Dubai is in the general area. Safer, more luxuries etc
and i agree " you can bet it will be profitable "
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Dubai is in the general area. Safer, more luxuries etc
and i agree " you can bet it will be profitable "
Three cheers for Iraq's new hydrocarbon law.
Slate - [13/03/2007]
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.
http://www.iraqdirectory.com/DisplayNews.aspx?id=3400
Iraq reduces the price of oil in April between 20 to 30 cent a barrel
Translated by IRAQdirectory.com - [13/03/2007]
An Iraqi oil official said on Monday that Iraq reduced its official selling price for Basrah light crude oil from April loading between 20 to 30 cent a barrel by destination.
The Iraqi oil marketing company (SOMO) reduced the April price to American buyers by 20 cents compared to the figure in March for the second month in to be less than $ 6.90 from West Texas crude.
April price was also reduced to European buyers by 25 cents compared with the month of March to be less than $ 5.70 from deferred ships fuel.
Buyers in Asia will pay less than the prices of Oman / Dubai crude by $ 2.55 for deliveries in April, down 30 cents from March.
Iraq exports around 1.5 million barrels a day of crude oil from the port of Basrah.
http://www.iraqdirectory.com/DisplayNews.aspx?id=3405
Iraqi Trade Minister : to increase economic cooperation with the countries of the world,
Tuesday, March 13, 2007
Iraqi national-Luna / Baghdad office / farmer, Dr. Abdul Hassan, the Sudanese Minister of Commerce, said that Iraq had started a new chapter of economic and trade cooperation with many countries of the world.
In a press statement to the Ministry of Trade received national news agency, a copy of which was Iraqi, "during his meeting with the Sudanese Ministry of tables, working in the Foreign Economic Relations Department that the Iraqi government is willing to increase economic cooperation with various countries of the world in order to create new frameworks previous closes files and put up new vistas of cooperation and to serve Iraq and these countries. " The statement added that "the ministry is serious in implementing these endeavors through emphasis on the signing of joint agreements in all fields and to promote relations with all of South Korea, Iran and Syria, in addition to a broad program in this area."
The Sudanese to "the importance of closer relations information on each of these States and work on the files show the information to facilitate the task of the joint committees working on more than one level and the tendency to develop relations and resolving pending problems caused by the conditions of the previous stage."
As the Sudanese "that the ministry relies on new programs in information technology and provide better mechanisms including help to upgrade at the business, economic and strengthen Iraq's economic relations with the countries of the region and the world."
وكالة الانباء الوطنية العراقية - ونا: وزير التجارة العراقي : زيادة التعاون الاقتصادي مع دول العالم
Economic : economic symposium : oil and gas law paves the way for the advancement of the new economic reality of Iraq
14.03.07
Called for not exaggerating production quantities in order to preserve the generations share
Baghdad-Haider spring
A number of oil experts and economists and policy that the new oil and gas met many of the goals are to promote economic cooperation by Iraq, others think that the referral of the law to the greatest possible specialists in the economic and oil
They stressed in the symposium, which was brought by the Iraqi Center for Economic Reform on the discussion of the draft law provides that the sponsor of many aspects of the promotion of modern technology by attracting major oil companies, and the equitable distribution of revenues between regions, as well as maximizing the resources of the State to provide funding for two prospecting and oil. He cautioned participants to the need not to exaggerate quantities of oil production because the oil belongs to all Iraqis and future generations.
Completion of the law for all Iraqis
(Morning) attended the symposium and met Oil Minister Hussein Shahrastani, who pointed out that the law is an achievement for all Iraqis because of its positive impact and the important and crucial to the fabric of national unity, pointing out that the law has Iraq's interests first, and all share based on considerations of national Assembly.
Shahrastani said that the most positive aspects of the law is that it restores life to the National Oil Company, and will have the greatest and the Iraqi fields currently producing, in addition to the fields close to the current production of about 40 gas fields, and will be earmarked for the National Oil Company.
He pointed out that the pillar of the mission is that all oil revenues regardless of the sources will come to the federal one and distributed among all Iraqis regardless of the region in which they are present.
The Shahrastani had explained during the seminar by some Majaet draft law, with a detailed explanation for all the points that has gone through its review of the draft.
Law contribute to the eradication of unemployment For his part, Minister of Labor and Social Affairs Sheikh Mahmoud Radi that the law in practice and in light of the current situation contains many positive aspects lies in the formation of the Federal Council, which is chaired by the Prime Minister and its membership includes a large number of State officials including ministers of oil, finance and planning in addition to the heads of the companies core oil ministry , and representatives of regions and producing governorates.
He added : This squad is not as a guarantee of substantial deviation from the objectives as well as the oil imports indicated by law and approved by the Constitution before it belongs to the Iraqi people the full, and embodied in the law is clear and unambiguous. This means that the producing regions or provinces do not have the right to dispose of assets of oil as they wish but this act goes to the Supreme Federal Council, which sets oil policy.
It is a positive aspects of the oil imports, which is all oil imports to the one and be under the supervision of the Ministry of Finance, as well as the formation of the so-called law (the future), which is storing the money for future generations of the Iraqi people Permission to use all the funds for the benefit of the current generation, because of the right of all generations and Shahrastani alluded to the need to steer clear of the law on the method of participation and go to other methods, such as contracts approved service and management according to fixed salaries and specific, so must the law away from long-term contracts with major companies to bear the risk, since those companies tend to be exploited and to consider Before considering their interests to the interests of the Iraqi people. With Radzi Sheikh reiterated his call to subject all the conventions of the law had been passed in the oil investment, which stipulates in one of its paragraphs that the employment rate of the Iraqis operator of not less than 75% of that figure will be removed large numbers of the unemployed reduce the size of the unemployment significantly.
Law encourages increase production and accelerate the reconstruction process Kamal al-Basri, Undersecretary of the Ministry of Finance and head of the Iraqi Center for Economic Reform, said that the center will assess other similar symposiums, that the importance of this law in the process of advancing economic realities of Iraq, as well as the views of the largest number of members on the paragraphs of the law.
He said that the objective of the symposium is to search for reasons for the enactment of the new oil, and whether the law can achieve the stated objectives? Why this particular time?
Officials were able to have an input in this regard and to make the public and members of Parliament, intellectuals and journalists the importance of the law and demonstrate the strengths and weaknesses of the law taking into consideration that the oil issue important and significant and of interest to all generations and that 93% of the state budget depends on oil revenue.
He pointed out that the optical law contains many of the most important strengths that the oil company is no longer a monopoly, but there is competition, as the monopoly proved inefficient in production, so when there is competition inevitably will be the best bid.
And the visual that the law encourages the use of modern technology will be transferred to Iraq through the work of international companies and also encourage increased production and accelerate the reconstruction process and make way for investment. He stressed that the optical law does not go into production and exaggerate it confirms that the (law) the need for more investment and production development of the economy because the proceeds oil is not really for the current generation but is only right for future generations.
Law would work to develop the national economy
Central Bank Governor Sinan Shabibi said : that the law is important and will work to accelerate oil production so as to ensure the interest of the Iraqi people and also worked to develop the national economy.
Shabibi added that the positives of the law is that it will build the so-called Future Fund, as well as the oil resources that will deal with imports for the short and long term and that the law emphasizes the need for negotiations with many companies in order to ensure that the interests of the Iraqi economy imports.
Shabibi shows that the law needs to be read more into action There are more issues that need to be defined in detail, however, has obtained an agreement on the outline of how the law and the contract also that (the law) is taken into account the interests of different regions, which serve the interests of the Iraqi economy. He also pointed out that the law will focus on the production considerably, it will accelerate production and then the use of financial resources and give to the state and to the general budget, and these resources will be distributed among regions, according to population density and percentage of the liability for those resources, there is investment trends and consumer trends.
Law developmental revolution will happen in Iraq
Economic Adviser to the Prime Minister Abdullah Albandar finds that Iraq urgently needed for such decisions which have a considerable impact in the development of the economy in general and the development of the country's resources in particular.
He said : Albandar Iraq needs to regulate its economic resources, whether on the level of oil or other resources, to promote the Iraqi economy properly should be equal resources on the least expenditure so that it can also get rid of the budget deficit of Iraqi law and by the issuance of oil, investment or law to activate the private sector or the Law taxes At this stage it is certain that those laws many positive elements.
He adds : Albandar Certainly the best law in Iraq is the oil that oil revenues accounted for more than 92% of the state budget, so I call to consider this law and depth study of all aspects of the law because that would put Iraq in front of a very important step is the activation of the oil revenue, which is one of the most important factors in revolution development in Iraq.
The Albandar out that the oil industry has a very important enter the private sector in one of her task, and may have a particular impact on some of the joints task, but the biggest impact of the oil will be for the government because the investments in this area, a large associated with social and business sectors and the degree high importance.
جريدة الصباح - ندوة اقتصادية: قانون النفط والغاز الجديد يمهد للنهوض بالواقع الاقتصادي للعراق
Anyone have any thoughts on the statement in RED??? Sounds interesting that they should state that the MOF (in charge of oil revenue!!!) needs to recapitalize (infuse cash?=bank reserves?) the CBI ASAP.... Sounds interesting to me, hopefully I am not reaching here.....
This is how this article makes me feel------>:wacko:
But hey, I'm just a squirrel trying to get a nut here.
:toofunny:
Iraq PM Fears Loss Of US Support If No Oil Law By Jun 30-Aides
13.03.07
BAGHDAD (AP)--Iraq Prime Minister Nouri al-Maliki fears the U.S. will withdraw support for his government - effectively ousting him - if parliament doesn't pass a draft oil law by the end of June, close associates of the Iraqi leader told The Associated Press Tuesday.
The legislature hasn't even taken up the draft measure for a fair distribution of the nation's oil wealth - only one of several U.S. benchmarks that are now seen by al-Maliki, a hardline Shiite, as key to continued U.S. support for his troubled government.
Beyond that, the al-Maliki associates told the AP, U.S. officials have informed the prime minister they want an Iraqi government in place by year's end that would be acceptable to Iraq's Sunni Arab neighbors, particularly Saudi Arabia, Jordan and Egypt.
"They have said it must be secular and inclusive," one al-Maliki associate said.
To that end, al-Maliki made an unannounced visit Tuesday to Ramadi, the Sunni insurgent stronghold, to meet with tribal leaders, the provincial governor and security chiefs in a bid to signal his willingness for reconciliation to end the bitter and bloody sectarian war that has riven Iraq for more than a year.
For its part, the U.S. military is speaking with great optimism about its efforts to turn Sunnis in volatile Anbar province away from the insurgency and its al-Qaida in Iraq allies.
Compounding al-Maliki's fears about a withdrawal of U.S. support were visits to Saudi Arabia by two key political figures in an admitted bid to win support for a major Iraqi political realignment. Saudi Arabia is a major U.S. ally and oil supplier.
Former Prime Minister Ayad Allawi, a Shiite, arrived in the Saudi capital Tuesday. Masoud Barzani, leader of Iraq's largely autonomous Kurdish region, flew in a day earlier. Most Kurds are Sunni Muslims.
"Allawi is there to enlist support for a new political front that rises above sectarian structures now in place," the former prime minister's spokesman Izzat al-Shahbandar told the AP.
Barzani spokesman Abdul-Khaleq Zanganah said the two had met in Kurdistan before traveling to Saudi Arabia for talks on forming a "national front to take over for the political bloc now supporting al-Maliki."
It appears certain that the U.S. was informed about the Allawi and Barzani opening to the Saudis, who are deeply concerned that al-Maliki could become a puppet of Iran, the Shiite theocracy on Iraq's eastern border. Tehran is seen as a threat to stability among the long-standing Sunni regimes throughout most of the Arab world and deeply at odds with the United States over Iran's nuclear program and policy toward Israel.
Washington has been reported to be working more closely with Sunni Arab governments to encourage them to take a greater role in Iraq, particularly in reining in the Sunni insurgency that has killed thousands of U.S. soldiers and tens of thousands more Iraqi Shiites.
Washington was believed to be trying to win support for its mission in Iraq among the country's Arab neighbors by assuring a greater future role for the Sunni minority that ran the country until the U.S. invasion ousted Saddam Hussein.
One al-Maliki confidant said the Americans in Baghdad had voiced displeasure with the prime minister's government even though he has managed so far to blunt major resistance from the Mahdi Army, the Shiite militia, to the joint U.S.- Iraqi security operation in the capital and its environs. The militia is the military wing of the political organization run by anti-American Shiite cleric Muqtada al-Sadr, whose political backing secured the premiership for al-Maliki.
"They have said they are frustrated that he has done nothing to oust the Sadrists, that the oil law has not moved forward, that there is no genuine effort on reconciliation and no movement on new regional elections," said the official on condition of anonymity because he wasn't authorized to release the information.
Passage of the oil law, which seeks a fair distribution of revenues among all Iraq's sectarian and ethnic groups, has become a major issue for the U.S., which had initially counted on financing Iraq's post-invasion reconstruction with oil revenues.
But the decrepit oil infrastructure and violence have left the country producing oil at about the same levels as before the war, at best, and those figures are well below production before the first Gulf War which resulted in U.N. sanctions against the Iraqi oil industry.
The major Sunni bloc in parliament along with Allawi loyalists in the Shiite bloc are openly opposed the oil measure as drafted. Al-Maliki also has lost the backing of the Shiite Fadila Party, and independent Shiite members are split on the bill.
The al-Maliki associates said U.S. officials, who they wouldn't name, had told the prime minister that President George W. Bush was committed to the current government but that continued White House support depended on positive action on all the benchmarks - especially the oil law and sectarian reconciliation - by the close of this parliamentary session on June 30.
"Al-Maliki is committed to meeting the deadline because he is convinced he would not survive in power without U.S. support," one of the associates said.
But standing in the way of forward movement is a recalcitrant Cabinet which al-Maliki has promised to reshuffle by the end of this week. So far, however, he is at loggerheads with the political groupings in parliament which are threatening to withdraw their support for the prime minister if he doesn't allow the blocs to name replacements for Cabinet positions.
The impasse amounts effectively to a threat to bring down the government if it does what the U.S. reportedly is telling al-Maliki he must do to win continued U.S. backing.
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