Thread: Archive - Latest News Think Tank - 15/01/09 - 04/05/09

Iyad al-Samarrai: "The government largely failed in the legislation of the Oil & Gas Law"

A member of the Islamic Party, Ayad al-Samarrai said the Iraqi government has failed to a large extent in the legislation of the oil and gas law and the delay was justified.

He told the radio that he had obtained NOUAN Tokerfi legislation on oil and gas background differences between the Federal Government and the Kurdistan Regional Government:

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Asiacell calls on Government to Organize a Telecom Conference that will Provide Solutions to Existing Problems within the Sector
Asiacell responds to the Iraqi Telecom Conference & Exhibition discussions

In order to provide fundamental solutions to the problems within the telecom sector, Asiacell - the largest private Iraqi company and the first m.obile telecommunications company to provide coverage for all of Iraq - called on the Iraqi Government to organize an official telecommunications conference that brings in all licensed telecom companies in Iraq and the media in order to engage in a constructive dialogue around the problems facing the sector.

This step came in response to the recent statements made during the Iraqi Telecom Conference & Exhibition, which was organized by the Iraqi Reconstruction & Development Institution in cooperation with a wireless and internet communication company on Sunday, April 12th, 2009. Asiacell also reconfirmed that it did not refuse to attend the conference, and that it firmly believes in the importance of supporting active discussions with the Government and the private sector in order to best serve national interests.

Within this context, Mr. Faruk Mustafa Rasool, Founder and Chairman of Asiacell, reaffirmed his company's dedication to overcoming the existing political and social difficulties that the country is facing, stating: "We remain steadfast in our commitment to finding positive solutions to the ongoing difficulties and hardships that face Iraqis on a daily basis. Asiacell has invested hundreds of millions in order to create our network, and we will continue to improve it so that we may realize our vision to deliver our m.obile telecom services to the Iraqi people across the country. I am confident that the Iraqi Government will take the necessary steps to find real solutions to the challenges that we are experiencing and to launch the necessary projects required to enhance our economic infrastructure."

Furthermore, Dr. Diar Ahmed, CEO of Asiacell, went on to say that "We are extremely proud of being the fastest growing operator in Iraq, which reflects all the efforts that we have taken to provide quality services to the Iraqi people at competitive prices in all Governorates with no exceptions. This comes from our commitment to fulfill our responsibilities as a national company and we will continue on this path by disregarding any negative and unfair statements that have been made, especially in lieu of the existing conditions in Iraq."

Asiacell also highlighted the various problems currently hindering the Iraqi m.obile telecommunication companies' transmissions caused by certain companies using Jammer devices which have been prohibited by many countries due to their negative affect on transmission operations and their interference with telecom engineers' attempts to accurately track problems within the networks. Asiacell called on the Government to prohibit the use of such devices in order to enable the company to continue to serve the Iraqi market and to avoid confusing subscribers into thinking that the problem lies with the operator.

http://www.zawya.com/Story.cfm/sidZA...%20discussions

Lower demand for dollar on Thursday

Demand for the dollar went down in the Central Bank of Iraq’s (CBI) auction on Thursday, reaching $94.510 million compared to $161.389 million in the previous session.

“The demand hit $14.490 million in cash, covered by the bank at an exchange rate of 1,176 Iraqi dinars, and $80.020 million in foreign transfers outside the country, covered by the bank at an exchange rate of 1,173 Iraqi dinars per dollar,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the 12 banks that participated in today’s session offered to sell dollars.

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

http://en.aswataliraq.info/?p=111640

Iraq to build major new oil refinery

Iraq has signed a contract with British engineering and construction company Foster Wheeler to build the country's largest-ever oil refinery, an Iraqi official said on Wednesday.

Abdulhassan al-Attabi, the oil ministry representative in the negotiations, said the 128-million-dollar plant will be built near the city of Nasiriyah in southern Iraq.

"This refinery will be the largest one ever built in the country," Attabi said. "It will process 300,000 barrels a day and provide 10,000 jobs."

The refinery will produce light oil products including gasoline, diesel, and cooking fuel, and will be linked to an export line. The project is expected to be completed in less than two years.

The refinery will sit near the Al-Nasiriyah Al-Kabir field which is capable of producing about 300,000 barrels of oil a day, the Al-Gharraf field, which could produce 130,000 barrels a day, and the Al-Rafidein field, which has an estimated capacity of 110,000 barrels a day.

Iraq has 115 billion barrels of proven oil reserves -- the third largest in the world -- but much of it remained untapped during decades of war and international sanctions under Iraqi dictator Saddam Hussein.

At the end of February, Iraq was producing 2.31 million barrels a day.

http://www.zawya.com/story.cfm/sidAN...5T094734ZACY90

2011 deadline to produce electricity according to the plan set by Iraq Minister of Electricity

Iraq Minister of Electricity Karim Wahid said that 2011 will be the determined deadline in order to produce electricity according to the plan set by the Ministry. Wahid added that Ministry of Electricity suffers from a great problem in the General Budget because the Ministry asked for 7 trillion dinars, yet it didn’t get but 1.400 billion Iraqi dinars. The same source said that there are projects that hinder finishing the electricity.

http://www.alsumaria.tv/en/Economics...ectricity.html

Iraq has turned a corner toward national revival

A restored and pacified Iraq is determined to regain its proper place in the Middle East and on the international scene. This is the optimistic message which Vice President Adil Abd Al-Mahdi brought this week to France - a country which he sees as a major partner in the reconstruction of Iraq after three decades of devastating wars.

Iraq is courting France and is, in turn, being courted by it. Contracts worth many billions of euros are being negotiated, essentially in the fields of oil, security and infrastructure. President Nicolas Sarkozy is anxious for France to gain a privileged position in Iraq, while Iraq sees its growing links with France as a way to diversify its international relations and lessen its dependence on the United States.

Dr Abd Al-Mahdi, a French-trained economist and former Finance Minister, is a weighty figure in Iraqi politics. He is a leading member of the Islamic Supreme Council of Iraq (ISCI), headed by Abd Al-Aziz Al-Hakim. This Iran-backed Shi'ite party is linked with Prime Minister Nuri Al-Maliki's Islamic Dawa Party in a grouping called the United Iraqi Alliance - in effect Iraq's ruling party. Dr Abd Al-Mahdi and Nuri Al-Maliki are allies (although they are also, it must be said, political rivals.) Nuri Al-Maliki is due in Paris next month to take the partnership with the French a step further.

France's Total seems to have gained a head start over other international oil companies in developing Iraq's vast oil and gas reserves. It is negotiating some major concessions. A French company has signed a contract with the Municipality of Baghdad for a water purification scheme worth nearly a billion dollars. A French consulting firm is designing a system to secure Iraq's borders. Its implementation is said to be worth another billion dollars. Eurocopter is to sell Iraq 24 helicopters for $500m. These are only among the first of many such contracts under negotiation.

What picture of present-day Iraq does Dr Abd Al-Mahdi provide? It is of a country firmly on the way to national reconciliation and revival, a country that has, to a large extent, quelled an armed insurgency and greatly reduced the bitter sectarian killings of recent years.

Defeating the insurgency - especially in the key province of Al-Anbar - was accomplished thanks to the 'surge' in American troops, to a strengthened national army, and more particularly to the Sahwa militia or Sons of Iraq, an American-funded volunteer force made up of former Sunni insurgents. It was largely responsible for driving Al-Qaeda out of Al-Anbar. This, Dr Al-Mahdi said in Paris this week, was a decisive turning point in the struggle against terror.

But dealing with a disbanded Sahwa - at one time nearly 100,000 strong - has not been easy. Attempts are being made to integrate its former members into the national security forces and other government departments. A budget of $350m has been earmarked this year to pay their salaries. But some violent groups, operating under the Sahwa banner, have turned to crime. The recent arrest of a former Sahwa leader, Adil Mashhadani, said to be running a protection racket, triggered an outbreak of violence.

Although greatly improved, security in Iraq is clearly not yet fully restored. Suicide bombers continue to claim their victims. But the social tissue of the country is being reconstituted. Iraq is being put together on a new basis of national reconciliation, democracy, federalism and fraternity with its neighbours - in particular with Iran, Turkey and Syria.

Dr Al-Mahdi went out of his way to praise Turkey's 'very positive role' in Iraq, describing it as a major partner in the reconstruction of the country. Turkish investments in Iraq total nearly $5bn, he said.

Since the news from Iraq has been bad for a very long time, Dr Al-Mahdi's fairly upbeat assessment comes as a relief. A briefing this week by him and his team served to pinpoint a number of national priorities.

Iraq is unique in the world in having more than 50 oilfields ready for development. It is urgently looking for foreign investment in its oil and gas industry, but also in every aspect of its smashed infrastructure. Iraq has external debts of $148bn, and is continuing to pay compensation to Kuwait for its 1990 invasion, to the tune of 5 per cent of Iraq's oil income, or $1.5bn a year.

To rebuild an educated elite, devastated by the flight of much of Iraq's middle class, the government is planning to send abroad 10,000 students a year for the next five years. Chosen strictly on merit, they will go to the UK, the U.S., France, Canada and Australia for higher education.

Arabised by Saddam Hussein but claimed by the Kurds, the oil-rich region of Kirkuk is a possible future flashpoint. A compromise is being sought with the Kurdistan Regional Government - either in the form of a condominium or some sort of shared authority over Kirkuk. Staffan de Mistura, the energetic special representative in Iraq of the UN Secretary General, is heavily involved in the search for a solution.

One surprise announcement is that Iraq and Iran are renegotiating the Algiers accord reached between Saddam Hussein and the Shah of Iran in 1975. The agreement - which Saddam tore up five years later when he launched his attack on Iran -- demarcated the disputed river boundary between the two neighbours according to the thalweg line in the middle of the Shatt Al-Arab waterway.

Iraq now claims that the boundary needs to be redrawn closer to the Iranian shore because of changes in the course of the Shatt. The fact that the Maliki government has chosen to raise this contentious issue with its close ally Iran is itself a signal that Iraqi national interests are being reasserted.

One way and another, a revived and ambitious Iraq is putting the horrors of the past 30 years behind. It can be safely predicted that it will, in the not too distant future, be once again a power to be reckoned with.

By Patrick Seale © The Saudi Gazette 2009

http://www.zawya.com/Story.cfm/sidZA...onal%20revival

week to conclude the central bank's financial decline in the level of sales to 94 million

Lastly, the Central Bank of Iraq, down week, the financial level of dollar sales of 94 million and 510 thousand dollars in the canteen in the daily sale of foreign currency And a stable exchange rate was 1170 dinars per dollar.

This was announced by Information Office of the Central Bank Obtained in the bulletin (News Agency, Iraqi Information / conscious) a copy of which showed that the total dollar sales reached 14 million and 490 thousand dollars at the exchange rate stable at 1176 paid in cash, including the World Bank's commission of $ 6 dinars per dollar.

While the value of foreign remittances 80 million and 20 thousand dollars at the exchange rate stable, the bank paid in cash, including the World Bank's commission of $ 3 dinars per dollar.

Did not make the banks (12) to participate any offers to sell the dollar, noting that the Central Bank of Iraq shall receive Commission of (3) dinars per dollar with a deduction of (1) JD / Dolreetn amounts purchased.

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Iraq asks Eni, Repsol, Nippon to resubmit oil bids

Iraq has asked oil firms Nippon Oil of Japan, Eni of Italy and Repsol of Spain to resubmit bids for developing the Nassiriya oil field, Oil Minister Hussain al-Shahristani said on Thursday.

"Eni, Repsol and Nippon Oil have recently submitted their technical offers to the Oil Ministry. After studying these offers, we had some remarks and we asked them to review their offers and submit new ones," Shahristani told Reuters.

"We are expecting them to come back with new offers in a matter of days," the minister added in an interview in Iraq's southern oil hub of Basra.

Iraq invited the three companies to compete for the field, which Shahristani had previously said could be pumping 100,000 barrels per day within 18 months and which Eni ****utives have estimated could produce up to 1 million bpd.

Iraq had been expected to make a decision about the bids sometime toward the end of April or in early May, Iraqi officials have said.

The engineering, procurement and construction contract for Nassiriya is one of many efforts Iraq is currently making to boost lacklustre oil production and raise government revenues so it can rebuild after years of conflict.

The country holds the world's third largest oil reserves, but they are largely underexploited due to decades of war, sanctions and underinvestment.

Sabotage, theft and crumbling infrastructure have resulted in current output being below the level it was at before the 2003 U.S.-led invasion to topple Saddam Hussein.

In addition to inviting specific firms to compete for development contracts in some fields, Iraq has opened itself up this year to foreign oil companies through two rounds of tenders for oil field servicing contracts.

http://www.reuters.com/article/marke...68486120090416

Islamic Banks start positioning themselves in Iraq - Liquidity and lack of regulation top agenda

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Islamic institutions are starting to position themselves in Iraq to enable them to penetrate the relatively untouched market once the security situation improves, a leading consultant said yesterday.

"In the past 12 to 15 months, there have been decisions made about opening representative offices in Iraq. The strategy is to be able to have established a presence in the country, so the moment the country starts to grow again you are on the ground," Boston Consulting Partner and Managing Director Knut Storholm told the Reuters Islamic Banking and Finance Summit in Dubai, citing a spike in interest among banks in the Gulf and Asia.

A number of banks are building up their Islamic finance units in the wake of the global credit crisis, tapping into a nascent industry estimated at $700 billion (Dh2.57 trillion) to $1trn in asset size and a 15-20 per cent annual growth rate.

Royal Bank of Scotland, Rothschild and Bank of New York Mellon all are expanding in the field.

Earlier this week, UBS, the troubled Swiss-based bank that is slashing staff to offset losses, said it sees growth opportunities in Islamic finance and plans to expand in this market.
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http://www.business24-7.ae/articles/...423ca6d34.aspx

Originally Posted by Seaview

Islamic Banks start positioning themselves in Iraq - Liquidity and lack of regulation top agenda

..............................

Islamic institutions are starting to position themselves in Iraq to enable them to penetrate the relatively untouched market once the security situation improves, a leading consultant said yesterday.

"In the past 12 to 15 months, there have been decisions made about opening representative offices in Iraq. The strategy is to be able to have established a presence in the country, so the moment the country starts to grow again you are on the ground," Boston Consulting Partner and Managing Director Knut Storholm told the Reuters Islamic Banking and Finance Summit in Dubai, citing a spike in interest among banks in the Gulf and Asia.

A number of banks are building up their Islamic finance units in the wake of the global credit crisis, tapping into a nascent industry estimated at $700 billion (Dh2.57 trillion) to $1trn in asset size and a 15-20 per cent annual growth rate.

Royal Bank of Scotland, Rothschild and Bank of New York Mellon all are expanding in the field.

Earlier this week, UBS, the troubled Swiss-based bank that is slashing staff to offset losses, said it sees growth opportunities in Islamic finance and plans to expand in this market.
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http://www.business24-7.ae/articles/...423ca6d34.aspx

Islamic Banks to find a foothold in Iraq

The advisory group in Boston on Thursday that the Islamic banks in the Gulf and Asia, began looking for a foothold in Iraq to be able to penetrate a new market as soon as the security situation improves there. The managing director and partner in the Boston Konsalting Group, Knott Storholm Reuters summit on Islamic finance in Dubai "This is simply a manifestation of the political and military situation," referring to the increasing interest of banks in the Gulf and Asia.

Storholm added, "Over the 12 months between 15 months and took decisions on the opening of representation offices in Iraq. The goal is to be able to achieve a presence in the country to be there when the country begins to grow again."

The Boston Consulting Konsalting of financial institutions in the area of services in the Islamic Middle East and South-East Asia.

Iraq, which represents a population of about 28 million people an opportunity of growth of any Islamic bank is looking for a nascent market instruments received by the bank members of the Islamic-oriented acceptance.

And demand increased by some 1.3 billion Muslims in the world of investments consistent with their beliefs and Islamic assets are estimated at between 700 billion and a trillion dollars.

The Storholm, saying that the sovereign risk and no regulatory actions are disrupting the expansion of banks in Iraq.

The Storholm "Do you really want to go to a country without a credit rating. The case of disturbances, security and a favorable climate for the work."

Said Mohammad Badi Konsalting from Boston that the Islamic banks in the Gulf region is likely to be the first venture into Iraq tools relating to banking companies, trade financing, and intervention tools that target individuals at a later date.

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