Thread: Archive News - Iraqi Dinar Think Tank - 22/06/2010 - 04/10/2010

Iraq’s Economy Mounts Shaky Advance, Led by Oil

“Seven years after the U.S.-led invasion, Iraq’s petroleum industry shows signs of living up to the potential that American planners hoped for at the start of the military operation, a potential boost to the war-ravaged country’s economic recovery."

“After fits and starts, Iraq’s oil production has rebounded to pre-war levels.”

So reports the Wall Street Journal on Friday, in a feature article on Iraq’s economic recovery.

While the country suffers from a shortage of electricity, the increasing demand for power is a sign of overall economic growth.

“The International Monetary Fund estimates Iraq’s gross domestic product will grow at above 7% this year, compared to a contraction of almost three quarters of a percent in 2005, the first year the IMF started posting reliable data.

“Inflation slipped to 2.7% in June, the lowest level in three decades, according to Mr. Kassim at the central bank. The IMF pegs inflation at just over 5% this year, down from about 37% in 2005.

“But unemployment remains stubborn, with official figures showing 20% of eligible workers without jobs. While that figure is down from previous years … U.S. commanders and diplomats are pushing job creation as a way of keeping young Iraqi men out of the insurgency.”

http://www.iraq-businessnews.com/201...ce-led-by-oil/

German Gas Contract Sparks New Row

We reported yesterday on the new gas deal between the Kurdistan Regional Government and the German giant RWE. Today, a new row has broken out between Erbil and Baghdad regarding the legality of Kurdish oil and gas contracts.

Aswat al-Iraq reports that the Iraqi Oil Ministry, through the State Organization for Marketing Oil (SOMO), claimed on Sunday to be the only party in Iraq that is exclusively responsible for exporting oil and gas from the country.

“Any other side in Iraq is not authorized to sign contracts with international and local firms in this regard,” the ministry said in a statement.

It explained that any commitments in this regard made by any parties other than the ministry are meaningless.

“Any contracts signed out of the legal and official forms used by SOMO are considered invalid and illegal,” the ministry stressed.

Hitting back at those statements, KRG’s spokesman Kawa Mahmoud, speaking to AKnews, said the KRG’s oil and gas activities are not illegal and are compatible with Iraq’s Constitution.

He added the revenues will be for the benefit of Iraq but there are those “who do not care about the country,” in an apparent reference to Hussein al-Shahrestani, Iraq’s oil minister.

“We care about Iraq and the income of our exports will go to a special account to serve all Iraqis. Preventing such deals will harm all Iraqis because the revenues will be used for public projects whether in Basra or Kurdistan,” Mahmoud said.

Meanwhile, Sherwan Haidari, a member of the Kurdistan parliament, told AKnews that the statement by the Iraqi oil ministry is only aimed at creating obstacles for the KRG’s oil policies.

http://www.iraq-businessnews.com/2010/08/29/german-gas-contract-sparks-new-row/

Kurds attack 'failures' of Baghdad oil ministry

Iraq's autonomous Kurdish region on Monday launched a scathing counter attack on Baghdad's oil ministry, which it said had squandered "billions of dollars" while failing to generate electricity. The statement from the Kurdistan region came in reaction to criticism from the oil ministry which described as illegal an agreement signed last week between the regional government and a German energy firm.

"We will not wait on orders from a ministry that has no production and is as unsuccessful as the oil ministry of Iraq, which wasted billions of dollars without providing any electricity and energy services during all the past years," said the statement, quoting Falah Mustafa, head of foreign relations on the Kurdistan ministers council.

"We will continue with the successful oil policy of the Kurdistan (regional) government, from which we are able to provide electricity and oil production for its people," he added.

Talks on the allocation of Iraq's natural resources are deadlocked, and Baghdad refuses to recognise contracts which the Kurdish regional government, based in the northern city of Arbil, has signed with foreign oil companies.

German energy firm RWE announced on Friday it had signed a cooperation deal with the Kurds that would develop the region's gas export infrastructure to create "a route to market for Kurdistan’s major gas reserves."

Ecomagination from GE - with innovation, there will be more clean water for everyone

RWE is a key shareholder in the Nabucco project, which aims to bring up to 31 billion cubic metres (1,100 billion cubic feet) of gas annually to Europe through Turkey.

"The cooperation also foresees the negotiation of gas supply agreements to enable gas from the region to be transported to Turkey and Europe via the Nabucco pipeline," the German company said.

The co-operation deal angered the oil ministry in Baghdad, which said in a statement that "no one outside the ministry has the right to sign contracts for the exportation of oil and gas."

Kurdistan halted oil exports in October last year due to a payment dispute with Baghdad. The oil ministry on May 6 said it had reached a deal with Arbil whereby all revenues would be handed over to SOMO, the Baghdad-based State Oil Marketing Organisation, which deals with sales of Iraqi oil and gas products. The agreement said Baghdad in return would pay the costs of extraction in Kurdistan, but the deal was never implemented.

http://www.zawya.com/Story.cfm/sidANA20100830T102811ZMTF33/Kurds%20Attack%20%27Failures%27%20Of%20Baghdad%20O il%20Ministry

Iraq reached a final agreement with Iran and Syria on joint oil fields

The Iraqi Oil Ministry, Sunday evening, near the conclusion of a final agreement with Iran and Syria on joint oil fields with Iraq after what amounted to the talks, including advanced stages.

He said ministry spokesman Assem Jihad told Kurdistan News (Akanyuz) that "the ministry arrived at the talks with Iran on the results of an advanced and important contribution to resolving the problem of joint oil fields between the two countries."

Jihad said that "discussions with the Iranian side continuously through specialized committees with regard to joint oil fields, especially those which have caused political problems between the two countries as a field Fakkah oil."

Hit oil exports for the month of July last to 56 million and 300 thousand barrels to reach the value of the revenues of four billion and 9 million dollars after they had in the month of June last and reached 54.0007 million million barrels to become the value of the dependency on imports 3 billion and 889 million dollars.

Jihad and continued by saying that "The oil ministry is working to develop mechanisms and clear with Iran and Syria to solve the crisis of joint oil fields."

And support the Iraqi economy heavily dependent on oil, a founding member of OPEC and began to manufacture since 1925. The Iraqi oil ministry of company drilling of Iraq announced on the completion of drilling 35 oil wells since the beginning of this year in partnership with international companies in different parts of the country.

Iraq held two rounds of last year licenses to invest in oil fields resulted in the victory of several international companies from ten different nationalities to develop fields in different regions of the country, where Iraq has been trying to access the oil produce it within the next six years to between 10 and 12 million barrels per day.

The oil exports exceeded earlier this year to two million barrels per day, for the first time since the invasion of Kuwait in 1990 and the imposition of international sanctions on the former Iraqi regime. The country produces around 2,4 million barrels per day of oil, which constitutes more than ninety percent of the proceeds of the country.

The ministry has signed contracts with foreign firms to develop ten fields so that is expected to reach production of about 12 million barrels per day within six years. Iraq has the third oil reserves in the world is estimated at 115 billion barrels after Saudi Arabia and Iran.

Plans to the Iraqi Oil Ministry to increase oil exports to more than 12 million barrels per day after taking the approval of the World Organization of Petroleum Exporting Countries.

And Iraq had agreed in principle to extend the gas pipeline through Iranian territory and access to Syrian ports a few days ago, in a bid to enhance the common interests between the two countries, amid U.S. accusations that Iran sponsors of armed groups across the country.

The Iranian military forces have occupied a well Fakkah Iraqi oil eastern Maysan province (320 km south of Baghdad), on December 18, 2009, for about almost two months before withdrawing it at will, despite protests by Iraq to the UN Security Council.

http://www.aknews.com/ar/aknews/2/178156/

Kurdistan : The position of the Ministry of Oil and Gas Export detriment of Iraq

A spokesman for the Kurdistan regional government on Sunday, that the export of natural gas from the territory is legally, noting that the comments by Oil Minister Hussain al-Shahristani will damage the whole of Iraq.

He Kawa Mahmud told Kurdistan News (Akaniwz) announced today that "the provincial government does not exercise the illegal export of natural gas, but you export as oil and gas law of Kurdistan, which is consistent with the Iraqi Constitution," noting that "imports of natural gas exports from Kurdistan will benefit all Iraqis, But there are people who apparently are not interested in the general interest of the country."

The Iraqi Oil Ministry announced on Sunday, for non-eligibility of any party to the conclusion of contracts for the export of oil and natural gas, and oil derivatives with any other party, describing such contracts as "not of value, and illegal."

And Mahmoud, "The provincial government interest to the people's interest, as the imports of sale of natural gas to go to a special fund and are invested in the service of the Iraqi people, and to stop the projects of this kind is damaging to all the people that import disposal to implement service projects in any province, whether in Basra Or cities in the province."

For his part, the head of the Legal Committee of the Parliament of Kurdistan Shirwan al-Haidari's (Akaniwz) that "the statements made by the oil ministry aimed to create problems for the Kurdistan Regional Government, as happened with the conclusion of oil contracts."

Stressed the Iraqi Oil Ministry in a statement that he is not entitled to any party that enters into contracts for the export of oil and gas and oil derivatives, adding that any contracts for the export of gas is not via the main export worthless and illegal."

The Kurdistan Regional Government has signed a cooperative contract with the company (RWE) German to export gas through the line (Nabucco).

http://www.aknews.com/ar/aknews/2/178099/

Dutch businessmen seek to invest in Basra

Dutch Ambassador expressed on Monday his country’s companies’ desire to implement projects in Basra, according to a media source.

“The ambassador held on Monday (Aug. 30) a meeting with Basra Governor Sheltagh Aboud al-Mayah, with whom he discussed ways of boosting bilateral relations and the possibility for the Dutch companies to implement projects in Basra,” the source told Aswat al-Iraq news agency.

“The diplomat said a Dutch company working in the desalination field will come to Basra soon to discuss investment opportunities in the province,” he added.

http://en.aswataliraq.info/?p=136301

Obama Hails Withdrawal Of Combat Troops From Iraq

U.S. President Barack Obama said in his weekly radio broadcast to the nation that Washington's withdrawal of combat troops from Iraq this month was an "important step forward in responsibly ending the Iraq war."

He said the withdrawal also fulfills promises he made when he campaigned for the presidency.

"As a candidate for this office, I pledged I would end this war. As president, that is what I am doing," Obama said.

"I have brought home more than 90,000 troops since I took office. We have closed or turned over to Iraq hundreds of bases. In many parts of the country, Iraqis have already taken the lead for security.

Obama said that "like any sovereign, independent nation, Iraq is free to chart its own course. And by the end of next year, all of our troops will be home."

He spoke as the United States' combat mission in Iraq officially ends on August 31.

The number of U.S. troops in Iraq is now less than 50,000 and those who remain are to assume an advisory and training mission before their departure by the end of 2011.

http://www.rferl.org/content/Obama_H...q/2140157.html

U.S. Vice President Joe Biden arrives in Baghdad on surprise visit

A source at the U.S. Embassy in Baghdad that U.S. Vice President Joe Biden arrived in Baghdad on a surprise visit to Iraq last several days to discuss a number of political and security files.

The source said in an interview with "Alsumaria News" that "the U.S. Vice President Joe Biden arrived in Baghdad late today in an unannounced visit to Iraq," noting that "Biden is expected to participate in the ceremony of the withdrawal of U.S. troops from Iraq on Tuesday. They will also discuss with Iraqi officials the delay in forming the Iraqi government and U.S. withdrawal from the country."

The source, who requested anonymity, said, "Biden would work during the visit, the convergence of views between the parliamentary blocs to find a political consensus between them to speed up the formation of the Iraqi government," saying that "The U.S. administration would like to speed up the formation of the government for fear that affects the continuing political crisis The security situation in Iraq, especially with the reduction of U.S. forces end of the month.

U.S. Vice-President Joseph Biden has visited Iraq on the third of last July, has held talks with Iraqi parties, and was told then that he put the outline of the alliances that will form the government.

And rely on Biden's visit to resolve the issue of forming the Iraqi government through the support of coalition and Iraqi Kurds and the rule of law, which has paved over the past weeks, Assistant U.S. Secretary of State Jeffrey Fletman.

The United States and Iran have stepped up their actions in recent times to convince the allies of the National Coalition and the Iraqi List to approve the survival of Iraqi Prime Minister outgoing Nuri al-Maliki for a second term but the leaders of the Iraqi National Coalition and the Iraqi List, noted in comments several times during the past few days to their refusal to give al-Maliki for a second term However, some observers believe that U.S. pressure and Iran's political blocs could be resolved by the position of the political blocs to form a government, especially that the two parties share a significant influence in Iraq seven years ago in conjunction with the inability of other regional countries, especially Syria, Turkey and Saudi Arabia to find an influential role it parallel to the roles Iranian and American people.

And failed political blocs to find solutions to end the crisis in forming the government after almost six months after the parliamentary elections in the seventh of last March, also failed to Iran and other regional states to find consensus among the political blocs to form a government, which has raised fears of the United States from the collapse of the Political and security situation in Iraq, especially with the reduction of the number of U.S. forces end of the month to 50 thousand troops.

http://www.alsumarianews.com/ar/1/10...-details-.html

Terminal : the only obstacle in the political process is al-Maliki 's insistence on the nomination for the post of prime minister

He said the leadership of the Supreme Council and the representative of the National Coalition Habib terminal, the only problem facing the political process in Iraq is Nouri al-Maliki's insistence on the nomination for a second term.

http://www.al-hodaonline.com/radio/index.php?news=4135

Kurdistan Regional Government to respond to al-Shahristani : We are not waiting for instructions and guidance of the Ministry of failure, such as the Ministry of Oil

Said head of external relations in the Kurdistan Regional Government to the Government of the province is continuing its policy to develop oil and gas province of Kurdistan successful basis, the permanent Iraqi constitution that was voted for the majority of the Iraqi people and the law of oil and gas in the Kurdistan Region.

He said Falah Mustafa in a press statement posted on the provincial government we are not waiting for instructions and guidance of the Ministry of failure, such as the Iraqi Oil Ministry, the ministry that has wasted billions of dollars of wealth of the Iraqi people, without providing any services, even if small in the energy field, including the provision of fuel and electricity In Iraq.

He we are involved in successful policy pursued by the provincial government in this direction since the Fifth Ministerial cabin and we have the provision of electricity and oil derivatives, fundamental to the people of Kurdistan without relying on the center and we were able to develop the Kurdistan region on the map of global energy.

Asked Mustafa, saying, Have the Ministries of Electricity and the Iraqi oil product recalls for the Iraqi people in a failed policy that Antahjtaha? While that the ministry could not benefit from the enormous amount of oil wealth have and put them in the service of the Iraqi people want to stop our development, we are aware that the electricity and fuel in the rest of Iraq is in the enviable excluding the Kurdistan region.

He said statements and data issued by the Ministry of Oil on the contracts for oil and gas region, it is just trying to cover its failure and try to stop the march of development and success of the province at all levels.

He stressed that the KRG will continue its steps to move forward and that our contracts are legal and constitutional principles stemming from the country's constitution and the law of oil and gas in the Kurdistan region.

Mostafa emphasized the importance of the presence of oil and gas law the Federal to develop this sector and solve outstanding problems.

He explained that the Kurdistan Regional Government reaffirms its commitment that all oil and gas revenues back to the Treasury and the Federal Government is distributed to all Iraqi areas fairly, without discrimination.

At the end of his statement, said Mustafa, the provincial government reaffirms its commitment to the federal constitution declared that Iraq is a federal and not central, but it is based on the sharing of power and revenue.

The Ministry of Oil has seen its contract with the Kurdistan Regional Government company (RWE), Germany, on Friday on the development and delivery of natural gas network with the Nabucco pipeline through Turkey and the European markets, is illegal, declaring his refusal.

http://www.ipairaq.com/index.php?nam...onomy&id=29694