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

U.S. Ambassador Crocker arrives in Najaf

U.S. envoy to Baghdad Ryan Crocker on Saturday arrived in the Shiite holy city of Najaf after he inaugurated the joint U.S.-Iraq- center to rebuild the neighbor Karbala, a media source from Najaf administration said.

“Ambassador Ryan Crocker arrived today in Najaf and he is expected to give a news conference later today,” Ahmed Deabil told Aswat al-Iraq- Voices of Iraq- (VOI).

Earlier on Saturday, Crocker opened a U.S.-Iraqi center to rebuild the Shiite scared city of Karbala, 50 km east of Najaf.

Najaf, 160 km southwest of Baghdad, is home of Shiite top clerics including Grand Ayatollah Sayyid Ali al-Sistani. It hosts the shrine of the first Shiite Imam Ali, cousin and brother-in-law of Prophet Mohammed.

Crocker’s visit of Najaf came only a day after some media reports claimed that Ayatollah Ali al-Sistani had issued Fatwas (religious edicts) suggesting support of armed resistance against the foreign forces, a claim described by sources close to the Shiite top cleric as “false”.

“The reports of issuing fatwa by the Shiite cleric Sistani permitting taking up arms to drive foreign troops out of Iraq were baseless, ” a close source to Grand Ayatollah Ali Sistani’s office told VOI on Friday.

The source, a cleric from Karbala associated with Sistani office,pointed out “Sistani’s stance is clear since toppling the former regime(of Saddam Hussein) by calling for sticking to civil resistance to drive foreign troops out of Iraq”.

Ali Sistani, living in Najaf, is the top Shiite cleric and holds a strong sway over Shiites in Iraq and a number Muslim countries.

Aswat Aliraq

Babylon Fund Posts Modest Gain in April

After dropping 6.45% in March, the Iraq-focused Babylon Fund made a modest gain of 0.8% gain last month, returning it to near-positive territory year-to-date.

The fund benefited from both the Iraqi dinar’s continued strengthen and a mixed bag of Middle Eastern telecom, construction and holding companies with large penetration in Iraq, according to portfolio manager Björn Englund.

Last month, the US$16.5 million fund had most of its assets in the financials sector (39%), followed by a 12% allocations to both the oil and energy sector and the construction sector.

“Foreign asset allocaters are optimistic from a portfolio diversification perspective, due to the continued non-correlations witnessed between the ISX/Babylon Fund vs. both GCC, MENA and broader EM indices,” Englund said.

Babylon Fund Posts Modest Gain in April | FINalternatives

Sorry if already posted

Iraq to Accept More Companies to Bid for Oil Deals

Iraq is planning to issue a new list of pre-qualified international companies to bid for future oil and gas deals to develop the country's fields, a spokesman for the Iraqi Oil Ministry said Monday.

Last April, Iraq accepted 35 international oil companies to compete for hydrocarbon contracts out of 120 firms that applied to the ministry to qualify.

"There will be another invitation for companies to submit their qualification documentation to compete for the development of smaller oil and gas fields," Assem Jihad told Dow Jones Newswires.
"There is another chance for companies to compete for the second round of licenses," he added.

Jihad said the 35 companies announced in April would compete for the development of Iraq's large oil fields. The ministry is expected to announce the first round of tenders to develop these oil fields in the second half of the year, Iraqi oil officials have said.

The ministry spokesman didn't specify when the ministry would issue the new invitation for companies to send their documentation for qualification, but said it would be as soon as the ministry finished awarding the first round of tenders to develop large oil fields.

"We don't know yet when we will invite companies for the second round of licenses but it will be immediately after the conclusion of the first round of tenders," Jihad said.

Iraq is currently in the final stages of striking what are called Technical Services Contracts with oil majors to help boost crude oil production in the country's largest producing fields.

Iraqi oil sources said these Technical Services Contracts, or TSCs, could be signed as early as June. Each would last two years and could be extended for another year.

Iraq wants to boost production by 600,000 barrels a day in six producing oil fields in northern and southern Iraq. They are Kirkuk in the north, West Qurna 1, Zubair, Missan, Rumaila and Luhais in the south.

Iraq is currently producing between 2.3 million and 2.4 million barrels a day of oil, a tiny fraction of its 115 billion barrels of proven crude reserves, the world's third largest.

Iraqi oil officials have estimated the value of each TSC to be around $500 million.

RIGZONE - Iraq to Accept More Companies to Bid for Oil Deals

Baghdad to limit power of revived Inoc
New oil law will restore Iraq National Oil Company but ministers vow it will be less bureaucratic.

The powers of the Iraq National Oil Company (Inoc) are to be significantly curtailed under Baghdad's latest energy policy, with two senior Iraqi ministers vowing to end its historical role in overseeing oil production.

The government-run Inoc was founded in 1964 to control the supply of crude but was forced to close in 1987 under Saddam Hussein's regime.
However, it is due to be revived under the country's new oil law.

Considering recent suggestions that Iraq's oil reserves could be even larger than Saudi Arabia's, Inoc could play a critical role in the region's oil industry.

Under the working draft of the proposed law, Inoc will be re-established, with the North Oil Company and South Oil Company, which currently manage production in their respective regions, to be incorporated within the larger group.

Fears have grown that the defunct company would have too much power and would lack the experience to deal with international oil majors once it is re-established.

However, Iraq's Deputy Prime Minister Barham Salih says the emphasis is for Inoc to operate a less bureaucratic business model.
"The state monopoly has proved to be an utter disaster," says Salih.

"There are those of us, not just in Kurdistan but in other parts of Iraq, who think the old way of mismanaging oil should be done away with."

Salih, who was Kurdistan's prime minister from 2001 to 2004, adds that Iraq's oil sector continues to underachieve, with production rates of just over 2 million barrels-a-day – a level that has barely changed since Hussein's regime ended in 2003.

We simply cannot do what is needed to launch Iraq's oil sector recovery by allowing the state bureaucracy to retain its control and prevent competitive and efficient management taking hold," says Salih.

"I am not interested in an inefficient Inoc that will mismanage the oil sector and that will not produce the best possible revenues for the Iraqi people. It needs to be smaller and more nimble."

The oil law has faced significant delays but further progress is expected in the next few months, according to Iraqi Foreign Affairs Minister Hoshyar Zebari. However, he declined to give a deadline for its approval.

"The Americans are very keen to see this oil law pushed through this year," says Zebari. "It came to a standstill but I think we have now broken the standstill and have agreed to go back to the original text. There will be progress this year."

Salih says new studies put Iraq's oil reserves at about 350 billion barrels of oil, three times the previous level, and more than Saudi Arabia's 264 billion barrels of proven reserves.

"Yes, it is 350 billion barrels and we have a number of sources to verify it," says Salih.

In 2007, US energy consultant IHS said there could be another 100 billion barrels of oil reserves in Iraq, in addition to the 116 billion barrels then identified.

Baghdad to limit power of revived Inoc

Iraq MPs stands as to US elections impact

Since the first beginning of US Presidential elections campaign, Republican and Democratic candidates put Iraq on the top of their electoral advertisement for the importance it has in the USA since war in Iraq constitutes for them US image to the world. However, for Iraqi policy makers, these elections are very important and they should follow up its progresses.

While some MPs tend to support Democratic candidate Obama some others deem that the most important thing is that the new president shall cooperate with Iraq government and to meet US engagements towards Iraq, others deem that all what happens in the US elections is nothing more than advertisement to gain support of US voters and say that US policy in Iraq and Middle East is very clear.

Iraqi parties observe the progresses of US Presidential elections yet they deem that the most important issue is first to observe progresses in Iraq and than in the countries that have an influence on the Iraqi situation.

Iraq MPs stands as to US elections impact | Iraq News | Alsumaria Iraqi ********* TV Network

Tempers boil as energy E.X.E.C's, Senators spar over Oil Prices

With oil prices screaming past $133 a barrel and prices at the gas pump smashing records, lawmakers berated, needled, even sneered at oil company ****utives Wednesday for trying to present themselves as the "hapless victims" in today's energy crisis.

Members of a Senate panel grilled ****utives from the nation's five largest oil companies over issues ranging from multimillion-dollar ****utive pay to a possible Exxon Mobil Corp. deal in Iraq.

The ****utives have been here before, raising their right hands and swearing to tell the truth to a hostile panel.

But with crude prices spiraling into never-before-seen territory and policymakers at a loss to stop them, Wednesday's hearing took on a more ****bic, personal tone — with Democrats accusing the oil companies of inflicting serious damage to the U.S. economy.

"Does it trouble any of you when you see what you're doing to us?" asked Sen. Richard Durbin, D-Ill.

Appearing before the Senate Judiciary Committee, ****utives from Exxon Mobil, Chevron, Shell Oil, BP America and ConocoPhillips tried to steer the debate toward their industry's chief policy complaint: that the U.S. has closed off too many areas to oil and gas drilling.

With pink-clad protesters holding up signs — and one being escorted out yelling "We need to separate oil and state!" — the ****utives tried to make their case that instead of going hat-in-hand to ask such countries as Saudi Arabia to pump more crude, the federal government should allow more drilling here at home.

"If the nation set a goal of increasing domestic production by 2 to 3 million barrels a day by opening up new sources of exploration and production ... we could demonstrate to the world that we are in control of our own destiny," Shell Oil President John Hofmeister said.

But with lawmakers poised to go home for the Memorial Day weekend — the traditional start of the summer driving season — this was not the session in which oil companies were going to win any new converts.

Defending record profits

Sen. Dianne Feinstein, D-Calif., accused the ****utives of lacking an "ethical compass about the price of gasoline" and dismissed the industry's policy arguments as "just a litany of complaints, that you're all just hapless victims of a system."

Exxon Mobil Senior Vice President J. Stephen Simon defended his company's record profits, arguing that it depends on earnings from the "current up-cycle" to sustain large investments over the longer term.
Committee Chairman Patrick Leahy, D-Vt., pounced on Simon's use of that phrase.

"What a nice term," Leahy scoffed. "And I suppose we can tell our constituents when they're finding that they can't afford to go to work because of the price of gas, 'Don't worry, you're in a 'current up-cycle.'"

Leahy then asked the ****utives how much they made last year. Compensation packages for all the ****utives were in the millions, with Exxon Mobil's Simon testifying that he received $12.5 million last year.

When ConocoPhillips ****utive Vice President John Lowe said he did not know the exact amount, Leahy responded: "Mr. Lowe, I wish I made enough money that I didn't even have to know how much I make."

With light, sweet crude for July delivery soaring $4.19 a barrel Wednesday to close at a breathtaking $133.17 on the New York Mercantile Exchange, and gas prices — according to AAA — averaging nearly $3.81 a gallon nationwide for regular, lawmakers wanted to know where the oil ****utives thought oil prices should be.

Shell's Hofmeister said a price range of $35 to $65 a barrel would be consistent with "our ability to run a successful company."

But Chevron Vice Chairman Peter Robertson argued a company can't produce oil from the kind of areas now available to them for that kind of price. And ConocoPhillips' Lowe argued that price would be north of $90 a barrel.

Sen. Charles Schumer, D-N.Y., questioned Exxon Mobil's efforts to land a deal in Iraq, even though the government in Baghdad has not yet finalized a national oil law or decided how to share oil revenues among the various factions in Iraq.

'We're doing all we can'

When pressed to commit Exxon Mobil not to ink any deals before an oil law is in place, Simon responded: "No, I'm not making any commitment of that type."

Calling that decision "outrageous," Schumer argued Exxon Mobil could "ex****bate the very problems that our soldiers, General (David) Petraeus and others are trying to undo."

When challenged by Durbin to say whether they had "any concerns about what you're doing to this country with the prices that you're charging and the profits you're taking," Exxon Mobil's Simon spoke up.

"We have a lot of concern about that," Simon said. "And we're doing all that we can to produce as much product as we can to put downward pressure on prices.

"When you look at what we've done, for example, in refining, we've expanded our refining capacity at a rate 40 percent higher than the rest of industry," Simon said before Durbin interrupted him.

The oil ****utives are slated to appear on Capitol Hill again today before a House panel.

Tempers boil as oil ****s, senators spar over prices | Chron.com - Houston Chronicle

This is some encouraging news especially for those of us who have grown weary of the dinar coaster ride. It is easy to become discouraged because of the endless dates that come and go and all of the naysayers and doubters that make you waiver between doubting your investment and yourself and high hopes that the rv is just around the corner. Thanks Seaview.

Interesting,

Nice overview link on current situation in Iraq, worth a read.

Iraq?s Kurdistan region signs an unknown number of new oil deals? at Iraq Oil Report

Iraqi President, Premier say new Ministers should soon be Announced

Iraqi President Jalal al-Talabani and Prime Minister Nouri al-Maliki have stressed the significance of speeding up the submission of the names of new ministers to the Parliament and passing crucial laws, a presidential statement revealed on Saturday.

On Saturday at noon, President Talabani received al-Maliki in his Baghdad-based residence to discuss current Iraqi affairs and means of developing the political process, according to the statement, which was received by Aswat al-Iraq­ - Voices of Iraq - (VOI).

Both sides have agreed on the need for "speeding up the submission of new ministers' names to the parliament," the statement noted.

On Friday, a spokesman for the Iraqi government, Ali al-Dabbagh, said that the government was waiting for a final agreement between the Iraqi Accordance Front (IAF) members to announce the new government.

The IAF, the largest bloc representing Arab Sunnis in the Iraqi political process, is composed of three main political organizations and has 44 seats in the 275-member parliament. It is the third largest bloc after the Shiite Unified Iraqi Coalition (UIC), which holds 83 seats and the Kurdistan Coalition (KC), 55 seats.

The IAF withdrew its five ministers and deputy premier from al-Maliki's government in August 2007, citing its reasons as being the government's refusal to meet its demands. It linked its return to have some demands, including the release of detainees from Iraqi jails, met. Later on, the Sadrists, which has 30 seats in parliament, withdrew their six ministers from the government, followed by the INL, which has 19 seats, quit its five ministers.

The statement also quoted the president as congratulating al-Maliki on the security successes achieved since the commencement of the military operations in the cities of Basra, Sadr and Mosul.

In late March 2008, Iraqi security forces launched a wide-scale security operation in the southern Basra province and in Baghdad's eastern city of Sadr with the aim of tracking down armed groups and outlaws.
Another military operation, codenamed, Lion's Roar, was carried out in the northern city of Mosul for the same reason.

Aswat Aliraq

Mosul's mayor survives 4th assassination attempt in 10 days - wow! well done that man!

The mayor of Mosul city survived an explosive charge attack that targeted his motorcade on Saturday, the fourth attempt on his life in only 10 days.

"An explosive device detonated near the motorcade of Mosul Mayor Zuheir Muhsin al-Araji in al-Maared area, wounding two of his companions and causing damage to one of the vehicles of the motorcade," the source, who requested anonymity, told Aswat al-Iraq - Voices of Iraq - (VOI).

The attack is the fourth of its kind on the mayor during the past 10 days, the source added.

Mosul, the capital city of Ninewa province, lies 405 km north of the Iraqi capital Baghdad.

Aswat Aliraq