Russia-Iraq arms deal $4.2 billion, incl anti-aircraft missiles & radar for Kurdistan to address Turkish air ops targeting PKK

Nidal al-Laythi  Al Monitor

Russia’s Council of Ministers issued a press release on the meeting held by Russian Prime Minister Dmitri Medvedev and Iraqi Prime Minister Nouri al-Maliki, who is currently on a visit to Russia.

The press release said that Iraq has signed arms deals worth over $4.2 billion with Russia during the second half of 2012. The deal was described by observers as the biggest move to help the Russian arms industry avoid recession after it lost its markets in Libya and Syria.

It marks the biggest single weapons transaction Moscow has conducted for 30 years, except for deals with Algeria and Venezuela.

MP Hakim al-Zamili, a member of the security and defense committee in the Iraqi parliament, told Azzaman that the Russian arms deal, signed by the Iraqi prime minister during his visit to Moscow, includes the purchase of anti-aircraft missiles and radar systems that will be installed in the Kurdistan region to address violations by Turkish aircraft of Iraqi airspace as part of their operations against the Kurdistan Workers' Party (PKK), which is carrying out military operations against the Turkish army from and through Iraqi territory.

UAE may Join Turkey Nuclear Power Plant Project

AFP

The United Arab Emirates could join a project to build Turkey's second nuclear power plant if South Korea is involved, Turkish energy minister said today.

"Officials from the United Arab Emirates said they could be a partner in the project if South Korea undertakes the building of the nuclear power plant plant," in northern Turkey, Taner Yıldız was quoted as saying by Anatolia news agency.

The government plans to build three nuclear power plants within five years in hopes of preventing a possible energy shortage and reducing dependence on foreign energy supplies.

Turkey struck a deal with Russia in 2010 to build the country's first power plant at Akkuyu in the southern Mersin province.

The government plans to build a second reactor in northern Turkey, near the Black Sea city of Sinop. But it has not yet announced a location for a third reactor.

Ankara is negotiating with a number of countries including South Korea, China and Japan for the second power plant

Israel's Natural Gas Challenges

Simon HENDERSON*        The Washington Institute    PolicyWatch 1978

A top-level Israeli government committee has produced a blueprint for exploitation of substantial natural gas reserves, but solutions must still be devised for a range of technical, commercial, and political problems.

In October 2011, following the discovery of large quantities of natural gas off Israel's Mediterranean coast, Prime Minister Binyamin Netanyahu appointed an interministerial committee to formulate policies for development of the new resources. Last week, the so-called Zemach Committee -- after chair Shaul Zemach, director-general of the Ministry of Energy and Water -- offered its recommendations. The panel's mandate was to offer suggestions on ensuring Israel's energy security, facilitating competition in its emerging domestic natural gas market, leveraging the environmental benefits of natural gas compared with other fuels, and maximizing the economic and political benefits.

BACKGROUND

Natural gas was first found in Israel's waters in 1999, when the Noa field was discovered off the coast of Ashdod. It was judged too small for commercial development, but in 2000, the Mari-B field was found nearby and has been supplying gas to Israeli power plants since 2004. In addition, Egypt began exporting gas to Israel in 2008, though it canceled that contract earlier this year after the pipeline was repeatedly sabotaged in Sinai. In January 2009, the Tamar field was discovered eighty miles off Haifa, with enough gas to supply Israel's domestic needs for fifteen years. And in December 2010, an even larger discovery was made in the Leviathan field west of Tamar. Although its full size has yet to be confirmed by further exploratory drilling, the finding led Israel to begin seeing itself as a significant gas exporter. Further small gas fields have since been discovered.

Kurdish oil trade with Turkey rising, more to come

REUTERS - Iraq    by Pec Mackey


Kurdistan is taking its first steps towards gaining independence from Baghdad in the sale of its oil and gas with a convoy of trucks taking the condensate liquid fuel bi-products of a remote gas field directly into Turkey.

At least 15 trucks a day are loading up with high quality condensate at Khor Mor's gas plant and then trundling down a bumpy road to start the two-day journey to Mersin on the Turkish Mediterranean.
In return, Turkey is trucking back small quantities of diesel fuel and kerosene to use in the autonomous region's power plants.

"It's a very simple but symbolic start to direct oil trade between the Kurdistan Regional Government (KRG) and Turkey - and there will be more to come," said an official familiar with the barter-type operation between private companies.

"Neither side is thinking about stopping."

But Baghdad wants them to. It believes Iraq's central government has the sole right to export oil and gas produced throughout Iraq and says deliveries by truck from Kurdistan across the border into Turkey are illegal.

Ankara is meanwhile encouraging the swap, which kicked off with five tankers in July. And Turkish Energy Minister Taner Yildiz says the volume could gradually build up to 200 trucks a day - roughly 40,000 barrels per day (bpd).

Turkey’s energy dance

 
J. Berkshire Miller*    CNN

Surrounded by a sea of uncertainty, Turkey continues a sustained effort to bolster its ties with East Asia. Ankara has long established relations with the region’s key players, including China, Japan and South Korea. A historical lack of management of these key relationships, though, has led to Turkey underperforming in its attempts to brand itself in the region. At the same time, though, Turkey is facing considerable challenges and opportunities in its own geopolitical neighborhood.

The strategic topography of the Middle East remains dynamic and unpredictable, and the sovereign debt crisis in Europe risks jeopardizing Ankara’s significant interests in exporting and serving as a transit country to the continent. This region will always be Turkey’s backyard and the legacy of the Ottoman Empire allows a certain amount of exceptionalism – and sometimes isolation – when dealing with neighbors.

One area where Ankara is hoping to secure an agreement with Asia is through the development of its civil nuclear program. As Turkey’s economy and population have continued to grow, the government has remained committed to finding new energy sources to meet increased demand.

But complicating matters have been strained relations with Syria, Iran and the Kurdish region of Iraq. Nearly half of Turkey’s energy imports come in the form of gas, mainly from Russia and Iran. Gas from Iran makes up as much as 20 percent of Turkey’s total energy imports – a number that’s declining rapidly due to American pressure to isolate Tehran over its nuclear program.

Turkey: Is Ankara Going Ballistic?

Ballistic Missiles test fire

Yigal Schleifer    Eurasia.net

Although Turkey late last year indicated its concern about the threat of ballistic missiles by agreeing to host part of NATO's new missile defense shield, Ankara now appears to be moving past this defensive posture towards something more robust.

As Today's Zaman recently reported, officials in Ankara have said that Turkey will soon start developing its own ballistic missiles. From TZ's article:

According to information acquired by Today’s Zaman from sources within the Defense Ministry, Ankara will produce its own ballistic missile system to avert any threat directed against Turkish national security. The decision was taken in a recent meeting of the Defense Industry Executive Committee led by Prime Minister Recep Tayyip Erdoğan on July 17....

....Officials underlined that it is an imperative and necessity for Turkey to produce and develop such missiles to maintain its deterrent capability and to feel safe in an insecure environment. The Scientific and Technological Research Council of Turkey (TÜBİTAK) is now developing a missile called an SOM with a range of 300 kilometers. This will be a first step towards developing a ballistic missile with a range of 2,500 kilometers.

Turkey's New Role for Kurdish Oil Export

An oilfield, 10 kms south of the Iraqi Kurdish city of Arbil, 310 km north of Baghdad.

Nayla Razzouk & Brian Swint    Bloomberg 

Tony Hayward, the former chief executive officer at BP Plc (BP/), is now loading a fleet of as many as 500 trucks a day while he waits for a new pipeline to carry oil from his fields in northern Iraq.

Since joining Genel Energy Plc (GENL) last year, Hayward has pushed the semi-autonomous Kurds to finish building a link to neighboring Turkey so he can find buyers outside the local market. Kurdish contractor Kar Group said it has completed 23 percent of the first 48-mile (77-kilometer) section of the line north to the border, though Turkey hasn’t said publicly it will take the oil. 

Kurdish authorities, feuding with the central government over sharing oil revenue, plan in the next two years to complete the 175-mile export link that will start at a Genel-operated field and move as much as 1 million barrels a day, equal to a third of Iraq’s output now. Following Hayward into the region are Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX), bolstering the Kurdish plan to break Baghdad’s control of shipping crude from the landlocked territory that’s ruled itself since the U.S.-led invasion ousted Saddam Hussein in 2003. 

Turkey’s defense purchases to reach $8 billion by 2016

Umit ENGINSOY     Hürriyet Daily News

With large defense projects on the agenda, Turkey will spend $8 billion in defense purchases, the country’s procurement office forecasts. This nearly doubles the current volum.

Turkey will spend up to $8 billion in defense purchases as its exports will reach $2 billion in 2016, four years from now, according to a major estimation by the procurement agency, the Undersecretariat for Defense Industries (SSM).

The present figures are around half of that.

The expectations in the SSM’s updated 2012-2016 strategic program are realistic given the money Turkey would pay for expensive systems – such as the F-35s or the U-214 submarines from Germany – over the next few years, as well as the rapid increase in its exports mainly to Islamic countries, according to one defense analyst.

Turkey is in talks with four key foreign suppliers on a $4 billion Long Range Air and Missile Defense Systems project.

Iranian oil minister to meet with Turkish energy minister to discuss oil and gas trade.

REUTERS

Iran is expected to try to revive demand for its oil in Turkey, its biggest European customer, this week when, according to Turkish energy ministry officials, its oil minister is to meet with Turkish officials in Ankara.

Iranian oil minister Rostam Qasemi is expected to meet Turkish Energy Minister Taner Yildiz on Thursday to discuss supplying oil and gas to one of Europe's fastest growing economies, the officials said.

Tehran has struggled to find new buyers for its barrels after U.S. and European Union sanctions succeeded in halving Iran's global oil exports in the four months from February to June.

Non-EU Turkey, which imported around 200,000 barrels a day of Iranian crude in 2011, also sharply reduced shipments earlier this year to win a waiver from U.S. sanctions that allows it to continue purchasing Iranian crude through the second half of 2012.

Turkey soon to finalise $4 billion air defence procurement

Ümit ENGINSOY      Hürriyet Daily News

Turkey looks to quicken its pace in selecting a $4 billion air defense bid winner after fire from Syrian forces brought down one of its warplanes last week.

Turkey’s highest defense procurement body is expected to select the winner in a $4 billion competition to select the country’s first long-range anti-air and anti-missile defense systems soon, following the downing of a Turkish jet by Syria.

The Defense Industry Executive Committee, whose members include Prime Minister Recep Tayyip Erdoğan, Defense Minister İsmet Yılmaz, Chief of the Turkish General Staff Gen. Necdet Özel and procurement chief Murad Bayar, is set to meet in July. The meeting was expected on July 4, but it was later delayed indefinitely.

Competitors in Turkey’s long-range air-missile systems include U.S. partners Raytheon and Lockheed Martin with their Patriot-based system; Eurosam with its SAMP/T Aster 30; Russia’s Rosoboronexport, marketing the country’s S-300 and S-400 systems; and China’s CPMIEC (China Precision Machinery Import and Export Corporation), offering its HQ-9. Eurosam’s shareholders include MBDA – jointly owned by British BAE Systems, Italian Finmeccanica and pan-European EADS – and France’s Thales. These companies will work with Turkish partners.

The contest comes less than a month after a Turkish RF-4E reconnaissance fighter was shot down by Syria. The Syrian Foreign Ministry said the plane had been hit by a barrage of short-range anti-aircraft machine-gun fire, but Turkish officials said the attack did not bear the traces of anti-aircraft fire. They instead said it had no traces, suggesting that the aircraft might possibly have been hit by a Russian missile defense system. This was not confirmed.