Thread: Archive Latest News - Think Tank - 16/08/07 - 03/11/07

Iraq's oil law: Friction between Baghdad and Kurds

Law to govern resources and allow compromise

DUBAI, United Arab Emirates, Sept. 10 (UPI) -- Both Iraq's federal government and the Kurdistan Regional Government are upset by each other's efforts in reaching a deal on a national oil and gas law and have announced moves to develop the oil sector without it.

Neither has given up, however, on the hydrocarbons law, a tool that will both govern development of resources that bring in nearly all the government's revenue and allow various factions to air their wants and find a compromise.

"If for any political reason the law is delayed, we'll go ahead and start discussions with international oil companies," Iraqi Oil Minister Hussain al-Shahristani said Saturday at an Iraq oil conference in Dubai, United Arab Emirates.

On Sunday, on the sidelines of the Iraq Petroleum 2007 summit, organized by The CWC Group, he said tenders for projects in Iraq's vast oil and gas sector "will be announced in due time." He didn't say exactly which fields or exploration blocks, but they are included in the first phase of a five-year plan he outlined over the weekend, he said.

"The Ministry of Oil is entitled to sign any contract that is for the best benefit to the country," he said. The government has been holding out for the federal law, but it appears pressure is wearing the patience thin.

The same goes for the KRG, which on Saturday announced it signed a production-sharing contract with an Iraqi-based subsidiary of Hunt Oil Co. of Dallas and Impulse Energy Corp.

"Any contract that has been signed by anybody other than the Ministry of Oil now before the new law is legislated has no standing as far as the government of Iraq is concerned," Shahristani said Sunday of the deal. The KRG has signed a handful of oil and gas exploration and development deals with private firms, all of which have been condemned by Baghdad.

Shahristani said only the first four deals, struck prior to reaching agreement on a federal oil law, would carry any water with him. They would be reviewed by a federal oil and gas council established by the law to ensure they comply with it.

"We are not really looking for any blessing from others because we don't need any of it," KRG Natural Resources Minister Ashti Hawrami said in a telephone interview from Iraq. "Instead of undermining KRG's achievements we would like to encourage others to work with us on the federal law to make some real progress in all the country."

Without a new federal oil law, which has been in negotiations for more than a year, Iraq relies on legislation instated in the 1980s, which Shahristani says gives him the right to sign new deals. Hawrami said the 2005 constitution gives the Kurdistan region the right to pass its own oil law, which it did last month, and sign deals as well.

Layers of mistrust fomented by Saddam

"Our recently enacted regional oil and gas law has nullified any other law before it. That is our constitutional right and we have done that," he said, adding more deals are in the pipeline. "But, that only applies to the Kurdistan region, and the rest of Iraq is still governed by the old laws."

The debate is more complex than merely negotiating laws and interpreting a constitution. There are layers of mistrust and fear fomented by decades of violent, strongman power wielded mostly along sectarian lines by Saddam Hussein. Such tension has been exacerbated by the past four plus years of an occupation that sought to use sectarian categories or roles to bring a slice of power to Iraq's Shiite and Sunni Arabs and Kurds. But succeeding in being inclusive, the new form of government is also fractured along such identities.

The oil law, in turn, is not simply legislation governing the third-largest proven reserves of oil in the world. Oil sales funded more than 90 percent of government last year, so the oil is a base for power in Iraq. Agreeing on how to share and/or divvy that power (the extent of federalism in the new Iraq) and best develop the crude source of the power (the extent international investors can enter the longtime nationalized oil sector) is a litmus test.

The Bush administration and Congress included passage of an oil law as a benchmark for Iraq's government (although the benchmark language referred to an oil law that decides how the oil revenue is to be shared, which will be decided in a separate revenue-sharing law). They said passing the law would lead to reconciliation.

As negotiations over the law turn tense, widening the gap between political players and creating the real or perceived need for unilateralism, it appears the law itself could be the proving ground for intra-Iraqi cooperation. It's a decisive and divisive issue for Iraq, suffering from daily violence and a dwindling quality of life; it may not fit in an occupying power's cynical timeframe.

Indeed, backroom talks have seen successes. But soon after surfacing, deals break down or are found to be incomplete. In February an agreement was announced, but now neither the Kurds nor the central government can agree on changes each side wants or has made. Both still say they want to find a solution. That's a feat considering the pressure being applied not only by the United States, other governments and institutions like the International Monetary Fund, but internally as well.

The Iraqi government is becoming weaker every day citizens experience long hours without electricity, long lines for fuel and hopes of restored healthcare, water, sewage and education systems. That, along with the violence, is spurring fighting between parties, even those allied by ethnicity or religion.

The oil unions in the south are so worried they'll lose jobs and the country its natural resource that they vowed Sunday to strike if the law passes. They feel it gives too much to the international oil companies, which are putting pressure on the government as well. Thousands of top officials of the global oil industry attended two Iraq energy conferences in Dubai over the past eight days, urging attending Iraqi government officials to move faster.

"Iraqis have yet to agree on the shape of the country they live in. They need to agree on how to share resources and how to share power," Yahia Said, director of Middle East and North Africa at the Revenue Watch Institute, said during the final panel discussion at Sunday's summit. "It's a matter that needs to be discussed and debated.

Iraqis need time and space to do that."

Iraq's oil law: Friction between Baghdad and Kurds

Originally Posted by flockstar

Aye right

Is this for real? Was a question, where is the Major distortion of facts in that you t**t

Ah well you obviously have your mind made up so why ask? Also, please see this thread instead of double posting.

Finance: the recovery of more than nine million Dollarlsaleh Iraq

Source: Voices of Iraq - 11/09/2007

She said the Ministry of Finance, Tuesday, the Department of Foreign proceedings Service public debt ministry was able to resolve a number of foreign proceedings for Iraq amounting to more than nine million dollars.

The ministry said in a statement that "the first section of the proceedings during which the recovery amount of $ (5,938,604), as were other cases restitution amount (483, 387, 3) dollars."

Acharali and other cases that there had not yet been resolved and still argue the ongoing, and will be resolved in favor of the ministry, according to the statement.

The statement did not mention the countries that were this debt arrears, and the value of the arrears to the countries for the benefit of Iraq.

Skinner: Mlahkiat approval to open business in a number of Arab and foreign countries

Source: Voices of Iraq - 11/09/2007

A spokesman for the Iraqi government, Tuesday, that the government agreed to open Mlahkiat commercial or reopened in Thailand, Brazil, Australia, Sri Lanka, South Korea, Pakistan, Lebanon, Kuwait, and Saudi Arabia.

Skinner added in a statement to the Iraqi government that "the Iraqi government has agreed to a number of projects during the meeting of the Council of Ministers under the chairmanship of Nouri Maliki Tuesday to approve the draft law and medicine Judicial approval of the draft seized smuggled funds to be re-calculate the percentage of reward and make them pay 30% and 70% the State's treasury. "

He explained that the Iraqi government "and also agreed to transfer the headquarters of the company's public transport water from the governorate of Basra in southern Iraq to the capital Baghdad, the government also authorized the Minister of Finance statement Jabr Zubaidi pay all debt regional and international organizations and negotiate to reduce."

Rising Stock Exchange index .. The circulation of 15 contracts for non-Iraqi

Source: Voices of Iraq - 11/09/2007

Register market index Iraq securities amounted to rise (0,5%) in today's meeting, Tuesday, as witnessed meeting registration (15) contract for investors non-Iraqis.

The analysis of daily meetings Stock Exchange (bourse) that the number of Iraqi traded shares at today's meeting, the fifth trading sessions during the month to run, hit more than (390) million shares ... The value exceeded (638) million dinars, achieved through the implementation of a contract (254).

The report noted that the market price index (ISX Price Index) has risen per (0.5%) compared to the previous meeting, when the index settled (39.150) points at the end of the meeting.

The investors participated in the Iraqi-panel meeting today (Tuesday) through the implementation of (15) contracts in the sectors of banking, investment, industry, and the number of traded shares have more than (31) million shares ... The value exceeded (45) million dinars. The companies that have been trading for non-Iraqis: Baghdad bank, the Bank Alorka, Summit financial investment, and the Baghdad carbonated drinks.

At today's meeting was the circulation of shares (28) shareholding companies listed in the Iraq market for securities, including: (13) banking company, and two Astthmaritan, two Khaddamitan, (11) industrial companies.

Among the company (13) was deliberated by the bank, rose rates contributed eight companies are: Bank Basra ... Per (8.3%), the highest rate of increase at today's meeting, the Bank Alorka (6.4%), the Iraqi National Bank (4.5%), Bank of Mosul (4.1%), Bank of Babel (3.8% ), the Iraqi Investment Bank (3.7%), Gulf Bank (3.4%), and finally by the Iraqi Commercial Bank (2.9%).

The decreased rates contributed two companies, namely: the Bank of Baghdad rate (8.9 %)... The highest proportion of low today, and by the Bank of the North (2.4%). The three companies have maintained the rates the shares at the previous meeting, namely: Islamic Bank, Credit Bank of Iraq, and Commercial Bank of Sumar.

The banking index closed at a point (37.659), a high rate (0.1%) from the previous meeting. The share of the banking sector of the number of shares traded has exceeded (310) million shares, and by the amount (79.4%) of the total number of shares exchanged ... The value exceeded (521) million dinars, or by (81.6%) of the total trading volume, have been implemented (173) contracts.

Achieved (Alorka Bank), where the highest proportion of the number of shares exchanged in the banking sector by (27.3%), the highest percentage of trading volume in the banking sector by (27.3 %)... Having been circulating more than (86) million shares valued exceeded (142) million dinars.

The report explained that the Iraqi bourse in the Gaza investment deliberated during the meeting Tuesday, shares of investment companies ...: the harmony of the financial investment, and financial investment summit ... Where maintained the same rates of hotels at the previous meeting.

The index closed sector investment (108.570) point stable than in the previous meeting.

In the services sector, the shares of two companies deliberated Khaddmitin .. Where rate fell SHARE PRICE Company globe by real estate (2.4%), preserved with the Iraqi company for road transport at the same rate of exchange losses in the previous meeting. The index closed the service sector (77.938) points, stable than it was during the previous meeting.

The analytical report of the Iraqi Stock Exchange that the shares through the circulation (11) industrial companies today, rates rose five companies are: Baghdad carbonated drinks ... Per (8.3%), Crescent Industrial (8.3%), Baghdad packaging materials (7.6%), the beer company East (5.8%) and, finally, the company metal and motorcycles by (3.1%).

The decreased rates contributed two companies, namely: modern dyes rate (5%), and chemical industries (2.7%). With four companies had maintained the same rates shares at the previous meeting, namely: Sewing modern, light industries, electronic industries, and finally the Iraqi company for engineering works.

The industrial index closed at the point (11.880), a high rate (0.388%) from the previous meeting. The company achieved Baghdad carbonated drinks highest proportion in terms of the number of traded shares and trading volume of the industrial sector.

The final outcome of the circulation session today (Tuesday), showed the analytical report of the Stock Exchange trading shares of the company (28) ... Out of (93) is a company listed on the market, rising rates (13) of them ... With rates contributed five companies, and ten companies maintained the same rates of the previous prices.

Still (20) company parked on circulation because the bodies of the annual Assembly resolutions and the implementation of public bodies, and six companies dependent on circulation, by the Iraqi securities because of the lack submitted final accounts for the year (2004), and eight other companies for not submitting the final accounts (2005).

Thus, the number of companies suspended from the body by ten companies.

The largest markets in Baghdad regains activity with the impending month of Ramadan.

Source: Radio SEWA - 11/09/2007

A few days before the advent of Ramadan, flowing Albghaddadion market Alshorgh Tbia to purchase their needs, hoping to secure a few days this month.

Few are expected to recover market Alshorgh Baghdad largest markets recover, and return to previous activity after the recent bombings, more than once, but returned to witness the movement of the usual solutions with the month of Ramadan.

Her citizenship or Ahmed: "The visit of the market before the advent of Ramadan several days annual tradition, we can not abandon it, regardless of the size of the risks, which may run it, because security incidents, and his visit at this time each year has become a tradition firmly".

The three of the bombings occurred in the market Alshorgh in 12 months in February last, which resulted in 79 deaths, and burning about 100 cars, and more than 100 store.
The market Alshorgh is one of the traditional markets appear to date back about 400 years, has known many of the market frequented before the month of Ramadan, more than one week. It is impossible that there Beit Baghdadi not Jibia market Alshorgh foodstuffs Special Palaclat Ramadan.

Dhaher market Alshorgh sell spices, sugar, tea, spices, grains, and the types of desserts, rice, and many types of juice tons, and most material coming from the Levant markets, Jordan and Turkey.

He says Mehdi Saleh, one of the assignee in the market: "The advent of the month of Ramadan contribute to the lifting of movement and the demand for buying materials needed by families in the holy month, as evidenced by the market these days an increase in the number Patrons arrive where Iraqis for Tbia more remarkable.

Saleh added: "This prompts us to alert our activity, and bringing foodstuffs from Syria and Jordan, and Turkey before a suitable solutions month, and supplies to meet the need of people for 30 days, because most families visiting the market more than once during Ramadan." As Dhaher market Alshorgh Bmahalh specialized commercial sale of foodstuffs, there are other interested shops selling tools and supplies accepted by the Iraqis during Ramadan, in ****e of the extinction of almost notably shops Aleramadaineh lanterns.

The Holy Month of Ramadan lanterns memories of the beautiful and friendly to the Iraqis, they acquire for decoration, and there acquires lanterns regular toilet for them in times of fasting, where interrupted electricity for much of reviving the capital.

The advantage of the Ramadan lanterns beautiful colors attractive, which is made of glass, and attached as family recreation confer on Baghdad manifestations of the old rituals Ramadan. "

Source: Iraq establishes a tender for Kirkuk crude

Source: Reuters-11/09/2007

The oil industry source said on Monday that Iraq laid bid of about five million barrels of Kirkuk crude.

The source explained that Pepsi Tobrah Turkish Sibiya obtained the Spanish million barrels each. Exxon Mobil won shipments by 740 thousand barrels each won the Italian ENI shipment at least one source but did not know the exact size.

Province Continue Progress

Posted GMT 9-10-2007 20:41:35

WASHINGTON -- Iraqi security forces in Ninewah province are in the lead and taking the fight to the enemy, the U.S. Army commander in the area said from his headquarters near Mosul, Iraq, today.
Army Col. Stephen Twitty, commander of 4th Brigade Combat Team, 1st Cavalry Division, said the 2nd and 3rd Iraqi army divisions are in the lead and taking the fight to terrorists in the province.
There are roughly seven to nine attacks per day in the province, which contains Mosul, Iraq's second-largest city.
The people of the province are showing they support freedom from al Qaeda and other terrorist groups by cooperating with coalition and Iraqi forces, Twitty said. Iraqi soldiers have foiled a number of terrorist attacks in the province. They also have found and killed a number of high-profile terrorists, and they have freed hostages that al Qaeda has taken.
People are showing they support the Iraqi government by refusing to engage in sectarian fighting following a horrific attack in the province last month, Twitty said. On Aug. 14, al Qaeda exploded four car bombs in the Yazidi villages of Khahtaniya and Jazeera, in western Ninewah. Yazidi is a minority religion in Iraq, and adherents live mainly in the Mosul area.
"To date, 344 Iraqis have been confirmed killed and more than 700 wounded as a result of that attack," Twitty said. "I believe the intent of this attack by al Qaeda was to cause sectarian violence between the Yazidis and Kurds against the Sunni Arabs in the province. That plan did not work; the attack united the Iraqis, driving them to support one another."
The Iraqi government handled the relief effort to the stricken villages. Iraqi soldiers and provincial police delivered relief supplies, and Iraqi relief agencies provided shelter and helped relocate refugees.
And progress continues. "Most recently on (Sept. 4), the 2nd Iraqi Army Division captured a suspected key al Qaeda financier, who was found with multiple checks totaling nearly 8 million Iraqi dinar, which amounts to nearly $600,000 U.S," Twitty said. "During questioning, he admitted to financing al Qaeda kidnapping operations here in Mosul."
These examples point to the capabilities of the Iraqi security forces in the province, Twitty said. Army units continue to receive training from coalition military training teams, and Iraqi government forces are expanding their reach into other areas of the province. "By keeping the pressure on the terrorists that operate in Nineveh province, we will deny them a safe haven to plan and execute operations against the citizens here," he said.
Coalition and Iraqi forces are expanding operations to deny terrorists freedom of movement in Nineveh and the Zaab triangle of Salah Ad Din province. "Approximately 14,000 coalition and Iraqi security forces are striking targets in Mosul, west and south Nineveh, and in the Zaab," Twitty said. "The Zaab triangle is the main effort for our operations."
The area has seen little coalition presence, and as forces destroy safe havens they will set conditions for a permanent presence. Forces will establish Iraqi police stations and checkpoints to cut off terrorists' freedom of movement. "The end state is to have a permanent presence in the Zaab that is able to provide for the security of its people," Twitty said. "Ongoing operations have proven to be very successful. So far, we have killed 25 and detained over 50 terrorists, found multiple caches, to include a vehicle-borne improvised explosive device factory here in Mosul."
Problems remain to be solved, Twitty said, for example logistics remains a problem for Iraqi forces. The two Iraqi divisions have received their support battalions. "What we're not seeing is the repair parts to fix the vehicles," he said. "We're assisting with that effort. We are getting some in, but it's not at the level to sustain the force, particularly a force that is fighting every day here in Mosul."
Fuel is an ironic problem for Iraq considering the country's oil reserves. Iraqi forces get rationed fuel on a monthly basis. But the pressure of combat is such that units run out of fuel around the 20th of each month. "I pretty much pad them fuel to continue operations through the remainder of the month," Twitty said.
Iraqi forces lack engineer and aviation capabilities. While this has increased, these shortcomings stand in the way of independent operations.
Ninewah is tentatively scheduled to go under local-government control in October, the colonel said. "We think we're headed in the right direction," he said. "The attacks here in the province have been lowered. We've reduced the number of coalition force battalions here in the province. The government is established and taking care of its people. There are projects that are ongoing by the government. The Iraqi security forces are doing the things that they need to do.
"Yes, there are still problems in the Iraqi security forces, but both the Iraqi army and the Iraqi police are fighting every day, so I see no reason why this province cannot move forward and go to provincial Iraqi control."
By Jim Garamone
American Forces Press Service


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Iraqi Kurdish territory defends Energy Agreement

Source: Reuters-11/09/2007

Defended the territorial government on the Iraqi Kurdish contract for oil and gas production agreement with an American company rejecting the statements of Minister of Oil, which questioned the legality of the contract.

The government said the regional semi-autonomous Kurdistan on Saturday that it signed a contract to participate in the production with a unit of the American company Hunt However Foundation Ampals Energie.

The news media reports about Iraqi Oil Minister Hussein Shahrastani said that the agreement "ineffective" because the central government in Baghdad has not ratified it.

He said Khaled Saleh spokesman Kurdistan regional government in a statement obtained by Reuters that Shahrastani recent statements about the legitimacy of the contracts are totally unacceptable.

His views Shahrastani nothing to do with exactly what is being done is described as illegal and unconstitutional in Kurdistan.

The agreement is the first of its kind since the province passed a law on oil in August August while the Iraqi parliament failed to leave national law after months of negotiation.

The national law crucial in the organization how to share the wealth of Iraq's oil reserves third largest reserves in the world between sects and ethnic groups in Iraq. It is these reserves mainly in the north and south of the country.

The statement wondered what right Shahrastani questioned the legality of contracts granted by the regional government of Kurdistan under the powers enjoyed by accordance with the new law, which passed by a collective regional parliament According to the new Iraqi constitution.

The agreement covers exploration activities in the area of Dohuk and Hunt Oil Company will start to the Kurdistan region of geological surveying and seismic work by the end of 2007 and has plans to drill exploratory wells in 2008.

The regional government signed five agreements to participate in the production earlier with foreign companies.

Ban Ki-moon, Maliki call for NY-based meeting on Iraq this month

Arbil - Voices of Iraq
Tuesday , 11 /09 /2007

Arbil, Sept 11, (VOI) - UN Secretary General Ban Ki-moon and Iraqi Prime Minister Nouri al-Maliki called for a high-level meeting on Iraq in New York on September 21, according to a statement published on Monday on the United Nation's official website.

"Ban Ki-moon and al-Maliki will hold a meeting to discuss ways to implement Security Council resolution no. 1770 on strengthening the UN's role in Iraq and the deteriorating situation in the country," read the statement that was received by the independent news agency Voices of Iraq (VOI).

Ban Ki-moon and al-Maliki launched the International Compact with Iraq at the Egyptian Red Sea resort of Sharm al-Sheikh on May 3, 2007, with the support of the World Bank.

Aswat Aliraq