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

Iraq, reversing course, to keep U.N. oil watchdog | Iraq Updates

UNITED NATIONS, 23 November 2006 (Reuters)

Iraq has decided to keep alive for another year a U.N. watchdog to monitor the use of its oil wealth, reversing course just weeks after announcing the agency would be abolished, officials said on Wednesday.

The decision to resuscitate the International Advisory and Monitoring Board was made at the request of governments donating money to Iraqi reconstruction, said Baghdad's deputy U.N. ambassador, Feisal Amin al-Istrabadi.

"I am very well aware an agreement is in place to replace it. But the IAMB has certainly played a useful role up until now, and some of the donor countries think it could still play a useful role," al-Istrabadi told Reuters.
Iraqi officials had informed the IAMB just three weeks ago that it would be abolished as of the end of this year and replaced with an Iraqi monitoring body to be called the Committee of Financial Experts.
IAMB members were therefore astonished to see a draft U.N. Security Council resolution circulated this week extending the board's life through December 31, 2007.

They concluded that the provision, part of a U.S.-drafted text extending the mandate of the U.S.-led multinational force in Iraq until the end of 2007, had been included in error.
"There was a slip by the Iraqis," said one board member, speaking on condition of anonymity. "We clearly would prefer to work with a successor body."

SABOTAGE AND CORRUPTION
But it was not a mistake, U.S. and Iraqi officials said. A vote on the resolution is expected next week.
Oil is Iraq's main source of hard currency needed to rebuild after years of war, and the energy sector is struggling to recover from years of mismanagement and U.N. sanctions that were lifted after the U.S.-led 2003 invasion.

The IAMB was created by the Security Council in 2003 to watch over the stewardship of Iraq's natural resources while Baghdad was under U.S. administration.

The new government then allowed it to remain in place through the end of 2006, to reassure world governments it was managing its vast oil reserves wisely and for the benefit of the Iraqi people.
Iraq's oil sector has been plagued by sabotage and poor maintenance.
The IAMB made clear it also suffers from mismanagement that has left the door open to smuggling and corruption.

The board reported in August, based on an outside audit, that Iraq's systems for tracking oil sales and the use of the proceeds from those sales suffered from poor management, flawed accounting systems and weak internal controls.

The board has also criticized Iraqi delays in installing equipment to meter oil production, so that production and sales figures can be reconciled to guard against smuggling.

Corruption in the energy industry has cost Iraq hundreds of millions of dollars, the general inspector of the Ministry of Oil has previously estimated.

Genel Enerji and Addax Petroleum Announce the Execution of a Revised Production Sharing Agreement in Respect of the Taq Taq field | Iraq Updates

VANCOUVER, 23 November 2006 (Addax Petroleum)

Genel Enerji A.S. ("Genel") - which is part of Cukurova Group - and Addax Petroleum Corporation ("Addax Petroleum") (TSX:AXC - News) today announced the execution of a Revised Production Sharing Agreement with the Kurdistan Regional Government ("KRG") in respect of the Taq Taq Field. Genel and Addax Petroleum also announced that at the same time Addax Petroleum's wholly owned subsidiary had acquired an additional 15% Participating Interest from Genel.

Commenting, Mehmet Sepil, Chief Executive Officer of Genel Enerji said: "This opportunity for Genel to expand its activities and investment portfolio in further exploration fields will widen the perspective and objectives of Genel. Within this new concept, Genel, owned by Cukurova Group is growing to be a worldwide exploration and production company performing also in high risk projects. Genel is also planning to invest the consideration in the mid stream activities in addition to the exploration and production for the benefit of the Kurdistan Region and the people of Iraq."
Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "The execution of the Revised Production Sharing Agreement with Addax increasing its equity participation in Taq Taq represents a major step in confirming the legal basis for our development of the Taq Taq Field. Together with the undertaking of additional exploration in this area to the mutual benefit of the Kurdistan Regional Government, the people of Iraq, Genel and Addax Petroleum, our increased investment underscores Addax Petroleum's commitment to the Taq Taq project."
The original Taq Taq Production Sharing Agreement was entered into between Genel and the KRG on 20th January 2004. In July 2005 Addax Petroleum's wholly owned subsidiary, Addax Petroleum International Limited ("Addax International") agreed to farm in to the original PSA and agreed to acquire a 30% Participating Interest. The Revised Production Sharing Agreement extends the geographic scope of the original PSA to include further exploration acreage which includes the Kewa Chirmila prospect and gives the KRG the right to require that at a future date a government nominated entity is assigned, in the case of Taq Taq, a 20% Participating Interest, and, in the case of other developments within the Revised Production Sharing Agreement area, a 25% Participating Interest.
The Revised Production Sharing Agreement reflects i) Genel and Addax Petroleum as parties to the PSA; ii) the acquisition by Addax Petroleum from Genel of an additional 15% participating interest; iii) government back-in rights and revised fiscal terms to maintain the risk/reward balance for Addax Petroleum and Genel; and iv) expansion of the PSA acreage to include the Kewa Chirmila prospect. The revised Participating Interests prior to the exercise of any Government back in rights are,
- Genel 55%,
- Addax International 45%.

Addax Petroleum will meet the cost of the acquisition within its existing financing arrangements.
About Genel and Addax Petroleum
Genel Enerji A.S. is a Turkish registered company and owned by the Turkish Cukurova Group. The Cukurova Group is among Turkey's largest industrial and commercial conglomerates with numerous investments ranging from automotive, telecommunications, media, textile, energy, transportation and information technology services. Many of Cukurova Holding and associated holding companies are leaders in their respective business lines. The amount of total assets of the Cukurova Holding Group in the year of 2005 was approximately 11 billion US dollars. Within the group, Turkcell is the leading GSM operator of Turkey (with 31 million subscribers) and has been listed on the New York Stock Exchange (NYSE) and on the Istanbul Stock Exchange (IMKB). Turkcell was the first Turkish company to be listed on NYSE. BMC is the largest fully integrated vehicle manufacturer. The Geden Lines is a leading shipping company with a modern fleet in the maritime industry. Digiturk, the only digital broadcasting company in Turkey, is giving television, radio and interactive channel broadcasting services. The Cukurova Group currently has 139 companies and of these, 19 are foreign investments and 13 are joint ventures based in Turkey. A total of 26,500 people are employed in Cukurova companies in Turkey and abroad. Further information about Genel Enerji is available at Genel or at ÇUKUROVA HOLDING
Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on Africa and the Middle East. Addax Petroleum is one of the largest independent oil producers in West Africa and has increased its crude oil production from an average of 8,800 barrels per day for 1998 to an average of approximately 91,500 barrels per day for the third quarter of 2006. Further information about Addax Petroleum is available at Addax Petroleum | Home or at Welcome to the SEDAR Web Site / Bienvenue au Site Web SEDAR
Legal Notice - Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as "anticipate", "believe", "intend", "expect", "plan", "estimate", "budget", "outlook" or other similar wording. Forward-looking information includes, but is not limited to, reference to business strategy and goals, future capital and other expenditures, reserves and resources estimates, drilling plans, construction and repair activities, the submission of development plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, royalties payable, financing and capital activities, contingent liabilities, and environmental matters. By its very nature, such forward-looking information requires Addax Petroleum to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such factors include, but are not limited to: imprecision of reserves and resources estimates, ultimate recovery of reserves, prices of oil and natural gas, general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil prices; refining and marketing margins; the ability to produce and transport crude oil and natural gas to markets; the effects of weather and climate conditions; the results of exploration and development drilling and related activities; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations, both domestic and international; international political events; expected rates of return; and other factors, many of which are beyond the control of Addax Petroleum. More specifically, production may be affected by such factors as exploration success, start-up timing and success, facility reliability, reservoir performance and natural decline rates, water handling, and drilling progress. Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability, and seismic costs. These factors are discussed in greater detail in filings made by Addax Petroleum with the Canadian provincial securities commissions.

Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, Addax Petroleum does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

UNITED NATIONS, 23 November 2006 (Reuters)

Iraq has decided to keep alive for another year a U.N. watchdog to monitor the use of its oil wealth, reversing course just weeks after announcing the agency would be abolished, officials said on Wednesday.


So, we're in agreement that this won't hinder any reval? If they are an oversight council then I think it's a good thing, so they can make sure all Iraqi's recieve their fair share.

Iraq's debts vanish

20 November 2006 (Iraq Directory)
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.

Originally Posted by kiko
Demand for the dollar registered its lowest level in 2006
Baghdad - (Voices of Iraq)

Record demand for the dollar today, Thursday, its lowest level this year. It also has three dinars to the dollar value amid expectations of continued decline in medicine for the American currency, with the direction of the Iraqi Central to raise the value of the Iraqi dinar at the expense of the dollar.

The Central Bank said in a statement that demand for the dollar today at the conclusion of the meetings this week, the volume of the requested five million and 330 thousand dollars, compared to 11 million and 450 thousand dollars on Wednesday.

Distributed demand for the dollar by one million and 290 thousand dollars in cash and four million and 40 thousand dollars in the form of remittances outside the bank full coverage of exchange rate amounted to 1441 dinars, down 3 dinars on the price yesterday.

Did not make any of the six banks participating in the auction, the lowest number of banks participate in one meeting this year, any offers to sell the dollar.

He expected to Yasiri, owner of the banking and one dealing with the auction to continue the demand for the dollar remained low during the coming period due to the continuation of the Central Bank in reducing the price of the dollar that is bought today reduced its price tomorrow.

He said in a statement to the News Agency (Voices of Iraq) Independent that "requests for the dollar will remain low in wait for the exchange rate that the Central Bank wants to get to and not known until now."

Originally Posted by neno

Statement in Red below in kiko's post.



Proof right here in the Auction. Dramatic reduction today at (US $) 5.290.000 in red:

So what the banks are essentially saying is that they have slowed down there dollar demand to see where the CBI is going with the dinar exchange rate. In other words they don't want to sell too much until they see that they may get a much better price for the dinar that they sell back to the CBI. And with that in mind they said they were not sure until now. So does that mean that the CBI let them in on the little secret as to what there end price goal is exactly!?!? What are your thoughts on this?
CLM

Originally Posted by CLM

So what the banks are essentially saying is that they have slowed down there dollar demand to see where the CBI is going with the dinar exchange rate. In other words they don't want to sell too much until they see that they may get a much better price for the dinar that they sell back to the CBI. And with that in mind they said they were not sure until now. So does that mean that the CBI let them in on the little secret as to what there end price goal is exactly!?!? What are your thoughts on this?
CLM

According to the Auction Site and the Article. Me not being a the "Expert", but I can "Read and Compare" notes. So with that said, I would agree with your acknowledgement of the "Little Secert". But who really knows the behind close doors movement. We only get what we can put together. That is the Game of this Investment. Their Stradigy, our ellusion, sooner are later becomes reallity. Good luck & Happy ThanksGiving.

Originally Posted by CharmedPiper

What do you think about my previous post about the numbers being off from each other....I took it as the CBI was ready to pull in the amount posted but the banks could only produce the lesser amount. Though a subtle change I think it might have significance. Anybody's thoughts.

The banks arent even bothering anymore.... theyre waiting for the RV too!
VROOM VROOM! .... oh... wrong rv...

Iraq-Currency
Posted by: nadioshka on Thursday, November 23, 2006 - 01:05 PM
Iraq-Currency Dollar demand hit new low in 2006

By Dergham Mohammed AliBaghdad, Nov 23, (VOI) – Buying demand for U.S. dollars hit a new low for 2006 on Thursday and the dollar rate was down three dinars amid expectations of lower demand for the U.S. currency as the Iraqi central bank moves towards raising the dinar rate.The Cenbank said in its daily statement the dollar demand reached $5.330 million compared to $11.450 million on Wednesday.The central bank covered all bids received from local banks which were $1.290 million in cash and $4.40 million in foreign transfers.The exchange rate was at 1,441 dinars per dollar, three dinars down from the previous session.Only six banks participated in Thursday’s session, the lowest number in 2006, and none of them offered to sell dollars.The Iraqi central bank runs a daily auction on Sunday through Thursday.Ali al-Yassery, owner of an exchange office, expected demand to stay low for some time as the central bank keeps pushing the dollar rate lower.“Dollar demand will stay low in anticipation of the rate the central bank is looking for which is not clear yet,” Yassery told the independent news agency Voices of Iraq (VOI).

WoooooooooooooooT

Originally Posted by CharmedPiper

Cabinet decisions / press statement

(Voice of Iraq) - 11-23-2006
This issue was sent to a friend

Press statement

Thursday, 23 / 11 / 2006

The official spokesman of the Iraqi government to Dr. Skinner that the Cabinet had decided at its regular sixth session, held today, Thursday, dated 23 / 11 / 2006 including :

1. Approval of the formation of a committee headed by Minister of Communications and Minister of Finance and Planning and a representative of the prime minister, to determine the best formula for the licensing of mobile phone companies in Iraq through public bidding.

2. The cabinet agreed to support and document the International Covenant and the follow-up work to mobilize international support to ensure the success of the initiative and launch the Covenant in order to serve the national vision in the Iraqi political and economic reform and security.
3. Approval of the draft law to combat the smuggling of oil derivatives.

4. Approval of the re-Almerqanh their chains all students for the academic year 2005 / 2006 for the preliminary studies and higher (mornings and evenings). the seminar seats except Almerqanh their chains because of fraud and disciplinary sanctions.

5. Amending the law on retirement and social security for workers No. 39 of 1071.

6. Amend the payment of social security contributions No. 31 of 1978.

7. Approval of the increase in the wages of local employees working in the Iraqi missions abroad.

8. Approval of the draft tax law reconstructing Iraq extension of the force.

9. The approval of the draft Law on the Ministry of Youth and Sports to make connection with the observation of the Iraqi National Olympic Committee and the Ministry of Youth Sports at Enactment of the Committee.

10. Approval of the transfer of Iraqi use of school in London by the Ministry of Education to the Ministry of Foreign Affairs. and the Ministry of Finance to allocate an appropriate amount for the purchase of a building for use Iraqi teacher in London with furnishing.

11. The formation of a committee headed by Minister of Agriculture and the membership of a representative of the Finance and the prime minister, to study the damage in the rice crop due to lightning and frost in the Ghammas, in the province of Diwaniyah.

12. The extension of service of staff for a period of one year and for one time.

HOW ABOUT A BIG OLE' WOOOOOOOOOOOOOOT FOR PROGRESS FINALLY!!!!

WOOOOOOOOOOOOOOOOOOOOOOT!!!!!!!

Originally Posted by CharmedPiper

Iraq-Currency
Posted by: nadioshka on Thursday, November 23, 2006 - 01:05 PM
Iraq-Currency Dollar demand hit new low in 2006

By Dergham Mohammed AliBaghdad, Nov 23, (VOI) – Buying demand for U.S. dollars hit a new low for 2006 on Thursday and the dollar rate was down three dinars amid expectations of lower demand for the U.S. currency as the Iraqi central bank moves towards raising the dinar rate.The Cenbank said in its daily statement the dollar demand reached $5.330 million compared to $11.450 million on Wednesday.The central bank covered all bids received from local banks which were $1.290 million in cash and $4.40 million in foreign transfers.The exchange rate was at 1,441 dinars per dollar, three dinars down from the previous session.Only six banks participated in Thursday’s session, the lowest number in 2006, and none of them offered to sell dollars.The Iraqi central bank runs a daily auction on Sunday through Thursday.Ali al-Yassery, owner of an exchange office, expected demand to stay low for some time as the central bank keeps pushing the dollar rate lower.“Dollar demand will stay low in anticipation of the rate the central bank is looking for which is not clear yet,” Yassery told the independent news agency Voices of Iraq (VOI).

WoooooooooooooooT

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