Thread: Archive Latest News - Think Tank - 15/04/08 - 26/08/08

Parliament of Kurdistan to Discuss 2008 Budget Law

Kurdistan Region Parliament is going to hold a session today to discuss the law of the Region’s budget for 2008.

The Parliament issued in its session yesterday the law of Financial Surveillance. At the end of yesterday’s session, speaker Adnan al-Mufti announced that the session of Tuesday will be allocated to discuss the Region’s budget for the year 2008.

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Iraqi premier complains of Arab inaction - Update

Iraqi Prime Minister Nuri al-Maliki criticized Arab countries Tuesday for their insufficient support for his country and compared them unfavourably with foreign states that offered more backing. Speaking at a meeting in Kuwait of Iraq's neighbouring countries as well as key regional and international powers, al-Maliki lamented the fact that Iraq's Arab neighbours were doing very little to upgrade their ties with Baghdad.

Iraq's unanswered demand for a relief of its debts was among the grievances that al-Maliki voiced.

"The Iraqi people are still paying the price for the impulsive policies of the ousted regime and its invasion of Kuwait," al-Maliki said.

"Debts have had damaging effects on the infrastructure and the education and health systems," the premier complained, saying that many foreign countries have written off Iraqi debts although they have no shared history and culture with Iraq.

The remarks were aimed at Gulf Arab countries to which Iraq owes most of its remaining debts estimated at 67 billion dollars.

Another source of complaint was Arab reluctance to open embassies in Baghdad despite pledges made by Saudi Arabia and Bahrain.

Security rather than political considerations are the main reason for Arab reluctance, said the Arab League Secretary-General Amr Mussa Sunday before heading for Kuwait.

The Jordanian embassy in Baghdad was bombed in 2003 and Egypt's ambassador there was abducted and killed two years later.

Violence in Iraq has recently risen although it had declined significantly over the past year.

Al-Maliki was dismissive of the security argument given by Arab countries.

"Many other foreign countries have diplomatic missions in Baghdad despite security considerations," al-Maliki said.

Iraqi premier complains of Arab inaction - Update : Middle East World

Here we go again........

Discussions regarding Kurdish Oil Contracts started

Oil Minister Hussein Shahristani announced that a delegation headed by Kurdistan region Prime Minister Nechirvan Barzani started discussions regarding the issue of oil contracts Kurdish government signed with foreign companies in order to invest north oil. Shahristani added on the sidelines of his participation in Energy Ministers in Rome that hydrocarbons law issued last march regarding international bids shall be respected. Shahristani had prohibited applying oil laws that creates a conflict between Baghdad government and Provinces.

Discussions regarding Kurdish oil contracts started | Economics News | Alsumaria Iraqi Satellite TV Network

Oil Prices score highest Records Ever

Crude oil prices increased and exceeded $117 per barrel scoring new record prices and that because of concerns from a shortage in supplies from essential oil producers and because of OPEC’s statements uttering that there is no need to increase the output.

To that, John Lipsky, first deputy managing director of the International Monetary Fund (IMF), record high oil prices are slowing world economic growth but bring benefits to exporters. He also stressed that IMF expects a decrease in growth that varies between one and two points, not only because of high oil prices but also because of high prices of food and difficulties faced in financial sector.

Oil Prices score highest records ever | Economics News | Alsumaria Iraqi Satellite TV Network

New Iraq Contracts Bidding this summer - Oil Min

ROME, April 21 (Reuters) - Iraq will call for bids this summer for oil service contracts for giant oilfields already pumping oil in its south and in the north around Kirkuk, Iraqi Oil Minister Hussain al-Shahristani said on Monday.

The Akas gas field in the western desert will also be included in the first bidding round this summer, he added.

Large oilfields that have been discovered and are not yet producing, such as Majnoon and Bin Umar, would not be included in the first round, the minister said.

New Iraq contracts bidding this summer-oil min | Markets | Reuters

Al Qaeda deputy leader chief slams Muslims for Lack of Support

Al-Qaeda deputy Ayman al-Zawahiri criticised Muslims for failing to support Islamist insurgencies in Iraq and elsewhere in a new audiotape posted Tuesday on the Internet.

Osama bin Laden's top lieutenant also blasted Palestinian Islamist movement Hamas over their reported readiness to consider a peace deal with Israel.

"I call upon the Muslim nation to fear Allah's question (at judgement day) about its failure to support its brothers of the Mujahedeen (holy Warriors), and (urge it) not to withhold men and money, which is the mainstay of a war," he said.

He also used the two-and-a-half hour message to urge Muslims to join militant groups, mainly in Iraq, where he claimed that the insurgency against the Iraqi government and the US-led coalition forces is bearing fruit.

"I urge all Muslims to hurry to the battlefields of Jihad (holy war), especially in Iraq," Zawahiri said in the message, the second in a two-part series to answer about 100 questions put to him via online militant forums.

"The situation in Iraq heralds an imminent victory of Islam and the defeat of the crusaders and those who stand under their flag," he said.

Turning his ire on Hamas, he said the Palestinian group's reported willingness to hold a referendum on any peace deal with Israel flew in the face of Sharia, or Islamic, law.

"How can they put a matter that violates Sharia to a referendum?" he added.

Former US president Jimmy Carter said on Monday that Hamas told him it would recognise Israel's right to live in peace if a deal is reached and approved by a Palestinian vote.

Hamas exiled chief Khaled Meshaal later told a press conference in Damascus that Hamas would not recognise the Jewish state and would insist on the right of some 4.5 million Palestinian refugees to return to Israel.

Meshaal ruled out any direct talks with Israel but said Hamas was ready to hold discussions with US officials.

He said Hamas would recognise a peace deal negotiated by Israeli Prime Minister Ehud Olmert and Palestinian president Mahmud Abbas on condition that it was subject to a referendum.

In his message, Zawahiri also called on the various jihadist groups operating in the country to unite behind the "more advanced" Al-Qaeda-backed "Islamic State of Iraq".

In the first part of the message released last Friday, Zawahiri commemorated the fifth anniversary of the US-led invasion of Iraq with a call to Muslims to make Iraq a "fortress of Islam".

Al Qaeda deputy leader chief slams Muslims for lack of support

Demand for dollar down in daily Auction

Demand for the dollar was down in the Iraqi Central Bank's auction on Tuesday, registering at $86.260 million compared to $129.815 million on Monday.

"The demand hit $5.160 million in cash and $81.100 million in money transfers outside the country, all covered by the bank at a stable rate of 1,202 Iraqi dinars per dollar, unchanged for the second session running," according to the central bank's daily bulletin received by Aswat al-Iraq - Voices of Iraq - (VOI).

The 19 banks that participated in the auction offered to sell 550,000 dollars, which the bank bought at a rate of 1200 dinars per dollar.

Speaking to VOI, Ali al-Yasseri, a trader, said that the remittances kept the overall demand at a relative average during today’s session.
The Iraqi Central Bank runs a daily auction on Sunday through Thursday.

Aswat Aliraq

Kurdistan Can Daily Add up 100,000 Barrels of Oil to Iraq’s Oil Exports

The KRG Prime Minister, Nechirvan Barzani, affirmed the KRG’s support for Nuri Maliki’s government to achieve the political process in Iraq.

As the Premier said today in a press conference in Erbil, he discussed the key issues- oil and gas law, Peshmergas’ affairs, implementation of article 140 pertaining to normalizing the disputed areas- with the Iraqi officials during his recent visit to Baghdad.

Regarding the oil and gas law, Barzani said the law serves all Iraqi people including kurds. The Kurdistan region will get its share in Iraq’s overall revenues; he said the joint discussions were positive for that purpose.

Barzani urged that the oil and gas bill, distributing the Iraq’ revenues and the bill to regulate the Iraqi oil ministry’s affairs should be referred to the Iraqi Council of Representatives at the same time.
“We (Federal government and KRG) agreed to form two brigades out of Kurdish people to be part of Iraqi army. What is remained is allocating a special budget to them,” Barzani said regarding the issue of Peshmerga.

Meanwhile, Barzani reiterated that the KRG oil contracts were signed according to the Iraqi permanent constitution. He called on the Kurdish reporters to hold a joint press conference with the KRG Minister for Natural Resources to transparently reveal the details of the contracts.

“KRG is ready to add up 100 thousand barrels of oil daily to the Iraq’s oil exports.”

As Barzani said, there is no political decision in Baghdad to hamper the process of implementing article 140, reiterating that UN contributes to address the disputed issues. As he expected, the UN commission will raise its recommendations to the Iraqi leadership.

“As soon as we officially get those recommendations, we will have our say then. I think the Commission will raise recommendations initially to address the problems in those areas where the controversies are not too complicated. It then contributes to solve the concerns in the other areas where the issue is grave,” Barzani said.

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UN: Iraq Kikruk needs Political Formula

In an interview with Reuters, UN Chief special envoy to Iraq Steffan De Mistura said that the status of Kirkuk must be solved through a political formula and not a rushed organized referendum that could spur violence. De Mistura added that a peaceful settlement of Kirkuk’s fate, which he called the “mother of all issues” in Iraq, is a vital factor to restore stability in Iraq on the long term.

After talks in Brussels last week with NATO and EU officials, De Mistura said the United Nations will propose a formula by May 15 to resolve conflicts on several disputed areas in Iraq that could serve as a template for Kirkuk. As part of any solution, minorities would have to be protected, he said. He added that a referendum was not the answer until there was a political solution that would have to protect minorities. According to De Mistura, Kirkuk has become a symbol of national reconciliation or a major conflict that might lead to regional interference.

It is to be noted that Turkey fears Kurds would control Kirkuk and turn it into the capital of a new state, which would possibly reignite separatism among Turkish Kurds. As for Arabs encouraging stability in Kirkuk during the regime of former President Saddam Hussein, they want the city to remain under the control of Baghdad’s central government. For its part, the Iraqi government has offered Arab families compensation to return to their original towns. But Arabs and Turkmen accuse Kurds of trying to drive them out of the city.

A referendum was due by the end of 2007 to decide Kirkuk's status but was delayed for six months, partly to give the United Nations time to come up with proposals for settling the issue.

UN: Iraq Kikruk needs political formula | Iraq News | Alsumaria Iraqi Satellite TV Network

UPDATE 1-Iraq may Drop Oil Deals if Not Inked by June

Iraq may drop oil service deals with oil majors if they fail to sign the contracts by June, Iraqi Oil Minister Hussain al-Shahristani said on Tuesday.

Iraq is negotiating five short-term oilfield service contracts worth around $500 million each aimed at boosting its output by around a quarter. The OPEC member had hoped to sign the contracts in March.

"June is a bit late, if they are not ready by then we might not really require technical service contracts...we may drop them if they are not signed soon," he told reporters.

BP, Royal Dutch Shell and Exxon Mobil were negotiating a deal each. Shell is negotiating another deal together with BHP Billiton, while Chevron and Total together are working on a fifth deal.

Each deal was to boost Iraqi output by around 100,000 barrels per day (bpd). But Iraq was making progress on its own on the fields, and the longer the contracts take to sign, the harder it will be for majors to add 100,000 bpd of additional output at each field, he said.

Shahristani blamed the delay in signing on the oil companies, which he said were concerned about the mechanism of payment in oil through the Iraq Development Fund.

Iraq wants long-term development contracts that it will offer in a first bidding round this summer to come into effect from the middle of next year, Shahristani said.

He declined to give the length of the contracts or more details on payment. The terms of the contract would be based on service contracts, as there was no risk involved in developing already-producing fields, he said.

The contracts will be for Iraq's already producing giant oilfields in the south and around Kirkuk in the north. The list of fields to be offered in the round had yet to be finalised, he said.

A second and third round of bidding may be held next year, the minister said. The type of contracts to be offered was yet to be finalised, but a royalty tax of 12.5 percent and a windfall oil tax would be included in the clauses, he said.

Iraq has disqualified companies that have oil deals with the Kurdish government from bidding in the first round, the minister said.

"Any company that breaks Iraqi laws would not qualify for the contracts, the computer would automatically disqualify them," he said. "We have informed the companies ahead of time."

Baghdad says the Kurdish oil deals are illegal. Shahristani said the Kurdish government had not offered the oifields in a bidding round, so the contract awards lacked transparency.

Four oil deals signed in the Saddam-era would be respected, although the terms of all the deals would be negotiated, Shahristani said.

One of those deals was with Chinese National Petroleum Company for the Ahdab oilfield, he said. Iraqi officials had met Chinese officials to renegotiate the contract and expected to conclude it soon.

Before the 2003 Iraq war China had agreed a $700 million deal with Saddam Hussein's government to develop the field.

The deals needed to be renegotiated to ensure they were in line with a draft oil law agreed in Iraq in February last year, he said.

The three other contracts were oil service contracts. The companies that held those contracts were unlikely to want to proceed as the deals were made when oil services were a lot cheaper, Shahristani said.

UPDATE 1-Iraq may drop oil deals if not inked by June | Markets | Markets News | Reuters