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

Iraqi leaders to hold "urgent meeting" - deputy PM
19 November 2006 (BBC Monitoring)

Iraqi leaders will hold an "urgent" meeting in the next few days to discuss curbs on violence, Iraqi Deputy Prime Minister Barham Salih Dubai told Al-Arabiya TV in an interview carried on 17 November.

He gave no further detail but said: "Iraq cannot go on with this level of violence and bloodletting."

"Therefore, it was decided to convene an urgent meeting of political leaders in Iraq over the next few days, to discuss the situation, to reassess government work mechanisms and to adopt appropriate measures."

Salih said participants would include "leaders involved in the political process and leaders who represent the overwhelming majority of the Iraqi people".

He did not confirm outright whether leader of the Association of Muslim Scholars Harith al-Dari would take part in the conference but said:

"National reconciliation attempts are ongoing, including the Arab League initiative in which Shaykh Harith al-Dari and the Association of Muslim scholars had participated."

Salih admitted that the Iraqi government was "paralyzed" because "the extremists impose their control on many sectors and on the people".

"There is a real struggle, a struggle that is getting more serious," Salih said. "This struggle is not a sectarian struggle in the acknowledged sense of the word. It is a power struggle between extremists and moderates."

Salih said: "The political understandings and agreements that were reached had led to the formation of the current government. I am going to be frank and admit that these understandings have come apart and might collapse if we do not tackle the situation quickly."

"We currently need an alliance among the moderates and the wise people from the Sunnis, Shi'is, and Kurds. We must close ranks and not allow the extremists to hijack the political process and dictate their terms on the people as they are doing now," he added.

Iraqi leaders to hold "urgent meeting" - deputy PM | Iraq Updates

DNO sees no threat to Kurdistan oil deal
19 November 2006 (LawkSalih.com)

Norwegian oil producer DNO sees no threat to its output contract in northern Iraq as the Kurdish and central governments tussle for control of oil, the company's chief executive said yesterday.

"Nobody in central government has told us they are concerned about the legality of these contracts," Helge Eide told reporters in London.

DNO was the first company to drill for oil in Iraq after the US-led invasion in March 2003. It intends to start output in the country's north in the first quarter next year under a production-sharing agreement it signed with the Kurdish regional government (KRG), Reuters reported.

But Iraqi Oil Minister Hussain Shahristani has insisted on central control of oil and says he wants to review deals the Kurds have signed with foreign oil companies, including DNO.

DNO has discussed the production agreements with Iraqi government officials and has not been informed of any objections to the contracts, Eide said.

"We have had several meetings with people from central government on these issues and there has been no communication back to us of any problems," he said.

Like many other oil companies eyeing potentially lucrative future production deals, DNO has a deal with central government to train oil ministry personnel and share technology, Eide said.

The KRG has offered to share its oil revenue with Baghdad, he said, and he expected the two to come to some agreement.

The main sticking point for a policy committee drawing up a draft oil law for Iraq is whether development contracts would be signed at a regional or national level.

The issue is critical to whether more power over resources will go to the Kurds and the majority Shi'ites, who populate the oil-rich south. Minority Sunni Arabs fear regional devolution will leave them with nothing.

Exports of DNO oil from its 50,000 barrels-per-day Tawke field in northern Iraq will be pumped through the northern export pipeline to Turkey.

But to use the pipeline, KRG will have to come to an agreement on transit fees with central government.

Eide said that he was confident KRG would strike a deal.

But there is no readily available alternative export route, so if the deal is not struck DNO would have to put back the start-up date.

"We have to rely on KRG to ensure this is in place," he said. "According to our understanding they are making good progress."

DNO will build a 50-kilometre pipeline from Tawke to connect to the northern pipeline to export the oil. The connection will be far to the north of the sections of the line that have suffered repeated sabotage, Eide said.

The northern pipeline has been mostly unusable for exports from the Kirkuk oilfields to Turkey due to sabotage attacks since the invasion.

DNO sees no threat to Kurdistan oil deal | Iraq Updates

Oil prepares plan to build refineries and new production units
19 November 2006 (Al-Sabaah)

Ministry of Oil prepared a plan to refer many of building refineries and production units to international companies beginning at start of next year, an authorized source at the Ministry said.

He stressed that Ministry prepared a plan to invest much of oil fields which contribute in rising of Iraqi crude oil production and he showed that developing these fields would continuo to five years.

Oil prepares plan to build refineries and new production units | Iraq Updates

Well they got 6 weeks to get their shiite together!

Originally Posted by webinvestor

I'm not trying to argue. I'm not being negative. I'm ready for a bashing.

To me "raising the rate" is well, raising the rate. It could be raising a few points or it could be raising it 1450 points... and raising it 1450 points would be a reval, not just a "raise" up. JMHO.

Again, i'm not being negative here. I'm just giving my opinion on what they might have meant when they said that.

Also, in the article posted above they mention an "improved exchange rate". Pretty vague.

Having said all this i think it's some of the other statemnts made that are more important in the overall picture. The CBI want to reduce inflation, prevent "dollarization" and "improve the purchasing power". Now, a small improvment in the exchange rate will not do those 3 things. A RV will.

Webinvestor, at this point any positive change in the value of the Dinar is good. All we have to do is sit back and enjoy this ride...do you agree.

Iraq working on alternate pipeline project to Turkey
Ankara, 19 November 2006 (Reuters)

Iraq's oil minister said on Friday his government was working on an alternative oil pipe-line project with Turkey as the Kirkuk-Yumurtalik pipeline has been rendered largely unusable by sabotage attacks.

"An alternative pipeline project has been launch-ed," Oil Minister Hussain Al Shahristani told reporters during a visit to Ankara.

The Turkish section of the existing pipeline will remain the same. The changes will only affect the Iraqi side.

Sabotage attacks have often interrupted the flow of crude through the pipeline since the US-led invasion of Iraq in March 2003.

Iraq relies solely on its main southern Basra oil terminal for exports when the northern pipeline is out of use.

Al Shahristani said the Iraqi government was doing its best in very difficult conditions to protect its pipelines.

He said Iraq could utilise only eight per cent of its oil reserves and said the Iraqi government sought more cooperation with Turkey on oil exploration.

Turkish Foreign Minister Kursad Tuzmen said Turkey expected the Iraqi government to resume operating a second line of the Kirkuk-Yumurtalik pipe-line system that was damaged during the war.

Iraq working on alternate pipeline project to Turkey | Iraq Updates

Iran allocates 1bn dollars to western provinces to help reconstruct Iraq
Tehran, 19 November 2006 (BBC Monitoring)

The government has allocated one billion dollars to the five western Iran provinces bordering Iraq, to join the reconstruction process of this war-torn neighbour.

Iran's Interior Ministry announced that the government has allocated the fund to the provinces of Kermanshah, Ilam, Kordestan, Khuzestan and West Azarbayjan to be used in the projects aimed at reconstruction of Iraq, the Persian service of ISNA reported on Sunday [19 November].

At present, each province's share of the sum is set at 200m dollars, noted an official with the ministry adding that, however, based on the regions' activities the figure will be increased.

He further commented that the related provincial officials would be able to participate in the neighbouring nation's reconstruction efforts by employing expert and able contractors.

The funds have been provided from the country's Oil Stabilization Fund (OSF).

Iran allocates 1bn dollars to western provinces to help reconstruct Iraq | Iraq Updates

Iraq's debts vanish
19/11/2006

International Monetary Fund previously approved on 23 / 12 / 2005 the "Support Arrangements" to cover the stage until 2006. Such arrangements will speed up the extinguishing of approximately (130) billion dollars of the total debt accumulated upon Iraq during the era of the former regime.

Members of Paris Club

On the 21 / 11 / 2004 Iraq negotiated a preliminary agreement with the Eighteen countries that make up (the Paris Club) for an immediate write-off rates at 30% of Iraq's debts which amount to about 50 billion dollars credited to the Member States (the United States of America wrote off all its debt upon Iraq which is nearly four billion dollars in January 2004).

As for writing off the second installment of Iraq's debts to Paris Club countries, which are equivalent to 30% of the original debt, Iraq has signed the Convention of the (Support Arrangements) with the International Monetary Fund in the 23 / 11 / 2005 to implement it.

Entering these arrangements with the IMF, the debt will be reduced by additional (12) billion dollars to the Paris Club, followed by the elimination of the remaining debt of (8) billion dollars automatically, in case Iraq succeeds in implementing the (Support Arrangements) convention with the IMF in 2008.

The Gulf Cooperation Council

A number of the (Gulf Cooperation Council) States called upon Iraq to payback amounts that exceed (50) billion dollars offered by those States as financial assistance to the former regime during the Iraqi-Iranian war from 1980 to 1988. Iraq has received assurances from those States to settle the debts under conditions similar to those, at the very least, agreed by Iraq with the Paris Club countries.

In spite of the tireless efforts made by the Minister of Finance, Professor Baqir Jabr Azzubaidi, to exempt Iraq from all its debt to Saudi Arabia, on bases Arab brotherhood and common destiny, the results were not satisfying... We hope that the Saudi side understands of the current circumstances in Iraq and that the government of national unity is not responsible for this debt in the first place. However, (40) billion dollars, or more, will be written off in case of signing bilateral agreements with the States of the Gulf Cooperation Council during the coming year 2007.

States, outside the framework of (the Paris Club)

Iraq is in debt of (20) billion dollars for countries outside the scope of (the Paris Club). In this regard, Iraq had signed an agreement with (Hungary, Romania, South Africa, Czech Republic, Slovakia, Malta), which agreed to cancel all debts by100%, according to personal efforts by Mr. Baker Jabr Al-Zubaydi, Minister of Finance, and talks are still continuing with other countries with great success. An agreement will soon be signed with (Bulgaria), from which Professor Aziz Jaafar Hassan, Personal Adviser to the Minister of Finance, had returned a few days ago to prepare the conditions for the signing of the bilateral agreement for the settlement of Iraq's debts with Bulgaria.

Commercial debts

More than (600) business entity claims for the payment of debts owed to Iraq during the period of the previous regime totaling more than 22 billion dollars. Iraq has paid these debts on basis similar to the Paris Club agreement and has completed more than (4) commercial offers cash rate (25 / 10) cents for every dollar, reducing the total debt by more than (4) billion dollars; in addition to offering the senior creditors, whose debts are more than (35) million dollars, the purchase of bonds at a total amount of (14) billion dollars. These bonds were issued roughly equivalent to (3, 225) billion dollars and is expected to reduce Iraq's debt, which amounts to (130) billion $,to about (50) billion dollars which will be reduced to less than (30) billion dollars in case Iraq succeeds in implementing the (Support Arrangements) signed with the International Monetary Fund by 2008.

The Minister of Finance, Baqer Jabr Al-Zubaydi, said that the Iraqi government has inherited major challenges, (3) years ago, including the debt burdens which amount to 130 billion dollars; however, many of those challenges will be passed.

The Minister of Finance and his team were able to reschedule Iraq's debts, which most of them will be resolved by 2007.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2604

I expected this from the Saudi.
First results then we will write the debt off.

Ministry of Oil: Establishing (Maysan oil) company and a tendency for gas investment in Western Desert
19/11/2006

A media spokesman for the Ministry of Oil, Assem Jihad, declared that the ministry will establish (Maysan oil) Company, similar to the South Oil Company in Basra, due to the large oil fields possessed by the province.

Jihad added that the formation of the company came within the Ministry's desire for development and oil investment. The company would be rallying to the sectors of the Ministry of Oil under its full supervision. Jihad stressed that the ministry is considering the foundation of other companies in provinces, which possesses oil fields.

The media spokesman expected that the Ministry will establish a similar company in the province of Kirkuk, for possessing oil fields, as well as in Wasit governorate, noting that there is a great tendency to invest natural gas in the province of Western province which possesses huge quantities of non-invested gas in the Western Desert, according to studies in the ministry. In Amman, the Jordanian Minister of Transport, Eng. Saud Al-Nusseirat, denied news yesterday about starting to provide his country with Iraqi oil at preferential prices up to 18 dollars per barrel.

Al-Nusseirat commented on the news that the fleet tank for the transport of Iraqi oil is ready for action "for about two months, but the technical aspects of the Iraqi side are still hindering the process of the actual transportation".

He expressed his hope that the amounts of oil transported to Jordan will be up to 30 thousand barrels per day. One of the news agencies reported yesterday that the Iraqi oil minister, Hussein Shahrastani, said: "Iraq started supplying Jordan with ten thousand barrels of crude oil at preferential prices up to 18 dollars.

" At the same time, secretary general of the Ministry of Energy and Mineral Resources, Eng. Khaldoun Kutaishat, expected "that the Jordanian side completed all the procedures for transfer through the Jordanian-Iraqi Company for Land Transport, which provides security for the transport of oil through its relations in Iraq," stressing that some of the technical obstacles from the Iraqi side "are still preventing the start of the transfer".

http://www.iraqdirectory.com/DisplayNews.aspx?id=2605

Allowing the network covered by social protection received subsidies from the post offices close

Baghdad / justice decided by the Ministry of Labor and Social Affairs to allow the network covered by the social protection of those whose names appeared in the post offices transfer their names to the post offices close to the residence to facilitate the receipt of subsidy allocation. A source in the ministry of the National Iraqi News / Nina / : "The ministry decided to allow covered in the province of Baghdad distributors alphabetical seating order to post offices to transfer their names to the post offices in areas inhabited by demand from the Officer-in-Charge after receipt of the amount of the subsidy will codify the beneficiary of this." He added that "this decision was made taking into account the security situation experienced by all areas of the capital, thus endangering the lives of the beneficiary to the hardship and danger of the road." He pointed out : "It was a defining every two months to take over the amount of the subsidy, rather than three months." And : "The decision was taken due to non-receipt of a lot of the people of the amounts allocated to them and returning them by the banks to the network in the Waziriyah district due to the security situation.

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Treasury Minister arrived Basra ... Britain offers aid worth 100 million pounds

Basra / justice minister announced the British Exchequer Gordon Brown yesterday as his new financial assistance to Iraq worth 100 million pounds sterling, at least for the reconstruction of the country. Brown has announced for this assistance upon arrival in the city of Basra in southern Iraq from Kuwait on a surprise visit, unannounced one-day is the first for him and for British soldiers losing workers in southern Iraq. According to a spokesman for the Treasury Department yesterday, Brown met during the visit, Deputy Prime Minister Barham Al he insisted, as well as a number of senior British officers to listen to them on the latest developments of the situation in Iraq. The spokesman told reporters that the value of the new financial aid announced by the British minister will be directed to the reconstruction of the country over the next three years. He pointed out that Britain is Agan Leah providing assistance totaling 544 million pounds by the end of this year as part of the donors. quoted in a statement issued yesterday said Brown was brought to Iraq to express my appreciation for the important role played by our forces there, as well as to meet with senior Iraqi ministers to discuss the challenges that we faced. " He said, "We are committed to supporting the Iraqis to build a democratic country consolidates security and prosperity of its people and play its full role in the region and the global economy. " He added : "I saw the high spirits displayed by members of our armed forces in Iraq and I want to express my full appreciation for the work they are doing under very difficult circumstances often." He pointed the the statement noted that Brown told Deputy Prime Minister Barham Saleh said that Britain would provide financial support to the new value of 100 million pounds over the next three years to help support the economic regeneration and providing new jobs and the continued security to ensure the prosperity throughout most areas of southern Iraq.

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