Thread: Iraq/Dinar News. 09/05 to 01/14/07

Iraq: Kurdish Oil Law Poses Problem For Baghdad
By Sumedha Senanayake
NEW YORK, 09 November 2006 (RFE/RL)

On October 22, the Kurdish regional government published a final draft of the petroleum law. The draft document is to be debated within the regional assembly and, if passed, it would place the region's government in opposition to the central government in Baghdad, which has indicated that it will publish its own completed hydrocarbon law sometime in December or early 2007.

If parallel legal frameworks are established in the Kurdish autonomous region and Baghdad, foreign firms wanting to do business may have to sign separate contracts and adhere to the laws of two governments. Thus, the issue remains as to whether a compromise can be reached between the Kurds and the Iraqi central government, or whether the division of oil revenues will prove to be a source of further instability in a country already reeling from insurgency and sectarian strife.

Kurds Push Own Oil Policy

While violence engulfs much of Iraq and the Baghdad central government continues negotiations over a petroleum law, the Kurds have moved ahead and are poised to pass their own oil law. In addition, they have already signed a handful of contracts with foreign firms to explore oil fields in the north.

Issam al-Chalabi, a former Iraqi oil minister, said the right to control local oil reserves constitutes a major complication between the Kurds and the central government, AP reported on October 25.

"The Kurds have submitted a draft petroleum act to be adopted that gives them the right to control oil, regardless of the government in Baghdad. The Oil Ministry has submitted another completely different draft that gives the authority to the ministry, not regions. It's the main issue of the conflict: oil and Kurds," he said.

The establishment of a petroleum law in the Kurdish region not only underscores the decentralization of oil resources, but it constitutes another step in the Kurds' move away from the Baghdad government.

Tension Over Signed Oil Contracts

In another area of contention, the Kurdish administration has moved ahead and signed exploration contracts with several foreign oil firms, including the Norwegian oil company DNO and the Turkish firms PetOil and Genel Enerji. The contracts place the local administration at odds with Baghdad by stressing Irbil's autonomy at the expense of the central government.

Barzani threatened to secede (RFE/RL file photo)The issue came to a head when Iraqi Oil Minister Husayn al-Shahristani told the state-owned daily "Al-Sabah" on September 24 that contracts signed with foreign firms to develop oil fields in the north without the approval of the central government were subject to review by the ministry. Officials in the Oil Ministry also said that foreign firms currently working in the Kurdish region would be blacklisted in the future from attaining contracts to develop oil fields in southern Iraq.

In response, Kurdish Prime Minster Nechirvan Barzani said the move would be unconstitutional and he issued a statement suggesting that his government may secede if the contracts were rejected. "If Baghdad ministers refuse to abide by that constitution, the people of Kurdistan reserve the right to reconsider our choice," he said.

'Future Oil Fields'

The key issue concerns the control and management of so-called "future oil fields". Although Article 108 of the Iraqi Constitution says, "oil and gas are the ownership of all the people of Iraq" and are to be managed by the federal government in conjunction with regional governorates, only "current" oil fields, which are controlled by the central government, are mentioned, not any discovered in the future.

Kurdish Natural Resources Minister Ashti Hawrami insisted that future oil fields in the Kurdish region are to be managed by Irbil and won't be shared with Baghdad, "USA Today" reported on November 6. "In management of new fields, we are adamant that we will not share with the federal government. Planning, coordination -- no problem. But who has the right to write contracts? We can consult with the center, but the ultimate authority lies with the Kurds," he said.

The issue of future oil fields will becomes all the more significant when the fate of Kirkuk is decided by a referendum in 2007. Recent demographic shifts as part of the Kurds' attempts to reverse the Hussein regime's "Arabization" campaign suggest that Kirkuk may very well have a Kurdish majority, thereby placing the Kurdish government in a good position to annex Kirkuk and take control of its massive oil fields.

Outlook Unclear

The fact that the Kurds have already drafted their own petroleum law even before the creation of a federal law is itself indicative of the strength of Irbil's position, in that the Kurds are a major component of the Shi'ite-led coalition government and without their support the government would probably fall.

Conversely, it may be in the Kurdish administration's interest to back down and show a willingness to compromise with Baghdad. The Kurdish region is land-locked and export outlets are crucial. Experts contend that the existing Ceyhan pipeline from northern Iraq to Turkey does not have the capacity to carry additional crude exports. Furthermore, if Kirkuk is annexed by the Kurds, it may complicate matters with Turkey, which is already concerned that the Iraqi Kurds' ambitions of autonomy may incite their own sizable Kurdish population to follow in their footsteps.

Even if the dispute is resolved, the oil industry itself is in shambles because of rampant corruption and insurgent attacks. The Special Inspector General for Iraq Reconstruction, the U.S. agency responsible for overseeing Iraq's reconstruction, issued a report on July 30 describing smuggling as "pervasive" and "virtually pandemic," which threatens Iraq's ability to maintain, let alone increase oil production.

Even though Iraq is rich in crude oil and natural gas, it must import much of its refined petroleum. Years of UN sanctions left much of Iraq's oil infrastructure in a dilapidated condition, crippling its refining capacity.

Finally, caught in the middle of the dispute are the Sunni Arabs, who fear that Iraq is moving toward partition into three sections: a Kurdish north and Shi'ite south, both rich in oil, while the Sunnis are left with a resource-poor center. The Kurds' demands and aggressive posturing might aggravate the Sunnis' feelings of marginalization and provide more fuel for radicals among them.

saturday NOV 11 is VETERANS DAY

THOUGHTS FOR THE DAY
In case we find ourselves starting to believe all the anti-American
sentiment and negativity, we should remember England's Prime Minister
Tony Blair's words during a recent interview. When asked by one of his
Parliament members why he believes so much in America,he said:

"A simple way to take measure of a country is to look at how many
want in .... and how many want out. Only two defining forces have ever
offered to die for you:
1. Jesus Christ
2. The American G. I.
One died for your soul .. the other for your freedom."

YOU MIGHT WANT TO PASS THIS ON, AS MANY SEEM TO FORGET BOTH OF THEM!!!

Originally Posted by Webster

Sorry CharmedPiper, I hate to burst your bubble but you can't do that. Here is why:

LawkSalih.Com - The Iraqi investment law at a glance

The law opened all areas of investment before Iraqi and foreign investors except:
Investment in the field of extracting and producing oil and gas.

The fig farm might be ok! LOL.

I think that you could still have a Iraqi pardner and he could buy the oil wells. LOL. So for the people that have investment capital.....Lets go buy up Iraq
WOOOOOOT

I'm not sure what all this is talking about just noticed about the law i colored in red.


By Kordi

News
The Presidency ratified the Law of inclusion

November 9, 2006
Sadik of the Presidency Council, Assembly at its meeting on 2 / 11 / 2006 on the inclusion and issued Law No. (12) of 2006, following is the text of the law.
"In the name of the people
The Presidency
Based on the approved by the House of Representatives in accordance with the provisions of paragraph of the first article, first session of the Constitution, based on the provisions of paragraph (V / a) of article one hundred eight and the 30th of the Constitution.
Council decided the presidency Assembly at its meeting on 2 / 11 / 2006 issued the following law :
No. (12) of 2006
The inclusion
* Article (1)
Bear employee or designated public service or public or private company or contractor of liability for damages suffered by the public sector due to neglect or default or violation of laws and regulations and instructions.

* Article (2) :
A competent minister or head of the non-related to the Ministry of the investigative committee of at least three members with expertise and competence and be one of its members, a legal officer to determine the amount of modulation and responsible for the damage provided for in Article (1) of this law and the gravity of the wrong committed, whether deliberate or intentional, on the for use in the vicinity of the competent official.

* Article (3) :
A competent minister or head of the Ministry of others linked to a decision based on the recommendations of the problem under Article (2) of this Act.

* Article (4) :
Reimburse employee or designated public service or the company or the contractor in the amount of modulation one package and the competent minister or head of the procuring-linked approval of the Ministry of amortized for a period not exceeding five (5) years and for a bail guarantor of real estate.

* Article (5) :
The implicit provided for in Article (1) of this law prosecution through the courts Badah (30) days from the date of notification by the decision of inclusion and a judgment rendered by a court could be appealed during the thirty (30) days from the date seized by the Court of Appeal as discriminatory and the decision of the outcome of the appeal b Ata and binding.

* Article (6) :
The provisions of the Law of the collection of government debts No. (56) of 1977 contained in the case of failure to perform the amount of inclusion or non-inclusion appeal the decision according to Article (6) of this Act or non-payment of any portion of the premiums of his estate, and during a period not to exceed (30) days from the date of entitlement and longer installment abolitionist and deduct Alaksa i his estate, the remaining package.

* Article (7) :
The provisions of this Act and assigned staff even after the end of their services for any reason.

* Article (8) :
Repeal of the Revolutionary Command Council (degenerate) No. (176) in 13 / 10 / 1994 (160) and in 26 / 10 / 1997 and (81) in the June 14, 1998 and (100) in the June 22, 1999, (5) January 10 / (202), on September 24, 2002.

* Article (9) :
The finance minister issued instructions to facilitate the implementation of the provisions of this Act.

* Article (10) :
This law implemented from the date of its publication in the Official Gazette.
Tariq Al-Hashmi
Adel Abdel Mahdi
Jalal Talabani

Vice-President of the Republic Vice-President of the Republic President of the Republic "
(Signature Acting)


Reasons
Given that the provisions of the Revolutionary Command Council (degenerate) on the amplitude is not consistent with the changes and developments in the new Iraq, in order to make way for the judiciary to consider appeals from decisions of inclusion, launched this law. "

Originally Posted by bigred52

saturday NOV 11 is VETERANS DAY

THOUGHTS FOR THE DAY
In case we find ourselves starting to believe all the anti-American
sentiment and negativity, we should remember England's Prime Minister
Tony Blair's words during a recent interview. When asked by one of his
Parliament members why he believes so much in America,he said:

"A simple way to take measure of a country is to look at how many
want in .... and how many want out. Only two defining forces have ever
offered to die for you:
1. Jesus Christ
2. The American G. I.
One died for your soul .. the other for your freedom."

YOU MIGHT WANT TO PASS THIS ON, AS MANY SEEM TO FORGET BOTH OF THEM!!!

It is great that even the folks over seas take notice of the US Military and their accomplishments throughout time....

On that note, Happy Birthday to the United States Marine Corps and all of the Marines!!!

i dont understand why this BofA rumor is so talked about, they maybe just want a piece of the action, considering they see how much chase is buying and selling after obtaining from them..

Originally Posted by mike brown

i dont understand why this BofA rumor is so talked about, they maybe just want a piece of the action, considering they see how much chase is buying and selling after obtaining from them..

i think because B of A staff have told many people from this and the "other place" that they will not be dealing in Dinar until it is an internationally tradeable currency, launcehed on the forex.

this makes some dinar investors excited because most of them believe that iraq must revalue their currency before launching it on the forex, otherwise they will sell themselves out to overseas interests way too cheaply.

launching the IQD on the forex at the current artificially low rate would risk their entire country being the target of extreme speculation, causing maybe fatal instability.

Originally Posted by mike brown

i dont understand why this BofA rumor is so talked about, they maybe just want a piece of the action, considering they see how much chase is buying and selling after obtaining from them..

i think the reason it is being talked about is that there was also a fairly widely accepted statement that B of A would not exchange IQD "until it was an internationally traded currency" and that they were actually meaning "traded on the FOREX".

the key word being "traded" and not "convertable". IQD has been "convertable" for a long time but is not yet "traded".

Mike Brown,

The reason why B of A is talked about so much it is more of them are in the west and "NOT" every state has a Chase. It would be nice to hear what they have to say I for one included, it just happens that I was just there. A long time ago in another club I used the be with, I spent almost 9 hrs. on the phone with each of the major banks, foreign exchange departments, and got nothing but a run around. I only had a couple that said that they were, when it was going to happen. One was Citibank and the other was Wells Fargo and the last but least was HSBC. Well I live over 70 miles one way to the major city and I decided to go to the banks that had said they would and talk to each of the branch managers to see what they say. They made the phone calls to the foreign exchange department and said no way it was to risky. Now things are changing and more information is coming out, we need everyone to help to get all of the information they can to help the others on here. How about this, would you go and check out Chase Bank and see what they tell you I do not have one near where I live and let us all know what you found out? No one will ripe you apart here for information.

Originally Posted by tiffany

Hmmmmm...that's fine...but I'm more interested in SELLING my IQD! THAT'S what I think the majority of us would like to know....When can we SELL IQD to BoA! lol!

They are only handling internation trading currencies from what I have understood.

I think and I am certain that they will do the whole package, selling, exchanging.