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

Update.......

Dana Gas and Crescent Petroleum announce establishment of 461 million square feet site for Kurdistan Gas City

Gas Cities LLC, a joint venture between Dana GasDana Gas PJSC, the Middle East's first and largest regional private-sector natural gas company, and its partner Crescent Petroleum announced today that the 461 million square foot site for the Kurdistan Gas City has been officially assigned by the Kurdistan Regional Government (KRG), for development by Gas Cities LLC, following extensive surveys that have been completed on potential sites within the Kurdistan Region of Iraq

The groundbreaking ceremony of the Kurdistan Gas City will take place on the 21st of September, 2008 in the presence of the Prime Minister of the Kurdistan Regional Government of Iraq, His Excellency Mr. Nechirvan Barzani, and several Ministers, dignitaries and heads of prospective local as well as international industry leaders.

The Kurdistan Gas City is a major new sustainable and synergistic gas-utilization industrial complex to be built over an area of 461 million square feet, designed to promote private sector investment in a variety of gas-related industries to further benefit the country's citizens through mass training, job creation in the many tens of thousands, and the promotion of general economic activity.

The Kurdistan Gas City will include industrial, residential and commercial components in an integrated city, with an expected initial investment in the basic infrastructure estimated at US$3 billion, preparing the land for possession by prospective residents. This initial investment will in turn facilitate further Foreign Direct Investment exceeding US$40 billion (AED 147 billion) during the operations phase. The Gas City is being structured to hold over 20 varieties of world scale petrochemical and heavy manufacturing plants, and hundreds of Small and Medium-sized Enterprises (SMEs), served by state-of-the art civic facilities.

His Excellency Mr. Nechirvan Barzani, Prime Minister of the Kurdistan Regional Government, said on the occasion, "Dana GasDana Gas and Crescent Petroleum have made a significant contribution to the Iraqi economy through their work in the Kurdistan Region of Iraq thus far, and the new Kurdistan Gas City will be an extension of the considerable and commendable achievements to date. We highly appreciate their dedication towards our region and welcome their efforts to support the Iraqi people and the Iraqi economy. Through their professionalism and genuine concern for the community, we are making significant progress in spurring on economic growth and creating opportunity for our people."

Hamid Jafar, ****utive Chairman of Dana GasDana Gas, explained the ramifications of this achievement by saying, "The Kurdistan Gas City is an enormous step forward in Dana GasDana Gas' strategy across the Middle East, North Africa and South Asia (MENASA) Region. At this time, we have the KRG and Prime Minister Barzani to thank for welcoming Crescent Petroleum and Dana GasDana Gas into the Kurdistan Region of Iraq, as we work towards strengthening the Iraqi economy and bettering the livelihood of the Iraqi people."

The Kurdistan Gas City is the first in a series of "Gas Cities" that are being developed across the Middle East, North Africa and South Asia (MENASA) region by Gas Cities LLC, a joint venture company that has been established by and between Dana GasDana Gas and Crescent Petroleum. The Kurdistan Gas City is projected to generate direct and indirect job opportunities for nearly 200,000 Iraqi citizens in infrastructure, industrial projects, support services and other business activities.

Badr Jafar, Chairman of Gas Cities LLC, and ****utive Director at Crescent Petroleum commented on the occasion by saying, "The Kurdistan Gas City is the first in a series of similar gas cities planned for the entire region. Gas Cities LLC, as a new venture dedicated to the introduction and development of this unique concept, are formidable public-private sector partnerships that will generate massive regional and foreign direct investment and unrivalled local opportunities in the communities into which we plan to introduce the Gas City concept."

Meanwhile, pursuant to the service agreements signed in April 2007 with the Kurdistan Regional Government, construction is more than 80 percent complete on 180 km of natural gas pipeline and two LPG plants, carried out jointly by Dana GasDana Gas and Crescent Petroleum in the Kurdistan Region of Iraq to supply, process and transport natural gas to fuel urgently needed local electricity generation. The project is employing Iraqi contractors, professionals, skilled technicians and labour in phases of construction stages to maximise local content and economic benefit. The entire project is on track for first gas supply of 150 million cubic feet per day in the coming weeks, rising to 300 million cubic feet by early 2009.

The gas supplied to the two new power plants under construction in Erbil and Sulymaniya, will generate 1,250 MW of electricity, for the benefit of over 4 million Iraqi citizens in the Kurdistan Region and the rest of Iraq. The project involves a total investment of $650 million - the largest single private sector investment in Iraq for decades.

As a result of this investment not only will urgently needed gas be supplied to the power plants cost-effectively but it will also result in savings to the Iraqi government's budget of over $2 billion annually in fuel costs. The project implementation will also provide work opportunities for over 2,000 Iraqi nationals of all ethnic groups, and provide comprehensive training in oil & gas operations for Iraq's citizens.

Dana Gas and Crescent Petroleum announce establishment of 461 million square feet site for Kurdistan Gas City - Middle East News

Government ban on Iraq oil workers' union withdrawn

The Iraqi government has withdrawn an order banning eight key union organisers belonging to the powerful Iraqi Federation of Oil Unions (IFOU).

The union leaders were ordered out of the southern city of Basra after the Western backed government of Nuri al-Maliki said they were members of “militias” and helped in the smuggling of oil.

The union denied these charges. Hassan Juma’a Awad, the head of the IFOU, called on unions around the world to rally to the oil workers.

In a statement he said, “This act is a clear evidence that the Iraqi state seeks to liquidate trade unions in this important Iraqi economic sector. It is important to note that the south is the main source of oil in Iraq.”

Sabah Jawad, the spokesman for the Naftana, the organisation that campaigns for Iraqi oil rights, told Socialist Worker that the government reversed the order following mounting pressure from Iraqi unions and the international anti-war movement.

Jawad said, “We told Hussain al-Shahristani, the Iraqi oil minister, that this was not acceptable, and informed him that we were aware of the measures being taken by the oil ministry”

US and European oil multinationals are scrambling to grab Iraq’s vast oil reserves. George Bush made the take-over of oil one of his key “indicators” that the “surge” is succeeding.

The return of the multinationals, 36 years after Iraq nationalised its oil, has been greeted with widespread anger.

The oil workers have been at the head of the movement resisting the hand over of the industry to western companies.

“The withdrawal of the order is a victory for international solidarity and Iraqi trade unions,” Jawad said.

Government ban on Iraq oil workers' union withdrawn|2Aug08|Socialist Worker

Iraq's Oil Output Is Highest Since U.S.-Led Invasion (Update2)

Iraq's daily oil production is at its highest level since the March 2003 U.S. invasion, in large part thanks to improved security, according to a Pentagon audit.

``Iraqi oil production set new records this quarter, with output reaching 2.43 million barrels per day, the highest quarterly average since the invasion,'' Stuart Bowen, the Defense Department's inspector general for Iraq reconstruction, wrote in his 18th quarterly report to Congress on the expenditure of $50 billion in U.S. economic aid. Production fell to 1.3 million barrels a day during 2003.

A $34 million security system of ditches, fences and concertina wire has stopped attacks since July 2007 on the pipeline from Kirkuk in the north to a major refinery in Baiji, central Iraq, according to the report, which was released today. The result has been a substantial rise in crude oil exports from the north, Bowen said.

``Iraq's burgeoning oil windfall, which has yielded more than $33 billion in revenues to date in 2008,'' may result in another $7 billion that could be spent on reconstruction as U.S. spending winds down, Bowen said. Analysts say Iraq has the world's third-largest reservoir of untapped crude oil.

Contributing to Iraq's improved security was the so-called surge of almost 30,000 U.S. military personnel that ended this month plus operations of the Iraq Security Forces, who cleared Muslim militias from Basra, Baghdad's Sadr City, Mosul and Amara, said Bowen, who for the third time this year reported increasing improvements in Iraq's security and economy.

`Year of Transfer'

These operations have been followed by Iraqi government commitments to spend more than $100 million in each of these cities, he said.

The Iraqi government is spending more money on reconstruction in this ``year of transfer,'' Bowen said, up to an estimated $13 billion this year compared with $4.2 billion in U.S. funds.

An indication of improved security is the reduction in U.S. combat deaths, with four so far this month, plus another five non-combat deaths, according to the Pentagon. The four combat deaths is the lowest number since May 2003.

``As heartening as that is, it is not the metric by which we measure success but it is certainly an encouraging sign,'' spokesman Geoff Morrell said yesterday at a Pentagon briefing.

Since the March 2003 invasion, 4,117 U.S. members of the U.S. military have died in combat in Iraq, according to Pentagon figures.

Increased Exports

Iraq's increased production between July 2007 and May was especially noticeable in the north, where exports rose by about 91.3 million barrels, or about $8.2 billion, Bowen said.

In addition to expanded exports, the uninterrupted growth in supplies of refined petroleum products ``has contributed to the increase in electricity production and improved living conditions of the Iraqi people, making fuel available for heating, cooking and transportation,'' he wrote.

In contrast, Bowen wrote in January 2007 that at least some of the oil storage facilities at Baiji were under insurgent control.

``It's a good-news story, but the cloud in the silver lining is that the actual production capacity has been barely sustained and hardly expanded,'' Yahia Khairi Said, director of Middle East Revenue Watch at the London School of Economics, said today in a telephone interview. ``It was in a bad shape to begin with and during the war. Iraq has not succeeded in properly maintaining the fields or expanding their capacity.''

Cheney Comments

At the start of the Iraq war more than five years ago, Vice President Dick Cheney said Iraq might be able to increase oil production to 2.5 million to 3 million barrels daily by the end of 2003. Iraq pumped 2.48 million barrels a day in February that year, the last full month before the war began. Production fell 44 percent the following month, to 1.4 million barrels a day. It decreased to 1.3 million barrels during 2003, according to data from the U.S. Department of Energy's Information Administration.

The department said in an August 2007 report that the Baiji refinery ``has been subject to repeated disruptions and power loss and generally operates at around 75 percent capacity.''

Bowen said the turnaround in the north ``stems in part from the improved security across Iraq and the success of the Pipeline Exclusion Zone,'' barriers that protect oil pipelines.

The Iraqi government plans to build similar protection systems for the pipelines between Baghdad and Karbala and between Baiji and Baghdad, the Pentagon said.

Bloomberg.com: Worldwide

Iraq calls from major oil companies to reduce the duration of service contracts

Officials said ****utives of oil companies that Iraq asked the international oil companies to amend their proposals on service contracts worth approximately amounting to three billion dollars and aims to increase the country's oil production by about one quarter. The official source said the amendments may delay the signing of six contracts amounting to the value of each of them about 500 million dollars until August or September.

The Oil Ministry had said in June 24 that she would sign the agreements within a month. Over Oil Minister Hussein Shahrastani expressed disappointment about the delays in finalizing the contracts. But ****utives from the two oil companies said that Baghdad had asked the major companies to amend their proposals on contracts that will be the duration of one year to 18 months and not two as was decided in the past.

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The Gas Industry in Iraq

Still gas industry in Iraq is backward compared to counterparts across the Gulf States or Eastern Europe, did not meet the ambitious or reduce unacceptable and the reasons are many prevent this, and we need the world today looking for energy alternatives, which proved its high cost and maintenance of the oil and gas as a resource essential for energy in the world to develop The gas industry in Iraq by Iraqi volumes Reserve, which reported 109 billion cubic feet Iraqis Experts estimate that 70% of which is a companion to the process of gas extraction of oil from oil reservoirs and this Madjal estimates and reports issued by the Chamber of Deputies set Iraq a day loss in billion dinars by the burning of associated gas daily, This astronomical figure still so far to mourn the results of the future.

But what we today call a real need to build advanced gas industry in Iraq is a world trend towards substitute gas for oil in the wheel recycling industry, energy and the daily life of citizens, especially in Europe, which intends to import more than 90% of the production field (crutches), which was announced by the competition Soon between the companies specialized in manufacturing gas exclusively, but what we would like to put the reader where .. Is not free to shape Iraq's gas company along the lines of what is intended residence of the National Oil Company, is not the gas sector in Russia has become one of the most significant sectors and a strategic relationship and ties between Europe and Russia as an example, not to mention the experience of Qatar and the UAE in this area, then we note that Iraq is Still suffers from real crises in the field of gas, especially used in the manufacture of electric power to the Iraqis, and this section we call on the Iraqi oil industry to the formation of Iraq Gas Company for there to be allocated from the company to work independently of the National Oil Company.

So the government is called upon today to reconsider the gas industry in Iraq and working mechanisms and administrative entity.

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Orr concluded a contract with a group orbit

Orr was hired by the company public one of the companies, the Ministry of Industry and Minerals orbit with a commercial processing plant of the company's Alkablwat b (600) tons of raw materials used in the manufacture of aluminium bars and the value of two million dollars. An official source at the company explained that the company received (101) tons of materials out above (600) tons and measuring (9.5) mm The remaining articles will be processed during the next two months, adding that the company embarked on the implementation of contracts with the Ministry of Electricity, which was distributed by two decades First with the Directorate General of Electricity Distribution south for processing electrical wire outstanding (OHL) The second contract will be allocated to the General Company for Electrical Industries for processing wire wrapped electric motors and a quantity (1) tons.

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the Central Agency for Statistics: our exports last year amounted to more than 41 billion dollars

The Central Agency for Statistics on the total exports to Iraq in 2007 of crude oil and petroleum products and other commodity materials hit (41268), equivalent to one million dollars (52286433) million Iraqi dinars. A statement issued by the Directorate of publishing and relations in the body: "This constitutes an annual increase of $ (6.40%) than in the record in 2006 which stood at (29361) million dollars or the equivalent (43072411) million Iraqi dinars. He added:" The value of exports of Iraqi Of crude oil rose by (2.38%) during in 2007, amounting to (39531) million, equivalent (50085321) million Iraqi dinars after it was (28610) million, equivalent (41970811) million dinars in 2006.

The statement pointed out: "The value of exports of petroleum products for fuel oil has increased by Standard (7, 181%) on the percentage recorded in 2006, reaching the total value of these exports (1565) million, equivalent (1982728) million dinars while the (556) million, equivalent to (814933) million Iraqi dinars in 2006. He explained: "The value of commodity exports amounted to (172) million, equivalent (218384) million Iraqi dinars and an annual amount (5, 7%) in 2006 from Hitting (160) million, equivalent (235160) million Iraqi dinars .. He pointed: "to improve the exchange rate of dinar led to a decline in the value of exports by the Iraqi dinar (7%) in 2006 from the reported statement:" The Group of Arab States formed the highest percentage increase of total commodity exports except for Iraqi crude oil and petroleum products, and it hit To increase (1.96%) .. Syria has occupied first place in the list of those countries and by (1, 31%), followed by Jordan (9, 27%) and then by Arab Emirates (2, 20%) .. The highest proportion of exports to foreign countries were by Switzerland (6, 3%) of total commodity exports except for crude oil and petroleum products.

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Update.......

Amending the Iraqi Central Bank Monetary Policy

The CBE decided to have compulsory reserve on all bank deposits by 25%, whether governmental or civil deposits came in a statement issued by the Central Bank:

Noted the Central Bank of Iraq, the banking market continues to encourage them to provide reasonable limits of credit granted to private activity and keep abreast of current economic trends of the State in promoting development and reconstruction and the fight against manifestations of unemployment and economic stagnation, particularly in the real sector of civil, but on the contrary, he induce many Banking on the tools of monetary policy for the investment rates and excess reserves amounted to some 100% of surpluses in the Central Bank of Iraq tools for profit without concern for economic activity and its financial intermediation of the required funding needed for the market to the extent necessary and desirable.

State banks also exercised the same using the available surpluses resulting from the government accumulated deposits has not been disbursed through annual public budgets, to assume the expense of investing in facilities in the Central Bank and other tools available prior to the lifting of the compulsory reserve requirements to 75% of the total government deposits. Explaining that although the central government deposits had reached until April 2008 about 16 trillion Dinarmen a total balance of deposits of 29 trillion dinars.

The statement emphasized that such a trend among banks and the continued desire to maximize profits through investments and Milan from cash surpluses towards monetary policy tools available to meet liquidity and control the high levels led to a weakening of financial intermediation, which still indicates weakness in interest rates on saving the Taazemha Bank credit granted, and that this matter has been taken contrary to the second objective of monetary policy is achieving stability in the financial system (that is, lifting the capacity of financial intermediation between units surplus and the fiscal deficit, reducing the level of proliferation of interest between creditor and debtor that increase is "on 8 points).

The statement added that in light of the progress of the view
Banks go towards stimulating the market to assign monetary policy trends in the provision of credit and bank financing required by the state of targeting GDP and address the unemployment and economic stagnation.

And to continue to deal with inflation and price signals across the target adopted by the Central Bank to target inflation and achieving a unified framework of stability and economic growth desired.

The Central Bank of Iraq as follows:

1 - is the compulsory reserve rate of 25% on bank deposits of all deposits, whether governmental or civil broken down by 5% in cash reserves "in the coffers of banks and 20% deposited in their accounts with the Central Bank of Iraq and treated in accordance with the mechanisms and regulations currently in force" in this regard.

2 - may not surpluses resulting from bank deposits, government exclusively "investment in the tools of monetary policy in the investment deposit accounts of existing facilities or remittances Central Bank or use for the purpose of financing the public debt through participation in the auction treasury remittances. It also prevents cross-loan lending between banks. To be allowed to go to invest about all forms of bank credit, according to the instructions and regulations issued by the window and a bank.

3 - are entitled to all the banks invest surpluses in the banking tools Central Bank of Iraq and the Treasury any money other tools available (except banking surpluses resulting from government deposits referred to in paragraph 2 above), a rate of not more than 35% of the total surpluses aforementioned "resulting from deposits Exclusive audience. " Banks agree that the trend in investment surpluses towards the revitalization of the rest of bank credit and developing financial innovations and modernizing the banking industry of the country.

4 - working in the directions above, starting "from the third of August 2008.

http://www.almadapaper.com/paper.php...page&sid=47505

US and Iraq Close to Security Deal

Iraq and the United States are close to a deal on a sensitive security agreement that Iraqi officials said yesterday satisfies the nation's desire to be treated as sovereign and independent.

The agreement, under intense scrutiny in both countries, sets the terms for the presence of US troops in Iraq. Negotiations had stalled a month ago largely over the Bush administration's refusal to specify an intention to withdraw troops. While the current version does not specify any exact date, officials said, President Bush's recent acknowledgment that withdrawal was an "aspirational goal" has revived the talks and pushed them closer to completion.

The emerging agreement, officials said, gives Iraqis much of what they want - most notably the guarantee that there would no longer be foreign troops visible on their land - and leaves room for them to discreetly ask for an extended US presence should security deteriorate.

"The intention is to maintain full sovereignty for Iraq with close observation of the security situation, which will determine exactly when Iraq will no longer need American forces," said Jalaluddin al-Sagheer, a member of Parliament from the Islamic Supreme Council of Iraq who is close to the negotiations.

"The negotiations had gotten to the point that a draft was being circulated," said a US official in Washington who is familiar with the negotiations.

The Bush administration's unofficial deadline for the deal has long been July 31. Although the UN mandate allowing US troops to operate in Iraq will not expire until the end of the year, politicians in both countries have been concerned that with elections approaching in the United States and Iraq, it might not be possible to reach an agreement once the fall campaign is in full swing and it would be better to finish negotiations during the summer.

Officials said that they were discussing the goal of having all US troops, including advisers and trainers, leave by 2010, but that the time of departure would depend on conditions on the ground.

The authorization for the presence of US troops would be renewable annually, according to Ayaed al-Sammaraie, a Sunni leader.

On the other side, the White House spokeswomen Dana Perino said “it's a fairly complex agreement when it comes to the broad issues of the economy, security matters, diplomacy issues, political matters. While we've been working on this agreement with them, it's a negotiation; things go back and forth.”

“While we've been working on it, the Iraqis have increasingly gained confidence in their political system, because they've been able to work together and get some of these laws passed. Prime Minister Maliki and the President keep in touch through their negotiators and also via their secure video teleconferences that they have every other week”, Perino added.

In answering a question about the period of negotiations to be lasted, Perino said “couldn't put a time frame on it. But they're nearing the end of the negotiations, and so that's why it's a quite intense period right now.”

http://pukmedia.com/english/index.ph...603&Ite mid=1

124 contracts signed, 30 to follow - construction committee

Basra's Construction Support Committee on Wednesday said that has signed 124 contracts with companies in accordance with high standards of conduct, noting that 30 other contracts are on the way.

"Until Wednesday, Basra's construction committee has signed 124 contracts with local companies that have been selected to implement projects in 11 sectors: health, municipalities, education, universities, communications, water, electricity, sewage, water resources, sports, and youth," the committee's secretary, Tareq al-Mousawi, told Aswat al-Iraq - Voices of Iraq - (VOI).

Headed by the minister of state for parliamentary affairs, Safaa al-Din al-Safi, the committee was set up in synchronization with the commencement of Operation Saulat al-Fursan (Knights' Assault) in late March and was given $100 million in donation from Prime Minister Nouri al-Maliki.

"Over 30 other contracts will be signed in the coming few days," Mousawi added.

The Shiite province of Basra lies 590 km south of the Iraqi capital Baghdad.

http://www.aswataliraq.info/look/english/article.tpl?IdLanguage=1&IdPublication=4&NrArticle =87644&NrIssue=2&NrSection=2