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

Invitation to monitor the sources of funds entering the country

Register the Iraqi Central Bank in the auction for the sale and purchase of foreign currencies yesterday, selling $ 177 million at an exchange rate basis was 1170 dinars per dollar, a figure which is high compared to sales of the previous meeting, which amounted to 163 million.

The bulletin issued by the Central Bank and the Al-Sabah received a copy of which was that "the total volume of demand for the dollar stood at 177 million and 319 thousand dollars, covered by the central bank at an exchange rate basis was 1170 dinars to the dollar."

The central bank sales during the previous meeting amounted to 163 million and 988 thousand dollars at an exchange rate based on 1170 dinars per dollar.

And distributed auction sales on the "cash sales of $ 1.969 million dollars at the exchange rate was 1183 dinars per dollar," inclusive "commission the Central Bank of 13 dinars per dollar."

With recorded sales by remittances, "the amount of $ 175 million and 350 thousand dollars at the exchange rate 1183 dinars per dollar inclusive of 13 dinars a commission for every dollar."

The bulletin indicated that it "did not make any of the 23 banks participating in the auction, offers to sell the dollar."

The central bank held an auction of five meetings a week starting from Sunday to Thursday for the sale and purchase of foreign currency, and receive a cash commission on the sale of about 13 dinars per dollar, and receive a commission of 13 dinars per dollar on the sale of remittances outside the country.

http://www.alsabaah.com/ArticleShow.aspx?ID=4214

Maliki's office stalling oil company visas

Since early February international companies, including those charged with performing urgent work in Iraq’s oil sector, have been largely unable to secure visas for essential personnel. The prime minister’s office is responsible for the blackout, according to two high-level officials in the Interior Ministry.

As a result of the visa stoppage, international companies of all stripes — oil companies, embassy contractors, security firms, and prospective investors — are facing an imminent crisis. Key people cannot do their jobs because they cannot enter the country. And officials for oil companies contracted by the Iraqi Oil Ministry have said it's only a matter of time – fast approaching – before their work in the field will slow down.

“These companies, and especially the important oil companies — the last couple of months their applications for their visas don’t just go through the Interior Ministry but should go through the prime minister’s office,” said a senior official at the Interior Ministry, speaking on the condition of anonymity. “This is especially for the important companies, investing companies, like the oil companies."

This account was confirmed by a second senior official at the ministry, who said, “These instructions came directly from the office of the prime minister to the Interior Ministry.”

The prime minister’s office did not give a rationale for the new policy or explain the reason for the delays.

When asked about allegations that prime minister’s office was responsible for the eight-week-long visa delay, Ali al-Mousawi, the prime minister’s media advisor, said: “His Excellency Prime Minister Nouri Al-Maliki is aware of that, and there have been some measures issued to ease the process of getting visas.”

At the time of publication, Maliki’s office had not provided details of such measures. Foreign investors have long complained about Iraq’s byzantine officialdom, which can take several weeks to process visas. But in the last two months, many foreign organizations say the bureaucratic machinery has ground to an unprecedented halt.

“It’s become a big issue,” said one senior international oil company (IOC) official. “Probably within another two or three weeks it’s going to directly impact our ability to get people in and do work. There are others in worse conditions than us, too.”

The visa blackout has already delayed the rotation of personnel out of and into the country. Contractors say personnel are being held in country longer than originally scheduled to cover the gaps left by replacements who are waylaid in transit hubs like Dubai and Amman.

"The visas are paralyzing us. We've got no new visas" since early February, said a manager at one service company working for IOCs in southern Iraq. "If we go out, when do we go back in?"

In an effort to boost local employment and training, Iraq has an established policy of restricting visas for unskilled laborers. But the recent blackout is affecting a different tier of foreign visitors — prospective investors, top executives, managers, and technicians with specialized skills. Oil Ministry officials involved with contracting said they don't have visa problems on their radar. But such problems threaten to undermine Iraq’s multi-billion dollar oil investment strategy.

According to the Technical Service Contracts signed by the Oil Ministry and approved by the Iraqi Cabinet, the government is to "provide assistance … to secure and renew all entry visas or work permits for employees of Contractor and Operator or Sub-Contractors." Without such assistance, oil companies – which have already encountered delays in importing basic supplies and equipment – are now largely unable to put their own people on the ground. The government has projected that Iraq will increase its oil production from its current 2.7 million barrels per day (bpd) to over 13.5 million bpd within seven years. Such figures, which many have criticized for being overly optimistic, assume that the government will do its part to ease the logistical and bureaucratic burden on companies.

“I don't know the reasons (for the visa delays),” said Sami al-Araji, head of Iraq’s National Investment Commission. He said he's been able to process visas for investors and that the months-long lag was just raised to him by a private security company.

“This is outside the normal business standards. Anything beyond the normal range is unacceptable.”

One oil industry official estimated each company operating in Iraq’s southern oil hub of Basra is waiting on “hundreds” of visas.

“The backlog is building, the backlog of sending people is growing,” said a senior IOC official.

Iraq has many incentives to woo foreign companies. The country’s reconstruction needs far outweigh even a budget bolstered by oil revenues, so the government’s strategy for economic growth depends heavily on attracting international capital, technology, and expertise. The visa problems, however, are literally keeping investors out of the country.

“If these (oil companies) can't get visas, a small British businessman coming out on spec doesn't have a hope in hell, which is why we all need to work to reverse the current obstacles,” said Alice Walpole, the top British diplomat in Basra. The visa shortage, she said, “will have done irreparable damage, in terms of discouraging some companies."

Now, however, instead of throwing the full weight of their human resources behind Iraq’s oil ambitions, oil companies are being forced to make backup plans.

"People will eventually get reassigned to other projects around the world,” said Mike Townshend, president of BP’s operations in Iraq, when asked what will happen to personnel who aren’t being allowed into the country.

Neither the prime minister’s office nor the Ministry of Interior announced any change of policy. Indeed, almost nobody — from senior diplomats, to company executives, to Iraqi officials responsible for foreign investment — could explain where the bureaucratic pipelines were blocked, let alone why.

“We’re all a little mystified," said an IOC official. "We get different answers depending on who we talk to."

In the absence of clear information from the government, rumors have been flying. Sources at the Interior Ministry dismissed speculation that the visa delays are the result of a slow government-formation process. Visa applications are still being accepted – and, to be sure, visas are still being issued. Lower-level Interior Ministry officials say they've been given no order to deny or stall visas.

It’s not just oil companies who are affected. Private security companies have not been able to rotate in new personnel. Even companies supporting the U.S. Embassy have been held up.

“We are experiencing visa problems for our contractors,” said a U.S. Embassy official. “We have been assured by the (Government of Iraq) that a solution is in the works, but until the solution is realized, it is an area of concern.”

Iraqi staff reporting from Baghdad and Basra are anonymous for their security.

http://www.iraqoilreport.com/politic...ny-visas-5499/

Iraq has been working to raise its oil output to 3 million barrels per day

The Iraqi oil ministry for its efforts to develop its system of export in order to accommodate projected increases in the production of crude oil, which has said it will arrive at the end of this year to 4 million barrels per day of 2.0008 million barrels currently. Iraq has since the early eighties of the last century a wide array of export of crude oil with a capacity of Nominal 6.6 million barrels per day, including a double tube through Turkish territory to the Turkish port of Ceyhan on the card more than 1.6 million barrels. However, the system suffered damage and neglect by the long years of war and siege, which had a negative impact on energy exports.

A spokesman for the Ministry of Oil Assem Jihad told the Kurdish news agency (Rn) that "the power of Iraq productivity of oil fields currently stands at 2.0008 million barrels a day," adding that "The ministry is seeking to increase production to 3 million barrels per day at the end of this year, and this requires Energy export and the largest storage, and output will be after the completion of Almcharig to 4 million. "

He pointed out that "the Dutch company is now established eight oil storage tanks in addition to the D-tubes for the transfer of offshore oil."

There are in the province of Basra, 15 fields, including 10 oil producing fields and five are still waiting for development, notably the North Rumaila and Majnoon and Nahr Umar field and the West Qurna field. These fields contain oil reserves estimated at more than 65 billion barrels, or about 59% of the total oil reserves of Iraq and an oil reserve in the provinces of Basra, Maysan and Dhi Qar combined, about 80 billion barrels, or 71% of Iraq's total reserves. The director of projects in the Southern Oil Company, Uday al-Quraishi's (Rn) "The Southern Oil Company has contracted with a Dutch company and is currently the establishment of eight storage tanks to store oil, which is the first step to build 24 reservoirs," noting that "the capacity of the reservoir one of up to 300 thousand barrels".

He pointed out that "the work was underway to extend the pipes under the sea to transport oil to the port of Basra and the port of al-Amaya," explaining that "the percentage of completion of the draft tubes of 27%, while the percentage of completion of project reservoirs to 70%."

He pointed out that "the value of the contract with the Dutch company Leighton of $ 733 million."

The director of "Leighton" is executing the project that is rare for (Rn) that "work is underway on a daily basis to dig deep in the port of Basra to extend the tubes oilfields," noting that "the work is conducted Bhvarp Harblk conclusive of the soil and clay working capacity of 30 thousand cubic meters is required to get to a depth of 7.5 m to construct pipelines. "

"The company needs to three weeks to finish the excavation work and begin to extend the pipe."

In turn, said the chief engineer at the port of Basra, Abdul-Zahra Mayah's (Rn) "The port consists of four bonded to the oil and the rate of pumping up to 75 thousand barrels per hour."

He explained that "this figure has been achieved during the current year only, as it has not reached this port number in the export of oil since 2003, and this figure is double what was issued two years ago."

He pointed out that "Iraq will not reach the level of energy productivity, which aspires to it to complete the construction of reservoirs to absorb the energy productivity."

The giant international companies in the energy field has won contracts through two rounds of licenses to develop 10 oil fields discovered untapped. Although the Iraqi government predicted the arrival of its crude oil production to about 12 million barrels per day over the next five years, but experts have questioned the production and access to that goal, and said that seven million barrels a day was a reasonable figure.

http://www.aknews.com/ar/aknews/2/225969/

Iraqi Ministry Announces Ambitious Oil Export Goals
Iraq's Oil Minister outlines plans to significantly increase crude oil production and export

The Iraqi Oil Minister has announced plans to establish a new system to export crude oil, as well as a plan to dramatically increase production over the next five years.
Minister Abdel Karim told reporters that the plan included upgrading the existing pipelines through Turkish territory as well as an investigation of new sub-sea pipeline routes, adding that he expected “the first phase of the establishment of the system before the end of this year“.

Iraq had an optimal capacity of around 6.6 million barrels of crude per day in the early 1980’s, but decades of conflict and neglect have meant that the system has degraded down to less than 2.3 million barrels per day. The Iraqi Ministry hopes the new system will help reach an optimum capacity of around 12 million barrels per day within the next five years.

However, experts are questioning the viability of this estimate. According to analysts from international oil companies, around seven million barrels per day within the given time frame is a more reasonable estimate. The former Oil Minister, Ibrahim Bahr al-Ulum, has estimated that Iraq would require closer to twenty years to be able to raise its oil production to the currently proposed level.

Attacks on the country’s oil production capacity and infrastructure continue. Last week, repairs were completed on the Iraq-Turkish oil pipeline after it was disabled by a sabotage bombing in mid February. Oil Ministry Spokesman, Assem Jihad, told Aswat al-Iraq news agency last week that “the Oil Ministry has completed repairs in the damaged Iraqi-Turkish oil pipeline, exporting crude oil to the Turkish Ceyhan terminal on the Mediterranean that was damaged in northern Iraq’s al-Hadhar area, which hampered oil exports.”

The Iraqi Ministry remains determined in its intent to significantly increase production levels, and has petitioned OPEC to raise the ceiling on oil production quotas assigned to Iraq.


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http://www.moveoneinc.com/blog/middl...-export-goals/

49 new business startups registered in February in Iraq

The Trade Ministry registered 49 new domestic companies in February, according to an official statement. The statement, signed Khansaa Iskandar, the head of Company Registry Directorate at the ministry, said the new startups were all registered by private entrepreneurs.

The company also received new applications for offices in the country by 20 foreign firms. Three more foreign firms have asked to open subsidiaries in the country, the statement added.

The statement did not reveal the nationality or specialization of the foreign firms.

The statement said in February the company issued statements permitting 241 Iraqi firms to boost their capital.

There were only eight bankruptcies, the statement said.

Two Iraqi companies were given the permission to register for the Baghdad Stock Exchange, it added.

But there were hundreds of Iraqi companies that violated rules.

The statement said 360 Iraqi firms were reported to the attorney general for violations of a 1997 law which companies in Iraq have to abide by.

The statement did not specify the nature of these violations.

http://www.azzaman.com/english/index...-18%5Ckurd.htm

Japan serious in oil investments in Thi-Qar, South Iraq, Japanese official says

Japan is serious to implement oil investments in southern Iraq’a Thi-Qar Province, the Japanese Foreign Ministry’s Undersecretary, Katsuhiko Takahashi, said on Thursday.

“We are serious to invest in the oil field in Thi-Qar Province and strengthen relations with the local administration there, especially in al-Gharraf Oil Field, (25 kms to the west of Nassirya, the center of the Province), the Japanese official, now on a visit to Thi-Qar, told Aswat al-Iraq news agency.

He said that during his visit to the Province, he had discussed horizons of cooperation with its Governor, “as we find the security situation in the province is good, in prelude to the preliminary stages of investment.”

Regarding the opening of a Japanese consulate in Thi-Qar, he said that the “issue depends on the joint interests and the number of Japanese technicians in the province, as well as the size of interest of taking such decision.”

On his part, Thi-Qar’s Governor, Taleb al-Hassan, expressed rejoice for the Japanese Official’s visit, reiterating “necessity for the Japanese presence in the province, in order to benefit from the Japanese experience, as well as the seriousness and activity of the Japanese companies.”

“We also demanded the Japanese side to accelerate the construction of a hospital in the Province, being part of the Japanese Loan for Iraq,” he said.

Noteworthy is that the Japanese Ambassador to Baghdad, Ogara, had visited Thi-Qar on 29/4/2010, where he told Aswat al-Iraq that discussions for the exploitation of the giant Nassiriya Oil Field would start anew, after the formation of the new Iraqi cabinet.

He stressed that the said step would take place through a Japanese company that would invest, within a coalition of the Malaysian Petronas and the Japanese Japkson companies, carrying out the development of al-Gharraf oil field, whose contract they scored within Iraq’s 2nd Licensing Session, beginning their activity on 26/3/2010.

Noteworthy is that Japan had promised to grant a financial assistance for Iraq, reaching US$5 billions (b), during the Madrid Conference in 2003, in the form of easy-payment credits, including US$3.5 billions (b) for the transportation, water, health, oil and electricity sectors, and US$1.5 billions (b) for urgent aids to carry out reconstruction works in different sectors.

Japan had also granted a 100 million dollar additional grant for Iraq in 2007, promising to decrease its total credits of US$7.6 billions (b) for Iraq, by 80%, within a new time schedule of three-phases, according to which US$6 billions (b) would be cancelled.

Noteworthy is that Iraq possesses huge oil reserves, exceeding 120 billion (b) barrels, i.e. 11 percent of the world’s total oil reserves, holding the 3rd international position, despite minor excavations and development since the 1970s of the last century, whilst U.S. studies had estimated Iraq’s total oil reserves at 350 billion (b) barrels.

http://en.aswataliraq.info/Default1....&id=141518&l=1

IMF Executive Board Completes Second Review Under Stand-By Arrangement with Iraq, Grants Waivers and Approves US$471.1 Million Disbursement
Press Release No. 11/90
March 18, 2011

The Executive Board of the International Monetary Fund (IMF) today completed the second review of Iraq’s economic performance under a program supported by a Stand-By Arrangement (SBA). Completion of the second review makes an additional SDR 297.1 million (about US$471.1 million) available for disbursement, bringing the total resources currently purchased by Iraq under the SBA to SDR 1.069 billion (about US$1.7 billion).

The Executive Board also approved a waiver of applicability of the end-December 2010 performance criteria on the central government fiscal deficit and on the central government spending bill, for which data is not yet available. The Executive Board furthermore approved an extension of the SBA by five months to July 2012, and a rephasing of access under the SBA to match disbursements with Iraq’s balance of payments financing needs.

The SBA was approved on February 24, 2010 (see Press Release No. 10/60) for SDR 2.38 billion (about US$3.77 billion). The SBA supported program aims to ensure macroeconomic stability and provide a framework for advancing structural reforms in Iraq.

Following the Executive Board’s discussion on Iraq, Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair, stated:

“Iraq has maintained macroeconomic stability under difficult external and internal circumstances, while making efforts to rebuild key economic institutions. Inflation has remained subdued, and the exchange rate has remained stable. The 2011 budget aims to accelerate investment in public services and infrastructure, and accommodates higher social safety net provisions to support those in need. Iraq’s rehabilitation needs remain large and the higher investment spending is essential to help create a vibrant private sector that provides employment opportunities for Iraq’s large labor force, thus helping to reduce poverty. At the same time, a strong emphasis on ensuring the quality of public spending will be important.

“Decisive efforts to rebuild key economic institutions and improve governance will be critical for private sector development. The formation of the new government and the expected increase in oil production in the coming years offer an opportunity to do so while maintaining macroeconomic stability. Further strengthening public financial management encompasses the introduction of an automated financial management and information system and improvements in cash management which would eventually culminate in the establishment of a single treasury account. Establishing a framework for oil revenues to succeed the Development Fund for Iraq should help ensure continued accountability and transparency. In the financial sector, moving ahead with the financial and operational restructuring of the two largest state-owned banks and enhancing the central bank’s supervision capacity will contribute to creating a financial sector that can provide essential services to the private sector.

“Iraq continues to make progress to conclude debt agreements and resolve outstanding claims under terms comparable to the 2004 Paris Club Agreement.”

http://www.imf.org/external/np/sec/pr/2011/pr1190.htm

18/03/2011

Central Bank: Our next issue of currency cash allowance damaged

An advisor of the Central Bank of the appearance of Mohammed Saleh, said that our future work on the issuance of currency.

Saleh said in a statement (of the Agency news) today: "that our future is to work on the issue of currency within the system of cash currency reform to help, but this program takes time.

Saleh added: "The policies of the Central Bank of damage and the burning of damaged currency after investigating the cause of damage and there are conditions and instructions prior to splurge, noting that there are some people who offended in use."

He said the central bank adviser: "Iraq currently trading currency in Mtzmrp because he is one of the developing countries and underdeveloped in the use of money, so the Central Bank of the receipt of all categories and the be destroyed within the standards and laws in line with the rules of the Bank".

http://www.ikhnews.com/news.php?action=view&id=10128

Iraq's oil production to reach 10 million bpd in forthcoming few years - official

Iraq’s daily oil production is expected to rise to 10 million barrels per day (bpd) in the forthcoming few years, thanks to the oil deals signed with international oil companies over the past few years, a leading Iraqi oil officials said, Aswat al-Iraq news agency reported.

"Iraq’s daily oil production shall reach 10 million bpd in the forthcoming few years, thing that shall be reflected on the infrastructure, progressing according to the current plans," the Oil Ministry’s Spokesman, Assem Jihad said during a tour in the Southern Iraq’s Oil Company fields on Friday.

Jihad’s tour had covered the Company’s Faw Oil Reserve, the oil terminals belonging to the Company, as well as the Basra and Omaya Oil Fields, in which he said that "such rise in Iraq’s oil productivity shall be achieved in the forthcoming 4-5 years."

Iraq’s current daily oil production from its southern oil fields is 2.7 million bpd, out of which 1.2 million bpd is exported, expected to rise to 3 million bpd by the end of the current year, according to the Director of Faw’s Oil Reserve, Abdul-Muttalib Abdul-Razzaq.

http://en.trend.az/capital/energy/1848591.html

16/03/2011

4th Mobile Phone Licence Could Go for $2bn

Iraq’s communications minister said he expected the country’s planned fourth mobile phone licence to fetch between $1 billion to $2 billion [2.4 trillion Iraqi dinars] in an auction expected by the end of this year.

According to Reuters, Mohammed Allawi said the expected cost for the licence, including installations and infrastructure costs, could be in the range from $1 to $2 billion, correcting an earlier statement he made on Wednesday.

Forty percent of the licence would go to an operator, 35 percent to the public and 25 percent to the Communications Ministry. Iraq’s mobile phone market, which did not exist under Saddam Hussein, has mushroomed since the 2003 U.S.-led invasion that toppled him.

The country held an auction in 2007 in which Kuwait’s Zain, AsiaCell and Korek Telecom — based in the northern Kurdish area — bought 15-year licences for $1.25 billion each.

Allawi said he welcomed Monday’s news about a deal in which France Telecom and Kuwaiti logistics group Agility will buy a 44 percent stake in Korek, but said this did not detract from the need for a fourth mobile phone operator in Iraq.

“France Telecom is going to expand Korek, give it more cover,” he said. “Regarding the fourth licence, the most important thing about it is that we are going for more advanced technology. At present we have no 3G in Iraq, we have no 4G. We have only GSM.”

Eight years after the U.S. invasion, Iraq’s infrastructure is still badly battered and landline and internet penetration remain low. Third-generation (3G) technology would allow data-hungry consumers to surf the internet and download music to handsets quickly on the go.

http://www.iraq-businessnews.com/201...ld-go-for-2bn/