Archive News - Iraqi Dinar Think Tank - 24/01/201 - 23/07/2011

Council of Baghdad: the development of tourism in the capital needed to stabilize the political and security

The Chairman of the Committee of Tourism and Antiquities in the province of Baghdad, Isam al-Obeidi said the development of tourism in the capital need political stability and security.

Obeidi said in a statement to the IAEA by news that the development of the tourism in Baghdad and the advancement of the development of tourism in the capital need political stability and security, and expressed his regret for not getting to this stage so far in spite of slow progress in these two things.

He said the stability in the capital to bring them to their investments in this sector is important due to the inability of the government sector for the events of comprehensive development in the tourism sector, expressing his belief that progress in this area is not the level of ambition (to him).

http://radionawa.com/Ar/NewsDetailN....595&LinkID=155

BANK: Bank assets abroad will be subject to confiscation by creditors

Criticized the Central Bank, has read the Federal Court decision to link independent bodies under the chairmanship of cabinet and not under the chairmanship of the parliament, noting that it constitutes a threat to the Iraqi money.

The bank said in a statement Sdranh Monday and received a "morning," a copy of which was that "we have developed under the auspices of the government according to the Federal Court decision makes the Bank's assets abroad are subject to seizure by creditors."

The bank said that the independence that the "prescribed by law was and is still the only thing that guarantees are not exposed Iraq's financial resources abroad for procedures for the confiscation of international creditors," according to the statement.

The Federal Supreme Court issued a decision in 18 of the month provides a link independent bodies referred to in the Iraqi constitution, including the Central Bank under the chairmanship of Prime Minister directly, not under the chairmanship of the House of Representatives, and the decision came at the request to show a link bodies of Cabinet Office submitted to the Federal Court in second week of December.

The Federal Court's decision to mixed reactions by the political blocs, each supporter of the resolution and some of his shows.

The Supreme Judicial Council on the lips of his spokesman, Abdul Sattar Bayraktar that "the decisions of the court is bound by all the authorities not subject to appeal any decision of its decisions or to resolve the court and re-appointment of other persons," noting that "every point of consideration to any decision by the Federal Court from the standpoint of partisan or personal interests."

http://www.alsabaah.com/ArticleShow.aspx?ID=1514

Iraq court ruling of independent bodies sparks row

An Iraqi court ruling linking the central bank and election commission to the cabinet has sparked widespread criticism that it threatens Iraq's savings and undermines the credibility of the two bodies. Several of the agencies affected have already criticised the supreme court ruling, noting it harms their non-partisan reputation, while opponents of the decision have said it was a move by the government of Prime Minister Nuri al-Maliki to consolidate power.

Among the most prominent critics of the move was central bank governor Sinan al-Shebibi, who warned on Tuesday that the ruling threatened Baghdad's assets overseas.

"Iraq will lose its ability to protect its savings overseas due to this decision," Shebibi said in a meeting with parliament speaker Osama al-Nujaifi, a statement by the legislator's office said.

"The independence of the bank was, and is, still the only guarantee in order to protect the financial resources of the bank, and stop confiscation procedures by international creditors."

With the central bank tied to the cabinet and its independence in doubt, according to Shebibi, its accounts would be seen as an extension of the Iraqi government, and would be open to claims by Iraq's creditors.

Iraq faces a host of potential claims, dating from the 1991 Gulf War, from several countries and many businesses and individuals, after UN Security Council protection of its funds expires in June.

The January 18 ruling put several key bodies under the supervision of the cabinet, arguing that their work was executive in nature, so they should be answerable to the cabinet and not Iraq's parliament. Among the agencies affected are the central bank, the election commission, the anti-corruption watchdog and the human rights commission. The ruling followed a request for clarity on the relevant constitutional clause by Maliki's office on December 2, after a power-sharing agreement had been hammered out by Iraq's divided political factions ending nine months of stalemate following elections, but before the premier had named a cabinet.

Election commission spokesman Qassim al-Abboudi, who is also a judge, said the ruling lacked "any legal basis".

"Connecting the election commission to the government harms its reputation," added Abboudi, a member of the commission's board.

Political opposition to the court ruling has also been swift, including from MPs whose parties are members of Maliki's fledgling national unity government which was formed little more than a month ago.

"We believe that this ruling is wrong, and a politicised decision that will not serve the political process," said Jamal al-Batikh, a senior member of the Sunni-backed Iraqiya bloc which holds 91 seats in the 325-member legislature.

Batikh said Iraqiya would raise the issue in parliament in the coming days. Mahmud Othman, an MP with the Kurdistan Alliance which holds 49 legislative seats, added: "We do not agree that independent commissions should be under the control of the executive authority."

The supreme court, however, has insisted that the ruling is final and cannot be appealed, with judicial spokesman Abdelsattar Birakdar claiming that a practice of linking independent bodies with "executive characteristics" to the cabinet was commonplace around the world.

But its ruling has been questioned by Iraqi legal experts and international analysts. "The independence of these organisations is written into the constitution," said Dhia Saadi, the former head of Iraq's Bar Association. "The decision of the supreme court will impose more restrictions on their actions."

"It is an attempt on the part of the cabinet to absorb all of these bodies with the goal of imposing their will. This step is in violation of the constitution," he said.

Ali al-Saffar, Iraq analyst with the Economist Intelligence Unit in London, described the ruling as "worrying." He said it would perpetuate a view that the election commission, which "has been seen as being politicised," was "just a branch of the government."

It could also "make it easier for political decisions to be carried out by the central bank and that would be quite a tragedy because of the success it has had over the past few years," he said by telephone.

"For people that don't read the fine print, and that's 99 percent of people in the country, it's going to be interpreted as it looks, and it looks like the executive branch is concentrating power in its own hands."

http://www.zawya.com/Story.cfm/sidAN...20sparks%20row

Iraq central bank chief fears assets at risk

Iraq's central bank governor said on Tuesday a court ruling putting the bank under cabinet supervision could threaten its assets abroad and open the door for international creditors to lay claim to its deposits.

Sinan al-Shebibi's warning was the latest in a series of criticisms of a January 18 supreme court decision that ties several key independent bodies to the government.

"Iraq will lose its ability to protect its savings overseas due to this decision," Shebibi said in a meeting with parliament speaker Osama al-Nujaifi, a statement from Nujaifi's office said.

"The independence of the bank was, and is, still the only guarantee in order to protect the financial resources of the bank and stop confiscation procedures by international creditors."

With the central bank tied to the cabinet and its independence in doubt, according to Shebibi, its accounts would be seen as an extension of the government and would be open to claims by Iraq's creditors.

Baghdad owes neighbouring Kuwait around $22 billion in war reparations resulting from Saddam Hussein's 1990 invasion of the emirate, paid out of Iraq's oil revenues.

That is in addition to an estimated $8 billion in bilateral debt and around $1 billion owed to Kuwait as a result of a court judgment over a dispute between the two countries' state airlines.

The January 18 ruling tied several key bodies to the cabinet, arguing that their work was executive in nature, so they should be answerable to the cabinet and not parliament.

Also affected are the election commission, the anti-corruption watchdog and the human rights commission. On December 2, Prime Minister Nuri al-Maliki asked the court for clarification on whether these institutions fall under cabinet or parliamentary supervision.

http://www.zawya.com/Story.cfm/sidAN...ts%20At%20Risk

Concerns over Iraqi central bank

An expert in the law said on Monday that the Iraqi Central Bank of Iraq is an independent board that cant be linked to the Council of Ministers.

The Central Bank of Iraq warned that its foreign assets would be confiscated by the Iraq's creditors if sponsored by the government instead of the parliament.

The Legal expert, Hassan Shaaban, the General Coordinator of Human Rights and Democracy Assembly in Iraq told AKnews that the central bank of Iraq should not be under the supervision of the Council of Ministers because it is a board that should be managed professionally, independently and without any link to the government."

The Iraqi Federal Court issued a decision in January 18 to link the independent boards referred to in the Iraqi constitution, including the central bank of Iraq by the prime minister office directly, not the parliament.

Shaaban added that the Central Bank of Iraq has the right to object and appeal in the Federal Court decision.

The central bank said in a statement issued today that its independency that is provided by the Iraqi law was still the only thing that guarantees its financial resources abroad not to be under the confiscation procedures by the country's international creditors.

http://www.zawya.com/Story.cfm/sidZA...k%20-%20Expert

Iraq to double refinery capacity by 2020 on demand

Iraq, seeking to rebuild its energy industry after years of war, plans to double refining capacity by 2020 to meet domestic needs and allow for exports.

Iraq plans to increase its daily oil processing capacity to 1.5 million barrels by the end of the decade from 750,000 barrels, Iraqi Deputy Minister Ahmed al Shamma told reporters on Tuesday in Tokyo. Daily production was about 530,000 barrels last year because of damage to refineries, he said.

The nation, home to the world’s fifth biggest oil reserves, is seeking foreign funding and expertise to help it boost exports needed for modernizing an economy stunted by years of conflict and sanctions. Crude production has suffered in recent years from insufficient spending and insurgent attacks.

“Output of our refineries is not meeting increasing demand for petroleum products,” al Shamma said. “Cooperation with Japan is essential for the country to upgrade our industries, to acquire new technologies and to build up a cultural relationship between the two nations.”

As part of the capacity increase, Iraq aims to build a 300,000 barrel a day refinery in southern Iraq, which will process crude oil from the Nasiriyah oil field for export from a port in the south, al Shamma said.

Iraq may offer the joint construction of the refinery and development rights of the Nasiriyah oil field, he said.

“This could be made as an incentive to develop the field and develop the refinery at the same time,” al Shamma said. “This is not yet policy but it is in principle accepted by most of our colleagues in the ministry.”

http://www.arabianbusiness.com/iraq-...nd-376191.html

Financial disputes over Baghdad-London flights

The media spokesman for Iraqi Airways revealed on Monday about differences between them and the Nasser Iraqi company that is responsible for Baghdad - London airline.

Akram Luaibi told AKnews that the problems are related to financial ratios for the airline which is 50%, while al-Nasser insist on giving the company 45%.

"The airline company extended its talks to solve the problem as soon as possible for fear of confusing the work of the airline between Baghdad and London during the coming period."

The Ministry of Transport announced on Nov. 13 about the resumption of the airline between Baghdad - London formally after a break for twenty years.

Baghdad-London airline succeeded over the last month at a rate of two flights every week despite the difficulty of finding travelers who leave Baghdad immediately to London.

The Iraqi Airways is one of the oldest airlines in the Middle East and is a member of the Arab Union for Air Transport. It was founded in 1937 by the Iraqi Aeronautical committee, now known as "Firnas" club.

The Iraqi government disbanded on May 26 the Iraqi Airways company after a financial dispute between the company and its Kuwaiti counterpart after it filed a lawsuit against Iraq in the British courts a few months ago where the head of the company Kifah Hasan was detained and the lines between Iraq and London stopped.

http://www.zawya.com/Story.cfm/sidZA...ndon%20flights

ANALYSIS-Tougher times ahead for oil firms in Iraq

* Inadequate oil infrastructure key obstacle for firms

* Iraq has toned down output aspirations * Infrastructure requires billions in investment

By Ahmed Rasheed

BAGHDAD, Jan 24 (Reuters) - The real challenge for foreign oil firms in Iraq is all before them as they face poor infrastructure and depleted reservoirs, which will make it hard to maintain a pace that has put them ahead of schedule so far.

Oil major BP and Italy's ENI took less time than expected to increase output above the 10 percent level that triggers cost recovery.

But at the same time, Iraq has toned down its capacity ambitions.

Officials have begun to speak of 8 million barrels per day (bpd) as the implied target of a series of deals awarded to international oil firms in 2009, down from the 12 million bpd of capacity previously flagged, which would have set Iraq level with top exporter Saudi Arabia.

"The easy part is always the first initial quick raising of production, which actually did not have much to do with anything," said Samuel Ciszuk of IHS Energy.

"Now we have started moving towards the second phase with a proper production capacity increase that is hard to be constructed. The tough work begins now to a certain extent."

To reach the 10 percent initial production target set in the development contracts signed by Baghdad, oil companies drilled a few wells, overhauled existing ones, built small pipelines and repaired old infrastructure.

Progress so far has taken production to 2.7 million bpd, Iraq has said, the highest level in two decades for the war-ravaged nation.

Increased output has come mainly from Rumaila and Zubair fields, developed by BP and ENI, respectively.

To get to the next level of lofty output levels to be sustained over years, the firms and Iraq will need to invest billions of dollars on improvements to infrastructure -- building storage tanks, export terminals and pipelines.

WATER INJECTION

One vital project is a water injection scheme to help increase the amount that can be pumped from the southern oilfields and overcome rapid production decline rates.

The project will be led by U.S. oil major ExxonMobil and could cost above $10 billion.

It would initially be funded by oil firms, and Iraq would need to repay the cost from its oil revenue at a later stage.

In addition, Iraq needs a way to export the extra oil. Its offshore terminals are already stretched to capacity and dilapidated. Its export pipeline to Turkey suffers frequent maintenance problems and is often bombed.

At the same time, the government, which forecasts a 2011 budget deficit of $11.99 billion, is in desperate need of billions of dollars to rebuild after years of war and underinvestment.

The current oil price rally, which has taken the market above $90 a barrel, should help.
"But the problem is not necessarily money ... The bigger question is will you be able to make the infrastructure more efficient," said Raad Alkadiri of PFC Energy.

"At the end of the day, it's a question of governance and policy."

OPEC member Iraq, which sits on some of the world's largest oil reserves, last managed to push oil output to 3 million bpd in the late 1980s, before it invaded Kuwait, which led to a U.S. military retaliation and crippling sanctions.

A Reuters poll in October found analysts expected Iraq's crude oil output to rise to 2.8 million bpd by the end of 2011 and only 4.6 million bpd by 2015.

BACKING AWAY FROM TARGET

That rate of progress would make the previously stated level of 12 million bpd in six to seven years not feasible.

In November, Thamir Ghadhban, a senior oil adviser to Prime Minister Nuri al-Maliki, said Iraq could raise oil output potential to 8 million bpd by 2017.

Since then, others have echoed Ghadhban. Analysts said the adoption of a more realistic target could be in part political and could serve to calm any tensions with other members of the Organization of the Petroleum Exporting Countries.

"I think the initial numbers being thrown around, 12 million bpd within seven years time, was politically motivated. Elections were coming up," said Ciszuk of IHS.

The war-damaged country is the only member exempt from supply curbs under OPEC's system of managing output.

Eventually it will be set a target, and Iraq's output ambitions have been viewed in part as positioning for a high limit, as opposed to achievable targets.

Former oil minister Hussain al-Shahristani said last year he expected an OPEC output limit of no less than that of the group's most influential member, Saudi Arabia.

"OPEC members are convinced Iraq is over-exaggerating with its future production targets, and I think Iraq will succumb to reality at the end of the day and admit such a target is impossible to achieve," said Esam al-Chalabi, a former Iraqi oil minister.

"Reaching 12 million bpd is an impossible target. Where are the water injection projects? Where are the huge storage facilities? Where are the export pipelines? Iraq should answer these issues and only then can it set a high production target."

http://www.forexyard.com/en/news/ANA...-01-24T134349Z

Member of the Commission on oil and energy: the parliamentary vote would open the closed road in front of the National Council

Said a member of the Commission on oil and energy and MP Shahid stream niche non-Furat al-Shara (reluctance) mass of the vote on the National Council for the strategic policies within the Council of Representatives.

Shara said in a statement to the Agency by news arrived Wednesday if political blocs to the path closed around the National Council, it must be resolved by Parliament.

He pointed out that there are grounds strategy adopted by the Supreme Council, including the activation and protection of the Constitution, and the political consensus which provided for the involvement of all blocs in the government, it must be the decision that needs to vote in the parliament constitutionally and serve the interests of the people, and that there will be no bias with a mass at the expense of the other bloc.

http://radionawa.com/ar/NewsDetailN....768&LinkID=151

Hertj Oil announces major gas discovery in Iraqi Kurdistan

Hertj Oil Company announced today the discovery of large gas west of Miran in the region of Kurdistan in northern Iraq, is perhaps the biggest discovery in the country since 30 years. As company announced today.

After completion of the deepening and testing of a field west of Miran 2 well, the management company Hertj estimated that the well may include P90 - P50 of the total quantities of gas, ranging between 6.8 and 9.1 trillion cubic feet, with 42 to 71 million barrels of intensive and between 53 and 75 million barrels of oil.

The chief executive said Hretj, Tony Buckingham, "The discovery of a large field of gas up to 12.3 trillion cubic feet in the same place with exceptional flow rates making it one of the largest gas fields discovered in Iraq."

And it is estimated that Buckingham Hertj will the first production of oil and gas from the well in 2015.

"This discovery has the potential to generate more from the benchmark value for our shareholders and benefit the people of Kurdistan and Iraq."

http://www.aknews.com/ar/aknews/2/213563/