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

Iraq's Draft Hydrocarbon Law Recommends PSAs
Dow Jones Newswires
Wednesday, December 06, 2006

AMMAN, Dec 06, 2006 (Dow Jones Newswires)
Iraq's first postwar draft hydrocarbon law recommends the government sign production sharing agreements and other service and buyback contracts to upgrade the country's war-ravaged oil industry.

The draft, a copy of which has been obtained by Dow Jones Newswires, states the Oil Ministry should set up a committee consisting of highly qualified experts to speed up the process of issuing tenders and signing contracts with international oil companies to develop Iraq's untapped oil fields.

The draft law states all decisions concerning Iraq's oil and gas exploration, production and transportation should be handled by the federal government in Baghdad, which is likely to anger Kurdish officials in northern Iraq.

The law is necessary for international companies to begin investment in Iraq's oil sector, which needs up to $20 billion to raise crude oil production to 3 million barrels a day from below 2 million b/d at present.

The new law could trigger the start of massive development of the country's oil fields, home to the world's largest reserves after Saudi Arabia and Iran.

"It is possible that the contractual formula is based on service contract, buyback contract or production sharing contract," the draft law states.

"These contractual formulas should be adjusted in a way that should serve the interests of the Republic of Iraq," the draft said.

The draft, which is still under debate by Iraqi officials, said "qualified Iraqi or non-Iraqi oil companies or individuals who possess suitable financial resources" should be allowed to bid for Iraq's oil contracts to carry out exploration or to develop oil fields.

The draft recommends 15 to 20 year contracts to develop Iraqi oil fields, including production sharing contracts. It states the contracts could be extended by five years if the government found it necessary in order to achieve better technical and financial returns.

The draft law also calls for the formation of an Iraqi National Oil Company to handle the country's oil production, exports and exploration.

"The cabinet should submit to the council of deputies (parliament) a draft resolution together with this oil law...that would establish the Iraqi National Oil Company. It should be owned by the government of Iraq," the draft states.

The law also calls for changes to the oil ministry's structure "to a manner that would enable the ministry to shoulder its new responsibilities stated by the law."

An Iraqi oil ministry official told Dow Jones Newswires Wednesday the new law proposes allowing - for the first time - local and international companies to carry out oil exploration in Iraq.

During the rule of ousted president Saddam Hussein exploration activities used to be carried out by the government only, he said.

The draft law is being debated by senior government officials before it is submitted to the parliament for final approval, the official added.

He named the officials discussing the final draft of the law as Deputy Prime Minister and head of the cabinet energy and oil committee Barham Saleh, Oil Minister Hussein al-Shahristani and the prime minister's adviser and former oil minister Thamer al-Ghadhban.

He said some of the articles of the law could be changed either by government officials or lawmakers.

It isn't known yet when exactly the law would be approved by the parliament. Oil Minister Shahristani had said it should be ready by the end of this year, but differences between Baghdad and the Kurdistan Regional Government, or KRG, on who should handle oil operations in Kurdistan could delay acceptance, oil analysts said Wednesday.

The Kurds are pressing for control of oil resources in their territories and a significant share of oil revenue, which has provoked anger in Baghdad.

"The powers of taking decisions on oil and gas exploration, development, production and transportation should be handled on behalf of the Iraqi people by the federal Iraqi government," the draft law stated.

The KRG - which estimates its resources total 45 billion barrels of oil equivalent - has already drafted its own hydrocarbon law that officials there say would trump Baghdad's version should the KRG not win at least the measure of authority over its resources it's seeking.

The Kurdish authority has already signed agreements with several small oil and gas companies, including U.S.-based Calibre Energy Inc. (CBRE), Norway's DetNorske Oljeselskap (DNO.OS) and Turkey's Petoil and has signed memoranda of understanding with Australia's Woodside Petroleum Ltd. (WPL.AU), Canada's Heritage Oil Corp. (HOC.T) and the U.K.'s Sterling Energy PLC (SEY.LN).

But oil officials in Baghdad have declared these agreements null and void and, without the hydrocarbon law, many oil majors have been reluctant to make deals, despite huge prospects and relative security in North Iraq.

However, contracts the Oil Ministry in Baghdad has already signed with international companies will remain valid, although they will need to be reviewed, the draft law stated. This will affect contracts to develop the Khormala Dome, Hemrin and Subba/Luhais medium-sized oil fields.

The draft law didn't spell out clearly if this article also covers contracts signed during Saddam Hussein's regime such as Lukoil's (LKOH.RS) deal to develop the giant West Qurna-2 oil field.

RIGZONE - Iraq's Draft Hydrocarbon Law Recommends PSAs


No way that there will be a delay!

Central Government and the Kurds will be discussing it untill they have an agreement within the next 2 weeks.

This thing must pass or nobody will profit from the oil and donor countries will be pissed off!!

Originally Posted by stevewest

I am brand new to this forum, can somebody tell me what "woot" means?

Thanks,
Steve

Classic! I love it!!
I'm sure you'll get it after reading a few pages.
P.S. I'm not making fun of you mate.

For the Brits, some info on reval/exchange, please add your thoughts.

http://www.rolclub.com/iraqi-dinar-d...tml#post146553

Originally Posted by MrsCK

Per the rolclub dictionary:
Woot - 1. Awesome
2. Holy S***
3. Oh Baby
4. He*ll Yeah
5. That's what I'm talking about
6. Bring it ON RV
7. So Cool

Plus WELCOME to the ROLCLUB!!!
As a new member Please learn the following also:
FARM JIG
KITTY WIGGLE
And our newest one: Sheep Doogie? or something like that. The meaning of these are the same as 'Woot"

Hope this helps:
Chris

It's this kind of support that really sets RolClub apart - Awesome MrsCK!

(Now if you'll excuse me while I do the Farm Jig and Woot at the same time.)

Originally Posted by Precocious

Here are some interesting facts:

Source www.CIA.gov:
USA GDP 2005 12 Trillion Dollars
Iraq GDP 2005 94 Billion Dollars (in US money)

US economy is 20+ times larger than Iraq

Source Federal Reserve:
US cold cash in circulation 246 Billion Dollars M1
Liquid dollars to spend 825 Billion Dollars M2
All moneys combined 3.3 Trillion Dollars M3

Source Roll Club:
Iraqi Dinar in circulation 9 trillion
Total Dinar printed 14 trillion
All moneys including US money unknown

If the dinar were revalued to 1 US dollar, Iraq would be able to purchase ALL the products and services produced by the largest economy in the world the US economy in one swoop. Another interesting FACT, the USA currently produces 8 million barrels of oil per day almost three times the amount of Iraq.

Some additional mathematics:
Iraq oil production 3,000,000 barrels day X $60 per barrel equals $180 million per day. Times 365 days a year equals 65 billion per year. They just edged out the sales at Microsoft for the year. I'm sure Bill Gates is very upset.

Can we draw some logical conclusions from this data that would indicate the actual value of a Dinar?

IS this YOUR numbers you reasearched and came up with or is this DaveDinar "naysayer" on IIFinfo you stole or are you him in trying to provoke your ideas over here. wanker

Originally Posted by Lunar

The investment law, the Iraqi Oil completed its final stages
The statement UAE
07 / 12 / 2006



He said Iraqi Prime Minister Nuri al-Maliki that his government had completed the preparation of the law to encourage foreign investment in the oil and gas industry the country and submitted to Parliament for ratification. But members of the Committee, which is working to prepare the law were more cautious.

They pointed out that they have most of the work but need another week or ten days to complete.

There are billions of dollars in foreign investments to exploit oil reserves, the third largest in the world deferred pending the adoption of an appropriate legal framework.

This puts us around the 15th ( more or less) AGAIN!!

Originally Posted by Adster

Icarus is saying his translator is saying this means very large/huge......Aemarih

It should be noted that the coming year will witness a revolution Aemarih (very large/huge), and will contribute to reduce unemployment and enhance security and stability in Iraq.
Translated version of MENAFN - Middle East North Africa . Financial Network

Do I hear a cha ching/woooooooooot?!

ICARUS IS NO BSer

Originally Posted by Alphamystic

It's this kind of support that really sets RolClub apart - Awesome MrsCK!

(Now if you'll excuse me while I do the Farm Jig and Woot at the same time.)

I think we need a theme song for this group;

Sing this to the music of PEG OF MY HEART:


Dinar of my Heart, I love you
We'll never part, I love you

Dear little Dinar, Sweet little Dinar

Sweeter than the U. S. Dollar
It's the Peg we're waiting to Hollar

Dinar of my Heart, Give us a Woot
For we love you, more than a Hoot

It's in the Cayman's we want to party
So Dinar of my Heart, Let you Peg be Hearty!!

Originally Posted by Alphamystic

It's this kind of support that really sets RolClub apart - Awesome MrsCK!

(Now if you'll excuse me while I do the Farm Jig and Woot at the same time.)

With as many dancing banana's as we have on here this looks like a BANANA PARTY!

Originally Posted by boxiedoxie

With as many dancing banana's as we have on here this looks like a BANANA PARTY!

Ummm, that's a whole other kinda party....