Thread: Archive Latest News - Think Tank - 01/01/08 - 14/04/08

Dr. Abdul Mahdi stresses that governorates council law to be according to constitution

Vice President, Dr. Adel Abdel Mahdi, Met with governors and the heads of provincial councils, during this meeting, draft decision of irregular governorates with one province had been discussed ,Abdul Mahdi showed during a press conference held after the meeting that there are draft proposals submitted by the Presidency belong to some paragraphs of the law. The head of the Office of the Presidency of the Republic Naseer Ani confirmed that the Presidency issued a legal federal budget and the passage of the amnesty period on the legal inherited from the parliament, but he explained that he "had not been ratification of the Law of the governorates irregular in the territory, and returned to the House, where got to change this law. chairman pointed to the Office of the President and some paragraphs in this law inconsistent with the Constitution, and said "there are some intersections with the Constitution contained in the Act, as governor and how to be sacked", as well as other issues. on the amnesty law, The head of the Office of the President that has been linked with the head of the Supreme Council of Justice Medhat Al-Mahmoud on the procedures for implementing this law. said, "Today committees started work by creating lists of covered amnesty." and added that "the Amnesty Law is one of the most important laws of interest to the Iraqi people , "pointing to the effort of solidarity between the Presidency and the Prime Minister and the Council of Deputies in order to complete this law.

Iraqi Media Net

OPEC oil output to fall in Feb-Reuters survey

OPEC oil supply is set to fall slightly in February because of lower output from Iran and Nigeria, a Reuters survey showed on Monday.

OPEC's 12 members bound by output targets, all except Iraq, pumped 29.78 million barrels per day, down from a revised 29.89 million bpd in January, according to the survey of oil firms, OPEC officials and analysts.

The drop reflects lower exports from Iran and supply outages in Nigeria. Some analysts said there were also signs that OPEC members were trimming output to prepare for seasonally lower demand in the spring.

Even so, the survey indicates that OPEC supply remains higher than the group's informal target, offering some relief for consumer countries worried by oil prices that hit a record high of nearly $104 a barrel on Monday.

Output from all 13 members of the Organization of the Petroleum Exporting Countries eased to 32.05 million bpd in February from 32.14 million bpd in January, the survey found.

Nigeria | Africa - Reuters.com

50 BILLION NEEDED TO TURN IRAQ'S OIL INDUSTRY AROUND

Fifty billion dollars will be needed to get Iraq's oil industry back on its feet - 40 billion for developing already discovered, but undeveloped, oilfields, and 10 billion for exploration.

The Centre for Global Energy Studies (CGES) argues in a milestone report on the state of the Iraqi petroleum industry that foreign contracts and western expertise will be vital to realising the potential of the strife-racked Middle East nation's petroleum industry.

Moreover, despite current difficulties, there is ample scope for foreign companies active in the upstream oil &gas supply chain to win work.

CGES says the expected revenue from well services is about 10million in 2008, increasing to about 60 million by 2010.

Oil & gas investment opportunities in Iraq range from immediate needs to medium and long-term requirements. While many projects are available for immediate execution, others will have to await the passing of the Federal Oil and Gas Law.

The current official figure for proven reserves is 112 billion barrels, compared with an independent estimate of 125 billion barrels. Within five to seven years, exploration could boost this to as much as 150billion barrels, but stability is a prime requisite for this to happen. Gas exploration has been slow in Iraq. The proven reserve is 110 trillion cu ft, with an upside potential of 50-65TCF.

Step back to 1979 and oil output was 3.5 million barrels per day and Iraq National Oil Company had laid plans in the early-1980s to increase the production capacity to 6million bpd. But this plan was wrecked by three wars - 1980-88, 1991 and 2003.

CGES points out that the looting and vandalism that followed the two Gulf Wars caused great damage to oil installations. UN sanctions against Iraq added further damage due to the difficulties created in getting spare parts and in performing well services. The pre-2003 production capacity has not recovered and, despite the reconstruction efforts, a great deal of work is yet to be executed.

"Foreign contractors have not been able to provide vital services due to the poor security conditions," warns CGES.

"The overall impact has been further decline in the production rates of oilfields, though the decline has been partially compensated by adding the pilot production from a few southern fields.

"The main reasons for the rate decline have been insufficient water for injection, the shutting of wells due to increasing water shortage and poor reservoir management.

"Field capacity in the north was not affected by the second Gulf War, but the continued attacks on the Iraq-Turkey export pipeline have kept actual production at 30-40% of the capacity of the northern fields.

"The oil sector, like everything else in Iraq, has suffered from the poor security environment. The fact that the nation is composed of different sects and races has contributed less to the problem than politics, the security vacuum post April, 2003, and the very slow process of building up and equipping the national army and security forces."

CGES considers that conditions in Kurdistan have been safe enough for business; also, in the southern governorships of Basra and Maisan, security conditions have been relatively satisfactory for field activity to continue.

The two main Kurdish parties (KDP and PUK), along with the two main Shiite parties (SCIRI and DAWA) bolstered by the support of the Shiite Arabs, control the political scene. Although these four parties enjoy a majority in the National Assembly, two other groups are making life difficult for them: the Sunni and Al Sadr.

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Prime Minister Announces a 90% Increase in Governorate Budgets

Prime Minister Nouri al-Maliki revealed on Sunday a 90% increase in Iraq's 2008 federal budget, as Vice President Adil Abdul-Mahdi disclosed an amended draft for the election law of governorate councils that will soon be submitted to the parliament.........................

Noozz.com | IRAQ

Hopefully more of this will come out in the next few days.

Big trade city in Baghdad

Iraqi Ministry of Trade announced on Monday that it has invited some investment companies to prepare the final designs of the trade city in Baghdad that will embrace a multi-purpose free market.

Abdul-Fatah al-Sodani, minister of trade, said in a press release received by Aswat al-Iraq – Voices of Iraq – (VOI), "The historical and cultural position of Baghdad enables this city to be a multi-purpose international trade center," adding "the big trade city will be hosted by the exhibition grounds of Baghdad International Fair (BIF), which is located at the heart of the Iraqi capital."

"Many companies now want to invest in Iraq, after the tangible improvement in security, and they are ready to execute big investment projects essential for a better economy in Iraq," al-Sodani said, asserting "we invited big investment companies to exploit their long experience in the field of designing similar trade cities in other countries."

Aswat Aliraq

Rise in demand for dollar in daily auction

Demand for the dollar saw a slight increase in the second session of this week's Iraqi Central Bank auction on Monday, registering a total demand of 74.930 million compared to 33.330 million during last Sunday's session.

"The demand hit $6.850 million in cash and $68.80 million in money transfers outside the country, all covered by the bank at a rate of 1,210 Iraqi dinars per dollar, stable for the 18th session in a row," according to the central bank's daily bulletin received by Aswat al-Iraq – Voices of Iraq – (VOI).

Speaking to VOI, Ali al-Yasseri, a trader, said that the demand saw a rise due to the return of markets to their regular levels and the stability of auction sale bid prices for two running sessions.

The Iraqi Central Bank runs a daily auction from Sunday to Thursday.

Aswat Aliraq

Originally Posted by Seaview

Big trade city in Baghdad

Iraqi Ministry of Trade announced on Monday that it has invited some investment companies to prepare the final designs of the trade city in Baghdad that will embrace a multi-purpose free market.

Abdul-Fatah al-Sodani, minister of trade, said in a press release received by Aswat al-Iraq – Voices of Iraq – (VOI), "The historical and cultural position of Baghdad enables this city to be a multi-purpose international trade center," adding "the big trade city will be hosted by the exhibition grounds of Baghdad International Fair (BIF), which is located at the heart of the Iraqi capital."

"Many companies now want to invest in Iraq, after the tangible improvement in security, and they are ready to execute big investment projects essential for a better economy in Iraq," al-Sodani said, asserting "we invited big investment companies to exploit their long experience in the field of designing similar trade cities in other countries."

Aswat Aliraq

Hey Seaview

You are all right with me!
But I only "thanks" you for the good news.
Here is a BIG THANKS for all the news.

Maceman

Addax Petroleum announces update on discussions with the Kurdistan Regional Government

Addax Petroleum Corporation today confirms that it has signed an agreement with the Kurdistan Regional Government (KRG) amending the production sharing contract it holds together with Genel Enerji in respect of the Taq Taq license area in the Kurdistan Region of Iraq (the Taq Taq PSC).

The Taq Taq license area includes the Taq Taq field and the Kewa Chirmila prospect. The purpose of the amendments is to bring the Taq Taq PSC into conformity with the Oil and Gas Law of the Kurdistan Region - Iraq (the 'Oil and Gas Law') and Model PSC, including the royalty, cost recovery and profit share components.

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: 'We are pleased to be working closely and in a spirit of cooperation with our partners at the KRG to arrive at a result that is beneficial to all parties. The new terms of our Taq Taq PSC are now in line with the recently enacted legislation and our stakeholders will be pleased to know that our economic and operational interest is materially unchanged. The results from our appraisal campaign at Taq Taq to date have been extremely positive and we are encouraged by the exploration potential we are uncovering through seismic surveys. We look forward to continued strong relations with the KRG as we seek to implement a full field development program with the potential of first oil as early as next year.'

The review and renegotiations were conducted between the KRG, Genel Enerji and Addax Petroleum in accordance with Article 54 of the Oil and Gas Law which required review of the Taq Taq PSC by the Regional Council for the Oil and Gas Affairs of the Kurdistan Region - Iraq (the 'Regional Council'), taking into consideration the prevailing conditions when the Taq Taq PSC was originally entered into.

The most significant changes to the terms of the Taq Taq PSC include i) the combination of previously separate terms for the Taq Taq and Kewa Chirmila areas, including the synchronization of the government back-in rights at up to 20 per cent, ii) a reduction in the maximum Cost Oil recoverable in a given year, which is partially offset by an effective increase through an interim period that accelerates the recovery of the initial capital investment by the Contractor, and iii) the introduction of a 'R factor' in the Profit Oil calculation, which adjusts the financial returns to the Contractor and Government based on relative level of cumulative capital spending and cumulative revenue.

The ultimate financial impact of the amendments to the terms of the Taq Taq PSC is dependent on operational outcomes, including reserve, production and cost levels. However, the Corporation believes that under most of the likely scenarios and considering the further exploration potential of the PSC area, the amendments do not result in a material change to the financial or operational interests of Addax Petroleum.

Addax Petroleum announces update on discussions with the Kurdistan Regional Government | Iraq Updates

Update........

Dana Gas project in Iraqi Kurdistan over 70% complete

Dana Gas, the Middle East's first and largest regional private sector natural gas company, has announced that its project in the Kurdistan Region of Iraq to supply, process and transport natural gas to fuel urgently needed local electricity generation is progressing at a rapid pace, with over 70% overall project completion to date.

The project, following service agreements signed in April 2007 with the Kurdistan Regional Government and carried out in partnership with Crescent Petroleum, has completed the engineering, procurement and manufacturing phases, and is now in the construction stage, using Iraqi contractors to maximise local content and economic benefit.
The entire project is on track for first gas supply of 150 million cubic feet of gas per day by middle of this year, rising to 300 million cubic feet by early 2009.

The gas will supply new power plants under construction in Erbil and Sulymaniya, to provide 1,250 MW of electricity generation, for the benefit of over 4 million Iraqi citizens in the Kurdistan Region and the rest of Iraq.

The Prime Minister of the Kurdistan Regional Government of Iraq, His Excellency Nechirvan Barzani, received Hamid Jafar, Executive Chairman of Dana Gas and Chairman of the Board of Crescent Petroleum, who briefed the Prime Minister on progress of the project, which involves a total investment of $650m - the largest single private sector investment in Iraq since 2003.

The project implementation includes upstream development and production, processing with state-of-the-art LPG plants, and transportation of natural gas through a new 180km pipeline, in order to provide urgently-needed gas supplies to cost-effectively fuel the new power stations under construction, providing savings to the Government budget of over $2bn annually in fuel costs.

The project implementation will also provide work opportunities for over 2,000 Iraqi nationals of all ethnic groups, and provide comprehensive training in oil & gas operations for Iraq's citizens.

The meeting between the KRG Prime Minister and Hamid Jafar also covered the progress of the Strategic Alliance Protocol signed by the parties, whereby the Kurdistan Regional Government of Iraq, Dana Gas, and its partner Crescent Petroleum have agreed to jointly review the region's natural gas resources in Northern Iraq with a view to the optimization, development and utilization of that important resource for the benefit of the Iraqi people.

The Protocol agreement includes the 'Kurdistan Gas City' - a major new gas-utilization industrial complex to be built over an area of approximately 35 square kilometers, designed to promote private sector investment in a variety of gas-related industries to further benefit the country's citizens through training, job creation in the tens of thousands, and the promotion of general economic activity.

The initial feasibility study for the 'Kurdistan Gas City' project has now been completed, with final site selection underway.

Commenting on the positive progress, His Excellency Nechirvan Barzani, Prime Minister of the Kurdistan Regional Government of Iraq, said: 'We are very pleased with the rapid progress of this important project which will benefit not only the people of the Kurdistan Region but contribute to affordable electricity for the whole of Iraq. Being from the region, Dana Gas and Crescent Petroleum have demonstrated a unique ability to cooperate positively with local communities in a beneficial manner, while implementing this large and complex project in record time. We are confident that this important initiative by the KRG with Dana Gas and Crescent Petroleum will set an excellent example to other parts of Iraq for the country's economic development for the benefit of all Iraqis.'

Hamid Jafar, Executive Chairman of Dana Gas and Chairman of the Board of Crescent Petroleum, added: 'We have been honoured to work on this project to provide a complete solution of state-of-the-art gas field development, processing and transportation that is urgently required on a fast-track basis for electrical power generation for Iraqi citizens. We are also excited by the Gas City project, to provide added value and economic
benefit from natural gas resources, including productive job creation. We are committed to the immediate progress and development of Iraq's oil & gas sector, as we belong to the region and are here for the long-term.'

Dana Gas project in Iraqi Kurdistan over 70% complete | Iraq Updates

Oil minister heads for Vienna Tuesday to attend OPEC meeting

Iraqi Oil Minister Hussein al-Shahrestani is leaving for the Austrian capital Vienna on Tuesday to attend Wednesday's meetings of the Organization of Petroleum Exporting Countries (OPEC) to set production policies, a ministry spokesman said.

"Dr. Shahrestani will be accompanied by Dr. Falah al-Aamiri, the chairman of Iraq's State Oil Market Organization (SOMO). The minister will hold meetings on the sidelines of OPEC meetings with his counterparts to probe means to help Iraq re-build its oil infrastructure," Aasem Jihad told Aswat al-Iraq – Voices of Iraq – (VOI).

"Iraq seeks to have OPEC retain the stability of its oil production because there is nothing justifying more oil pumping for a market that has sufficient supplies," Jihad said.

Iraq's crude oil exports via SOMO hit 1.634.125 barrels per day (bpd), he added.

A press release by the Iraqi oil ministry noted that the South Oil Company's export quota hit 556.605.655 bpd while Kirkuk's quota hit 39.849.791 bpd.

Oil minister heads for Vienna Tuesday to attend OPEC meeting | Iraq Updates