Power Machines Wins Iraq Deal.

(From The Moscow Times)

Power Machines, the country's biggest energy machinery producer, announced Thursday that it would build a 26.8-megawatt hydrostation in northern Iraq by July 2010, raising hopes for other Russian firms looking to re-enter the country.

Financial terms for the deal would not be disclosed, Power Machines said in a statement, although an analyst estimated that it was worth $16 million to $18 million. Originally signed in 2001, the contract was suspended shortly after U.S.-led troops toppled Saddam Hussein in 2003.

"Iraq is rich with hydro- and thermal-energy resources and has a huge potential," Farid Dyomin, head of Power Machine's department for the Middle East and Africa, said by telephone. "Experts estimate that Iraq now plans to build 3,000 megawatts [of capacity] per year, and we want to take an active role."

Construction of the Al-Adayim station marks one of Russia's first steps back into Iraq where it had a significant presence, particularly in the oil and gas sector before the invasion.

In March, then-President Vladimir Putin called on Iraq to welcome investment from Russian firms the same day LUKoil chief executive Vagit Alekperov traveled to Baghdad for talks on reviving a $3.7 billion prewar concession for the West-Qurna-2 field.

Last month, LUKoil and Gazprom were among 35 energy majors the Iraqi Oil Ministry shortlisted as eligible to submit tenders to develop six of the country's rich oil fields and two gas fields.