United states


GE, Siemens Electricity Deals “in Doubt”

By John Lee.

The Financial Times has reported that the recently-agreed electricity deals with Siemens and General Electric (GE) are not certain to be approved.

It quotes Minister for Electricity Luay Al-Khatteeb (pictured) as saying:

“I don’t have financial allocations or the processes available at hand, it doesn’t allow me to cherry-pick the right consultancies to deal with these multibillion-dollar deals. The bureaucracy that I inherited is . . . illogical. … certainly it’s going to be quite challenging to blindly accept such proposals.”

Al-Khatteeb took his post after the non-binding deals, or “principles of co-operation” were agreed with his predecessor, Qasim Al Fahdawi.

He said he that “volunteer experts” are helping “read in between the lines of these sophisticated legal contractual documents.

Last month, Lisa Davis, CEO of the Siemens Gas and Power Operating Company, and member of the corporation’s managing board, told The National last week that “discussions are ongoing.

More here.

(Source: Financial Times)

US Firm Wins $29m VSAT Contract in Iraq

By John Lee.

Florida-based NIC4 Inc., a division of Network Innovations Group, has been awarded a $28,812,143 firm-fixed-price Foreign Military Sales (Iraq) contract for capabilities to operate, sustain, support and expand Iraq’s Very Small Aperture Terminal (VSAT) network.

Bids were solicited via the internet with five received. Work locations and funding will be determined with each order, with an estimated completion date of Jan. 31, 2024.

NIC4 will provide knowledge-based support services for requirements with VSAT related needs, including satellite-bandwidth services for fixed and mobile users, OCONUS backup VSAT hub services, internet access over the VSAT network, satellite transition services and equipment, public internet protocol (IP) addresses, and annual maintenance and sustainment support.

In a statement, the company said:

“Enabling the Iraqi government to utilize satellite connectivity as part of the government’s rebuilding is significant in coordinating military and strategic operations.  Running critical communications over satellite networks reduces the Iraqi government’s dependency on vulnerable terrestrial infrastructure and ensures military and strategic services are operational at all times. “

Chad Gatlin, CEO of NIC4, added:

“NIC4’s unique contribution to the Iraq MOD is our experienced team members and network sustainment expertise. The competition for this U.S. Army FMS case to the satellite integrator industry was immense, and we are pleased to be chosen as the partner of choice to deliver our exceptional services to the Program.”

(Sources: US Dept of Defense, NIC4)

US Firm Wins $29m VSAT Contract in Iraq

By John Lee.

Florida-based NIC4 Inc., a division of Network Innovations Group, has been awarded a $28,812,143 firm-fixed-price Foreign Military Sales (Iraq) contract for capabilities to operate, sustain, support and expand Iraq’s Very Small Aperture Terminal (VSAT) network.

Bids were solicited via the internet with five received. Work locations and funding will be determined with each order, with an estimated completion date of Jan. 31, 2024.

NIC4 will provide knowledge-based support services for requirements with VSAT related needs, including satellite-bandwidth services for fixed and mobile users, OCONUS backup VSAT hub services, internet access over the VSAT network, satellite transition services and equipment, public internet protocol (IP) addresses, and annual maintenance and sustainment support.

In a statement, the company said:

“Enabling the Iraqi government to utilize satellite connectivity as part of the government’s rebuilding is significant in coordinating military and strategic operations.  Running critical communications over satellite networks reduces the Iraqi government’s dependency on vulnerable terrestrial infrastructure and ensures military and strategic services are operational at all times. “

Chad Gatlin, CEO of NIC4, added:

“NIC4’s unique contribution to the Iraq MOD is our experienced team members and network sustainment expertise. The competition for this U.S. Army FMS case to the satellite integrator industry was immense, and we are pleased to be chosen as the partner of choice to deliver our exceptional services to the Program.”

(Sources: US Dept of Defense, NIC4)

Sallyport wins $375m Iraq Contract

US-based Sallyport Global Holdings has been awarded a not-to-exceed $375,000,000 cost-plus-fixed-fee undefinitized contract action to provide base operations support, base life support, and security services in the support of the Iraq F-16 program.

Work will be performed on Balad Air Base, Iraq, and is expected to be completed by Jan. 30, 2020.

This contract was the result of a sole-source acquisition and involves foreign military sales to Iraq.

Foreign military financing loan repayable funds in the amount of $183,750,000 are being obligated at the time of the award.

Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Dayton, Ohio, is the contracting activity (FA8630-19-C-5004).

(Source: US Dept of Defense)

$1bn UK Financing for Iraqi Electricity

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)

GE Power Substation Inaugurated in Baghdad

Iraqi Ministry of Electricity and GE Power celebrate inauguration of Baghdad West North Substation

Underlining their joint commitment to support the development of Iraq’s power infrastructure, the Iraqi Ministry of Electricity (MoE) and GE Power’s Grid Solutions business (NYSE: GE) celebrated the energization of the Baghdad West North substation.

Located about 35 kilometers away from the city, the substation can help connect up to 1,000 megawatts (MW) to the national grid, decreasing bottlenecks and increasing the hours of available power. The event was attended by H.E. the Prime Minister of Iraq, Adil Abdul-Mahdi, senior officials of the Iraqi Ministry of Electricity including H.E. Minister Luay Al-Khatteeb, various government entities, GE and other organizations.

H.E. Luay Al-Khatteeb, Minister of Electricity, said:

“The Iraqi Ministry of Electricity is seeking to provide reliable, uninterrupted power across the country. The opening of the Baghdad West North substation reflects our efforts to achieve this goal. The substation will play a critical role in helping to deliver much-needed power, especially in the upcoming summer months.”

GE’s scope of work for the turnkey 400/132/11 kilovolt (kV) gas insulated substation project included the design, equipment manufacturing, site delivery, erection, testing & commissioning, and training of personnel. The project’s construction, erection, commissioning, and testing was completed by GE Iraqi engineers in collaboration with local Iraqi subcontractors.

The facility can feed 132 kV substations at Kadhmiya, Al Shualla and Al Sabbeaat, as well as another five substations that are planned to be developed in the future and helps connect power from the Basmaya Power Plant, Taji Gas Power Plant and mobile gas power plants to the national grid.

The energization of the substation reflects our commitment to support Iraq in building a robust electricity infrastructure,” said Mohammed Mohaisen, President & CEO of GE Power’s Grid Solutions business in the Middle East, North Africa and Turkey.

Our turnkey approach to project development helps bring best-in-class technology and expertise across every touch-point of the project. As a partner in the country’s progress, we will continue to deliver on our promise to the Iraqi people of supporting the government to build a stable electricity network that meets their needs.

Following the agreement for the Baghdad West North substation, GE also signed a US$400 million agreement to develop and rehabilitate 14 additional electric substations, and to supply critical equipment such as transformers, circuit breakers and other related equipment.

The substations will connect power plants spread across the governorates of Ninawa, Salah Al Din, Al Anbar, Karbala, Baghdad, Qadisiyyah and Basra to the national grid. Several of the locations, in conflict-affected areas, have an immediate need of reliable power infrastructure.

GE employs up to 300 people in Iraq and has three offices in the country – in Baghdad, Basra and Erbil. Today, GE and its partner CFMI power more than 90 percent of the aircrafts operated by Iraqi Airways, the company’s technologies contribute up to 55 percent of the current electricity production in Iraq and nearly 4,000 GE Healthcare products are deployed in hospitals and clinics across the country.

(Source: GE)

Iran “the only Victor” in Iraq War

By John Lee.

The US Army has published a report on its 2003 invasion of Iraq, and subsequent developments until the withdrawal of troops, claiming that Iran was the only real winner of the operation.

The U.S. Army in the Iraq War” was released Thursday in two volumes entitled “Invasion and Insurgency—Civil War, 2003-2006” and “Surge and Withdrawal, 2007-2011.

The two volumes comprise nearly 1,500 pages.

According to the conclusions in the second report:

In terms of geostrategic consequences, the war produced profound consequences. At the time of this project’s completion in 2018, an emboldened and expansionist Iran appears to be the only victor.

“Iraq, the traditional regional counterbalance for Iran, is at best emasculated, and at worst has key elements of its government acting as proxies for Iranian interests.

More here – Volume 1, and Volume 2

(Source: Strategic Studies Institute of the US Army)

Genel shares Rise on Chevron Iraq Partnership

Shares in Genel Energy were trading up 6 percent on Monday afternoon after the company announced that it has reached agreement to acquire stakes in the Chevron-operated Sarta and Qara Dagh blocks (pictured), in the Kurdistan Region of Iraq.

Genel will acquire 30% equity in the Sarta licence by paying a 50% share of ongoing field development costs until a specific production target is reached, together with a success fee payable on achievement of a production milestone. Chevron will retain a 50% interest in the Sarta licence and the Kurdistan Regional Government will hold the remaining 20%. Genel’s estimate of its total spend up to end-2020 is c.$60 million.

Drilling began on the first appraisal well, Sarta-3, in Q4 2017. The well was successfully completed and tested during the second quarter of 2018. Both that and the Sarta-2 well individually tested at rates of c.7,500 bopd. The first phase of development is expected to see these wells placed on production.

Genel will acquire 40% equity of the Qara Dagh appraisal licence and become the operator through a carry arrangement. Chevron will retain 40% of the equity, with the KRG holding the remaining 20%. The Qara Dagh-2 well is set to be drilled in 2020. The Qara Dagh-1 well, completed in 2011, tested oil in two zones from the Shiranish formation.

Closing is subject to approval from the Kurdistan Regional Government.

Murat Özgül, Chief Executive of Genel, said:

“We are delighted to have been chosen as a partner to Chevron. The agreement provides access to a phased development opportunity with significant growth potential at Sarta, and an exciting appraisal opportunity at Qara Dagh. The additions to our portfolio are an important step in our diversification strategy, offering a further opportunity for near-term production and cash-generation.”

(Sources: Genel Energy, Yahoo!)

US Trying to get More out of Relationship with Iraq

From The Economist.

America is trying to get more out of its relationship with Iraq

US President Donald Trump thinks America is being ripped off. “We have spent $7trn—trillion with a T—$7trn in the Middle East,” he told a crowd last year, exaggerating slightly. “You know what we have for it? Nothing. Nothing.”

To right this perceived wrong, Mr Trump has long favoured seizing Iraq’s oil. But after he hinted at the idea with the Iraqi prime minister (who demurred), his aides admonished him. “We can’t do this and you shouldn’t talk about it,” said H.R. McMaster, the national security adviser at the time, according to reports. Still, Mr Trump may be getting what he wants from Iraq in other ways.

When America reimposed sanctions on Iran last year it gave some countries extra time to stop buying Iranian oil before they would lose access to the American market. Most were given 90-day exemptions. In November Iraq, which shares a long border with Iran, was given half that time to cut off electricity and gas imports.

As it negotiated for extensions, American companies made a push for Iraqi contracts. In December, Rick Perry, the energy secretary, led America’s largest trade delegation to Iraq in over a decade. “It was a quid pro quo,” says an oilman. “You give us priority and we’ll give you an exemption.”

Read the full article here (subscription needed).