Thread: Archive News - Iraqi Dinar Think Tank - 01/10/09 - 27/03/10

Economists attribute bad Iraqi economy to corruption

Economists attributed the bad Iraqi economy and lack of foreign investments in Iraq to the financial and administrative corruption throughout the country.

“The Iraqi state’s economic policies have been unstable since 2003,” the experts said in a symposium on Wednesday at Baghdad University.

They described Iraq’s economy as brittle and unstable.

http://en.aswataliraq.info/?p=127203

Oil Minister: Iraq does not need the approval of one of the countries to increase oil production

Oil Minister Hussein Shahristani said that the increase will be witnessed by the country's exports in the coming years will not be affected by the decisions of the Organization of Petroleum Exporting Countries OPEC.

Shahristani said in a statement that Iraq does not need the approval of one, and the decisions of OPEC are, if not unanimously approved by the country there will be no decision in OPEC, as well as with other countries.

He explained that they are interested in is to double the income and not only increase production while maintaining reasonable prices for the countries of origin.

He indicated that Iraq will present a paper explaining the controls and the factors that should be taken into account in determining these ceilings, including energy production, because the country will be at the forefront of producing countries because they need to rebuild the country after decades of denial of its petroleum revenues.

http://www.radiodijla.com/cgi-bin/ne...?id=2010-02-17

Local firm to invest $35m in hotel in Baghdad

A local firm will invest $35 million over a period of 25 years in the Ishtar Hotel in Baghdad.

"The hotel's rehabilitation process will take 14 months," Baghdad Governor Salah Abdulrazaq announced on Tuesday.

He said that the hotel will be rehabilitated according to the international standards of 5-star hotels.

http://www.zawya.com/Story.cfm/sidZA...20in%20Baghdad

IMN Welcomes Foreign Investors to Participate in Iraqs Reconstruction

Dr Abdul Al Kareem Al Sudani invited Sanna Al Kassir (SAK) to discuss foreign investment in Iraq. In a first for SAK CEO R. M. Hultz and Project Director Larry Sowell; the SAK team was invited to Iraqi Media Network's (IMN) Studios in Baghdad. Dr Kareem was very interested in SAK's investment activities in Iraq and how that could be beneficial for the Iraqi people.

After a brief discussion on SAK's history in Iraq, Dr Kareem asked how he could assist or in some way enhance the climate in which new foreign investors find when first entering Iraq. Dr Kareem stated "Iraq is a great nation with many wonderful things to offer the world, but our great nation is in need, in need of all Iraqis to embrace foreign investors in the spirit of cooperation." Dr Kareem was referring to Iraq's reconstruction. He continued, "I want to do my part; I am the General Manager of the Iraqi Media Network. On the surface, one might think we here at the station, might have a limited ability to participate, but I disagree. We have a voice and we want to be known as a voice of progress in Iraq and to the world."

Dr Kareem offered the services of his station and staff to SAK as their contribution and participation in the reconstruction of Iraq. IMN will designate a group of reporters to follow SAK's progress in their current contracts: two for cement and a third for steel. Hultz invited Dr Kareem's team to take part in a series of upcoming negotiations scheduled with the Ministry of Housing and Construction, responsible for building many of the new homes ordered by the Prime Minister and anxiously awaited by the Iraqi people.

Sowell added, "We are encouraged by the willingness of Dr Kareem, the Iraqi Media Network and its staff, to lend support to showcase our projects in Iraq; I feel this strongly demonstrates the desire of Iraqis who wish to participate in Iraq's reconstruction." Sowell extended an invitation to Dr Kareem's team to Basra, as SAK launches its logistical support operations there in the coming weeks.

In addition to Basra, Sowell invited Dr Kareem's group to the Ministry of Transportation, to report on the signing of an agreement that will confirm SAK's new Basra operations and pave the way for SAK to reinvest in the port by improving some of the current port facilities to maximize efficiency and increase production. In a post meeting briefing, Sowell stated, "We have been received very warmly by Iraq, its institutions and its people. It really leaves me with a sense that the situation here is improving greatly for foreign investors."

Sanna Al Kassir in conjunction with its partners operates offices in Australia, China, Dubai, Jordan, Lebanon, Switzerland, Saudi Arabia and the United States and has maintained an active presence in Iraq since early 2005.

http://www.zawya.com/Story.cfm/sidZA...Reconstruction

Basra Investment Committee studies establishing oil pipelines and valves factory

Basra Investment Committee discussed the possibility of establishing an oil pipelines and valves factory in the Province in collaboration with one of the specialized US companies in this field. A source in the commission said that the US Company for oil pipelines and valves discussed the issue of establishing a similar factory in the province with the commission. Meanwhile, Ibn Majed Iraqi Engineering Company uttered its willingness to enter in a partnership with the US Company in order to implement the project.

http://www.alsumaria.tv/en/Economics...s-factory.html

Transport will hold a bilateral agreement with Washington for the twinning between the ports of Umm Qasr and New Aorenza US

Signed and Iraqi Ministry of Transport memorandum of understanding to activate the air transport between Baghdad and Washington and strengthen the fleet of transport aircraft through the conclusion of a contract to supply Boeing took place during the current visit of the Iraqi Transport Minister Amir Abdul-Jabbar Ismail to the United States.

Ismail and announced a bilateral agreement of the twinning between the port of Umm Qasr and Mina Neaouorenz the US and during the visit fruitful meetings of the Iraqi delegation with the US side came out with positive results consisted of a bilateral agreement between the port of Umm Qasr, the port of New American Lawrenz. He said that he was agreed to set up aviation training institute about $ 7 million to start this year to train pilots and air traffic controllers with a large training and $ 30 million under a contract aircraft. and urged investment companies and Iraqi businessmen in America to invest in Iraq, especially with the security situation improves and is worth mentioning that this is the first minister to visit Iraq to transfer United States-Iraqi relations in the history of America.

http://translate.googleusercontent.c...Q14zSGYGP0onQg

Kurds bullish as Iraq signs last of upstream oil-service contracts

IRAQ'S semi-autonomous Kurdistan region plans to boost crude-oil production to 1m barrels a day (b/d) within five years. The ambitious target reflects growing confidence that the Kurdistan Regional Government (KRG) is coming closer to striking a deal with the central government in Baghdad that will confirm the production-sharing contracts the KRG has signed with foreign oil companies.

In January, the KRG said it was "ready to immediately restart the process of oil exports from the Kurdish fields at a rate of no less than 100,000 b/d". It added that it hoped to boost output to 200,000 b/d this year and attain an output capacity of 1m b/d within five years. Last month, at a meeting in London's Chatham House, KRG natural-resources minister Ashti Hawrami said the 1m b/d target could be reached within three years.

The January announcement generated speculation........

http://www.petroleum-economist.com/d...4602&ISS=25574

US Ambassador to Iraq sees delay in govt formation

The U.S. ambassador to Iraq said Wednesday it could take months to form a new government after elections next month but insisted the United States was determined to pull all combat troops out of the country by the end of August.

Ambassador Christopher Hill forecast a drawn-out process to seat the next government after the March 7 national vote, and that could mean considerable political turmoil in the country.

The United States still maintains 90,000 troops nearly seven years after the American-led invasion that overthrew dictator Saddam Hussein. That's the lowest number of American forces in the country since the invasion.

Under an agreement negotiated under former President George W. Bush, all combat troops are to leave the country by Aug. 31. The remaining support troops are to be gone by the end of 2011.

As in other post-Saddam elections, no single bloc is expected to emerge from the March 7 vote with a majority of the 325 seats in the next legislature. This fractured political landscape would give the bloc with the largest number of seats the mandate to form the next government, a process that involves tortuous and on-again, off-again negotiations with smaller groups over the sharing of Cabinet posts.

Hill also predicted in the two weeks left before the vote that there would be "some tough days, violent days as well, some intemperate days" as the country makes final preparations for the first national vote since 2005.
He said the seating of a new government "could take not just weeks but could be months."

After that "the true test will not be in the reaction of winners, but how losers accept the results," Hill said. "The quality of a democracy is determined by the losers."

On Iran, the ambassador said the United States must "understand the complexities of the shared history of these two countries."

But he said, "There is no question that Iran has shown a very malevolent face in Iraq. And this means we need to be very mindful of continued malevolent involvement from Iran."

Hill spoke at the United States Institute of Peace, a think tank. He and Gen. Ray Odierno, the U.S. commander in Iraq, were meeting later Wednesday with President Barack Obama and Vice President Joe Biden.

http://news.yahoo.com/s/ap/20100217/...e/us_us_iraq_4

Iraq's oil revival could be a gusher for Houston firms

With Iraq poised to begin the first major overhaul of its energy sector in decades, Houston stands to benefit in a big way from the multibillion dollar effort to redevelop the country's battered oil fields, a project one analyst described as the greatest opportunity in the oil patch today.

A 23-member delegation from the country's oil ministry visited Houston this week, meeting with officials of engineering and oil field services companies and other businesses likely to play a major role in the reconstruction efforts.

Iraq is finalizing contracts for 10 new development licenses recently awarded to foreign oil companies as it looks to convert its tremendous, yet neglected, oil reserves into wealth for rebuilding the war-ravaged nation.

While only one U.S. oil major, Exxon Mobil Corp., has finalized a contract so far, experts say U.S. oil field services companies should gain handsomely when Iraq begins ramping up production. Many of them have principal offices, headquarters or manufacturing facilities in Houston.

Those companies were among numerous corporate sponsors of a panel discussion Tuesday hosted by the Bilateral U.S.-Arab Chamber of Commerce. The session drew a standing-room-only crowd of more than 150 at the downtown law offices of Bracewell & Giuliani.

‘A lot of jobs'

In an interview afterward, Sabah Abdulkadhum Shibeeb Al-Saidi, deputy director of Iraq’s directorate for petroleum contracts and licensing, said that oil operators should significantly ramp up production outlined in their service contracts after three years. Iraq has the world’s third-largest proven oil reserves with 115 billion barrels, behind only Saudi Arabia and Canada.

To meet its goal of more than doubling production in the next five years, Iraq will need technical services provided by Houston firms, as well as equipment such as wellheads, blowout preventers, pipelines, pumps, and drill bits.

“It's going to mean a lot of jobs for Houston and a sizable amount of income for these major services companies,” said Wayne Kelley, managing director of RSK [UK] Ltd, an oil and gas advisory firm in Houston.

Iraq's ambassador to the U.S., Samir Sumaida'ie, was supposed to have joined the Houston delegation, but fell ill. He spoke to the group at the law offices via live video from Washington.

“The Iraqi budget is entirely dominated by oil revenue and oil revenue is still relatively limited and it is going into stabilizing Iraq by trying to pay people salaries across the country,” Sumaida'ie said. But as production increases, excess revenue will go into building the infrastructure. “This opens up a huge amount of work and opportunity,” the ambassador said.

The timetable for that is still uncertain, however. Security, while significantly improved over the past 18 months, remains a serious risk. Oil operators also are expected to hold back major investments until it becomes clearer whether future Iraqi governments will honor contract terms, pass a hydrocarbon law and defuse other political mine fields.

Sumaida'ie said parliamentary elections March 7 will be pivotal in delivering the country into “a more sustainable period of politics.”

While analysts are skeptical of the country's ability to meet its stated targets, RSK's Kelley estimates that even an increase in production of 1 million barrels per day over a 10-year period could mean an additional $4 billion in yearly revenue for services companies, at least half of which could reasonably be expected to flow through Houston.

The estimate assumes what Kelley said is a conservative $5 per barrel development costs, and assumes it takes 8 billion barrels of reserves to support production of 1 million barrels per day.

Houston oil field services will be scrambling for a slice of the action to be sure. Halliburton CEO Dave Lesar has said he expects new drilling will spark a “land rush.”

Halliburton tour

On Sunday, the Iraqi delegation toured Halliburton's Edgar Ortiz Real Time Center in Houston, where the company monitors, measures and controls reservoir development.

“If all the licenses that were awarded actually get signed into contracts, the amount of spending will be staggering,” said Richard Ruggiero, an area manager for the Americas for Gaffney, Cline & Associates in Houston.

Gaffney, Cline, acquired by Baker Hughes in 2008, is advising the Iraqi oil ministry on negotiating contract terms.

James Williams, an energy economist with WTRG, said Iraq presents the “greatest opportunity that exists” in the oil business today.

But he noted that high-tech Houston firms will still have to compete in the global marketplace when bidding on work in Iraq, particularly because initial reconstruction efforts will likely require basic tools and services rather than state-of-the-art equipment.

http://www.chron.com/disp/story.mpl/...s/6870600.html

UPDATE 2-Iraq invites firms to drill wells for Rumaila
* Firms invited include Halliburton, Weatherford

Iraq, along with British oil major BP Plc and its Chinese partner CNPC, have invited 10 firms to drill 56 new wells in the supergiant Rumaila oilfield, an Iraqi official said on Wednesday.

Iraq, in desperate need for cash to rebuild its battered economy after years of war and sanctions, has struck a series of development contracts with global oil majors that could also signal a bonanza for international oil service companies.

The 10 selected firms include Halliburton Co, Schlumberger Ltd, Baker Hughes Inc and Weatherford International Ltd, as well as Chinese firms and a Turkish company. The state-owned Iraq Drilling Company was also invited to bid.

"We prefer to directly invite those companies who have worked before with the South Oil Co, BP and CNPC. We want to shorten the procedures and time needed," Abdul-Mahdy al-Ameedi, director of the Oil Ministry's licensing office, told Reuters.

"We asked those companies to submit their bids and will study them. The best commercial tenders will be selected," he added, declining to give an estimate for the value of the bids.

BP and CNPC signed a 20-year development contract last year for Rumaila, which has 17 billion barrels of estimated crude reserves and is the workhorse of Iraq's oil industry.

It followed the Rumaila deal with nine others last year that could lift its capacity to 12 million barrels per day, rivalling top producer Saudi Arabia and offering an unprecedented workload to international oil companies. Oilfield services leader Schlumberger declined to comment on its prospects in Iraq beyond the bullish comments from its chief E.xecutive last month along with the company's quarterly results.

Rival Halliburton said invitations to tender for services in Iraq were in process, and it was recruiting and training employees to add to the staff and equipment already there.

"Assisting in the development of Iraq's oil and gas production potential will be a significant challenge and opportunity for our company and our industry," Halliburton spokeswoman Cathy Mann said in an emailed statement.

The company also said it expected the potential work to range from traditional product and service offerings to fully integrated well construction and production projects.

Nabors Industries Ltd, the world's largest land-drilling rig contractor, said it was in a good position to win work on Iraqi integrated projects due to its experience in Saudi Arabia, which was "the gold standard of drilling in that part of the world."

Nabors Chief E.xecutive Gene Isenberg also said on Wednesday that its deal with Iraq Drilling Company would offer inroads into getting work in the country, though he was not yet banking on a near-term earnings boost for Nabors.

"There are political and security problems there, and how they'll pan out is -- nobody knows," Isenberg said.

http://www.reuters.com/article/idUSL...pe=marketsNews