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

Iraq will abide by OPEC quotas in 2-3 years – minister
Iraq’s oil minister has put off further discussions with OPEC about the country’s quota until production ramps up to at least four million barrels a day.

Associated Press reported that Hussain Ali Shahristani had said that this could take two to three years.

“The current production 2.5 million barrels is no match to our potential,” Al Shahristani told the news agency.

“Nobody is really in a rush to discuss (quotas) yet, but once we pass 3.5 or even 4 million barrels a day in two to three years time, we should enter into a very constructive discussion about new market shares.”

After years of neglect, Iraq is starting to rebuild its oil infrastructure and awarded 12 contracts to develop 14 fields last year.

The country has the world’s third-largest proven reserves of oil, and Al Shahristani has previously said that Iraq could boost production capacity to 12m barrels a day.

The oil minister also told AP that the country had no interest in boosting output to lower crude prices, a concern expressed by other members of OPEC.

“Our policy is not to maximise our production, but to maximise our revenues,” Al-Shahristani said. “We are not going to produce more oil than the market can absorb and therefore force the price of oil down.”

http://www.arabianbusiness.com/59597...ears--minister

Robert Gates arrives in Iraq as combat mission ends

Defense Secretary Robert Gates was in Iraq on Wednesday to meet with U.S. troops as they formally close down their combat mission.

The Pentagon chief's plane landed at Al-Asad Air Base, about 100 miles west of Baghdad, just a few hours after President Barack Obama told Americans it was time to "turn the page" on Iraq.

Gates and his entourage then traveled to Camp Ramadi, home of one of the U.S. military's new advisory brigades.

Fewer than 50,000 U.S. troops remain in Iraq, down from more than 165,000 at the height of the fighting. The remaining forces' primary role is to help train and equip Iraqi forces over the next year.

Lt. Col. Buddy Houston, deputy brigadier commander of the 4/3 Advise and Assist Brigade, said there have been no incidents in the last 14 months where Iraqis asked for direct combat help.

Even though Ramadi is in the heart of Anbar province, the cradle of the Sunni insurgency against the initial U.S. occupation, Houston said, "I can't imagine a violent situation where we would have to go back in and re-engage."

Houston said he didn't anticipate, "even under the worst-case scenario," that a civil war could break out in Iraq as U.S. troops leave.

Gates flew to Iraq from Milwaukee, where he told an American Legion audience Tuesday that Iraq's problems had not all been solved.

Still, he expressed "pride on what our troops and their Iraqi partners have accomplished."


http://www.pukmedia.com/english/inde...raq&Itemid=386

Prime Minister Maliki marks end of US-Iraq combat operations

Iraqi Prime Minister Nouri al-Maliki welcomed a 'new stage' in US-Iraq relations today, amid trepidation over the US pulling out before Iraq forms a new government.

Security forces were on high alert as Prime Minister Nouri al-Maliki marked the official end of the US combat mission here by telling skeptical Iraqis that a new day had dawned for their country.

“You are regaining the sovereignty of your country,” Mr. Maliki told a divided nation in an address on state-run TV. “Our relations with the United States have entered a new stage between two equal, sovereign countries.”

Though the US combat role is officially ending, roughly 50,000 US troops remain and as long as they are in Iraq it's possible they'll be involved in fighting.

The withdrawal of the last US combat brigades before tomorrow’s deadline was a victory both for President Barack Obama, who made it a main campaign pledge, and for Maliki, who is fighting to remain prime minister in a new government. Despite a parliamentary election six months ago, a new government has not yet been formed.

Biden stresses urgency.

The timing of Mr. Obama’s plan was decided long before Iraq's political impasse. Many Iraqis blame the political vacuum for ongoing attacks – some of which are suicide attacks that US officials say are being carried out by remnants of Al Qaeda in Iraq.

Unlike June 30 last year, which was declared a day of national celebration as US troops withdrew from the cities, the capital was somber on Tuesday.

“Do we celebrate suicide?” asks Abu Tariq, an army officer in central Baghdad. He says that the US military drawdown – even while Iraq's borders remain porous and there are "political divisions within the security forces” caused by a system that allows political parties to nominate officers – "is suicide for the Iraqi people and a stable Iraqi state.”

“I don’t say they should stay – but the timing is so wrong. At least wait until we have a government,” he says.

In talks with Iraqi leaders on Tuesday, visiting Vice President Joe Biden said forming a coalition government that could improve service provision to the people and fashion a new post-war relationship with the US is an urgent priority.
Status of US troops in Iraq.

Under a status of forces agreement between the two countries, all US troops are to withdraw by the end of next year. The Sept. 1 deadline for the end of combat operations was an additional marker that was part of Obama’s withdrawal plan.

US forces have not carried out unilateral combat missions since June of last year, when Iraq took full responsibility for its own security.

After Tuesday, US soldiers will no longer engage in joint combat missions with the Iraqi military and will be relegated to small groups advising Iraqi forces. They will still be able to conduct missions to protect US personnel and US installations, including new diplomatic missions planned for four Iraqi cities.

Although the Iraqi security forces have improved dramatically, most officials believe it will be years before they are capable of defending their borders or air space without the help of other countries.

Rocket and mortar attacks increase in frequency, accuracy.

In Baghdad, all leave for Iraqi soldiers and police was canceled and new checkpoints were set up across the city, adding another level of frustration to Iraqis struggling to get through 115-degree F. heat amid power cuts and water shortages – many of them fasting during the holy month of Ramadan.

http://www.pukmedia.com/english/inde...raq&Itemid=386

D . Kamal Al -Basri said: the legal environment and a favorable climate .. The most important investment incentives

Dr. Kamal stressed the need to activate the visual effect of investment in Iraq to overcome the obstacles to economic growth. Where the Iraqi economy suffers a set of problems , particularly low capital accumulation due to the low level of entry in Iraq and the high rate of consumption.

Be difficult to create the accumulation of capital formation is necessary. Because of this situation it becomes difficult to renew and improve production capacity or technology transfer and market access, economic and therefore foreign investment would contribute to the openness on technological progress and the training of labor, including various technical and administrative levels.

Basri said in an interview with economic morning : You must create jobs with an estimated statistics, the volume of unemployment in Iraq is a large range (25-27%) and here the state alone can not provide additional job opportunities. Have frequently and public sector companies awash with labor, there really is the problem of disguised unemployment must be released, and about the weakness of the domestic private sector critical to the State in creating the necessary opportunities to work without working to encourage foreign investment.

In addition to the problem of weak exports, where he became the Iraqi economy Akthir than any other time depends on the fluctuating oil exports. The industry and construction sectors have disappeared as a result of previous policies for reasons related to poor efficiency of production and remnants of war. Because of this situation, Iraq has been unable to obtain the necessary foreign exchange to finance domestic investment and expand domestic production and raise its efficiency and often leads foreign investment to the development of exports of the beneficiary country to world markets, but no doubt that the hard currency necessary to service external debt obligations and finance the purchase of products Imported and the financing of domestic investment. He continued his speech, in fact prompted the need for countries and their desire to obtain foreign currency from exports to reduce trade barriers and integration into the global economy. Foreign investment and helps countries to diversify their exports and growth in new export products, known as the exports of value - added products.

Basri said that the national banking systems suffer from poor size and smallness and their inability to mobilize savings for development of various sectors of production. And about the weakness of national private sector. Becomes incumbent on the government search for sources of development by providing the best facilities and services incentive to invest in Iraq and competition from other countries.

Add to that Iraq suffers from a number of problems related to production and perhaps the most pressing weakness of electric power and caused problems for humane and productive members of society. Accordingly, we recommend giving this sector a priority again after the oil, because of its impact directly and indirectly in the process of economic development. There are also other facilities represented by ports, railways, roads, bridges, water purification and other municipal projects which need huge investments. The presence of advanced infrastructure and modern catalysts for the development process. At a time of foreign investment, especially direct ones, which are made by multinational corporations of the main factors for the transfer of technology across countries. And that Iraq's acquisition of modern technology would effectively at the local markets through the production of larger and more efficient, and ultimately it affects the development of local infrastructure and lead to lower prices of domestic products.

As well as a burden of external debt is estimated Iraq's debts up to 125 billion dollars. And a financial burden on the economy and a negative factor on the investment climate in spite of the efforts to remove parts of this debt is still a long way to Iraq to address them.

That to deal with debt requires quick search on the sources of extra cash economy. And that foreign investment can be one of these sources.

Optical continued by saying: since the early seventies spread notions of economic openness, and we see countries that refused to foreign investors in the past has become a welcome them and open their arms to North Korea one of the world's most isolated, started to open its doors in search of foreign investment and announced the opening of areas Foreign investment, similar to those carried out by China. He pointed out that many countries of Africa have realized the importance of foreign investment in their growth and development began to adopt a policy Allaslah to attract investment and set up national agencies to encourage investment, while China has opened stock markets fully to foreign investors and registered Record levels in the flow of foreign capital to the country, surpassing the United States as the largest recipient of foreign direct investment. Stressing that States have the investment incentives are Tsagtab investments than others, For example, there are in Russia, industrial base and market, as well as the abundance of natural resources in much larger quantities compared to other countries of Hungary, but the per capita share of foreign direct investment in Hungary in the past decade Several times higher than those in Russia. The reason for this is that Hungary was able to assess the investment climate and political and economic environment is stable and predictable, while avoiding investors Russia due to fluctuations legal, political and economic, have developed Taiwan into a country with an objective conditions for investment and of the policy of economic openness. Have transformed Ireland from one of Europe's poorest countries to one of the most successful of these states and has become a desirable target for foreign investment in less than ten years. On the other hand, has failed several countries in Latin America to attract foreign investors due to the absence of the necessary fabric in the laws and regulations.

http://www.alsabaah.com/paper.php?so...age&sid=107951

Expert credit is due to address the Mosul Dam to the U.S. Army

The Iraqi expert specializing in water resources today, Thursday, that the failure of the collapse of the Mosul Dam due to the role played by the engineering staff of U.S. forces in Iraq.

Abdel-Alim al-Khuzaie told Kurdistan News (Akaniwz) that "the engineering cadres for the U.S. Army has developed an elaborate scheme to prevent the collapse of the Mosul Dam, although the step costly financially but thanks to those staff to save the province of Mosul from floods."

He pointed out that "coordination between water resources and engineering cadres of the U.S. Army was at a high level four years ago when researchers said water affairs and experts that the prospects for significant collapse of the dam."

Khuzai said, "We hope that the Iraqi government approached the United States to keep a team of engineers who follow the work of the dams in the country to bear the risk of those dams in the event because of Thalkha filled and submitted, as well as lack of maintenance in the previous round."

The Ministry of Water Resources has revealed that the loss of Iraq, Mosul Dam is about half a billion dollars annually, while an optimal capacity of a reservoir lake in the dam between 8 and 11 billion cubic meters of water, it is the largest reservoir in Iraq, and is used for agricultural, fish farming and power generation Electricity via hydropower station nearby.

The ministry is currently studying and presentations by the company "Tredi" the Italian company "Power" German Dam to address the problem permanently.

The United States, 2006 and 2007 the risk of the collapse of the Mosul Dam, which may expose the city, the second largest city, is inhabited by more than 1.0007 million thousand people, a wave of water to a height of 20 meters.

The Mosul Dam (450 km) north of Baghdad, was established by a company Germany Italy joint, about 30 km northwest of the city of Mosul, and a height of 113 meters, while the company estimated age about 80 years, and is located on the River Tigris, is the largest dam in the Iraq and the fourth largest dam in the Middle East.

http://www.aknews.com/ar/aknews/2/178940/

Advisor : security improvements boosted the confidence between the government and private banks

The adviser in the Iraqi government ended its mandate today, Thursday, that the improvement of the reality of partial security in the country expanded economic transactions between the government and its institutions, and between the private banks from the point of another.

Salam al-Quraishi told Kurdistan News (Akaniwz) "The Iraqi government promised significant steps to promote the reality and the country's banking through the expansion ports of trust between them and the private banks and activate the circle of economic transactions."

He added: "There is no doubt that the economic situation in Iraq has been confused since the political change that has happened in Iraq until 2006, but the efforts made by the Iraqi government was successful in promoting confidence among private banks and government institutions."

And that "private banks in Iraq were able to find their place in Iraq after the presentation of the project aims to integrate more than 20 private banks in financial transactions and banking."

He explained that "the ability of the banking financial transactions made by 12.9 which is good because Macarna in previous years."

The central bank recently launched liquidity rate of 5% of the cash reserves of banks with a view to highlighting the role of the private sector in the economy.

http://www.aknews.com/ar/aknews/2/178751/

Sorry if already posted

The Rush is On for … Everything!

US President Barack Obama delivered a major speech from the Oval Office on Tuesday, marking the official end of combat operations in Iraq.

As just over 50,000 US troops will remain in the country until the end of 2011 in non-combat roles, the real significance of the military draw-down is hotly debated.

But it is clear that the US remains committed to the success of the Iraqi mission, and the transition from Operation Iraqi Freedom to Operation New Dawn will continue to require considerable investment of both money and political will over the coming years.
By no stretch of the imagination is the West simply walking away.

Vice President Joe Biden is again visiting Iraq and trying to coax the political factions to find some solution to the ongoing electoral stalemate. The latest snippets of information point to a possible agreement within days, but given the history of this election we shouldn’t get too excited just yet.

And in the business arena, activity is clearly increasing, especially with regard to oilfield development. To quote a headline from Forbes yesterday, “As U.S. Troops Move Out Of Iraq, Oil Companies Move In”.

The article concludes, “The rush is on for Iraqi oil”. And while oil will be the driving force, it’s fair to say the rush is on for Iraqi oil, gas, roads, rail, housing, jobs … the list is practically endless.

http://www.iraq-businessnews.com/201...a6-everything/

USA and Iraq start off a new era

The US troops in Iraq officially started off a new phase of operations dubbed 'Operation New Dawn', headed by General Lloyd Austin who replaced General Raymond Odierno.

During a ceremony held in Al Faw palace attended by US Secretary of Defense Robert Gates and senior Iraqi military and political officials, US Vice President Joseph Biden said that freeing Iraq task came to an end however USA engagement will carry on through New Dawn Operation that is to start today, he uttered.

http://www.alsumaria.tv/en/Iraq-News...a-new-era.html

Gulf Keystone a Takeover Target?

Speculation that Gulf Keystone Petroleum (LON:GKP), which has significant operations in Iraqi Kurdistan, will become a takeover target continues today, following a report from small-cap broker Daniel Stewart & Co.

Following an analyst field trip to the Kurdistan region of Northern Iraq, the broker’s oil and gas expert Richard Nolan said the company had “astonishing reserve potential”.

Nolan highlighted that the size of the Shaikan discovery (4.2 billion barrel mean resource) has been a ‘well known theme’ and ongoing drilling could expand the resource further.

According to Nolan, the potential to add 500 million barrels from two shallow zones – which would otherwise represent a significant find all by itself – shows the “sheer scale” of the Shaikan discovery.

Crucially, further drilling may provide a substantial increase to the Shaikan resource, to between 18bn and 20bn barrels – should the company determine an oil/water contact point at 2,230m – a level suggested by pressure data.

Nolan estimates that the Shaikan-2 well will target the oil-water contact point in Q1 2011, and provide more clarity on this aspect of the analyst’s investment thesis.
“A similar analysis across all of the blocks could see resources of 60bnbbl or more and with a recovery rate of about 30%.”

He added: “Gulf Keystone could be sitting on a giant on an equal footing to the Kirkuk field which has been producing for more than seventy years and still flows at 400,000 – 500,000b/d … Any company with Gulf Keystone’s size of potential reserves will surely appear on the acquisition radar of many NOC’s [National Oil Companies] and IOC’s [International Oil Companies].”

That said, Nolan described the Gulf Keystone’s investment case as ‘a race against time’, with the analyst highlighting a need to accelerate drilling.

Nolan emphasised that major IOCs and NOCs have had reserve replacement issues for several years. According to Nolan, Gulf Keystone can maximise value by proving up resources on its other blocks, before it becomes a bid target.

“At present Gulf Keystone has good information on Shaikan. They could make a compelling argument to any prospective buyer to pay for those assets … It would be a more difficult discussion for the other blocks”.

[If] Gulf Keystone becomes a target, then they should be doing as much as possible to prove their resources, especially drilling.”

The analyst believes it is “highly probable” that a new rig will be secured on a short-term contract to accelerate drilling. “To make up for lost time and to increase value, getting the rig now makes a lot of sense else Gulf Keystone runs the risk of leaving a lot of value on the table.”

http://www.iraq-businessnews.com/201...keover-target/

Zamily calls parliament to enact laws to boost Iraq economy

Head of Baghdad Investment Commission Shaker Al Zamily called the upcoming parliament to enact laws related to late payment and that in order to boost the country’s infrastructure after enacting the same was delayed by the former parliament. Zamily pointed to this project’s positive income as to providing many job opportunities to end unemployment.

http://www.alsumaria.tv/en/Economics...q-economy.html