Thread: Iraqi/Dinar News before 3-12-2007 7:45PM CentralTimeZone

Three cheers for Iraq's new hydrocarbon law.
By Christopher Hitchens
Posted Monday, March 12, 2007, at 12:28 PM ET



The recent hydrocarbon law, approved after much wrangling by Iraq's council of ministers, deserves a great deal more praise than it has been receiving. For one thing, it abolishes the economic rationale for dictatorship in Iraq. For another, it was arrived at by a process of parley and bargain that, while still in its infancy, demonstrates the possibility of a cooperative future. For still another, it shames the oil policy of Iraq's neighbors and reinforces the idea that a democracy in Baghdad could still teach a few regional lessons.

To illustrate my point by contrast: Can you easily imagine the Saudi government allocating oil revenues so as to give a fair share to the ground-down and despised Shiite workers who toil, for the most part, in the oil fields of the western region of the country? Or picture the Shiite dictatorship in Iran giving a fair shake to the Arab-speaking area of Khuzestan, let alone to the 10 percent of Iranians who are both Sunni and Kurdish? To ask these questions is to answer them. Control over the production and distribution of oil is the decisive factor in defining who rules whom in the Middle East.

The Saddam Hussein dictatorship, with its record of mass murder against Shiites and Kurds, can be explained partly by a Baathist ideology that subordinated everything to the leader and to the state. But—without wishing to be overly Marxist on the point—I would argue that it was also determined by an economic imperative. The Sunni minority, and especially the Tikriti minority of that minority, lived in areas of Iraq where oil was relatively scarce. In order for it to exert control over the country's chief national resource, it had by definition to act as an almost colonial power in the Kurdish and Shiite provinces, with results that are well-known. (It also had to invade and annex Kuwait to make up the huge self-inflicted deficit created by its invasion of Iranian Khuzestan.)

But there is, in fact, enough and more than enough oil for everybody in Iraq. And important new fields are being prospected all the time, most notably and recently in the Anbar province, where al-Qaida forces have been making their strongest challenge. Here, as across much of the rest of the country, the visitor stands amazed at the sheer abject poverty and misery of people who are living in what is potentially one of the richest countries on earth. Iraq has the third-largest oil reserves of any nation, and that's if you take the lowest estimate of its reserves. Its oil is of purer quality, and nearer to the surface, than that of many of its rivals. A dusty and hopeless city like today's Basra could be, as one minister told me excitedly last December in Baghdad, "as rich as Kuwait in five years." The new law proposes a federalized control over oil and gas, with a distribution of revenue that would be in proportion to the population of each province. To put it another way: The very element that greased the weaponry of dictatorship and aggression could, with a certain amount of nurturing, become the economic basis of a federal democracy. I must say that it sounds worth trying.

On the left and in the anti-war camp, the very mention of the word "oil" is usually considered profane: a Brechtian clue to the secret designs of neoconservatives. So, I was interested to see Christian Parenti, a staunch foe of the Bush policy in Iraq, saying in the March 19 Nation that "on key questions of foreign investment and regional decentralization versus centralized control, the law is vague but not all bad." What have Iraqis got to lose here? It's not as if a withdrawal of foreign investment would leave the oil as a trusteeship for the people. Remember that Iraq under Saddam had already seen the most extreme form of "privatization," with the whole industry a private fiefdom of a parasitic elite. Remember that no real investment was made in the oil fields for almost 20 years, so that when experts visited the refineries after 2003, they could not (in the words of one I spoke to) "find anywhere even to put a Band-Aid." Remember that the Baathists used the "oil for food" program to sow corruption throughout the United Nations. Remember that Saddam Hussein set fire to the Kuwaiti fields and also ordered the taps opened so that crude oil would flow straight into the seawater of the Gulf, destroying the marine habitat. After all that, even Halliburton must come as a blessed relief.

Of course, all this is still heavily overshadowed by the daily menace of vicious jihadist sabotage, of corruption in a sectarian oil ministry, and of the generally parlous state of the infrastructure. And the deal has yet to be approved by the Iraqi parliament—a body that has some difficulty in meeting. Nonetheless, a principle is being established that does great credit to the Iraqis who signed it and to the coalition forces that made it possible. If it were not for the general American feeling that oil is a substance too dirty even to be mentioned in polite society, this consideration might even influence the current debate about an "exit strategy." One would like to know, of those who advocate leaving Iraq, whether they are happy to abandon the control of its fabulous wealth to be parceled out between the highest or most ruthless bidders—say, al-Qaida in Anbar, the Turks in the north, and the fans of Ahmadinejad in the south? Or might it be better to have even an imperfect federal democracy that could be based not just on ideals but on an actual material footing? A country that might, over time, undercut the power currently exerted by Saudi Arabia and Iran? I only ask. And it's no good chanting "no blood for oil" at me, because oil is the lifeblood here, and everybody knows it and always has.

Christopher Hitchens is a columnist for Vanity Fair. His most recent book is Thomas Jefferson: Author of America.

Article URL: Three cheers for Iraq's new hydrocarbon law. - By Christopher Hitchens - Slate Magazine
Copyright 2006 Washingtonpost.Newsweek Interactive Co. LLC

Iraq, Iran agree to build joint oil line
Posted on : 2007-03-12 | Author : Energy News Editor
News Category : Energy


BAGHDAD, March 12 (UPI) Iraq and Iran intend to increase economic cooperation and have signed a deal to build an oil pipeline from Basra, Iraq, to refineries in Abadan, Iran.

Azzaman reports the two countries have increased economic ties and, as part of furthering that, Iran will increase the amount of liquified natural gas it sends to Iraq.

The oil pipeline will begin at Basra, Iraq's major port. Iraq oil production and, in turn, exports, have slumped since the war began nearly four years ago. Production was around 2.6 million barrels per day, and it has dropped to about 2 million bpd. Exports are around 1.6 million bpd.

Nearly all of that is from Basra, because violence has disrupted other exports.

Iraq Trade Minister Abdulfalah al-Sudani signed the memorandum of understanding during meetings in Iran with his counterpart, Saeed al-Kadhami.


Copyright 2007 by United Press International

Nabbed: A Top Al Qaeda Leader Caught

Iraqi Official Describes Suspect as "General Mufti" of Al Qaeda in Iraq
Posted 2 hr. 7 min. ago
By Hossam al-Shahmani

Baghdad, March 12, (VOI) - A senior figure in al-Qaeda in Iraq armed group was arrested on Monday northeast of Baghdad, the official spokesman of the law-imposing security plan said. "Hussein al-Heyalli, the general mufti of al-Qaeda network in Iraq, was arrested and gave us information that will help to dismantle the group," Brigadier Qassem Atta al-Mousawi said in news conference. "Since the beginning of March, 241 gunmen and 700 suspected militants have been arrested," he said in the news conference, which was attended by General William Caldwell, spokesman for the Multi-National forces in Iraq. "A number of hospitals and markets were secured during that period and the security forces played an important role in limiting gunmen's attacks," he noted. The spokesman added "the defense ministry has signed contracts to buy devices for detecting explosives, bomb cars and will be used by Iraqi forces soon." For his part, General William Caldwell said that two brigades of the Multi-National force-Iraq arrived in Baghdad, while a third brigade arrived in Kut, 180 km southeast of Baghdad, and will be in Baghdad in the upcoming days. "The number of forces heading for Baghdad will be completed by June and 7,000 more troops will be deployed, including military police forces, in addition to other 2,000 Georgian troops," General Caldwell added. U.S. President George W. Bush had vowed to send 21,500 extra troops to Iraqi capital Baghdad to support Iraqi government under Prime Minister Nouri al-Maliki. Iraqi and U.S. troops have been involved in a large-scale operation called Fard al-Qanoon (Rule of Law), since mid-February, in a bid to quell bombings and sectarian violence in Baghdad.

Draft Oil Law Dispute in Iraqi Parliament

Unclear What Impact the Debate Will Have on the Controversial Draft Law
Posted 2 hr. 22 min. ago
Iraqi National Slate, IAF object debating draft law on oil, gas
By Santa Michael and Kawther Abdul-Amir

Baghdad, March 12, (VOI) – The Sunni Iraqi Accordance Front (IAF) and former Iraqi Premier Iyad Allawi's Iraqi National Slate objected to the debate of a draft law on oil and gas on the agenda of the Iraqi Parliament's session on Monday. Hussein al-Falluji, an IAF member of parliament, said "we believe that the time is not right for dealing with this issue. We should, above all, deal with security matters before debating this draft." "Socio-political and security circumstances do not allow such a step now, as the draft would allow investment companies to re-wield power over Iraqi oil," Falluji, who belongs to the third largest parliamentary bloc, told the independent news agency Voices of Iraq (VOI) on Monday. In an ordinary session earlier on Monday, the Iraqi Parliament debated a draft law on investment in crude oil and delayed the second reading of a draft law on regulating frequencies, as it was correlated with the law on provinces. The quorum for last Tuesday’s parliamentary session was not reached, prompting members to turn it into a "consultative session" in which they debated a mechanism for the Iraqi legislative house during the coming period. Iraq's parliament is composed of 275 members. The quorum necessary to convene sessions is half the members plus one (139 members). The parliament was scheduled to debate second readings of draft legislation on the higher commission for human rights, amendments to the law on irrigation networks and the law on municipalities and the public works ministry, said the parliament speaker's media director Muhannad Abdul-Jabbar.

One Lucky Shot Takes Down Four Terrorists?

Shows This Iraqi Police TV Commercial In Which Kids Salute Heroic Cops
Posted 18 hr. 14 min. ago


IraqSlogger: One Lucky Shot Takes Down Four Terrorists?!

Parliament was to discuss the oil and gas. The controversy over the
(Voice of Iraq) - 12-03-2007 shall Sotaliraq.com - ÕæÊ ÇáÚÑÇÞ

Parliament was to discuss the oil and gas. The controversy over the draft investment in the oil industry
From the hushed Abdul Amir Muhammad, Dargham
(To add details and views of the deputies)
Baghdad - (Voices of Iraq)
Controversy raged in the House on the Iraqi draft law on investment in the crude oil industry presented by the government to parliament in its today, Monday, and as expected was not offered the government a bill of oil and gas on the new meeting to be filed until tomorrow, Tuesday.
The members of the Parliament a draft law on investment in industry, oil derivatives in the second reading, and some of them scored several observations by ... Some of the language and the other artistic and technical.
He asked the member of the House of the (Iraqi National List), Dr. Wael Abdel Latif, "not to allow foreign companies to invest in the oil industry, but after that there be an Iraqi solidarity ... To encourage the Iraqi private sector. "
He added : "We also must increase the penalties on the companies if it sold crude oil did not repeat it." And Yesterday, the House of Representatives today quorum, which is the first of the parliament in the third legislative chapter ... Headed by Sheikh Khalid al-Attiyah, first deputy chairman of the Council, after an absence of Speaker Dr. Mahmoud Almshahadani the meeting for unknown reasons.
The draft law on the crude oil industry to open the door to the Arab private sector and foreign investment in industry, the liquidation of crude oil in Iraq, according to specific conditions.
This law is different from the oil and gas law approved by the Iraqi government a few weeks. The ruling details of the signing of exploration contracts and the sale of oil in all parts of Iraq, and gave the provinces the right to sign such contracts and access to a fixed percentage of revenues Altoft and gas.
The House did not discuss in its session today the oil and gas, which are still a number of parliamentary blocs opposed to the discussion, at least for the time being, preferring to postpone discussion until the completion of the constitutional amendments.
The other members of the House of Representatives, during today's meeting, to postpone the reading of the law of investment in the manufacture of crude oil "is related to the law of oil and gas."
Reservation and the Minister of State for Parliamentary Affairs Safa net debt to those claims, pointing out that the law "is part of all ... Not directly linked to the oil and gas law,
It can be discussed individually. "
The net that it is "preferable to register their members are written on the law, for presentation to the government," noting that the law "will save the government a lot of money to import oil derivatives, and reduce cost."
However, the economic expert and member of parliament (the Iraqi List) Mahdi Al-Hafiz that "there must be no partition of the oil bills, and considered by one batch."
He added Hafiz, during his meeting in the Parliament today, "government must submit draft uniform laws concerning oil, and is connected ... Because this is not in the interest of the country. "
For his part, drew a member of the House of Representatives (Kurdistan Alliance) Saad Alborznji out that the law on investment in the oil industry "would soon issue to resolve the crisis (in oil derivatives in the country), since its implementation requires several years."
He continued, "to delay the issuance of the law for one month would not be too much, compared to the time it takes the advent of companies to invest in this sector."
According to the version that was read today in the parliament of the draft law, the rationale for the legislation "an opportunity for the private sector to invest in the liquidation of crude oil, would be the establishment of the filter by investment companies as global conditions ... The Ministry of Oil refineries that supply crude oil at world prices, which raised one % ... The transport cost. "
According to the law, he is entitled to the investing company "leasing land for a period of (40) years excluded from the Iraqi Rent Act, and is not entitled to the company that owns the land commended by the liquidator.
There may exploit the leased land for other purposes, and is not entitled to the company dealing in crude oil. "
K m

Any thoughts and or opinions on the parts high-lighted?

Updated: 12:29 p.m. ET March 12, 2007
MANAMA/HOUSTON - U.S. oil services firm Halliburton Co. is moving its headquarters and chief executive to Dubai in a move that immediately sparked criticism from some U.S. politicians.

Texas-based Halliburton, which was led by Vice President Dick Cheney from 1995-2000, did not specify what, if any, tax implications the move might entail. It plans to list on a stock exchange in the Middle East once it moves to Dubai — a booming commercial center in the Gulf. The company said it was making the moves to position itself better to gain contracts in the oil-rich Middle East.

“This is an insult to the U.S. soldiers and taxpayers who paid the tab for their no-bid contracts and endured their overcharges for all these years,” said judiciary committee chairman Sen. Patrick Leahy, a Vermont Democrat.

Rep. Henry Waxman, chairman of the House Oversight and Government Reform Committee, might hold a hearing on the implications, an aide to Waxman said.

Halliburton has drawn scrutiny from auditors, congressional Democrats and the Justice Department for the quality and pricing of its KBR Inc. unit’s work for the U.S. army in Iraq.


“My office will be in Dubai, and I will run our entire worldwide operations from that office,” Chief Executive David Lesar said at an energy conference in Bahrain on Sunday. “Dubai is a great business center.”

Halliburton, which has long been involved in the Middle East, generated more than 38 percent of its $13 billion in oil-services revenue in the eastern hemisphere last year.

Middle East growth
“The company as a whole has continued to diversify internationally, and the Middle East is a point that they have targeted,” said William Sanchez, a U.S.-based analyst at Howard Weil Inc.

“They are being opportunistic in putting the CEO in the middle of the action.”

Sanchez said he believed Halliburton’s move to Dubai was not tax related. Instead he viewed it as a strategic play.

Alan Laws, an analyst at Merrill Lynch, said the move would likely help Halliburton’s position in negotiating large contracts.

Halliburton said it would maintain its legal registration in the United States and was not leaving Houston, where it was currently based.

But Lesar told reporters: “At this point in time we clearly see there are greater opportunities in the eastern hemisphere than the western hemisphere.”

KBR, the engineering and military-services contractor unit that Halliburton is in the process of splitting off, is the Pentagon’s largest contractor in Iraq.

It seems to me that Haliburin knows something is about to happen. Why else would you move your entire business to another country. Something is going on right now and they know what it is

Iraqi Deputy Prime Minister underlines the importance of consolidating relations
(Voice of Iraq) - 12-03-2007 shall Sotaliraq.com - ÕæÊ ÇáÚÑÇÞ

Iraqi Deputy Prime Minister underlines the importance of consolidating relations with Syria سياسي/سوريا/عراق/زوبع��
Iraqi Deputy Prime Minister underlines the importance of consolidating relations with Syria

Damascus-3-12 (KUNA) -- The Iraqi deputy prime minister, peace Alzobai here today the importance of consolidating and strengthening the fraternal relations between Syria and Iraq in various fields.

He said Alzobai, who was received upon his arrival today, Deputy Prime Minister for Economic Affairs Abdullah Alderdri in a press statement that "his trip falls within the framework of strengthening these relations in all levels and to see the situation and the conditions of Iraqis coming to their second Syria," adding that he would meet a number of ministers to discuss ways of cooperation between the two countries, especially in the fields of service in all its forms.

It is noteworthy that the number of Iraqis who came to Syria because of the poor security situation in Iraq amounted to about one and a quarter million Iraqis is expected to rise in the light of the continued deterioration of security conditions there.

The Syrian government has recently made amendments to the mechanism for the Iraqis to establish in Syria allows Iraqi woman coming to Syria to establish order in terms more easily, including securing official documents necessary for the establishment during the month instead of 15 days.

She stressed that "there is no forcible deportation of Iraqis and entrance fees will be imposed on them" the fact that the official policy in dealing with the massive exodus of Iraqis to Syria to be considered "guests on Syria not to the refugees."

The visit coincides Iraqi Deputy Prime Minister with the visit of Assistant Secretary of Khareh American UNE humanitarian Ellen 2003/32, which reached Damascus yesterday to hold talks with Syrian officials on the subject of Iraqi refugees residing in Syria.

Originally Posted by smcquiller1

It seems to me that Haliburin knows something is about to happen. Why else would you move your entire business to another country. Something is going on right now and they know what it is

think ENRON....with the Dems calling for investigations, i'm sure this is a move
that will take all the paperwork out of this country...Haliburton is now being watched eagerly...Halliburton Watch ...but then perhaps i'm reading to much into this....

It seems to me that Haliburin knows something is about to happen. Why else would you move your entire business to another country. Something is going on right now and they know what it is [/QUOTE]

They probably have a few Trillion in IQD stashed in the ME and don't want to pay US taxes on it when it Re-Vals!