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

Oil holds the key to Iraq's development

The manner with which Iraq's oil is handled and dealt with today would determine how it is to be used in the future. Any steps taken today would define by how far and to what extent the nation's natural resource is to be utilised for building the country.

The Iraqi government has recently announced that it has unrolled the process for opening up the country's oil industry to foreign investment with the goal of increasing the output to meet a rising international demand. The development of six major oil fields would enable Iraq to modernise these fields, which would increase the daily output from a total production of 2.5 million barrels per day to 2.9 million barrels per day by the end of next year. "It is not possible for Iraq, which has large oil reserves, to stay at the current level of production. Iraq should be the second or third source of oil exploitation," said Iraq's Oil Minister Hussain Al Shahristani.

But beyond these ambitious future plans, it is critical to outline the goals of why the oil fields are being developed and for what purpose. For one thing, the US-led invasion of Iraq has always been marred by speculations of America's secret quest to control a new source of oil supply rather than usher in democracy. Recent official statements also add to this suspicion.

The race for Iraqi oil should not be defined by narrow political agenda or greedy business plans. Instead, it should be dealt with as a national right of the Iraqi people to exploit and use it to their benefit - to build their country and allocate the generated wealth for future generations. The Iraqi government holds the key responsibility to ensure that this is achieved when any oil transaction or deal takes place.

Oil holds the key to Iraq's development | Iraq Updates

Oil firms facing tough ride on Iraq contracts

The Iraqi parliament’s oil and gas committee must have the right to scrutinise any long-term oil contracts signed with foreign firms or it will try to block the deals, the committee’s head said yesterday.

The comments by Ali Hussain Balou came a day after the Oil Ministry opened Iraq’s giant oilfields to bids for long-term contracts by foreigners for the first time in decades.

Balou also demanded an explanation from Oil Minister Hussain al-Shahristani on plans to offer a series of short-term technical support contracts worth $500mn each to a handful of Western oil majors without competitive bidding.

“The parliamentary oil and gas committee ... should have access to every detail on all the contracts, otherwise we will block them in parliament,” Balou, a Kurd, told Reuters.

The deputy head of the committee, Abdul-Hadi al-Hasani, a Shia, added that parliament should have the right to approve contracts that were either long-term or for major fields.

The comments suggest the government might face stiff opposition in parliament to allow international firms to help raise output at six of its key producing oilfields.

The move should mark the return of the oil majors, whose cash and expertise Iraq needs to restore its oil infrastructure that has been hard hit by sanctions and war.

Iraq’s proven reserves, at 115bn barrels, are the world’s largest after Saudi Arabia and Iran.

At a news conference on Monday to announce which fields were open for bids, Shahristani insisted the cabinet was not obliged to submit oil contracts to parliament for approval.

“There is no procedure in the country on any contracts that must go to parliament,” he said.

“But members of parliament will have full right to examine all the procedures and take part in negotiations if they wish.”

Despite Iraq’s need to raise output and rehabilitate its ageing oil infrastructure, suspicion remains over foreign involvement in the sector.

Critics of the US-led invasion in 2003 argue it was designed to give Western oil firms control over Iraqi oilfields. U.S. and British officials deny the charges.

“If we find these contracts are not serving Iraq’s interest, we will take a position against them,” Balou said.

French oil major Total is on the verge of signing a service contract in Iraq but does not expect to make major investments in the country this year, the firm’s president said yesterday.

Christophe de Margerie told a news conference at the World Petroleum Congress in Madrid that Total was negotiating a technical service contract together with Chevron to help develop the West Qurna oil fields in Iraq.

Gulf Times – Qatar’s top-selling English daily newspaper - Finance & Business

Sorry if already posted....

Maliki says priority for Arabs to invest in Iraq

Iraqi Prime Minister Nouri Al-Maliki Tuesday affirmed that priority was for Arabs to invest and establish partnerships in Iraq.

Al-Maliki, in a meeting with secretary general of Oman's ministry of national econom Mohammad Al-Khusaibi, said Iraq was witnessing huge development, and was heading towards reconstruction and the restoration of normal relations with the Arab countries, an official statment said.

Iraq's relations with Arab countries were damaged by reckless policies of former Baathist regime in Baghdad.

Al-Maliki called on the government of Oman to participate in the reconstruction and investment in Iraq.

Al-Khusaibi said his visit was paid upon instruction of Sultan Qaboos of Oman in order to further cement relations at all levels.

He said Iraq was in a better condition now, voicing relief for the positive and big progress achieved in Iraq since the March 2003 war of liberation.

Maliki says priority for Arabs to invest in Iraq | Iraq Updates

Blah, blah, blah - here we go again.......

Osman: oil contracts concluded in the Kurdistan region or the expected conclusion in Baghdad illegal

member of the Chamber of Deputies on the Kurdistan Alliance, Mahmoud Othman said that "both oil contracts which they intend Oil Ministry in Baghdad concluded or signed in Kurdistan province illegal" as he put it.

The Iraqi Oil Minister Hussein Shahrastani has said in an interview with "Uzmatik" that "six fields of oil and gas would have two fields of rehabilitation and development by international companies, among the first licences and contracts."

Othman explained in an interview with "Uzmatik" that "the urgency to sign oil contracts in Iraq was inappropriate," saying that "issuance of oil and gas law is the one who will organize the work of foreign companies in oil and gas sector and give legal ground for the continuing crisis in their work."

The Kurdistan Regional Government of Iraq had concluded last year fifteen oil contracts with foreign companies, which granted substantial concessions to companies contracting with tax exemptions, the federal government considered it a concession to those big companies, what the effects of political crisis between the territorial Government and the central government in Baghdad about the legitimacy of these Contracts.

Othman warned that "the non-arrival to the solution in the case of oil contracts or accelerate the enactment of the oil and gas is arrived at the point where everyone stands without taking any action," adding that "this is not in the interest of the country that is awaiting enactment of the law upon which most of the economic structure in Iraq" By saying.

Osman pointed out that "the Constitutional Court will be the last option and preferable if the inability of politicians solve the problem of oil contracts in the political body which was formed for this purpose, which includes senior political leaders in the country."

It is noteworthy that the Iraqi cabinet has unanimously endorsed the beginning of the month of February in 2007 to the Law on oil and gas, but the Kurdistan Alliance objected to the law after the state council amendments to some paragraphs, which I consider the Kurdistan Alliance unconstitutional.

Translated version of http://iraqalaan.com/bm/Politics/3386.shtml

Originally Posted by Seaview

Shahrastani: short-term contracts to benefit from higher oil prices

acknowledged Iraqi Oil Minister Hussein Shahrastani intention of the ministry's short-term contracts with a number of major oil companies giant pointing out that this step aims to take advantage of the rapid rise of oil prices in the global market.

Shahrastani added at a press conference in Baghdad that the purpose of concluding such contracts, which faced criticism Democrats in the U.S. Congress is to achieve a rapid increase in oil production.

Shahrastani said that the Oil Ministry felt that talking with international companies could benefit from advice and support transmission from abroad for wages paid by the ministry.

Shahrastani and pointed out that the reasons for his ministry to adopt this resolution is to take advantage of the current rise in oil prices to increase financial resources of Iraq especially since the licensing round will take about a year and a half until the middle of next year.

Shahrastani legislators attacked Democrats in the U.S. Congress who warned of the danger of concluding such contracts prior to the approval of the oil law, stressing the need for mechanisms to ensure transparency in identifying the names of these companies.

The oil minister said that these observations to keep on American oil contracts for themselves because Iraq did not need the USA nor any other, because Iraq know the higher interest than others.

Shahrastani and pointed out that they did not speak when he signed contracts participate in the production and said that he does not respect the views of opposition to these contracts.

Shahrastani and disclosure of the names of oil and gas fields which will be subject to the rehabilitation operations which North Rumaila and Zubayr, southern West Qurna field, the first phase and three fields in Maysan Albozorkan and Abu West and inside the field of Kirkuk and Bai Hassan field, crutches and Mansourieh.

Shahrastani said that the ministry would open the way for 35 oil companies to submit bids for licences education through service contracts which were selected from among 120 companies failed to qualify.

But Shahrastani is required to foreign companies winning any long-term oil contract to develop Iraqi fields to open offices in Baghdad, preferring to work with the combined companies, not individual.

Shahrastani explained that the signature on the first round of licensing with the first oil companies will be in the month of June next year in the event of acceptance of the offers made by oil companies.

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

Does the word "duh" come to mind to anyone here?
If the price of a barrel of crude doesn't light a fire, then no fire can be lit. Cripe.

Legislators speak of secret oil and gas agreement with Kurds

The central government and the Kurdish authorities have signed a secret deal under which the Kurds are to extend their political autonomy over their oil riches, a senior member of parliament said.

Jaber Khaleefa of the parliament’s Oil and Gas Committee said the secret deal has allowed both sides to proceed ahead with contracts with foreign firms despite the lack of constitutional backing.

The parliament has failed to pass a draft and oil and gas law drawn to regularize the exploitation of the country’s oil wealth and the distribution of sales proceeds.

The draft has failed to draw the minimum majority necessary to turn it into law. Opponents hoped that no concessions or deals with foreign firms would be made as long as it was not ratified.

But the sides have been signing deals despite the lack of necessary constitutional arrangements.

The Kurds have signed 17 such deals and the government has struck 35.

The parliament is asking for an oversight but the opponents lack the two-thirds majority needed to stop the deals.

As the flurry of oil development contracts goes, the sides have ratcheted up criticism of each other’s polices, apparently to detract criticism of their secret dealings, according to the legislators, who only spoke on condition of anonymity.

Kurdish authorities have *****ed central government’s deals as illegal while the central government says Kurdish deals are null and void.

Oil analysts say the oil contract rush and counter accusations signal lack of confidence, transparency and the existence of central authority in the country.

Oil development conditions are “very encouraging” in a country with reserves that are among the world’s largest, said one analyst.

The situation has encouraged other regions to mull signing their oil deals with foreign firms.

The analyst said foreign firms, with their own intelligence, were sending mixed signals to Iraq.

He said there were signs that some of the firms with deals with the central government in Baghdad had approached the provincial authorities in the southern city of Basra for separate contracts.

Iraq’s most prolific oil fields are situation in the province which is also home to some of the largest, yet undeveloped, fields in the world.

Azzaman in English

Baghdad's gas crisis to end in days - ministry

The gas crisis in the Iraqi capital will end in the coming few days after the completion of repair work on the main pipeline that feeds Baghdad's al-Doura refinery, an official spokesman for the Iraqi Ministry of Oil said on Monday.

"After repair work on the pipeline is completed, al-Doura refinery will resume operations," Issam Jihad told Aswat al-Iraq-Voices of Iraq- (VOI).

The refinery has stopped working due to sabotage attacks that prevented the flow of oil four days ago.

"Work is currently underway to fix the pipeline and will be completed in the coming few hours," the spokesman noted, explaining that the refinery supplies the capital with 2.5 million liters of gas a day.

Since early this week, residents of Baghdad have been suffering from gas shortage, which prompted prices to rise significantly and forced local residents, who cannot afford black market prices, to line up in front of gas stations to fill up with gas.

Baghdad's gas crisis to end in days- ministry

N.o.k.ia Siemens Confirms Sponsorship of Iraq Communications Summit

Preparations for the forthcoming Iraq Transportation & Communications Technology Summit have been further boosted following confirmation of attendance from N.o.k.ia Siemens, with the Finnish-German joint venture confirming its role as a key sponsor.

The summit will take place in Dubai on 9-10 October, organised in partnership with the Government of Iraq and welcoming a high level delegation of senior decision makers from Iraq’s Ministries of Transport, Communications and Science & Technology, including ministers, deputies and director generals.

Also in attendance will be the key state owned companies for these sectors, including the Iraq Communications & Media Commission and Iraq Telecommunications & Postal Company.

Iraq's communications infrastructure offers huge opportunities for global operators to work with the Government of Iraq, with a key area of focus being the expansion of Iraq's N.o.k.ia telecommunications networks, the development of fixed line networks and public information technology systems.

N.o.k.ia Siemens are a leader in this expansion, providing perhaps the best example of the many lucrative commercial opportunities available in Iraq's communications sector, having recently signed a $150 million contract with Zain to modernise its m.o.b.i.le network. N.o.k.ia Siemens also recently extended its cooperation with the operator Asiacell, inking a multi-million dollar frame contract for its 2G network expansion.

These areas will form a key component of the summit, which is based on a unique format whereby half of the summit time is devoted to speeches and presentations and the other half devoted to one-to-one meetings.

These private meetings will provide a prime opportunity for operators and service providers to meet with senior officials from the Government of Iraq to discuss the opportunities available within the sector.

***** Siemens Confirms Sponsorship of Iraq Communications Summit

Originally Posted by Seaview

$ 26 B Investment Budget for Current Year, Minister Says

Finance minister Baqir Al-Zubaidi, emphasized that the budget of 2008 would arrives with the complementary budget up to more than $ 70 B which would be the largest budget in the state history to reach about $ 70 B and the mentioned amount would needing to private Arabian and International effort sectors to share in building the new Iraq.

That came while Zubaidi met Omani an national economic minister Mohammad Bin Nasir al-Khasebi and the a compound delegation and attended by Dr. Ali Dabagh and finance deputy minister with number of general directors and represents of the Omani an private sector.

$ 26 B Investment Budget for Current Year, Minister Says | Iraq Updates

Update........

Skinner: Iraqi budget reached 70 billion dollars is the biggest in the history of Iraq

Skinner said the spokesman, the Iraqi government that the Ministry of Finance submitted to the Cabinet to draft a supplementary budget in 2008 amounted to 21 billion dollars, with a total budget of Iraq in 2008 to $ 70 billion dollars which is the largest and the largest budget in Iraq throughout history.

Skinner said that the amount distributed to 7.4 billion dollars a parallel investment and 13.6 billion dollars parallel operational include Iraqi state ministries and governorates.

Skinner added that the draft of the supplementary budget will be subject to extensive discussions in the next two days at the Economic Commission of the Council of Ministers, to make some adjustments and Redeployment the Committee deems appropriate in cooperation with relevant ministries to be debated and approved at a cabinet meeting held in the next few days, after which will transform To the parliament for discussion and ratification.

Skinner pointed out that the Iraqi budget in 2008 is an important breakthrough in the history of the budgets of the Iraqi state, he said it was the result of the rise of Iraq's resources from oil exports and that will effect positive changes in concrete economic movement and services in the country, as saying.

Translated version of http://www.radiosawa.com/arabic_news.aspx?id=2014876

Al-Maliki will visit a number of Arab Gulf states, Germany and Italy during this month

An Iraqi Foreign Minister Hoshyar Zebari today announced that Prime Minister Nouri al-Maliki will this month visited a number of Arab Gulf states, Germany and Italy. Zebari did not disclose on Gulf states to be covered by the tour, however, sources close to al-Maliki was revealed that among these states of the United Arab Emirates, at the official invitation received by al-Maliki. The government statement said following the meeting Zebari Italian ambassador in Iraq, they discussed arrangements for the visit of Maliki to come to Italy and developments in the situation in Iraq and the ongoing negotiations between Iraq and the United States. The statement Zebari according to diplomatic openness on Iraq (Arab, regional and international) through visits by foreign delegations, as well as the expected visits to Arab and foreign leaders as well as the expected round of the owners of a number of Gulf states, Germany and Italy during this month. Zebari had been discussed last Sunday with the Charge of the Embassy of the Republic of Germany in Baghdad Schumacher Hands-Maliki expected the visit to Germany.

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