Iraq signed in March 2017, which re-affirmed the UK’s commitment to Iraq’s continued economic development.

This project will play a key role in bolstering the capacity of the Iraqi electricity grid, the two new power stations, located in the Basra region, will give citizens the access they need to critical infrastructure.

Baroness Fairhead (pictured), Minister of State for Trade and Export Promotion, said:

The scale of these contracts illustrates the demand for British expertise in the utilities sector and the level of support the government can give to British businesses looking to make the most of similar opportunities across the globe.

“The UK Government continues to be committed to Iraq’s economic development and I am delighted that UK Export Finance is supporting projects that will have such a direct impact on improving the country’s critical infrastructure and the lives of the Iraqi people.

Guto Davies, GE Energy Financial Services’ Global Capital Advisory Managing Director, said:

“The announcement of these new facilities further strengthens GE’s collaborations in Iraq to support the country’s power infrastructure and meet the growing need for electricity. GE recognises the importance of UKEF in supporting critical infrastructure projects in Iraq and the UK supply-chain. We are delighted they continue to fund major projects in the country’s power energy sector.”

Yavuz Akturk, Director at ENKA UK, said:

Power shortages continue to halt Iraq’s reconstruction and addressing this scarcity is crucial to the country’s future. As ENKA, we have taken a significant role in rebuilding the country’s infrastructure, and with these projects we will help the people in the country which are in urgent need for electricity.

“It would not be possible without the continuous support of the UK Government and the highly dedicated UKEF team; and we as ENKA, are grateful for the high-level support for these projects which will also provide great opportunities for the UK exporters.”

(Source: UK Govt)

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

Turkey has launched an effort to help resolve the water problem of neighboring Iraq amid bilateral tensions over decreasing flow rates in the Tigris and Euphrates rivers, whose waters the two countries share.

President Recep Tayyip Erdogan has appointed a special envoy to Iraq. Veysel Eroglu is a former forestry and water affairs minister who has been in Erdogan’s close entourage since the 1990s, when the president was mayor of Istanbul. Much in the style of a “water czar,” Eroglu has formed a special team of experts from various ministries and began work on an action plan for better water management in Iraq.

Though Baghdad’s initial reaction has been positive, Turkey’s prospective road map might fail to satisfy Iraqi expectations, given the two sides’ diverging views on the causes of water shortages and how the problem should be resolved.

Click here to read the full story.

By John Lee.

Iraq’s Ministry of Oil has announced final oil exports for December of 115,517,974 barrels, giving an average for the month of 3.726 million barrels per day (bpd), a increase from the 3.377 bpd exported in November.

These exports from the oilfields in central and southern Iraq amounted to 112,450,367 barrels, while exports by the North Oil Company amounted to 3,067,607 barrels.

Revenues for the month were $6.234 billion at an average price of $53.962 per barrel.

The oil was loaded by 36 international companies.

November export figures can be found here.

(Source: Ministry of Oil)

By John Lee.

Turkey’s ban on flights to Sulaymaniyah, in Iraqi Kurdistan, will reportedly be lifted.

The country’s Transport Minister, Cahit Turhann told Anadolu Agency:

“Turkish Airlines will resume its flights from Istanbul to Sulaymaniyah [on Friday], seven flights a week.”

According to Rudaw, Ankara has delayed the resumption of flights until Saturday due to technical issues.

The ban was imposed in September 2017 following the independence referendum in Iraqi Kurdistan.

(Sources: Anadolu Agency, Rudaw)

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

For about 10 years, the Kurdistan Democratic Party (KDP), which controls Erbil and Dahuk provinces in Iraq, has enjoyed close working relations with the Turkish government on trade, energy and security. The main architect of this opening has been the KDP’s Nechirvan Barzani.

The KDP, unlike other Iraqi Kurdish groups, has also acted as a counterweight since the 1990s to the formidable Kurdistan Workers Party (PKK) guerrilla movement — Turkish President Recep Tayyip Erdogan’s archenemy — by allowing Turkey to establish a number of military bases to monitor PKK activities.

However, Barzani, prime minister of the Kurdistan Regional Government (KRG) since 2012, was not nominated by the KDP to form the next KRG Cabinet. This is causing Erdogan to worry about the fate of a 50-year secretive energy deal made with Barzani in 2014.

Click here to read the full story.

By John Lee.

Turkey has reportedly appointed a special envoy to Iraq to resolve the water sharing issues between the two countries.

According to Daily Sabah, former Forestry and Water Affairs Minister Veysel Eroğlu (pictured), who will take up the post, pointed to the “inefficient” use of water resources in Iraq, saying “Turkey will share its experience and know-how in the efficient management of water with the Iraqis.

He added that Turkey will try to ensure an equitable share of water from the Tigris and the Euphrates rivers.

More here.

(Source: Daily Sabah)

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for December of 115,517,974 barrels, giving an average for the month of 3.726 million barrels per day (bpd), a increase from the 3.377 bpd exported in November.

These exports from the oilfields in central and southern Iraq amounted to 112,450,367 barrels, while exports by the North Oil Company amounted to 3,067,607 barrels.

Revenues for the month were $6.100 billion at an average price of $52.803 per barrel.

November export figures can be found here.

(Source: Ministry of Oil)