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

OPEC doesn’t control oil prices but ensures market stability: Kuwaiti oil official

Mohamamd Al Aalim, Kuwaiti Energy Minister Chargé D’affaires affirmed that record high oil prices has nothing to do with oil market yet the high prices are caused by speculations and international political tensions. He added that the limitation of refining capability in USA influenced the increase of prices as well.

Aalim added that OPEC does not control oil prices but it works in order to ensure the stability of the market. On another hand, US crude oil price decreased sharply today, i.e. more than $ after it had reached an all-times record of $112 per barrel. In the meantime dollar is still declining.

In the meantime, US Vice-President Dick Cheney said that high oil prices that exceeded $100 per barrel reflects the reality of the market and that there is a limited excess in productivity.

Mohamamd Al Aalim, Kuwaiti Energy Minister Chargé D’affaires affirmed that record high oil prices has nothing to do with oil market yet the high prices are caused by speculations and international political tensions. He added that the limitation of refining capability in USA influenced the increase of prices as well.

Aalim added that OPEC does not control oil prices but it works in order to ensure the stability of the market. On another hand, US crude oil price decreased sharply today, i.e. more than $ after it had reached an all-times record of $112 per barrel. In the meantime dollar is still declining.

In the meantime, US Vice-President Dick Cheney said that high oil prices that exceeded $100 per barrel reflects the reality of the market and that there is a limited excess in productivity.

OPEC doesn’t control oil prices but ensures market stability: Kuwaiti oil official | Economics News | Alsumaria Iraqi Satellite TV Network

Money forging trend spread in Iraq

The phenomenon of money forge is one of the trends that are currently spread in the country in the light of the weakness of monitoring authorities. However, economists considered that it affects national economy negatively.

Money forging trend spread in Iraq | Economics News | Alsumaria Iraqi Satellite TV Network

IMF Managing Director: Current financial crisis to carry on

Managing Director of the International Monetary Fund Dominique Strauss-Khan said that the current financial crisis will carry on for a long time and that it would have grave economic repercussions. He also pointed out that developing countries would suffer from the outcome of this crisis that has already reached USA and progressed countries.

IMF Managing Director: Current financial crisis to carry on | Economics News | Alsumaria Iraqi Satellite TV Network

Lets hope Iraq isn't considered a 'progressed country' by the IMF

I think I posted something about this yesterday - but in case I didn't......

Basra Development Committee holds conference in Kuwait

Basra Development Committee held its first conference in Kuwait. The conference aims to encourage Kuwaiti investors to invest in Basra Province and to inform them about the most important investment opportunities in industry, agriculture and tourism sectors.

During the conference the committee presented its strategy and targets that aim at developing the different sectors that need investments to be spent in, such as: oil, electricity, agriculture and industry and that in order to boost economic situation and to enhance farewell.

Basra Development Committee holds conference in Kuwait | Economics News | Alsumaria Iraqi Satellite TV Network

This is from last Friday, but has only just been published........

Arab states urged to bring Iraq in from cold

Arab lawmakers urged Middle East states on Thursday to resume diplomatic links with Iraq, after the largest gathering of Arab officials in the country since before the first Gulf War in 1991.

"The conference urges Arab countries to quickly re-establish diplomatic ties with Iraq. The conference confirms its desire for a unified Iraq and respect for the choice of its people, and urges our Arab brothers to support this." The Arab Inter-Parliamentary Union said in a statement after a three-day long meeting in the northern Iraqi city of Arbil which ended on Thursday.

Iraq's parliamentary speaker Mahmoud al-Mashhadani told state television the conference showed Iraq had returned to good health and that "Arab countries have now embraced Iraq".

The lawmakers' meeting was held in Kurdistan because the semi-autonomous northern region is among the most stable areas of the country.

Officials from Kuwait attending the conference were the first to visit Iraq since it invaded its neighbor in 1991, triggering the first Gulf War.

"With our presence ... we hope to break barriers between Iraq and Kuwait and we were keen that this conference be held in Iraq," Kuwaiti delegation member Waleed al-Tabataba'i said.

As well as urging Arab countries to accept Iraq back into their fold, the meeting addressed other issues across the Middle East. Iraqi President Jalal Talabani and Kurdish President Masoud Barzani both attended on the final day.

Iraq Development Program - Arab states urged to bring Iraq in from cold

Iraqi reconciliation conference in Japan on Friday

Independent lawmaker Wa'el Abdul-Lateef said on Wednesday that the Japanese government will host an Iraqi reconciliation conference in Tokyo – capital city of Japan, that will start on Friday March 21, 2008, and will continue for ten days with the participation of many Iraqi legislatures from different parliamentary blocs.

Prior to his trip to Jordan, on the way to Japan, Abdul-Lateef said to Aswat al-Iraq – Voices of Iraq – (VOI), "The conference, sponsored by the Japanese government, comes as part of a series of meetings that discuss the reconciliation issue that previously took place in different countries, such as Denmark, Italy, Turkey, Egypt, and Jordan, and it offers an opportunity to hear the different Iraqi parties' views concerning the reconciliation project, and the measures that should be taken in this regard."

He added, "The conference will be attended by Salih Al-Motlaq – Head of the National Dialogue Front (NDF), Qassim Al-Amiri – United Iraqi Coalition (UIC), Abd Motlaq Al-Jubori – The Arab Entity, Khalaf Al-Ilayian and Sa'ad Al-Obaidi – Iraqi Accordance Front (IAF), in addition to some other politicians and media figures."

The latest reconciliation conference that took place outside of Iraq was in Beirut – capital city of Lebanon, and witnessed the participation of different political forces.

Iraqi reconciliation conference in Japan on Friday | Iraq Updates

Iraq urges Canada to train Iraqis in financial accountant fields

Iraqi Finance Minister Baqer Jabr al-Zubeidi on Tuesday called on the Canadian government to organize courses to train Iraqis in the financial and accountant fields.

"This came during the minister's meeting with Canadian Charge d' Affaires Alyaa Maway," according to a statement released by the Finance Ministry and received by Aswat al-Iraq - Voices of Iraq - (VOI).

"The meeting dealt with means to bolster bilateral relations in various domains," the statement added.

"The minister asserted the Iraqi government's keenness to develop ties with Canada, mainly in the Canadian companies' contribution in reconstruction operations and rehabilitating Iraq's infrastructure," the statement noted.

"For her part, the Canadian official underlined her government's keenness to develop the economic and financial cooperation with Iraq, through investment and commercial exchange," it added.

Iraq urges Canada to train Iraqis in financial accountant fields | Iraq Updates

Demand for dollar higher in daily auction

Demand for the dollar was up in the Iraqi Central Bank's auction on Wednesday, registering at $130.705 million compared to $78.260 million on Tuesday.

"The demand hit $17.635 million in cash and $113.070 million in money transfers outside the country, all covered by the bank at an exchange rate of 1,208 Iraqi dinars per dollar, unchanged for the second session in a row, " according to the central bank's daily bulletin which was received by Aswat al-Iraq- Voices of Iraq- (VOI).

None of the 14 banks that participated in the auction offered to sell dollars.

Speaking to VOI, Ali al-Yasseri, a trader, said that remittances was high in today's session raising the overall demand for the dollar.

Al-Yasseri added "the hike is also attributed to the cancellation of tomorrow's auction session as it is coincided with a religious holiday in Iraq marking Prophet Mohammed birth anniversary."

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

Demand for dollar higher in daily auction | Iraq Updates

Sorry if already posted......

KRG revises oil deals with DNO
Relationship between the oil company and Kurdistan Region remain "strong"

As PSCs in the Region remain valid, Iraqi Oil Minister Shahristani is called upon by the Council of Representatives to address claims of corruption in his ministry.

The Norwegian oil company DNO, which has oil contracts with the Kurdistan Regional Government (KRG), announced in a statement posted on its official Web site on Friday, March 14, that it has signed revised production-sharing contracts (PSCs) with the KRG.

The revision includes Duhok and Erbil license areas. The Duhok area has been divided into two separate fields, one for the Tawke oilfield and the other for the rest of the Duhok area.

Regarding the Erbil area, the DNO statement mentions that the exploration well has been testing approximately 9,000 barrels of oil per day and 11 million standard cubic feet per day from an open-hole test in the Jurassic interval. Thus, now DNO holds three PSCs with the KRG: Tawke PSC with a working interest to DNO of 55%; Duhok PSC with a working interest to the DNO of 40%; and Erbil PSC with a working interest to DNO of 40%.

"Signing the three PSCs represents a new and important milestone in the joint cooperation between our partner KRG and DNO," said Helge Eide, managing director of DNO, regarding the PSCs.

KRG Minister of Natural Resources Ashti Hawrami described the amendments as successful and the KRG's relationship with DNO as strong.

"The KRG is very pleased with the outcome of this review. DNO has been a long-term friend of the Kurdistan Region, and we look forward to a continued strong relationship," Hawrami says. "This completed review with DNO means that all of the KRG's existing contracts have been successfully reviewed. With very promising well-testing in recent months, DNO is ready to export oil from the Region, and we will ensure that they are able to do so. This will be a tremendous benefit for the Region and all of Iraq."

DNO was among the first oil companies to invest in Kurdistan Region's oil, and despite the Iraqi Minister of Oil's threats and statements against the KRG PSCs and the international oil companies that hold those contracts, it is still determined to continue its business in the region.

Jamal Abdulla, KRG Ministerial Council spokesman, says that the amendments were all aimed at bringing them into conformity with the Region's Oil and Gas Law, approved in August 2007 by Kurdish Parliament.

After waiting for the national Oil and Gas Law for a long time, Kurdistan decided to pass its own regional law and invest its oil resources, and it signed 25 oil deals with foreign oil companies.

"In February last year, we drafted the national Oil and Gas Law and the Iraqi Ministerial Council approved it and forwarded it to the Council of Representatives," said Abdullah. "At the same time [February 2007], we reached an agreement with Baghdad that Kurdistan would wait until May 2007 for the national law to be passed; if not, Kurdistan could pass its own law and sign deals with oil companies."

The KRG waited for more than the agreed time, i.e., until August, and then it passed a regional oil law and started signing PSCs within total conformity of the Iraqi Constitution, as they claim.

Despite the KRG's constitutionality claims regarding the oil contracts, Iraqi Oil Minister Hussein al-Shahristani described the deals as illegal several times and vowed to dissolve them; he warned the oil companies not to sign KRG contracts and threatened them.

However, none of the companies canceled their agreements with the KRG or even suspended their exploration and drilling works in the region.

The Iraqi Council of Representatives is planning to work on the Oil and Gas Law during its spring term. Jamal Abdullah says that the political groups must reach an agreement about the law before discussing it inside Parliament.

Meanwhile, the Council of Representatives has called on Shahristani to give explanations about the oil revenues of the country. There are claims of corruption in the Oil Ministry and discrepancies in the statistics of the revenues from oil. Some sources claim that Shahristani reported the price of oil as $57 per barrel while the actual selling price was $88, and that this difference to be cleared by the minister in front of Parliament.

Ibrahim Bahrul Olum, ex oil minister, claims that due to lack of expertise 60% of Iraq's natural gas is wasted. He suggests that a suitable person should be elected for the post of oil minister far from political tendencies-one who can utilize oil resources to maximize the welfare of the Iraqi people.

Saadi Barzanji, member of Iraqi Parliament, believes that Shahristani has been a major barrier in the way of improvements of the country's electricity supply by not making efforts to use the country's resources to generate power and distribute it to all Iraqis.

KRG revises oil deals with DNO | Iraq Updates

Iraq Delegation Visits La. Lease Sale

Four officials of Iraq's oil ministry are in New Orleans for an auction of federal offshore petroleum leases.

The officials came to Wednesday's sale of leases in the eastern Gulf of Mexico as part of a long-term effort for Iraq to improve management of its oil resources.

U.S. Minerals Management Service official Kevin Kunkel says the agency has been working for about two years with Iraq. Ministry delegations also have exchanged ideas with officials in Great Britain and Norway.

The head of the delegation, Hussein Al-Hasoon, the ministry's chief engineer, says he hopes the visit results in "future cooperation between the oil ministry and MMS."

The delegation also met with Interior Secretary Dirk Kempthorne before the sale.

Iraq Delegation Visits La. Lease Sale | Iraq Updates