Iraq protests threaten to ‘paralyze’ oil industry in Basra

Arab News
July 11, 2018

Baghdad, Jul 11: Thousands of protesting tribesmen in southern Iraq have threatened to “paralyze” oil production if the hundreds of companies running the oil fields fail to employ them.

Tensions in Basra escalated after police opened fire to disperse protesters who had blocked the road leading to West Qurna, home of the largest oil fields in Iraq, on Sunday.

One demonstrator was killed and three wounded, medics and police said.

Security has been stepped up and international oil companies have moved senior staff members amid fears that the protests could escalate into rioting.

Several influential tribes, including Albu-Mansour, the tribe of the protester who died, demanded police hand over the officer who fired the fatal shot, and the commander who ordered him to shoot, or to prosecute them.

As the Tuesday deadline approached, thousands more tribesmen joined the protest to block the road. Most oil company employees operating in West Qurna were not able to reach their work, sources told.

On Tuesday tribal leaders in Basra called on the oil companies to dismiss all staff not born in the area, including foreigners and Iraqis, and replace them with young workers from Basra.

Iraqi security forces in the city have been on high alert and dozens of additional troops have been deployed in the region “to control the consequences,” a police officer told Arab News.

The protesters have been demanding that at least 80 percent of the jobs offered by the oil companies should be guaranteed to the people of Basra. They are also calling for improvements to basic services in the city, such as the water supply which has become highly saline in recent years due to a drop in river levels.

“We want to force the government to listen to our demands and respond to them,” one of the demonstration organizers told Arab News. “We will paralyze the movement of oil companies.”

The organizer added that the oil companies are like “the hand that hurts the government, so we will twist it.”

In Basra about 800 foreign, Arab and local companies have Iraqi government approval to work in the oil sector.

Most of the companies have had to pay hundreds of thousands of dollars in bribes, commissions and compensation tribal heads who dominate local government in the province.

In April, Arab News reported how the murky web of bribes and corruption was fueling a surge in violence on Basra’s streets.

Villagers living near the oil fields do not see any of the compensation paid by the government and oil companies to the influential local sheikhs of their tribes.

Anger often boils over with demonstrations and road blocks near the oil fields, forcing the companies to offer concessions including jobs as guards or drivers.

“Those youth (the demonstrators) believe that they deserve to work in these companies more than others who come from other areas or provinces,” Sheikh Ra’ad Al-Furaiji, the head of the Tribal Council in Basra, told Arab News.

“They are very poor, uneducated and have no chance of getting jobs, but they have families that must be fed.

“They have been watching their peers who come from other areas and provinces to work in their lands and hearing about the privileges that they have enjoyed, so they are very upset.”

Devastated by three decades of conflicts, Iraq suffers from rampant corruption and a lack of strategic development policies, particularly in the provinces.

Despite its vast oil reserves, many Iraqis suffer from a lack of basic services, including clean drinking water and electricity, as well as widespread poverty and high unemployment.

Matters worsened as a result of the large fiscal deficit that the Iraqi government faced in 2014 as a result of the sharp drop in global oil prices and the high cost of the war with Daesh.

Basra, the backbone of the oil-dependent Iraqi economy, suffers from some of the worst basic services, despite producing 3.5 million barrels of oil per day — roughly 70 percent of Iraq’s national output.

Sunday’s demonstration was initially sparked by widespread electricity shortages in the south after Iran suspended a supply line. The move was to put pressure on the Iraqi government over payments which have become more difficult because of US sanctions against Tehran.

But the protests quickly turned into demonstrations in attempt to force the oil companies into providing jobs for locals.

“The government has to revise its contracts with them (the oil companies) to force them to provide jobs and services for the local communities,” Sheikh Ya’arab Al-Mohammadawi, the chairman of the Dispute Resolution Committee in Basra Provincial Council, told Arab News.

“These companies have turned out to be a tool to boost the disagreements and conflicts between the tribes because of the compensation payments.”

Senior foreign employees of Exxon Mobile, PetroChina and Lukoil have been moved from the West Qurna fields to Rumaila further south “as riots are expected to break out at any minute,” officials working close to the oil companies told Arab News.

Protesters also set up pavilions outside local government buildings in Medaina, in northern Basra.

Sheikh Dhurgham Al-Maliki, head of Bani Malik tribe, one of the most influential in Basra, said Iraq’s leaders had underestimated Basra and its people.

“The government knows the strength of the tribes of Basra and their courage. If things get out of control, everything will be burned.”

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News Network
January 12,2020

Dubai, Jan 12: Saudi Arabian oil giant Aramco announced Sunday that its initial public offering raised a record $29.4 billion, a figure higher than previously announced, after the company used a so-called "greenshoe option" to sell millions more shares to meet investor demand.

The company said that the sale of an additional 450 million shares took place during the initial public offering process.

The oil and gas company, which is majority owned by the state, began publicly trading on the local Saudi Tadawul exchange on December 11. It hit hit upwards of $10 a share on the second day of trading. This gave Aramco a market capitalization of $2 trillion, making it comfortably the world's most valuable company.

Aramco's additional sales mean the company has publicly floated 1.7% of its shares. It's IPO, even before the added sales, was the world's largest ever.

The shares sold in the over-allotment option "had been allocated to investors during the book-building process and therefore, no additional shares are being offered into the market today," Aramco said.

Company shares traded down on Sunday, dipping to around 34.7 riyals, or $9.25 a share, amid heightened tensions in the Persian Gulf between Iran and the United States. Aramco was a target of rising tensions over the summer when a missile and drone attack, which Saudi Arabia and the US blame on Iran, temporarily halved its production.

Sunday's trading figures value Aramco at $1.85 trillion, still well ahead of Apple, the second largest company in the world after Aramco, but below the $2 trillion mark sought by Crown Prince Mohammed bin Salman.

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Agencies
February 27,2020

Riyadh, Feb 27: Saudi Arabia on Thursday halted travel to the holiest sites in Islam over fears about a new viral epidemic just months ahead of the annual hajj pilgrimage, a move coming as the Mideast has over 220 confirmed cases of the illness.

The extraordinary decision by Saudi Arabia stops foreigners from reaching the holy city of Mecca and the Kaaba, the cube-shaped structure the world's 1.8 billion Muslims pray toward five times a day. It also said travel was suspended to Prophet Muhammad's mosque in Medina.

The decision showed the worry about the outbreak potentially spreading into Saudi Arabia, whose oil-rich monarchy stakes its legitimacy on protecting Islam's holy sites. The epicenter in the Mideast's most-affected country, Iran, appears to be in the holy Shiite city of Qom, where a shrine there sees the faithful reach out to kiss and touch it in reverence.

"Saudi Arabia renews its support for all international measures to limit the spread of this virus, and urges its citizens to exercise caution before traveling to countries experiencing coronavirus outbreaks," the Saudi Foreign Ministry said in a statement announcing the decision.

"We ask God Almighty to spare all humanity from all harm." Disease outbreaks always have been a concern surrounding the hajj, required of all able-bodied Muslims once in their life, especially as pilgrims come from all over the world.

The earliest recorded outbreak came in 632 as pilgrims fought off malaria. A cholera outbreak in 1821, for instance, killed an estimated 20,000 pilgrims. Another cholera outbreak in 1865 killed 15,000 pilgrims and then spread worldwide.

More recently, Saudi Arabia faced a danger from a related coronavirus that caused Middle East respiratory syndrome, or MERS. The kingdom increased its public health measures in 2012 and 2013, though no outbreak occurred.

While millions attend the 10-day hajj, this year set for late July into early August, millions more come during the rest of the year to the holy sites in the kingdom.

"It is unprecedented, at least in recent times, but given the worldwide spread of the virus and the global nature of the umrah, it makes sense from a public health and safety point of view," said Kristian Ulrichsen, a research fellow at the James A Baker III Institute for Public Policy at Rice University. "Especially since the Iranian example illustrates how a religious crossroads can so quickly amplify the spread and reach of the virus." The virus that causes the illness named COVID-19 has infected more than 80,000 people globally, mainly in China. The hardest-hit nation in the Mideast is Iran, where Health Ministry spokesman Kianoush Jahanpour said 19 people have died among 139 confirmed cases.

Experts are concerned Iran may be underreporting cases and deaths, given the illness's rapid spread from Iran across the Persian Gulf. For example, Iran still has not confirmed any cases in Mashhad, even though a number of cases reported in Kuwait are linked to the Iranian city.

In Bahrain, which confirmed 33 cases as of Thursday morning, authorities halted all flights to Iraq and Lebanon. It separately extended a 48-hour ban overflights from Dubai and Sharjah in the United Arab Emirates, through which infected travellers reached the island kingdom off the coast of Saudi Arabia.

Iranian President Hassan Rouhani said there were no immediate plans to quarantine cities but acknowledged it may take "one, two or three weeks” to get control of the virus in Iran.

As Iran's 80 million people find themselves increasingly isolated in the region by the outbreak, the country's sanctions-battered economy saw its currency slump to its lowest level against the US dollar in a year on Wednesday.

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News Network
April 28,2020

Dubai, Apr 28: Riyadh municipality has announced 13 requirements to restore commercial activity in malls starting Wednesday (April 29), in accordance with the government’s coronavirus precautionary measures.

The requirements include: the continued closure of all entertainment and playing areas inside malls, and not allowing the entry of children under the age of 15.

The municipality requires all malls to ensure the availability of medical examination and sterilization teams to measure the temperature of all individuals entering the mall at all entrances throughout opening hours, prevent any person with a temperature exceeding 38 degrees Celsius from entering, remove all chairs and benches in the corridors, and provide masks and gloves for visitors at the entrances.

All malls are to have security personnel stationed at all entrances to ensure that visitors are wearing masks.

The municipality also requires all malls to sterilize the entire facility every 24 hours, allocate rooms for medical isolation when there is any suspicion of an individual being infected with COVID-19, ensure the presence of a sufficient number of security personnel, and carry out regular rounds to verify full compliance, and suspend the valet service.

It also called for malls to put up explanatory signs of the guidelines to ensure that everyone understands the precautionary measures.

Malls should rely on the use of escalators and stairs for movement between floors, and in the event they are not available, only two people are allowed to ride the elevator at a time.

Revised curfew

Saudi Arabia had revised on April 21 its coronavirus curfew timings for the holy month of Ramadan, allowing residents in all areas and cities not currently under a 24-horu lockdown to go out between 9 a.m. and 5 p.m.

However, areas under a complete lockdown will only be allowed to go out for essential needs, such as grocery shopping or medical visits, between the hours of 9 a.m. and 5 p.m. Residents in these areas must stay within their neighborhoods

A 24-hour lockdown was previously imposed on the cities of Riyadh, Tabuk, Dammam, Dhahran, and Hofuf and throughout the governorates of Jeddah, Taif, Qatif, and Khobar.

The government had imposed a full lockdown on the holy cities of Makkah and Madinah as well. Other cities and governorates had a curfew implemented from 3 p.m. to 6 a.m. daily.

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