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

IAF awaits cabinet shakeup to determine stand – spokesman

The Sunni Iraqi Accordance Front is awaiting the final shape of the expected cabinet reshuffle to determine its position, the IAF spokesman said on Sunday evening.

"The IAF is supporting a full cabinet reshuffle for considerations we believe would have a positive effect on the government's performance," Saleem Abdullah al-Juburi told Aswat al-Iraq – Voices of Iraq – (VOI).
"However, if there was an orientation to have a limited change, we would not express discontent about filling the vacant portfolios with efficient ministers," added Juburi.

Earlier on Sunday, Sami al-Askari, a member of parliament from the Shiite Unified Iraqi Coalition (UIC), told VOI the idea of shrinking the ministries as proposed by Iraqi Prime Minister Nouri al-Maliki was met with rejection by some political blocs.

"There is an orientation to patch up the cabinet through the return of the withdrawing IAF and (former Premier Iyad Allawi's) Iraqi National List ministers and name others to replace the withdrawing ministers of the Sadrist bloc," Askari said.

The Maliki government is composed of 37 ministries, five of them are state ministries, and distributed over the UIC, the largest bloc in the Iraqi parliament with 83 out of a total 275 seats, the Kurdistan Coalition (55 seats) and the IAF, which had 35 seats before its withdrawal in August 2007 along with the ministers of the Sadrist bloc, or Iraqis loyal to Shiite leader Muqtada al-Sadr (30 seats) and the INL (21 seats).


Aswat Aliraq

Controversy over cabinet formation in Baghdad press

Iraqi newspapers on Monday criticized political blocs' interference in the formation of the new cabinet, calling for an independent national unity government away from the political and sectarian quota system.

Under a headline that read 'Fears over cabinet reshuffle,' the government-funded al-Sabah newspaper published an article by its Editor-in-Chief Fallah al-Mashaal in which he highlighted the recent campaign of criticism against the current Iraqi government for its alleged sectarian affiliation, singling out Prime Minister Nouri al-Maliki as the leader of the national unity project.

"Talks are now focusing on restoring the government by electing representatives of political blocs which have withdrawn their ministers from the cabinet…Some parties demand the liberation of the executive from all political constraints, calling for expanding the premier's authority to elect technocrat ministers who are known for their efficiency and integrity…," the author said.

On the same topic, Baghdad newspaper, the daily mouthpiece of former Prime Minister Iyad Allawi's al-Wifaq Movement, published an editorial entitled 'The expected cabinet reshuffle' in which it wrote:

"It has been months since Iraqis first heard of changes by the prime minister to his government which is still facing fierce criticism over its failure to provide basic services to citizens and keep its promises to achieve national reconciliation since it has first seen the light of day 20 months ago."

According to the author of the article, all indicators show that this step will not be taken soon.

"The government has not yet consented to the demands of the blocs which have pulled out of the cabinet, including the Iraqi National List (INL) which submitted several national demands to the government, but was sidelined and distanced…," the author said.

Al-Ittihad newspaper, the daily mouthpiece of the Patriotic Union of Kurdistan (PUK) led by Iraqi President Jalal al-Talabani, published an article by Abdel Munem al-Aasam in which he analyzed the prime minister's message to the Iraqi presidency and political bloc leaders in which he tried to find out about their stance on breaking all rules of the quota system while forming the new government.

Aswat Aliraq

President Massud Barzani: Article 140 Must be Implemented Within specified Period

Mr. Massud Barzani, the President of Kurdistan Region received in Salahadin Resort, a delegation from the European Union headed by Mrs. Anna Maria Gomez.

In the meeting which was also attended by Elika Ozetalo the EU Ambassador in Iraq, Mrs. Anna Maria Gomez the EU Commissioner for Iraqi Affairs explained the delegation’s aim from the visit which is to be learn more about situation in Iraq in general and Kurdistan Region in particular.

Mrs. Anna Maria Gomez raised few questions on the relations between the Federal Government and the KRG especially about Article 140 of the Iraqi constitution and the UN’s role in the implementation of the above mentioned article.

President Massud Barzani talked about the implementation of Article 140; he said “The decision of postponing Article 140 was not easy to the Kurdish People and the KNA”, He emphasized the necessity of implementing this article within the specific period which is 6 months. The implementation of Article 140 is for the good of Iraq and Kurdistan and the stability in the region.

On the other side, they discussed the Iraqi-US relations and ways of developing these relations in the future. The EU role in Iraq and Kurdistan Region was also discussed, Mrs. Anna Maria Gomez promised to enhance the EU activities in Iraq and in Kurdistan.

PUKmedia :: English - President Massud Barzani: Article 140 Must be Implemented Within specified Period

Turkey Readies for Ground Operation

The Turkish Armed Forces (TSK) is preparing for a comprehensive ground operation into northern Iraq against the terrorist Kurdistan Workers' Party (PKK) organization, expected to take place in spring.

The TSK is currently developing its strategy for the operation, which will most likely be launched in the middle of March. The ground operation is planned to be the final strike against the terrorist organization. It will follow upon a series of aerial attacks that have seriously disrupted the organization, bringing it to the brink of collapse. Reports indicate that communications between PKK leaders was seriously disrupted by the operations and that the distrust that emerged following the severing of communications has brought the organization to the edge of dissolution. The TSK has set up military bases at high elevations in the Cudi, Gabar, Küpeli, Tanin and Kato mountains, strategic points used by the PKK militants for infiltration into Turkey. The bases will include helicopter landing facilities, thermal cameras and artillery equipment.

TSK Special Forces based in Bolu, Kayseri, Isparta and Manisa have been trained for the purpose of destroying the remaining PKK presence in northern Iraq. The Land Forces Command is currently working to determine the number and state of armored vehicles, trucks, trailers, mobile medical units and mobile kitchens in the transportation units. A thorough review is being undertaken to check the state of equipment, clothing and food supplies of the units based in the region.

The spring operations will coincide with the withdrawal of the units that carried out operations in the winter and the deployment of replacement units. Military sources indicate that the spring operation will be carried out in two separate regions, one along Turkey's borders with Iran and Iraq and one inside Turkey, near the provinces of Tunceli, Bingöl, Siirt and Diyarbakır.

The military units that will take part in the spring operation are being picked by the authorities at the Land Forces Command and Gendarmerie Command. The number of training sessions for the command units based in Bolu, Kayseri, Isparta and Manisa has been increased in preparation for the ground operation in spring. Two large military units from Bolu have been deployed to the region. The Land Forces Command is currently working to determine the quantity of military equipment proper for use in the operation.

Turkey will also reportedly use unmanned Heron surveillance airplanes, which will be provided by Israel. These will play an indispensable role in the combat against terrorist activity. The Heron will be used to screen and monitor a large area, including northern Iraq and the Gabar, Cudi, Küpeli, Kato, Yazlıca and Tanin mountains.

These will play an indispensable role in the combat against terrorist activity. The Heron will be used to screen and monitor a large area, including northern Iraq and the Gabar, Cudi, Küpeli, Kato, Yazlıca and Tanin mountains. The intelligence thus gathered will be swiftly evaluated and used in military strikes.

The TSK had previously deployed 50,000 troops in the border region before the cross-border operation on Dec. 16, when Turkish warplanes began pounding PKK bases. During the operations, which also included members of the TSK Special Forces Unit, the regular forces backed the main units by performing mine sweeping. Reports say that the number of troops deployed along the border will not go below 50,000.

The Pro-Kurdish Democratic Society Party (DTP) held a march to Mt. Cudi last week in an attempt to protest the projected military action.

PUKmedia :: English - Turkey Readies for Ground Operation

Iraq's defense, security and communications summit launched in Dubai

Grand Hayat Hotel in Dubai witnessed last Saturday 16/2/2008 the start of Iraq's security, defense and communications summit with the participation of more than 120 local and international companies specialized in electronic systems for control and communications.

The conference began with a speech to His Excellency the Iraqi Defense Minister (Abdul Kadir Al-Obaidi), and then a speech by His Excellency the Minister of National Security (Shirwan Al-Waili); the Minister thanked the UAE for hosting many of the activities and events that contribute to help Iraq and reduce the time of suffering of the Iraqi people who are looking forward to a secure present and a bright future.

The Ministers confirmed that Iraq is looking forward to international investments and encouragement of investment and industrial companies in the areas that directly affect the lives of citizens. The Ministers stressed Iraq's need for of sophisticated equipments and advanced training of Iraqi cadres in the following areas:

- Development of an integrated operations room with all potentials to disclose radio waves and associated satellite.

- IT systems.

- Develop integrated laboratories for collection and analysis (DNA, Finger Prints.

– Increase training and investigation.

- Establishment of a protection system controlled by monitoring cameras and control Informatics (CCTV) throughout the city of Baghdad and the Iraqi border.

Some of the most important companies that contributed in the conference are:

Zain
Agility
Alcatel-Lucent
Oracle
Northrop Grumman
Sabre Holding Group
Technology Partners
Land Rover
MAC Iraq
Raytheon
Water Development Program
American Chamber of Commerce Iraq
Safenet Security
Korek

http://www.iraqdirectory.com/DisplayNews.aspx?id=5583

UPDATE 1 - Over 70 Firms Bid for Iraq Oil Contracts - Ministry

More than 70 international firms have registered to compete for tenders to help develop Iraq's oil reserves, the world's third largest, the country's oil ministry said on Monday.

Big oil firms such as Royal Dutch Shell and Total have been positioning themselves for years to gain access.

"We are going to carefully study and check the documentation. Next month we will declare the companies which are permitted to work in the Iraqi oil fields," Oil Ministry spokesman Asim Jihad told Reuters.

Iraq produces about 2.3 million barrels of oil a day, a fraction of its 115 billion barrels of proven crude oil reserves, surpassed only by Saudi Arabia and Iran.

Some oil companies have already signed deals with the largely autonomous northern Kurdistan region, a move that has angered the government in Baghdad, which has threatened to blacklist them and declare the deals illegal.

Firms from Europe, Asia and America are among those who have registered to bid for Iraqi oil contracts, Jihad said.

Shell and Spanish energy company Repsol YPF are among those that have said they have registered.

UPDATE 1-Over 70 firms bid for Iraq oil contracts-ministry | News | Breaking City News | Reuters&

ANALYSIS - Iraq inches toward luring big oil investment

Iraq is inching toward attracting the billions of dollars needed to revamp its oil sector but international oil companies are still not ready to commit the massive sums required.

Iraq has the world's third largest oil reserves, its reservoirs are among the cheapest anywhere to develop and the country is desperate for investment after years of sanctions and war.

The lure of Iraq is all the more powerful as big oil has limited access to the Middle East's lucrative oilfields, which are mostly off-limits to foreign investors.

An oil official said last year Iraq's oil sector could need as much as $75 billion.

U.S. officials say the main reason foreign oil majors have avoided Iraq is the lack of an oil law, not security concerns. Security has improved, although it is still a dangerous country.

"The crucial points are still security and the oil law," said Alex Munton, analyst at global consultancy Wood Mackenzie.

"The outside perception is that things have improved on security but it is still a concern. The issue of the oil law is throwing up more interesting questions. Is the federal government signalling it intends to proceed with oil development without a clear legal framework in place?"

Iraq's cabinet agreed a draft oil law a year ago but disputes with the Kurdistan regional government and objections from Shi'ite and Sunni Arab politicians have delayed it.

With the law bogged down, Iraq's oil ministry is looking for other ways to get foreign firms involved and bring in at least some of the investment and technology needed.

Over 70 companies responded to Iraq's request to sign up by Monday for a register to compete for future tenders for oil extraction and service contracts that it plans to announce in April. Iraq will announce the companies that have qualified next month.

The contracts on offer are likely to be for a set fee for two or three years to rehabilitate and expand facilities at already-producing fields, analysts and company executives say.

Iraq has not said what fields it will tender or on what terms, but the deals are seen as a stop-gap until the oil law is passed and will not provide the long-term involvement big oil companies crave.

SIGNING UP

Still, foreign giants BP, ConocoPhillips, Repsol and Royal Dutch Shell have said they met the deadline in advance, and others have said they would submit their paperwork. The contracts may not be what the oil firms want, but they have signed up to ensure they are in the game if and when deals for Iraq's giant oilfields are offered.

"Companies are signalling their readiness to be involved," said Mustafa Alani, senior consultant at Dubai-based think tank the Gulf Research Center. "It's the foot-in-the-door strategy. They are involved but they are not committed. And until security and the legal issue are completely clarified, they won't commit."

For Iraq, the potential gains from overhauling oilfields could be huge, Alani said.

The country could boost output from existing fields by 1 million-1.5 million barrels per day (bpd) for around $6 billion, he estimated. Current output is around 2.3 million bpd and Iraq aims to raise output to 2.6-2.7 million bpd this year.

Large oil firms that win contracts would supply equipment, materials, and expertise but would sub-contract the actual work. That would keep them involved for a minimum investment and risk.

"We will do the acrobatics that the oil ministry requires of us," said one oil company executive, referring to the process of registering for tenders.

"But in the end big oil companies have similar financing, shareholders, pension schemes and analysts. And with poor security and absolutely no legal framework in place, it is going to be a long time before we can persuade them that it is a good idea for the company to invest $5 billion to $10 billion in Iraq."

PARALLEL DISCUSSIONS

Iraq is pursuing another route to rehabilitating producing fields through talks on enhanced technical support contracts with foreign firms that have for years provided field studies, technical assistance and training for Iraqi oil officials.

The new contracts would give oil companies a bigger project management role in field maintenance and development, said Wood Mackenzie's Munton. These deals would not have to be tendered as oil companies would operate as consultants and would not be taking on any capital investment, he added.

Big oil firms have made no secret of the fields they favour. Total has extensive knowledge of the giant Majnoon and Bin Umar fields and has teamed up with Chevron to pursue Iraqi contracts.

Shell has studied the northern Kirkuk field and has also looked at Maysan province in the south with BHP Billiton. BP has studied the southern Rumaila field.

Russia's LUKOIL hopes to revive a Saddam Hussein-era deal for the West Qurna oilfield, and Conoco has said it wants to be an active partner.

Russian, Chinese and Indian firms, often answering to their governments' strategic rather than commercial motives and less risk averse, could be among the first to commit large amounts of money to Iraq, analysts say.

ANALYSIS-Iraq inches toward luring big oil investment - Forbes.com

Presidency council approves Japanese loan agreement

The Iraqi presidency council approved a Japanese loan agreement of $490 million to finance two water development projects in Basra and rehabilitate the power grid in Iraq's Kurdistan region, a presidential statement said.

"On Sunday, the presidency council approved a Japanese loan agreement presented to Iraq in the form of letters and a report, and signed on July 31, 2007 between the Iraqi minister of finance and the Japanese ambassador in Baghdad," read the statement that was received by Aswat al-Iraq, Voices of Iraq, (VOI).

"The agreement is concerned with a 57.716 billion yen loan given to the Iraqi government to finance water development projects in Basra and reconstruct the electricity sector in the Kurdistan region," the statement explained.

The agreement, which had been discussed and approved by the Iraqi parliament, was signed by Iraqi President Jalal al-Talabani and his deputies Tareq al-Hashemi and Adel Abdul Mahdi, the statement added.

Aswat Aliraq

Higher demand for the dollar in daily auction

Demand for the dollar was higher in the Iraqi Central Bank's auction on Monday, registering at $89.40 million compared to $36.675 million on Sunday.

"The demand hit $5.190 million in cash and $83.850 million in money transfers outside the country, all covered by the bank at an exchange rate of 1,210 Iraqi dinars per dollar, unchanged for the tenth 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 10 banks that participated in the auction offered to sell dollars.

Speaking to VOI, Ali al-Yasseri, a trader, said that the demand for the dollar went up on Monday due to the increase in foreign transfers. Most of the traders were expecting a decline in the exchange rate on Monday, which prompted them to put off their remittances until today.

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

Aswat Aliraq

Large amounts of high-quality construction materials available-ministry

The Iraqi Ministry of Trade said on Monday that it has provided large amounts of construction materials of a much better quality than those sold in local markets.

"The Public Company for Construction Materials Trade has informed contractors, craftsmen and citizens of the availability of these materials, which have been proven of high quality and efficiency by international laboratories...," the company's general director, Raad al-Mas, said in a statement received by Aswat al-Iraq, Voices of Iraq, (VOI).

The company has set up several selling centers in all Iraqi provinces which are expected to open soon, the general director indicated.

"Citizens can go to the selling centers and order the amounts they need," he added.

Aswat Aliraq