Thread: Iraq/Dinar News Until 5/31/2007 7:15 PM CST..

Is the story of ‘massive untapped oil reserves’ fact or fictions?



By Sharif Ali



Azzaman, May 29, 2007



The restive Province of Anbar grabbed the headlines of world media recently. But the news, fortunately, was not related to the ongoing violence and ferocious resistance of U.S. occupation the province has been reputed for in the past four years.



Suddenly, world media focused their attention on significant oil reserves of 100 billion barrels. And where? In the western desert and specifically in Ramadi Province.



The reports ostensibly left no doubt that the province sits on gigantic oil fields which, if exploited, would place Iraq ahead of Saudi Arabia as he world’s top oil producer.



The reports were based on a study by energy analysts I.H.S.



The figures took Iraqi oil experts and analysts by surprise and they have their own reasons to be suspicious of the estimates and the timing of their announcement.



The Province of Anbar is Iraq’s largest, occupying 31.1 percent of Iraq’s area of 434,934 square kilometers.



The province, the scourge of U.S. invasion troops, is inhabited by 1.3 million people and more than 95 percent of its land is barren desert.



Iraq Petroleum Company (IPC) carried out seismic surveys of the province and dug numerous oil wells between 1955 and 1061.



The National oil Company made its own surveys which continued for over two decades and only came to a halt after the imposition of punitive U.N. trade sanctions in 1990.



During the same period major oil firms like ExxonMobil, Japex (Japan Petroleum Exploration), Ascom, Petronas and Repsol made extensive surveys through joint agreements signed with the Ministry of Oil.



The reports of all these surveys, which are part of the Oil Ministry’s archives, were discouraging and could not come up with categorical results that the western desert, that is the area falling within the provincial borders of Anbar, holds substantial oil or gas reserves.



That conclusion was substantiated by an article in MEES, the authoritative Middle East Economic Survey, in a report about the results of 2004 surveys by American geological groups which said the area’s oil reserves run between half a billion and one billion and a half of proven reserves.



Brushing all these findings aside, the U.S. energy analysts I.H.S., for reasons yet to be uncovered, reveals surprising and shocking figures of estimates totaling 100 billion barrels.



Who are we to believe? Is it logical and sane to doubt the surveys by IPC, the National Oil Company, giant foreign oil firms and recent surveys by U.S. groups and believe the I.H.S?



I.H.S. report smacks of politicization. It was written and made public with the aim of pacifying the violent and restive province by telling its rebellious population it is better for them to lay down their arms and make use of their oil riches under the new oil law and federal system.



But the powers that inspired the I.H.S. report forget that one major reason for the Iraqis frustration and disillusionment is the oil law in its current form and the federal system.



Whatever oil is there in Iraq belongs to Iraqis as a nation the fruits of which will have to be reaped by the country at large and not its federated provinces.



Note: The writer is an expert in Iraqi oil reserves and served as a director-general at the Oil Ministry.

Security in northern Iraq aids economic opportunities
Tuesday, 29 May 2007

A view from the tenth floor of the new Naz City Apartments in Irbil, located near the new state-of-the-art convention center and Irbil International Airport. A group of international investors traveled the stable northern region of Iraq and continued to meet with local business leaders, members of chambers of commerce and key government officials as some arranged for return trips to begin projects Friday. U.S. Army photo by Maj. Juanita Chang, 5th Mobile Public Affairs Detachment.IRBIL — International businessmen representing more than a dozen companies continued traveling through northern Iraq in search of economic opportunities Friday.
In northern Iraq economic promises have boosted confidence in the population, international businessmen and investment potential.

The group traveled the stable northern region of Iraq and met with local business leaders, members of chambers of commerce and key government officials as some arranged for return trips to begin projects.

“I was very impressed with the enthusiasm, zeal and passion of the Kurdish people and their government,” said Subhas Sircar, regional vice president of Marine Middle East, Mediterranean and South Asia Insurance Company Ltd.

A lot of work needs to be done in a short amount of time, but we look forward to supporting them in their endeavors and being partners in their progress, Sircar added.

Irbil is the capital of the Kurdish region, Iraq’s fourth largest city and was seen by investors as a secure and economic hotspot with a 400-store mall, world-class hotels, amusement parks and a zoo.

“Projects such as this are our response to the destructive activities of terrorists,” said Nechervan Barzani, prime minister of the Kurdish Regional Government. “Whatever they do, the terrorists cannot stop our progress.”

Along with the economic boom in the area, an international airport with high level security measures lands flights daily with direct routes to popular hubs such as Vienna, Stockholm, Amman, Dubai and Amsterdam.

According to the businessmen, a huge potential for investment dwells in Iraq’s northern region.

Some apartments in the area were selling at $130,000 per apartment.

The business executives also stopped in Dahuk and Salaymaniyah, Iraq, to be greeted by provincial governors and given a tour of their respective cities in hopes of luring investors to the area.

The Iraqis in this northern region have come together and worked as a unified group to achieve these common goals. Leaders of business and industry praised the KRG for setting the conditions for future prosperity.

(U.S. Army story by Maj. Juanita Chang, 5th Mobile Public Affairs Detachment

US Army to hand over three Kurdish Provinces

Tuesday, May 29, 2007 07:54 GMT

The US Military will hand over to the Kurdish regional government security command in three Kurdish Provinces among which Arbil, Sulaimaniya and Dahouk. According to a US military statement, the Kurdish regional government will organize a ceremony to celebrate the handover of security in order to confirm the Iraqi government’s control on the whole region.






For his part, the Kurdih military spokesman Jabbar Yuwar noted that the security responsibility in Kurdistan will be officially transferred to the Peshmerga Forces which operate under the authority of the regional government.
It is to be mentioned that by handing over the security of the three Kurdish Provinces, the US Forces would have handed over seven Provinces out of eighteen.
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© 2007 Alsumaria Iraqi Satellite Network

Gas prices overwhelming oil-rich Iraq
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May 29, 2007

BAGHDAD - Abu Mohammed is a slight man without prospects of beefing up. His 8-year-old son is barely tall enough to lean his skinny frame against the rear of their old car. But two or three times a week, they push the rusty vehicle up a hill to buy gasoline they can scarcely afford.

Mohammed drives a gypsy cab around the capital. If he makes $20 in a day, $18 of that - 23,000 Iraqi dinars - will go for gas. "If God provides," he said, "I might have some petrol left for my generator."

In this country, with some of the world's greatest oil reserves, people have little sympathy for Americans cringing at $3-a-gallon gasoline. They're too busy trying to find their own gas and too worried about the cost.

At a licensed station, a gallon of gas - probably watered down - goes for $1.22. That's 10 times what it cost before the war, and Iraqis make far less money than Americans do. The price is certain to climb as summer sets in. For those unwilling or unable to endure the all-day gas lines in blistering heat, the black market offers a quicker fill-up - for three times the price.

The result overwhelms a bus system that ferries cash-strapped commuters and prompts the assessment of each trip around the bomb-and-bullet-riddled city not just in terms of safety but also affordability. A schoolteacher, for instance, might fork over half her $130 monthly salary at the fuel pump. That gets her just enough gas for short trips around town and some fuel for the family generator, which provides a few extra hours of electricity a night.

Oil and Gas Journal estimates Iraq's oil reserves at about 115 billion barrels - third in the world behind Saudi Arabia and Canada. Because much of the country remains unexplored for its petroleum potential, some analysts think another 100 billion barrels might be pumped from the Iraqi landscape eventually.

Production peaked in 1979 at 3.7 million barrels a day. That dropped dramatically during the next several decades as Iraq became a pariah on the world stage: the Iran-Iraq war, Saddam Hussein's invasion of Kuwait, the first Persian Gulf War, the subsequent United Nations sanctions and the U.S.-led invasion in 2003. Today, Iraq's oil output hovers at about 2 million barrels a day.

A U.S. Government Accountability Office report recently estimated that 100,000 to 300,000 barrels a day have been unaccounted for during the past four years, translating to a daily loss of as much as $15 million. The losses were blamed on corruption and smuggling. All that oil appears to have been siphoned to somewhere other than the streets of Baghdad.

When Mazin Mehdi, a 33-year-old father of two, cruises the boulevards looking for cab fares, particularly in the morning, he feels he's doing something to keep people safer. But he also keeps an eye trained on the gas stations, hoping to find a spot where the wait might be only five hours.

Iranian banks for Iraq

29 May 2007 (AME Info FZ LLC)

Iran's Bank Sepah has received approval from the Iraqi central bank to set up a branch in Baghdad, reported the Iran Daily.

A site for the bank has been selected and construction will commence shortly.

Meanwhile, administrative procedures regarding the launch of a branch of the Bank Melli Iran are almost complete and the bank could commence operations this week.

Visa International's services may serve to create a healthier economic environment in Iraq

Visa International, recently took part in the IZDIHAR Iraq Private Sector Growth and Employment Generation Banking and Finance Conference.


Jordan, 28 May 2007 (AME Info FZ LLC)

Visa International, recently took part in the IZDIHAR Iraq Private Sector Growth and Employment Generation Banking and Finance Conference.

The event, organized by USAID, was held last month at the Amman Intercontinental Hotel.

Mr. Naser Abu Ghazaleh, Visa International's Regional Manager for the Levant, represented the organization at the two day event. As part of his participation in the event's proceedings, he gave a ten minute presentation about the benefits that electronic payment systems present to the Iraqi people and the products that are most suitable for the current financial and security situations in Iraq.

'Despite the turbulent security conditions seen in Iraq, reports issued by IZDIHAR show that most Iraqis still have a tendency to carry tens of thousands of dollars in their pockets. For those people, electronic payment systems may in fact present a more ideal solution. Work, however, still needs to be done in Iraq to spread awareness of the benefits that Visa International provides for such a society. More people in Iraq need to know that through Visa International they can access funds from anywhere in the world and this in turn means that they no longer need to carry large amounts of cash in a country where it is unsafe and unwise to do so. Furthermore, having more people use the services that Visa International provides allows for more economic growth, especially since more people will automatically be brought into the banking system. With more people in the banking system, more funds are put in bank deposits and therefore more funds are taken out of the grey market and put to more productive use such as retail loans,' said Mr. Abu Ghazaleh.

'The debit card presents itself as a card for individuals seeking a secure payment solution for their day to day transactions, since it is one that is linked to the cardholder's bank account. The prepaid card from Visa International targets new customers who may not be eligible for a Visa credit card or a current account, enabling the banks to extend their cardholder base. Both of these payment tools are sure to be received with high demand from different sectors in the Iraqi community, for the Iraqi population is diversified in nature, and we at Visa International have payment products to cater to such a diversified demographic make-up.'

Ending his presentation on a high note, Mr. Abu Ghazaleh thanked Visa International's member banks throughout the Levant. He stated 'Without the help of our member banks, Visa International wouldn't be doing so well in the region. They are our partners and together we hope to spread more awareness about our payment solutions and to highlight them as the secure and convenient payment solutions that they are. Visa International's Levant office is also ready to provide the support needed for the Iraqi and regional banks who are interested in launching new electronic payment systems and offer assistance in terms of membership applications, identifying suitable vendors, product segmentation, and others.'

It is important to note that IZDIHAR is a comprehensive, 3-year program designed to assist the Government of Iraq, and to expand the private sector so that more jobs are created for varying sectors within the Iraqi community. The program achieves this goal by developing a more market-friendly environment for economic growth. IZDIHAR is funded by the United States Agency for International Development (USAID) and is implemented in partnership with the Iraqi private sector and government. Awareness conferences like this one are part of the many tools it uses to promote more economic prosperity in Iraq, and they serve as a perfect venue to showcase all what the Iraqi economic arena has to offer.

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Participants at the Second International Exhibition of Iraq organized CALL (Voice of Iraq) - 29-05-2007 | Sotaliraq.com - ÕæÊ ÇáÚÑÇÞ

Participants at the Second International Exhibition of Iraq CALL organizing this exhibition in the future territory of Kurdstan
Turkey / Izmir Ghazi / Iyad Bala
For the period from 22-27 May 2007 held the Second International Exhibition of Iraq in the city of Izmir Ghazi Turkish company with 1030 from 30 countries as reported by the Director responsible for the exhibition of the Turkish side, chambers of commerce and industry in the territory of Kurdstan three governorates (Erbil, Sulaymaniyah, Dahuk) had a presence in the exhibition, while the number of firms Alkordih wings Special exhibition, traders Dohuk governorate have had their culprits in the exhibition through the Chamber of Commerce and Industry Dohuk, which was able to send some more than 70 merchants to participate in the exhibition, said at the outset he (Marshal Rezeki) deputy board chairman of the Chamber of Commerce and Industry Dohuk to the importance of this exhibition in the consolidation of trade and economic relations with Altejaralatrak as well as with Turkish companies to participate in the exhibition, as well as other global companies that have had a presence at the exhibition, from his part, the (Ahmed Abbo) board member of the Chamber of Commerce and Industry Dohuk governorate that more than 400 merchants from the territory of Kurdstan three provinces and Kirkuk participated in this international exhibition, which includes many of the wings commercial and industrial explaining that the goal of the exhibition is to promote and strengthen relations between Turkish companies and companies participating in the exhibition with companies in the territory of Kurdstan and encourage Turkish and foreign companies to contribute to the reconstruction of Iraq and Kurdstan region and encourage investment in the territory of Kurdstan who enjoys security and stability and have the right climate to attract Zairian foreign funds and pointed to the presence of some 400 Turkish companies in the territory of Kurdstan, on the other hand demanded (Ahmed Abbo) that the holding of such international exhibitions in the territory of Kurdstan which are ready to receive Thus large international exhibitions and confirmed that the city of Irbil would establish an international exhibition in mid next September.
Meanwhile Talib (Rasheed Zakholi) Director companies (Younis Krupp), which had a special wing in the exhibition, called for the holding of such exhibitions in the future both in the territory of Kurdstan Arbil or Sulaymaniyah or because these governorates of Dahuk where appropriate atmosphere for the reception and organizing these exhibitions, pointing out that the government of the Kurdstan part provide the necessary facilities to traders and foreign companies to come to the territory of Kurdstan and investment.

For his part, the (Hamid Majid) board member of the Chamber of Commerce and Industry Dohuk important for this exhibition amid presence of a large number of traders and companies Alcord Alkordih territory of Kurdstan promise opportunity for the conclusion of many commercial contracts with traders and companies from many countries as well as establishing trade relations with these companies traders future All of this would, in the service of improving the economy in the territory of Kurdstan and encourage investment in the province. For his part, the (festival Cindy) that this is the second time that the participation in this international exhibition and explained that he worked in the transport sector oil derivatives and construction materials and as a great opportunity and an opportunity to clinch deals and concluding commercial contracts with other delegations participating in the exhibition since it contributes to the revitalization process racketeering and economic relations between the territory Kurdstan, Turkey and other countries of the world.

Originally Posted by Lunar

Iraqi Kurdistan region to take charge of own security

AFP May 29 2007

Iraqi Kurdistan's autonomous government will take charge of security in its mountainous northern region this week in a transfer of command from the US-led coalition, officials said.

At a ceremony on Wednesday in the regional capital Erbil the commanders of the peshmerga -- former anti-Baghdad guerrillas and now staunch US allies -- will be handed responsibility for three northern provinces.

"This week the responsibility for security in the Kurdistan region will be officially transferred from multinational forces to the peshmerga affiliated with the regional government," said Jabar Yawar, a Kurdish military spokesman.

The peshmerga are former Kurdish rebels who have been incorporated into the Iraqi and Kurdish armed forces in the four years since a US-led invasion toppled Iraq's dictator Saddam Hussein.

Yawar said the decision was made during a meeting held in Baghdad between Kurdistan regional president Massud Barzani, Iraq's Prime Minister Nuri al-Maliki and senior US military leaders.

The US military confirmed the handover in an invitation to the event sent out to local media.

"The Kurdish Regional Government will hold a transfer of security ceremony, to highlight the return of the entire region from the coalition force to the government of Iraq," the invitation says.

While turning regional security responsibility over to mainly Kurdish forces, the agreement requires them to coordinate with Iraqi state and US-led forces, according to Kurdish officials.

The US statement said "the Kurdistan Regional Government was deemed ready to assume security responsibility in the region."

The decision comes at a time of growing tension between Iraq's Kurds, who are pursuing greater autonomy, and the country's neighbours, principally Turkey, who opposes anything resembling Kurdish independence.

Turkey has long accused Iraq's Kurds of sheltering fighters from the separatist Kurdistan Workers' Party (PKK), and last week threatened to launch an operation in northern Iraq if local authorities fail to combat the group.

"Either you prevent illegal activities on your soil or if you are not powerful enough, the occupation forces there... should prevent them," Turkey's Foreign Minister Abdullah Gul said.

"If they cannot do it either, then we, who are the ones to suffer, will do it," he warned.

Washington has warned Ankara against cross-border interference in northern Iraq, wary that such a move may destabilise a relatively peaceful region and fuel tensions between Turkey and the Iraqi Kurds, both staunch US allies.

Iraqi Kurdistan region to take charge of own security

Good Post Lunar. Now the US can focus more on Central Baghdad with the Troops from there and the surge coming and get this Security in order. About time some Iraqi Forces started to take over areas. I think this is a good move.

Bush to Name Zoellick to Lead World Bank

Then-Deputy Secretary of State Robert Zoellick announces his resignation at the State Department in Washington, in this June 19, 2006 file photo. Evan VucciBy JEANNINE AVERSA (AP Economics Writer)
From Associated Press
May 29, 2007 6:05 PM EDT
WASHINGTON - Robert Zoellick, a nimble negotiator who has crisscrossed the globe as President Bush's trade chief and as the country's No. 2 diplomat, is the White House's choice to be the next World Bank president. Bush will announce the decision on Wednesday, according to a senior administration official.

Zoellick, 53, a seasoned veteran of politics both inside the Beltway and on the international stage, has a knack for mastering intricate subject matter and translating it into policies. He is known for pulling facts and figures off the top of his head. He also has a reputation for being a demanding boss.

He would succeed Paul Wolfowitz, who is stepping down June 30 after findings by a special bank panel that he broke bank rules when he arranged a hefty compensation package in 2005 for his girlfriend, Shaha Riza, a bank employee.

The controversy led to calls from Europeans, the bank's staff, aid groups, Democratic politicians and others for Wolfowitz to resign from the poverty-fighting institution.

Bush's selection of Zoellick must be approved by the World Bank's 24-member board.

The White House expects Zoellick to gain the board's acceptance. The senior official, who spoke on condition of anonymity in advance of Bush's announcement, said so far other nations have had a positive reaction.

Zoellick announced last June that he was leaving his post as deputy secretary of state to join a Wall Street firm and work to develop investment markets around the world.

At the time, Secretary of State Condoleezza Rice said Zoellick had served as her "alter ego" in the department. He was widely believed to be have been interested in getting a promotion and becoming Treasury Secretary. But that job went to Goldman Sachs chief Henry Paulson.

If ultimately approved as World Bank chief, Zoellick will need to regain trust, rebuild credibility and mend frayed relations inside the institution as well as with its member countries around the world.

All of those things are critical for the bank's new leader, who will have to persuade countries to contribute close to $30 billion over the next few years to fund a centerpiece bank program that provides interest-free loans to the poorest countries.

Zoellick has built strong contacts around the globe over the years.

He is now an executive at Wall Street giant Goldman Sachs. As Bush's deputy secretary of state he focused on a range of diplomatic duties from the Sudan peace talks to strategic discussions with China.

Before that, as U.S. Trade Representative, Zoellick played a key role in negotiations to bring China into the World Trade Organization. He forged free trade deals between the United States and other countries, including Singapore, Chile, Austrailia and Morocco. And, he had helped to launch global trade talks in Doha, Qatar.

Under Bush's father's administration, Zoellick worked closely with then-Secretary of State James Baker on policies pertaining to the end of the Cold War. He also had worked on negotiations on German unification.

During a visit in 2005 to a Chinese panda preserve, the severe, often demanding Zoellick was photographed nuzzling a panda cub and looking delighted.

Rice said she had given Zoellick tough assignments that required him to travel often and fill in for her in Washington, "and occasionally even hug a panda." The photo was printed around the world.

Zoellick had been considered for the World Bank post before, when former chief James Wolfensohn left. But Bush gave the job to Wolfowitz.

The Wolfowitz episode threw the bank's staff into a revolt, strained relations with the Europeans and threatened to tarnish the bank's reputation and hobble its ability to fight poverty.

Before taking the helm in 2005, Wolfowitz was the No. 2 official at the Pentagon and played a key role in mapping out the U.S.-led war in Iraq. From the beginning, Europeans and others were upset that Bush would pick someone to run the bank who was so closely associated with the war.

This time around, though, Paulson - who led the search efforts for a Wolfowitz replacement - said he was consulting closely with other countries.

By tradition, the World Bank has been run by an American, while its sister agency the International Monetary Fund is headed by a European. The United States, the bank's biggest financial contributor and largest shareholder wants to keep that going. However, some aid groups and other critics have called for the decades-old practice to be scrapped.

In Brazil, reaction to Zoellick was cryptic, with a government spokeswoman saying: "Today, the Treasury Secretary of the United States called Finance Minister Guido Mantega to tell him the news of President Bush's choice. Minister Mantega immediately informed President Luiz Inacio Lula da Silva. The Brazilian government has acknowledged the decision."

Brazil has said it would like to see the head of the World Bank, selected in "an open and transparent process without restrictions determined by nationality," the spokeswoman said.

The World Bank, created in 1945 to rebuild Europe after World War II, provides more than $20 billion a year for projects such as building dams and roads, bolstering education and fighting disease. One of the bank's main programs offers interest-free loans to impoverished countries.