Thread: Iraq/Dinar News until 5PM CST May 10,2007

Discounting Experts from the Iraqi Oil Law

10 May 2007 (Dar Al Hayat)

The Iraqi oil law was subjected to unprecedented criticism, questioning and objections. The last burst came from a plenary of experts and spe******ts who participated in the Amman oil experts seminar in Jordan on February 17 to discuss the pros and cons of the law.

Due to the extensive debate surrounding the issue, I decided to limit myself here to reviewing observations on the prevailing conditions that accompanied this law and the reasons that lead to these conditions.

The need for any given law normally stems from constitutional articles defining the law in question. Since a large number of these articles have been shrouded in vagueness, marred by contradictions, and even dominated by a rather outlandish logic that sought to discredit the intentions of the central government, the oil law sought to destabilize and undercut the natural role of the central government and, in some instances, contained proposals in favor of a part like Kurdistan over central Iraq in any future disputes between the interests of the two.

The law also sanctions contracts independently signed by Kurdistan with a number of oil companies in 1992 and guarantees the protection of these agreements against any revisions or substantial future amendments.

Three expert and competent teams deeply involved in the Iraqi oil affairs were initially tasked with preparing the first draft of the law. The aim of these experts was to resolve the constitutional conflicts arising from the mentioned articles, the practical operational requirements of the oil industry, and the need to protect Iraq's oil wealth.

This draft, however, was embroiled in the political arena and brought under the mercy of the wrangling and maneuvering of giant partisan entities, and just like what took place on the drafting of the resolution, pressures were applied and sides were taken, leading to considerable changes in key and central aspects of the decision-making process, which strangely enough took place while excluding the three-party team tasked with preparing the draft law, forcing one of these experts to publicly denounce the outcome of the first draft and the subsequent withdrawal of a second.

Since the law was mainly concerned with managing what is widely believed to be the region's second largest oil wealth, it progressed under the continued US interference and pressure represented by its various symbols of authority, the least of which came from the US envoy to Iraq as evident in the scores of public statements.

The progress toward the ratification of the law, particularly during recent weeks, was marred by unrelenting pressures on all sides aimed at accelerating the legislative process, which led to reducing the time allowed to debate the bill in the cabinet prior its approval to a few hours.

It was also remarkable that all this took place behind closed doors, as nothing related to the law was made available to the public, which would have engaged Non Governmental Organizations in these discussions.

What was even more dangerous was the exclusion of a broad cadre of oil experts who were behind the renaissance witnessed by the oil industry since the 1950s, which earned them the admiration and respect of the international oil circles for more than 40 years, preventing them from having any role in enriching the draft project with their observations and proposals.

Therefore, it would be reasonable to ask: why have more than 100 oil experts - each having spent at least 30, and sometimes even 40, years serving the oil industry in Iraq - been eliminated?

Despite these observations, I fully support Iraq's need for a law that adequately regulates the Iraqi energy sector and rescues it from the state of neglect and deterioration that has been ailing the Iraqi oil sector since the 1980s, and which can protect such wealth from technical abuse and economical pillaging.

The achievement of such patriotic goals calls for deliberation, transparency, and the all-inclusive participation of everyone.

Law number 80, passed in 1960, saved Iraq's oil resources from the greed and the exploitation of international oil monopolies, and was among the most important achievements of the July 14 Revolution. Therefore, we must prevent the return of these monopolies from between the nets of the occupation.

Interview: Iraq Kurd leader on oil law
By BEN LANDO


WASHINGTON, 10 May 2007 (UPI)

To Iraq's Kurdish leadership, the issue of how to apportion the third-largest pools of oil in the world is "a make-or-break deal" for the country as a whole, a top official told United Press International.
"The oil issue for us is a red line. It will signify our participation in Iraq or not," Qubad Talabani, son of Iraqi President Jalal Talabani and the Kurdistan Regional Government's representative to the United States, said in an interview from his Washington office.

The KRG and the central Iraqi government reached a deal in February on the hydrocarbons framework -- though not on other key companion bills -- and a self-imposed deadline of late May seemed possible to meet.

But the Iraqi Oil Ministry, at a meeting it set up last month in Dubai, in the United Arab Emirates, with other Iraqi oil experts and politicians, unveiled the annexes to the hydrocarbons law -- its list distributing control of oil fields between central and KRG control -- and a law re-establishing the Iraq National Oil Co., which Kurdish leadership automatically rejected.

"This sets us back to square one, a point that's unacceptable to us. We're trying to modernize Iraq, build a new Iraq, built on new foundations, new policies. The symbol of this new Iraq will be how it manages its oil infrastructure," Talabani said. "And if people want to revert back to Saddam-era policies of a state-controlled oil sector with no accountability, with no accountability to the Parliament or the people of the country, with no oversight except from by one or two, then I'm sorry, that is not the Iraq that the Kurds bought into. That is not the Iraq that the Kurds would want to be part of."

"If a centralized oil regime is imposed on us, we will not participate in the state of Iraq," Talabani said. "And we have to make it absolutely clear to our friends in Washington, to our brothers in Baghdad, this is a make-or-break deal for Iraq."

He said Iraq needs to embrace the free market and break free from the nationalized mindset. Numerous oil and Iraqi experts as well as key Iraq oil union leaders have told UPI that Iraqis see nationalized oil with pride. And opponents of the oil law also say it gives too much to foreign companies.

The Kurds, however, have little to show from the Saddam Hussein era, aside from persecution, death and little investment in its economy or oil sector. They gained autonomy in 1991 and, governing an autonomous three-province region now, are prospering. Airplanes fly internationally from the airport in Irbil, Iraqi Kurdistan's capital. Violence in the region is relatively nil compared with the rest of the country, though the first major attack in more than four years killed 14 people in Irbil Wednesday. Despite lacking the law, the KRG has signed multiple deals with foreign companies to develop its oil and natural-gas sector.

Iraq only produces about 2 million barrels per day. With investment -- domestic or foreign -- Iraq's 115 billion barrels in reserves could handle much higher output.

Many of the arguments over the law are related to the 2005 constitution. It was written vaguely to garner support. Now there is a dispute as to which oil fields are to be governed by the central government and which by the regions.

Tariq Shafiq, an Iraq oil expert now living in Amman, Jordan, and drafter of the original law last summer, said the Iraq National Oil Co. should be independent of the Oil Ministry, and regions could choose the company's board of directors. (Shafiq has since come out against the law, saying it has been altered too much in negotiations.) He said Iraq needs a central strategy for the best management of the country's oil.

Talabani said the KRG favors an INOC limited in scope and open to foreign investment, and says the current law gives INOC control over 93 percent of Iraq's oil. "This will hamper needed investment," he said.

"It's only by bringing in the biggest and the best from the international community, to partner with, not to steal, but to partner with the Iraqi government, can we develop Iraq's oil accordingly," Talabani said. "And there's a worrying unwillingness to act under a free-market-style concept here. It won't go through. It won't go through the Parliament this way. There will be too many people opposed to it."

Other bills needing to be passed include a reorganization of the Oil Ministry and the revenue-sharing law. Talabani said there were lingering fears Kurds will again be deprived of funds and investment.

"We want to create an automatic payment mechanism where it doesn't rely on the goodwill of the finance minister or the oil minister for the regions to get their fair share," he said.

"Trust is lacking in Iraq, and unfortunately it's been Iraq's miserable history that has created this system, this society that mistrusts each other, which is why something as critical as oil can be a trust-building measure," Talabani said. "By putting in place mechanisms and institutions that can ensure that I will not get robbed again, that my resources will not be used against me again, will eventually over time build my trust."

Iraq takes steps to settle YTL 2 bln debt with Turkish CB
10 May 2007 (Zaman)

The Iraqi government has taken a constructive step in efforts to settle its YTL 2 billion ($1.5 billion) in debt to Turkey's Central Bank, nominating US accounting and consulting firm Ernst & Young to negotiate its amount outstanding with the Turkish Treasury. As the central bank's biggest partner, the Treasury is dealing with the collection problem in the name of the bank and has also enlisted the help of the UN towards this goal.

The debt began accumulating before the US invaded Iraq in 1991. In accordance with commercial agreements between the two countries before the first Gulf war, the Turkish Central Bank was proceeding with payments to Turkish exporters and contractors that do business in Iraq. The funds expended were later collected from the Iraqi government. The system was working smoothly until it broke down after the US invaded Iraq 16 years ago. Iraq has been unable to pay the remaining debt since then due to internal disorder created after the war.

The central bank’s latest activity report for 2006 once more included the amount owing from Iraq in its “bad and irrecoverable debts” item. Of the bank’s YTL 2 billion in receivables, YTL 1.83 billion stems from notes, while the remainder originates from uncollected loans that resulted from the central bank providing funds for Enka Construction for the Bekhme Dam project that the Iraqi government couldn’t cover. The amount of this loan was YTL 130.12 million.

The Iraqis’ debt to the Turkish Central Bank is equal to 31 percent of the bank’s annual expenditures. The central bank’s spending climbed to YTL 6.25 billion in 2006, a 52.6 percent increase from YTL 4.1 billion in 2005. Interest payments, as an item of expenditure, were YTL 3.63 billion, whereas non-interest expenditures were YTL 2.24 billion.

Payroll expenses amounted to YTL 270 million, and the other spending was YTL 107.42 million. Although the bank is making allowances to hedge the risk for bad debts, it has not made any provision for receivables from Iraq since 2002, when it adopted international accounting standards.

Iraq owes $900 million to BOTAق,

The state-owned Turkish Pipeline Company (BOTAق) is also owed a significant sum by Iraq, totaling as much as $900 million. This debt stems from transportation costs through the Kirkuk-Yumurtal‎k oil pipeline.

BOTAق officials say they are waiting for the Iraqi government to settle its debt with the government since there is no appropriate authority to deal with the problem. They claim that the current situation of BOTAق, which is in serious financial trouble due to uncollected receivables from its domestic customers, the biggest of which is the Ankara Metropolitan Municipality, will be alleviated if they can obtain the money owing from Iraq.

The oil unions have delayed their strike scheduled for today, Thursday May 10, 2007.

They are opposed to the amount of oil revenues allegedly going to foreign companies under the proposed HCL and certain worker conditions.

The oil ministry has negotiated time to give them a response.


( the union has been upset since early meetings when they were not invited to help prepare the draft)

Petrol crisis in Nasiriyah

(صوت العراق) - 10-05-2007

(Voice of Iraq) - 10-05-2007

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Petrol crisis in Nasiriyah : punishing a number of stations providing fuel

:

Nasiriyah News Network / Mortada Hamid :

Suffocating mobilization stations in Nasiriyah fuel queues of cars to the scarcity of gasoline and fuel has conducted News Network Nasiriyah a meeting with Engineer Alaa Hassan Energy Commission official in the governorate to inquire about this matter Faith (that

The product, which hit Dhi Qar comes through the pipeline route from Basra to Nasiriyah, and Nasiriyah are also pumping station product to the rest of the governorates in the north and that this pipeline is the same product that is transferred kerosine, products, gasoline and petroleum products, and scarcity, which is obtained for the existence of a technical malfunction occurred in liquidator Dhi Qar and why stocks sufficient for the survival of Dhi Qar There has been enough stocks of petrol, and the number of stations has not received its share in Alonguet scheduled due to failure of the product and thus the death of these stations from the south, where the distribution of the delay in receiving the The violation of the causes of the crisis is also that the pumping of kerosine extended to additional day because of delays in the receipt of the Karkh Baghdad as a result of certain security conditions .. And God today (Wednesday) morning arrived processing product and solves this problem) ..

Translated version of http://www.sotaliraq.com/

Iraqi Parliament receives names of the new ministers in the government of Maliki

10:16 10 / 05 / 2007 10:16 10 / 05 / 2007

PUKmedia:PUKmedia :

The first deputy chairman of the Iraqi parliament, Khaled al-Attiyah yesterday that the Board received from the Iraqi Council of Ministers names of the new ministers who will replace ministers bloc chest six and Minister of Justice, who announced their withdrawal from the government formation earlier.

Al-Attiya said in a statement to Agence France-Presse that the House of Representatives recognizes the names of the ministers who would replace the ministers bloc chest and the Minister of Justice. He added that the House of Representatives will vote today, Thursday, on these names

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The Ministry of Commerce studying three options for activating the work of central markets

(صوت العراق) - 10-05-2007

(Voice of Iraq) - 10-05-2007

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Republic of Iraq
The Cabinet-National Information Center
Media Relations

Press Release

A press / Press Release

The Ministry of Commerce studying three options for activating the work of the most important markets of central investment

The Trade Minister Abdul Hassan farmer Sudanese ministry was considering three options for the activation of markets and the development of the central work in the coming period.

He added during a meeting with Sudanese company tables of the central markets that the coming period will witness a number of actions to revitalize the central markets after the agreement on the options will be introduced and foremost Tagiradh markets or participation with the private sector in the reconstruction work or selling part of these markets in places elected, He added that he had formed a committee of a number of experts and spe******ts to examine the reality of the central market in terms of potential and possibility in the location and operation Incautiously after granting of the company's frozen amounts in the Ministry of Finance and release material in the stores grapevines, which reaches such ***** very large sums.

The minister also coordinating with the security agencies of the Ministries of Defense, Interior and the awakening of Anbar on the transfer of various materials in the stores, which may help citizens access to such material, which possesses good qualities and prices are very appropriate, pointing out that solidarity with the staff of central markets those suffering from difficulty in getting paid by the company's financial situation, which relies on a system of self-financing affirming that the right to obtain these salaries, it seeks through emphasis on the Ministry of Finance launched the amounts frozen or tables by urging the company to activate its activities in order to reap profits may The money used by company personnel.

The minister stressed the importance that the company learned from decades past and the Memorandum of Understanding re-activated in order to obtain money to support the work of the company in markets in Baghdad and other governorates.

Translated version of http://www.sotaliraq.com/

Originally Posted by inquisitive1

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Rafidain Bank is exempt instruments belonging to grant families

(صوت العراق) - 10-05-2007

(Voice of Iraq) - 10-05-2007

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Republic of Iraq
The Cabinet-National Information Center
Media Relations

Press Release

A press / Press Release

Rafidain Bank is exempt instruments belonging to grant displaced families of the cost of the deposit of their instruments off

The Rafidain Bank exempt instruments belonging to grant displaced families of the cost of deposit of the instruments of setoff.

An official source at the bank that this initiative comes from the bank's keenness to provide better banking services for citizens and help families to overcome adversity and difficult circumstances, pointing out that the bank is trying to raise the level of banking work, where maintenance work for its branches in the fight and Building Branch denominator and Haifa Branch Karradat Maryam, as well pushing for bank personnel in training courses to increase their competence with some cadres participated in the analysis of the budget, which was brought by the training center of financial and accounting as well as participate in the session on money laundering set up by the Iraqi Central Bank.

Translated version of http://www.sotaliraq.com/

The Oil Ministry denies talk in some media

(صوت العراق) - 10-05-2007

(Voice of Iraq) - 10-05-2007

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Republic of Iraq
The Cabinet-National Information Center
Media Relations

Press Release

A press / Press Release

The Oil Ministry denies talk in some media from the control of some terrorist elements
The field east of Baghdad

Undersecretary of the ministry said Ahmed Chandler that field east of Baghdad still works has not been subjected to any kind of pause and Matnakalth media from the control of terrorist elements on the field Baselessness unfounded and that the information cited false and inaccurate and that the production of the field than the quantities Banned station Jerusalem.

The agent that the ministry will provide stakeholders weekly schedule shows the quantities processed for electric power stations throughout the country.

He added that the ministry officials appealed to the Ministry of Electricity punctuality in the transfer of information disruptive and distort facts ... Stressing that the ministry is keen to provide oil derivatives from production and import foreign refineries despite the challenges and sabotage operations and terrorist assault on the oil sector.

Translated version of http://www.sotaliraq.com/