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

PUKmedia Reveals Real Causes of Delaying Passing Iraqi Oil and Gas Draft Law

The main reason of delaying passing the Oil and Gas Draft Law in the Iraqi Council of Representatives is the amendments done by the Iraqi Council of Consultation to the original draft law in which authorities of the Kurds has been reduced, Bayazed Hassan member of the Oil and Gas Committee in the Iraqi Council of Representatives exclusively told PUKmedia today.

“During the last 9 months the draft law has been sent by the Iraqi government to the Iraqi parliament, but the copy has been amended by the Iraqi Council of Consultation, though the council’s duty is to organizing the draft law legally not to amend its contents. Therefore, the Oil and Gas Committee in the Iraqi Council of Representatives asked the draft law, which previously has been agreed upon by the KRG and the Iraqi Federal Government, to be sent to the Iraqi parliament, he added.

He also indicated that till the original draft law or agreements between the KRG and the Iraqi Federal Government not to be announced, the oil and gas draft law will not be passed in the Iraqi Council of Representatives.

PUKmedia :: English - PUKmedia Reveals Real Causes of Delaying Passing Iraqi Oil and Gas Draft Law

Drop in demand for Dollar

Demand for the dollar dropped in the Iraqi Central Bank's auction on Thursday, registering at $51.175 million compared to $116.175 million on Wednesday.

"The demand hit $24.175 million in cash and the rest $27 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 20th session in a row," according to the central bank's daily bulletin and received by Aswat al-Iraq - Voices of Iraq - (VOI).

None of the twelve banks that participated in the auction offered to sell dollars.

Speaking to VOI, Ali al-Yasseri, a trader, said that the general demand for the dollar got down due to decrease of money transfers on Sunday and Thursday more than other days”.

Al-Yasseri pointed out “the general demand was in its highest levels during the past two weeks as Thursday is the payback day for business men”, al-Yasseri, accounted one of the reasons for the demand rise.

He added “the slowdown of market activity for two weeks spurred more circulation”.

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

Aswat Aliraq

MP calls for early elections to change parliament, government

A lawmaker from the Islamic Fadhila party on Thursday called for an early election to change the parliament and the government.

“The parliament needs some changes because of its failure to supervise the government’s performance,” Bassem Sherief told Aswat al-Iraq – Voices of Iraq – (VOI), noting that there are several parliamentary blocs that support that opinion.

He called to enact a new election law as soon as possible based on open list election.

The MP also called for a complete reshuffle which will include Prime Minister Nouri al-Maliki himself, calling on all Iraqi politicians to agree on the necessity of changing the government.

“These changes will improve the government’s performance,” he also said, stressing that the ministers should be selected on partial basis.

The legislative also doubted al-Maliki’s ability to make the reshuffle as some political blocs refuse to come back to his government.

Regarding the recent visit of Iranian President Mahmoud Ahmadinejad to Baghdad, the lawmaker said its too early to evaluate this visit and we await its practical results.

“Fadhila party received an official invitation to the Iranian president but technical reasons hindered the meeting,” Bassem Sherieff highlighted.

The Fadhila party is a Shiite party with 15 seats out of the 275-seat parliament. Last year it withdrew from the Unified Iraqi Coalition (UIC).

Ahmadinejad left Iraq on Monday, wrapping up his historic visit, during which he held talks with Iraqi officials and signed memorandum of understandings to boost economic relations.

The Iranian president arrived in Baghdad on Sunday morning on a two-day official visit, the first of its kind for an Iranian president since the Islamic revolution in 1979.

Aswat Aliraq

Protest held against Pepsi Privatization

Hundreds of Pepsi employees staged a demonstration on Thursday in central Baghdad to protest against the privatization of the company, threatening to strike in case their demands not met.

“Around 1200 workers took part in the protest, demanding Pepsi's board cancel the idea to privatize the company,” Kazem al-Taei, member of the executive bureau of the general national federation of trade unions, told Aswat al-Iraq – Voices of Iraq (VOI).

“The protesters did not have any support from the global company because of the mismanagement of the Iraq’s branch,” he added during the two-hour demo.

“The workers believe that privatization is illegal,” al-Taei added.
Pepsi company in Baghdad was established more than 25 years ago.

Aswat Aliraq

China to develop Iraqi Oil field following Assurances of Security

China National Petroleum Corporation (CNPC) has agreed to start developing the Ahdab oil field with proven reserves estimated at 1.4 billion barrels, Governor of Wasit Province said.

A delegation led by the governor, Latif Tarfah, and CNPC officials last week reached an agreement to develop the field during talks in the Jordanian capital Amman.

“The Province of Wasit has given the Chinese side assurances and guarantees of providing the necessary security and removing any hurdles on the path of Chinese operations in the province,” Tarfah said.

The governor made the remarks in Kut, Wasit’s provincial capital.

Ahdab is located within Wasit’s provincial borders and the governor said the field’s development will boost the province’s staggering economy.

Tarfah said he has already held meetings with the tribal leaders inhabiting the area surrounding Ahdab and asked for their cooperation.

“I explained to them that the development of Ahdab will be a blessing first to their areas. The tribal chieftains promised to guarantee the protection of the personnel and equipment the Chinese firm sends to their areas,” he said.

CNPC hopes to pump more than 100,000 barrels a day from Ahdab over a period of at least 22 years.

Tarfah said the talks with CNPC were conducted under the auspices of the Oil Ministry.

Iraq and China had signed a $700 million deal in 1997 to develop Ahdab.

The deal, struck under the former regime, is to be revitalized with slight modifications, with China given a share of output for a period of 22 years.

Azzaman in English

US to set two future Agreements with Iraq

David Satterfield, the State Department's coordinator for Iraq, informed the Congress that the Bush administration is working on two agreements on future ties with Iraq, the first relating to US military forces status there and another setting out the framework for diplomatic relations with Baghdad. He added that US Ambassador to Iraq Ryan Crocker will lead negotiators and strategist delegation in Baghdad on the documents while formal negotiations with Iraq would start this month, he said.

US to set two future agreements with Iraq | Iraq News | Alsumaria Iraqi Satellite TV Network

Iraq Wants to Double Oil Production Within 2 Years

Iraqi Oil Minister Hussein Sharistani said Iraq intends to almost double its oil production over the next two years, to 4.5 mln barrels per day.

In an interview with Monte Carlo Dualiya, the Arabic unit of RFI, Sharistani said: "Iraq will increase its oil production by 2 mln bpd to 4.5 mln bpd within two years".

He said the goal will be reached thanks to tenders for contracts for

technical support, and said he is optimistic about the results of the first government tender. He said over 100 oil companies have responded to the first stage of the technical support plan, and the results of the first phase of the tender will be known during this month.

The Iraqi government is relying on its own funds to finance the technical support projects, but the companies chosen will be allowed to explore and operate new oilfields. The ministry said the oil extracted will not be shared.

The government then wants to increase production to 6 mln bpd for the coming 5-10 years, the ministry said.

RIGZONE - Iraq Wants to Double Oil Production Within 2 Years

Analysis: Iraq-Turkey-U.S. Gas talks begin

The third official energy meeting involving Iraqi, Turkish and U.S. officials began Friday in Istanbul, and though a top State Department official doesn't expect "huge breakthroughs," he hopes to see progress in developing a gas pipeline that will eventually feed Europe's demand after edging out Russia and excluding Iran.

"The overall goal is to figure out how best to attract investment to stimulate gas production in Iraq, so that there's enough gas for Iraq's domestic consumption and for export," Deputy Assistant Secretary of State for European and Eurasian Affairs Matthew Bryza told United Press International before heading to Turkey. "We would hope that once there's enough gas for Iraq's domestic consumption that there will be a significant quantity that will be exported into Europe up via Turkey into the Nabucco and Turkey-Greece-Italy pipelines."

"To transport Iraqi natural gas to international markets is of great strategic importance," said Murat Karagoz, first counselor at the Turkish Embassy in Washington. He told UPI an energy committee of Iraq and its neighbors would meet this weekend in Istanbul as well.

Iraq has 111 trillion cubic feet of natural gas reserves -- and much more to be found, experts say -- but such poor infrastructure that it burns off most of the gas produced during oil production. Iraqi citizens lack even half the electricity and fuels they need, and oil and gas workers fear a draft hydrocarbons law will be a gift to international oil companies -- two giant hurdles to overcome to fully tap Iraq's immense natural resources. (It holds at least the world's third-largest oil reserves.)

"I have a parochial interest in trying to get as much gas moving toward those pipelines as possible, including from Iraq, where we think there is great promise," Bryza told UPI. "But that's only one of the reasons we're involved in this. We're also involved in this because we want to help Iraq develop its natural resources and meet its own domestic gas demand needs."

The projects have been challenged by a lack of guaranteed feed from countries that have massive -- but undeveloped -- gas resources, and competition from Russian-backed projects.

"We're trying to develop options to help Europe diversify its supplies of natural gas away from their dependence right now on one company, which is Gazprom," the Russian state firm that serves Europe 25 percent of its consumption, Bryza said. "Our goal is not to be anti-Gazprom. We want to increase competition so Gazprom is a leaner and meaner competitor that operates according to the rules in the market rather than what it is by law, which is a monopoly.

"To do that we've got to get gas moving from alternative sources into Europe."

While Russia, by far the world's No. 1 holder of natural gas reserves, is stretching its control further into the European energy sector. Iran which is No. 2, just can't make traction. Of course, likely further strengthening of U.N. sanctions doesn't help either, though Tehran hasn't dedicated necessary investment into its infrastructure despite strong prices and growing domestic demand. Iranian gas flow to Turkey has been turned on and off recently.

"We don't want to do anything to help Iranian gas move into Europe," Bryza said, "but the reason we're in Iraq working on the gas equation is not directly related to Iran. It's directly related to this broader strategy which is to move new supplies of natural gas, which are not Iranian, into Europe. So we're not proceeding from a desire to isolate Iran. We're proceeding from a much broader strategic perspective."

Turkey is already a major transport country for oil and gas moving east to west -- and growing, along with domestic demand. It's hoping a future Arab pipeline will feed it, including gas from Iraq's huge Akkas gas field in western Anbar province, which is proposed to head to Syria first. Several companies, including Shell, Total and Edison, have been courting Baghdad for a deal.

Iraq's north is also expected to contain sizeable gas reserves, enough for a pipeline to run alongside twin oil pipelines, which end in a Turkish Mediterranean Sea port.

While Iraq and Turkey have been longtime trading partners, a weeklong incursion of Turkish troops hunting Kurdish rebels in northern Iraq's mountains ended Friday but roiled Iraq's central and Kurdish governments.

The incursion will "not at all" hurt planning for Iraq's gas, Bryza said, and as of Thursday both Iraqi and Turkish negotiators had arrived in Istanbul for the gas talks. It follows an agreement last August between energy ministers and between U.S. and Turkish presidents in January to collaborate.

Bryza said he and Turkish Energy Minister Hilmi Guler are two co-chairs, and Iraq has always sent a senior energy representative, usually a top adviser to Iraqi Prime Minister Nouri al-Maliki.

"Also we're going to get (the) pipeline company director general," Bryza said. "He's key because the pipeline company that's actively developing the gas master plan along with Shell for all of Iraq. And you have to have that master plan worked out a bit before you can start figuring out whether there'll be sufficient gas to export."

Domestic demand is more than power generation, Bryza said, but also industries like fertilizer and plastics. "Whatever they want to do."

He expects to get an update on a draft oil and gas law, frozen in Parliament as Iraq's central government and the Kurdistan Regional Government spar over control of the reserves and the development strategy.

The KRG has passed its own oil law and signed dozens of exploration and development deals with small and medium international oil companies, to Baghdad's ire. That's prevented the Kurds from any potential export route, and firms that signed with the KRG have had their Iraq oil shipments cut and blacklisted from future deals in the rest of Iraq.

Baghdad is conducting direct talks with a small handful of the world's largest oil companies for deals and readying a bidding round for a larger pool of fields, relying on a Saddam-era law that gave the Oil Ministry such powers.

"I'd like to hear where that stands and I'd like to hear the thoughts of the governments of Iraq and Turkey on how to handle all the company interest up in the north now until the hydrocarbon law is in place," Bryza said. "We do not favor the conclusion of formal business deals up in the north until the hydrocarbon law is in place."

"I don't anticipate any huge breakthroughs," he added.

Analysis: Iraq-Turkey-U.S. gas talks begin - UPI.com

Iraqi local leaders get rare chance to air issues

A lack of fuel, too little electricity and banks without cash — local governors from northern Iraq aired their complaints to Cabinet ministers Wednesday in a rare meeting aimed at trying to unite a divided country and rebuild its devastated infrastructure.

Strained connections between Iraq's national government and provinces have long kept the two at odds — with local authorities often griping that Baghdad's bureaucracy and political procrastination have stalled economic growth.

Wednesday's meeting, held at a U.S. military base outside of Saddam Hussein's hometown of Tikrit, was an attempt to build trust between governors from Iraq's seven northern provinces and Cabinet ministers along with the U.S. military and Iraqi army.

With violence reduced in Iraq, more attention is shifting to rebuilding and reconciliation — even in northern provinces where al-Qaeda in Iraq retains its strongest presence. Those provinces also could benefit from increased government cooperation for another reason — the seven districts are among some of the most diverse in Iraq, home to Sunni and Shiite Arabs as well as Kurds.

Maj. Gen. Mark P. Hertling, the top U.S. commander in northern Iraq, said the timing of the effort is key: In order to sustain the security gains in Iraq, jobs must be created.

"I think we have six months to make a difference. This today is the starting point," he said.

Hertling gave a grim prediction if progress is not made. "I'm going to see more soldiers hurt and killed, and we're not going to be able to reduce the number of forces over here ... because there will be more people out there planting bombs and shooting at people."

During the meeting, Raad Rashid al-Tamimi, the governor of Diyala province listed his concerns: finishing a fuel distribution plant in Baqouba, increasing electricity capacity and digging irrigation canals.

"We want to use the land, but it's destroyed," al-Tamimi said of his fertile but violence-stricken province. "We want Diyala to return to being the country's breadbasket."

Other governors complained that security issues still made it difficult for their banks to get cash from the central banks, food ration cards are not delivered on time and corruption at all levels keeps tankers from delivering fuel.

In response, ministers and other Iraqi officials pledged to try to fix problems. Deputy Prime Minister Barham Saleh, the highest-ranking Iraqi official at the meeting, said local authorities will get money and help from Baghdad, but they will be held accountable.

"These budgets must be spent according to procedure," he said.

In another effort to help jump-start the failing economy, the Cabinet agreed to allow the Oil Ministry to sign agreements with international oil companies, a ministry official said Wednesday. The move would help Iraq increase its crude oil output.

The two-year deals would develop five producing fields to add 500,000 barrels per day to the country's current 2.4 million barrels per day output. Developing Iraq's oil reserves is seen as vital to providing the funds to rebuild the shattered country.

In December, four major oil companies — Royal Dutch Shell PLC (RDSB), BP PLC (BP), ExxonMobil Corp. (XOM) and Chevron Corp. (CVX) — submitted technical and financial proposals for the five oil fields and received counterproposals from the Iraqi side.

A month later, representatives from the companies and from Iraq met again in Jordan, and they will hold the third round of discussions later this month, said the official, who spoke on condition of anonymity as he was not authorized to release information.

In dire need of expertise from international oil companies to achieve Oil Ministry's target of 3 million barrels per day by the end of this year, Iraq has been relying on a Saddam-era natural resources law until parliament approves a new oil law to regulate the international oil companies' work and share Iraq's oil resources among the country's Shiites, Sunni Arabs and Kurds.

Iraqi local leaders get rare chance to air issues - USATODAY.com

Another Update.......

Iraq: Big Oil deals could clear late-March

Iraq will wind up negotiations with five Big Oil firms later this month on key fields and soon announce the firms that qualify for an upcoming bidding round.

Oil Ministry spokesman Assem Jihad also confirmed to United Press International via phone the country's Council of Ministers gave its blessing to the ministry's plans.

"The Ministry of Oil has the legal situation to sign contracts according to the oil law," Jihad said. "The Ministry of Oil has that ability."

Later this month Iraqi negotiators will meet with representatives from Shell, BP, Chevron, ExxonMobil and Total for technical support contracts aimed at increasing five of Iraq's largest and oldest fields by 100,000 barrels per day each. The two-year deals are intended to bring equipment, training and further studies.

Jihad said Iraq is considering paying the companies with oil in lieu of cash but is in talks with the United Nations to ensure that's OK.

More than 70 companies, Jihad said -- around 150, according to Oil Minister Hussain al-Shahristani -- have registered to qualify for a bidding round to be held later this month aimed at developing a number of other fields. The ministry is scarce on details but said it will be fully transparent.

Iraq has no new oil law -- relying on the Saddam-era oil regulation -- and plenty of controversy; both are preventing any long-term deals with international oil companies.

Saddam Hussein mismanaged the fields, U.N. sanctions kept out modern equipment, and post-2003 has seen the oil sector attempt to operate in a constant war zone, despite having the world's third-largest reserves.

Iraq's oil workers have kept the country producing just more than 2 million barrels per day. Once largely Western-educated in the oil sector, those who haven't retired, fled or been killed need modern training. They also are urging the government to reinvest in them instead of a wholesale import of international oil companies.

Iraq's Kurdish region has passed its own oil law and signed dozens of deals for exploration after frustrations with Baghdad came to a head.

Jihad also said Shahristani is in Turkey meeting with his counterpart to plan development of Iraq's natural gas sector.

Iraq: Big Oil deals could clear late-March - UPI.com