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

Finance Ministry: Iraq to reconsider 2009 budget

A Finance Ministry official says Iraq will reconsider the country's planned 2009 budget in light of falling oil prices.

Last month, the ministry set the budget at nearly $79 billion based on expectations that the average price per barrel of oil would not drop below $80.

Finance Ministry spokesman Adnan Abdul-Rahman says the new price will be determined next week.

On Wednesday, oil for November delivery was down 61 cents to $78.02 per barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.

Oil revenues represent more than 90 percent of Iraq's national capital budget.

Finance Ministry: Iraq to reconsider 2009 budget - BusinessWeek

ONGC Videsh may bid for 8 Iraqi oil, gas blocks

ONGC Videsh (OVL), the overseas investment arm of Oil and Natural Gas Corporation (ONGC), is likely to bid for the eight oil and gas blocks that are being auctioned by Iraq, the country with the world's second largest proven oil reserves.

OVL, along with global oil majors such as Royal Dutch Shell, ExxonMobil, Chevron, ConocoPhillips, British Petroleum, Total and China National Petroleum Corporation (CNPC), is one of the 35 companies short-listed by the Iraqi government for the auction, which includes six oil-producing blocks with recoverable reserves of 40 billion barrels of oil, making it the largest such auction in the world.
The bidding is likely to take place in the next few months and the blocks may be offered by June next year.

Iraq’s oil minister Hussein al-Shahristani met officials of 35 short-listed companies in London on Monday. The government is expected to kick off the bidding process by giving companies access to data for the blocks on offer on Tuesday.

“Our team is in London meeting the Iraq officials. Once our team is back we will take a call on which blocks to bid for,” said an official with OVL.

The auction of the oil and gas blocks in Iraq has revived the debate over whether the real intention of the US invasion of Iraq in 2003 was to secure the huge oil riches in the West Asian country rather than to flush out Saddam Hussein who allegedly sat on stockpiles of weapons of mass destruction (which were never found).

Iraq wants to ramp up output by 500,000 barrels per day in the next couple of years from the current average production of 2.5 million barrels per day, about equal to the amount being pumped before the March 2003 invasion.

Exports of 2.11 million barrels per day currently form the bulk of the country's revenues, and Iraq is keen to raise capacity over the next five years to 4.5 million barrels per day.

There are also security risks associated with operations in Iraq. “Companies can operate when the situation is conducive. The security situation has improved in Iraq,” said the OVL official. “Obviously Iraq is exciting,” he added.

Analysts said companies would be keen to enter Iraq in spite of the risks involved. “If there is oil available companies will go. They would not want to lose out in the race for oil,” a Delhi-based analyst said.

Oil prices have fallen over 45 per cent to around $80 per barrel from their peak of $147 per barrel on July 11 as demand slumps on a back of a financial crisis across the world. Prices are now almost equal to what they were a year ago

ONGC Videsh may bid for 8 Iraqi oil, gas blocks

Symposium to Lure Kuwaiti Investors Held

A symposium was held yesterday as part of the ongoing exhibition being held by the Iraqi Ministry of Construction, Housing, and Services Sectors. The occasion was used to discuss the cooperation displayed by Kuwaiti companies with the Iraqi government.

The Iraqi government is interested in securing Kuwaiti companies' participation in order to rebuild and reconstruct Iraq. "Kuwait is our neighbor and it will be given priority in investment opportunities in Iraq. There are a few companies in Basra and Erbil and other governorates. We hope to see their numbers increase. There are many large-scale projects that are open to investors. So, we invite Kuwait and the GCC countries to participate in this," said Bayan Daz'ei, the Iraqi Minister of Construction, Hou sing, and Services Sector.

The recently passed investment law creates new opportunities for investment-related activity in Iraq. "It has embraced the free investment policy. Both Iraqis and non-Iraqis are allowed to invest in Iraq. Exceptions are only applicable when investments are made in banking, oil, and insurance sectors. According to this law, foreign investors are entitled to the same rights as Iraqis except that they are not allowed to own land. As an alternative, the law allows them to lease land for a period of 50 years, stated Ahmad Ridha, Head of the National Authority for Investment.

The law offers further advantages to foreign investors, "All investments made in Iraq will be exempt from income taxes for the first 10 years. Also, the investor is released from having to pay customs duties. He is allowed to transfer capital outside Iraq in any currency," he added.

A simple procedure is involved in obtaining an investment license. "All the investor has to do is fill an application form on the website, and the authorities will receive the documents in Iraq. It is not necessary for a foreign investor to have an Iraqi partner to conduct business or investments," Ridha said.

The government guarantees all investors' investments. "For instance, no project can be unlawfully stalled. Recently, the Office of the Iraqi Commercial Attachï¿ 1/2 was launched in Kuwait to help Kuwaiti investors, where they can also lodge their complaints," he concluded.

http://www.istockanalyst.com/article...d_2705868.html

Turkey and Shell ready to sign agreement for Iraqi gas exploration

Turkey and Shell are on the brink of an agreement to carry out joint natural gas exploration works in northern Iraq, Sabah daily reported on Thursday.

A senior official from Turkey's Energy Ministry said Shell and the state-owned Turkish Petroleum Corporation (TPAO) are going to search for gas in the Middle East, the report said.

According to the report, Shell wants to start the search and production of gas in northern Iraq, home to the Kurdish regional administration; however, Turkey has demanded operations for all Iraq.

Head of Shell Gas and Power in Turkey, Nusret Comert, who said the talks with TPAO had been ongoing for some time, added that, "We have good relations with TPAO. Our talks continue for cooperation," the report also said. He declined to comment on Shell's desire to start operations in northern Iraq.

Meanwhile, Iraqi Oil Minister Hussein al-Shahristani is currently holding meetings with representatives of oil companies in London.

Iraq, who wants to ramp up oil production by 500,000 barrels per day from the current average production of 2.5 million barrels per day (bpd) initially granted permission to 35 oil prospecting companies, including Shell, BP, ExxonMobil, Chevron.

Iraq’s crude reserves are estimated at about 115 billion barrels, but it is sorely lacking in infrastructure and the latest technology to which it was denied access under years of international sanctions after the 1991 Gulf War.

PUKmedia :: English - Turkey and Shell ready to sign agreement for Iraqi gas exploration

Kuwait Envoy to Iraq to take up Post

Kuwait’s foreign minister says his country’s first ambassador to Iraq since the 1991 Gulf War will submit his credentials in Baghdad next week.

The Kuwait News Agency quotes Sheikh Mohammed Al-Sabah as saying Wednesday that Ambassador Ali Al-Momen will then start preparing for a “historic” visit by Kuwait’s prime minister, Sheikh Nasser Al-Mohammed Al-Sabah, to Iraq. The foreign minister did not provide specific dates.

Ties between the two neighboring Arab countries were severed when former Iraqi leader Saddam Hussein invaded Kuwait in 1990. A US-led coalition liberated the country in the 1991 Gulf War. Diplomatic relations between the two countries were restored after the US-led invasion of Iraq in 2003 that toppled Saddam. Sheikh Mohammad made the announcement in statements to the press here ahead of leaving for Kazakhstan to take part in ASIA Cooperation Dialogue (ACD) Ministerial Meeting.

“The visit will be of historic importance as the Premier will be the first top-level Kuwaiti official to visit Iraq since the Iraqi invasion of Kuwait in 1990. “The visit will pave the way for full resumption of bilateral ties,” Sheikh Mohammad noted, voicing hope that it will achieve the desired results. “HH the Premier plans to meet top Iraqi leaders including President Jalal Talabani and Prime Minister Nuri Al-Maliki as well as vice presidents, deputy premiers, parliament speaker, leaders of parliamentary blocs and religious leaders. “His visit will provide an opportunity for the two countries to strengthen the people-to-people relations and the relations between the media institutions of both sides.

“The new Iraq is a democratic, open and diversified country, so its mass media reflect the diversification of the nation. “We hope to further the bilateral people-to-people relations as well as the relations between the media institutions between the two Arab countries,” Sheikh Mohammad added.

http://pukmedia.com/english/index.ph...=7010&Itemid=1

Trade Minister: There are no financial or administrative corruption in the ministry and we need large amounts to cover items of the ration card

Said Trade Minister Abdel Falah Hassan, the Sudanese that "most food within the ration card items to be imported from abroad, and therefore we need large amounts to cover these items, because of the high prices in the global market," pointing out that "there is no financial corruption Or administrative ministry. "

The Sudanese press conference held in Al-Mansour Hotel in Baghdad on Wednesday, said that "the issue of food security for the citizens of great importance to us, is providing food to the general Iraqi people."

The Sudanese minister at the conference, which was attended by "Uzmatik" "The ministry buys eight million and 500 thousand tons of food per month, and therefore we need a lot of money, although the Iraqi government allocated five billion dollars for next year in 2009 for the purchase of items of the ration card, in addition to the capabilities Significant logistical and security of transport and storage. "

He said the Sudanese that "the ministry faced difficulties in providing supply for a continuous way, there is a lack happen sometimes because some of the material damage due to transportation and processing of some of those articles of the Ministry of Commerce damaged."

He pointed out that "does not foresee the possibility control of the material damaged during the coming days, although the ministry put the highest international standards for the import of food," pointing out that "the phenomenon of corruption and damage the food is a global phenomenon."

The Commerce Minister said "We accept any constructive criticism to evaluate the work of the Ministry, from any point was," stressing that "the work of the Ministry of Commerce is transparent, and there is no financial or administrative corruption in the ministry."

The positions of some political blocs, and the presidency of the Iraqi parliament, banned earlier to include the issue of interrogation and Trade Minister by the Iraqi Council of Representatives, against the backdrop of accusations of corruption and the ministry deficit for the delivery of ration to citizens. The head of the Integrity Committee in parliament Fadhila party MP morning Saadi in an interview earlier for "Uzmatik" "The withdrawal of confidence from the Sudan has become a national demand and popular, after the failure of his ministry in the provision of food basket for Iraqis," he said, calling for "large demonstrations out to demand his dismissal".

Translated version of http://iraqalaan.com/

Investment authority conf. concludes in Arbil

The first Investment Authority conference on Iraqi provinces on Thursday concluded in Arbil city with the participation of 15 investment institutions from all over the country.

“The conference, co-organized by the Center for International Private Enterprise (CIPE) and the private sector office in the U.S. embassy in Iraq, was held at Sheraton Hotel, Arbil,” the E.x.e.cutive director of the center for private international projects told Aswat al-Iraq.

A total of 140 figures from 15 investment departments countrywide participated in the event, which aimed at identifying the obstacles facing investment institutions in the country, he added.
Dozens of research paper and articles were submitted during the two-day conference, the director pointed out.

Arbil, also written Erbil or Irbil, is believed to be one of the oldest continuously inhabited in the world and is one of the largest cities in Iraq. The city lies eighty kilometers (fifty miles) east of Mosul. In 2005, its estimated population was 990,000 inhabitants. The city is the capital of the autonomous Iraqi Kurdistan region and the Kurdistan Regional Government (KRG). It hosts the headquarters of the Kurdistan region ministers and parliament.

Since the overthrow of Saddam Hussein, only isolated, sporadic violence has hit Arbil, unlike many other areas of Iraq. Parallel bomb attacks against the Eid celebrations arranged by the Iraqi President Jalal Talabani’s Patriotic Union of Kurdistan (PUK) and KRG President Massoud Barazani’s Kurdistan Democratic Party (KDP) killed 109 people on February 1, 2004. Responsibility was claimed by the Islamist group Ansar al-Sunnah, and stated to be in solidarity with the Kurdish Islamist faction Ansar al-Islam. Another bombing on May 4, 2005 killed 60 civilians. Despite these bombings the population generally feels safe.

Investment authority conf. concludes in Arbil : Aswat Al Iraq

Dollar demand up in CBI auction

Demand for the dollar went up at the Central Bank of Iraq (CBI) auction on Thursday, registering at $153.245 million, compared to more than $144 million in the previous session.

“The demand hit $37.640 million in cash, covered by the bank at an exchange rate of 1,181 Iraqi dinars per dollar; and $115.605 million in foreign transfers outside the country at an exchange rate of 1,178 Iraqi dinars per dollar,” an official source from the bank told Aswat al-Iraq.

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

The Central Bank of Iraq runs a daily auction from Sunday to Thursday.

Dollar demand up in CBI auction : Aswat Al Iraq

Operations Command denies news of the fall of Baghdad, mortar shells at Green Zone

BAGHDAD denied the leadership of mortar shells fell on the Green Zone in central Baghdad. A spokesman for law enforcement plan, Major General Qassim Atta in a statement addressed to the press service of the National Information Center reports that some segments of the media and caused a number of mortars at the Green Zone Are inaccurate reports, asking the media to exercise precision in the transfer of news.

http://66.102.9.104/translate_c?hl=e...xv_rAp6CLkakUg

UN, Kurdistan sign 3-year Agreement

The UN will provide technical and financial support to the Region.

The United Nations and the government of Kurdistan Region signed an agreement on October 13 in which the UN will provide technical and financial support to the Region for three years.

Signing the agreement was David Shearer, deputy to the UN Secretary-General's top envoy to Iraq, Staffan De Mistura. "According to this agreement, the UN will provide technical and some financial support to Kurdistan Region, particularly in the fields of electricity, health, energy, agriculture, and road construction."

Shearer added that the UN will also provide technical and financial support to renovate the historical Erbil citadel. Currently, UNESCO and a number of foreign companies are renovating the site.

Called Qala in Kurdish, the citadel is believed to have been built around 5,000 years ago, making it one of the most ancient cities in the world. It was expanded by the Assyrians for their religious capital.

Unique to this historic site is that it is the oldest continually inhabited city in the world; hundreds of families currently live there. Some parts of the citadel were destroyed by harsh weather and rain, compelling officials to put forth efforts to renovate it as a national treasure.

At the start of renovation in November 2006, the government relocated citadel residents to a new area, known as the new Qala neighborhood, on the Erbil outskirts.

The UN office in Kurdistan released information saying that it will spend US$98 million on Kurdistan Region in 2008.

Dr. Dindar Zebari, KRG coordinator to the UN, said that the UN's works in the region will be more organized and strategic now that the agreement has been signed.

He clarified that this agreement came after the UN had signed a similar agreement with Baghdad one month ago.

"Since Kurdistan Region has a special situation and its own government, the UN has decided to sign a similar agreement with the KRG," said Dr. Zebari.

UN, Kurdistan sign 3-year agreement