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

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Congress pressing Bush to block, reverse Iraqi oil deals

U.S. congressional leaders are pressing the Bush administration to block deals to be signed between the Iraqi federal government and the world's largest oil companies and to cancel deals between the Iraqi Kurdish region and smaller U.S. oil firms.

Sens. Charles Schumer, D-N.Y., John Kerry, D-Mass., and Claire McCaskill, D-Mo., want the United States to dam negotiations on contracts the senators claim will, in part, further sectarian fighting.

United Press International has also obtained a letter from Senate Committee on Armed Services Chairman Carl Levin, D-Mich., to President Bush's national security adviser Stephen Hadley, asking the administration to press Hunt Oil and other U.S. companies to cancel their oil deals with the Kurdistan Regional Government of Iraq.

The Iraqi Oil Ministry is negotiating two-year, technical support contracts -- also being called technical service contracts -- with Shell, BP, ExxonMobil, Chevron, Total, BHP Billiton and a consortium led by Anadarko. The deals, the scope and price of which have not been made public, are presumed to be worth $500 million each and provide technology, training and equipment to six key oil fields in Iraq, according to past ministry statements.

Each field would increase production by 100,000 barrels per day. The companies would likely not send any workers to Iraq. Shell, BP, Exxon and Total were part of the Iraq Petroleum Co., which controlled Iraq's oil sector for decades before being kicked out in the 1960s and 1970s.

International oil companies have been providing free training to Iraq's oil workers, and Iraq has signed contracts with companies to provide engineering, procurement and other oil field services. This and an increase in security for the northern pipeline have allowed Iraqi oil production to grow to 2.5 million barrels per day, according to the Oil Ministry's May averages. Exports crossed the 2.1 million bpd mark, a record since the 2003 invasion.

Iraq has the world's third largest oil reserves, capable of handling higher volumes than current output. But the sector needs to recover from decades of war, Saddam Hussein's mismanagement and sanctions. The ministry has decided to first move on these six contracts, and is readying for a bidding round for an undisclosed number of oil and gas fields later this year.

In a separate letter to Secretary of State Condoleezza Rice, Schumer and Kerry called for Iraq to pass legislation governing the oil sector first.

"We ask that you work with the (government of Iraq) to ensure that they do not sign any agreements relating to oil or gas until they have passed a fair, equitable and transparent hydrocarbon revenue sharing agreement that benefits the Sunni Arabs, Shia Arabs, Kurds and all other Iraqi citizens," the senators wrote.

Without a new law, Iraq is relying on regulations left over from Saddam. A draft oil law has been stalled in Parliament by internal Iraqi disputes over the extent foreign oil companies should be allowed into the national oil sector and how much control over the oil strategy will be given to local governments. Three companion laws -- revenue sharing, reconstituting the national oil company and reorganizing the Oil Ministry -- are further behind in the legislative process.

Iraq is already splitting revenue by compromise between factions. Schumer, Kerry and McCaskill in a short press conference Tuesday said without a revenue sharing law the oil deals will cause more fractures.

"You can't blame Iraq for the desire to expand oil production," Schumer said. "However, signing oil contracts without a revenue sharing law is a recipe for disaster."

The three warned against possible perceptions that the war was fought to benefit international oil companies, and that no-bid contracts were not transparent.

"We can confirm that negotiations between Shell and representatives of the Ministry of Oil regarding technical service agreements are ongoing. However, we regard further details as confidential," said Shell spokesman Adam Newton, adding the company has no comment on the senators' demands.

"If the Iraqi government decides it wants international oil companies to partner with them in developing their resources, ExxonMobil would be interested in participating," said Exxon Manager of Upstream Media Relations L.A. D'Eramo. "Consistent with our long-standing global business strategy, ExxonMobil would pursue business opportunities as they arise in Iraq, just as we would in other countries in which we are permitted to operate. With that noted, at this time it would be premature to discuss specifics about any potential opportunity with Iraq."

"We have a memorandum of understanding with the Iraqi government whereby we have provided free technical advice," said Anadarko Manager of External Communications John Christiansen. "However, we do not intend to pursue additional interests at this time."

The other companies couldn't be reached or couldn't provide comments before the article was published.

"We welcome Iraq's decision to negotiate with companies on these contracts, as we believe that commercial partnerships with private companies will accelerate Iraq's ability to develop its oil and gas resources," said State Department Iraq Press Officer John Fleming, though the State Department has not seen the senators' letter and wouldn't comment on it directly.

"The Ministry of Oil has been developing relations with about 40 international oil companies since 2004," he said, adding the U.S. government "is not playing any role in the Ministry of Oil's commercial negotiations."

The senators said the administration should use the contracts as leverage to press Iraq to pass the oil and revenue sharing laws. When asked whether this contradicts the sovereignty of Iraq, they said U.S. efforts in Iraq -- and troops on the ground -- make the oil deals an American concern.

"If it's in Iraq, it's not a private sector matter," McCaskill said.

This is the first public outcry by Congress over oil deals in Iraq. The six contracts were first made public late last year, and Iraq's Kurdistan Regional Government has signed 20 exploration and production deals since 2004.

Schumer, Kerry and McCaskill fielded three questions before ending the press conference.

Kerry, responding to reporters' shouted questions, said, "The Kurds are separate and independent."

Dallas-based Hunt Oil is the most prominent of the half-dozen U.S. firms that signed deals with the KRG. The deals are controversial because the regional government claims a constitutional right, which is disputed by Baghdad.

Levin, in his June 5 letter to Hadley, said the KRG deals are hurting reconciliation efforts within Iraq, including on the oil law.
"I believe the administration should request Hunt Oil, and other U.S.-based oil companies, to withdraw from any (production sharing contract) they have signed and to advise the KRG that they are doing so in order to facilitate the passage of national hydrocarbon legislation," he wrote.

"We've received the letter and are reviewing it," said National Security Council spokesman Gordon Johndroe. "We'll get back to the senator in the coming days."

Hunt Senior Vice President for Corporate Affairs & International Relations Jeanne Phillips, when asked about the letter, said, "We would never presume to comment on correspondence between a member of the United States Senate and other government agencies."

Levin also questioned whether the State Department warned Hunt Oil against signing the deal, saying he received differing versions of communication from the company and the State Department.

"The clear inconsistency between the State Department and Hunt Oil in their accounting of the meetings leading up to the company's signing of a (production sharing contract) with the KRG is deeply troubling," Levin wrote.

"We continue to advise companies that they incur significant political and legal risk by signing contracts with any party before a national law is passed by the Iraqi Parliament," said Fleming of the State Department. "It is in the interest of all Iraqi parties to enact a set of national laws to govern the oil and gas industry, and to develop an equitable revenue sharing system.

"All companies which have spoken with the United States government about investing in Iraq's oil sector have and will continue to be given the same advice," he said.

Congress pressing Bush to block, reverse Iraqi oil deals - UPI.com

Iraq decides to establish its fourth state-owned oil company to exploit Amarah fields

Iraq's Cabinet has decided to establish a new oil state-owned company to manage and develop massive oil and gas resources in the southern oil-rich province of Maysan, the oil minister said Tuesday.

The announcement was made as government forces are cracking down on Shiite militias in the Maysan capital of Amarah, promising to boost the quality of life there now that the gunmen no longer rule the streets.

Oil Minister Hussain al-Shahristani said the Maysan Oil and Gas Commission would be split off from the Basra-based Southern Oil Company and reorganized as an independent company.

«This new company will manage and develop all the oil and gas resources in the province,» al-Shahristani told reporters.

The plan must be approved by the 275-member parliament and then ratified by the country's presidential council.

Maysan is located about 320 kilometers (200 miles) southeast of Baghdad and includes some of Iraq's most important fields.

Iraq's Oil Ministry estimates that Maysan's fields have reserves of nearly 30 billion barrels. Currently those fields produce between 100,000 and 125,000 barrels a day but could be expanded to more than 500,000 bpd, the ministry says.

Last May, Iraq accused Iran of stealing oil from Abu Gharb, which Iraqi claims in its entirely, and al-Fakkah, which is shared by the two neighboring countries.

A technical committee has been established between the two countries to resolve a border dispute but no meeting has been held.

Iraq decides to establish its fourth state-owned oil company to exploit Amarah fields

Oil Ministry begin investing crutches gas field

The Iraqi Oil Ministry to start investing "field crutches" of the gas in Anbar province in western Iraq in preparation for the production and export to Syria in order to restore the form of gas means.

This announcement media source in the ministry site, saying: We have been a number of wells drilled in this field, where it is hoped that invests quantities of gas produced at the outset through the export to Syria to be returned again to Iraq in the form of (liquid gas), after having been exported Large quantities of them to Europe has been lifted production volumes in the field, which contains very large quantities of gas, pointing at the same time that a large number of international companies had made offers significant investment in this field, which would also need the local markets of this article necessary.

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

Declaration of the names of oil fields that would be delivered to foreign competition

said Oil Minister Hussein Shahrastani yesterday, Tuesday, the ministry will announce next Monday the names and numbers of Iraqi fields producing oil, which would be competitive before the foreign companies for development.

The Shahrastani, in statements made to journalists at the premises of prime minister, today (Tuesday), that "the Council of Ministers approved the establishment of an Iraqi oil company in the southern province of Maysan, would be tasked to develop the fields and production in the province."

He added that the Ministry of Oil "Negotiations are underway with a number of companies, will announce on (30) of this month, approved (Monday) coming from the first round of licenses to develop Iraqi oil fields."

The oil minister that the declaration would include "the number of fields, which will be contested, and it would Declaration and the competition among companies in a clear and transparent manner, and within clear mechanisms will be announced in due course."

It was the Iraqi Oil Ministry stated earlier, it would publicize the number and names of oil fields that foreign firms would table in front of the world, in order to make way for those companies to submit their offers for the development of these fields and oil production in future. A process through which Iraq aims to use the expertise of international oil companies to increase production of oil.

The Iraq currently produces more than two million barrels of oil per day, the highest level since the production of up to US-led war on the country in the year (2003).

The announcement process of licensing and identification numbers and names of oil fields, step towards opening the way for major foreign companies to invest in Iraq's oil future, from prospecting and extraction of crude oil contracts, a step which the Iraqi government wants the expertise of these companies, without Given the right to participate in oil production.

Shahrastani said that the Iraqi Oil Ministry "has not signed any contract yet with any company."

He stressed that the contracts will be signing the ministry "must be presented to the cabinet, for approval."

The Minister pointed out that the oil ministry "would take into account, during the signing of the contracts, the achievement of other considerations. Including infrastructure development, employment and training of Iraqi .. These conditions have made for each company made presentations to Iraq."

Shahrastani said, during the conference Alasahvi, that the cabinet "approved the establishment of a new Iraqi oil in the governorate of Missan, under the name (Maysan oil company), will be the task of oil production, in addition to the development of oil fields in the province."

The minister added "at the initiative of the Ministry of Oil, was introduced the topic of establishing a national oil company on behalf of a new Iraqi (oil company Maysan), the Cabinet approved the proposal of the ministry."

He continued by saying, "We hope that this company is the prime mover for the reconstruction of maintaining (Maysan), and building the economy of oil advanced to them."

The southern province of Maysan one of the richest provinces in Iraqi oil stocks, where floating oil stocks to maintain the enormous, but it lacks the sophisticated facilities of oil will produce and develop oil fields there.

The field (Albozorkan) of the most important oil fields in the province, and produces more than 100 thousand barrels of crude oil daily.

The city of Amarah, Maysan Province Center, at a distance (390 km) south of the capital, Baghdad.

Shahrastani said that the Iraqi government "will follow a new policy in the founding of oil companies in each province, when the development of the fields available in those provinces, and we produced oil to (100) thousand barrels per day." He added: "This Mahsal in the governorate of Missan.

The Iraqi Minister of Oil, saying: "That will be the company (Maysan oil) is a sophisticated oil, which will contract to develop the field (oil) the future of this province, will be isolated from the South Oil Company (in Basra), which was responsible for a wide sector in the southern region. "

The statement issued quoted government spokesman as saying Iraqi Skinner, Tuesday, that "the Council of Ministers approved the conversion of the Maysan oil fields to a public company, linked to a lifting of the South Oil Company, with a view to taking appropriate action.

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

Full text: Statements of Presidents Talabani and Bush in Oval Office

PRESIDENT BUSH: It's been my honor to welcome a friend, President Talabani, back to the Oval Office. He is the President of a free Iraq. He is a man who's been on the front lines of helping to unify Iraq and to help Iraq recover from a brutal regime -- that of Saddam Hussein.

I complimented the President on the progress that the government has made. I complimented the President on the fact that as security has improved; he and his fellow officials are reaching out to all aspects of society to help people realize the blessings of a free life.

There's still a lot of work to be done, we recognize that. We talked of a variety of subjects. We talked about a strategic framework agreement that suits the Iraq government. We talked about elections and different laws that have been passed. I did compliment the President on working hard to see to it that the legislative session this year has been very successful. We talked about the fact that the economy is improving, and that the attitude of the people there has improved immeasurably over the years.

And so I welcome you here. I'm proud of what you've done, and I thank you for the tough decisions, so that the people of a free Iraq can realize hopes and dreams. Welcome.

PRESIDENT TALABANI: Well, I am proud to have the honor of meeting President George Bush, whom we consider the liberator of Iraq from the worst kind of dictatorship, as a great friend of the Iraqi people. I'm grateful for what he said about me, but I agree with him that we are going to work together for having this agreement -- security agreement between the United States and Iraq, and also to continue our cooperation in our struggle against terrorism, for promotion of democracy in Iraq and Middle East.

We are proud to have such a good friend here in this great country, and I think we can -- I can say that we can pass this year two important laws, oil and election. And we are now going to reunite our government by bringing -- (inaudible) -- to the United Assembly representatives, to the Iraqi National Unity government headed by our Prime Minister, Nouri Maliki.

I also briefed our good friend about the achievements which Iraq had done in struggle against terrorism and, again, militias, who were making troubles for Iraq and threatening civil war. Now I can say that Iraq -- big part of Iraq is stable and is secure and liberated from the danger of terrorism and militia.

Yes, some places still there are some groups that remain here and there, but I think big achievement we have done this year with the support of the United States Army and government and with the friendly advices from President Bush. I can say that we are proud to achieved good successes in Iraq, and our economy is growing.

We have also -- big steps forward for national reconciliation. We improved our relation with our neighbors -- with Turkey, with Egypt, with Jordan, with Kuwait. We normalized our relation with Iran and with Syria, also. So Iraqi government is now going to play its role in the Arab world as one -- a founder of the Arab League. And there is no -- I think no more, any kind of isolation of our government.

We are doing our best for this agreement -- this agreement with the United States of America. I think we have -- we were able to go the steps towards reaching to finalize this agreement. And we continue our struggle to -- our efforts to reach -- Inshallah -- very soon this agreement.

And again to thank -- here I am again to thank here our great friends, President Bush and American people, for their sacrifice and their support for the Iraqi people. Thank you very much.

PRESIDENT BUSH: Thank you, Mr. President. Thank you.

From : White House Website

PUKmedia :: English - Full text: Statements of Presidents Talabani and Bush in Oval Office

Barzani and Croker Affirm Unity of Iraq

The KRG Prime Minister, Nechirvan Barzani, met today with the US ambassador to Iraq, Ryan Crocker, in Baghdad.

During the meeting, relations between Kurdistan Regional Government and federal government were focused on. Meanwhile, the security issue and political process in Iraq was another topic of the meeting. Both sides affirmed the unity of Iraq while they talked about the provincial elections and Iraq-US strategic treaty.

Separately, Prime Minister Barzani met today with the senior official of al-Daawa Party, Haider al-Akasi, in Baghdad. Both sides discussed the latest security and political developments in Iraq as they affirmed to strengthen their joint relations.

PUKmedia :: English - Barzani and Croker Affirm Unity of Iraq

Bush administration rejected the request of Senator democrats prevent the Iraqi government to conclude oil contracts

The newspaper "Star The Star" Malaysian Wednesday, the Bush administration, represented by the Ministry of Foreign Affairs, received a request submitted by a group of senior Democratic Senator to seek to stop the Iraqi government for granting short-term service contracts to large oil companies, claiming that such contracts may be Cause of fuelling sectarian tensions in the country.

The newspaper said in its issue published today (Wednesday), that "Senator: Charles Shumar - from New York, John Kerry - from Massachusetts, and Claire Makascal - from Missouri, said that these contracts should not be concluded until the Iraqi government complement the long-awaited law, The Special distribute oil revenues among Sunnis and Shiites and Kurds. "

She explained that Senator Shumar said during a press conference held yesterday (Tuesday), that "we can not be blamed on Iraq's desire to expand its production of oil, but the signing of oil contracts without reaching Adoption Law distributing oil revenue is likely to cause a catastrophe. It was Supposed that unites Iraq's future is the agreement on the distribution of oil revenue, this agreement has not happened until now. "

She (Starr) to the Iraqi Oil Ministry said Tuesday, it "has completed negotiations on the oil services contracts short-term. And the companies concerned the negotiations are: Royal Doetsch Shell (Royal Dutch Shell) partner (BHP Billiton) and (BP), and Exxon Mobil ( Exxon ******), and Chevron (Chevron) partners TotalFinaElf (Total). "

The newspaper added that Iraq "also entered into talks with the companies: consortium of Anadarko, and Vitol, and Dome" world oil.

It went on saying that "Senator Americans wrote a letter to my Foreign Minister, Condoleezza Rice, urging the Iraqi government request to suspend the signing of any oil contracts until agreement is reached on the national petroleum law," any bill (oil and gas), which had not approved Iraqi parliament so far, despite its approval by the government last year.

The project will be one law of the controversial Iraqi political arena, where the rejected several strong and influential opinion that opens the door for foreign companies to invest in the oil sector, allowing foreign participation in practical production and export.

The newspaper explained that the Malaysian Senator reminded Americans, in their letter to Rice, they fear that "the signing of such conventions by the Iraqi Oil Ministry, without reaching agreement on an appropriate sharing of oil revenues, will ignite civil war in Iraq."

Senator felt that such contracts "that would increase tensions in Iraq, at a time when American soldiers fighting day and night in order to reduce the levels of violence."

The newspaper said the U.S. State Department "confirmed yesterday (Tuesday), that is not the United States to intervene in this matter."

The news (Starr) on the U.S. State Department spokesman, Tom Casey, said "as long as the United States does not intervene in this matter, we know on what basis can the United States blocked the Iraqi government from contracting, if the opinion (the government) that this How very favourable to them. "

The Casey commenting on the letter Senator saying: "The decision on this matter from the Iraqis" alone.

It is noteworthy that the Iraqi Council of Ministers approved the draft (law of oil and gas) in February of last year (2007), but it failed to pass through Parliament, because of differences between political and parliamentary blocs around him, and also because of disagreements between the Kurdistan Regional Government and the Government of central Baghdad About who controls the oil deposits in the region and conclude contracts on the production and export.

In terms of oil contracts with Iraq's Kurdistan province, the newspaper (Calgary Herald) Canadian, yesterday evening (Tuesday), "The company (Talisman Energy Inc) Canadian Energy is planning to spend more than (300) million for two oil in Iraqi Kurdistan , Which represents the company's entering a new zone currently operates oil companies again, as I mentioned, the day before yesterday (Monday), an independent oil exploration company, which is No. (3) in this area, Canada, "according to the newspaper.

The newspaper quoted a spokesman for the company, did not mention his name, saying that "the Kurdistan region of Iraq contains the potential to be a key area of work for the company, which has investments around the world."

The spokesman explained that the company (Talisman Talisman) would get "per share (40%) than a decade involvement in the production area, originally signed with (the government) Kurdistan, with the company (Canada's WesternZagros Resources Ltd) with the proportion (40% Other), The company (KRG) with the remainder. "

اصوات العراق - صØ*ÙŠÙ�Ø©: إدارة بوش رÙ�ضت طلب سيناتورات ديمقراطيين منع الØ*كومة العراقية من إبرام عقود Ù†Ù�طية

Iraq announce within days the names of oil fields that would be delivered to foreign firms

Syrian Oil Minister Hussein Shahrastani, Tuesday, the ministry announced yesterday (Monday) the future of the names and numbers of Iraqi fields producing oil, which would be put up for competition from foreign companies for development.

The Shahrastani, in statements made to journalists at the premises of prime minister, today (Tuesday), that "the Council of Ministers approved the establishment of an Iraqi oil company in the southern province of Maysan, would be tasked to develop the fields and production in the province."

He added that the Ministry of Oil "Negotiations are underway with a number of companies, will announce on (30) of this month, approved (Monday) coming from the first round of licenses to develop Iraqi oil fields."

The oil minister that the declaration would include "the number of fields, which will be contested, and it would Declaration and the competition among companies in a clear and transparent manner, and within clear mechanisms will be announced in due course."

It was the Iraqi Oil Ministry stated earlier, it would publicize the number and names of oil fields that foreign firms would table in front of the world, in order to make way for those companies to submit their offers for the development of these fields and oil production in future. A process through which Iraq aims to use the expertise of international oil companies to increase production of oil.

The Iraq currently produces more than two million barrels of oil per day, the highest level since the production of up to US-led war on the country in the year (2003).

The announcement process of licensing and identification numbers and names of oil fields, step towards opening the way for major foreign companies to invest in Iraq's oil future, from prospecting and extraction of crude oil contracts, a step which the Iraqi government wants the expertise of these companies, without Given the right to participate in oil production.

Shahrastani said that the Iraqi Oil Ministry "has not signed any contract yet with any company."

He stressed that the contracts will be signing the ministry "must be presented to the cabinet, for approval."

The Minister pointed out that the oil ministry "would take into account, during the signing of the contracts, the achievement of other considerations. Including infrastructure development, employment and training of Iraqi .. These conditions have made for each company made presentations to Iraq."

Shahrastani said, during the conference Alasahvi, that the cabinet "approved the establishment of a new Iraqi oil in the governorate of Missan, under the name (Maysan oil company), will be the task of oil production, in addition to the development of oil fields in the province."

The minister added "at the initiative of the Ministry of Oil, was introduced the topic of establishing a national oil company on behalf of a new Iraqi (oil company Maysan), the Cabinet approved the proposal of the ministry."

He continued by saying, "We hope that this company is the prime mover for the reconstruction of maintaining (Maysan), and building the economy of oil advanced to them."

The southern province of Maysan one of the richest provinces in Iraqi oil stocks, where floating oil stocks to maintain the enormous, but it lacks the sophisticated facilities of oil will produce and develop oil fields there.

The field (Albozorkan) of the most important oil fields in the province, and produces more than 100 thousand barrels of crude oil daily.

The city of Amarah, Maysan Province Center, at a distance (390 km) south of the capital, Baghdad.

Shahrastani said that the Iraqi government "will follow a new policy in the founding of oil companies in each province, when the development of the fields available in those provinces, and we produced oil to (100) thousand barrels per day."

He added: "This Mahsal in the province of Maysan."

The Iraqi Minister of Oil, saying: "That will be the company (Maysan oil) is a sophisticated oil, which will contract to develop the field (oil) the future of this province, will be isolated from the South Oil Company (in Basra), which was responsible for a wide sector in the southern region. "

The statement issued quoted government spokesman as saying Iraqi Skinner, Tuesday, that "the Council of Ministers approved the conversion of the Maysan oil fields to a public company, linked to a lifting of the South Oil Company, with a view to taking appropriate action."

اصوات العراق - العراق يعلن خلال أيام أسماء الØ*قول النÙ�طية التي ستطرØ* على الشركات الأجنبية

Sharp drop in demand for dollar at daily auction

Demand for the dollar was sharply down in the Iraqi Central Bank's auction on Thursday, registering at $ 67.700 million compared to $113.970 million on Wednesday.

"The demand hit $19.040 million in cash and $48.660 million in money transfers outside the country, all covered by the bank at an exchange rate of 1,196 Iraqi dinars per dollar," according to the central bank's daily bulletin which was received by Aswat al-Iraq- Voices of Iraq- (VOI).

None of the 15 banks that participated in the auction offered to sell dollars.

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

Aswat Aliraq

Flurry of oil deals with foreign firms continues

Both the central government in Baghdad and the regional Kurdish government in Arbil are vying to lure oil majors to sign deals to develop Iraqi oil fields.

But the rush, analysts say, is full with risks in the absence of laws and regulations on the division of royalties and nature of the deals.

The Kurdish government announced Tuesday the signing of yet two other contracts, one with the Canadian Talisman Energy Corporation and the other with Western Zagros for the development of two oil fields in the disputed Province of Kirkuk.

The Oil Ministry has recently given 35 foreign oil firms the permission to boost currently producing fields and develop new ones.

With the two deals with Talisman and Western Zagros, the Kurds will now have 17 such deals with foreign firms.

But the Kurdish deals are in the eyes of the central government illegal as they are being signed prior to the passage of a controversial gas and oil draft law still being debated in the parliament.

The Kurds retort that the central government itself has signed such deals while the oil law remains on parliamentary shelves.

But the danger of the Kurdish deals emanates from the fact that some concessions to foreign firms fall in areas outside their traditional autonomous enclave of the provinces of Arbil, Dahouk and Sulaimaniya.

Some of the deals are in territory administratively part of the Province of Nineveh and others tackle oil fields situated in the disputed oil rich Province of Kirkuk.

The Kurdish deals have sparked the anger and indignation of other ethnic groups in the two provinces and analysts believe they could be the catalyst for a new round of violence in these two provinces.

Anti-U.S. and anti-government groups have vowed to attack foreign firms and Kurdish government officials working outside the enclave.

Moreover, the deals whether by the Kurds or the central government lack the necessary transparency. The applications are picked by officials regardless of whether there might have been better bidders.



http://www.azzaman.com/english/index.asp?fname=news\2008-06-25\kurd.htm