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

Iraq Extends Discounted Oil Sales To Jordan For 3 Years

Iraq agreed Thursday to renew a 2006 deal to sell discounted oil to Jordan for three years, Jordanian Prime Minister Nader Dahabi said after talks with Iraqi Prime Minister Nuri al-Maliki.

"The agreement was supposed to end in August this year, but Iraq agreed to renew it for another three years at discounted prices," Dahabi told reporters at a news conference with Maliki after a two-hour meeting.

Iraq agreed in August 2006 to provide Jordan with between 10% and 30% of its oil needs of around 100,000 barrels a day, at a preferential price starting from September that year, but deliveries began a year late.

Jordan was paying Iraq$18 a barrel less than the August 2006 price for the deliveries. At the time, oil was trading at around $75 a barrel on world markets.

"Oil deliveries faced security problems in the past, but the situation has improved and we discussed mechanisms to deliver the oil to Jordan," Dahabi said without elaborating.

His announcement came two weeks after Iraqi Vice President Tareq al-Hashemi said Baghdad would review the deal amid soaring world prices.

Jordan increased domestic fuel prices last week by almost 10%, the fifth such rise in as many months.

Maliki, who also met with King Abdullah II, discussed the situation of around 750,000 Iraqi refugees in Jordan, which has estimated the costs of hosting the refugees at more than $2 billion.

"The security situation and living conditions in Iraq have improved and those who wish to return to their country will receive all possible assistance and encouragement by the Iraqi government," Maliki said.

"The Iraqi government has allocated $195 million to help Iraqi families who wish to return home," said Maliki, without giving further details.

In May, Jordan said it would soon designate a new ambassador for Iraq where its embassy, which came under deadly attack in August 2003, is run by a charge d'affaires.

The U.S. has been pushing its Arab allies, notably Saudi Arabia, to send ambassadors and high-level officials to Baghdad to help shore up support for the country's Shiite leadership.

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Al-Maliki in Jordan denies news about immediate signing the agreement with Washington Strategy

Prime Minister Nuri al-Maliki during his visit to Jordan that were not there is agreement between Iraq and the United States, but drafts and ideas for a convention during which disagreement in views between the parties, stressing that the Convention will be presented to the parliament before it is concluded.
T
he al-Maliki at a joint press conference with Jordanian counterpart in Amman, a rare golden Thursday that negotiations between Baghdad and Washington on the Convention did not reach the final stages yet, thus denying the reports of near signature.

He added that Maliki was agreed with Jordanian officials to facilitate the access of the Iraqi entry visa to Jordan.

For his part, Jordanian Prime Minister Nader Zahabi said a committee to discuss the problem of debt by the Ministries of Finance of the two countries, but pointed out that he had not yet been reached definitive solutions to the issue of Jordanian debt owed by Iraq.

Translated version of http://www.radiosawa.com/arabic_news.aspx?id=1614057

The Ministry of reconstructing the Kurdistan region of Iraq seeking to minimize the effects of rising prices on contractors

The Minister of Construction and Housing of the Kurdistan Regional Government of Iraq Emad Ahmed, on Thursday, the ministry has sought to reduce the impact of rising construction materials and asphalt at the contractors who implement the Ministry's projects, through the recommendations and propose new treatments will soon be put to the Council of Ministers of the province.

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The minister Imad Ahmed in an interview with "Uzmatik", "The ministry considers the loss of contractors is the result of the loss of government", saying "we do not want to win at the expense of the loss of contractors who implement the Ministry's projects."

The minister added that "the ministry will examine seriously the issue of losses and contractors looking for new mechanisms, in order to reduce those losses suffered as a result of high prices of construction projects within the roads and bridges, as well as reducing red tape."

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He explained that in the last study was one of the files of advances given to contractors, "has seen no fewer than 500 signing of staff in various areas of treatment" and adds: "We renew dealings with contractors, working in all phases starting from the payment of advances and the financial end, The receipt of projects "as he put it.

The minister Imad Ahmed, in his talk of "Uzmatik" We in the government of the territory "against economic monopoly, especially in the incidence of cement, asphalt," and adds "There is no monopoly, and our markets open, and all the imports of construction materials or other materials, the government will provide all facilities "As confirmation.

Engineer proposes Norouz hidden one who participated the meeting "to reduce bureaucracy in the areas of the predecessor and laboratories, creating an appropriate mechanism to reduce the losses incurred by contractors, as a result of rising construction materials."

He adds hidden "We must examine the reality of projects under Rises in prices, and suggested addressing this issue during contract between the government and contractors, where prices of basic materials written in the contract, to see how government contractors lose in the end."

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He says Mohamed Mahmoud in an interview with "Uzmatik" that "everything that is happening around him talk primarily of interest to citizens, and the high iron and cement damage the already debilitating conditions of citizens," stressing "the need for government intervention to benefit citizens in the crisis in the market."

It demands the contractor Oh Nuri government ", to help contractors loans, in order to import high-quality asphalt from the Gulf states," stressing that "experience has shown that asphalt used in paving the streets, not according to international standards," saying "the presence of such trade monopoly in local markets" .

Attention contractor Jottiar to Tuscany to sharp fluctuations in prices of iron from 700 U.S. dollars per ton to $ 1400 per ton within two weeks, says of the "Uzmatik" We expect the government to find a way out of this crisis, there are contractors implementing projects started, when the rate was less iron B $ 700 per ton of iron now, let alone other materials. "

The contractor Hama Gharib capable opined that the "rise seen by the construction materials linked to high crude oil prices in the world, as well as to monopolize the market by giant companies, including the two cement Tasluge and Cazin."

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Ahmed adds, "We are working on the basis of free competition, and that what is said is not true, and evidence is the presence of cement Turkish and Iranian and Pakistani, Saudi and other types of local cement Leap and Kufa and Badush in local markets"

It is expected, according to an interview, Minister of Construction and Housing, to organize the Kurdistan Regional Government of Iraq conference attended by officials in the ministry, in addition to contractors and professionals, devoted to studying the reality of projects and the obstacles faced by workers and develop mechanisms of action.

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Iraqi premier reports rift with US over security pact

Iraqi Prime Minister Nuri al-Maliki wound up a two- day official visit to Jordan Friday by reporting a rift with the United States over an agreement that defines the status of US troops in Iraq in the future. "There is no agreement so far, but rather a draft and ideas put up for discussion and over which there are differences in viewpoints," al-Maliki told reporters on the fringes of talks he held with his Jordanian counterpart Nader Dahabi.

"Such an accord should pass through a process of dialogue and discussion because it is going to be concluded by sovereign states and should ensure the sovereignty of the Iraqi state," he said.

Al-Maliki and Dahabi declared that they agreed to renew an oil agreement between the two countries, which expires on August 15, for another three years.

Lack of security hindered the implementation of the agreement which originally provided for supplying Jordan with between 10 and 30 per cent of its daily oil needs of around 100,000 barrels per day at "preferential prices." August 2003.

However, Minister of State for Information and Communication Affairs

"Conditions are now better than the past for conveyance of Iraqi crude to the Kingdom," Dahabi said.

Al-Maliki praised what he called "encouraging" remarks over the speeding up of the return of a Jordanian ambassador to Baghdad.

"Arrangements have already started for choosing the place and ensuring security" for the Jordanian diplomatic mission, he said.

Jordan has said that it is planning to name a new envoy to Baghdad, where the Jordanian embassy was the scene for a fatal bombing in Nasser Judeh said earlier this week that the safety and security of Jordanian diplomats "should be secured" befo*****d.

Iraqi premier reports rift with US over security pact : Middle East World

Update.......

Iraq federal, Kurd region oil chiefs informally agree on exports

The pipeline that could pump northern Iraqi oil for export is nearly complete but empty, ending for now in the soil near the borders with Syria and Turkey, on the side of a dirt road.

Across the dirt road are the buried pipelines that carry oil from Iraq's second-largest oil hub, Kirkuk, to the Iraqi government's oil export metering station guarded by Iraqi Kurdish forces less than a half mile up the dirt road, and on to the Turkish port of Ceyhan.

Norwegian company DNO's oil and the idled pipeline await the outcome of ongoing negotiations between the Kurdistan Regional Government and the federal Iraqi government to give it permission to export.

Both sides' oil officials say they are ready to sign an export deal, but there has been no agreement yet. If one is reached, it could add 1 million barrels per day to the market within five years -- half of Iraq's total exports now -- according to KRG estimates.

"We have told the KRG that we are willing to receive all the oil that's being produced by DNO and others," said Iraqi Oil Minister Hussain al-Shahristani, adding the "others" include only the four contracts signed before February 2007 when a draft oil law was agreed to by both sides. Oil produced by the more than a dozen other contracts signed since then would be confiscated outright, he said, claiming Baghdad's sole rights to sign deals.

"We told them OK, we'll send a technical team to hook up their pipeline to our export pipeline, and nothing has happened," he said. "We never had an issue with the fact that any oil produced in any part of the country is the property of Iraq."

He said all Iraqi oil exports must take place by Iraq's State Oil Marketing Organization and all the revenue deposited into the Development Fund for Iraq, the U.N. mandated and audited account of Iraqi oil sales.

"That has always been our position. We not only encouraged that but insist that there is no other way to export oil but through our export pipelines and SOMO contracts."

Ashti Hawrami, the natural resources minister of the KRG, said there are still a few issues on the technical side to be resolved before the KRG will be able to actually export.

"When we are ready, we will call our colleagues, and I don't envisage any problem in that," he said. "The metering station is in the KRG territory. We can just link up the pipeline, open the metering and tell SOMO that so many barrels are going through, please account for it.
"All we are doing is expanding Iraq's production capacity," Hawrami said. "So what's wrong with that?"

The export issue has been included in disputes between the central and regional governments over revenue sharing, the legitimacy of the KRG deals and the oil law.

Both sides say the constitution backs them, and both insist they are doing what's best for Iraq as a whole. But the structure of control and decision-making over the oil sector spread throughout the country hasn't been finalized. And there is still widespread opposition to such industry-friendly deals, such as production-sharing contracts the KRG has signed ("The government takes about 90 percent or so," Hawrami said), let alone the role international oil companies should play in Iraq's oil future.

Talks are expected to resume next week, over this and more fiery impasses, such as a new federal oil law and the more than a dozen other contracts the KRG signed with international oil companies.

DNO's project to find and produce oil is by far the most advanced of them all. A 45-minute drive from the end of the empty pipeline is the village of Tawke, where a pool of seepage oil bubbles. Nearby is DNO's main KRG site, where a handful of wells produce oil and either fill up tankers there or at the central processing facility.

Tawke has produced a 6,000 to 7,000 barrel per day average since June 2007, said Magne Normann, DNO managing director of the Iraqi Kurdistan work.

"We are not in a position to give any guidance to this, but we hope that we are commencing export by the end of this year," he said. "The design capacity of our facilities is 50,000 bpd, which can be delivered once export is in place. In the meantime we are delivering oil to the domestic market by tanker trucking."

About 10,000 bpd of KRG-produced oil is sold currently, all to the domestic market, Hawrami said. He denies reports that oil exports via tanker have headed into Iran.

He said most of the new production from within the KRG boundaries will be sent to foreign markets.

"Maybe some of it will be used to feed a few local refineries to satisfy the local consumption," he said. There are plans for about 100,000 bpd worth of refineries in the region.

But within five years, Hawrami said, the KRG oil sector will be more robust.

"From the contracts we've signed, and those under negotiations, and the contracts that may be signed in a year, 18 months down the line," Hawrami said, "cumulatively out of these activities we believe we'll get a stable million barrels a day for many years."

Iraq federal, Kurd region oil chiefs informally agree on exports - UPI.com

Update.......

KRG Official on Oil Production, Kirkuk, Turkey


London, Asharq Al-Awsat- Falah Mustafa, head of the Kurdistan Regional Government (KRG) in Iraq foreign relations department (equivalent to foreign minister), said that KRG Prime Minister Nechervan Barzani will visit Baghdad in mid-June to discuss with Iraqi Prime Minister Nuri Al-Maliki and other officials concerns between Kurdistan and the federal government, in particular, the oil and gas bill and the fate of Kirkuk.

He said: "Oil exploration operations in the region are continuing and there are oil contracts waiting to be signed, in addition to the ones signed two years ago. We are now in the production stage." He highlighted Prime Minister Barzani's assertion that the "region is ready to pump oil through Iraqi pipelines at the rate of 1 million barrels per day to start with."

He added that the "regional government's compliance with the oil resources issue is in accordance with the Iraqi constitution. That is, 17 percent of the revenues go to the region's government and 38 percent to the federal government in Baghdad. This means we [KRG] are not taking all the revenue, as some wrongly believe." Mustafa stressed: "Under the Iraqi constitution, oil and gas belong to the people and we can offer much to our Iraqi people, particularly now at the stage of building and reconstruction."

He indicated that the Iraqi oil and gas bill "was delayed because of differences in the views of the region's government and some in the federal government who want to keep the oil industry policy as it was before; that is, subject to total central policy. We in the regional government and some officials in the federal government believe this important industry should be subject to the free market and open to investors to rebuild the oil industry's technology and expand exploration and investments. This is more of an economic issue than a political one; otherwise, Iraq will have to be content exporting two million barrels a day at a time when it has the potential to export six million barrels."

Speaking to Asharq Al-Awsat in London, Mustafa said: "We are here to meet British officials and discuss the situations in the region of Kurdistan and Iraq and the ongoing political process in the country and also to strengthen our relations, particularly the political, economic, and cultural ones."

"We are acting in accordance with what is set out for us in the Iraqi constitution and what is in accordance with Iraq's foreign policy and in coordination with the foreign ministry to serve Iraq as a whole and the region of Kurdistan because we are part of Iraq and the Iraqi people," he added.

On the nature of relations today between the KRG and the federal Iraqi government and whether the negative situation in Baghdad affects KRG policies, Mustafa said: "It is known that the Kurdish political leadership decided, in accordance with the voluntary union principle, that we should be part of Iraq, live in peace, act for the country's progress, and do everything we can in the interest of the Iraqi people. As long as the region is part of Iraq, we will do everything in our power to positively influence the political, economic, and cultural situations all over Iraq. We always call on our brothers in Baghdad to take our experiences in these fields to Iraq's other areas and are trying our best not to let some of the negative situations in some Iraqi areas to affect the region [Kurdistan]."

Regarding the proposals by the UN secretary general's representative for solving the question of Kirkuk and other disputed areas, the Kurdish official said: "the solution for this problem needs real will and political determination by all the Iraqi parties. The best solution is compliance with Article 140 of the Iraqi constitution. The Kurdish leadership's acceptance of it signified a large concession." He highlighted: "If Kirkuk comes under the region administratively, it will not mean it will be separated from Iraq. It will remain Iraqi, similar to Arbil, Sulaymaniyah, and Duhok, which are Iraqi governorates."

He added: "The first stage proposals presented by the UN secretary general's representative are not practical and ignore many facts. They are non-binding proposals and were a deep disappointment for the Iraqi parties." Mustafa appeared optimistic about Kurdish-Turkish relations, and said: "We are seeking to develop our economic, cultural, and political relations with our neighbor Turkey because it knows that we can play a positive role in the relations between it and Iraq. It is a historic neighbor and helped us a lot in the past. It has big investments in the region and can expand them in Iraq's other regions."

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Iraq Says Talks with US on New Pact Reach "Dead End"

Iraqi Prime Minister Nuri al-Maliki said on Friday talks with the United States on a new long-term security pact had reached a "dead end" because of U.S. demands that infringed Iraq's sovereignty.

"We have reached a dead end, because when we started the talks, we found that the U.S. demands hugely infringe on the sovereignty of Iraq, and this we can never accept," Maliki told journalists during a visit to neighboring Jordan.

The United States and Iraq are negotiating a new agreement to provide a legal basis for U.S. troops to stay in Iraq after Dec. 31, when their United Nations mandate expires.

They are also negotiating a long-term strategic framework agreement on political, diplomatic, economic, security and cultural ties.

In his first detailed comments on the talks, which are taking place behind closed doors, Maliki said Iraq objected to Washington's insistence on giving its troops immunity from prosecution in Iraq and freedom to conduct operations independent of Iraqi control.

"We can't extend the U.S. forces permission to arrest Iraqis or to undertake terror fighting in an independent way, or to keep Iraqi skies and waters open for themselves whenever they want," he said.

"One of the important issues that the U.S. is asking for is immunity for its soldiers and those contracting with it. We reject this totally."

U.S. President George W. Bush said on Wednesday that he was confident of reaching an agreement with Iraq. U.S. officials say they hope to reach a deal by July, but Iraqi officials have been more cautious and suggested that date may be missed.

PUKmedia :: English - Iraq Says Talks with US on New Pact Reach "Dead End"

Iraqi parliament rejects U.S. version of the fourth draft of a long-standing convention

The members of the House of Representatives last Thursday that the parliament rejected the draft amended by the American side of the Convention on long-term security between the two countries, with prominent Iraqi official expressed doubts about the possibility of reaching a final agreement on this matter with the current U.S. administration.

Her faith helped MP from the bloc the United Iraqi Alliance and a member of the Legal Committee of the Council told the Associated Press Agency that the latest version submitted by the American side of a draft convention were not satisfactory even though they included some good points but they were not the level of expectations.

She helped the legal committee recommended that the Iraqi negotiators reject this version of the draft, the fourth by the Americans since the talks began last March.

She helped to the latest American proposals have been granted immunity to U.S. troops, "but this is not enough" outstanding say, "Where is our dignity and sovereignty", lifting their immunity claim in full.

She helped the American side eased its demands on the control of large parts of Iraqi airspace but indicated that the Iraqi negotiators demanded full control of the State of airspace.

She helped commented, "If the Americans control over our land and our water and our skies, this means the end of Iraqi sovereignty."

The MP refused to give further information on the Convention or to talk about the number of military bases that the United States wants to maintain it, saying that Americans now avoid talking about the number of rules but demanding AS including the "American presence" until the completion of the readiness of Iraqi forces.

She helped the Convention does not contain any specific timetable to reduce the number U.S. forces in Iraq, describing the matter scandal.

For his part, questioned high ranking official and a relative of the atmosphere of negotiations, the Associated Press asked to remain anonymous, the possibility of reaching a final agreement on the agreement before U.S. presidential elections in November next.

With the Iraqi official reiterated that the Government of Nouri al-Maliki is interested in signing such an agreement if they serve the interests of Iraq, but stressed the disappointment of the Iraqi side of the "Washington's failure to provide any firm and clear commitment to protecting the country from any foreign invasion."

Translated version of http://www.radiosawa.com/arabic_news.aspx?id=1614106

Kurds DENY export oil without the knowledge of Baghdad

Neighbors - Irbil - a d b - denied the Minister of Natural Resources in local government in the region of northern Iraq Leste Horami of any operations for the export of crude oil from the Autonomous Region abroad directly. The transfer of the site's information about the Kurdish Democratic Party Horami yesterday saying that what comes across the truck is a black oil being exported and the knowledge of the Iraqi government.

The press reports have spoken about the smuggling of crude oil from fields in northern Iraq by truck through the territory of Iran.

The minister declared that the oil field (Cauca) in the town of Zakho on the Turkish border ready at a production capacity of up to 50 thousand barrels of oil per day, and this quantity ready for export in the event of receiving the consent of the Iraqi government, via the Turkish port of Ceyhan.

The delegation was representing the Committee on the oil and gas in the House of Representatives met with Iraqi Minister of Natural Resources to hold talks with him about the proposed law of oil and gas as well as on Iraqi oil contracts signed by the Government of the Territory with a number of international companies.

His Bayezid Hassan Kurdish member of the Committee said "Climate convinced delegation after talks with officials of the regional government on the problem of oil contracts to those contracts," and expect to put the draft law of oil and gas to Parliament for ratification as soon as the return of the delegation to Baghdad.

Translated version of http://www.aljeeran.net/economic.html

Securing its oil pipeline, Iraq can increase production and exports

More of Iraq's oil has seen the light of day and exports have realized post-invasion records as measures to stem attacks and other interference have proved successful along the key northern pipeline system.

Some who used to target the pipeline -- especially on the link from Baiji north through hot Sunni Arab insurgent territory and to Turkey -- are now paid to protect it, though long-term success is far from guaranteed.

"The export pipeline was under attack constantly last year this time," Oil Minister Hussain Shahristani told United Press International during an interview in his Baghdad office.

"Since then, with the awakening of the tribes in the region, we have recruited some young men from these tribes into our Oil Protection Force, and they've been doing a very good job defending those pipelines," he said. "We have really eliminated all the attacks, and that's why we've been able to export more."

The yearlong effort comes just in time: Iraqi oil exports passed the 2 million barrels per day average last month as oil continued climbing to record prices.

Overall oil production averaged 2.55 million bpd in May, "and we'll keep on adding to it toward the end of the year," Shahristani said. "We are planning to reach 2.8 (million) to 2.9 million bpd."

Iraq's south has more oil reserves, production and exports, and it has been less frequented by attacks. It's humming at 1.92 million bpd in production, he said, while northern flow has increased to 630,000 bpd. Domestic consumption is at "about half a million barrels a day," Shahristani said, with the rest sent to market via pipeline.

Although they hit 450,000 bpd in May, the pipelines from the Kirkuk fields in Iraq's north to the refinery of Baiji and then onto the Turkish port of Ceyhan were offline more often than not since 2003. Saboteurs were either sparking explosions as they tapped into the system or, more often, launching attacks on workers and infrastructure as part of their campaign.

There have been at least 779 attacks on pipelines from March 2003 through May 15, 2008, according to an expert in threats and vulnerabilities to the energy sector worldwide, who spoke to UPI on condition of anonymity.

Refineries have sustained 585 attacks, 569 on tanker trucks, six on maritime tankers and 47 attacks at the oil fields. And 767 workers have been killed, wounded or kidnapped.

More incidents have likely occurred but have gone unreported, the expert said.

This is true for the electricity sector as well, including 1,285 workers who met the same fate as their oil colleagues.

There were 681 attacks on transmission and distribution lines and 113 on power plants and substations.

But last summer the Iraqi and U.S. governments put together a new strategy to repair the lines, create better physical barriers against would-be threats, and use more armed Iraqis to guard their oil and electricity infrastructure.

"They've been threatened, they've been shot at, sent to areas where there's (al-Qaida in Iraq)," said Brig. Carew Wilks, a British official who heads the energy side of Strategic Operations for Multi-National Forces-Iraq. "They've been tremendous."

He also leads the Energy Fusion Cell, a coalition forces mix aimed at addressing Iraqi energy issues, such as working with repair teams of the ministries of Energy and Electricity. Key transmission towers and lines were also brought into a more secured area as well, Wilks said at his office in the fortified Baghdad "Green Zone."

"It was proven to be quite difficult to get the repair team safely for the repair," he said, but repairs were possible because of protection from the Iraqi army, police and the two ministries' security sections.
Shahristani said the Oil Protection Force is being folded into the Oil Police, a new arm of the Ministry of Interior.

"This will entitle them to pension, also if they are killed in the course of duty, and a number of other privileges, including salary raises," said Shahristani. "The salary, once they are properly part of the Oil Police, will be more than half a million dinars ($423) for the low salary as compared to the current lowest level of 250,000 dinars per month, so there is a number of incentives for them to join the Oil Police."

"There is no question that Iraq's ability to resume exports out of the Kirkuk-Ceyhan pipeline owes much to the collaboration of a number of Arab Sunni tribes, which are helping secure the area around Baiji," said Rochdi Younsi, Middle East analyst at the business risk consultancy Eurasia Group.

Attempts in the past haven't always worked; at times tribal leadership accepted payment but did not provide services. Some refuse to cooperate with what they consider occupation forces. Those who do become special targets themselves.

But the Sunni leadership still feels marginalized in the Shiite- and Kurdish-led government and by extension the United States, and continued disenfranchisement may harm collaboration.

"I don't expect a sudden collapse of the U.S.-Sunni collaboration against al-Qaida in the short term, especially since Arab Sunni are genuinely determined to eradicate al-Qaida. Moreover, this is a unique chance for them to acquire weapons and funds," Younsi said. "If the security collaboration were to end, this would have a significant impact on oil exports through the northern pipeline, which is facing other problems pertaining to power generation and outdated infrastructure."

Securing its oil pipeline, Iraq can increase production and exports - UPI.com