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

Iraq awards gas fields as it bids to become major player

Iraq awarded two gas fields at a major international auction on Wednesday that the oil minister said was key to boosting the economy.

The largest of the three fields up for sale went to a Kazakh and Korean consortium while the smallest went to a Turkish and Kuwaiti joint venture.

The Korean Gas Corporation of South Korea and Kazakhstan's KazMunaiGaz won the 50-50 joint venture to develop the Akkaz field, in Anbar province west of Baghdad, which has reserves of about 158 billion cubic metres (5.6 trillion cubic feet).

The winning bid offered 5.50 dollars per oil-barrel-equivalent and a plateau production of 400 million cubic feet per day over 13 years.

The only other bidders for Akkaz were France's Total and Turkey's TPAO, which placed a 50-50 joint-venture bid, offering a price of 19 dollars of oil-barrel-equivalent and plateau production of 0.375 mcf per day.

Siba, the smallest field up for auction with reserves of 34 bcm (1.5 tcf) according to Oil Minister Hussein al-Shahristani, went to a joint venture between Kuwait Energy and Turkey's TPAO.

The two firms, which have a 60-40 split in the joint venture, offered a nine-year contract at 7.5 dollars per oil-barrel-equivalent and a per-day production plateau of 100 million cubic feet.

KazMunaiGaz was the only other bidder for Siba, which is in southern Basra province.
Akkaz, Siba and the third field -- Mansuriyah -- have combined estimated reserves of nearly 317 bcm (11 tcf).

The oil minister opened the auction saying the energy sector could jumpstart the economy by creating jobs and providing much-needed electricity.

Oil and gas contracts are "very important and we hope they will help in creating jobs and providing electricity," Shahristani said.

Iraq needs the energy revenues to cut down on unemployment -- running at 28 percent, according to the United Nations -- and provide much-need electricity to end routine power rationing.

French oil giant Total, Japan's Mitsubishi and competitors from Russia, South Korea, Turkey and India were among 13 companies eligible to bid in the auction which has twice been postponed and which analysts had warned could prove a hard sell for Iraq.
The lukewarm interest was visible in the small number of bidders on Wednesday.

Iraq, which this month upped its figure for proven oil reserves by nearly a quarter to 143.1 billion barrels -- one of the world's largest -- is hoping the auction will do for its gas fields what similar auctions last year did for its oil industry.

In two bid rounds, foreign firms snapped up contracts to develop 10 oilfields, which Baghdad is tapping in an ambitious bid to eventually raise crude output from the current 2.4 million barrels per day to between 10 and 12 million bpd -- more even than oil heavyweight Saudi Arabia.

The eligible bidders on Wednesday were: Italy's Eni and Edison; France's Total; Japan's Jogmec, Mitsubishi and Itochu; Korean Gas Corporation of South Korea; Turkey's TPAO; Kazakhstan's KazMunaiGaz; Russia's TNK-BP; India's Oil & Natural Gas Corporation (ONGC); Kuwait Energy; and Norwegian giant Statoil.

http://www.zawya.com/Story.cfm/sidAN...Major%20Player

Specialists: all laws governing the work of the private sector did not do, despite approval

student dealers and specialists in economic affairs in Baghdad, Tuesday, the Iraqi government to activate the laws relating to the work of the private sector and that is not working in spite of the approval, and to develop clear mechanisms for Iraq's transition from a socialist economy to a market economy.

This came during a seminar held by the Federation of Iraqi Chambers of Commerce under the title role of the private sector in the development process in the presence of a number of businessmen and officials in the state.

The head of the Federation of Chambers of Commerce, Jaafar al-Hamdani during the seminar that the Iraqi economy, "he had recorded a large after 2003 was to adopt a market economy system and give the private sector a leading role to lead the transformation process".

But successive governments, according to al-Hamdani "did not set economic policy and clear mechanisms for the success of the transition process," and the former parliament "passed several laws relating to succeed in the work of the private sector, but it is not activated until now."

And hit the al-Hamadani the ideals of "Investment Law and its amendments, which passed several years ago but we have not seen an effect on the ground despite the granting of the Investment Authority to approximately 450 vacation investment in the whole of Iraq, including 37 in Baghdad this year only," noting that there are "many obstacles preventing the implementation of those projects including the bureaucracy and the need for new laws to help the private sector to perform its role effectively. "

He said al-Hamdani told (Voices of Iraq) that the case of dumping of the commodity and not to activate the law on the protection of domestic production led to a drop in Iraqi industry because of strong competition from abroad, "it may be true that there are" a lot of freedom for the merchant importer, but it is better to support him to prevent investments of outside to inside. "

He did not go the President of Baghdad Chamber of Commerce Amjad Jubouri away from the Ray-Hamdani, and he told (Voices of Iraq) that the private sector needs to "enacting laws that have already been approved and has done the one hand, with the passage of new laws instead of the old suit economy totalitarian and not free."

He pointed out that "the countries that the process of transition to a market economy is not where the process is between the overnight, as it has developed clear rules for moving the new direction," citing the example of Tax Law, "which must be placed to protect the local product and to be attractive to the Iraqi capital from abroad ".

This system also finds Jubouri "could be a major magnet for investment through the provision of exemptions for each of the produced goods within Iraq, which suffers a lot because of energy shortages and rising rent allowances."

As for the banking sector, as seen Jubouri "must be amended its law and ease the burden of profits and interest rates high, to play a part in the granting of credit to investors, while promoting the role of banks to enter the project to be able to move the economy."

The businessman Sami Salman Fall told (Voices of Iraq) that "the private sector under a market economy system is to be accorded state institutions, and not the opposite situation that happen in Iraq."

The private sector needs, according to Salman to "leap at the age of its own laws with the application on the ground and activate what has been passed," which is "take time, especially that found a large dumping of the commodity, which suffers from Iraq had destroyed its economy."

A businessman, who preferred anonymity told (Voices of Iraq) that "the laws passed by the House of Representatives earlier in the year when the application was the gaps caused disrupt work out", for example, "investment law, which is the best of what exists in the region suffers from a gap task is not to divide the investment in sectors. "

The public, "says the businessman" is able to confuse the work of the law, Fmstelzmat work in the tourism sector for example, does not look like the housing sector requirements, and so on.

As for attracting investment from outside Iraq, "winners" based on global standards of 12 points, including political stability, security and the legislative and the amount of fluctuation of currency and interest rates and the availability of infrastructure ", which is most likely" not available in Iraq, will not be able law of attraction even if it is fully and without gaps. "

For his part, said the President of the Department of Economics at the Institute of Mustansiriya Abdul Rahman Najm al-Mashhadani told (Voices of Iraq) that the Iraqi economy "was mentioned in the Constitution twice, first when talking about oil and gas law in which he stated that they belong to the people of Iraq," The second "When he said that the State seek to shift to a market economy, which leaves it without any controls or mechanisms. "

He added that Iraq and al-Mashhadani, this very moment ", had no clear philosophy, while building a market economy system, but each subsequent practice has given the biggest role of the public sector."

But al-Mashhadani, at the same time not leaving the state of the economic process in general, "the state to inform an important role in the transformation process through the enactment of legislation and monitoring the market to avoid a crisis and protect the institutions from corruption."

He called al-Mashhadani, the Iraqi parliament next to "enacting laws that have already been approved with quickly pass economic bills that stalled during the previous parliamentary session," including ensuring "activating the role of the private sector in the development process on the one hand, and activating the role of the state in monitoring and implementing the transition to market economy on the other hand."

http://ar.aswataliraq.info/?p=253374

Iraq energy industry key to boosting economy: minister

Iraqi Oil Minister Hussein al-Shahristani opened an international auction of three gas fields on Tuesday, saying the energy sector could jumpstart the economy by creating jobs and providing much-needed electricity.

"Wednesday's auction aims to increase gas production to supply local needs, generate electricity, fuel factories and place Iraq among the regional and international gas producers and exporters," oil ministry spokesman Assim Jihad quoted Shahristani as saying.

Iraq needs to increase its oil and gas revenues to rebuild its war-battered economy, in which unemployment is running at 28 percent, according to the United Nations.

French oil giant Total, Japan's Mitsubishi and competitors from Russia, South Korea, Turkey and India are among 13 companies eligible to bid in the auction which has twice been postponed and which analysts have warned could prove a hard sell for Iraq.

http://www.zawya.com/Story.cfm/sidAN...%3A%20minister

Headline inflation by 1.0% for the month of September

A Central Bureau of Statistics in the Ministry of Planning, the headline inflation rate of 1.0% for the month of September and by 2.7% from September to the year 2009, according to a statement issued Monday.

The statement, received by the agency (Voices of Iraq) a copy of the Central Bureau of Statistics "completed inflation report for the month of September 2010 which was prepared on the basis of field data collection for prices of goods and services, the total index of consumer prices 127.3% in the month of September 2010 recording an increase by 1.0 % from the previous month and increased by 2.7% compared with September 2009. "

The statement continued, "recorded prices in Kurdistan in September 2010 compared to the previous month rise of 1.3% resulting primarily from the increase in the prices of food and non-alcoholic beverages by 3.1%, and the prices of clothing and footwear by 0.3%, and housing prices increased by 0.3%, and the prices of household furnishings and equipment by 1.9% and health by 6.3%, and the prices of recreation and culture rose by 1.1% and restaurants by 0.1%, and the prices of miscellaneous goods and services by 1.5%. "

"In the central region recorded prices in the month of September 2010 compared to the previous month increased 0.9% resulting primarily from a rise in prices for food and non-alcoholic beverages by 2.1%, and the prices of household furnishings and equipment by 0.2% and health by 0.4%, prices of Contact by 9.6%, and the prices of restaurants increased by 0.1%, as well as the prices of miscellaneous goods and services by 0.2%. "

In the South, as stated in the statement "recorded prices in the month of September 2010 compared to the previous month, a stable increase of 1.2% resulting primarily from a rise in prices for food and non-alcoholic beverages by 3.0%, prices of clothing and footwear by 0.3%, and housing prices increased by 0.1%, and prices household furnishings and equipment by 0.8% and health by 1.4%, and transport prices by 0.1%, and the prices of contact by 0.1%, and the prices of recreation and culture by 0.4% and restaurants by 1.9%, in addition to prices of miscellaneous goods and services by 0.8%."

http://ar.aswataliraq.info/?p=253074

Maliki presents investment contracts to States for its efforts to push towards the Iraqi position on the waiver

The Prime Minister and president of a coalition of law Nuri al-Maliki to win regional support for his survival as prime minister.

A senior official in the state of law, told Reuters that al-Maliki presented to the Arab States investment contracts for its efforts to push Iraq toward compromise its position.

The source added that al-Maliki has a big problem called the Iraqi List, indicating that there is a strong current inside Iraq is looking forward to deal with Maliki, but fear of neighboring countries.

The source explained that al-Maliki needs of those countries to put pressure on Iraq in order to gain support, pointing out that Maliki is both willing to give in return, those countries oil at preferential prices and give them the investments

http://radionawa.com/ar/NewsDetailN....297&LinkID=158

Shahristani called the third round of licenses for the fields of invasive

Fired and oil minister Hussain al-Shahristani, Wednesday morning, the third round of licenses for the fields invasive.

At the outset of the meeting was to receive and open competitive loans for international oil companies qualified.

It was a media adviser to the Ministry of Oil Assem Jihad said earlier that the three gas fields Akash field in Anbar province and is expected to include the chagrin of the gas well and field Mansuriyah in Diyala province, which is smaller and the field of Sepah in the province of Basra.

It is noteworthy that the Anbar provincial council refused to (12-10-2010) export gas field crutch, which is estimated reserves at 2.1 trillion cubic feet, but after being processed within the province, according to the President of the Council

http://radionawa.com/Ar/NewsDetailN....338&LinkID=155

US plays down importance of Maliki visit to Iran

The United States on Monday played down the importance of Iraqi Prime Minister Nuri Al Maliki's visit to Tehran.

"Prime Minister Maliki is visiting Iran today. I wouldn't over-interpret this.

We understand that Iran and Iraq are neighbors. They have to have a relationship," State Department spokesman Philip Crowley told reporters.

"But we certainly think that Iran can be a better neighbor by respecting Iraqi sovereignty and ending its support to those who use violence in Iraq," Crowley added.

http://www.alsumaria.tv/en/Iraq-News...t-to-Iran.html

17th Otober 2010

Genel Enerji Sells Iraq Oilfield Stakes for $175m

Turkish oil company Genel Enerji AS has reportedly agreed to sell part of its stake in three northern Iraq oilfields to South Korea’s UI Energy Corp. for more than $175 million [210 billion Iraqi dinars].

BusinessWeek reports that Genel Enerji will sell 5 percent stakes in the Dohuk and Tawke fields and 10 percent of Miran. The transactions need to be approved by the Kurdish authorities in northern Iraq, the company said.

Genel currently holds a 40 percent interest in Dohuk and 25 percent each in Miran and Tawke. The rest of the Miran field is owned by U.K.-based Heritage Oil (LSE: HOIL), while Norway’s DNO International ASA is the main operator in the Tawke and Dohuk fields, with the Kurdish regional government holding minority stakes in both.

http://www.iraq-businessnews.com/201...akes-for-175m/

17th October 2010

Gulf Keystone Raises $175m in Surprise Placing

Gulf Keystone Petroleum (LSE: GKP), the Aim-quoted oil explorer, has raised £109m ($175m, 210 billion Iraqi dinars) to accelerate its Iraq-based drilling programme in a surprise share placement.

The Financial Times reported on Saturday tha the placement was run by Mirabaud Securities and priced at 140p a share; Gulf Keystone’s shares closed at 143½p on Friday. As of Sunday evening there has been no official announcement of the deal.
The company reportedly declined to comment on the matter.

The money will be used for appraisal drilling at the Shaikan block, as well as exploratory drilling on neighbouring concessions.

Only last month Todd Kozel, chief executive, said the company was well-funded “through to summer of 2011”.

http://www.iraq-businessnews.com/201...prise-placing/

Al Maliki meets his Egyptian counterpart

As part of his regional tour including Syria, Jordan and Iran, outgoing Iraqi Prime Minister Nuri Al Maliki arrived on Tuesday night to Cairo in a one-day official visit.

At his arrival, Al Maliki held a closed meeting with his Egyptian counterpart Ahmad Nazif and a number of officials, a source from Cairo said.

Al Maliki is due to meet Egyptian President Husni Mubarak with whom he will discuss issues of common interest and efforts deployed to form a government in addition to enhancing bilateral ties and boosting Egyptian investment in Iraq, the source said.

Al Maliki will meet as well Arab League Secretary General Amro Moussa.

http://www.alsumaria.tv/en/Iraq-News...unterpart.html