Archive for the ‘pipeline’ Category

Iraq earmarks $15 billion for reconstruction

November 1, 2008

Iraq has earmarked some $15 billion — nearly 25 percent of its 2009 draft budget — to help rebuild the country’s crumbling infrastructure, energy and oil facilities, the finance minister said Saturday.

But Bayan Jabr stressed those funds fall far short of the hundreds of billions of dollars Iraq needs to put its shattered economy back on its feet and appealed to foreign investors to help bridge the gap.

By BUSHRA JUHI, Associated Press Writer

Speaking at a U.S-Iraqi investment conference in Baghdad, Jabr said a government study determined Iraq needs some $400 billion to upgrade its existing infrastructure and build new facilities.

An oil worker walks past an oil field in Rumaila, southern Iraq. ... 
An oil worker walks past an oil field in Rumaila, southern Iraq. Iraq said the falling oil price has forced Baghdad to cut its forthcoming 2009 budget to $67 billion. Iraq has the world’s third largest oil reserves but needs funds to develop its dilapidated infrastructure.(AFP/File/Essam al-Sudani)

“That is why we have to resort to investment in Iraq … in many sectors including electricity, oil, oil byproducts, refineries, housing, infrastructure and banks,” he said.

Jabr said Iraq’s 30 private banks are still grappling with a capital shortage, despite the government’s increased credit support.

“That is why we think there is a great chance for banks in the U.S., Europe and the neighboring countries to start joint ventures with our banks and to enter the Iraqi market,” he said. “In this way, we can give more chance to credits and to other fields.”

He said the country’s “primitive” insurance market presents a similar opportunity for foreign companies.

Iraq’s economy has recovered slowly since the 2003 U.S.-led war, and the state budget has received a boost from high oil world prices this year.

But Planning Minister Ali Baban warned that Iraq, which is dependent on oil revenues for more than 90 percent of its national capital budget, must wean itself off its oil dependence.

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Russia, China sign landmark oil pipeline deal

October 28, 2008

Russia and China on Tuesday signed a long-awaited deal to build an oil pipeline from Siberia to China after talks between Prime Minister Wen Jiabao and Russian counterpart Vladimir Putin.

The leaders watched as Chinese state energy major CNPC and Russian state pipeline monopoly Transneft signed the deal to build the pipeline from the Siberian town of Skovorodino to the Chinese border.

The pipeline agreed on Tuesday would have a capacity of 15 million tons of oil per year and would be a branch of the main East Siberia-Pacific Ocean trunk pipeline, which is still under construction, officials said.

“We should deepen cooperation in the energy sphere. Long-term cooperation will help economic development and stability on world markets,” Wen said at the opening of a Russia-China business conference with Putin in Moscow.

Even after lengthy negotiations on energy ties between the two neighbours, Russia is still only the fifth-largest exporter of crude oil to energy-hungry China, despite being the world’s number two producer after Saudi Arabia.

Amid lower energy prices, analysts say China is now seizing its chance.

“We have to aim for real results. We’ve discussed this for many years but the results do not correspond to what they should be for two neighbouring powers,” Zhang Guobao, China’s top energy official, told the conference.

“We need to build oil and gas pipelines, increase downstream and upstream cooperation and increase cooperation in the nuclear sphere,” said Zhang, head of China’s State Energy Bureau, speaking through a Russian interpreter.

The length of the pipeline to the Chinese border would be around….

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Poland wants talks with Russia, Germany on contested pipeline

January 8, 2008

WARSAW (AFP) – Poland wants talks with Germany and Russia about a controversial Baltic Sea gas pipeline project steered by Russian giant Gazprom, Prime Minister Donald Tusk said in an interview published Monday.

“I want to launch an in-depth discussion,” Tusk said in the Polish edition of the magazine Newsweek.

“We need to demystify the problem. We need to understand why the Russians are holding out for this project under the Baltic, which is three times more expensive than a gas pipeline crossing Poland….

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Russia’s Putin Warns U.S. From Iran

October 16, 2007

By Vladimir Isachenkov, Associated Press Writer 

TEHRAN, Iran – Russian leader Vladimir Putin met his Iranian counterpart Tuesday and implicitly warned the U.S. not to use a former Soviet republic to stage an attack on Iran. He also said nations shouldn’t pursue oil pipeline projects in the area if they weren’t backed by regional powers.

At a summit of the five nations that border the inland Caspian Sea, Putin said none of the nations’ territory should be used by any outside countries for use of military force against any nation in the region. It was a clear reference to long-standing rumors that the U.S. was planning to use Azerbaijan, a former Soviet republic, as a staging ground for any possible military action against Iran.

Mahmoud Ahmadinejad
محمود احمدی‌نژاد
Mahmoud Ahmadinejad

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