Thread: Iraq/Dinar News Up until April 5th 5PM CTZ.

Everything you wanted to know about DNO progress but were afraid to ask...

DNO ASA Thursday, March 29, 2007


DNO ASA on Thursday announced an update on its activities in Kurdistan, Northern Iraq.
DRILLING AND TESTING STATUS

Tawke # 5:

Tawke # 5 was successfully drilled as an oil producer on the Tawke Field and is located some 1.1 km east of the Tawke # 4 well. After the well reached total depth, the well was completed as an oil producer and the drilling rig was released and moved to the Tawke # 6 location some 2.7 km south-west of Tawke # 5. Tawke # 5 was then production tested.

At the initial stage of the test, the well was tested for maximum flow capacity at a rate of 9,860 bopd. In order to obtain information about the reservoir characteristics of the Tawke field, an extended flow test at lower rates was then undertaken of the Tawke # 5 well. The well was flowed for several days and produced at a stable rate of approximately 4,500 bopd during two flow periods.
Three additional wells will now be started for clean-up and extended flow tests, with the same objectives as for Tawke # 5, and as part of the preparations for the oil to be processed by the permanent production and export facilities installed at the Tawke Field. The duration of the extended test campaign of the three wells is expected to last several weeks.

In line with good oilfield practices and with DNO's environmental policies, flaring of oil will be avoided during the extended testing. The oil is therefore collected in storage tanks.

Tawke # 6:

The Tawke # 6 was initially designed as a water injector. The well has now reached total depth, and production testing will be undertaken of the main Tawke producing reservoir. If movable oil at commercial rates is confirmed, the well will be completed as an oil producer.

If Tawke # 6 turns out as an oil well, then the oil/water contact has yet to be defined within the Tawke main producing reservoir. In this case a new well will be immediately drilled further down-dip from the Tawke # 6 location. If this well penetrates the water zone, it will be completed as a water injector.

Tawke # 3:

The Tawke # 3 is designed as an exploration / appraisal well at the eastern extension of the Tawke area. The well objectives are to penetrate both of the oil producing intervals confirmed at the main Tawke structure, as well as the deeper oil bearing intervals in Tawke # 1, which were not properly tested. The well is expected to reach total depth during the next two weeks.

In addition, a small carrier rig will soon arrive at the Tawke location and will be used for testing the deeper reservoir intervals of Tawke # 1.

TAWKE EARLY PRODUCTION PLAN

The Central Processing Facilities (CPF) arrived at the Tawke area during February, and the installation and hook-up work as well as preparation for pre-commissioning and testing is well progressed.

Installation of the pipeline connecting the Tawke oil production to the main northern pipeline is nearly completed. However, certain technical information and issues require further clarifications with the pipeline Operator, before the pipeline from Tawke can be permanently tied into the northern pipeline.

Tanks and trucking loading stations are also in the process of being installed both at the CPF as well as at the pipeline tie-in point. Pre-commissioning and final testing of the first phase of the Tawke Early Production facilities is expected to commence within a short period of time. This accomplishment is less than 3 years since DNO was first awarded the license and less than 12 months since the company announced the Tawke discovery.

Whilst finalizing the Tawke facilities, the development wells drilled to date will be subject to extensive flow testing and reservoir pressure testing in order optimize future production. As reported above the oil produced during testing is collected in storage tanks.

Commenting on the results Managing Director Helge Eide said:

"We are very pleased with our achievement in Kurdistan to date. We made the Tawke oil discovery in our first exploration well, and delivering first oil production within less than one year from this discovery demonstrates our capability to undertake fast-track exploration and development.

"Completing the first stage of the Tawke Early production Development will mark a new important milestone to Kurdistan Regional Development and DNO."

DNO ASA is an independent exploration and production company with activities in Norway, Middle East and Africa.

The Company has P50 reserves and resources of 151mmboe and produces approximately 12,500 boe per day. The oil production to the Company is planned to be increased to approximately 26,000 bopd by year end.

DNO signed two production sharing agreements in the Kurdistan in June 2004. Since then the Company has completed seismic acquisition and interpretation, and in November 2005 spudded its first exploration well. In June 2006, it was confirmed that a horizon on the Tawke structure contained commercial volumes of , which is estimated at 100mm boe (55mmboe net to DNO) on P 50 basis. 2007 gross production from the Tawke field is estimated at an average annualized rate of 14,000 bbl/d.

The Company plans to drill 18 development wells at Tawke in 2007 as part of the overall development plan for the Tawke field.

RIGZONE - DNO: Northern Iraq Well Delivers 9,860 bopd

The new fuel prices, object of controversy
What are the effects of the increase in inflation?
02 April 2007 (Iraq Directory)
A number of those interested in economic affairs said that the Ministry's decision to raise the prices of oil derivatives contradicts the oil policy which aims at reducing inflation in the country; they called for the adoption of important steps to deal with the phenomenon of inflation, raise the living standard of the individual, provide additional jobs and activate all economic sectors in the country. The Ministry of Oil has recently announced new increase in oil derivatives price, up to 15% so that the price of gasoline became 400 dinars, 350 dinars for gas oil and 100 dinars for kerosene.

Many citizens expressed concern about the continuing raise in oil derivatives prices, which reflected negatively on the realities of living, because of the rise in the prices of all items, both food and service, which added new burdens on their shoulders.

Economic researcher, Atheer Hassan, pointed out that the decision of raising oil derivatives prices is consistent with the conditions of the International Bank, in return for reducing Iraq's accumulated debts.

However, he pointed out that the resolution has its negative effects on the citizen's life, since it would result in raising all food prices and transportation. Hassan said: there is a big contradiction between what is sought by the government to reduce inflation and the rise in prices of oil derivatives, since the latter will inevitably lead to a rise in the overall prices of goods and services, and called on the government to adopt the policy of explaining to citizens the justifications of canceling the subsidy, through various media till they are fully convinced and to organize their living in the light of the new changes, and to tackle the negative effects by raising their wage rates, as well as provide jobs for the unemployed and activate the role of the private sector in addition to moving the economy in a comprehensive manner.

Economic researcher, Hamid Al-Ani, said that the resolution has positive ramifications that affect the lives of citizens indirectly, since it would lead to the reduction of Iraq's debts. He added that: Iraq desperately needs to reduce its debts resulting from the previous regime, and the only way to do it was by canceling the subsidy of oil derivatives, so it was imperative for the government to submit to this procedure, but the government should also work on raising the wages of the public sector workers in a way that suits the increase in prices of materials and services; otherwise, poverty rates will rise to more frightening figures than they are now, according to those interested in economic affairs.

The employee, Mohamed Abbas, said that: the resolution is not our favor, since we are not able to tolerate any more burdens. It was better for the government to work on improving our living standard, in stead of imposing additional burdens on our shoulders by raising fuel prices, which led initially to raise the wages of transportation and later will lead to the increase in prices of vegetables, as the vendors have shown displeasure at the rise in wages of transportation which transport their goods due to raising fuel prices, hinting to the raise of the overall goods prices. The employee, Nouri Sabeih, said that the increase in prices of oil derivatives will lead inevitably to higher prices of: transferring commercial products, transport fares, agricultural and construction materials; all this, against low salaries that can not meet this entire rise in prices.

Sabeih said: it would add an additional burden on the citizen and head of the family in addition to doubling the number of the unemployed and will restore the phenomenon of storing and selling oil derivatives in the commercial market, and this is not in the favor of the citizen who is in dire need to increase the rate of his monthly salary.

He expected that inflation rates will increase in case the government decided to raise the salary rates in order to deal with the situation of the prices increase due to raising fuel prices... In the end, the only loser here will be the Iraqi citizen.

The new fuel prices, object of controversy | Iraq Updates

Middle East demand for hardware & tools expected to grow at 11 per cent per annum
United Arab Emirates, 02 April 2007 (AME Info FZ LLC)

The all-time high demand for hardware and tools in the Middle East, which is currently riding on the back of the ongoing enormous construction boom, is expected to grow at a sizzling 11 per cent per annum, according to latest projections.

Research carried out by industry professionals in the region estimates that active construction projects currently under way in the Gulf region are in excess of US$1 trillion. The UAE, currently the largest construction market among the Gulf Cooperation Council (GCC) countries, has more than US$300 billion worth of active projects and the emirate of Dubai alone has over 25% of the world's active cranes in operation here.

'This clearly illustrates the extent of demand for hardware, power and hand held tools and machinery in the region which has continuously maintained its pace of double-digit economic growth. Thus, for manufacturers and suppliers of these products, this is a perfect time to look into ways of expanding their product base in the region,' said Melanie Beese, Exhibition Manager Hardware & Tools Middle East.

Apart from the UAE, projects in the Kingdom of Saudi Arabia doubled in the last 12 months to more than US$200 billion; Kuwait currently has US$211 billion worth of active construction projects, with an additional US$170 billion worth of projects elsewhere in the region.

These are in addition to the US$97 billion worth of projects in Iran and US$27 billion in Iraq, offering hardware and tool manufacturers enough leeway to expand in the wider Middle East region.

'Moreover, the construction boom is also spearheading the rush to own homes in a region that offers unparalleled luxury and ultra luxury residential properties. The recent changes in ownership regulations allowing foreigners to own property is another factor that is driving a huge home improvement boom and it is not surprising that the demand for hardware and tools is growing at over 11% per year,' said Ms. Beese.

'In this scenario, industry professionals involved in the supply of equipment or the design, construction, build or specification of commercial or residential developments, can understand the need to stay updated on new products, services and technology. For such professionals, there cannot be a better and more focused platform than the Hardware & Tools Middle East 2007,' pointed out Ms Beese.

Organized by Messe Frankfurt, one of the leading organizers of premium exhibitions around the world, Hardware & Tools Middle East 2007 is the region's only dedicated event for power tools, hand tools, hardware, ironmongery, workshop and woodworking machinery. The show is scheduled to be held from May 13-15, 2007 at the Dubai International Convention and Exhibition Centre.

'The event is the perfect platform to meet new contacts, discuss new trends and technological developments, keep up to date with industry information and source new products and solutions,' remarked Ms. Beese.

There are three broad product areas at Hardware & Tools Middle East 2007, reflecting the demand pattern of the market. Within these three sections - tools, machinery and hardware - there are a huge range of products and services that visitors will be looking to source.

The 'Tools'; section will cover everything from hand and power tools to hydraulic tools and accessories including measuring equipment, welding/soldering equipment and consumables, cutting implements and air pneumatic tools and accessories.

The 'Machinery' section will cover product groups like workshop and woodworking machinery including a whole range of workshop machinery such as lathes and grinding, milling, molding, drilling, punching and sawing machines, as well as machinery parts and components.

The 'Hardware' section will cover product groups such as abrasives, anchors, fasteners, fittings, nails, bolts, nuts, adhesives, paints, varnishes and sealants besides windows & doors and related hardware, furniture hardware, locks and accessories, construction and building materials, ladders, scaffolding and flooring.

This years event will run in conjunction with six other shows; ISH Kitchen and Bath, Light Middle East, Hometech Middle East, Garden + Landscaping, and Toyfair Middle East. More than 18,000 visitors are expected to visit the six shows combined, making it the leading event of its kind in the region.

Middle East demand for hardware & tools expected to grow at 11 per cent per annum | Iraq Updates

Iraq to import refining equipment from Iran
Press TV - [02/04/2007]
Iraq will pay $64 million for importing equipment from Iran to upgrade one of its refineries.

The equipment will be imported to upgrade Najaf Oil Refinery located in 150 km south of Iraqi capital city of Baghdad, a provincial official of Najaf has said.

A provincial delegation from Najaf has visited Iran where they talked with exporting Iranian firms over the issue, Ali al-Esaavi said without referring to the date of the Iraqi trip.

Najaf Oil Refinery was opened near the Shia shrine city of Najaf with a modest capacity of 10,000 barrels per day early October 2006.

Standing as the second refinery opened by Iraq's oil ministry since April 2003, it is aimed at meeting the local needs of the inhabitants and factories of Najaf province.

The Najaf refinery project was started at the beginning of 2006 and took nine months for completion. Its builders say plans are in place to install new production units to expand capacity.

After the collapse of former Iraqi dictator Saddam Hussein, Iran and Iraq have taken measures to expand mutual ties in different fields.

In addition to cooperate on refining sector, Tehran and Baghdad have electricity exchanges as well.

According to Iranian Energy Ministry, Iran currently exports 150 MW of electricity to Iraq per day, which may increase in future, based on a request by the Iraqi side.

Iraq has also proposed Iran to help construct power plants in Iraqi region, which is being assessed by Iranian officials at the time being.

Furthermore, Bank Melli Iran (BMI) will open a branch in Baghdad and other cities southern Iraq, which is a move to boost banking ties.

The signing of a memorandum of understanding (MOU) early March during a visit of an Iraqi ministerial delegation to Iran is another measure of Tehran and Baghdad to develop bilateral ties.

http://www.iraqdirectory.com/DisplayNews.aspx?id=3539

April 1, 2007

Countries ready to tap Iraq's oil
China may lead way as companies weigh potential payoff against dangers

By Jim Krane
Associated Press

DUBAI, United Arab Emirates -- China has sat out the Iraq war, but it could be the first to take advantage when the Iraqi government finishes a law opening its oil fields to international companies.

The Iraqi oil legislation, expected to be approved by July, will open the door for the government to sign contracts for exploration and production of the country's vast untapped reserves, a top U.S. priority.
But since few Western companies are prepared to send equipment or crews into the war zone, it could take five years or more before they begin extracting big shipments of Iraqi crude.
That leaves China.
China is so desperate for energy that Beijing's government-owned oil companies may be willing to accept higher security risks, some analysts say.
By contrast, the majors -- companies like Royal Dutch Shell and Total SA -- are likely to try to sign leasing agreements to stake their claims, believing Iraq is so oil-rich that they can afford to wait a few years.
"Iraq's potential is so tremendous that they're all ready to pounce as soon as the situation permits," said Sharif Ghalib, a senior analyst with Energy Intelligence Research in New York.
Most estimates put Iraq's proven oil reserves at 115 billion barrels, the world's third-largest. But Iraq has lagged in exploration for so long that actual reservoirs are probably double that, said Frank Verrastro, an oil analyst with the Center for Strategic and International Studies in Washington.
That potential may outweigh the risk for China, motivated less by profit than by the need for steady supplies of oil.
Oil industry executives have said privately that China could be an early developer of Iraqi fields, perhaps in joint ventures with Western firms.
Feeding that talk: In October, the China National Petroleum Corp. began renegotiating a $1.2 billion contract signed in 1997 with Saddam Hussein's government to develop the billion-barrel al-Ahdab field, in an area where Shiite militias hold sway.
Iraqi oil workers and oil ministry officials have been gunned down in the past few years. If such violence is repeated, even the Chinese could be kept away, Ghalib said.
"The Chinese oil companies have gone into Sudan and Iran, discounting threats of boycotts. But I don't think they'll be willing to risk their people in Iraq. They'd endanger thousands of technicians and face disruptions all the time," he said.
For now, the new oil law's first impact would probably be seen in northern Iraq's Kurdish region. The violence there is low enough for international firms to send crews and equipment, but crude deposits are thought to be smaller than those in the Shiite south or near the northern city of Kirkuk.
Even with a new law in place, Iraq's investment climate may not be clear. Physical danger aside, the legal environment is a tangle of jurisdictions and gray areas. The oil law is supposed to resolve those issues, but it is unclear if it will.
Furthermore, there's no easy way to get the crude to market. Sabotage still hamstrings exports. And rickety export infrastructure can't handle much more than the 2 million barrels a day of Iraqi crude now in production.

Countries ready to tap Iraq's oil | IndyStar.com

Iraq Investments : Sebastian River Holding's, Inc., purchases an additional 35 million Iraqi dinars to reach its goal of one billion dinars
Sunday, April 1st 2007Send to a friend

Sebastian River Holding's Inc. recently announced that the company has added an additional 35 million Iraqi dinars (ID) to its foreign currency portfolio. This purchase gives Sebastian River Holding's Inc. a total of 135 million ID. The company aims to acquire a total of one billion ID.

The company feels that this investment will increase dramatically in the near future.

According to the company, Iraqi news sources state that a revalue of the Iraqi currency is in the near future.

"We are building our portfolio in foreign currency," Sebastian River Holding's, Inc., President and CEO Daniel Duffy said. "We are going to continue to purchase the currencies that we feel will increase the most in value, in the shortest period of time. The Company feels confident that its holdings in foreign currency will dramatically increase in the near future and allow Sebastian River Holdings to have Earnings Per Share (EPS) of well over $3.00 EPS from just one of our holdings being revalued."

Sebastian River Holding\'s, Inc., purchases an additional 35 million Iraqi dinars to reach its goal of one billion dinars

Originally Posted by Hkp

Iraq Investments : Sebastian River Holding's, Inc., purchases an additional 35 million Iraqi dinars to reach its goal of one billion dinars
Sunday, April 1st 2007Send to a friend

Sebastian River Holding's Inc. recently announced that the company has added an additional 35 million Iraqi dinars (ID) to its foreign currency portfolio. This purchase gives Sebastian River Holding's Inc. a total of 135 million ID. The company aims to acquire a total of one billion ID.

The company feels that this investment will increase dramatically in the near future.

According to the company, Iraqi news sources state that a revalue of the Iraqi currency is in the near future.

"We are building our portfolio in foreign currency," Sebastian River Holding's, Inc., President and CEO Daniel Duffy said. "We are going to continue to purchase the currencies that we feel will increase the most in value, in the shortest period of time. The Company feels confident that its holdings in foreign currency will dramatically increase in the near future and allow Sebastian River Holdings to have Earnings Per Share (EPS) of well over $3.00 EPS from just one of our holdings being revalued."

Sebastian River Holding\'s, Inc., purchases an additional 35 million Iraqi dinars to reach its goal of one billion dinars

I wonder if they purchased dinar on the basis of something that could only be described as "vibrations".....

They "feel" it will increase? Sounds like gambling rather than an informed decision to me.

oh ya, new auction is already done but it's just another point down...

Announcement No.(895)

D.G. of Foreign Exchange Control

The 895 daily currency auction was held in the Central Bank of Iraq day Monday 2007/4/ 1 so the results were as follows :

Details Notes
Number of banks 14 -----
Auction price selling dinar / US $ 1272 -----
Auction price buying dinar / US $ 1270 -----
Amount sold at auction price (US $) 67.915.000 -----
Amount purchased at Auction price (US $) 85.000
Total offers for buying (US $) 67.915.000 -----
Total offers for selling (US $) 85.000 -----









D.G. of Investments

Daily price Bulletin buying and selling Sunday 2007/4/1

Currency
Currency Code
Selling Price In IQD
Buying Price In IQD

US Dollar
USD
1273.000
1271.000

European Euro
EUR
1702.510
1701.659

British Pound
GBP
2505.901
2504.648

Canadian Dollar
CAD
1104.076
1103.524

Swiss Franc
CHF
1049.810
1049.285

Swedish Krona
SEK
182.282
182.190

Norwegian Kroner
NOK
209.465
209.360

Danish Krone
DKK
228.509
228.395

Japanese Yen
JPY
10.829
10.823


The above price represent reference rate and does not from any commitment on the Central Bank of Iraq.

Note: The prices of the bulletin issued on Sunday will adopted for Monday also due to the weekend in New York .



Hmmmm, the date says Sunday but the auction says Monday........................