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Japan donates $3.4m for Children in Iraq

The government of Japan has donated US$3.4 million to provide lifesaving health and nutrition assistance for vulnerable children in conflict affected areas in Iraq.

Approximately 4.2 million people have returned to their homes after fleeing the violence that erupted in 2014, however many find their homes and communities have been reduced to rubbles and essential health services overstretched.

“Across all conflict affected governorates, hospitals have been destroyed and those that are functioning are overwhelmed and struggling to meet health and nutrition needs, placing the lives of the most vulnerable children at risk of deadly diseases, including polio and measles,” said Peter Hawkins, UNICEF Representative to Iraq.

“Japan has recently decided on a new assistance package for Iraq amounting to 63 million US dollars, including this project as contribution in health and nutrition sectors. With this package, the total amount of Japan’s assistance to the people affected by the crisis in Iraq reaches 500 million US Dollars,” said H.E. Mr. Naofumi Hashimoto, Ambassador of Japan to the Republic of Iraq said.

UNICEF is grateful to the Government of Japan in their unwavering support to vulnerable children and families in Iraq. Since 2015 UNICEF Iraq has partnered with Government of Japan to support the needs of children caught in cycles of violence.

The latest funding of US$.3.4 million will compliment Japan and UNICEF’s investment for Iraqi children by building the capacity of health workers, strengthening health systems in conflict affected governorates as well as providing immunization and nutrition services to nearly 1 million children and breastfeeding mothers in areas of returns as well as in the camps for displaced people.

(Source: UN)

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Iraq Oil Exports Down Slightly in February

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for February of 101,387,615 barrels, giving an average for the month of 3.621 million barrels per day (bpd), down from the 3.649 bpd exported in January.

These exports from the oilfields in central and southern Iraq amounted to 99,120,006 barrels, while exports from Kirkuk amounted to 1,753,373 barrels, and from Qayara 514,236 barrels.

Revenues for the month were $6.168 billion at an average price of $60.834 per barrel.

January export figures can be found here.

(Source: Ministry of Oil)

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Iran’s President to Visit Iraq in March

Iranian President Hassan Rouhani will travel to Iraq on March 11 for an official visit.

Heading a high-ranking delegation, the Iranian president will be visiting the Arab country at the official invitation of Baghdad.

It will be Rouhani’s first official visit to Iraq during his tenure.

On Monday, Iranian Deputy Foreign Minister Abbas Araqchi met with Prime Minister of Iraq Adil Abdul-Mahdi in Baghdad to make arrangements for Rouhani’s forthcoming trip.

The Iranian president’s visit would come against the backdrop of Tehran’s efforts to boost its foreign trade in the US sanctions era.

Iraq’s foreign minister said recently that his country is “not obliged” to abide by sanctions imposed by the US against Iran and would be pursuing options to continue bilateral trade.

President of Iraq Barham Salih paid a visit to Tehran in November 2018 with a ranking delegation for a series of political and economic talks.

Speaking at a joint press conference with his Iraqi counterpart at that time, Rouhani said the value of trade and economic interaction between Tehran and Baghdad stood at around $12 billion, adding that the two neighbors have the potential for a $20-billion trade target.

Earlier this month, governors of the central banks of Iran and Iraq signed an agreement to develop a payment mechanism aimed at facilitating banking ties between the two neighboring countries.

According to governor of the Central Bank of Iran Abdolnaser Hemmati, Iran is going to open euro and dinar-based accounts to process transactions for trade in oil and gas.

Describing Iraq as Iran’s major partner, Hemmati said the two countries have agreed to make the banking ties much stronger.

He also stated that Iraqi companies can reciprocally open accounts in Iranian banks and conduct transactions in dinar.

In December 2018, Chairman of Iran-Iraq Chamber of Commerce Yahya Ale-Eshaq said the central banks of Iran and Iraq were finalizing negotiations to begin trade in their own currencies.

Iraq’s Foreign Minister Mohamed Ali Alhakim has made it clear that his country cannot cut off trade ties with Iran under the US sanctions.

(Source: Tasnim, under Creative Commons licence)

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Genel Energy completes Acquisition of Chevron Fields

By John Lee.

Genel Energy has announced that approval has been given by the Kurdistan Regional Government (KRG) regarding the acquisition of stakes from Chevron in the Sarta and Qara Dagh (pictured) blocks, in the Kurdistan Region of Iraq.

According to a statement from the company, the acquisitions have now closed and Genel therefore has 30% equity in the Sarta PSC, with Chevron holding 50% and the KRG the remaining 20%. Final investment decision relating to Sarta phase 1A development has now been taken.

Phase 1A begins with two wells, recompleting the Sarta-2 well and placing the Sarta-3 well on production, both of which flowed approximately 7,500 bopd on test, and the construction of a central processing facility with a 20,000 bopd capacity. Another well is expected to follow within twelve months of first oil, and further production capacity will be added as the field is developed and production ramps up. First oil is expected in 2020, with a total cost to Genel estimated at $60 million to the end of 2020.

Genel has booked an initial 10 MMbbls of net 2P reserves relating solely to this preliminary phase of the project. Unrisked gross mid case resources relating to the Mus-Adaiyah reservoir only are estimated by Genel at c.150 MMbbls, with overall unrisked gross P50 resources currently estimated by the Company at c.500 MMbbls.

Genel now holds 40% equity in the Qara Dagh PSC and is the operator, with Chevron holding 40% and the KRG the remaining 20%. Work is underway on assessing the optimal location for the Qara Dagh-2 well, which is set to be drilled in 2020. Unrisked gross mean resources at Qara Dagh are currently estimated by Genel at c.200 MMbbls.

Shares in Genel Energy have risen 9 percent over the past 24 hours.

(Sources: Genel Energy, Yahoo!)

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Chinese Company “wins Contract” to build NGL Plant

By John Lee.

A Chinese company has reportedly won a contract to build a natural gas liquids (NGL) plant in Basra.

According to Xinhua, China’s Petroleum Engineering and Construction Corporation (CPECC) signed the contract on Wednesday with Iraq’s Basra Gas Company (BGC).

As a result of the new plant, BGC will increase its gas production capacity by 40 percent.

The Basra NGL facility will be built in Ar-Ratawi area in west of Basra and is scheduled to complete at the end of 2020.

CPECC is a subsidiary of the China National Petroleum Corporation (CNPC),

(Source: Xinhua)

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Deloitte Report on Kurdistan Oil and Gas

Deloitte report on Oil and Gas review in the Iraqi Kurdistan Region – Q3 of 2018

On Wednesday, the KRG Regional Council for Oil and Gas Affairs has published new verified data on the Kurdistan Region’s oil exports, consumption and revenues, covering the period from 1 July 2018 to 30 September 2018, after a review of the sector by the international “Big 4” audit and consulting firm, Deloitte.

The Regional Council for Oil and Gas Affairs acknowledges the positive feedback received from stakeholders, including the international community, and reiterates its commitment to the people of Kurdistan that the two international audit firms, Deloitte and Ernst & Young, will continue to independently review the oil and gas sector, inclusive of all the streams.

Deloitte’s report for the third quarter of 2018 is accessible through this link (PDF), in Kurdish, Arabic and English.

Frequently asked questions handbook (PDF) in Kurdish, Arabic and English to help readers better understand different sections of the report.

(Source: KRG)

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Oil Ministry Finalises Export Figures for January

By John Lee.

Iraq’s Ministry of Oil has announced final oil exports for January of 113,111,429 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 2,315,389 barrels, and from Qayara 550,759 barrels.

Revenues for the month were $6.367 billion at an average price of $56.287 per barrel.

December export figures can be found here.

(Source: Ministry of Oil)

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Riding the Oil Markets, Iraq’s Economy in Transition

The Iraq Energy Institute (IEI) has issued its 2018 Annual Report, entitled “Riding the Oil Markets, Iraq’s Economy in Transition“.

In its summary, the IEI says:

“Iraq’s fortunes are once again highly dependent upon oil prices following a period where the government succeeded in stabilising expenditures, on the basis of IMF conditionality.

“This period was of course accompanied by the 2014-2017 war against the self-declared “Islamic State,” when Iraq was struggling through an existential conflict. During this difficult time, Iraq’s fundamental stability, on virtually every metric, was supported by the success of its energy sector.

“On that basis, 2018 carried good news for Iraq, not only due to rising oil prices. This report outlines some of the areas where oil and gas have truly contributed to energizing Iraq’s economy, looking at increasing gas utilization in southern Iraq, which now carries the real potential to alleviate Iraq’s electricity crisis.

“We examine growing cooperation between the Federal Government and the Kurdish Region of Iraq in the energy sector, which is increasingly based on a firmer legal footing with the passing of the 2019 budget law, which could in theory usher in a new era of Baghdad-Erbil relations.“

Please click here to download the full report.

(Source: IEI)

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Iran questions Iraq’s Promise to Import Oil

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

Iran questions Iraq’s promise to import oil despite sanctions

Iran and Iraq have quite different views of their relationship status, with Tehran claiming it’s been jilted and Baghdad declaring it’s being faithful.

Iranian Minister of Petroleum Bijan Zangeneh (pictured) surprised Iraqi officials Feb. 7 when he very publicly expressed dissatisfaction with Iraq “reversing some oil agreements, and refusing to invest in the border oil fields and to pay Iran its [$2 billion in] debts.”

He indicated that “Baghdad’s commitment to the US sanctions has prompted [Iraq] to revoke minor agreements, such as the Kirkuk deal, under which we traded 11,000 barrels of oil a day.”

Iraq ended that deal in November under US pressure. The United States has imposed sanctions on Tehran and countries that defy those sanctions by continuing to do business with Iran.

Zangeneh’s remarks contradict the outcome of his meeting in Baghdad with Iraqi Oil Minister Thamir Ghadhban last month, when they agreed that Iraq would import gas from Iran and develop some border fields.

Click here to read the full story.

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EU announces additional EUR 50m for Iraq

The EU has announced an additional €30 million in humanitarian assistance. Another €20 million in development funding will contribute to the reconstruction of the country’s cultural heritage, as well as the creation of jobs and opportunities for vulnerable youth.

The announcement was made by Commissioner for Humanitarian Aid and Crisis Management Christos Stylianides (pictured), on the occasion of his sixth visit to Iraq today.

Commissioner Stylianides said:

“Each time I visit Iraq, I see the hope of its people despite the challenging circumstances. At this critical moment for the country, our new funding reaffirms the EU’s commitment to stand in solidarity with all Iraqis and will help the most vulnerable.”

Commissioner for International Cooperation and Development Neven Mimica added:

“The EU is committed to the reconstruction of Iraq. With today’s new support, we will help to restore the rich cultural heritage of Mosul and Basrah, and at the same time create much needed jobs and opportunities.”

Whilst in Iraq, Commissioner Stylianides, alongside Belgian Deputy Prime Minister Alexander De Croo, visited Mosul, where schools and hospitals are being supported by EU funding to help the most vulnerable get access to essential services. In Erbil, the Commissioner visited camps hosting thousands displaced by conflict. In Baghdad, the Commissioner held meetings with the Iraqi authorities.

Humanitarian assistance: The new EU humanitarian assistance worth €30 million will include protection, emergency healthcare, basic shelter, food, safe water, sanitation and hygiene to those in the greatest need throughout the country. These include Iraqis who remain displaced and Syrian refugees in Iraq. It will provide mental health support, increasing services for survivors of sexual violence, and ensuring physical therapy and rehabilitation to war-wounded. Furthermore, the EU will support the resumption of basic public services including health, education, and water supply in war-affected areas, such as Mosul, western Anbar and Hawija.

Development cooperation: The €20 million development cooperation will provide tailored technical and vocation training opportunities for youth in the construction sector, to help to recover the historic urban landscape of Mosul and Basrah. In addition, it will provide small grants to Small and Medium Enterprises and associations, with a focus on the revival of socio-economic and cultural activities. This funding, to be signed on 21 February, is part of the flagship initiative ‘Revive the Spirit of Mosul’ run by UNESCO, and designed to foster social cohesion and promote peace. With the full support of the Government of Iraq, the initiative will focus the restoration and rehabilitation of cultural heritage, as well as the revival of educational and cultural institutions. This measure is part of the EU’s pledge at the Iraq Reconstruction Conference held in Kuwait in February 2018.

Today’s funding announcement brings total EU humanitarian assistance to Iraq to €420 million and development cooperation to €309 million since the beginning of the crisis in 2015.

(Source: EU)