Iran gas curb hurts Iraq
US energy chief in Baghdad
BAGHDAD, Dec 11, (Agencies): US Energy Secretary Rick Perry said on Tuesday he discussed sanctions against Iran with Iraqi energy officials as Washington pressures Baghdad to stop importing Iranian gas that is crucial for its power grid.
“Sanctions were mentioned, they’re a reality, they’re there,” Perry told reporters in Baghdad after meeting Iraq’s oil and electricity ministers, without providing further details of the discussion.
Washington gave Iraq a 45-day waiver over imports of Iranian gas when it reimposed sanctions on Iran’s oil sector on Nov 5. Iraqi officials have said they need
around two years to wean themselves off Iranian gas imports and find an alternative source.
“This (Iraqi) administration recognizes ... the imperative to move with some expedition to send a message to the United States ... that this is an administration that is going to move with speed to develop infrastructure especially in the energy sector that best serves the citizens of Iraq,” Perry said.
Iraq reached a deal with US energy giant General Electric and German rival Siemens to install liquefied natural gas-operated mobile power units at some small southern oil fields, Iraq’s state newspaper reported last month.
The Financial Times reported in October that the US government had intervened in favour of GE for a contract sought by both companies to supply 11 gigawatts of power generation equipment, reportedly worth around $15 billion.
Perry spoke at a conference organised by the US Chamber of Commerce which Oil Minister Thamer Ghadhban also attended. “The most important (thing) is our presence and our conversations ... we talked about the challenges but we also talked about some very positive opportunities,” Perry said.
Neither minister gave details of the conversations.
Washington is seeking to roll back Iranian influence in the Middle East, including Iraq where Tehran has dominated politics and trade.
Iraq’s efforts to reduce gas flaring could reduce its reliance on Iranian gas.
The US sanctions target Iranian oil as well as its banking and transport industry.
Perry said the United States recognised the challenges faced by Iraq’s government in rebuilding oil infrastructure destroyed during the war against Islamic State militants.
Perry later met Prime Minister Adel Abdul Mahdi and discussed energy and the economy, the premier’s office said in a statement. It said Perry was in Baghdad with a delegation of over 50 business people.
Perry on Tuesday said he discussed sanctions with Iraqi Oil Minister Thamer al-Ghadban and Electricity Minister Luay al-Khateeb, but did not say whether Baghdad would receive an extension to the waiver which ends next week.
Iraq this week is marking one year since it declared victory against the Islamic State group, whose sweep across swathes of the country prompted foreign firms to withdraw.
But since IS was rolled back and Iraq held parliamentary elections in May, the US embassy in Baghdad has energetically pushed American companies to invest in Iraq, and the Iraqi government to open doors for them.
The embassy published a video this week insisting America should be “Iraq’s economic partner of choice.”
Steve Lutes of the US Chamber of Commerce, which organised the gathering, said its goal “is to show American companies that Iraq is open for business.”
But despite improved security, investors said they were apprehensive about endemic corruption and bureaucracy – issues that predate IS.
Iraq is the 12th most corrupt country in the world, according to Transparency International, and embezzlement of public goods is a deeply rooted problem.
“Security-wise, I’m not as concerned as I am about the red tape, things not moving, and to a certain degree about corruption,” said attendee Mohammad Hussein, whose Texasbased tech company FTS Solutions is looking into Iraq’s education and oil sectors.
Many attendees began operating in Iraq after the US-led invasion in 2003.
Among them was the Contellis group, which includes Academi, formerly known as Blackwater.
Blackwater was banned from Iraq after four of its employees were accused of killing 14 civilians in Baghdad.
Oil and gas giant Chevron, as well as energy companies Siemens and General Electric, were also present.
Iraq’s electricity ministry signed MOUs this year with both Siemens and GE to revamp its power sector, in deals seen as part of Baghdad’s efforts to wean off Iranian energy at the US’ request.
Iraqi Prime Minister Adel Abdul Mahdi on Tuesday expressed keenness on cementing economic cooperation with the United States of America.