U.A.E. eyes Iraqi power sector

ABU DHABI, United Arab Emirates, July 8 (UPI) -- Some $1.5 billion in ventures and acquisitions slated for the next six months will target the Iraqi power sector, the Abu Dhabi National Energy Co. said.

"We are looking at power plants around the country," said the company's Chief Executive Peter Barker-Homek. "There is a lot of kit in Iraq that just needs a confident operator and that's what we are planning to do this year."

The company said it would unleash minor investments totaling about $250 million in Iraq in the next few months, but would increase that amount as the security situation improved, Emirati daily Maktoob Business reports.

"The initial investment will be small but will grow," said Barker-Homek. "We will probably go after gas before we go after oil."

Most of Iraq still suffers from a lack of electricity, with most cities receiving only a few hours of power each day. The national power grid can produce around 11,000 megawatts, but the current level is about half of that.

On overall investments planned for the company, Baker-Homek said the global economic recession has created a climate where assets should be available at lowered costs on the market, but sellers have maintained higher prices as cash shortages loom.

Regardless, the company plans to take advantage of relatively low commodity prices to cut its overall costs.