Michele Kearney's Nuclear Wire

Major Energy and Environmental News and Commentary affecting the Nuclear Industry.
Showing posts with label Saudi Arabia. Show all posts
Showing posts with label Saudi Arabia. Show all posts

Monday, January 17, 2011

OCI, Arab Contractors In JV To Bid On Egypt's First Nuclear Power Plant

OCI, Arab Contractors In JV To Bid On Egypt's First Nuclear Power Plant

 Construction services contractor Orascom Construction Industries, or OCI, Group (ORSD.L: News ) Monday reported forming a joint venture with Arab Contractors with the intention of bidding on Egypt's first nuclear power plant. The companies are also attempting to rope in nuclear technology providers into the bidding consortium. Egypt plans turning to nuclear power to meet rising electricity demands. The proposed plant will be set up in Al Dabaa, and bidding is expected to happen in February. Both OCI and Arab Contractors have a significant presence in Egypt, but with other nuclear projects expected in the region, the companies look to expanding their "geographical footprint".
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Sunday, January 2, 2011

Iran's Nuclear Domino Effect by Andrew Roberts

A former Bush defense official says that Saudi Arabia and Pakistan might initiate a dangerous alliance if Iran develops nuclear weapons. Andrew Roberts speaks to Eric Edelman about the unintended consequences for South Asia. 


Might the impending nuclearization of Iran rapidly lead to a situation in which India targets nuclear weapons on Saudi Arabia? That is one of the many unnerving repercussions envisaged in an authoritative article, “The Dangers of a Nuclear Iran,” in the current issue of Foreign Affairs, written by, among others, Eric Edelman, President George W. Bush’s undersecretary of defense for policy from 2005 to 2009. When an analyst of Edelman’s seniority and ability, who moreover was working in the Pentagon with full access to all the available intelligence on precisely this issue as recently as two years ago, pronounces on questions of this gravity it behooves us to pay serious attention.
More at:

http://www.thedailybeast.com/blogs-and-stories/2011-01-02/irans-nuclear-weapons-could-lead-to-a-saudi-and-pakistan-alliance
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Wednesday, December 29, 2010

U.S. dominates Middle East arms market




http://www.spacewar.com/reports/US_dominates_Middle_East_arms_market_999.html Dubai, United Arab Emirates (UPI) Dec 28, 2010 The United States-dominated defense sales in the Persian Gulf in 2005-09 and delivered 54 percent of the Middle East's military hardware, including advanced systems that had been denied Arab states because of Israeli objections, analysts say. The Stockholm International Peace Research Institute, which monitors global arms sales, said in a recent study that the United Arab Emirates was the largest market for conventional arms in that time frame.
SIPRI reported that U.S. defense companies won 60 percent of contracts by value awarded by the federation of seven emirates, a key oil producer and a member of the Gulf Cooperation Council, with Saudi Arabia, Kuwait, Oman, Qatar and Bahrain.
Dan Darling, a Middle East defense analyst with the U.S.-based Forecast International, said the United States has consolidated its status as the principal supplier of advanced military systems to the United Arab Emirates, which has emerged a regional military heavyweight.
"The U.S. arms sales to these countries are meant to improve the defense capabilities of the recipient nations, reinforce the sense of U.S. solidarity with its GCC partners and, finally, create a semblance of interoperability with American forces," Darling observed.
"This is noteworthy as France has traditionally been a supplier to the United Arab Emirates, selling them everything from combat aircraft to helicopters to battle tanks."
The United States plans to sell Saudi Arabia, the principal power in the GCC and Iran's main rival for regional leadership, advanced weaponry worth some $67 billion over the next 10 years.
That's the biggest arms deal in U.S. history and it's part of some $123 billion in anticipated arms purchases by the gulf states over the next decade as they build up their military capabilities to counter Iran.
"With the Persian Gulf in flux, the United States is trying to get back into a position where the natural Arab-Persian divide in the region balances itself out," the U.S. global security consultancy Stratfor observed.
"From the U.S. point of view, Iran and Iraq could go on fighting each other for years -- as they did throughout the 1980s -- as long as neither is capable of wiping out the other.
"Right now, Iraq is in far too weak a position and is too wedded to the Iranians to rebuild itself as a useful counter to Iran, so that responsibility is increasingly falling to Iraq's neighbors."
Stratfor, noting the massive U.S. arms package proposed for Saudi Arabia, said the Americans are "investing the years into shaping the Saudi military into an effective force and encouraging the United Arab Emirates to reduce its vulnerabilities to Iran."
The top four nations providing arms to the region after the United States and France are Russia, Britain and China.
Most Russian and Chinese arms deliveries have gone to Iran. Western suppliers don't deal with the Islamic Republic because of international arms embargoes that have been in effect more or less since the Islamic Revolution in 1979.
However, Russia still entertains hopes of securing an arms package worth $2 billion-$2.4 billion to Saudi Arabia.
Riyadh proposed a deal involving 150 T-90 main battle tanks, 250 BMP-3 armored personnel carriers and short- and long-range surface-to-air missiles, apparently to persuade Moscow not to sell powerful S-300PMU air-defense missiles to Iran.
Russia announced in June it wouldn't deliver on its $800 million 2007 deal with Tehran.
Israel, which got $2.78 billion in U.S. military aid in 2010, is the region's second largest defense spender. Its main supplier is the United States, which has vowed to maintain Israel's technological superiority.
"Though the U.S. remains sensitive to the potential erosion of Israel's regional qualitative military edge, it has granted major equipment sales to gulf nations in recent years," observed Darling of Forecast International.
These have included advanced the MIM-104 Patriot air-defense system built by the Raytheon Co. and Lockheed Martin GBU-28 "bunker buster" bombs to the emirates, Boeing AH-64D Apache Longbow combat helicopters to Saudi Arabia and Lockheed Martin F-16s, Boeing AGM-84 Harpoon and Lockheed AGM-114 Hellfire missiles to Egypt.
GCC defense spending is expected to rise in 2011 by an additional 2.5 percent, Darling reported.
"Over the next five years, the greater Middle East defense market is projected to grow by over 11 percent, reaching nearly $120 billion by 2014," he said.

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Tuesday, December 14, 2010

Why are Arabs Racing to Go Nuclear? By Andres Cala


http://www.energytribune.com/articles.cfm/6083/Why-are-Arabs-Racing-to-Go-Nuclear

Why are Arabs racing to go nuclear?
A top US energy official said this week in Riyadh that Saudi Arabia expects to generate nuclear power within 10 years. Egypt will invite tenders for its first nuclear plant later this month. And Kuwait this week not only launched a feasibility study aimed at having nuclear power as early as 2020, it bought a 4.8 percent stake in French Areva, the world’s top reactor supplier.
That follows Jordan’s ongoing march to enrich uranium and to build a power plant and the United Arab Emirates’ years-old program aimed at completing its first nuclear power plant by 2017. Syria is believed to have been working on setting up its own nuclear plant before it was destroyed by Israelis.
Each country is in a different stage and not all will be successful, but few doubt that Arab countries will inevitably join the nuclear power frenzy sooner or later. It’s a question of economics, all countries say pointing to their insufficient power capacity and lack of options. But a driving force is unquestionably Iran’s nuclear program.
“There’s no doubt that there is rising interest in nuclear power in the Middle East,” said Charles K. Ebinger, senior fellow and director of the Energy Security Initiative in the Brookings Institute. “I think the reality is that all these countries will pursue this for energy security reasons. There’s an interest to address power demand and water desalination efforts.”
“But in light of Iranian situation we would be fooling ourselves if we deny there’s not a prospect of another motivation, which is to train their nationals to build weapons of their own if they feel threatened,” Ebinger said.
Most Arab countries have signed cooperation agreements with nuclear powers, including the US, France, Russia, China, South Korea, and Japan. Qatar is also mulling developing a nuclear program, as is Bahrain, and there is ongoing talk to share a regional program in the Gulf Cooperation Council, the six-country alliance in the Persian Gulf.
The need to rapidly boost power capacity is real and there are no alternative sources, other than oil, which is significantly more valuable, sold in international markets, as long as crude prices remain about $80 a barrel, Kuwait estimated. Only Qatar has enough indigenous gas resources.
The UAE and Oman already import gas supplies. Saudi Arabia and Kuwait are burning millions of barrels of oil a day to meet demand, and Kuwait already suffers from blackouts. Egypt, which generates three quarters of its power with gas, will deplete its fields in 20 years. Jordan already imports 95 percent of its gas.
The question is whether Arab countries will follow the UAE in signing the so-called 1-2-3 agreements with Washington to access US nuclear technology on the condition that they forego enrichment and reprocessing, the two technologies that could be diverted for military purposes, as many believe Iran is doing.
Under International Atomic Energy Agency treaties, countries have the right to develop uranium enrichment, as long as they sign on to non-proliferation treaties. Egypt, for example, has said it intends to pursue enrichment. Jordan, with huge uranium deposits, said it will do the same in an effort to eventually become a regional supplier.
The more concerning case is Saudi Arabia, the regional powerhouse that rivals Iran. Riyadh recently agreed to buy up to $60 billion worth of American advanced weaponry to counter its enemy’s might. The Wikileaks documents exposed Arab concern over Iran’s nuclear program and support for a military campaign to derail Tehran, contradicting official Arab policy.
Earlier this week U.S. Undersecretary of Commerce Francisco Sanchez said Saudis “seem to be very committed to having civil nuclear as part of what generates energy for them and to do it relatively quickly, like within the next 10 years.” Sanchez said he saw “wonderful opportunities” for American companies, which implies Riyadh would forego enrichment.
But while Saudi Arabia has said they won’t pursue enrichment, they “included enrichment in terms of reference” of a contract signed with the French company helping the country map its nuclear future, said Ebinger.
For the time being, it appears only the UAE and Egypt nuclear power programs are set in stone. Analysts say there is a lot of politics directed at Iran in the Arab march toward nuclear power. “I think there’s that message implied that they will not fall behind. They are saying they will not fall behind technologically and they will keep their weapons issue open,” Ebinger said.
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Tuesday, December 7, 2010

Saudi wants nuclear power 'soon': US official

RIYADH — Saudi Arabia plans to be producing nuclear power within 10 years, a senior US trade official said here Monday.
"They want to have civil nuclear power as a part of their mix ... relatively soon," said Under Secretary of Commerce Francisco Sanchez, after meetings with Saudi officials.
The world's largest supplier of oil wants to have nuclear power "within the next 10 years", he told journalists.
Riyadh has begun to move toward nuclear power to replace burning valuable oil and natural gas in power plants.
The country signed a cooperation agreement on civil nuclear technology with the United States in 2008, and has held talks with France and Russia in the past year on similar agreements.
In April the country announced it would build the research-and-development focused King Abdullah City for Nuclear and Renewable Energies to underpin its move to diversify energy use away from fossil fuels.
Sanchez was in Riyadh leading a delegation of US businessmen in the infrastructure and energy sectors to meet Saudi counterparts.
He said Saudi Arabia's planned spending of some 500-700 billion dollars on infrastructure over 2009-2014 made it an important target for US businesses, especially in the alternative energy sector.http://www.google.com/hostednews/afp/article/ALeqM5h_ALKUAqgT7WBYWBkuM2R85yjrFA?docId=CNG.3c86e1065eee2cfd740284f4a84f3555.221
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Wednesday, December 1, 2010

BP hails 'significant milestone' in Canadian oil sands plan


The Athabasca Oil Sands in Alberta, Canada, ar...Image via Wikipedia


http://www.energy-daily.com/reports/BP_hails_significant_milestone_in_Canadian_oil_sands_plan_999.html London (AFP) Nov 30, 2010 British energy giant BP has welcomed key progress in its plan controversially to extract oil from Canadian sands, with a company spokesman on Tuesday describing the step as a "significant milestone". Canadian group Husky Energy, BP's joint-venture partner, said on Monday that it was giving the go-ahead for the project's first phase.
A BP spokesman said the move was "a significant milestone" for the British company.
"We will now move forward ... leading to first production in 2014," he told AFP.
At an estimated 175 billion barrels, Alberta's oil sands are the second largest oil reserve in the world behind Saudi Arabia, but they were neglected for years, except by local companies, because of high extraction costs.
Since 2000, skyrocketing crude oil prices and improved extraction methods have made exploitation more economical, and have lured several multinational oil companies to mine the sands.
But environmentalists oppose extraction from sands, claiming it produces three to five times more carbon emissions than conventional oil production and pollutes waterways.
BP, which was at the heart of an environmental crisis earlier this year due to a massive oil spill in the Gulf of Mexico, has said that the oil or tar sands project is crucial in helping meet the world's energy needs up to 2030.
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Friday, November 19, 2010

Emirates seek alternative oil export route




http://www.energy-daily.com/reports/Emirates_seek_alternative_oil_export_route_999.html Abu Dhabi, United Arab Emirates (UPI) Nov 18, 2010 Amid continuing fears that Iran may seek to close the choke point Strait of Hormuz in the Persian Gulf, a vital oil artery for the world, the United Arab Emirates is seeking alternative export routes for its oil. The federation opened a naval base Oct. 20 at Fujairah on its east coast, south of the entrance to the strait in the Gulf of Oman.
It will play a key role in plans to construct an overland route from Abu Dhabi, the emirate that contains more than 90 percent of the federation's oil, to the sea without using the narrow, horseshoe-shaped strait.
Abu Dhabi is reported to be building two pipelines -- one for oil, the other for natural gas -- across the desert to Fujairah, where it plans to construct a huge export terminal and an oil storage facility.
"A naval base in Fujairah will give the emirates more capabilities to protect its economic zone and its strategic facilities, the port down there which will be a major point of export for oil and gas," said Riad Kahwaji, director of the Institute for Near East and Gulf Military Analysis in Dubai.
Tehran has threatened several times to close the strait if the United States or Israel launches pre-emptive attacks against Iran's nuclear facilities. This could be done by sinking large ships to block the waterway, in airstrikes or missile attacks, or by placing sea mines.
On a typical day, around 15 tankers carrying up to 17 million barrels of oil and oil products, along with dozens of freighters, pass through the strait -- two-fifths of the world's oil supply.
This comprises most of the oil and liquefied natural gas exported by Saudi Arabia, the emirates, Qatar and Kuwait, as well as Iran and those from southern Iraq.
Going the other way, the Gulf Cooperation Council states -- Saudi Arabia, the United Arab Emirates, Kuwait, Oman, Qatar and Bahrain -- import most of their food and consumer goods through the strait and a prolonged shutdown would cause serious economic and social disruption.
The gulf region holds 55 percent of the world's known oil reserves. So a prolonged closure of the 112-mile strait, whose eastern shore is controlled by Iran, would send oil prices soaring, causing a global economic shockwave.
"If this chokepoint was closed for an extended period, the economies of the Middle East would suffer significantly and this would generate severe economic dislocation around the world," Jane's Intelligence Review reported recently.
"Millions of guest workers in gulf states from developing countries could also be left unemployed, leading to greater poverty in South Asia and East Asia."
This would undoubtedly send oil prices soaring from the current level of around $80 per barrel to the peak of nearly $150 it hit in 2007-08, possibly to even more crippling levels.
The U.S. Energy Information Administration estimates that if the strait were closed, only about 3 million barrels of oil per day could realistically be redirected through Saudi Arabia through a trans-Arabian pipeline to the Red Sea port of Yanbu on the kingdom's west coast.
There would no other way to transport the 31 million tons a year of LNG -- 18 percent of world consumption -- that Qatar and the emirates export.
However, the emirates and Saudi Arabia are planning to construct a major rail network across the peninsula that would allow them to move oil and gas exports overland to the west to the Red Sea or north through Iraq to Turkey to join the European energy grid, as well as to bring in imports.
"The first of these projects," a north-south minerals rail link, "is now only weeks from completion," the Middle East Economic Survey reported this week.
Even if a closure of the strait was relatively short, in the order of several weeks, the economic impact would still be substantial, magnified by the global economic crisis.
"Extended closure of the strait would remove roughly a quarter of the world's oil from the market, causing a supply shock of the type not seen since the glory days of OPEC," Caitlin Talmadge of the Security Studies Program at the Massachusetts Institute of Technology, warned in a mid-2008 assessment.
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Tuesday, November 16, 2010

Saudi economists call Fed move ‘golden opportunity’ to de-peg By SARAH ABDULLAH | ARAB NEWS

Arab news

Saudi economists call Fed move ‘golden opportunity’ to de-peg

By SARAH ABDULLAH | ARAB NEWS

Published: Nov 12, 2010 23:51 Updated: Nov 12, 2010 23:51
JEDDAH: With the US Federal Reserve’s recent decision to pump $600 billion into its economy as a stimulus to ward off increasing recessionary pressures, the question of whether Saudi Arabia and other Gulf states should keep their pegs to the US dollar has again taken center stage.
Voicing their opinions on the issue, several economists have come forward, calling the current turn of events, “a golden opportunity” to de-peg. They state that the US economy is experiencing an economic crisis and progressive weakening with economists fearing that future repercussions will include higher inflation rates in the Kingdom matching those of 2008.
“The time has come to lift the peg,” said Abdulrahman Al Saneh, professor of economics at the CBA in Jeddah, in an interview with Al-Eqtisadiah newspaper, a sister publication of Arab News. “This is a golden opportunity to de-peg before the dollar’s expected decline forecast over the next six months.”
He maintained that the recent move by the US Federal Reserve is a temporary fix that will not resolve the crisis. Nonetheless he did add that the present stimulus will have a temporary positive effect on the Saudi riyal and other currencies pegged to it by increasing the purchasing power of the dollar and give a slight boost to the currencies linked to it.
“The recent stimulus will also have a temporary effect in helping to stabilize inflation in the Kingdom currently at 6 percent, but does not mean that the opportunity to de-peg should be ignored.” Al-Saneh said.
On the other hand, Turki Fadak, a member of the Securities and Exchange Commission at the Jeddah Chamber of Commerce and Industry (JCCI), stressed appropriate action needs to be carried out in light of the Fed’s stimulus plan.
“Steps need to be taken to reduce any negative effects of the recent actions of the US Federal Reserve. This can be done by purchasing bonds and increasing the level of exports following a revaluation of the Saudi riyal from 3.75 to 3.00 against the US dollar,” Fadak said, adding that beyond these measures de-pegging needs to be considered to curb rising inflation.
He further stated that the Fed’s actions will have not only a domestic impact within the US but also global implications that can lead to dollar depreciation in the short to medium term. This will cause other currencies to have to work harder to raise the price of their currencies against the dollar followed by a rise in the prices of dollar-denominated commodities such as oil and minerals on the global market, in addition to raising prices of imports from Europe and Asia.
“Unfortunately, Saudi Arabia’s non-oil exports are not large compared to other countries. Because our exports are small and we have few things to ship outside and with all of our products pegged to the US dollar, this helps the US market but has a negative effect on Saudi markets as competition increases in response to a weak dollar,” he said, adding that he expects gold prices to reach $1,500 before year’s end.
Agreeing Salem Bajaja, professor of accounting at the University of Taif, has said that he expects the recession to continue globally and locally effecting emerging currencies and causing them to raise and lower exports due to eroding purchasing power.
Bajaja advised de-pegging the riyal from the US dollar, tying it to a basket of currencies as an indication that the US is skeptical in restoring economic strength while speeding up the process of ratifying the GCC unified currency.
John Sfakianakis, chief economist of Banque Saudi Al Fransi, said the likelihood of the Kingdom de-peging its currency to the dollar is simply not in the forecast.
“In my opinion, I don’t believe Saudi Arabia or any of the Gulf States will choose to revalue or de-peg from the dollar as brought to light in 2007-2008,” Sfakianakis told Arab News.
He stated that the forces currently in play are not the same as those experienced in 2008 with Gulf States preoccupied with credit recovery and growth of the non-oil private sector.
“The inflation forecasts are not expected to reach double-digits through 2011, so there is no reason to de-peg. Gulf state economies are now more in sync with the US than in 2008 with today’s loose monetary policy serving both interests and upholding the viability of the Gulf dollar peg,” he said.
© 2010 Arab News
http://arabnews.com/economy/article188494.ece
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Monday, November 8, 2010

U.S. arms deal raises concerns in Mideast




The wholesale upgrading of the armed forces of Saudi Arabia and its partners in the Persian Gulf is seen in some quarters as a risky enterprise that will only convince the Iranians they need nuclear weapons to counter such a buildup of conventional forces ranged against them.

Dubai, United Arab Emirates (UPI) Nov 8, 2010 The U.S. administration's plan to sell advanced weaponry worth at least $122 billion to its allies in the Persian Gulf to counter Iran is causing unease in the Middle East. There are fears that the mega-deal, the biggest arms sale in U.S. history if Congress approves, carries serious risks it will inflame regional rivalries while it provides huge profits for the U.S. defense industry.
The potential for conflict in an inherently unstable region prone to war and insurgency is immense. Iraq, Yemen, Lebanon and the Levant are all powder kegs. Israel feels increasingly squeezed by missile-armed forces that ring it and may resort to pre-emptive strikes.
The massive U.S. deal doesn't cover Iraq, where the Americans are still rebuilding the country's postwar military and security forces.
But that, too, causes concern. Saddam Hussein launched two wars against his neighbors. He invaded Iran in September 1980, triggering a grueling war of attrition that ended in August 1988. Two years later he invaded Kuwait, which ended in a crushing defeat for Iraq by a U.S.-led coalition.
Iraq's neighbors, particularly Iran and Saudi Arabia, have no wish to see the new Iraq become a military power.
Right now, that prospect is less threatening than the reality of the present, with Iraq once again sliding into chaos and anarchy that could spill over into the Persian Gulf as the Saudis and other Sunni states seek to prevent the Iranians gaining a foothold in the heart of the Arab world.
The Americans have armed the gulf states for decades but this time they're providing them with offensive systems.
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Thursday, October 28, 2010

Iran Turns to OPEC to Defuse Iraqi 'Oil Threat' By: Andrea Bonzanni | World Politics Review

On Oct. 11, Iranian Oil Minister Massoud Mir Kazemi announced a reassessment of the country's oil reserves, increasing them by 9 percent to 150.31 billion barrels, from the previous official figure of 138 billion barrels. The announcement closely followed a similar move by Iraq, which had a week earlier raised its proven reserves by one-quarter -- to 143 billion barrels -- allowing Iraq to temporarily overtake Iran as the world's third-largest oil-reserve holder. The back-to-back announcements do not signal the discovery of new oil in the Middle East, however. As Iranian and Iraqi subsoil resources have been extensively surveyed over a period of decades, it is unlikely that the countries' nationalized oil industries have dedicated effort and scarce capital to exploration activity.

Instead, the revaluation of reserves should be interpreted as strategic maneuvering intended to influence the assignment of future production quotas within the Organization of Petroleum Exporting Countries (OPEC). The oil producers' cartel assigns quotas based on each member's proven reserves, and the current allocation will inevitably undergo a substantial revision due to Iraq's re-emergence as a major producer. Although Iraq and Iran have traditionally enjoyed similar quotas, Baghdad is now demanding special treatment to make up for three decades of underproduction it has suffered due to wars and sanctions. With this in mind, in 2009 Iraq signed contracts to rapidly increase its output from 2.4 million barrels per day (b/d) to 12 million b/d within 6-7 years. For its part, Iran -- which now produces 3.3 million b/d and relies on oil revenue for the lion's share of its budget -- has no intention of reducing its output to make room for new Iraqi production. More at:http://www.worldpoliticsreview.com/articles/6860/iran-turns-to-opec-to-defuse-iraqi-oil-threat
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Fifty Years of OPEC - East Asia Forum

A little noticed anniversary celebrated in September was that of 50 years of the existence of the Organisation of the Petroleum Exporting Countries (OPEC).  Despite the muted fanfare, its establishment led to fundamental changes in the global economic and political orders that remain critical today.
http://www.eastasiaforum.org/2010/10/27/fifty-years-of-opec/
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Iraq, Iran face off in oil power struggle

Flag of the Organization of Petroleum Exportin...Image via WikipediaAs Iran seeks to establish its supremacy in Iraq, its ancient enemy, the countries are also clashing in OPEC where Iraq's re-emergence as a leading oil producer seems likely to upset the balance of power in the cartel. Given the political turmoil inside Iraq as it struggles to form a coalition government seven months after an inconclusive parliamentary election produced no clear-cut winners, this energy rivalry could yet have geopolitical consequences that could threaten regional stability.
Saudi Arabia, the world's largest producer, holds a seemingly unassailable dominance within the Organization of Petroleum Exporting Countries.
But the rivalry between Iran and Iraq is who will hold the No. 2 slot in terms of production capacity.
Iraq, after signing 20-year production contracts with a host of international oil companies in 2009 to boost its laggardly output, announced Oct. 4 that it upgraded its oil reserves from 115 billion barrels to 143.1 billion.
That was a 24 percent hike, which vaulted Iraq over Iran in the reserves standings and put it behind Saudi Arabia and Venezuela in terms of conventional oil reserves.
A week later, Tehran responded by boosting Iran's reserves from 138 billion barrels to 150.3 billion, a 9 percent increase, and said the figure was likely to go up again before the end of the Iranian year in March 2011.
That put Iran back up there as the No. 2 producer after Saudi Arabia.
Iran's current output, despite U.S., U.N. and EU sanctions, is pegged at 3.7 million barrels per day while Iraq's stands at around 2.4 million bpd.
It is production levels that determine OPEC's pecking order rather than reserves, although Iraq is believed to have as much as another 100 billion barrels oil in untapped reservoirs.
Iran is unlikely to be able to improve its production rate, largely because the international sanctions prohibit foreign investment in the Islamic Republic's energy sector, mainstay of its economy.http://www.energy-daily.com/reports/Iraq_Iran_face_off_in_oil_power_struggle_999.html

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Tuesday, October 26, 2010

Saudis Interested in Russian Nuclear Power

Saudi Arabia will discuss a nuclear power deal with Russia, the official Saudi Press Agency said after a Cabinet meeting Monday.
The Cabinet authorized the head of the King Abdullah City for Atomic and Renewable Energy to sign a draft accord, it said. The countries plan to cooperate in the “peaceful uses of nuclear energy,” it said.
Saudi Arabia is one of several Gulf Arab countries seeking to develop nuclear energy to meet electricity demand that’s rising at about 8 percent a year. The United Arab Emirates awarded a $20 billion contract in December to a group of companies led by Korea Electric Power to build four nuclear plants, and Kuwait plans to build four reactors by 2022.
Saudi Arabia held talks with international companies to build its first nuclear and renewable energy city, said Khalid al-Sulaiman, vice president for renewable energy at the city, speaking in Jeddah on Oct. 4. The city has engaged 14 architectural and design houses.
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Sunday, October 17, 2010

Iran destabilizing entire Middle East: former Iraq PM Allawi


Washington (AFP) Oct 17, 2010 - Former Iraqi prime minister Iyad Allawi on Sunday accused Iran of trying to "wreak havoc" across the entire Middle East and interfering in Iraq's political process. In an interview with CNN's "Fareed Zakaria GPS," Allawi said the region was "falling victim" to extremist groups financed by Tehran. "We know that unfortunately Iran is trying to wreak havoc on the region, and trying to destabilize the region by destabilizing Iraq, and destabilizing Lebanon and destabilizing the Palestinian issue," Allawi said. "And this is where unfortunately Iraq and the rest of the greater Mideast is falling victim to these terrorists who are definitely Iran-financed and supported by various governments in the region."

Allawi's Iraqiya political bloc earned 91 seats in Iraq's March 7 elections. two more than the State of Law alliance headed by current Iraqi Prime Minister Nuri al-Maliki. The two parties have been locked in a battle for control of the 325-member Council of Representatives, shuffling through potential coalitions that could win them power. Allawi, a moderate Shiite whose political grouping attracted support from Sunnis, said Iran was interfering in Iraq's political process. "Definitely in Iraq I can say categorically that Iran is trying even to bring about change to the political process according to their wishes and requirements."

He declined to directly accuse Tehran of a hand in a recent deadly attack on members of Iraqiya, saying there were various parties "who are trying to sabotage the political process." But he denied that other countries in the region were pressuring him or interfering in Iraq's political wrangling, adding that Saudi Arabia's King Abdullah had offered strong support for an inclusive, representative government. "So I don't believe that there are leaders in the region who are trying to fuel extremism and bring about sectarianism; unfortunately, only Iran," Allawi said.

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Thursday, October 14, 2010

World Citizen: Arabs States Building Arsenal for War With Iran

The magnitude of the weapons purchases is nothing short of astounding and the speed at which they are accelerating is breathtaking. Consider how fast the orders are growing: Gulf nations, including Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Oman and Kuwait, bought $37 billion worth of U.S. weapons in the last four years, with the majority of the purchases coming in just the last two years. And the deals already under negotiation for the next four years are expected to total $123 billion. Those numbers don't include arms purchases from countries other than the U.S.
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Friday, October 8, 2010

Kepco, Turkey Are in Final Stage of Talks on Construction of Nuclear Plant

  • Nuclear talks between Korea Electric, Turkey near conclusion
  • Korea Electric Power Corp., which won an $18.6 billion atomic reactor order from the United Arab Emirates in December, is in the final stage of talks with Turkey for the construction of a nuclear power station.
    A consortium led by Korea Electric will invest in the project, Chief Executive Officer Kim Ssang Su told lawmakers today in Seoul.
    The Turkish government may take a stake of 60 percent in the company that will build the country’s second nuclear power station, Sabah newspaper reported on Oct. 4, without saying how it got the information.
    Korea Electric is proposing to take the remaining share and will raise 70 percent of the estimated $20 billion cost through loans, the Istanbul-based newspaper reported.
    Korea Electric is also seeking to build nuclear power plants in India and Malaysia and considers South Africa, Thailand, Kuwait and Saudi Arabia as potential markets, the Seoul-based company said in a report to lawmakers today.
    State-run Korea Electric beat General Electric Co. and Areva SA to win an order to build four reactors in the U.A.E. The company signed an agreement in March with the Turkish government to study construction of a plant in Sinop, northeast of Ankara.
     
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Thursday, October 7, 2010

South Korea Plans to Lend $10 Billion for U.A.E. Nuclear Plants

U.A.E. nuclear project may get $10B loan from South Korea
Korea Electric Power may secure a $10 billion loan from Export-Import Bank of Korea for the construction of four 1,400-megawatt nuclear facilities in the United Arab Emirates, said Heung-Sik Min, the bank's main representative in Dubai. "The U.A.E. nuclear project will be the bank's first for such a huge amount," he said during an interview. Bloomberg
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Tuesday, October 5, 2010

Saudi Arabia Holds Talks With Companies on Building Nuclear Energy City

Saudi Arabia seeks foreign expertise in nuclear, renewable project
Saudi Arabia has spoken with North American, European and Asian companies in its plan to develop a nuclear and green-energy city, said Khalid al-Sulaiman, vice president for renewable energy. "We have engaged the expertise and thinking of 14 of the best architectural and design houses," he said in Jeddah, Saudi Arabia. Bloomberg (10/4) http://www.bloomberg.com/news/2010-10-04/saudi-arabia-holds-talks-with-companies-on-building-nuclear-energy-city.html
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Friday, September 24, 2010

Russia expands Middle East nuke presence

Moscow (UPI) Sep 22, 2010 Russia and Kuwait have signed a five-year nuclear cooperation agreement. The memorandum of understanding between the Kuwait National Nuclear Energy Committee and Russia's Rosatom State Atomic Energy Corporation was signed in Vienna on the sidelines of the 54th session of the General Conference of the International Atomic Energy Agency, Robsbalt news agency reported Wednesday.
Earlier this month Kuwait signed a similar agreement with Japan, along with an April memorandum with France.
Kuwait state media quoted Ahmad Bishara, the secretary general of Kuwait's National Nuclear Energy Committee as saying, "The memo ... stipulated training cadres, exploration for metals, establishing a network of nuclear reactors in Kuwait and building a relevant infrastructure."
Earlier this month Kuwait announced that it intends to construct four 1,000-megawatt atomic energy reactors over the next decade. Kuwait is currently the world's fourth-largest oil exporter, while Russia is tied with Saudi Arabia for first place.
Rosatom Director General Sergey Kirienko said that Russia stands ready to assist Kuwait in all aspects of developing its civil nuclear power program, not only in the construction of nuclear power stations, but exploration and mining of uranium, training of personnel and research.
The MoU will also cover nuclear medicine and the nuclear fuel cycle. Kirienko said, "We in Russia are developing the atomic energy sector on a wide scale and we welcome Kuwait's plans to develop it, too."
Kirienko added that Russia is actively cooperating with several states in the Middle East, with Rosatom bidding to build a nuclear power plant in Jordan along with submitting a tender to build a nuclear power plant in Egypt. Rosatom has also signed an intergovernmental civil nuclear cooperation agreement with Bahrain and is actively developing its nuclear cooperation with the United Arab Emirates.
Russia is also increasing its nuclear energy footprint in Turkey. Rosatom Deputy Director General for Finance and Economics Nikolai Solomon, speaking at the World Nuclear Association's annual symposium in London last week, said Russia was pressing on with a multibillion-dollar deal on a build-own-operate agreement with Ankara to build the country's first nuclear power plant at Akkuyu near the country's Mediterranean coast.
Under the BOO arrangement Russia's Atomstroiekhsport will own 100 percent of the Akkuyu project, owning, operating and maintaining the facility and selling its electrical output under a deal with the Turkish government to guarantee plant's power supply for a 15-20 year period.
The Akkuyu nuclear power plant will be Russia's first built and owned foreign power plant, with construction expected to take several years.
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