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

2008 budget vote on Monday - MP

The Iraqi parliament will vote on the draft 2008 budget law this Monday, an MP from the Kurdistan Coalition (KC) said.

"The coalition's stance on the budget remains the same," MP Tanya Talaat told Aswat al-Iraq, Voices of Iraq, (VOI), adding, "The coalition's demand for allocating 17% of the budget to the Kurdistan region is a constitutional entitlement."
The parliamentarian called for conducting a census of Iraq's population, according to which allocations to provinces should be made.

On Thursday, the Iraqi parliament failed to pass the 2008 federal budget law due to objections from the Sunni Iraqi Accordance Front (IAF), the Iraqi National List (INL) and the Shiite Unified Iraqi Coalition (UIC) to Kurdistan's proposed share of the general budget.

Aswat Aliraq

IAF hasn't decided on return to govt. yet – Dulaimi

The Sunni Iraqi Accordance Front has not decided yet to return to the Iraqi government, said IAF leader Adnan al-Dulaimi, adding negotiations with the government were "positive" though.

"Negotiations with the government on the return of the withdrawing IAF ministers were still going on and were positive as the government expressed readiness to meet the front's demands including the release of detainees," Dulaimi said in statements to Aswat al-Iraq – Voices of Iraq – (VOI).

Asked whether the same resigned ministers would return in case the IAF decided to re-join the government of Prime Minister Nouri al-Maliki, Dulaimi said the front would decide on this matter in its due time.

The IAF is the third largest bloc in the Iraqi parliament with 44 out of a total 275 seats, after the Shiite Unified Iraqi Coalition (UIC)'s 83 seats and the Kurdistan Coalition (KC)'s 55 seats.

The IAF had quit its five ministers and deputy premier from Maliki's government in August 2007, linking its return to have demands, including the release of detainees from Iraqi jails, met.

Aswat Aliraq

Kurdistan’s share of Iraq budget debated

Kurdistan’s share of Iraq state’s budget in addition to the crisis of the existing government are highly debated issues in Iraq mainly after Kurdistan regional government representatives in Parliament refused the share allocated for Kurdistan out of Iraq’s budget.

In this context, the Planning Ministry clarified last Thursday that Kurdistan’s share of Iraqi budget is estimated at 14.5% of the state budget according to a number of residents therein, which has spurred different debates.

In order to overcome the delay of state budget ratification, officials from Najaf City have stated on Alsumaria a proposal to the government and Parliament that calls for allocating amounts of money as loans.

Kurdistan’s share of Iraq budget debated | Iraq News | Alsumaria Iraqi Satellite TV Network

Update........

Accordance:Iraq heads towards new government

Accordance Front spokesman MP Salim Abdullah revealed that there is a quasi agreement between the government, Accordance Front and Iraqi List as well as Kurdistan Alliance and Iraq’s Islamic Supreme Council on the resignation of the existing government presided by Prime Minister Nuri Al Maliki and the announcement of a new government headed by Al Maliki at a time when ministries are being redistributed among political blocs. Abdullah told Al Sharq Al Awsat newspaper that the new government will be based upon guarantees of the participation of political blocs in political decision making noting that the Accordance Front is working on two parallel directions either to return its ministers to government or form a new government including Accordance Front, Iraqi List, and Al Fadhila.

Accordance:Iraq heads towards new government | Iraq News | Alsumaria Iraqi Satellite TV Network

Al Sistani deputy decries Iraq budget delay

Unified Coalition MP Abbas Al Bayati praised security progress attained so far in Iraq as well as the political process that is succeeding at some points while it is subject to some setbacks.

Moreover, Unified Coalition members clarified that talks on forming a technocrat government are running positively with political blocs hoping that the coming government rallies support.

On the other hand, Iraqis’ concerns in their nation were the main headline of Friday prayers in a number of Baghdad regions. While a number of Sheikhs stressed the necessity of ratifying 2008 state budget, others put on the table issues of administrative corruption and lack of services.

For his part, deputy of Grand Ayatollah Ali Al Sistani, Sheikh Ahmad Al Safi, criticized in his Friday prayer in Samarra differences between MPs that are hindering the ratification of Iraq 2008 budget. Al Safi urged all parties to cooperate because the country is going through strenuous crisis that cannot be overlooked while all parties should acquire their rights.

Al Sistani deputy decries Iraq budget delay | Iraq News | Alsumaria Iraqi Satellite TV Network

Militias and neighbors loot Iraq South Oil

Backed by neighboring countries and cashing in on dreadful security conditions, Militia groups in the south are reigning over the country’s resources while southern wealth is being robbed and looted particularly at Southern Districts eastern borders. In this concern, the Iraqi Government accused Iran of taking over more than 15 oil wells on the Iraq-Iran border.

Hence, Basra citizens are mainly concerned about the party behind the looting. Is it carried by individuals or is it an organized planned for action supported by Iraq’s neighbors? A US report estimated Oil smugglers yearly revenues at USD 4 billions, almost equaling some Developing countries State Budgets.

On the security level many observers consider that recent clashes between security forces and Al Yamani group in Basra and Nassiriya were evident attempts to undermine the public order, prove the incapacity of Iraqis to take over the security and weaken Iraqi religious authorities’ role.

Following the former regime overthrow and the subsequent political and ground changes many Militia groups emerged with no political or popular extent but a strong foreign support to undermine Iraq’s stability and pitch it into chaos. Bloody blasts targeting civilians and religious sanctuaries as well as the killing of thousands in Najaf, Karbalaa, Basra and Zubair in the South are all alarming indications of foreign involvement.

Whereas security anarchy validates any foreign interference, Teheran has suggested sending Iranian forces into Iraq under the umbrella of Islamic security forces claiming to impose security and stability.

Moreover, Iranian made grenades, explosives, and anti armor missiles used in Iraq proved that such Militias, namely unpopular in the South, are not the only players in the field. In fact, Teheran was accused with the assassination of two southern governors last August with booby-trapped cars. The Iranian influence is lately even noticeable in Basra streets where many companies, schools and stores use Persian language in their trade names.

Southern Iraqi citizens attached to their identity and religious history has always expressed their resentment towards the violation of their nationalism and the looting of their natural resources. They repeatedly pointed out to all Iraq’s neighbors that they are the descendants of the Revolution of the Twenty and the 1991 Intifada against former regime.

Militias and neighbors loot Iraq South Oil | Iraq News | Alsumaria Iraqi Satellite TV Network

Iraq added 50,000 barrels a day to daily oil output in 2007

Iraq’s daily oil production averaged 2 million barrels a day in 2007, according the Ministry of Planning and Development Cooperation.

A statement obtained by the newspaper said last year’s oil output totaled 751 million barrels a day, 37 million barrels more than the total amount produced in 2006.

The volume is still less than the pre-war rates of about 2.3 million barrels a day despite the removal of U.N. trade sanctions and the injection of billions of dollars to revamp the oil sector.

Iraq sits on massive oil reserves but it still needs to import most of its fuel needs as its refineries are working much below their capacity.

Oil revenues make up 69 percent of the Gross National Product and are the sole source of the country’s hard cash.

Azzaman in English

Update......

Analysis: EU hungry for Iraq gas and oil

Iraq is looking outside its legal and security troubles to establish mutually beneficial energy ties with Europe.

Last week Oil Minister Hussain al-Shahristani met with top EU commissioners in Brussels to discuss energy cooperation. Iraq has 112 trillion cubic feet of proven gas reserves and, like its oil reserves, experts say complete exploration will find up to three times more.

But realities on the ground post-2003 as well as Saddam Hussein leftovers are making it hard to develop. Europe, meanwhile, is desperate for Russian alternatives and is offering helping hands to develop Iraq's electricity sector.

Both Turkey and the United States have discussed helping out as well.

"Energy is one of the important sectors that Iraq is working on in the relations with Europe," Sami Askari, an Iraq parliamentarian and adviser to Prime Minister Nouri al-Maliki, told United Press International. "Iraq has large reserves of gas and oil and we're looking for new markets and I think Europe will be the nearer and most important potential market."

One of Iraq's largest gas fields, Akkas, located near the Syrian border, is on the short list of developments. It could feed markets in Syria, as well as tie into a proposed Arab gas pipeline, where natural gas from Arab states would be piped to Turkey and on to Europe.

"It's a promising new supplier," said Ferran Tarradellas, spokesman for EU Commissioner for Energy Andris Pielbags, who met with Shahristani. Citing Iraq's 10th-largest gas and third-largest oil reserves, he added, "It's not that far from the European Union."

"In the foreign energy policy that we are following now, one of the main priorities is the diversification of supply sources," which are mostly Russia, Norway and Algeria, he said. "That leaves the EU, at a time when our own gas production is shrinking, in a very delicate position."

Royal Dutch Shell, France's Total and Italy's Edison are all courting Shahristani for a deal to develop Akkas. The European Parliament rejected a plan by a development committee last October to dedicate funds for the project.

Europe is also helping Iraq with its electricity sector, which is improving but still susceptible to post-2003 chaos and lags behind demand. "The (Iraqi) central government has directed the European Commission and accepted the European Commission's offer to rewrite the electricity law and establish a modern electricity framework along the lines of that which has been adopted and is functioning in Jordan," a member of the Energy Fusion Cell, a U.S.-orchestrated team in Iraq focused on strategic energy issues, told UPI on condition of anonymity.

Turkey, an increasing energy consumer and major transit country for the oil and gas trade, is looking at Iraq's north as well. Turkish President Abdullah Gul led a delegation to Washington early last month, meeting with President Bush, Vice President Cheney and the secretaries of state and energy. Part of the meetings included jointly working with Iraq to develop its energy sources.

Upon returning Energy and Natural Resources Minister Hilmi Guler said specifically Turkey was eyeing northern Iraq gas. Turkey's pipeline firm BOTAS announced it was studying a pipeline project to send gas along the same route as two pipelines pumping oil from northern Iraq to a Turkish port.

"We are looking forward really," said Abdul-Hadi al-Hasani, deputy chief of the Iraqi Parliament's Energy Committee, "to European government and companies to coming in and develop Iraq's oil industry."

Iraq's energy sector -- oil, gas, power and fuels -- needs billions of dollars of investment, especially after Saddam Hussein's mismanagement and U.N. sanctions. Iraq could foot much of the bill but lacks the institutional capacity to spend its capital budget. And only part of the U.S. reconstruction effort in this area has been successful.

Disputes between the Kurdistan Regional Government and the central Iraqi government over control of the oil sector have stalled an oil law package that would, in part, govern how the oil sector is developed and how international oil firms would be able to invest.

The Kurds have gone on their own, signing deals and irking Baghdad while insisting the Constitution supports their efforts. Shahristani has called them illegal. He's beginning a process to sign deals without a law as well. A team from the Oil Ministry has been meeting with officials from Shell, BP, Chevron and ExxonMobil to negotiate special assistance deals on five key oil fields. Later this year the ministry will offer more fields for bidding.

Violence and other instability continue to take their toll on the energy sectors -- not to mention Iraqis themselves. Iraq oil production was praised for reaching 2.3 million barrels per day, but early estimates for January averages show it dropping by at least 100,000 bpd. This has affected, and been affected by, power outages in the middle of the month. Explosions, both accidental and malicious, are hampering refineries and electricity delivery.

"We are happy and open to working closely with Iraq," said Christiane Hohmann, spokeswoman for EU Commissioner for External Relations Benita Ferrero-Waldner, also at the Shahristani meetings. "The first problem which we always had is the security question, which is not new."

She said there are no official meetings planned, but Iraq has been invited to an upcoming ministerial conference on the Arab gas pipeline.

International Security - Energy - Analysis - UPI.com

U.S., Iran to hold talks over Iraq next week: official

The United States and Iran will hold a new round of talks over the Iraqi issue in Baghdad next week, an Iraqi Foreign Ministry official said on Saturday.

"We are working on a new round of talks between the two sides and we expect that the meeting would be held next week," the official said on condition of anonymity, without providing a specific date.

He added that the level of the meeting has not yet been decided.

The comment from the U.S. embassy was not immediately available.

The U.S. has been accusing Iran of aiding Iraq's Shiite insurgents. But Tehran categorically rejects the allegation.

U.S. officials said recently that attacks involving weapons from Iran seemed to be decreasing, but the training and financial supports are still there.

The two sides held two ambassador-level talks on the Iraqi security issue in May and July and an expert-level meeting in August. A fourth round scheduled for December has been suspended.

Iran has a strong influence among the Iraqi Shiites. Relations of the two countries, which fought an eight-year war in 1980s, have picked up since the fall of Iraq's former President Saddam Hussein in 2003.

Iraqi leaders have paid several visits to Iran since 2005. Iranian Foreign Minister Manouchehr Mottaki said on Jan. 28 that President Mahmoud Ahmadinejad is expected to make a tour to Iraq within two months.

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Iraqi PM Calls US Companies to Invest in Iraq

Mr. Nuri Kamil al-Maliki the Iraqi Prime Minister received yesterday the US Commerce Secretary Mr. Carlos Gutierrez accompanied by a delegation.

In the meeting, they discussed ways of developing bilateral commercial relations development, to help Iraq rebuild its infrastructures; as well as helping Iraqi people to fulfill its basic needs. This should be done by government projects supported by foreign investors to make Iraq more prosperous.

Mr. Nuri Kamil al-Maliki, called US companies to invest and participate in development projects especially after the security improvement in Iraq.

On his side, the US Commerce Secretary, renewed US support to the Iraqi Government in its war against terror and to achieve security, stability and supremacy of law. He also emphasized the development of commercial relations between both countries and meets the need of all Iraqi people.

PUKmedia :: English - Iraqi PM Calls US Companies to Invest in Iraq