Iraq offers to supply half of Nabucco’s gas

By Delphine Strauss in Ankara and Ed Crooks in London

Published: July 14 2009 03:00 | Last updated: July 14 2009 03:00

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Iraq has offered to supply enough gas to fill half the capacity of the proposed Nabucco pipeline, giving the project a boost even as heads of government met to sign a historic agreement approving the plan.

The offer from Nouri al-Maliki, Iraq’s prime minister, to supply 15bn cubic metres of gas a year by 2015 helps address the greatest obstacle to the 3,300km pipeline from eastern Turkey to Austria: the prospect of there not being enough gas to fill it.

José Manuel Barroso, pre-sident of the European Commission, said the signing of the Nabucco agreement in Ankara by the leaders of five countries on the pipeline’s route – Austria, Bulgaria, Hungary, Roman-ia and Turkey – could « open the door to a new era in the relationship between the European Union and Tur-key, and indeed beyond ».

Dick Lugar, the most senior Republican in the US senate, said the agreement was « a signal to the rest of the world that partner governments will not acquiesce to manipulation of energy supplies for political ends ».

Nabucco is intended to provide an alternative to Russian supplies, which have caused growing concern following the disruption caused by disputes be-tween Russia and Ukraine.

The hope is that the inter-governmental agreement will convince gas-producing countries that the project – scheduled to start in 2014 – is closer to becoming reality than rival European or Russian-sponsored schemes, and persuade them to commit the volumes needed for commercial viability.

The only supplier that will definitely be ready for the first phase of the project is Azerbaijan, but it is juggling Nabucco’s de-mands against those of Russia.

Richard Morningstar, US energy envoy, described Azeri gas as a « necessary condition » but not sufficient for the €8bn ($11bn, £7bn) Nabucco project.

Hopes of securing Azeri gas for Nabucco are expected to suffer today when Bulgaria signs up with the consortium building ITGI, a rival pipeline project seeking to take gas from Azerbaijan to the EU.

Bulgaria is set to sign a memorandum of understanding for a planned spur off ITGI that could bring 3bn-5bn cu m of gas per year from Greece.

If Iraq is able to achieve its goal of supplying an annual 15bn cu m, it will fill almost half the pipeline’s 31bn cu m capacity.

Oil companies are interested in investing in the country to develop its resources, including gas.

The Kurdistan region in the north of Iraq has also attracted a planned investment by a consortium of companies including OMV of Austria and Mol of Hungary, which are both members of the Nabucco group.

Nabucco executives say significant quantities of gas could be available from those Kurdish fields as soon as next year.

Recep Tayyip Erdogan, the Turkish prime minister, also reiterated his desire for Iran to be a supplier « when conditions allow ».

Andris Piebalgs, EU energy commissioner, said the EU’s focus now would be on encouraging Turkmenistan to participate. Stefan Judisch of Germany’s RWE, the energy group that is a member of the Nabucco consortium, said Turkmenistan would be able to supply an annual 10bcm in the pipeline’s first phase, but would first have to find a way through disputes over the Caspian Sea.

Gurbanguly Berdymukhammedov, president of Turkmenistan, said last week that participation in the project would help his country – which is locked in a dispute with Russia over gas supplies – to diversify its export routes.

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Iraqi Kurdistan awards oil fields to Gulf Keystone

MEED

Published: 22 July 2009 13:50 GMTAuthor: Perry Williams

The Kurdistan Regional Government (KRG) of northern Iraq has awarded UK-based Gulf Keystone two production-sharing agreements (PSAs) to explore the Sheikh Adi and Ber Bahr oil blocks in the Dihok Province.

Gulf Keystone says the blocks may hold a combined 1 billion barrels of oil.

The Sheikh Adi block is situated northeast of Dihok and covers an area of 180 square kilometres.

The company will operate the block as part of an initial three-year exploration programme which started in July 2009. It holds an 80 per cent interest, with the KRG owning 20 per cent.

The Ber Bahr block covers an area of 350 square kilometres and is north of Dihok.

Gulf Keystone has a 40 per cent interest in this block, with operator Turkey’s Genel Energy also holding a 40 per cent stake. The KRG holds the balance.

Gulf Keystone expects to start drilling on both fields in 2010.

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TURKISH EXPORTERS EYEING NEW MARKETS IN LATIN AMERICA, AFRICA

SAO PAULO/ANKARA, July 22 Asia Pulse – Latin America and Africa are new bright spots for Turkish exporters after a contraction in conventional markets due to global economic crisis.

Turkish exports fell to an annual volume of around US$100 billion this year from last year’s US$132 billion of exports.

Turkish exporters are now seeking new markets to overcome difficulties stemming from market contraction, especially in Europe.

For this purpose, Turkish businessmen led by State Minister for foreign trade Zafer Caglayan, travelled to Latin America last week on a tour covering Chile and Brazil.

Turkey is willing to sign a free trade deal with Mercosur zone which includes Brazil, Argentina, Paraguay and Uruguay, however, Turkish Exporters’ Assembly Chairman Mehmet Buyukeksi said talks on a possible deal had not been satisfactory for Turkey.

« There is a 3.5 per cent customs duty on imports from these countries due to customs union deal that Turkey signed. But we are burdened by the 30 per cent duty on Turkish exports to such countries, » Buyukeksi said.

Buyukeksi said Turkey could work together with Latin American countries on trade with Central Asia which is considered the new market for the world.

« They have the chance to reach Kazakhstan or Uzbekistan through Istanbul, » he said. « This advantage could reflect onto our trade. »

Buyukeksi also said that Turkish companies mostly sell automotive and spare parts, iron and steel, textiles and chemical materials to Latin America, especially to Brazil.

« We have to improve trade with Brazil. We aim to increase our bilateral trade volume in three years to US$5 billion from US$1.7 billion, » he said.

« Potentially, Africa is an easier and untouched market but Latin America is important too. But it is a much more difficult market for us due to trade balance which is disadvantageous for Turkey, » he said.

Dubai-based Emaar eyes new opportunities in Turkey

03.07.2009

Hurriyet Daily News – Emaar Turkey, a local unit of Dubai-based Emaar Properties PJSC, has long-term plans for Turkey, according to Ozan Balaban, CEO of the property firm. Emaar has so far sold 147 of the 174 houses it has built in the Buyukcekmece district of Istanbul and is now planning a new investment in Libadiye.

Emaar Turkey has USD 4 billion worth of plans for Turkey. The company entered the Turkish market in 2006 and has already sold the first phase of Tuscan Valley Houses, its first project in Turkey.

« We have long-term plans for Turkey. We are keeping an open mind with regard to new investment opportunities. We are not fostering a build-and-sell mentality. We are here to stay » said Ozan Balaban. « In the long term, we are planning to turn Emaar into a real estate investment trust and open it to the public » he added.

Gama Enerji Secures Nearly $1 Bln For Water Pipeline Proj-IHA

8 juillet 2009

ISTANBUL (Dow Jones)–

Turkish firm Gama Enerji AS said Wednesday it has secured around $1 billion to build a 325 kilometer water pipeline in Jordan, the Ihlas News Agency, or IHA, reports.

In a press statement the company said U.S. investment firm OPIC, the European Investment Bank and French investment firm Proparco will provide $445 million for the project, while Jordanian Water Ministry will provide $300 million.

It noted that it will provide $190 million from its own capital for the project.

Gama Enerji is a joint venture between Gama Holding and GE Energy Financial Services.

Gama Enerji Secures Nearly $1 Bln For Water Pipeline Proj-IHA

8 juillet 2009

ISTANBUL (Dow Jones)–

Turkish firm Gama Enerji AS said Wednesday it has secured around $1 billion to build a 325 kilometer water pipeline in Jordan, the Ihlas News Agency, or IHA, reports.

In a press statement the company said U.S. investment firm OPIC, the European Investment Bank and French investment firm Proparco will provide $445 million for the project, while Jordanian Water Ministry will provide $300 million.

It noted that it will provide $190 million from its own capital for the project.

Gama Enerji is a joint venture between Gama Holding and GE Energy Financial Services.

Iraq makes ambitious Nabucco offer

ANKARA, Turkey, July 14 (UPI) — Iraq can offer nearly 530 billion cubic feet of natural gas for the Nabucco pipeline by 2015 to help allay supply concerns, the Iraqi prime minister said.

Ankara hosted regional delegates Monday for the signing of an intergovernmental agreement on the $10.3 billion Nabucco gas pipeline to Europe.

Europe hopes the pipeline will bring diversity to a regional energy sector that relies heavily on Russia. The project faces a series of setbacks in terms of project financing and commitments to fill its expected capacity of 1.09 trillion cubic feet of natural gas, however.

Azerbaijan is the only country to express its readiness for Nabucco, though recent gas deals with Russian energy giant Gazprom may complicate Baku’s energy ties with Europe.

Project backers see the Monday agreement as a milestone for the 2,050-mile pipeline, noting the enthusiasm expressed at the ceremony will encourage more suppliers to come onboard.

Iraqi Prime Minister Nouri El Maliki, meanwhile, has offered to supply nearly half of the Nabucco gas requirements by 2015, the Financial Times reports.

Austria’s OMV and Hungary’s MOL, Nabucco partners, have expressed interest in exploring the resource potential in the Kurdish of Iraq, and consortium executives say those reserves may be available as early as 2010.

Meanwhile, Turkish Prime Minister Recep Tayyip Erdogan said Iran could play a role in Nabucco « when conditions allow. »

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Iraq makes ambitious Nabucco offer

ANKARA, Turkey, July 14 (UPI) — Iraq can offer nearly 530 billion cubic feet of natural gas for the Nabucco pipeline by 2015 to help allay supply concerns, the Iraqi prime minister said.

Ankara hosted regional delegates Monday for the signing of an intergovernmental agreement on the $10.3 billion Nabucco gas pipeline to Europe.

Europe hopes the pipeline will bring diversity to a regional energy sector that relies heavily on Russia. The project faces a series of setbacks in terms of project financing and commitments to fill its expected capacity of 1.09 trillion cubic feet of natural gas, however.

Azerbaijan is the only country to express its readiness for Nabucco, though recent gas deals with Russian energy giant Gazprom may complicate Baku’s energy ties with Europe.

Project backers see the Monday agreement as a milestone for the 2,050-mile pipeline, noting the enthusiasm expressed at the ceremony will encourage more suppliers to come onboard.

Iraqi Prime Minister Nouri El Maliki, meanwhile, has offered to supply nearly half of the Nabucco gas requirements by 2015, the Financial Times reports.

Austria’s OMV and Hungary’s MOL, Nabucco partners, have expressed interest in exploring the resource potential in the Kurdish of Iraq, and consortium executives say those reserves may be available as early as 2010.

Meanwhile, Turkish Prime Minister Recep Tayyip Erdogan said Iran could play a role in Nabucco « when conditions allow. »

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Foreign firms investing in Iraq

OAS_RICH(« VerticalBanner ») By Jim Michaels, USA TODAY WASHINGTON — European and Asian companies are beating their American rivals into Iraq now that security has improved the investment climate, Iraq and U.S. officials say. « It’s starting to turn … and the people who are getting in on the ground floor are not American, » said Paul Brinkley, the Pentagon official who is leading U.S. efforts to help Iraq rebuild its economy. « It’s ironic. » Foreign companies, including U.S. investors, have committed to deals worth about $500 million so far this year and Brinkley expects at least $1 billion in foreign investment by the end of the year. So far, Romanian consortium and a Lebanese company have signed revenue-sharing deals with Iraqi state-owned cement factories. Each group will invest about $150 million. China has also aggressively pursued the Iraqi market, selling machinery to the government and electronic products to consumers. Iraqi Foreign Minister Hoshiyar Zebari, in Washington on an official visit, said Monday that larger U.S. firms were waiting for more security before entering the market. Zebari noted that Turkish and Russian companies were already active in Iraq. « They take risks, » he told USA TODAY in an interview. « No pain, no gain. » Many of the companies active in Iraq now are from countries, including France, Russia and Turkey, that did not send combat troops to back the U.S.-led invasion. Some U.S. and Iraqi officials say American companies risk losing an early opportunity to establish long-term strategic ties with Iraq. « My question is, ‘Where are you guys in terms of investment, in terms of economic engagement?’  » said Naufel al-Hassan, Iraq’s commercial counselor in Washington. « Iraqis need your support. Why let someone else do that? » There are no reliable historic numbers, but the deals this year are among the first major investment opportunities outside U.S.-funded reconstruction projects and they signal new confidence in Iraq’s economy. The activity by non-U.S. companies is not a cause for concern, said Charles Reis, the U.S. counselor for economic transition in Iraq. « This is a normalization of Iraq’s relationship with the rest of the world, » he said. Large U.S. companies won the bulk of the $20 billion worth of reconstruction contracts funded by the military. Now, however, opportunities are riskier and require more local understanding. That has favored non-U.S. investors who have had prewar experience in Iraq, said Timothy Mills, president of the American Chamber of Commerce in Iraq. American companies may also be reluctant to invest in Iraq because the war has generated so much controversy at home, Brinkley said. The private investments that come from the USA are generally individual or institutional investors — not American corporations, Brinkley said. U.S. investors, for example, are part of a $120 million deal to build a hotel in the heavily fortified Green Zone, where U.S. and Iraqi government offices are located. Americans lead other nations in the number of exports to Iraq, but other nations have ramped up trade. China doubled the number of exports to Iraq this year. China is now Iraq’s third-largest trade partner behind the USA and Turkey, according to Global Trade Information Services, a firm that tracks trade statistics.

Find this article at: USA Today

Foreign firms investing in Iraq

OAS_RICH(« VerticalBanner ») By Jim Michaels, USA TODAY WASHINGTON — European and Asian companies are beating their American rivals into Iraq now that security has improved the investment climate, Iraq and U.S. officials say. « It’s starting to turn … and the people who are getting in on the ground floor are not American, » said Paul Brinkley, the Pentagon official who is leading U.S. efforts to help Iraq rebuild its economy. « It’s ironic. » Foreign companies, including U.S. investors, have committed to deals worth about $500 million so far this year and Brinkley expects at least $1 billion in foreign investment by the end of the year. So far, Romanian consortium and a Lebanese company have signed revenue-sharing deals with Iraqi state-owned cement factories. Each group will invest about $150 million. China has also aggressively pursued the Iraqi market, selling machinery to the government and electronic products to consumers. Iraqi Foreign Minister Hoshiyar Zebari, in Washington on an official visit, said Monday that larger U.S. firms were waiting for more security before entering the market. Zebari noted that Turkish and Russian companies were already active in Iraq. « They take risks, » he told USA TODAY in an interview. « No pain, no gain. » Many of the companies active in Iraq now are from countries, including France, Russia and Turkey, that did not send combat troops to back the U.S.-led invasion. Some U.S. and Iraqi officials say American companies risk losing an early opportunity to establish long-term strategic ties with Iraq. « My question is, ‘Where are you guys in terms of investment, in terms of economic engagement?’  » said Naufel al-Hassan, Iraq’s commercial counselor in Washington. « Iraqis need your support. Why let someone else do that? » There are no reliable historic numbers, but the deals this year are among the first major investment opportunities outside U.S.-funded reconstruction projects and they signal new confidence in Iraq’s economy. The activity by non-U.S. companies is not a cause for concern, said Charles Reis, the U.S. counselor for economic transition in Iraq. « This is a normalization of Iraq’s relationship with the rest of the world, » he said. Large U.S. companies won the bulk of the $20 billion worth of reconstruction contracts funded by the military. Now, however, opportunities are riskier and require more local understanding. That has favored non-U.S. investors who have had prewar experience in Iraq, said Timothy Mills, president of the American Chamber of Commerce in Iraq. American companies may also be reluctant to invest in Iraq because the war has generated so much controversy at home, Brinkley said. The private investments that come from the USA are generally individual or institutional investors — not American corporations, Brinkley said. U.S. investors, for example, are part of a $120 million deal to build a hotel in the heavily fortified Green Zone, where U.S. and Iraqi government offices are located. Americans lead other nations in the number of exports to Iraq, but other nations have ramped up trade. China doubled the number of exports to Iraq this year. China is now Iraq’s third-largest trade partner behind the USA and Turkey, according to Global Trade Information Services, a firm that tracks trade statistics.

Find this article at: USA Today