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

UPDATE:Iraq Kurdish PM: Oil Law Deal Reached With Baghdad



12-21-2006 7:34 AM EST

(Updates an item timed at 1039 GMT with background.)

The prime minister of the Kurdistan Regional Government in northern Iraq, Nechirvan Barzani, said he has reached an agreement with the federal government on the control of oil in the region, a major source of friction between the Kurds and Baghdad and a stumbling block that was delaying the issuance of a crucial hydrocarbon law.

Barzani also said that the Iraqi federal government would discuss in a few days a final draft of an Iraqi hydrocarbon law before sending it to the parliament in Baghdad for approval.

A hydrocarbon law is crucial for Iraq as a basis for international oil companies to begin discussions on investing in the country's under-exploited and run-down hydrocarbon sector and to generate much-needed reconstruction revenues for the country's coffers.

"After long discussions we have reached positive and good results on the issue of oil," Barzani told reporters in the Kurdish city of Erbil Wednesday night after concluding several days of talks in Baghdad.

The Kurds are pressing for control of oil resources in their northern territories and a significant share of oil revenue, which has provoked anger in Baghdad. Officials in the capital say oil resources across Iraq should be controlled by the federal government in Baghdad.

The issue of who should sign oil contracts with international companies in the Kurdistan region was the main sticking point preventing the federal hydrocarbon law from being accepted.

A preliminary draft copy of the law, obtained by Dow Jones Newswires earlier this month, stated that all oil contracts with international companies should be handled by the Iraqi Oil Ministry in Baghdad.

According to the new agreement reached between the Kurds and Baghdad, negotiations with international companies planning to invest in the Kurdistan region would be carried out by local officials along with a representative from the federal government in Baghdad, Barzani said.

Before a final signature of any contract, a draft copy would be sent to Baghdad for review and if the authorities in Baghdad agree on the details, the contract would be signed in Kurdistan with the company, he said.

Barzani said the federal government in Baghdad will set up a committee of experts to review and approve oil contracts.

He said it has been agreed that oil revenues should be distributed evenly among all Iraqis whether the oil produced in the north, center and south, a point already stated by the draft law.

Iraq has huge reserves, third only after Saudi Arabia and Iran. But its oil sector needs up to $20 billion in investments to raise crude oil production to 3 million barrels a day from below 2 million b/d at present.

The sticking point over a hydrocarbon had had always been the issue of how much control the regions should be given over resources in their areas.

Although Baghdad has been displeased with the fact that the Kurds have awarded contracts to oil minnows in the mostly unexplored northern part of Iraq, they are more worried it could set a precedent, particularly in the oil-rich south, where most of the country's giant hydrocarbon structures lie.

The four main principles for the draft law currently under debate remain the issue of federal versus regional control, the sharing of oil revenues, the types of contracts that are awarded and the formation of an Iraqi National Oil Company to handle the country's oil production, exports and exploration.

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.

But without the hydrocarbon law, many of the large oil majors have been reluctant to make deals despite the huge oil prospects and relative security in northern Iraq.


As I have said my friends did confirm that this was part of their late night meetings, but it seemed to them anyway that more time was spent on discussing Art. 101.
Iraqi's are big on ceremony and tend to bring out special pen's for signing documents. They said so far, no major photo op's and no signing ceremonies. Not sure really what it means, other than they are still working out some issues.As well the two Americans and the German are now gone.


Gloribee

PS, they dont know Arabic, its just there take on the proceedings.

Press Communique' Issued from the CBI Concerning the
current Positive Signals of the General Price Level


Following World Marazi Iraqi with great price trends

In Iraq (Am'cher for inflation), which scored a broad decline in the growth rates, particularly in the month of September of this year, 2006, the (negative 13%) compared with August of the same year. And to the extent that the Bank considers Marazi Iraqi in this decline as a sign of the health of the Iraqi economy, to show its ability to contain the phenomenon inflationary and respond to trends unwanted on living standards or in the distribution of productive resources among the various uses, but it is still aware that the source of price fluctuations Ant resulting from vibrations generated by the sector offer real level of production or rates of productivity promised by changing the basis for the development of activities of price and delinquency rates in prices for the tracks and natural levels of moderation. Taking the positive developments in the energy sector, fuel and transport and communication sector has Abera, in the low rates of inflation in the month last September as the rates of decline contributed by paragraph fuel and lighting components in the index of consumer prices in Iraq about (negative 42%), while transport contributed paragraph. ( % And Communications at (negative 33 and the World Marazi Iraqi need support the economic policy of positive trends in the level of inflation and the decline through various hubs and trends, particularly in the field of energy, fuel, and the areas of fiscal policy aimed at restructuring public expenditures and contain the fiscal pressure, as well as the role of the investment policy, including the various investment opportunities and boosted economic growth in the country. While groping a monetary policy that there is optimism high in the stability of the general level of prices and the decline in inflation rates but it is aware of the importance of staying on the trends powerful hard-line support for the economic stability, as reflected in the current level of rates as well as continue the bank Marazi, Policy Rate-interest bank Marazi Iraqi Iraq to achieve its objectives current operational addressed to influence the rates of the monetary liquidity and control menaced and embodied activity u1575 ongoing auction money, bonds and auction of foreign currency. The bank will maintain Marazi Iraqi on the other tracks in its monetary policy to achieve intermediate goals for reducing inflation and contain inflationary expectations, relying on "stabilizing nominal" cash Aatar Yazzmen rate of the Iraqi dinar against the dollar and boosted the purchasing power of the Iraqi dinar to move across the tracks and cash assistance in inflation targeting. As reflected Alihalanange cash adopted by the World Marazi Iraqi Without doubt on the link between climate and means of monetary policy, both in the area of interest rates or exchange rates of hand, and stability of the general level of prices on the other hand promised the Association of tasks President underlying the Marazi Bank in the implementation of its goals to maximize the purchasing power of cash income and the strengthening of the capacities of the country coffers in a way that achieves the objectives of economic growth in the long term.

I'm not sure if everyone has seen this, and i think this is where the term yazzaman came from? But i figured i'd throw this out there even though it's from October just in case there's something in here we missed.

http://cbiraq.org/Press%20Communique'%20Issued.pdf

i bolded that part because i wonder if that's where the 13% came from recently when they mentioned the rates, maybe they meant the interest?

Rice: Iraq worth investment in U.S. aid By ANNE GEARAN, AP Diplomatic Writer
40 minutes ago



WASHINGTON - Secretary of State Condoleezza Rice told The Associated Press on Thursday that Iraq is "worth the investment" in American lives and dollars and said the U.S. can still win a conflict that has been more difficult than she expected.

In an interview at the State Department, the nation's highest-ranking black government official also said the United States is ready to elect a black president.

Rice was asked whether an additional $100 billion the Pentagon wants for the Iraq and Afghan wars might amount to throwing good money after bad in Iraq. President Bush and Congress have already provided more than $500 billion for the two conflicts and worldwide efforts against terrorism, including more than $350 billion for Iraq.

"I don't think it's a matter of money," Rice said. "Along the way there have been plenty of markers that show that this is a country that is worth the investment, because once it emerges as a country that is a stabilizing factor you will have a very different kind of Middle East."

The top U.S. diplomat made the remarks as Bush faces mounting pressure from the public and members of Congress to find a fresh course in the long-running war. More than three-and-half years after the U.S. invasion that deposed Saddam Hussein, the conflict shows no signs of nearing an end and has cost the lives of more than 2,950 American troops.

Bush conceded this week for the first time that the U.S. is not winning the conflict, though he said it is also not losing.

"I know from the point of view of not just the monetary cost but the sacrifice of American lives a lot has been sacrificed for Iraq, a lot has been invested in Iraq," Rice said.

Bush would not ask for continued sacrifice and spending "if he didn't believe, and in fact I believe as well, that we can in fact succeed," Rice said.

Rice said the Bush administration should be remembered for far more than the Iraq war. She ticked off foreign policy commitments and accomplishments including increased aid to fight AIDS and malaria in Africa and a peace deal ending two decades of North-South warfare in Sudan.

Rice has repeatedly said she will not run for president, despite high popularity ratings and measurable support in opinion polls. Rice declined to say whether she would like to see her predecessor, Colin Powell, become a candidate. Powell is a fellow black Republican.

"I'm not going to give Colin any advice and he's not going to give me any advice on this one," Rice said.

Democratic Sen. Barack Obama, D-Ill., is the most prominent black politician to emerge as a potential candidate for the 2008 presidential race. Rice was asked whether, watching Obama's rise, she thinks Americans are willing to put a black in the White House.

"Yes, I think a black person can be elected president," Rice said.

She said the first successful black candidate will be "judged by all the things that Americans ultimately end up making their decision on: Do I agree with this person? Do I share this person's basic values? Am I comfortable that this person is going to make decisions when I'm not in the room that are very consequential?"

At the same time, she said, "We should not be naive. Race is still an issue in America. When a person walks into a room, race is evident. It's something that I think is going to be with us for a very, very long time."

Rice said she has no reason to believe North Korea is serious about dismantling its nuclear weapons. "That's what we're testing" in disarmament talks this week that a Japanese envoy described as deadlocked.

"They're signed on to denuclearization," in an agreement last year that was never implemented. "We'll see whether or not they follow through," Rice said.

A watered-down United Nations sanctions resolution against Iran would have more than symbolic value, Rice said. But she said she has no assurances that Russia will vote for the resolution this week despite long efforts to satisfy Moscow's misgivings about sanctions.

"The Russians say that they want to prevent the Iranians from perfecting technologies that could lead to a nuclear weapon," Rice said. "I take them at their word and that's why I think ... they will reflect that in their support for a resolution."

She said she is confident all U.N. members will enforce the sanctions once passed, no matter how they voted.

Sorry if already posted.

Iraq officials ‘reach tentative oil law deal’Published: Thursday, 21 December, 2006, 10:01 AM Doha Time

BAGHDAD: Iraqi officials have reached a tentative deal on an oil law that would allow the regions to negotiate oilfield contracts with foreign investors but gives the central government the final say.

Iraq desperately needs foreign investment to revive its shattered economy, which relies heavily on oil export revenues. The country straddles the world’s third largest oil reserves.

Sources close to the negotiations said Prime Minister Nuri al-Maliki has "signalled his approval" of the draft, but the law still awaits political approval and endorsement by the cabinet.

The sources said the law calls for the formation of a national oil council - led by either the prime minister or his deputy - that will have the authority to reject oilfield deals.

"Regions will be negotiating in accordance with specific parameters and investment models decided by the national oil policy council ... in the presence of a representative of the national oil body," one of the sources said.

"If rejection happens and the region insists on the contract, a body of (independent) experts will arbitrate."

The oil minister, central bank governor, a representative from each region and oil, finance and economy experts will serve on the council, the sources said.

"The Kurdish regional government has accepted to review its existing contracts so that it will become consistent with the law," a source said.

The industry desperately needs foreign investment to revive Iraq’s shattered economy, which relies heavily on oil export revenues.

The contracts issue is vital to Iraq’s future as a solution favouring the regions would devolve power over its most valuable resources to the majority Shias and the Kurds whose regions are home to the country’s most coveted oilfields.

Minority Sunni Arabs, who were the dominant group under Saddam Hussain before the US-led invasion in 2003, fear regional devolution will leave them with nothing.

"Contracts will not become effective unless the national body does not reject it. If the national policy council were to reject any draft contract within a specified period of 60 days then the contract will not be effective," the sources said.

The sources said the law calls for Iraq’s two national oil companies to be turned into a holding company with operational affiliates to manage different aspects of the industry.

It also says oil policy would be set nationally and the ministry of oil would be restructured and transformed into a regulatory body. All revenues would be deposited into a single national account.

Iraqi officials have said the law will be delivered to the parliament for ratification by the end of December. But the legislation is likely to be finalised early next year because of the holiday season, the sources said. - Reuters

Originally Posted by Gloribee

UPDATE:Iraq Kurdish PM: Oil Law Deal Reached With Baghdad



12-21-2006 7:34 AM EST

(Updates an item timed at 1039 GMT with background.)

The prime minister of the Kurdistan Regional Government in northern Iraq, Nechirvan Barzani, said he has reached an agreement with the federal government on the control of oil in the region, a major source of friction between the Kurds and Baghdad and a stumbling block that was delaying the issuance of a crucial hydrocarbon law.

Barzani also said that the Iraqi federal government would discuss in a few days a final draft of an Iraqi hydrocarbon law before sending it to the parliament in Baghdad for approval.

A hydrocarbon law is crucial for Iraq as a basis for international oil companies to begin discussions on investing in the country's under-exploited and run-down hydrocarbon sector and to generate much-needed reconstruction revenues for the country's coffers.

"After long discussions we have reached positive and good results on the issue of oil," Barzani told reporters in the Kurdish city of Erbil Wednesday night after concluding several days of talks in Baghdad.

The Kurds are pressing for control of oil resources in their northern territories and a significant share of oil revenue, which has provoked anger in Baghdad. Officials in the capital say oil resources across Iraq should be controlled by the federal government in Baghdad.

The issue of who should sign oil contracts with international companies in the Kurdistan region was the main sticking point preventing the federal hydrocarbon law from being accepted.

A preliminary draft copy of the law, obtained by Dow Jones Newswires earlier this month, stated that all oil contracts with international companies should be handled by the Iraqi Oil Ministry in Baghdad.

According to the new agreement reached between the Kurds and Baghdad, negotiations with international companies planning to invest in the Kurdistan region would be carried out by local officials along with a representative from the federal government in Baghdad, Barzani said.

Before a final signature of any contract, a draft copy would be sent to Baghdad for review and if the authorities in Baghdad agree on the details, the contract would be signed in Kurdistan with the company, he said.

Barzani said the federal government in Baghdad will set up a committee of experts to review and approve oil contracts.

He said it has been agreed that oil revenues should be distributed evenly among all Iraqis whether the oil produced in the north, center and south, a point already stated by the draft law.

Iraq has huge reserves, third only after Saudi Arabia and Iran. But its oil sector needs up to $20 billion in investments to raise crude oil production to 3 million barrels a day from below 2 million b/d at present.

The sticking point over a hydrocarbon had had always been the issue of how much control the regions should be given over resources in their areas.

Although Baghdad has been displeased with the fact that the Kurds have awarded contracts to oil minnows in the mostly unexplored northern part of Iraq, they are more worried it could set a precedent, particularly in the oil-rich south, where most of the country's giant hydrocarbon structures lie.

The four main principles for the draft law currently under debate remain the issue of federal versus regional control, the sharing of oil revenues, the types of contracts that are awarded and the formation of an Iraqi National Oil Company to handle the country's oil production, exports and exploration.

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.

But without the hydrocarbon law, many of the large oil majors have been reluctant to make deals despite the huge oil prospects and relative security in northern Iraq.


As I have said my friends did confirm that this was part of their late night meetings, Iraqi's are big on ceremony and tend to bring out special pen's for signing documents. They said so far, no major photo op's and no signing ceremonies. Not sure really what it means, other than they are still working out some issues.As well the two Americans and the German are now gone.


Gloribee

PS, they dont know Arabic, its just there take on the proceedings.

but it seemed to them anyway that more time was spent on discussing Art. 101.


Ok question!!
Is Art. 101. part of the constitution???
The reason I ask is because i thought i read somewhere that the constitution needed to be changed to go with the HCL (or something like that)
And so if it is part of the constitution do you think this is why they were so concerned with it???



Another thing I've been trying to get on the iraqpresidency site and can't. Is anybody else having trouble with this site???

Originally Posted by day dreamer

but it seemed to them anyway that more time was spent on discussing Art. 101.


Ok question!!
Is Art. 101. part of the constitution???
The reason I ask is because i thought i read somewhere that the constitution needed to be changed to go with the HCL (or something like that)
And so if it is part of the constitution do you think this is why they were so concerned with it???



Another thing I've been trying to get on the iraqpresidency site and can't. Is anybody else having trouble with this site???

down for me too

Originally Posted by day dreamer

but it seemed to them anyway that more time was spent on discussing Art. 101.


Ok question!!
Is Art. 101. part of the constitution???
The reason I ask is because i thought i read somewhere that the constitution needed to be changed to go with the HCL (or something like that)
And so if it is part of the constitution do you think this is why they were so concerned with it???



Another thing I've been trying to get on the iraqpresidency site and can't. Is anybody else having trouble with this site???

Hey DD, I looked up article 101 (in the constitution) and this is what it says. A commission named Foundation of Martyrs shall be established and attached to the Council of Ministers. Its functions and compentencies shall be regulated by law. MSNBC

posted by "anaconda dinar shiek" from iif




41 billion dollars, the volume of the budget for 2007

--------------------------------------------------------------------------------

Iraqi Minister of Finance, Baqer Jabr Al-Zubaydi, announced that "No change in the 2007 budget, which is fixed at 41 billion dollars", but he indicated "transfers and distributions will be made so that the new budget will cover all sectors of the Iraqi people to avoid the mistakes that happened in last year's budget, and the confusion that happened in the implementation of investment projects".

After the economic committee meeting under the chairmanship of Vice-President Adel Abdel Mahdi, the Iraqi minister revealed that "new conditions are put to punish the parties who fall behind in the implementation, then withdraw the funds that have not been spent and convert them to the implementation of large projects in the country".

Regarding the amendments to the salaries of governmental employees at the beginning of next year, Azzubaidi announced: "400 million dollars have been allocated to make the necessary adjustments to the salaries of the employees. The increases would range between 50 and 70%, and each employee will get the increase he deserves, starting from the beginning of next January".

Azzubaidi pointed out that 2007budget "will be set at the rate of 1260 dinar to the dollar and 50 dollars per barrel of oil with the production of 1.7 million barrels a day". He explained that the Iraqi Central Bank "started raising interest rates from 12 to 16% now", pointing out that there are no immediate plans to continue raising interest rates.
He explained that the aim of raising interest rates is "to strengthen the Iraqi dinar, and curb the inflation of 56% now, as well as strengthening the confidence of Iraqis in the local currency".

Originally Posted by frathousemicrowave

No, it's not the forum, it's the jags that come here to disrupt the discussion like this rcpimper dink. So you go away with him.

Frathouse, I took it that jessemac was referring to the BAD forum, not ROL.

Originally Posted by mountaingirl

posted by "anaconda dinar shiek" from iif




41 billion dollars, the volume of the budget for 2007

--------------------------------------------------------------------------------

Iraqi Minister of Finance, Baqer Jabr Al-Zubaydi, announced that "No change in the 2007 budget, which is fixed at 41 billion dollars", but he indicated "transfers and distributions will be made so that the new budget will cover all sectors of the Iraqi people to avoid the mistakes that happened in last year's budget, and the confusion that happened in the implementation of investment projects".

After the economic committee meeting under the chairmanship of Vice-President Adel Abdel Mahdi, the Iraqi minister revealed that "new conditions are put to punish the parties who fall behind in the implementation, then withdraw the funds that have not been spent and convert them to the implementation of large projects in the country".

Regarding the amendments to the salaries of governmental employees at the beginning of next year, Azzubaidi announced: "400 million dollars have been allocated to make the necessary adjustments to the salaries of the employees. The increases would range between 50 and 70%, and each employee will get the increase he deserves, starting from the beginning of next January".

Azzubaidi pointed out that 2007budget "will be set at the rate of 1260 dinar to the dollar and 50 dollars per barrel of oil with the production of 1.7 million barrels a day". He explained that the Iraqi Central Bank "started raising interest rates from 12 to 16% now", pointing out that there are no immediate plans to continue raising interest rates.
He explained that the aim of raising interest rates is "to strengthen the Iraqi dinar, and curb the inflation of 56% now, as well as strengthening the confidence of Iraqis in the local currency".

Does anyone know how many pennies that equals? Thanks