Thread: Archive Latest News - Dinar Think Tank - 27/08/08 - 15/01/09

Baghdad prevents KRG Oil Exports

Balo: Maliki and Shahristani are main hinders to the national Oil and Gas Law approval

Kurdish MP Ali Hussein Balo defends Kurds, who some accuse of hindering passage of the law.

Abdul-Hadi al-Hassani, the Deputy Chief of the Oil and Gas Committee in the Iraqi Council of Representatives announced that his country's government is cooperating with neighboring countries to prevent the Kurdistan Regional Government (KRG) from exporting its oil and gas to outside Iraq.

This claim comes at a time when tensions between Erbil and Baghdad, and particularly Iraqi Oil Minister Hussein al-Shahristani, still exist over KRG oil deals and activities. Negotiations for a solution are ongoing.

Al-Hassani, MP on the United Shiite Alliance List and Deputy Chief of the Oil and Gas Committee, also says that the KRG Oil and Gas Law passed by the regional Parliament in August 2006 includes many articles that are different and even opposite to the draft National Oil and Gas Law, which has already been approved by the Council of Ministers and awaits Parliament approval.

There have been lots of arguments and disagreements between the KRG and the central government about the national law. Kurdish representatives in Baghdad took part in drafting the law, pushed other political groups to accept it, and were very optimistic about the decision of the Ministerial Council to approve the draft law.

However, as Kurds claim, some parties changed some parts of the law on its way to Parliament, thereby reducing the powers of the regions over oil and gas revenues and adding to the central government's powers. This irritated the Kurds, who decided not to vote for this law in Parliament.

Due to these tensions between Baghdad and Erbil, the KRG passed its own Oil and Gas Law and signed a number of production-sharing contracts (PSCs) with some international oil companies to invest in the region's oil and gas resources.

This angered al-Shahristani, who described the PSCs as illegal. He went further and vowed not to cooperate with those foreign companies who signed contracts with the KRG.

As a measure to threaten those companies, al-Shahristani decided to stop working with an Austrian company and to stop selling it oil.

Among those oil and gas investment contracts is the contract between the KRG and Dana Gas and Crescent Oil for the implementation of the Gas City project. Like all other KRG contracts, this contract has been signed without the coordination of the Iraqi Oil Ministry and under the supervision of Somo Company, a public-sector company affiliated with the Oil Ministry, which is managing Iraq's oil sales.

In the case of Crescent Oil, the Iraqi Oil Ministry has also decided not to sign any contracts with the company since it is working on the Gas City in Kurdistan.

Al-Hassani said that this contract has to be signed under the supervision of the Iraqi government. He added that he doesn't expect the KRG to export oil and gas without the central government's consent.

According to what al-Hassani says, the Oil Ministry is currently trying to abolish all the contracts that have been signed before the approval of the national law, which is expected to be approved by the Iraqi Parliament in the near future.

Ali Hussein Balo, a Kurdish MP and a chairman on Iraqi Parliament's Oil and Gas Committee, said on September 11 that though some Iraqi officials claim the Kurds are hindering the approval of the Oil and Gas Law, the opposite is true. He also said that al-Hassani's speeches about the issue are far from reality.

"The Iraqi government and Prime Minister Nuri al-Maliki himself and Hussein al-Shahristani hamper the approval of the law," Balo told a local Kurdish news agency. "This is because since February last year all the political parties have agreed on a draft of the law, but later changes were made in the draft."

Balo also added that until now, the Oil Ministry hasn't been able to submit the changed draft to the Parliament's Oil and Gas Committee so as to be put into Parliament's schedule for discussion and approval.

http://www.zawya.com/Story.cfm/sidZA...0oil%20exports

Kurds demand removal of Article 23 of Iraq-U.S. Pact

A questionable section of the U.S.-Iraqi security pact bodes historically ill for Kurds.

The Kurdistan Coalition has called for the removal of paragraph 2 of Article 23 of the Iraq-U.S. security pact, which states that Iraq can sign a similar pact with neighboring countries.

Sahdi Barznji, an Iraqi MP with the Kurdistan Coalition (KC), called for the removal of paragraph 2 of Article 23 of the security pact between Iraq and the U.S., saying it "does not serve the interests of the Iraqi people."

Barznji, saying Iraq and the U.S. have nearly reached an agreement, also criticized the Iraqi government for keeping the negotiations and the draft agreement confidential and not informing members of Iraqi Parliament about the details of talks between Iraq and the U.S.

MP Farzand Bawani of the KC explained that, according the paragraph in question, Iraq can sign a similar pact with neighboring countries, which could in turn enable those neighboring countries to harm Kurdistan Region.

MP Mahmud Othman of the KC agreed that any security or political agreement with neighboring countries does not suit the best interests of Kurdish people. He said that in the past, whenever neighboring countries signed agreements with Iraq, they always considered Kurds a threat. Additionally, Othman believes that it is currently impossible for Iraq and the U.S. to reach a consensus.

"There are some groups in Iraq that believe the disagreements between Iraq and the U.S. are too big to be solved right now," said Othman, claiming that both sides need more time and further talks.

Imad Ahmed, a member of the Patriotic Union of Kurdistan politburo, said the Kurds' role in security-pact negotiations is limited. "We are part of the negotiations and we are not outside the circle, but we are not playing a major role," he said.

Iraqi Foreign Minister Hoshyar Zebari said the security pact between Iraq and the U.S. will only be for two to three years. He added that, according to the agreement, the U.S. would respect Iraqi sovereignty and not build any permanent military bases in Iraq. After two to three years, the Iraqi government would decide whether or not to renew the agreement, with changes.

Both sides, Zebari added, are arguing about who should give the orders for any U.S. military operation inside Iraq. Also, whether American soldiers would be given immunity from Iraqi law, who will lead combat missions, and whether or not U.S. personnel may detain Iraqis are also matters of contention between the two parties.

The Iraqis insist American soldiers must be prosecuted in Iraq if they commit "grave intentional mistakes," something Washington does not agree with, said Zebari.

Meanwhile, Deputy Prime Minister Barham Saleh said Iraq is still waiting for a response from the U.S. on proposals regarding the controversial security deal between the two countries.

"Talks are in the final stage and the Iraqi side is waiting for the American side to provide answers on several points that the Iraqi government has raised," Saleh told reporters in the holy city of Najaf where he spoke after meeting revered Shiite cleric Grand Ayatollah Ali al-Sistani.

"This is a dangerous patriotic decision and we want the government to guarantee the sovereignty of Iraq," Saleh said.

http://www.zawya.com/Story.cfm/sidZA...U.S.%20pact%20

Iraq Oil Minister blames Kurds for delay in Oil Law

A series of contracts awarded by Kurdish leaders is blocking the passage of a national oil law, prompting Baghdad to use Saddam Hussein era rules for new deals, Oil Minister Hussein al-Shahristani said.

In an interview with AFP, Shahristani said a majority of parliament's 275 members were hesitating to pass the new oil law after the northern Kurdish administration signed contracts ahead of the national law.

"The KRG (Kurdistan Regional Government) has gone ahead and signed even production sharing agreements. This has created concern among parliamentary blocs," said the former nuclear physicist.

Shahristani said some MPs want the new law to be modified in order to "ban production sharing contracts."

"Others are questioning the usefulness of the new law. They say if the KRG is not abiding by the new law in spite of participating in negotiations during the framing of the bill, why have a new law?," the minister said.

"They say the KRG contracts are clear violations of the new law and the administration is not abiding by the law, then what is the point of passing the new bill. We might as well keep the old law."

The passing of the oil law is seen by Washington as a key benchmark in boosting national unity in the violence-wracked country.

The draft legislation has been intensely disputed by Iraq's bitterly divided communities over how revenues from oil sales would be distributed in the 18 provinces.

The dispute aggravated after the KRG signed a series of contracts with foreign oil companies to boost oil production in its northern territory.
The bulk of Iraq's oil reserves, the world's third largest, are in the Kurdish north and the Shiite south.

Shahristani, a strong opponent of the KRG contracts, said he does not see the law being passed in parliament in the near term.

"If the KRG does not cancel its contracts and make a clear commitment to abide by the new law, parliamentarians would not pass the law," he said, adding Baghdad was left with no option but to tap the existing law from Saddam's regime to boost its own oil production.
"The new law does not offer any more benefits to foreign companies than the prevailing law. After waiting for more than a year, the government decided to go ahead and use the prevailing law to boost production."

Baghdad has recently signed two contracts with foreign companies -- one with state-owned China National Petroleum and the other with Royal Dutch Shell.

China National would develop the Al-Ahdab oil field in central Iraq as part of a service agreement with Baghdad.

The company has managed to get a foothold in the Iraqi oil sector by reviving its 1997 contract signed with the former Iraqi regime.

However, activities were suspended due to UN sanctions and security issues following the US-led war of 2003 that toppled Saddam.

Shahristani said Baghdad has managed to change the previous joint venture contract into a mere service agreement.

In the second venture, Iraq's state-owned South Oil Company will hold a 51 percent stake with Shell holding 49 percent. The new company would capture gas from an oil field in the southern province of Basra.

These two deals do not violate the languishing oil law, said Shahristani, adding "we want to abide by the new law even if it is still to be approved."

Shahristani said the ministry has embarked on an aggressive plan for the next three to four years as it taps the prevailing oil law to ramp up production.

Iraq is estimated to have 115 billion barrels of oil.
It has 80 proven oil and gas fields, including 27 which are operational, the minister said.

"The plan is to offer all these to international bidding gradually."
He said Iraq also has 65 exploration blocks which it plans to offer for similar bidding.

"The decision is to develop oil production as fast as possible by cooperating with international companies," he added.

"The whole idea of bid rounds is to find what is the best offer you can get and what kind of capital investment is required. We are talking of tens of billions of dollars here."

Iraq also plans to step up its refining capacity by adding extra units to existing refineries as well as constructing "new state-of-the-art units."
Shahristani said new refineries are being planned in the provinces of Nasiriyah, Karbala, Kirkuk and Maysan.

http://www.zawya.com/Story.cfm/sidAN...in%20oil%20law

Iraqi banking delegation to visit Beirut next month

An Iraqi banking delegation will visit Beirut next month to be acquainted with the modern techniques and experiences which will help Iraqi banks facing the current obstacles, the ****utive manager of the Iraqi Banks League said on Friday.

“During the visit, scheduled on October 27, the Iraqi delegation will seek to hold contacts with the Lebanese banks association,” Abdul Aziz Hasoun told Aswat al-Iraq – Voices of Iraq (VOI).

“The Lebanese association is the first Arab banks association which was established in 1959 and the delegation will hold contacts with it to benefit from its great experience to boost the new Iraqi league’s experience,” he explained.

The Iraqi Banks League was established in 2005 and consists of 25 Iraqi banks and 3 foreign banks.

Aswat Aliraq

President Barzani: Carrying out constitution articles will guarantee Iraq’s unity

Kurdistan region President Massud Barzani received Shoji Okawa, the new Japanese ambassador in Iraq and Herotaka Estekawa, the representative of the Japanese ministry of foreign affairs.

President Barzani congratulated ambassador Okawa for his new post and expressed his willingness to offer all kinds of cooperation. They discussed in the meeting the political and security situation in Iraq and Kurdistan region.

The mechanism of developing the relations between Japan and Kurdistan region in addition to Article 140 and the elections law were also discussed in the meeting.

President Barzani emphasized that Kurdistan region is always committed to the constitution and considered that carrying out the articles of the constitution is the guarantee for the unity of Iraq.

For his side ambassador Okawa expressed his happiness to visit Kurdistan region and referred to the stability of the region.

PUKmedia :: English - President Barzani: Carrying out constitution articles will guarantee Iraq’s unity

Sirfen: raise the value of the dinar should be accompanied by a control market prices

Dollar exchange rate fluctuations during the year 2008 to decline against other currencies has made bankers expect continued decline is lost their trust in him and are very cautious in their dealings. And many observers questioned the economic situation on the relationship of the dollar fluctuations in global prices and their impact on the local market, why rising prices of goods and goods in the market despite the decline of dollar globally and locally and what the relationship between the two that we tried to know this poll. First speaker was Mr. (Alaa Abdel-Hassan), owner of the sail in the banking district of Karrada in: He said the dollar exchange rate has nothing to do with absolutely everything at the market price in the Valley if the dollar got a lift owners of food (dollar) goods

In the case of climbing the pretext of raising prices of goods rise of the dollar and keep the dollar is only up and down and the matter needed to support the market price because the state has a strong weight if imposed its hegemony and be bound by traders example, the price when the dollar exchange rate of 1,000 dinars Dolaraluahd for one can not deviate from it and also in the market prices and the dollar is not stable but in the case of landing on and is expected to reach 1,000 dinars at the end of the year, such as more than an official said that while the price of gold is linked to global prices have Fell to 130 thousand of weight and has nothing to do with the dollar ... and ... in the same region in Karrada, we asked Mr. Manaf Ibrahim, the good banking: who controls the market are traders and the dollar is controlled by supply and demand and pricing as from Central Bank of merchants selling goods and the price they want and do not control them, nor customs posts here and it needs to be centralized control by the State that can unite and form in which to determine the price of Aiwdi to the chaos in the market, traders Farbah imaginary Aidfon very understanding of any taxes and even If taxes are paid to increase prices through the roof, which affect the consumer is the loser, only when the state must impose taxes to support consumer greed merchants then the relationship between the dollar Monday and unstable and in constant decline as the purchase price has fallen significantly and ... We hope that the re-and well-being of the Iraqi dinar rise to what it was previously, God willing.

In Bab al-Muadham area / Hamid Rashid Al-Serafi asked Cdhan the banking fraternity in the view raised, he said:

This problem affecting Iraq, Hb and very large imbalance between the prices (of goods and services) and between what is designed to stabilize the dinar to the dollar during the control process and irregular because of lack of coordination between monetary policy and fiscal policy, and the central bank's decision represents a monetary policy To raise the value of the dinar against the dollar should be accompanied by government control over the price of goods in the market through a serious oversight on goods and goods entering Iraq, the issue of legal controls manipulators monitor prices through the issuance of any decision to increase Aldnyar and accompanied by an increase in prices And the next day, is very strange, but must be off the decline in prices and it's up to state control.

The banking and the (prospects) Mohammed Shaker Tamari, said:

Another problem is the interest rate imposed by the Central Bank of Iraq led to entrepreneurs with access to soft loans due to an increase in interest rates because the state withdraw cash from banks with high interest rates and therefore can not business owners to go to banks for a loan and it must allow To the owners of small businesses without raising interest Bugehm.

Ms. / Hatem virtue ... Ghadhban bank employee said:

The whole issue relating to supply and demand and expect the dollar was not possible to say and all intended to fall more in the interest of certain quarters and there are specialists in this regard in order to reach a new guarantee of profits.

As Dr. Khodeir Abbas bout / Ph.D in economics said:

If the constant demand for the dollar, it will lead to higher prices and therefore increasing the prices of goods associated with it and if there was a growing demand for commodities with high purchasing power no spike in commodity prices, despite the stability, or the depreciation of the dollar and gold for example, is linked to the offer and demand and prices World gold prices, which determine when the dollar is an internal matter of each country as demand and policy of those countries and the fact the dollar price relationship is a close relationship and that there were things that might strengthen the side or reduce this relationship and, to the extent of the power of the state and control On the market and also the impact of the laws in reducing prices and allowing more upward impact on the market and lead to (vacuum) or economic chaos and comes as a strong and stable countries. And the dollar can not be identified or reduced price and it is just a matter of supply and demand and as needed. ..

Translated version of http://www.almadapaper.com/paper.php?source=akbar&page=107

The decline in demand for the dollar in the meetings of the World Bank last week

Decline in the volume of aggregate demand to buy the dollar during the meetings of the Central Bank of Iraq last week, recording a slight 410 million and 930 thousand dollars against 421 million and 555 thousand dollars for the week before.

The rate of demand and a retreat from the public rates for the second consecutive week reached 82 million and 182 thousand dollars against 84 million and 311 thousand dollars, which is lower than the overall rate for the current year, who scored a whole and the limits of 120 million dollars, sources said the Central Bank of Iraq, with record third quarter This year the rate of $ 150 million in each meeting.

The past week has seen a marked variation in the sizes of applications to buy the dollar during the meetings of the various auction, which reported the opening session on Sunday last week, the minimum requested during the meeting, one worth 42 million and 306 thousand dollars, while peak demand at a meeting last Wednesday which saw total volume of demand Reached 115 million and 825 thousand dollars, recording the value of differing limits of 73 million dollars between a maximum and minimum compared to 110 million in the meetings last week.

The record of the exchange rate stable during the full five-week sessions, which concluded its meetings Thursday at the exchange rate at 1180 dinars to the dollar, the same rate in the opening week (last Sunday), while the last three weeks, recorded changes in the exchange rate limits of three points every week .

The cash purchase orders registered 14.4 percent of the total demand over the past week compared with 11.84 percent for the week before, and total value reached 59 million and 310 thousand dollars, the rate recorded in the volume of demand for cash during the course of one meeting last week, 11.8 million dollars in remittances recorded Or a retreat from the Foreign and Hjovernma and by 85.6 percent of the orders, while 89.16 percent of total demand last week.

The record volume in the form of remittances per 351 million and 630 thousand dollars, a rate of 70 million and 310 thousand dollars at one meeting last week.

Translated version of http://www.almadapaper.com/paper.php?source=akbar&page=107

Unemployment problem solved

Unemployment still affect the work and performance of the Iraqi economy, the real continued to train since he started his eighties of the last century, and different studies and research of the Iraqi state institutions and civil society organizations in determining the unemployment rate Some gold in the difficult periods over which Iraq since the 2005 - 2007 to identify Unemployment 60%, while I went and strategic reports on the status of employment and training in the Ministry of Labor to identify the 22% unemployment in Iraq. The relative stability of the security situation and improve government performance makes it imperative for the Iraqi decision-maker to consider this problem, which had exhausted human capital being lost in Europe and America, and the settlement policy and to give proof of identity, but the desire to take advantage of this human capacity.

However, the attitude in the press about the draft Iraqi Vice-President of the Republic of unemployment a mechanism and strategy for unemployment and found it positive points and advocacy to encourage SMEs to work in Iraq, but we need the strategy must chart by the Iraqi government and the ministries responsible for the file of the unemployed and lending projects, and be Dedicated to all those who wish to open a project category (15 - 45), and training on project management and professionalism the test must be Faisal for a loan or grant to support the project financially and, of course, take into account that the size of the loan according to the project and the importance of learning and academic study The economic viability of the project and its importance in the region or r o all across Iraq. That Iraq today needs such investment projects which seek to invest in human potential for the development of production and encourage owners of industrial, agricultural and service is needed because it will preserve national security and all its competence as both Agricultural, industrial, commercial or service or food .... Etc. of the strategic sectors contribute to the maintenance of Iraq's national security

The Manrid to say that unemployment is not intractable disease can not be eradicated or reduced and identifying real, and this is what we hope Hashemi of the draft of unemployment.

Iraq today and through the notation features in the event of future economic opportunities for the unemployed real work will need additional foreign workers to contribute to the management of urban renaissance and this is only the level of services.

Translated version of http://www.almadapaper.com/paper.php?source=akbar&page=107

Sistani's Representative calls the political blocs to expedite the approval of Election Law

The representative of Ayatollah Ali Sistani in Karbala, the political blocs to expedite the adoption of the law of provincial elections, criticized the government performance regarding the provision of essential services to citizens.

Ahmed said net during Friday prayers that "the electoral law for him to count as one steps political maturity of citizens", calling on "the political blocs to waive some of the approval of the electoral law as long as the political process built on the consensus that is acceptable to everyone."

On the Net services criticized the performance of the Ministry of Electricity, noting that "most of the projects involved are just promises."

The net "The world is well under way and is now a major scientific vying to exploit the energy space, while Iraq suffered five years of delay in resolving the problem of electricity."

http://translate.google.co.uk/transl...hl=en&ie=UTF-8

Oil Minister considers that the oil contracts hinder the issuance of Oil and Gas Law

The Iraqi Oil Minister Hussein Shahristani said the contracts concluded by Iraq's government impede the province reached the Iraqi parliament to pass a new oil and gas, forced the government to adopt the legislation prior to the conclusion of oil contracts.

Shahristani said in an interview with کالة AFP Thursday that "a majority of deputies (275 deputies) hesitant about the new oil law passed after the signing of the territory's government contracts even before a national law."

The minister said a former nuclear physicist, said "the government of the territory went ahead and signed contracts to in production. This laying اconcern among parliamentary."

He noted that "some deputies in parliament want to view the new law amendment in respect of contracts in production."

He said the deputies "Others wonder about the usefulness of the new law. They say that if the province's government does not comply with the new law despite in the negotiations over wording, Why is there a new law then?".

"We say that the contracts concluded by the government of the province انتهاک clear to the new law and abide by, then the feasibility of passing the law and work by the old law." Washington considers a key oil law for national reconciliation in Iraq.

In the view of al-Shahristani, a known opponent of the contracts concluded by the government of province, said the new oil law will pass soon.

The اکد minister said "if it fails to suspend the province's government contracts and demonstrate a clear commitment to the new law, the lawmakers will not Imrroa law."

"I no longer in front of Baghdad's government only option to benefit from the regime of Saddam (Hussein) to increase oil production."

He pointed out that "the new law does not provide any additional benefit foreign law in force. After waiting for the worst of the government decided to proceed with the old law to increase production." Baghdad has recently signed two contracts with one Chinese and the British Shell. Jerico will be the "CNN NBC " Chinese exploration in the Al-Ahdab oil field in Wasit province, and avoids the 180 southeast of Baghdad, and the contract is worth three billion dollars.

Shahristani and "These contracts do not oil law," he said, adding "We want to abide by the law, even if the new کان still needs to approve" it.

He said that "his ministry started implementing an ambitious plan over three to four years, even in the absence of the law was passed, to increase production" of oil. The Iraqi oil reserves are estimated at 115 billion barrels of oil. been 80 oil and gas fields, according to the minister. and that "Our decision is to develop oil production as quickly as اthrough cooperation with the World "

"The is to search for the best offer and the type of investment we're talking about tens of billions of dollars in this area."

Iraq has plans to visit the production capacity of oil refineries by adding units to the refineries working as well as building new units liquidation, according to the minister.

Shahristani said his country to seek to build refineries in the provinces of Nasiriyah and Maysan کربلاء, south of Baghdad, کرکوک north of Baghdad.

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