Thread: Archive News - Iraqi Dinar Think Tank - 06/10/2010 - 24/01/2011

American company seeks investments in Wassit

A U.S. company on Thursday held talks with the Wassit council on the investment opportunities in the province, according to the council’s chairman.

“The council discussed on Thursday morning (Oct. 21) investment opportunities with Mike Divhan, director of the U.S. company, the investment opportunities in Wassit,” Mahmoud Abdulreda told Aswat al-Iraq news agency.

“The council highlighted the province’s geographical position as it has long borders with Iran as well as its agricultural areas (around 6.200 million donums),” he added.

“Talks focused on the establishment of a corn oil factory and residential compounds,” he said.

http://en.aswataliraq.info/?p=138188

Programs and targeted training plans to raise the competencies of staff in banks

Association of Iraqi private banks play an important role in bringing the views of the Central Bank of Iraq as a sectoral overlooking the private banks (private) through events and activities of the economic variety we were able to shine a spotlight on them and on the goals and functions of the Association of cross-talk of the President of the Association Mr. Majid Mustafa al-Hassani, who made by the economist.

Hasani said that the main objectives of the Association is with respect to the adoption and support of banking policies in the private sector in achieving the desired banking reform, pointing to the Association in coordination with the Central Bank of Iraq to develop basic concepts aimed at the development of the banking business.

He said that the program of the Association is working on the rehabilitation and development of banking skills of personnel working in private banks and that through organizing training courses in the fields of banking-related services provided by each.

He explained that the Association authored technical committees consisting of a number of tasks is limited to banking experts in solving technical problems, and banking and to propose methods for the solution and push for cooperation between ASEAN and the banks on the one hand and between the banks in the other.

Asked about the importance of the central bank's decision to increase capital of private banks see Hassani, that measures and decisions of the Central Bank is certainly in favor of the banking business out of being is the sectoral supervisory policies, the private banking sector, but banks and views in this regard, although it pro-decisions and is aware of its importance, but was objecting only to the specified time period of the increase has been addressed this matter in consultation with the Central. He pointed out that the style of integration into the banking effort is important and cure of the challenges faced by some banks at the present time to support its activities and raise the value of the shares in the Iraqi market for securities, but the biggest challenge here lies in that most private banks has been and remains one of the Banks family is difficult to integrate into the present time because we are still suffering from a lack of a culture of integration and its importance .. The question that needs time.

As for foreign participation in Iraqi banks have proved their success and experience Balmoktua indicator of this success a reflection on the work of the participating banks and expand their investments and their returns are achieved through the adoption of international accounting standards and oversight neutral check the style of the successful work

He touched the President of the Association of Iraqi private banks Fouad al-Hassani at the end of his speech to the prospects of future work of the Association, through the development and expansion of training center for the Commonwealth and the provision of all requirements of modern training, including the introduction of Arab and foreign experts to train workers in private banks, pointing to the pursuit of the Association to develop the organizational structure with a view to raise their performance in the field of executive management.

http://www.alsabaah.com/paper.php?so...age&sid=110323

Expert banking: investment plans must be accompanied by mechanisms for implementation of ambitious

Banking expert, Dr. Majid picture need to work on the adoption of investment plans well thought out carefully and systematically raise the degree of success of future projects. He pointed to the existence of a bug in the investment plans and programs for it came public and non-detailed. It was not established in the form of projects, and within a specific timeframe.

Graphic said in an interview with the Economist: There is a shortage in the systematization of thinking and observation, as well as in follow-up to financial allocations needed. In addition there is a deficiency in the work to implement these plans and faith in them and put them within a specific timeframe and priorities for the implementation of important projects in the life of the community and follow-up. Indicating that the absence of programs meant moving away from the strict implementation of and follow-up results can not be implementing the achievements that must be served for the set plans. He urged the government to work on the implementation of various promises on the basis of the constitution for economic development and reconstruction.

Image stressed the care of public and private sectors and to activate the real sector which works on the development of the local economy Kalqtaa industrial and agricultural. He pointed out that work without the implementation of programs minutes helps to increase the financial and administrative corruption. Where there is a fundamental problem in the thinking and methodology of the administrative system itself. That works without being systematically to address the problems suffered by the Iraqi economy.

He said we are a nation of consumers suffer the Dutch disease. Where we import $ 8 billion in 2005 but today the figure rose to reach $ 36 billion. This is a leak of Iraqi funds. And not to take advantage of these funds for economic development of actual and real. Where there is no activation of the role of the private sector and year, despite rising chorus for that matter. He pointed out that the budget does not mean the investment plan but is the implementation of allocations between ministries and other work. Also, allocations are not based on valid grounds. Which makes service projects carried out without the required level.

He said there is a need to take advantage of the recommendations of internal and external conferences to expand and attract investments to Iraq. As well as to expand the business in the country. And we have to deal with these proposals professionally serve the reality of the economy and the beneficiaries of the investment law, which works to overcome all obstacles to the work in Iraq through a system of single window as well as modifications that befell the law into its present form. As that of implementing the law requires the presence of an observer following the mechanisms behind the adoption of the law and its implementation. And there will be responsible for the failure to implement the law.

To the economist said Faik Abdul Rasool said the reality of the situation experienced by the country Ittab thinking towards the direction of openness to attract investments to Iraq, even though we talk about this a lot and at all levels but in the fact of the matter. Did not come investments to now because we're not talking about creating an appropriate atmosphere for the presence of investment companies in all sectors, indicating that there is no investor real in Iraq since 1958, turned investors leave to other countries because they do not believe the investment of their money only inside Iraq with ties to Iraq. Which requires us to create a private sector capable of attracting others. And above all must work towards restoring Iraq to its geographical position on the global road map to be the main link between East and West. Etc. This is a great role in achieving economic growth that we seek. Indicated the need to work towards the adoption of a plan by which Iraq Aadpahmip Geographic on the world map. This must be rapid in order not to regional countries ahead of us working in this direction. But do not have the geographical advantages of Iraq. But at the same time have the financial capacity to adopt this project.

http://www.alsabaah.com/paper.php?so...age&sid=110389

International Monetary Fund cut its forecast for oil production ethnic

Reduction of the International Monetary Fund in a report on the first forecast for the production of Iraqi oil, noting that the year 2010 was disappointing. Came the new estimates of the Fund under the first review of the loan granted to Iraq last February and a $ 3.7 billion, has received 1,2 billion from Baghdad.

The IMF said that "the volume of production and exports has been disappointing," saying that the rate of the volume of exports reached 1.88 million barrels per day in the first half of the year ie "less than the target of 2.10 million barrels."

"The bad weather delayed the loading of trucks in the mouths of major export near Basra, while the bombing in April to a temporary interruption of exports tube north through Turkey." He stressed that "internal political difficulties also caused a delay in the planned increase in the volume of exports from the northern fields."

http://www.uragency.net/index.php?aa=news&id22=13116

The Future for the Iraqi Dinar


We get many enquiries at Iraq Business News relating to the future of the Iraqi dinar (IQD), for example:

• Will the Iraqi dinar increase in value?
• Will the currency be re-denominated, dropping the ‘three zeros’?
• Is it wise to buy Iraqi dinar?

Firstly, Iraq Business News is not in a position to give investment advice. Our mission is to provide our readers with the highest quality information on the business and economy of Iraq. We hope that this information will be useful to decision-makers at all levels.

Regarding the dinar, we do not have a crystal ball, but in the past the ramping up of petroleum production has often caused currencies to rise, and it is certainly the plan over the coming years to greatly expand Iraq’s oil and gas output.

Experts debate whether re-denominating the currency (dropping the zeros) would help the economy or change the underlying valuation of the currency, and we present all sides of that debate.

Investors might want to consider transaction costs when buying and selling dinars, and in the event of a possible re-denomination, the costs and practicalities of trading each 1,000 ‘current’ dinars for one ‘new’ dinar.

We would recommend that investors get professional advice before putting any money at risk.

As always, we will inform readers via the Iraq Business News website as soon as we have anything relevant to report.

Best Wishes,

Your Iraq Business News Team.

http://www.iraq-businessnews.com/201...iraqi-dinar/2/

Hassani, alludes to the possibility of approval of his coalition on the initiative of the United Nations

Member of a coalition of law Abdul Hadi al-Hassani said that his coalition will not enter into any new initiative unless it recognizes the other blocs that awarded the National Alliance to form the next government being the biggest bloc in parliament. He suggested al-Hassani told now: the possibility of approval of a coalition of state law on the initiative of the United Nations, sitting briefly in everyone to the table.

Round without conditions in the event of an agreement out of the blocks on the results of a positive and productive and to avoid obstructing the formation of the government as he put it.

http://alanenews.org/news.php?action=view&id=2240

Iraq ‘exaggerates and politicizes’ its oil wealth

Iraq’s bragging about its oil riches, future production and plans cannot be taken seriously, according to a former oil minister.

Isam al-Jalabi, an oil expert with international status, urged the Iraqi government to stop politicizing its oil wealth and tell Iraqis the truth about its oil plans.

“You (the government) should stop politicizing oil and gas contracts … your (oil and gas projects) are not worth the paper they are written on. Your projects have no economic feasibility and are promoted merely for political purposes,” Jalabi said in an interview.

Jalabi was pointing to the latest reports on contracts and projects which include among other things the construction of gas and oil pipelines and the development of oil fields by foreign firms.

He ridiculed the government’s claim that it plans to extend gas pipelines to both Iran and Egypt. He was particularly critical of Prime Minister Nouri al-Maliki promising the countries he visits lucrative contracts if they supported him staying for a second term.

He said oil and gas projects, particularly cross-border ones, required political stability both domestically and in relations with the outside world.

He cited the oil pipeline via Syria which was only used for one year despite its being built more than 70 years ago.

Most of the oil and gas projects the government talks about are still ink on paper, he said.

Numerous foreign firms have signed oil and gas development contracts with the government but none has started in earnest.

Jalabi said both oil majors and countries bordering Iraq were utilizing the government “for their own interests.”

“These countries know very well that (Prime Minister) Maliki is desperate for support to be nominated for a second term,” he said.

Jalabi said Maliki should wait until he is reinstated in office before making such promises and claims.

http://www.azzaman.com/english/index...10-21\kurd.htm

Concerns Over Land Ownership in Iraq

The head of the National Investment Commission, Sami al-Araji, has said that the main obstacle standing in the way of attracting the foreign investment is the ownership of the land on which the projects will be carried out.

He said that the Commission worked to overcome these obstacles but the ownership of the land and administrative laws adopted by some government institutions stood against them.

“The next stage requires great efforts to resolve issues of land ownership and divesting government institutions such as the Provincial Councils and the Ministry of Finance of their land ownership.”

“Investment in Iraq cannot improve unless there is coordination between government institutions.”

The National Investment Commission approved Iraq’s new investment law in 200, and according to the law it is the only body responsible for all strategic investment projects, while the regional and provincial bodies are responsible for investment planning and granting investment licenses in their areas.

http://www.iraq-businessnews.com/201...rship-in-iraq/

UPDATE: Iraq To Begin Paying Oil Companies Next Year -Official

The Iraqi government will start paying costs and remuneration fees beginning next year to international oil companies that won contracts to develop the country's prized oil fields, a senior Iraqi oil official said Thursday.

"We will start next year to pay back companies that reach certain production levels of crude from these fields as set by the contract," the official told Dow Jones Newswires.
The firms will receive their payment in crude oil, the official said.

Iraq signed last year and earlier this year some 11 deals to develop one of the country's vast oil fields. According to the terms of the service contracts Iraq signed with the firms, Baghdad has to start paying back costs of developing these fields and remuneration fees when they achieve a 10% increase in production.

The first consortium to start receiving payment from these mega oil deals would be one made up of BPBP PLC and China National Petroleum Corp., or CNPC. It won the right to develop the supergiant Rumaila oil field in southern Iraq last year and is expected to increase output from the field 10% next month.

BPBP said that it alone would invest some $15 billion in the project over the 20-year-long contract. Independent oil industry sources had said that BPBP and its partner would make up to 15% profit from total revenues of the Rumaila oil field, which holds some 17 billion barrels of proven reserves.

BPBP and its CNPC partner promised to increase production from Rumaila to 2.85 million barrels a day in six to seven years from the current 1.07 million barrels a day.

Under the deal, BPBP holds a 38% stake in the venture, while CNPC has 37% and Iraq's South Oil Co. owns the remaining 25%. The three contractors receive a fixed fee of $2 for each additional barrel of oil produced from Rumaila. The foreign firms would be paid back for all the costs they incur while developing the field.

Companies such as Eni SpA (E), Italy's largest oil company in terms of reserves, along with Occidental Corp. (OXY) and Korea Gas Group (036460.SE), known as Kogas, would be also paid back next year as the are currently developing the giant Zubair oil field with an estimated proven reserves of 6.5 billion barrels.

Eni, in partnership with Occidental Petroleum Corp. (OXY) and Korea Gas Corp. (036460.SE), known as Kogas, set a plateau target of 1.2 million barrels a day for the Zubair oil field, to be reached in six to seven years.

Eni and its partners will be paid $2 for each extra barrel of oil they extract on top of current production at the field.

All contracting companies, however, will be liable for a 35% tax on profits. The consortium will be also paid all costs of developing the field.

http://www.zawya.com/Story.cfm/sidZW...Next%20Year%20

UPDATE: Iraq To Begin Paying Oil Companies Next Year - Official

The Iraqi government will start paying costs and remuneration fees beginning next year to international oil companies that won contracts to develop the country's prized oil fields, a senior Iraqi oil official said Thursday.

"We will start next year to pay back companies that reach certain production levels of crude from these fields as set by the contract," the official told Dow Jones Newswires.
The firms will receive their payment in crude oil, the official said.

Iraq signed last year and earlier this year some 11 deals to develop one of the country's vast oil fields. According to the terms of the service contracts Iraq signed with the firms, Baghdad has to start paying back costs of developing these fields and remuneration fees when they achieve a 10% increase in production.

The first consortium to start receiving payment from these mega oil deals would be one made up of BPBP PLC and China National Petroleum Corp., or CNPC. It won the right to develop the supergiant Rumaila oil field in southern Iraq last year and is expected to increase output from the field 10% next month.

BPBP said that it alone would invest some $15 billion in the project over the 20-year-long contract. Independent oil industry sources had said that BPBP and its partner would make up to 15% profit from total revenues of the Rumaila oil field, which holds some 17 billion barrels of proven reserves.

BPBP and its CNPC partner promised to increase production from Rumaila to 2.85 million barrels a day in six to seven years from the current 1.07 million barrels a day.

Under the deal, BPBP holds a 38% stake in the venture, while CNPC has 37% and Iraq's South Oil Co. owns the remaining 25%. The three contractors receive a fixed fee of $2 for each additional barrel of oil produced from Rumaila. The foreign firms would be paid back for all the costs they incur while developing the field.

Companies such as Eni SpA (E), Italy's largest oil company in terms of reserves, along with Occidental Corp. (OXY) and Korea Gas Group (036460.SE), known as Kogas, would be also paid back next year as the are currently developing the giant Zubair oil field with an estimated proven reserves of 6.5 billion barrels.

Eni, in partnership with Occidental Petroleum Corp. (OXY) and Korea Gas Corp. (036460.SE), known as Kogas, set a plateau target of 1.2 million barrels a day for the Zubair oil field, to be reached in six to seven years.

Eni and its partners will be paid $2 for each extra barrel of oil they extract on top of current production at the field.

All contracting companies, however, will be liable for a 35% tax on profits. The consortium will be also paid all costs of developing the field.

http://www.zawya.com/Story.cfm/sidZW...Next%20Year%20