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

Iraq's parliament faces big challenges revisiting delayed laws, speaker says

Big challenges are ahead of Iraq's parliament when it resumes work March 18 and revisits controversial measures including an oil and gas law and a bill to set up provincial elections, Iraq's parliament speaker said Saturday.

A measure aimed at regulating foreign investment in Iraq's underdeveloped oil sector, and distributing its revenues among the nation's Sunni and Shiite Arab communities and the large Kurdish minority, has been bogged down in parliament since February 2007.

The provincial elections law was approved by parliament last month but was rejected by Iraq's presidential council.

"The biggest challenge ahead of us is the provincial elections law," Mahmoud al-Mashhadani said at a news conference in Baghdad's fortified Green Zone.

In February, Iraq's parliament passed the provincial elections measure along with other two key pieces of legislation: one that allots US$48 billion (€30 billion) for 2008 spending and another that provides limited amnesty to detainees in Iraqi custody.

The three measures were bundled together for one vote to satisfy the demands of minority Kurds who feared they might be double-crossed on their stand that the budget allot 17 percent to their semiautonomous regional government in the north.

Later, Iraq's three-member presidential council approved the 2008 budget and the amnesty law but rejected the provincial elections measure and sent it back to parliament. The presidential council is composed of President Jalal Talabani, a Kurd, Shiite Vice President Adel Abdul-Mahdi and Sunni Vice President Tariq al-Hashemi.

The provincial elections, which were initially scheduled for Oct. 1, would devolve power to some degree from the national government and have been seen as an important step in U.S.-backed national reconciliation efforts.

Abdul-Mahdi, a senior official in the Supreme Iraqi Islamic Council, the country's largest Shiite party, rejected the measure and was supported by the Kurds.

The sticking point was control of the provincial governor's offices.

A provision in the measure allows the Iraqi prime minister to fire a provincial governor, but Abdul-Mahdi's bloc wants that power to rest with the provincial councils, or legislatures, where his party has a strong base of support around the country.

"We do need a serious stance to deal with the next challenge," al-Mashhadani said Saturday.

He urged an "ideal solution," which would be pass the law again as it is, and then follow it with another one that recommends amendments to its disputed provisions "in order not to agitate a political storm and avoid any political tensions."

"We are seeking ... a unified stance to go forward together in the right direction," said al-Mashhadani, a Sunni.

It took weeks of wrangling for the Iraqi parliament to pass the three measures the presidential council reviewed. Even then, al-Mashhadani had to break an 82-82 tie to get the deal through on the last day before the legislature took a five-week break.

The elections measure was only the second of 18 benchmarks set by the Bush administration to achieve national reconciliation.

Iraq's parliament faces big challenges revisiting delayed laws, speaker says - International Herald Tribune

Oil Minister Statements Contradict Iraqi Constitution MP Says

Bayazed Hassan, member in the Oil and Gas Committee at the Iraqi Council of Representatives, told PUKmedia that the Iraqi oil minister Hussein Shahristani’s statements to the Turkish media channels contradict the Iraqi constitution as well as the Iraqi public opinion.

“We are committed to the Iraqi constitution. Article 13 says that this constitution can be worked in all the areas in Iraq. The Kurdistan region’s oil contracts are constitutionally legal. They match with articles 112 and 111 of the constitution. Shahristani’s statements are irrelevant to the constitution,” Bayazed said.

“The Iraqi constitution allows the Kurdistan Regional Government (KRG) to sign such contracts.”

As Bayazed said, KRG consulted with the Professor James Krayford in UK, saying that the KRG oil contracts are constitutionally legal. What Shahristani said is to provoke the neighboring countries against Kurds because some Arab and neighboring countries are unwilling with the KRG oil contracts that were legally signed.

“Shahristani may be incited by the neighboring countries to make such trouble in Iraq. Or he wants to be a hero in the region because he is not popular.

“It would be rather for Shahristani not to engage in aggression against KRG oil contacts and make daily false statement, better for him to take care of his ministry affairs. According to the general inspector‘s recent statement from the ministry, the Iraqi oil ministry does not have enough professional employees enabling how to write making oil refineries contracts,’ Bayazed added.

“Each law, passed by the Iraqi parliament, guarantees the Kurdistan region’s share. As an example, when the law for placing oil refineries in Iraq sent to the parliament did not mention Kurdistan. We are two Kurdish members from the 10 members of the committee who could get Kurdistan region shared in placing the oil refineries.”

“Shahristani’ pressure has no internal or external influence because we depend on the constitution. The neighboring and Arab countries are not authorized to interfere in the Iraqi constitution.

PUKmedia :: English - Oil Minister Statements Contradict Iraqi Constitution MP Says

Basra puts in place emergency measures to restore stability

The provincial authorities in the southern city of Basra are applying new emergency measures in the wake of an upsurge in violence and lawlessness.

More than 5,000 police officers are taking part in the campaign “to pursue outlaws, armed men, smugglers, some tribal groups and illegal militias,” according to the city’s police chief, Lt. Gen. Abduljaleel Khalaf.

The restive city has recently seen a surge in murder incidence and kidnapping.

Khalaf said more reinforcements were on their way to Basra to join the latest campaign to wrest its streets from illegal gunmen.

The campaign targets what Khalaf describes as “criminals and terrorists who have carried out murder, kidnapping and smuggling and have destabilized the city.”

He said his forces would “raid, storm and barge” into residential areas in a bid “to tighten the noose on the criminals and some tribes” which he refused to name.

Basra puts in place emergency measures to restore stability | Iraq Updates

Dollar demand sees upsurge in daily auction

Demand on the dollar saw an upsurge in the opening session of this week's Iraqi Central Bank auction on Sunday, registering a total demand of $114.250 million compared to $51.175 million in the previous session.

"The demand hit $13.050 million in cash, and $101.200 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 22nd session in a row," according to the central bank's daily bulletin received by Aswat al-Iraq – Voices of Iraq – (VOI).

The 12 banks attending the auction offered to sell 1 million dollars all bought by the central bank at a rate of 1,208 dinars per dollar.

Speaking to VOI, Ali al-Yasseri, a trader, said that the demand saw a rise due to the growing volume of government transfers and the bank's stabilization of the exchange rate for several sessions now.

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

Dollar demand sees upsurge in daily auction | Iraq Updates

$600 million profits of Al-Rafidein Bank

Director-General of Al-Rafidein governmental bank, Abdul Hussein Al-Yasiri, said that the efforts "focus now on the restructuring of the bank to develop it and bring it to the ranks of global banks, especially since it was among the best one hundred bank in the world." He pointed out that it profits "exceeded 722 billion dinars (about 600 million dollars) last year, at an increase of %125 from 2006."

Al-Yasiri pointed out that the bank is about to complete linking its branches with each other and then with the rest of the world's banks, to facilitate the process of transferring the amounts received from the international banks to Iraq and vice versa. He pointed out that the cost of this project agreed upon with the British company "Maes" amounted to $10 million dollars."

He announced that the bank "occupied %70 of the area of banking operations in Iraq and the loans it granted have increased %100." The losses of the bank resulted from the looting during the fall of the former regime in 2003 reached 476 billion dinars, and its blocked deposits hit $800 million in many States."

$600 million profits of Al-Rafidein Bank | Iraq Updates

Finance Ministry decides to stop tax salary retroactively
Preparing a plan for developing the Retirement Law

The Ministry of Finance suspended work by the pension tax assessed on the salaries of staff, of ongoing service, retroactively to support their salaries. The ministry is also seeking to open banks in many countries of the world to provide services to the Iraqis living there.

Mohammed Al-Hariri, the Office Director of the Minister of Finance said that the retirement law approved by Parliament, and about to be implemented soon, is the first step towards improving the living conditions of the retirees segment and will be followed by other constitutional steps to redress them more, noting that the increase in the salaries of this segment does not meet their needs if compared to the high prices of foodstuffs, oil derivatives and others. He added that a new salary grading, which includes new staff, does not meet their financial needs; therefore, the ministry adopted a method to increase their allocations and stop the pension tax that was deducted from them retroactively from 2008/1/1 to upgrade their living and support their salaries with additional amounts.

The Ministry has prepared a plan for the economic and financial opening and cooperation with all nations of the world through the twinning of banks and financial exchanges; the ministry is seeking to open a number of banks in most countries of the world, to provide services to Iraqis, except in those suffering from economic and financial problems, according to the resolutions of the United Nations because Iraq is keen to implement these decisions.

The Office Director of the Minister of Finance revealed that there is a trend in some provinces to convert palaces belonging to the former regime into tourist places and museums; a committee was already formed to update coordination with the Ministry of Tourism and Antiquities, governors and the Ministry of Finance, noting that there are palaces in some governorates still exploited by multinational forces. As for the property owned by the State and have been exploited by some political parties and figures, Al-Hariri reported that there is a specialized body that has began to address these abuses, and has already succeeded in raising some of them and it is working to treat what is left of them.

He said that properties of the tyrant Saddam and his family had been confiscated in accordance with the law and was supposed to be sold at auction but this was delayed until counting them completely. He explained that the ministry is also pursuing the money of Saddam and his family in international banks because such funds belong to the Iraqi people; it has succeeded in collecting part of the assessments and the latest amount was $3 million deposited in a German bank.

Al-Hariri disclosed that Iraq will participate on March (11) in the OPEC Fund meetings in Vienna to contribute to the support of projects to be set up in poor countries, especially that Iraq is a leading member in this Fund.

Finance Ministry decides to stop tax salary retroactively | Iraq Updates

Hunt CEO: 'Higher Price Here to Stay...Market Will Sort Things Out'

Hunt Oil Co. chief executive Ray Hunt is an economist, not a geologist or an engineer, like so many of his peers.

So when he says of oil markets, "This higher price regime is here to stay," he talks about gross domestic product, not difficult drilling conditions or expensive oilfield equipment.

Mr. Hunt said in a speech Thursday to the Texas Energy Council that he's long predicted that higher oil prices would persist because people in developing countries are close to a tipping point in energy use.

With a small boost to the economy in, say, Vietnam or China, some people can buy their first cars or washing machines and begin using a lot more fuel, boosting global oil demand and prices. The same small economic gain in the U.S. wouldn't increase energy consumption so much, he said.

Further, oil and gasoline prices seem so high to Americans because the dollar is weak. Translate the prices to the stronger euro, and fuel is more affordable, said Mr. Hunt, who earned a degree in economics from Southern Methodist University, where he spoke Thursday.

Crude oil futures rose to another record close Thursday, boosted by the dollar's continuing slide to new lows against the euro. Light, sweet crude for April delivery rose 95 cents to settle at a record $105.47 a barrel on the New York Mercantile Exchange.

Some oil executives worry the world could face an oil shortage in coming decades if oil companies don't invest enough to drill new wells, or governments don't allow production.

But Mr. Hunt said he's confident markets can sort things out.

As oil becomes more difficult or expensive to produce, people will experiment with new technology to draw out even the most stubborn oil, he said. High oil prices make people more willing to try new things.

Mr. Hunt said he works hard to develop contrarian views and encourages employees to do the same. According to Mr. Hunt, that's one of the five characteristics that separate great companies from good ones.

He listed those characteristics in his speech:

--A strong corporate culture, with shared values and work ethic. "If you have a group of men and women with shared personal values and work ethic, they can do anything," he said.

--Ability to differentiate yourself: "If you're like everybody else, that means you're average."

--Adaptability. "Darwin had it right," he said. Species survive not because they're the smartest or strongest, but because they're the most adaptable.

--Speed of adaptability.

--Willingness to be contrarian. He believes the future will reward contrarians even more than the past rewarded them.

"If you see the whole industry going in some direction, you will not find us there," he said.

He pointed to his bet in 1981 that Hunt could produce oil in Yemen, which had no production at that point. The company gained rich rewards from that move.

More recently, Hunt Oil signed a deal to explore for oil in northern Iraq. Mr. Hunt declined to say how that program is going.

And Mr. Hunt expects his employees to make mistakes. If someone has a perfect year, Mr. Hunt said, he concludes the employee wasn't aggressive enough.

"There is no penalty in our company for having a bad idea," he said.

Hunt CEO: 'Higher Price Here to Stay...Market Will Sort Things Out' | Iraq Updates

Thi Qar's reserve of oil is 6 billion barrels
Establishing a company to promote the production of Maysan governorate

Governor of Thi Qar, Aziz Kazim Alwan, said that there is a large reserve of crude oil in the governorate, about 6 billion barrels, referring to the efforts being made to prepare the civil works and location of land for the establishment of the city of oil, which was announced by the Iraqi Oil Minister Hussein Al-Shahrastani, and will be the largest oil fields in Iraq. Aziz pointed out that there are three oil fields in Thi Qar (400 kilometers south of Baghdad) produce 550 thousand barrels of crude oil per day: 300 thousand in the fields of Nasiriyah, 140 thousand in Gharraf and 110 thousand in Al-Rafidain field.

Deputy Chairman of Maysan City Council said that the aim of founding an independent company called "Maysan Oil Company" and separating it from the South Oil Company is that the Maysan is an oil-producing governorate and stores the oil reserve of the country. A source at the new company said, "the governorate now produces 120 thousand barrels per day, with the exception of the fields under rehabilitation which include: Al-Nour fields, Al-Fakkah, the northern Abu Gharb and Al-Halfawiyeh." He pointed out that there are many undiscovered sites which require sophisticated equipments to reduce the time and effort, stressing that the company cadres have good experience in this area, and have worked previously on the rehabilitation and development of oil fields.

Official sources in the Iraqi Oil Ministry revealed that it estimated the total inventory of crude oil in Maysan governorate byt 30 billion barrels, nine billion barrels of which are apt to extraction and investment, while the remaining quantities need expertise and efforts of high technology. The fields that are apt for investment are: Al-bazarkan, Al-Fakkah, Abu Gharb, Al-Imarah and Al-Halfawiyeh. He pointed out that these fields produce more than 125 thousand barrels per day, while there are fields ready for immediate production in the province, including: the border Al-Huwezah, Al-Nour, Kumeit and Al-Digeilah.

Thi Qar's reserve of oil is 6 billion barrels | Iraq Updates

Update.......

The first exhibition of national trade and industry

The Iraqi Company for Exhibitions organized a press conference on the trade and industry exhibition as the largest national economic demonstration executed in Baghdad International Fair, with the participation of more than 100 national companies from the public and private sectors, which coincides with the reconstruction and investment year in Iraq, and during the second half of next April.

Sabti Jumaa, director general of the Iraqi Exhibitions, said during the press conference that the Company supports all organizations and sectors which seeks to establish national specialized exhibitions and various activities because these sectors grow when they receive support and backing.

He added that the participation of national industrial and commercial sectors will encourage these sectors to regain their active national role in supporting the Iraqi economy and improve its growth to take its role within the framework of national development. He pointed out that his ministry will participate in several international specialized exhibitions, including Cairo International Fair, Gazi Intab and Damascus during this year.

He called during the conference every journalist to support this economic demonstration which he hoped to be a great success.

The first exhibition of national trade and industry | Iraq Updates

Various activities in ISX last February

Executive Director of Iraq market for securities, Taha Ahmed Abdul Salam, said that last February witnessed various activities summarized by 11 exchange sessions at three meetings a week except for one meeting was cancelled because it coincided with the occasion of Imam Al-Hussein (p) visit.

He said in a press release that the number of shares circulated during last month amounted to (15) billion shares worth (16) billion dinars achieved through the implementation of 3165 negotiable deal, while the total number of shares circulated for non-Iraqi investors was (1.1) billion shares worth (1.8) billion dinars. The market index had closed in the first circulation session at 134.1 points and closed at the last circulation session of the month to 36.1 points, up by 5.8%. He pointed out that the market management had organized a meeting with participant sections in 50 joint stock companies for training on the mechanism of transferring contributors' data from the companies' systems to market electronic systems. The Board of Governors held its fifth regular meeting for this month in addition to holding four meetings with the experts assigned to the electronic circulation project. Abdul Salam also pointed out to the completion of organizing the special reports of the European and Asian Union for Bourses and posted on the market site in the Union.

He explained that the market continues cooperating with the Securities Body in following-up the enlisted shareholding companies, as a delegation from Iraq Market for Securities, a number of experts and Iraqi officials participated in the work of the Joint Conference, which was organized by the Jordanian Securities, Amman Exchange and Jordanian Depository Centre. The conference held in the Jordanian capital during last February and lasted two days, discussed the Jordanian experience in the field of capital market and the Iraqi experiment in regulating the capital market. During the first day of the conference, Chairman of the Jordanian Securities, D. Bassam Al-Saket, the Executive Director of Amman Stock Exchange, Jaleel Tareeq and Director of the Jordanian Depository Centre, Samir Jredat, gave special lectures on legislation in organizing the Jordanian capital market, the evolution of the activity of the Jordanian institutions and the transition from the manual to the electronic style in circulation. Also, Chairman of Iraq Securities Body, Abdul Razzaq Al-Saadi, and the Executive Director of the market gave lectures on the capital market's activity and its development in Iraq, as well as the work done in the area of legislation and benefiting from the Jordanian experience and international standards adopted in the global laws.

Various activities in ISX last February | Iraq Updates