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

Iraqi army takes control over old Baghdad-Baaquba road

Iraqi troops took control over the old road linking Baghdad to Baaquba on Thursday, the Iraqi military said.

“5th division army forces stationed in Diala, backed by multi-national troops, took control over the old road linking Baaquba to Khan Bani Saad district, a suburb between Baghdad and Diala provinces,” the military source, who requested anonymity, told Aswat al-Iraq - Voices of Iraq - (VOI).

The source pointed out “the Iraqi forces set up five checkpoints on the road linking Baghdad to Baaquba with Diala province’s administrative border and operate mobile patrols to secure the way for passengers.”

The old road linking Baghdad to Baaquba, 40 km long, saw violent clashes between U.S.-Iraqi forces and the gunmen of the self-named Islamic state of Iraq who mounted their activities lately against passengers who took the way within Diala province’ borders
Baaquba, the capital of Diala province, lies 57 km north-east Baghdad.

Aswat Aliraq

Update......

Baiji refinery to resume operating after 2 days

Officials in Baiji refinery said that electricity power cut forced the closure of the refinery and that it would stay closed for two days. A source in the refinery affirmed that the power cut is caused by a technical hindrance in the main electricity plant. The same source added that it would take up to two days for the plant to resume working.

However, an official in Electricity Ministry denounced news stating that the ministry cut power supply.

Alsumaria Iraqi Satellite TV Network | Economics News | Baiji refinery to resume operating after 2 days

Cabinet sorts out smuggling liquid batteries issue

Industry and Minerals Ministry informed the Cabinet about the phenomenon of smuggling used liquid batteries which is increasing lately. This kind of batteries contains plumb which have an important economic importance, since this material can be extracted and used after recycling the same. A Source in the ministry pointed out that the same also tackled the issue with customs and informed them of the necessity of taking the necessary measures in order to limit smuggling these materials and to inform the ministry when they seize quantities thereof in order to send a specialized team to receive these materials and transports them to the benefiting company.

To that, Cabinet issued an announcement to all the relevant Ministries and parties not related to the ministry, in which it binds all the parties to bring the used batteries back to the specialized company.

Alsumaria Iraqi Satellite TV Network | Economics News | Cabinet sorts out smuggling liquid batteries issue

Industrial Bank to open new branches

Iraq industrial Bank places opening new branches in Al Najaf Province among its priorities for the current year, considering that Al Najaf is an important tourist, religious and economic center. Establishing new branches would enable it to provide services for industrials and commercials. Moreover, opening two other branches in Karbal’ and Al Kazimia city would help to extend the geographic area in which services are provided and to allow the same to the biggest number of citizens. To that, the plan includes extending the Bank’s activities to other Iraqi Provinces.

Alsumaria Iraqi Satellite TV Network | Economics News | Industrial Bank to open new branches

Oil barrel price exceeds 100$ for the first time in history

The price of oil barrel has exceeded 100$ for the first time in history, which has activated world markets and intensified international political contacts to avoid what it seems as the third oil shock. Factors influencing petrol prices are multiple including offer and demand in addition to internal and external wars in productive countries, as well as the role of productive companies and last but not least the effect of OPEC in comparison with different political equations.

Oil issue was strongly brought in the tour of US President Georges W Bush to the Middle East, which had him to interfere directly when meeting Saudi King Abdullah Ben Abdul Aziz to pressure OPEC in order to increase oil production in view of decreasing oil prices, which affect world’s economy growth. Saudi Minister of Petrol and Mineral Wealth Ali Al Nuaimi stressed on the special relations between Washington and Riyadh. He explained that petroleum relations between the United States and Saudi Arabia are beyond imports and exports despite the fact that petrol is a vital product of common interest for both sides.

On the other hand, Iran considers that oil prices decrease ********* by six dollars does not justify production increase called for by Washington. Record oil prices have led IAEA to draw down expectations on oil demand. The Agency noted that oil prices leap reflects decrease of oil stocks.

For his part, OPEC Secretary General Abdullah Al Badri said that world oil stocks are not low, expressing OPEC’s willingness to increase production in its next meeting if conditions of world demand and offer are met.

Alsumaria Iraqi Satellite TV Network | Economics News | Oil barrel price exceeds 100$ for the first time in history

Aecom Technology Gets Two Iraq Contracts

Aecom Technology Corp., which offers technical and management services for government and commercial clients, said Wednesday it received two new Defense Department contracts valued up to $270.9 million for maintenance support in Iraq.

The first is a two-year, $208 million contract that began on Jan. 1, and the second is a one-year, $62.9 million contract that began on Jan. 7.

Aecom Technology Gets Two Iraq Contracts

IMF sees Iraq economy, oil output recovering

Iraq's economy is expected to find stability in 2008-2009 despite political and security problems as oil production recovers and the government moves ahead with reforms, the IMF said.

Mohsin Khan, director of the International Monetary Fund's Middle East and Central Asia department, said that Iraqi gross domestic product (GDP) growth would likely top seven percent this year and hold between 7 and 8 pct in 2009.

Oil production, which accounts for 70 pct of the war-ravaged country's GDP activity, is expected to increase 'at least' by 200,000 barrels per day (bpd) in 2008, he said in a news teleconference.

The IMF estimates Iraq produced two million bpd in 2006-2007.

Khan said the IMF's full-year 2007 forecast of 1.3 pct GDP growth for Iraq was based on non-oil data from the first six months and probably will be revised upward.

'There was an improvement in economic activity' in the second half of the year with an improvement in security, he said, citing 'anecdotal' evidence.

Oil production picked up in the fourth quarter and retail services are improving, he said.

'We're expecting a significant jump in growth,' he said.

http://www.iraqdirectory.com/DisplayNews.aspx?id=5364

Norwegian DNO says Iraq well shows signs of oil

Norwegian independent oil company DNO, said on Thursday that an exploration well in Iraq showed "strong indications" of oil.

"As a result of these observations an extensive test programme will be carried out in the well," DNO said in a statement.

The company, whose production comes mainly from fields in Yemen, said its output in the fourth quarter fell to 15,762 barrels per day (bpd) from an earlier reported 19,685 bpd in the third quarter, at a realised oil price in the quarter of $72.71 per barrel.

Exit production for 2007 rose 40 percent from 2006 to 18,000 bpd, said DNO. DNO, whose target had been to produce 15,000-17,000 bpd on average last year, said its average production in 2007 was at 15,198 bpd.

Shares in DNO rose 1 percent to 7.98 Norwegian crowns by 1347 GMT, valuing the company at about 7 billion crowns ($1.3 billion), while the Oslo bourse's benchmark index was up 0.5 percent.

DNO said that its share of production from the Tawke field in the Kurdish part of north Iraq, fell to 4,914 bpd in December from 5,882 bpd in November.

"The slight drop in Tawke production in December compared to November was due to the holiday season during second half of December," DNO said.

The company's value depends largely on expectations of future production from the Iraq asset which it holds under a production sharing agreement with the Kurdistan regional authority.

In Yemen, the Berhout exploration well which started drilling in November 2007, was dry, and was therefore plugged and abandoned, DNO said.

From November, DNO's production from fields off Norway is included in the associated company Det norske oljeselskap ASA DETNOR.OL, the company said in December.

UPDATE 2-Norwegian DNO says Iraq well shows signs of oil | Industries | Energy | Reuters

Iraq Ends Cooperation With Oil Firms That Signed Deals With Kurds
The Iraqi Oil Ministry has decided to stop cooperating with international oil companies participating in production-sharing contracts with the Kurdish regional administration in northern Iraq, an official said Thursday.

The decision is considered a first step toward implementing the ministry's threats to blacklist and exclude these companies from any future deals with Baghdad if they refuse to abandon their oil deals with the self-ruling Kurdish government.

Four companies are thought to have agreements with both Oil Ministry and with Kurdistan: the United Arab Emirates' Crescent, Canada's Western Oil Sands and Heritage Oil, India's Reliance Industries and Austria's OMV.

The Kurds are a key group within the national governing coalition and have been Washington's most reliable allies in Iraq. Since the ouster of Saddam Hussein they have forged a close relationship with the majority Shiites.

But assertive acts by the Kurds, such as the refusal to fly the Iraqi national flag in the region, have irritated the Shiite-dominated government in Baghdad as well as Sunni Arabs. Many see such gestures and the recent oil deals as a threat to the country's national unity.

The Oil Ministry's decision came days after 145 Iraqi Arab lawmakers from rival sects joined forces to criticize what they claim is overreaching by the Kurds, alleging the powerful U.S.-backed minority's go-it-alone style threatens national unity. They took issue with Kurdish ambitions in the disputed northern city of Kirkuk and in negotiating deals with foreign oil companies without involving the central government.

With the national oil and gas law stuck in dispute between the Kurds and Arab leaders over who has the final say in managing oil and gas fields, the Kurds have signed 15 production-sharing contracts with 20 international oil companies. The Oil Ministry considers those contracts illegal.

As of Dec. 31, the Oil Ministry ended South Korea's SK Energy's term contract to import Basra crude oil because it refused to abandon its exploration project in Kurdistan as part of a consortium led by the state-run Korea National Oil Corp.

Another aspect of cooperation being halted is the one-year memorandums of understanding the ministry has signed with about 40 international oil companies since 2004, including the four believed to have signed oil deals with the Kurdish regional administration.

Under these memorandums, which are up for renewal every year, companies offer the Oil Ministry free technical support for specific oil and gas fields and some provide training for ministry staff.

In return, the ministry provides data on the fields for which it was seeking help, though these memorandums are not considered a commitment to awarding these fields to the companies in the future.

"They will be canceled as well," added the official, who spoke on condition of anonymity because he was not authorized to release information to media.

A spokeswoman for Reliance Industries, who declined to be named, said the company has not received any official communication from the Iraqi government. She said the firm hoped any possible issues will be resolved without affecting business.

Last year, the Iraqi-owned, UAE-based Crescent signed a series of deals with Kurdistan through subsidiary Dana Gas.

Canada's Heritage Oil signed a deal with Kurdistan last October for the Miran Block in Sulaimaniyah province. Western Oil Sands is working on three structures in Kurdistan's Zagros Fold Belt, under an agreement signed in mid-2006 and ratified in March.

Another production-sharing contract was signed last November between Reliance and the Kurdish regional government for the Rovi and Sarta Blocks through Dubai-based subsidiary Reliance Exploration and Production.

Also in November, Austria's OMV signed similar contracts for the Mala Omar and Shorish Blocks in the Irbil area.

FOXNews.com - Iraq Ends Cooperation With Oil Firms That Signed Deals With Kurds - International News | News of the World | Middle East News | Europe News

Iraq may face oil sale shortfall

LONDON: A halt in crude oil pumping along Iraq's northern pipeline to Turkey raises doubts about Baghdad's ability to meet commitments to sell more than 300,000 barrels per day, traders said yesterday.

Iraq has stopped pumping oil along the pipeline after a power cut at Kirkuk's oilfields, the Iraqi Oil Ministry said.

The halt has reduced stocks at Turkey's Ceyhan port to between 400,000 and 500,000 barrels, according to a shipping source.

"The longer it's closed the more concerned we become," said a trader whose company buys Kirkuk. "It could be very difficult with stocks so low," he said, when asked whether Iraq could meet its contract volume.

A delay would hinder Iraq's efforts to boost revenue from oil exports, which have been mostly taking place from the south.

With oil prices near a record high, world markets would also notice the supply loss.

Baghdad allocated the Kirkuk volume in the wake of more reliable flows along the pipeline, which has been idled by sabotage and technical problems for much of the time since the US-led invasion in March 2003.

An engineer at the Kirkuk fields in northern Iraq confirmed that a power cut was to blame for the halt in pumping, while an Iraqi oil official said he expected exports to restart soon.

"There is plenty of oil stored in Iraq and we expect to resume pumping as soon as possible," the official told Reuters.

"We're aiming to export at least 350,000 (barrels per day) in February."
So far, Iraq has committed to sell 327,000 bpd of the crude in term contracts.

Some in the industry remain sceptical that Iraq will sustain a regular flow of Kirkuk. A previous attempt to do so proved short-lived due to renewed bombing of the pipeline.

Four tankers are expected to arrive at Ceyhan in the period to January 28 to take Kirkuk crude, according to shipping industry sources.

</title> </head> <body topmargin="0" leftmargin="0" rightmargin="0" bottommargin="0" marginwidth="0" marginheight="0"> <div align="left"> <table border="0" width="1000" cellspacing="0" cellpadding="0" id="table1"> <tr> <td valign=top> <div align="lef