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

Iraq's Federal Government facing major challenges, Kurdistan Premier says

The Kurds are genuine partners in the political decision-making in Baghdad, and the Federal Government in Baghdad is facing major challenges that must be supported, North Iraq Kurdistan Region's Premier, Barham Saleh, has said on Thursday.

"The Kurds are genuine partners in the polical decision-making and we must not forget that the initiative of Kurdistan President Massoud Barzani put an end to the crisis of the formation of the new Iraqi government," Saleh told the Saudi al-Sharq al-Awsat Newspaper on Thursday.

"We are not talking as Kurds, but as Iraqis living within a constitutional federal democratic Iraq, sharing in its leadership and reconstruction.

"We have to be careful to not return to the past, when the policies of marginalization and injustice were practiced against each other," he stressed.

The Baghdad Federal Government "is facing major challenges and must be supported, in order to help it achieve success, as failure is rejected," he added.

Regarding his recent visit to Iran, Barham Saleh said "the three-day visit had taken place in coordination with Iraq's Foreign Ministry, stemming from Iraq's keenness to deepen its regional relations and to protect the political and economic interests between our two peoples, in such a way that respects the sovereignty of both countries."

"We have a political agreement within the process of the new government's formation and participation in it, and those agreements stem from the Iraqi Constitution," Premier Salah said when asked about the suspended dossiers between Kurdistan Region and the Baghdad Federal Government.

"We are waiting for the issuance of the new Oil & Gas Law in the nearest future," he said, adding that "keeping those dossier suspended shall create a problem for all Iraqis, deprive the Iraqi economy from its revenues, whilst we are in strong need for those revenues to boost the economic conditions to serve the Iraqi citizens and build up the country," he concluded.

http://www.zawya.com/Story.cfm/sidZA...Premier%20says

Rebuilding Iraq

The news that the World Bank had agreed to insure an investment by a Turkish company in Baghdad was a long-awaited breakthrough in Iraq, a country which is recently best known for its political stalemate.

The US$5 million guarantee will insure the Karo Dis Ticaret ve Sanayi’s investment in a factory 17km south-east of Iraq’s capital against expropriation, war and civil disturbance and currency risks. The first time such a guarantee has been given, this has been taken both as a sign that private firms are now willing to invest in the country with a level of security.

“It is a nice demonstration that you can do business in Iraq even with a security situation which is of concern to everyone and an environment that is not yet conducive to large projects,” explained James Bond, chief operations officer at the Multilateral Investment Guarantee Agency (MIGA), the World Bank’s insurance arm that is insuring the Turkish company. “It is taking perhaps longer than we all would’ve liked to get the larger complex projects moved forward, but private investment on a smaller scale is happening,” he added.

Iraq’s gross domestic product of about US$12 billion is expected to double by 2014. And changes in regulations, such as the law passed in November 2009 that allows foreigners to own land for housing, have opened up construction opportunities, with the key potential of foreign investment now possible. Meanwhile, away from the deserts of south and central Iraq, Iraqi Kurdistan is serving as a base for companies investing in the country. In late September the construction fair Project Iraq was held, exhibiting 300 exhibiting companies from 23 countries.

“With some $25 billion in housing projects, $8 billion in transportation and $5.5 billion in water and sewage, the Iraqi government is focusing primarily on reconstruction and rehabilitation,” said Fady Darwish, general manager of Project Iraq organiser IFP Iraq.

“Several new cement plants are being either revamped or erected to satisfy a growing need and major international players are now present. Iraq consumes around 15 million tons of cement yearly, with the Iraqi ministry being the largest consumer,” he added.

Erbil itself is one area that is offering serious potential to foreign businesses. The capital of Kurdistan, it is a secure and stable region that acts as the northern gateway to the country and is often called The Other Iraq. Its investment law is cited as one of the most investor-friendly in the region and it has a booming real estate industry.

A number of high-profile, large-scale projects are underway elsewhere in the country, with several projects announced over the past few months. From the early days of reconstruction where basic infrastructure such as roads and power plants were a primary focus, the projects underway have become increasingly diverse and combine to form a list that would not be out of place in many major cities, with hotels, housing and irrigation among those included.

The major hotel management company Rotana took its first step into the country in December 2008, signing an agreement with Summit Hotels for a five-star property in Baghdad’s Green Zone. Dewan Architects and Engineers won the design contract for the project, which will include 300 bedrooms, a ballroom and a conference centre. The 35,000m2 project is currently under construction and is scheduled to complete in 2012. Aimed at both business travellers and tourists, the hotel is intended to become a landmark development for the country. “When completed the Rotana will become one of the pilot buildings in post-war Baghdad – a city which is recovering from years of destruction,” said Dewan executive director Ammar Al Assam. The Rotana Baghdad is one of a number of prestigious projects being undertaken in the city by Dewan, the firm having reopened its Iraq office in 2008 after the previously high levels of violence subsided. It is also undertaking the Bab Al Muraq Hotel and mall complex and the redevelopment of the area surrounding the Holy Shrines in Al Kadhimiya, which will include the restoration of historic buildings as well as new buildings and utilities services.

Competition for the latter project demonstrated the huge interest in construction work in Iraq, with Dewan being chosen from a shortlist of ten international and Iraqi firms bidding for the contract. The design process for the multi-billion dollar project is expected to take five years, with construction expected to continue for 10-20 years.

“The Iraq market offers huge potential,” stressed Al Assam. “There is good potential in Basra, Najaf and Sadr City,” he added.

In the housing market, the overall interest of international firms for available contracts in the housing sector led to the doubling of a target to build 500,000 homes. The government now aims to build one million new homes within three years, with a further million needed by 2015 to meet the shortage caused by war and sanctions. Construction projects for the one million properties have been estimated to have an overall value of US$50 billion. The government has estimated that 85% of home building will be carried out by the private sector and foreign investments. Contracts have already been awarded to firms including the UAE-based Al Maabar and Bonayan International as well as firms from countries as diverse as the USA, Turkey, Germany and New Zealand.

“When we saw the huge interest by giant firms...this made us seize the opportunity instead of 500,000 to reach for one million,” said Iraq’s National Investment Commission chairman Sami Al Araji.

More than 100 firms from countries including USA, UAE, China, Turkey and Canada have reportedly shown interest in the projects. Canadian Traugott Building “When we reach the stage of understanding with any company, we will sign a contract with it immediately,” Al Araji announced earlier this year. Much of the interest follows the setting up by the government of favourable terms to lure companies in, including support that far exceeds that of other markets. IN a country known for its insecurity, the government is aiming to make companies feel secure. “We will bring the land and the buyer, and we will participate in funding the project,” explained Al Araji. “They will not risk any money, they will finish the work and they will sell [the home] to a company which we will establish,” he said.

http://www.arabianbusiness.com/rebui...aq-373225.html

Merrill Ups Estimates of Iraqi Oil Output

Iraq’s oil production could rise to 4.4 million barrels per day (bpd) by 2015, according to a report by Bank of America Merrill Lynch on Friday.

Reuters reports that the revision from 3.8 million bpd forecast a year earlier had been prompted by “higher reserve estimates” released by the government, the bank’s commodities research team said in a note.

The Iraqi government raised its proven oil reserves figure by a quarter in October to 143 billion barrels, placing it third in BP‘s list of global reserves holders.

The research group added that strong emerging market demand growth coupled with falling non-OPEC output would at least partly offset 1.9 million bpd increase in Iraqi output in the run-up to 2015, reiterating that “crude oil prices will have to rise over the coming years.”

Iraqi production rose to 2.6 million bpd in December for the first time in 20 years, but remained below the 3 million bpd it produced in the late 1980s, prior to its invasion of Kuwait.

The bank said it remained “sceptical” that government plans to boost output exponentially by 2020 could be achieved, noting that security problems and infrastructure issues were likely to continue to limit production.

The Iraqi government expects output to rise to 12 million bpd over the next six or seven years according to an announcement by Iraq’s new Oil Minister Abdul Kareem Luaibi [Elaibi] in December.

The bank’s research group broadly forecast commodity prices to move higher in 2011 on strong emerging market growth, and oil balances to remain tight in 2011.

Iraqi economy could double every six years if production reached 6.7 million bpd in 2025, absorbing “some” of the increased output, the group said, adding Iraq might inevitably rejoin OPEC’s quota system once flows reached 4 million bpd.

http://www.iraq-businessnews.com/201...qi-oil-output/

Central Bank: America spent on the reconstruction of Iraq $ 50 billion

The Central Bank of Iraq, Friday, that the U.S. government spent on the reconstruction process in Iraq in the past few years nearly $ 50 billion.

The adviser said the Central Bank of Iraq the appearance of Mohammed Saleh told the Kurdish news agency (Rn) "The United States spent nearly $ 50 billion over the past years of Iraq's reconstruction, but they were not serious because of the administrative and financial corruption and poor disbursement of these funds."

"The inspector general for the reconstruction of Iraq at the Pentagon raised major issues have caused a lot of money wasting than the amount mentioned, including poor planning and project management, as the project is going through several shifts from industrial to service-to farm."

The benefit of that "the projects carried out by the U.S. side was sold from the main company to another company to that of secondary value of the project to reach completion rate without much addition to the financial and administrative corruption."

He explained that the "Iraqi government confirms that 90% of the value of projects carried out by the U.S. side had not been delivered to the ministries and bodies."

The BSA called Pentagon need to clarify the mechanisms for disbursing $ 9 billion on the projects it considers the irreversible majority of which were intangible, but the U.S. side refused to give any details at this time until exit from Iraq by end of 2011.

And supervised by Central Bank of Iraq on the process of disbursement of funds specialized in the reconstruction of Iraq, and organizes the work and cash to deal with companies operating in Iraq, in addition to his painting of economic policy in Iraq.

http://www.aknews.com/ar/aknews/2/210413/

Iraqi Drilling Company is preparing for the drilling and reclamation of 228 oil wells during 2011

Announced that the Iraqi Drilling Company for conducted drilling and reclamation of about 228 wells and include the drilling of 140 wells of new oil in the whole of Iraq, by 76 wells in the national effort of Khalis, some in the fields of Ratawi and Hamrin, Nasiriyah, AGIL and beatitude, and 58 wells will be drilled to contract with companies that are anchored by decades of oil licensing.

The director of Idris Yasiri the Iraqi Drilling Company "of the Sumerian News" that companies tend licenses at the current stage to the reclamation of idle wells and tear and not drilling new wells to increase oil production rates faster and easier.

http://radionawa.com/ar/NewsDetailN....296&LinkID=155

Tariq Harb: Biden's visit to Iraq to determine the zero hour for a U.S. withdrawal

Said the legal expert Tareq Harb's visit by U.S. Vice President Joseph Biden Iraq today were related to many things to discuss with Iraqi officials.

He said the war in a telephone conversation with that this visit will discuss the strategic framework agreement and Chapter VII of the Summit and Iraq's relations with Arab, especially with Kuwait and political issues of Interior, including the formation of the government and the policies of Strategic and only this in common between Iraq and the United States , stressing that Biden's visit is a visit last before setting the zero hour for beginning an American withdrawal, which will be based on his report which he will submit to U.S. President after the end of the visit so that solves the last month of this year and no longer be in Iraq, but military force is simple celebrates the end of the withdrawal, because the direction of President George is the compliance deadline contained in the Convention on the withdrawal of U.S. troops from Iraq and signed in the last month of the year 2008 because this withdrawal can not be completed in two months or six, but it takes a period of up to the end of the current year maximum.

He believed the war to the zero hour will be in one day this month where he begins to withdraw, ending on the date specified by the end of this year.

http://translate.google.co.uk/transl...n&hl=&ie=UTF-8

Iraqi oil: the formation of a higher committee to facilitate the entry of equipment companies winning licenses tours soon

The Iraqi Oil Ministry, on Friday, as will soon establish a joint high to facilitate the entry of special equipment companies winning oil licensing rounds through airports and ports of Iraq.

He said ministry spokesman Assem Jihad, Oil, told the Kurdish news agency (Rn), "The winning companies rounds of oil licensing is worried about the late arrival of equipment at Iraqi ports or airports, but the Oil Ministry intends to form a high level joint committee to coordinate and cooperate on facilitating the entry of equipment oil companies" .

Jihad said that "the functional commissions of the Ministry of Transport confirmed the ability of ports and airports accommodate the equipment oil companies winning licenses in the event of tours organized its work in line with the size of the work of the winning companies to invest in oil and gas fields in Iraq."

He said the "delayed entry equipment oil companies to Iraq would cause confusion to the plan developed by the Ministry of Oil for the development of production of crude oil in the coming years."

Iraq seeks to develop and reality of the oil through the establishment of licensing rounds and encourage foreign companies to invest oil and gas in the country, especially after the Ministry announced that Iraqi oil that Iraq has the third crude oil reserves in the world is estimated at 115 billion barrels after Saudi Arabia and Iran.

And Iraq held three rounds last year for licenses to invest in oil fields resulted in winning several international companies of different nationalities to develop oil and gas fields.

And seeks Iraqi oil to meet its oil production within the next six years to the roof of production ranges between 10 and 12 million barrels per day in accordance with the licensing rounds, entered into with international oil companies after obtaining regulatory approvals from the Organization of the international oil cartel.

The Iraqi Oil announced last September that crude oil inventories in the country has 505 billion barrels of discovered fields, which total $ 66 oil fields, with total recoverable reserves of 143 billion barrels.

The Ministry of Oil in Iraq earlier that it will offer 12 locations invader to invest this year during the fourth round of oil licensing.

http://www.aknews.com/ar/aknews/2/210454/

Turkish companies invest in Kurdistan

Duhok Chamber of Trade stressed on Friday that many Turkish Companies bid to search for an opportunity to invest and advertise in Kurdistan region. Meanwhile the head of Chamber of Trade in Adiyaman Turkish city said that stability in the region encouraged these companies to establish many projects. However, an Iraqi economic analyst said that having many Turkish investments is a Turkish bid to set a political role for Turkey thru trade.

http://www.alsumaria.tv/en/Economics...Kurdistan.html

Emerson Awarded Basra Oil Monitoring Contract

According to a report in The Engineer, Iraq’s South Oil Co. has awarded Emerson Process Management a contract to provide crude oil metering systems and related technologies for the new Al-Basra Oil Terminal (ABOT) now under construction in the Persian Gulf.

The new terminal, which includes both onshore and offshore facilities, will boost Iraq’s oil export capacity by 2.7 million barrels per day. The added capacity will give Iraq increased access to global markets as it expands production from its southern oil fields.
Emerson’s Daniel metering systems will measure the amount of oil as it is transferred from producers to shippers through the Al-Basra terminal. The systems combine ultrasonic measurement technology with diagnostic software that can detect potential problems before they affect accuracy.

The Daniel metering systems will be part of an integrated solution that also includes Emerson’s Rosemount, Micro Motion, Roxar and Daniel measurement instruments; EIM valve actuators; Daniel meter-verification technology; and DanPac measurement and control systems with Daniel flow computers and DeltaV controllers and software.

Engineering work is already in progress, with project completion expected in 2013.

http://www.iraq-businessnews.com/201...ring-contract/

Irregular oil flow from northern oil fields towards Turkey

A source in North Oil Company said on Friday that oil pumping from the northern fields towards Turkey is irregular because of the fluctuation in the production rate in a number of Kirkuk fields. However, the current year is expected to witness an increase in production rates to reach 900 thousand barrels a day.

http://www.alsumaria.tv/en/Economics...ds-Turkey.html