Thread: Archive News - Iraqi Dinar Think Tank - 28/03/10 - 21/06/10

Oil experts: Go national cadres to foreign companies behind the big problems

Oil experts agreed on Saturday that the movement of many cadres of national oil companies to foreign companies behind the big problems the most important of the vacuum caused by the migration of these cadres, and reflect a clear impact on the production and maintenance on some basis.

The oil expert head of the Center for Economic Studies at the University of Basra Jabbar Hilfi The major problems have occurred in Iraq's oil sector due to the vacuum left by the relocation of many oil cadres of national companies to foreign companies, which won the recent licensing contracts.

He explained that the field Hilfi Halfayah endure the presence of sand, which hamper the production or make it at the lowest levels, due to lack of allocations for maintenance staff and the brain, in the field suffer crazy is also the proportion of high salinity for the same reasons.

He added that foreign companies began to establish information services to receive those who have resigned from the national companies, as well as the fact that foreign companies focus its work in new wells without paying attention to the old wells.

Hilfi attributed the shortfall in the production of electrical energy to these problems, which he said was the limited production and a lack of associated gas that supplied by power plants.

For his part, said the staff union in the union employees of the oil sector, on condition of anonymity, said foreign companies have dominated much of the national labor effort and without the trouble of cadres of Iraqi oil well-trained and owner of a very good experience in the oil sector. By exempting foreign companies from the training tasks that made him a fortune.

The foreign companies that won contracts, licenses have not done anything yet, but you do not develop a field and one of the fields produced.

He pointed out that the transfer of those staff to foreign companies had a negative impact on production and maintenance in the field of oil.

http://www.radiodijla.com/cgi-bin/ne...?id=2010-05-08

Iraq: Controlled Devolution or Uncontrolled Disintegration

Recently, Massoud Barzani, president of the northern Kurdish region in Iraq, bluntly declared that the American visions of a strongly unified Iraq were “bird dreams and wishes.” Barzani then proceeded to heighten pressure for greater decentralization of the country and expanded Kurdish control over oil.

At the same time, Arab Sunnis, previously more inclined to keep Iraq together because their section of the country has few proven oil reserves, could very well resume their guerrilla war against the Shi’ite-led government. If the plurality the Sunni-backed Iraqiya bloc earned in the recent election is stolen from it by recount or disqualification of candidates, or if any new coalition government is established that leaves out the bloc, Sunnis could resume the insurgency. Already the Sunni Awakening movement, former guerillas the Americans paid off, is disillusioned by its electoral marginalization and broken promises by the Shi’ite-led regime to give its former fighters government jobs.
Meanwhile, most Shi’ite groups have also been receptive to creating a more decentralized country.

Although the Iraqi constitution creates a fairly decentralized state, the most worrisome development for Iraqi unity is Barzani’s increasing demands. Barzani’s electoral gains—and because of Iraq’s post-election political stalemate, his ability to be a king-maker in selecting Iraq’s next prime minister—make him and the Kurds more strident in their quest for autonomy, or maybe even independence, and to grab the ethnically-mixed but oil-rich city of Kirkuk. If civil war breaks out, which is entirely possible as, or after, American forces leave the country, it will probably start over this oil-saturated boundary line between Kurdistan and the Sunni Arab portion of Iraq.

Although the United States should have sponsored a conclave of all Iraqi ethno-sectarian groups to discuss decentralization before America lost much influence as a result of its projected troop withdrawal, this attempt to avert a likely civil war nevertheless still needs to be undertaken. The Kurds are demanding action under Article 140 of the Iraqi constitution, which lays out steps for a plebiscite to determine the trajectory of the northern portion of Iraq, including Kirkuk. If this referendum is conducted without such a conclave in advance, the result could be explosive.

Iraq always has been an artificial country ever since its creation in the early part of the 20th century by the British, who pushed together three unrelated provinces of the old Ottoman Empire so they could get control of Iraq’s oil. Only the iron fist of Sunni Arab dictators, the last of which was Saddam Hussein, held the country together—that is, until the U.S. invasion in 2003 ended the Sunni reign. The Kurds have never really wanted to be part of Iraq, and most of the Shi’a want, at minimum, some autonomy from the central government. Even the Sunnis are fearful of paybacks from any majority-led Shi’ite central government, some of which have already been delivered.

Some analysts have claimed—and rightfully so—that the United States has already meddled enough in Iraq and made a mess of things. But that’s not what’s being proposed here. The United States should use any remaining influence to avoid the impending train wreck, but only by sponsoring and mediating—not meddling in—the Iraqi conclave. The Iraqis must reach their own settlement; but the impending U.S. troop withdrawal, current political stalemate, Sunni disillusionment with the electoral process, and increased Kurdish demands may very well make all groups much more receptive to a decentralized solution—provided the U.S. acts merely as a neutral facilitator.

Here are some things that Iraqis might want to consider in any such devolution arrangement. Any agreement to ensure post-U.S. stability would probably need to allow both Kurds and Shi’a the autonomy to manage and keep the earnings from oil production out of reserves in their territories. Also needed would be some sort of gerrymandering or territorial swap, which would give Kurdish-populated lands now outside Kurdistan to the Kurds in exchange for the Sunni region getting access to more oil reserves.

Overall, the Iraqi central government needs to be weakened or the three groups will fight over control of this historically and potentially oppressive body. Thus, security and judicial functions probably need to be devolved to Kurdish, Sunni, and Shi’a regions. The central government could be converted into an economic confederation, thus maintaining economies of scale in any common market, a common currency, and free trade and investment areas.

Most important, such a negotiated settlement should not be forced on Iraqis. But if they are unable to reach such a decentralization to self-government, ethno-sectarian fissures are likely to pull a post-U.S. Iraq apart violently.

http://mwcnews.net/focus/analysis/2358-ivaneland.html

Interest grows in Iraqi gas, minister says

There is a strong indication that international bidders are interested in tapping natural gas reserves in Iraq, the Iraqi oil minister said in Baghdad.

Baghdad officials announced a third round of auctions for oil and natural gas contracts for Sept. 1.

Investors shied away from the first round of post-war auctions in summer 2009 because of security concerns but Baghdad walked away from December auctions with the confidence to say it could rival Saudi Arabia in terms of oil production within the next few years.

Iraqi Oil Minister Hussain al-Shahristani said gas could meet growing energy needs for Iraq and possibly European countries once developers start work at the three gas fields -- Akkas, al-Mansouriyah and Siba.

"We have indications that there is renewed interest among companies to compete for these fields," the Emirati newspaper The National quoted the minister as saying.

Iraq is considered a possible supplier to the Nabucco natural gas pipeline for Europe. The National reports that Iraq has set aside Akkas near the Syrian border as a possible source for the Nabucco gas pipeline for Europe.

A spokesman for the Oil Ministry said recently that Iraq is losing around $70 million each year flaring natural gas from oil production in the country.

http://www.upi.com/Science_News/Reso...3181273240214/

Oil extraction cost dispute ends between Baghdad and Kurdistan region

Middle East Online reported the Iraqi oil minister Hussein al-Shahristani saying that the Baghdad-Kurdistan oil row had ended with the Iraqi government agreeing to be responsible for paying extraction expenses in Kurdistan. All revenues would be handed over to SOMO, the Iraq's State Oil Marketing Organisation which deals with sales of crude and other petroleum-based products, and the Iraqi government will be responsible for paying the extraction expenses in Kurdistan.

Iraqi Kurdistan halted oil exports in October last year due to a payment dispute with Baghdad. The two sides previously clashed over how oil revenues should be distributed and Kurdish authorities had said they would not resume crude exports until Baghdad paid the foreign energy companies which are pumping the oil. The central government had repeatedly said it was opposed to the Kurds signing their own contracts, a position which Kurdish officials disregarded by making dozens of agreements with foreign firms

All licences in Kurdistan are Production Sharing Contracts (PSCs) under which production is first used, up to a cap, to recover costs contracted by the operator in exploring and developing the field, this is called “cost oil”. Subsequently any production or “profit oil” left is split between the contractor and the state. The dispute between the KRG and Bagdad is essentially about the details of the application of the oil sharing law as to whether cost and profit oil should be paid by Iraq out of gross revenues, i.e. revenue from all of Iraqi production, or should be paid by the regions out of net revenues, i.e. once revenues have been apportioned to the regions according to their population. Kurdistan argues the former and Bagdad the latter, despite our understanding that the interpretation of the law by the KRG seem to be the closest to the actual law.

Kurdistan having low production and 14% of the population, it is better for them to receive 14% of the net revenues, after cost and profit oil have been paid to contractors our of gross revenues, as it equates to a subsidy from the rest of Iraq towards exploration and development costs incurred in Kurdistan. Conversely as soon as the % of production from Kurdistan would be above their share of the population the opposite would be true, but may be by then most costs would have been recovered anyway.

This latest development vindicates the position of the KRG for cost oil but does not mention profit oil. We assume that this positive step announced today will be followed by a full resolution very soon.

For the operators, as long as the contracts are not renegotiated downward, it does not make a difference who pays them as long as they get paid for the oil produced. The latest news goes a long way towards a full resolution although understandably the market will remain somewhat cautious as long as some uncertainty remains. Obviously this is positive for all operators in Kurdistan with existing discoveries, such as Gulf Keystone Petroleum (AIM: GKP), Heritage Oil (AIM) and DNO International.

http://www.proactiveinvestors.co.uk/...ion-16350.html

Investment only way to rebuild Iraq

Investment Commission has made the province of Diwaniyah readiness to provide all possible facilities to assist and enable investors to obtain investment licenses in periods of record and the application of the single window in the reception and get everything they need.

President of the Economic Section in the form of investment to maintain Adi Aziz Ali Al-Awadi said in an interview for "economic morning," and stressed that the investment is the only way to build Iraq in general and conservative in particular.

Al Awadi said: "The advantages of the Central Euphrates provinces differ from Diwaniya Vpabl history, location, and Najaf and Karbala, features religious tourism and Wasit border crossing, but Diwaniya, it is closed geographically and has only limited opportunities are in fact agricultural distinguished by capacity soil and nature appropriate for the cultivation of crops strategy.

On this basis, dignitaries in the province, and its investment put the priorities of agricultural investment in the lead with efforts to link conservation across the province of Wasit line railway up to the port of Badra and to Iran and is linked to the line connecting and passing through the Diwaniya, Basra, and it is reliable to establish a trade that could contribute to in advancing trade and maximize revenue to maintain an attempt seek and plan for her and perhaps grope whether positive economic shortly, and can be Diwaniyah link or storage area contribute to the advance of trade with Turkey and Syria through the nipple line to the stronghold of Basra.

This perception is if they found a way to implement Valdioanip will be strategically focused mutual trade and the ease of the cost of maritime transport operations and increase access for goods and goods through the ports of Basra, in the sense of moderation in the region will be dry canal linking the Gulf, the Mediterranean Sea.

Al-Awadi said in commenting on a draft implementation of the investment map of unified Iraq with the support of the United Nations and through Sama beauty sponsor of the project: the trend toward the agricultural sector is viable with the conservative Perhaps most important, as is pointed out the existence of areas of land, water, manpower and personnel graduating from the faculties of agriculture The search continues, to get to the volume of production and overcome the special issue of low-yield agriculture is a problem in the country in general.

Nor did he limit the official authorities to maintain at a certain extent Efforts continue toward the facilitation of technical measures and management to investors and already has been granted 24 vacation investment, including plants brick and asphalt and cultivation of covered, and we believe that the march was long and despite the modern establishment of an investment in the province it has set ambitious targets to reach the goals set and through the unit cohesion and solidarity among all components of our scenarios until 2030, where he hoped to get to map strategy for agriculture to achieve self-sufficiency and export and we are also the most important industrial center for textile industries and manufacturing industries.

And we have other evidence that many are motivated us to continue thinking and the development of standards concerning the employment and job creation.

Emphasis has been placed on the agricultural sector against the backdrop of Diwaniyah, mediates five provinces and penetrate five rivers and passes through the railway international and the seven oil wells and the base quality education from universities, institutes and spread of 800 archaeological site and near the capital Baghdad, is rich in talent and trained manpower as well as three institutions is an industrial rubber and textile, dairy, and was parked.

Al-Awadi said that the investment in Diwaniyah and put the benefits into account the investment law, and adopted mechanisms to make it easier for investors to reach their goals, and these features are unique to the province. And that their contribution and participation in the map to find a single investment of the country reflects the imperatives of faith in this project and its role in economic integration and feasibility of potential behind it.

The next stage will witness the birth of large projects we hope to accommodate the hands of the large workforce idle and contribute to the solution of the phenomenon experienced by maintaining only a decline in standards of living due to unemployment and loss of jobs and lack of productive projects and the lack of financial resources added to help complete the plant stalled.

http://www.alsabaah.com/paper.php?so...age&sid=102186

Wael Abdul-Latif: To be entitled to the caretaker government to decide Kurdistan oil contracts

According to a member of the Iraqi National Coalition, Wael Abdul Latif, "It Does the caretaker government to decide the territory of Kurdistan's oil contracts," adding that "negotiations with the Ministry of Oil and the Kurdistan region on these contracts illegal."

The Oil Minister Hussain al-Shahristani, has said he was reached understandings with the province of Kurdistan on oil contracts.

Abdul Latif in contact with the agency, the independent press (Iba), "Some political forces and has deliberately delayed the approval of oil and gas law, which is the only wealth of Iraq, no one has the right to dispose of them."

The House of Representatives ended his mandate has referred the law of oil and gas from within some other laws to the parliament for approval next to the failure of the various political blocs to agreement on it.

And Talib Abd al-Latif of the Commission on oil and gas in the new parliament, "open all files oil and gas contracts concluded by the central government or the Kurdistan Regional Government to demonstrate its legitimacy and legality."

Was hosted by the House of Representatives and former oil minister, Hussain al Shahristani two consecutive sessions at the request of some members of the Council.

http://www.ipairaq.com/index.php?nam...onomy&id=24977

A ministerial committee to develop a mechanism to ensure the full protection of Iraqi funds after the end of the mandate of the Development Fund for Iraq

Ministerial Committee charged with ensuring the protection of Iraq's money after the expiration of the mandate the Development Fund for Iraq held a meeting chaired by the Deputy Prime Minister روژ Nouri Shaways, and the presence of Minister of Foreign Affairs, Finance, Oil, Planning and Development Cooperation, and Justice, Central Bank Governor, the President of Supreme Audit, in addition to the Legal Counsel the prime minister.

A statement by the Office of Shaways received by the independent press (by heart) a copy of the committee examined the impact of the findings of the report submitted to the UN Security Council, which included a plan of action the Iraqi government to move from the Development Fund for Iraq to make alternative arrangements to ensure the protection of Iraqi funds abroad.

He said the Committee also discussed the remaining debt files and requests for international bodies in addition to review and discuss measures and the efforts of the Iraqi Central Bank to ensure adequate protection of Iraqi funds after the end of 2010.

http://www.ipairaq.com/index.php?nam...onomy&id=25007

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Abdul Bari Zebari: the national interest to impose the participation of all blocs winning the next administration

stressed .. member of the Kurdistan Alliance Abdul Bari Zebari said Iraq's national interests require that all blocks within the winner of the next government which reflects the current trend of political blocs.

Zebari said in connection with the Agency for the independent press (Iba), "The past years have produced one of the disadvantages of the so-called national participation through the participation of all political blocs in the government and the defense for each block of their representatives," noting that this is one of the drawbacks of the Government of National Partnership.

He explained, "was supposed to take the lumps that will not participate in the government in the oversight role of parliament and must be notified of this and to take this role for itself not to impose them through the processes of marginalization and exclusion."

Zebari said that "the figures that emerged from parliamentary elections that have taken this fact, which tends in which all the political blocs to participate in the next government."

The parliamentary elections that produced a narrow outcome, if you get Iraqi bloc, 91 seats, followed by a parliamentary coalition of the rule of law with 89 seats while the National Coalition to win 70 seats in the next parliament and the Kurdistan Alliance 43 seats.

Zebari said that the exclusion of the political blocs to participate in the next government by various means will hurt the political process, democracy in Iraq.

And moving the political blocs to form a government representing all the political blocs of winning the elections, while some expressed fears that a continuation of quotas approach experienced by the previous government and impact on performance.

http://www.ipairaq.com/index.php?nam...itics&id=25091

The advisory board would discuss with the internationalist future plans and programs of economic reform

The advisory board discussed the Council of Ministers with the internationalism of the Resident Coordinator of the United Nations, plans and upcoming programs to achieve economic reform and develop the performance of government institutions.

And the transfer of the National Center for information about the source of the official as saying that the meeting reviewed progress of work in the unit tasks and outputs.

And the head of advisory board, the gratitude of the Iraqi government of the United Nations and donor countries, the World Bank's economic reform program, which is a priority, very important part in building the future of Iraq, reviewing the steps and games made by the Steering Committee in a gear, with signaling, constraints and challenges facing program.

For its part, reviewed the program director for private sector development in Iraq, "Simona Marinescu" the work of the Committee. And praised the Iraqi government's efforts to cooperate and overcome the difficulties for the success of the joint mission between Iraq and international organizations.

Top and side internationalism of the Resident Coordinator of the United Nations Humanitarian Coordinator in Iraq, Christine McNab, and included a large number of representatives of international organizations of the United Nations as well as representatives of donor countries and the World Bank.

The Iraqi side was led chief advisers Thamer Ghadban, including a number of representatives of the Secretariat of the Council of Ministers, the ministries concerned as well as members of teams of seven on the (reformed state-owned enterprises, reform of legislation, and develop the capacity of the private sector, investment, and social dialogue, and tax reform, team and reform of the legislation and exploitation of the earth), while the Regional Office of the United Nations to meet in Amman via closed-circuit **********.

http://www.ipairaq.com/index.php?nam...onomy&id=25063