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

Wildcatters in controversial northern Iraq oil deals optimistic

It could be the new age for wildcatters, or just the new age of Iraqi oil development, but the monthly gathering of operators in Iraq's Kurdistan region is an optimistic party despite above-ground challenges that eclipse those subsoil.

None of the current Kurdistan region was developed under Saddam Hussein, but, like the rest of Iraq, below the hills and mountains of the north sit prime prospects.

Two of the dozens of projects -- the first new exploration and development in Iraq since 2003 -- are already selling oil domestically. It will be exported -- a million barrels per day by 2013, the regional oil minister says -- but await a resolution between Iraq's federal government and the Kurdistan Regional Government.

While the KRG and Baghdad negotiate, including over the draft oil law and the status of disputed territories, the Kurdistan Region Petroleum Operators Forum meet once a month in a business meeting turned social hour inside "The Sheraton," the former chain hotel now called the Erbil International.

Dozens of company officials sit around a horseshoe of tables and update each other on their projects' progress. They exchange tips on the evolving dos and don'ts of operating in northern Iraq and coordinate the joint purchase of services.

At a recent meeting the group was courted by companies pitching oil industry charter flights, Internet services and a range of products directly and indirectly related to the oil sector.

Each assembly is hosted by a company on a rotating basis, which provides the post-business gathering happy hour and buffet dinner.
"Working conditions are both better and more complicated than in other regions of the world," said Peter Seifert, general manager of PETEX, a subsidiary of Austria's OMV.

The companies say although there have been no oil sector attacks, they still must operate as in a war zone. And they're confident disputes between the governments will be overcome and their contracts accepted by Baghdad.

"The majority of the issues we are dealing with are above ground -- the resolution of the Federal Oil & Gas Law, transportation, logistics, to name a few," said Simon Hatfield, president of WesternZagros. "We are optimistic that the issues between the KRG and the central government will be resolved, as both parties are actively involved in seeking a resolution."

The two sides are currently meeting in Baghdad.

The KRG has signed more than 20 production sharing contracts with international oil firms since 2004 -- and counting:

The KRG announced Wednesday the Korea National Oil Corp. was awarded the controlling stake in two new PSCs and a share of two existing PSCs. The company also headed a consortium awarded a PSC last November. On Monday the KRG announced Canada's Talisman was brought into an existing PSC and given a contract to conduct seismic testing with a PSC option.

"We're always talking to people," said KRG Minister of Natural Resources Ashti Hawrami. "That process is always going on. Never stops."

Austria's OMV and a partner in the November KNOC consortium, however, were shown the consequence of crossing Baghdad. Minister of Oil Hussain al-Shahristani has cut oil sales to them, and said any company that signs with the Kurds will lose a chance at the rest of Iraq. None of the KRG-signed companies made it on the list of 35 companies prequalified to bid for oil deals to be offered for tender by the ministry later this year.

Shahristani also said only the deals signed by the KRG before a February 2007 version of the oil law was tentatively agreed to would be considered valid by Baghdad, and only after being reviewed and amended. Norwegian firm DNO and TTOPCO, the joint venture between Turkey's Genel Enerji and Canada's Addax, are among the few that are safe. Both are selling oil to domestic refiners. DNO production reached more than 11,600 barrels per day last month, according to its May report, and the company is ready to crank it up for exports.

But if any of the post-February 2007 projects begin to flow, the federal government will act, Shahristani warned.

"That oil will be confiscated; they have no right to work in that part of the country," he said. "We'll use a number of measures to stop any violation of Iraq law. Those contracts have no standing with us, we don't recognize them and they have no right to do that."

He's leading the federal government push to ensure the Iraqi oil strategy is governed from the center, citing the 2005 Constitution.
Hawrami, also, claims the Constitution backs his oil deals and insists if the money is being sent to and redistributed from the central government, it shouldn't matter whether local governments sign oil deals.

While the oil law is intended to delineate the oil rights of the various governments -- as well as the new role of international oil companies in the previously nationalized oil sector -- the issue of disputed territories is at play as well.

The most famous of the territories, which were gerrymandered and ethnically cleansed by Saddam Hussein, is Kirkuk, the oil-rich area which is officially outside the KRG but claimed by the Kurds as rightfully theirs.

Just south of DNO's northernmost project is land awarded for exploration and development to Dallas-based Hunt Oil. The most prolific of the handful of U.S. firms that signed with the KRG, the deal was controversial in Washington. The owner, Ray Hunt, is a political appointee of and top fundraiser for President Bush. The State Department is being accused of not doing enough to prevent the deal.

And numerous members of Congress have started investigating it, including Sen. Carl Levin, D-Mich., who sent a letter this month to national security adviser Stephen Hadley asking the administration to pressure Hunt and other U.S. firms to back out of their deal.
Here in Erbil, however, the KRG is being accused of signing contracts for land in the disputed territories, with Hunt being the most prominent.

"They have no right to be there," said Shahristani.
Hawrami says all deals are within areas that are under KRG administrative control.

"We believe that our agreement with the KRG is entirely legal within the framework of both the KRG and the Iraqi constitution," said Hunt Senior Vice President for Corporate Affairs and International Relations Jeanne Phillips.

Despite the dispute, the operators forum is an upbeat function. DNO will soon announce another discovery. WesternZagros, a former subsidiary spun off from Marathon, which afterward made it to the Baghdad bidding list, spudded its first well last month.

"A couple other companies are just about to complete their negotiations on their rigs to start the drilling," Hawrami said, with the rest producing or exploring and testing.

"Maybe they are not all entirely progressing to the same speed, but they are really just getting on with it, fast track," he said. "Everybody's busy getting seismic crews organized and sourcing rigs to drill the first exploration wells. There's a lot going on."

Wildcatters in controversial northern Iraq oil deals optimistic - UPI.com

Trade evaluated tomorrow, Thursday, a symposium to discuss the future of food security for Iraq

The Ministry of Commerce, Wednesday, they will tomorrow, Thursday, a symposium to discuss the expanded food crisis and the future of food security for Iraq and the presence of parliamentarians professors and experts from the ministries concerned.

The statement said the ministry received the Independent News Agency (Voices of Iraq) a copy of which was that "the development of the private sector in the Ministry of Commerce will hold a symposium and an expanded presence of parliamentarians, professors and experts from the ministries concerned and discussed a number of research in different jurisdictions."

The statement quoted the director general development of the private sector in the Ministry of Commerce, Dr. Jawad Kadhim inside saying, "The symposium has prepared his department since the aim to show the role of state institutions in the face of drought and the crisis of rising world prices of foodstuff, which warns of global disaster if there is no goodwill to deal with them Locally and globally. "

He added that the symposium "a definite chance to see action taken by the ministries of the State concerned particularly relevant ministries of industry and agriculture and their role in securing the citizen need of food," pointing out that this "forum a good opportunity to exchange views and information about what can be done to avoid the occurrence of Iraq under the threat of global crisis" .

He pointed out that the Ministry of Trade "has received government support to ensure broad input food ration and coordination with international companies and countries in order to cope with rising prices, drought and providing stock Astrteji."

He stated that the invitation sent to experts and specialists and agents ministries to attend the symposium and participate in a debate which is flying to the supreme purpose of implementing the recommendations that emerge out.

Sotaliraq.com - ÕæÊ ÇáÚÑÇÞ

Duhok Governor Calls American Companies to Invest in Kurdistan

Mr. Tamar Ramadhan, the governor of Duhok Province and his accompanied delegation arrived in American Pennsylvania State and was received by the state’s governor and a number of officials. This visit came in response to an official invitation from the State’s governor.

Duhok governor made a speech in front of Pennsylvania’s State Parliament and talked about the stable situation in Kurdistan Region and the developments in all the fields. The governor said that the American companies can come and work in Kurdistan Region, especially after issuing the law of investment by Kurdistan Region Parliament.

Later, Duhok governor met Pennsylvania State governor and his deputy, where they discussed the stable situation in Kurdistan and the available abilities for American businessmen to invest and work in Kurdistan, especially in Duhok Province. Pennsylvania State governor expressed his happiness for their visit and emphasized that he will do his best to open the way for American companies and businessmen to travel to Kurdistan.

The Kurdish delegation also met with the supreme organizations of Commerce, Industry and Agriculture chambers in Pennsylvania State.

PUKmedia :: English - Duhok Governor Calls American Companies to Invest in Kurdistan

South Korea to drill oil in northern Iraq

South Korea will explore eight oil fields in Kurdistan and drill to meet its domestic requirement in return for building infrastructure facilities in the northern Iraqi region, state-run Korea National Oil Corp (KNOC) has said.

The agreement signed with the Kurdish regional government June 21 would give Seoul 1.9 billion barrels of crude oil that will meet Korea's total crude oil demand for two years, WAM reported Thursday.

Kurdistan last February signed an oil-for-construction agreement with South Korea under which Seoul would gain the right of prospecting and drilling in return for building infrastructure facilities like road, water and power in the northern Iraqi region.

The $2.1 billion infrastructure construction project is led by Hyundai Engineering and Construction and Sangyong Engineering and Construction Co.

South Korea, which relies heavily on imports for its crude oil requirement, has been aggressively pushing for overseas energy projects and seeks to win energy projects by linking them with infrastructure construction.

http://story.irishsun.com/index.php/...d/375332/cs/1/

TNK-BP clash forced into open after Iraq row

A dispute over an oil project in Iraq was the “final straw” which triggered a public falling out over control of TNK-BP, the Russian 50-50 joint venture between BP and AAR, a consortium of four local billionaires.

The consortium has accused BP of secretly negotiating with the Kremlin for “as long as three years” to force them to sell out their TNK-BP stake to Gazprom or another state-controlled Russian company.

Speaking with The Times, Stan Polovets, chief ****utive at AAR, portrayed BP as a heavy-handed partner which used chief ****utive, Bob Dudley, and a slew of expatriate secondees to establish a “parallel management” within the joint venture to pursue its own agenda.

The allegations, firmly rejected by BP, represent the latest salvo in the escalating battle between BP and AAR.

Yesterday, four directors of TNK-BP Holdings, the group’s main operating unit, resigned ahead of an annual general meeting in Moscow.

Their departure, in protest at Mr Dudley’s leadership of the company, is expected to usher in a fresh round of legal action by rendering the meeting inquorate, thus invalidating its decisions.

Mr Polovets claimed that since the creation of TNK-BP in 2003, BP had torpedoed a series of overseas expansion plans in countries from Venezuela to Azerbaijan.

But a disagreement over a proposed development in Iraqi Kurdistan last Autumn was the trigger which forced the row into the open.
“It was an oustanding project,” said Mr Polovets.

“But it was obvious to us that BP was concerned about losing contracts with the Federal government of Iraq.”

Mr Polovets added that AAR had received information from “various officials” in the Russian government that indicated BP was attempting to engineer a sale of their stake to another party.

http://business.timesonline.co.uk/to...cle4219683.ece

Al-Maliki announced refusal to accept any loans conditional "affecting national sovereignty

The Prime Minister Nuri al-Maliki on Wednesday his government refused to accept conditional loans could affect the national sovereignty and allow for interfering in the internal affairs of Iraq, pointing out that he will accept only serve the interest of Iraq and its people, according to him. He pointed to al-Maliki he had chaired a meeting of the committee attended by the agricultural ministers of agriculture and water resources too.

Government's efforts to provide financial facilities to carry out agricultural projects and irrigation, and the necessity of developing the performance of the establishment of the Institute of Cadres agricultural specialist for the development of efficient and skilled workers in government departments.

The al-Maliki when he received Wednesday by Minister of Economy, Trade and Industry of Japan Akira Marie and his accompanying delegation Iraq has sought to develop its relations with Japan in all areas, and said that Baghdad looks forward to the role of big Japanese companies in the process of building and reconstruction.

The transfer from the Iraqi government statement as saying that the Japanese minister was satisfied with the improvement in the security drive Iraq as an incentive to expand the work of Japanese companies and strengthening relations between the two countries, stressing his country's willingness to increase cooperation with Iraq and meet the needs for building power plants, development of oil and gas fields and agricultural and industrial sectors.

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News from passing laws provincial assemblies, oil and political balancing Peshmarga Deal

Favored member of the Committee on Territories in the Iraqi parliament Hashim Al-Taee approval parliamentary blocs to pass the draft laws provincial assemblies, oil and gas balancing forces guard the territory of Kurdistan (PESHMARGA) of the controversial transaction for a single political and Ta'i said Thursday that "the differences posed by those laws personal appreciation goes, it is difficult to resolve and passed in Image of the current parliamentary vote upon, except in the case was an agreement between the political parties to pass these drafts in one basket and, as happened previously with the election laws, amnesty and 2008 general budget, these laws were viewpoints.

Political towards them varied greatly, but with a political settlement that satisfies all parties, which were interested to pass the draft laws on what it has been overcoming the obstacles to be voted on, which I think will happen again with the laws of the controversial and now before the Parliament " As he put it.

He Ta'i deputy to the Sunni Accord Front, "The problems concerning the law of provincial assemblies, including how to determine the share of women, and the position of the vote to immigrants inside and outside Iraq, and whether the military will be an exception to participate in voting or not? Would the election date is Or will abide by the postponement of all scheduled date? Will it be a single electoral district in each province or centre, there will be multiple circuits? If you can multi Electoral Commission to conduct a full and fully or not? ", Adding" All these problems have been resolved and removed from Before the Committee on Territories to Parliament for a vote, except the problem of Kirkuk, which has not been able to resolve the House of Representatives in its usual, was unable heads of parliamentary committees at their meeting twice with leaders of political blocs crystallization of agreement "and that his" committee Territories in the Iraqi parliament considered after this failure Approached the presidency of Parliament to move this problem to the political council of national security, which in turn will meet with the parties concerned with the question of Kirkuk, Arabs, Kurds and Turkmen, and will produce these meetings would be the solution to cure this problem "as he put it.

The law raises the provincial assemblies problematic how to engage in substantive areas, including the disputed province of Kirkuk in the local elections scheduled in the first of October next, Arabs and Turkmen in Kirkuk feel the need to include a special item in the law guarantees the special status of Kirkuk, the divided them into four stations by election 32% of the components of religious and nationalist President in Kirkuk with the retention rate of 4% for Caldoachorien, which strongly opposed the Kurds and assert that elections for the Kirkuk must be conducted on schedule according to the electoral law, like all governorates of Iraq irregular territory and should not be excluded, granting this special status

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Iraqi List to accelerate legislation of laws

Iraqi List seeks to form a coordination group inside the Parliament formed of political powers aimed to accelerate the legislation of laws in favor of national reconciliation. Iraqi List members noted that different political powers are negotiating to join the group that will help solve the crisis of laws ratification.

On the other hand, two years after the occurrence of tribal salvation councils, these groups are still just civil groups that have not upgraded to the rank of legal forces or joined security ministries. This fact points out to awakening councils belonging to different parties which might lead to insecurities at any time.

http://www.alsumaria.tv/en/Iraq-News...n-of-laws.html

Update.......

Al Shahristani: Iraq ready now to receive foreign companies to help developing oil sector

Iraqi Oil Minister Hussein Al Shahristani affirmed that Iraq is ready now to receive foreign companies mainly Japanese firms in order to contribute to developing the oil sector. Al Shahristani’s statements came in a joint news conference he held with Japanese Energy minister Akira Amari after meeting with Prime Minister Nuri Al Maliki.

http://www.alsumaria.tv/en/Economics...il-sector.html

Foreign Minister Meets U.S. Ambassador and members of the U.S. negotiating team

Met with Foreign Minister Hoshyar Zebari in his office today, Thursday, the American ambassador in Baghdad, Ryan Crocker and members of the team negotiating the Framework Convention on the U.S. strategy between Iraq and the United States, in the presence of the Under-Secretary for Political Planning and bilateral relations, however, dependent characters.

The values of both sides negotiating process between the government and the American side and stages of bilateral talks. It was stressed the importance of continued negotiations to reach an agreement kept the sovereignty and security of Iraq and achieve national reconciliation.

It also has been reviewing the core issues in the talks and the next steps to address them through dialogue and understanding and show the necessary flexibility. The Foreign Minister for American team results of his visit to the United Nations Security Council and his talks in Washington.

Translated version of http://www.nmc.gov.iq//mnews/2008/6/26_10.htm