Thread: Iraq/Dinar Until June 9th 1PM CST

Reports : Bill oil and gas in the heart of the Iraqi conflict to dominate the wealth

09-06-07
Akram Hassan

Iraq is a stubborn attempt of the American administration to expedite the enactment of the 2007 oil and gas, which is of great importance in order to achieve some success in the face of internal pressures and increased international exposed. As current law, which was approved by the government, will give American oil companies and British substantial benefits through contracts to participate in the exploitation of oil reserves and production for a long time. It seems clear ...

To the observer through the complexity of some aspects of law and ambiguity, that pressure on certain political forces to participate in governance, hesitant or reject the project, to push for approval, is not free from deception.

This raises the debate on the bill, a number of reservations constitutional, legal and technical task of Pauguetassadath and timeliness in light of the security, political, economic and social situation prevailing.

In this context, it seems necessary to refer to the views of the lecturers and professors Jeweler Hamza Mohamed Ali Zeini, and Zuhair denominator Tariq Shafiq Sabri Kadhim and Issam Chalabi Kabbah and peace .. , And others, backed by the majority of citizens who have doubts that the seizure of oil wealth is the motivation President of the occupation. Yet the importance of these reservations, the bill enjoys the support of many political leaders, members of the government and Parliament and advisers, who find the potential benefits of several of Iraq oil minister Hussein Shahrastani, Adel Abdul Mahdi, Barham Salih, Kamal Basri Mahdi Al-Hafiz.

3 hypotheses
The important question is permanent : What justifies the pressure to rush this legislation law? Is actually contribute to the achievement of national interests in the absence of a national strategy?

Based viewpoints interested in the legislation law on three propositions : first, that the law will contribute to the financing of reconstruction
At the national economy, secure fair distribution of oil wealth between regions of federalism, and will support the decentralized management style to use oil revenues for the benefit of all the Iraqi people. That vague and general nature of the relationship between federal and equitable distribution of oil resources requires patient acceptance of this premise, especially if we take into account the existence of proven oil reserves and huge potential in the oil fields extend across regions and even expected it spreading to the neighboring countries.

Current Constitution provides for the principle of fair distribution of oil wealth among citizens and territories, reassures political forces wishing to the federal government on the right of this wealth. However, the mechanisms proposed distribution formula in the law system of decision-making oil more complicated matters rather than simplified, in particular to the frontiers of territories target, and potential oil reserves are still subject to change and not agreed upon. Here is the reference to the experience of Nigeria, which is one of the important oil states and an active member of the organization «OPEC».

Nigeria opted for a federal system since independence in the early 1960s of the last century, but this federation, which began three regions now has more than 25 provinces a result of conflicts and civil wars, which were not oil companies operating in the world (Shell and TotalFinaElf Ajebe) isolation. De****e the magnitude of the oil proceeds obtained during the past four decades, almost half the population now live below the poverty level ($ 2 daily income), and the child mortality rate and the illiteracy rate put the country at the bottom of the classifications used internationally. As Nigeria is today in the forefront of countries dominated by corruption, theft and financial crime. Linking the federal system, fair distribution of oil revenues underscored by the views wishing to bill the new oil and gas not necessarily mean reiterated Iraq's unity and stability.

The second hypothesis, based on the allegation that allowed for the time being to enter the international oil companies to the oil sector will help attract foreign investment and advanced technology necessary for the rehabilitation and development of this sector, which has suffered much from the policies of the previous dictatorship, the wars and painful years of embargo. Through government that the new law will help to develop capacity in the Iraqi oil industry and increase oil production and financial dividends.

But this justification does not clarify the reasons that push global oil companies to invest in the oil sector and the country is drowning in political and security crises violent. The real motives for the overwhelming desire of corporate assets, in a nutshell, the expansion of oil and facilitate their access to more funding in the international capital markets, and diversify geographically these assets to minimize risks they might be exposed.

As for the argument about the development «Iraq's capability of self-« is nebulous concept. There is no debate about the fact that Iraq's oil wealth tremendous all standards, and there is no need for international support necessary at the present time to rehabilitate. Iraq has 112.5 billion barrels of oil

Reserve uncertain (11% of total world oil reserve), high-quality and cost-reduced, making it second only to Saudi Arabia at the global level. Estimates also suggest that the potential oil reserves of 214 billion barrels, and this in itself would be an important source of huge profit potential, covet oil companies to obtain and at the expense of future generations of Iraqis. This expectation existed before the occupation of Iraq.

Why the increase in production?
Ranging Energy Iraq's crude oil production between 1.8 and 2.0 million barrels per day at present. And whether there is a need to increase this capacity to the level of three million barrels a day, the funding required is estimated at only $ 1 billion can be secured. That is, to achieve this increase does not justify the involvement of global companies in the national oil reserves at the present time, the country receipts from the sale of oil exceeded $ 35 billion last year, has increased this year.

Well, what justifies accelerate the upgrade Iraq's oil production is at the present time in terms of the national economy is still limited to the absorption of its oil revenues stood. This is reflected in the fact that most of the ministries, as a result of mismanagement and the deterioration of security conditions, in the tunnels of financial resources allocated to them under the «National Strategy previous 2007-2005», the report stressed that the Baker-Hamlton on Iraq.

It is asked in this area, the role of the Central Bank of Iraq and the negative ambiguous on the issue of neutralizing the effects of the continuous rise in oil revenues on the supply of liquidity and rising inflation, when the State can not spend a productive manner. What justifies the continuing accumulation of reserves of Iraq's foreign exchange deposited mainly in American banks, which now exceed $ 21 billion, at a time when the unemployment rate over 50% of the labor force.

The third hypothesis, it might be argued some of those who support the current version of the oil and gas that will transform the Iraqi economy to a market economy because of the absence of the private sector and national. The very low level of development of the non-oil productive sectors such as agriculture and industry, encouraging foreign companies to invest in these activities. Therefore, to facilitate the work of oil companies is a logical and attractive alternative.

If we leave the political factor behind the positions of the government and parties participating in government and the opposition. the most important project is to discuss strategic error, which is located by supporters of the law and overlook him Against professionals in the petroleum industry is the implicit belief that the dominance of the oil sector and the state's reliance on large oil revenues mean that the bill Oil and Gas 2007, but we consider representative of the oil policy, is determined by the objectives of the plans and economic policies of the State. Proceeds oil is not only a means to finance public investment, which is part of macro-economic policies designed to achieve the strategic objectives of economic and development of the State.

This is not surprising when we note the absence of oil policy in particular, the new economic policy in general, in positions of the parties and political leaders and professionals involved in the government now and in the opposition to Saddam's dictatorship. Rectifying the details of the new oil and gas business and how decision-making production and investment in the management of production, marketing and exploration is necessary, but it comes after research in the strategic economic and appropriate development.
The ongoing discussions on the bill on oil and gas 2007 reflected one manifestation of the conflict to dominate the most important resources of the country in which the ruling power to use them in achieving their objectives.

Because oil wealth owned by all Iraqis and very necessary in the economic and social development and long-term, it is a serious mistake to undertake the goals of Iraqi society, which can not be divided and addressing requirements achievable way of sharing political or national or ethnic or commercial, or by ensuring that the special interests.

Economy : Oil Investment Law in Iraq

09-06-07
After eight years from now (February 2007) there will be no oil activities in the United States, as will the entire American oil reserve. Note that the United States consumes (26) million barrels a day. No more than one third of world oil consumption. This indicator reinforces the view that emphasizes the strategic American wars for energy is to ensure that what the Americans b (Alstratiji annexation of energy) ...

Another excavator that the oil had stopped drilling in the Texas end of the year 2006. Therefore, the advent of the United States of America to Iraq had many goals in the forefront of control of the oil wells in the State owns the second oil reserves worldwide.

Therefore, the oil investment law has been prepared containing (contracts for the production PSAS), which gives an opportunity for the foreign company to find formulas are complex legal and financial experts who grow to the rhythm * experienced and competent in this regard could be construed in favor of multinational companies and to link the government (or rather the Iraqi people) economic conditions could not be changed Throughout the decades to come, especially as Iraq is under the occupation of foreign forces. There are American and British advisers in Iraqi ministries, especially in the Ministry of Oil. Can there really competent and finger them in the formulation of laws for oil and the budget.

Evaluating the law on oil :
5 : Al (the Federal Oil)
In paragraph (d) Taiwanese law (the Commission)? He then called on the same page. This indicates the urgency in the writing of the text. That structure (body) does not represent justice, which reflects the importance of maintaining and producing company in the country : President, as a bill to be a representative in each province a minister (I mean the Kurdistan region) and one representative from each province-producer organization in the territory.

This means :
One that the powers of the minister are more and deeper powers of the Minister.

If the Basra in particular and the South in general product bulk of Iraq's oil financier President of the government budget, how represented by one representative does not have the powers owned by the representative of the province. It should be represented by three members, one of whom Basra technical expert from the South Oil Company. The competent academic affairs oil. A representative of the union employees of the oil sector.

Al-September 6 stated in the text within the structure (head of the Federal Oil) : "advisers deal with matters relating to oil / or Finance and Economy."
We ask from any quarter * These advisers will be?

Accordingly, we must determine who belongs to these advisers and that some of the technical experts in the South Oil Company affairs spe******ts and academics from the University of Basra Oil To base of popular participation in decision-making and the marginalization of academic specialty as Basra is the largest producer of oil in Iraq has the largest oil reserves in the country. It should not be heeded by the Center on structural advisers.

Second : the oil consultant :
It must be within the members of this Council experts from the South Oil Company or academics deal with matters relating to oil from Basra University said the employees of the oil sector in the south that the Council can not succeed in the key decision-making oil policy to achieve national supreme interests of Iraq if he got the Center on the Council.

Al-6 : T. powers of the Ministry of Oil
First : proposing policies and federal laws and lifted oil to the head of oil and gas : We propose to add to the words (after consultation and agreement with the South Oil Company or the North). In order not to be unilateral decisions.

Al-seven powers : the Iraqi National Oil Company : Article : First paragraph 4) any exploration activity within Iraq have to be competitive :
This text allows foreign companies with extensive experience in the operations of petroleum and possession of sophisticated new techniques in the exploration for exploration contracts to Iraqi oil companies that own requirements explore old and often foreign companies hide the fact reserves and the quality of rock and fluid movements and textural and others. To their own.

Al-Akhbar : II : a : exploration contracts : Alternative 1 : b : The head of the oil and gas formation of committees negotiating specialized cadres of the Ministry of Oil.

The National Oil Company : independent professionals with representatives of the territory or maintaining productive relationship with the contract.
* Must include structural (independent professionals) to maintain academic affairs spe******ts producing oil), add these words to the text.
There is no point to attend the person of the Provincial example incompetent and oil and Khvaiah affairs and the vagaries of world markets and so on.
Al-9 w : Add "after consultation and agreement with the national oil company producing oil in the province," in order to avoid administrative and financial corruption.

Al : 12 b / discovered fields : the draft law gives the right to negotiate and contract for the fields in Kurdistan and the reality in Kurdistan while away this right to maintain oil-producing bulk and restricts the negotiation Phiah oil, gas and the ministry contract with the contracting companies, why this double standard?

12 : Al-licensing procedures :
The text is "possible that the model contract based on the following :
The service contract. It (Buyback) kind of technical consulting agreements used this type of contract in some fields of Iran. The foreign company would provide the capital needed to invest in the project and earn a fixed rate of return services agreed in the contract. Right here to the foreign company buying oil or gas extracted.

The participation in production is the most serious action taken by the Ministry because of this type of concession contracts mean that gives foreign companies to invest for a period of (30 40) years. It is a complex system, according to the rules of the host State in theory, they have the right to control the oil, while the role of the foreign company for oil extraction, but in practice, these are the actions of government contracts and signed into the trap of complex legal texts drafted by experts and the foreign company ones to interpret those provisions has suffered Russia, Nigeria of those contracts, and this is rejected by the Iraqi people.

Al : 14 h : secure oil imports :
I must correct word imports to the income or revenue because imports meant the importation of goods. While revenues mean the sale of oil prices, the first Import. The two Revenve It is strange that the project does not discriminate between imports and proceeds in the twilight.

Al-c 14 : Add : and publish all contracts with companies investing * for Iraqi oil in the media, all of the culture of investigation and to prevent administrative and financial corruption. And the people are aware of what is happening in the disposal of its natural resources and where the oil revenues go.

15 : Al-automatic : the second alternative that the phrase (allocated for the remainder of the imports distributed to the regions and provinces irregular in the territory, according to the proportion of the population) is unfair to Basra, Dhi Qar, Maysan that Basra in particular and the South in general, is the largest producer of oil (approximately 75%) and the transferee President of the Assembly budget therefore suggest adding the following words (and contribution to maintain the proportion of production oil and gas) to compensate residents result of the environmental pollution caused by the production of oil and gas.

P. 19 : * other oil sectors : a must : the addition of the words (development of the fields) to be the first national oil companies in the development of increased production and not foreign companies.

Conclusion :
We believe that the draft investment law, the oil needs to be drastically amended to fit the aspirations of the Iraqi people to make the best use of its resources Alheidrkarbuneh especially since the Iraqi Oil Sector escape from the size of oil and expert including qualify for the development of all fields and oil operations and needs to be modern and new campus for decades went and provide financial support, which covers the development of its operations. Leading to make it prosperous sectors advanced able to diversify the sources of national income and the welfare of the Iraqi people who have been deprived of much prosperity enjoyed by the people of other oil states, we are not against the law entirely, but we pointed out that what is not in the interests of our people, we are facing fateful decisions must be caution when taken.

Long but some might find it interesting...

Economy : BILL oil and gas new Iraqi

The Republic of Iraq
The oil and gas
No. of 2007
Contents
Chapter / Article Title Page
The reasons ...
Introduction
Chapter I : basic conditions
Article 1 of ownership oil sources
Article 2 Scope of application
Article 3 end
Article 4 definitions
Chapter II : Department sources oil
Article 5 powers of the authorities
Article 6 establishing the Iraqi National Oil Company
Article 7, the reorganization of the Ministry of Oil
Article 8, rehabilitation and development of oil and gas fields
Article 9 licensing
Article 10 mechanisms of negotiation and contracting
Article 11 oil imports
Article 12, the participation of the State
Chapter III : exploration and development activity fields
Article 13, the contract for exploration and production
Article 14 obligations of the owners of exploration and production licenses
Article 15, building efficiency and local content
Article 16 unification
Article 17 conservation
Article 18, free access to pipelines
Article 19 Property Data
Article 20 restrictions on production levels
Chapter IV : Transportation
Article 21 main pipelines
Article 22 rights and obligations relating to the pipeline
Chapter V : gas
Article 23 gas exploitation
Article 24 gas attendant
Article 25 burning gas
Article 26 non-associated gas
Chapter VI : organizational matters
Article 27 regulations oil operations
Article 28 of use and use of the land and the rights of passage
Article 29, free access to the areas under the jurisdiction of maritime
Article 30 inspection
Article 31 protection of the environment and safety
Article 32 transfer of ownership and ending assignment
Chapter VII : financial system
Article 33, the general principles of taxation
Article 34 rent
Article 35 other tax matters
Chapter VIII : miscellaneous items
Article 36 of transparency
The application of Article 37 anti-corruption laws
Article 38 to bring competitive year
Article 39 existing contracts
Article 40 resolving disputes
Article 41, the relationship with existing legislation
Article 42 force

Reasons
Since the Republic of Iraq entered a new phase after the adoption of the Constitution in 2005.
Since that article 111 of the Constitution referred to states that oil and gas is the property of all Iraqi people in all regions and provinces.
Since the articles 110, 112, 114 and 115 and who read in the light of article 111 was generally known as the responsibilities and powers of the federal authorities and the regional authorities and provinces including with regard to the petroleum sector.
Since the Republic of Iraq Talented rich sources of oil and gas, and part "great discoverer of them already and ready for development, while there are additional sources of oil yet to be discovered.
Since the Iraqi production capacity during the past decades, low compared to a rich source of oil and gas in Iraq.
As the Iraqi people finds itself at a crossroads to the future of a new and more prosperous, which requires funding for the rapid reconstruction projects and modernization.
Since the proceeds from oil and gas are the most important pillars of the redevelopment of the country in general and the Iraqi economy, in particular on the basis of sustained and coordinated manner and wholesome scheme that takes into account the objectives of the Constitution, including the unity of Iraq, the nature and sources of oil depletion of exhaustible natural, and the need to preserve the environment.
In order to enable the Ministry of Petroleum to focus on the role of president for policy development, planning and supervision at the same time achieving many of the modernization needed to improve operational efficiency, it should be distributed actors oil currently undertaken by the Oil Ministry between bodies and commercial entities, including key technical Oil Company Iraqi national and independent business and giving a role for the regions and producing governorates.
Since the modernization and Alttwiraladhavi to the oil industry will boost the participation of international and local investors have skills and the administrative and technical drawing, in addition to sources of capital to actively assist and modernization of national experience and effectiveness in the oil sector.
Since the national private sector and linked directly or indirectly to the oil sector needs support and encouragement in order to be able to play a prominent role in the development of this sector.
And as the positive interaction between regional authorities and federal regulations require legislation to appropriate institutional frameworks to ensure effective coordination.
Since the entry of actors-international and local-variety in the development of the oil sector requires clear legislation, according to the conditions and basic frameworks ready to work to ensure effective partnership between the Iraqi authorities and the concerned parties as well as among themselves.
Since the development of the oil sector must be consistent and coordinated closely with the development community and the national economy has maintained the continuity of the development of the economy, the environment and reduce long-term A'tmadali imports of oil and gas.
Since the conditions for the organization of the oil sector of great importance for the Iraqi people as is the case for investors in this sector. the need for a fair, clear and transparent and effective guarantee for all participants in the oil sector cooperation and active participation in government bodies at the federal, regional and provincial oil-producing addition to the actors at the local level and internationally.
For that initiated this law.

Chapter I
Prerequisites
Article 1
Property sources of oil
The ownership of oil and gas is all the Iraqi people in all regions and provinces.
Article 2
Scope of application
ا. This Act applies to oil operations in all regions of the Republic of Iraq, including land and the land underneath, as well as in internal waters and territorial waters.
ب. Excluded from the scope of this law Oil Refining and Gas Processing and Astkhaddamathma industrial, as well as the storage and transportation and distribution of petroleum products.
Article 3
End
ا. This law establishes the management system of oil operations in the Republic of Iraq, taking into account existing international conventions between the Republic of Iraq and other countries with regard to the transfer of crude oil.
ب. This law aims to define the foundations of cooperation between the concerned ministries in the federal government, as well as the establishment of a coordination and consultation between the federal authorities and the regional authorities and the oil-producing provinces.
Article 4
Definitions
For the purposes of this Act shall be of the words and phrases where they received on / below the meanings assigned to it, but if the text another meaning :
1. "Discovery" - the first presence of oil are encountered in an ambush by drilling, which can be drawn to the surface through conventional oil industry.
2. "Commercial discovery" - discovery Iattabrlagradh commercial development by the owner of exploration and production licenses
3. "Territory" of the Kurdistan RESTAURANTS-shaped territory after Sidorhta law in the Republic of Iraq "in accordance with the provisions of the Constitution.
4. "Best practices in the petroleum industry" - all of these practices on oil operations, which are generally accepted in the international oil industry as a good, safe and environment-friendly, economical and efficient in exploration and production of oil.
5. "Optimal methods for the management of the pipeline network" - all those practices relating to transit through pipelines - including the design, construction and preparation for the operation, maintenance, operation and termination of instruction pipeline - which are generally accepted in the international oil industry as a good, safe and environment-friendly, economical and efficient in the transfer of oil .
6. Production "- extraction and disposal of oil.
7. "Oil" - all producers of raw natural gas or any hydrocarbon producer Auimkin production of crude oil or gas or oil or rock Tar Sands.
8. "D" - activities carried out by the owner of a permit exploration and production based on field development plan or plan to develop main pipelines, which aims to produce and transport oil.
9. "Prospecting" - the search for oil by geological, geophysical and other means, including drilling exploratory wells, and valuation.
10. "Field" - an area containing the ambush or group strengths, combined or linked to the same geological structure or Alsttgravi situation. The domain name refers to the surface area, but perhaps also indicates "at the same time to the surface, producing formations in the ground.
11. "Pipeline workers" - the pipeline including the valve stations and pumping stations, power stations, stamping and accompanying facilities, which compiles the crude oil or gas from the field or group of fields to be delivered to a transfer point for the transfer of overtime.
12. "Pipeline" - engineering business consists of a pipeline elongated along with the accompanying material on the surface level, including the valves and pumping stations and stamping equipment and the accompanying measurement and control, communications and remote control for the purposes of transporting crude oil or gas from point to point transfer processing to the point of delivery .
13. "The main pipeline" - the main pipeline including the valve stations and pumping stations, power stations, stamping and installations are built by the carrier for the transportation of crude oil or natural gas from a field or several fields, sources inside or outside Iraq.
14. "Plan to develop the field" - the schedule and cost estimate specified for the appraisal and development activities required to develop and produce oil from the field or group of fields specified by the owner of the contract for exploration and production, which was prepared under the Act and the relevant regulations in the operations and the oil exploration and production contract, which covers an area .
15. "Plan to develop the main pipeline" - plan and estimate the cost of all activities identified to be performed for the carrier to transport oil Abrann pipeline inside Iraq and across the territory of neighboring countries, which have been prepared in accordance with this Act and the relevant requirements in the regulations and the operations of oil exploration and production, which covers the contract and any bilateral agreements relevant.
16. "Plan cancellation instruction" - a plan for the closure of the operations of oil and re operational environment to the original situation, including the removal of all plant and dispose of them.
17. "Iraqi person" - any citizen of Iraqi nationality, or any company or institution a list of legal personality and registered according to Iraqi legislation, with a main center in Iraq, and has more than 50% of the shares of capital owned by Iraqi citizens or by the institutions or companies, public or private Iraqi.
18. "Alien" - any person other than the Iraqi citizen, company or institution legal personality and the list of registered according to Iraqi legislation, and less than 50% of the shares of capital owned by local citizens, companies or private or public institutions Iraqi.
19. "Petroleum operations" - all activities related to exploration, development, production, isolation and treatment, storage, transport, sale or delivery of oil at the point of delivery or the point of export or processing point agreed upon inside or outside Iraq, and include the processing of natural gas and the closure of all the activities agreed upon.
20. "Gas" - all hydrocarbons which are in a state of gas in the atmospheric conditions of temperature and pressure associated with whether or not liquid hydrocarbons, as well as remnants of gas remaining after extraction of liquid hydrocarbons from the reservoir.
21. "Algazalmassahab" - gas reservoir under the circumstances either the Mtaba "in the mass Haidrokerboni or in the dome of oil and gas over the senses of crude oil.
22. "Non-associated gas" - gas except gas attendant.
23. "Operator" - body appointed by the government in consultation with the owner of the right of exploration and production for oil operations on behalf of the latter.
24. "Preservation productive" - any of the governorates of the Republic of Iraq in which there is production of oil and gas in a sustainable and commercial rates no less ferocious than 150 thousand b / d requires discussion.
25. "Reservoir" - combine oil in a separate unit specific geological characteristics and limits of rock or synthetic Tabaghih and roofs contact between oil and water in the composition or any common overlap them, to affect oil production in any part of this gathering of the total oil pressure in the whole assembly oil.
26. The "contract" - the region where the owner permits authorized exploration and production, including exploration, development and production of oil.
27. "The development and production" - part of the contract, which was identified after a commercial discovery under paragraphs and conditions of the contract for exploration and production.
28. "Crude oil" - all hydrocarbons and regardless of the specific weight, which are produced and made available bed situation at the liquid temperature and air pressure, including the asphalt, and tar and liquid Alhidrokerboinh known Balmkotrat or condensers, which are obtained from natural gas in the contract.
29. "Carrier" - designated by the Council of Ministers for the receipt of crude oil or natural gas from the owner of the right of exploration and production at the point of conversion and delivery of crude oil or natural gas for export to the owner of the right of exploration and production at the point of delivery.
30. "A point of measurement of production" - site (sites) in which the measurement of sizes and the quality of crude oil or gas, which will be converted to a transfer point.
31. "Transfer point" lip entrance to the pipelines from the point of measurement of external production, where the carrier's receipt of crude oil or natural gas from the owner of the right of exploration and production.
32. "Point of delivery" - points (points), loading facility where crude oil up to the entrance of the reservoir, lip-ship, which received crude oil or other point within 13-17 or Iraq, as agreed under the contract for exploration and production. In the case of gas, it is the entrance to the receiving facilities receiving gas.
33. "Point of supply" - site, which is converting crude oil or gas, which is the main pipeline or pipeline field to a different type of transport or treatment or employment.
34. "Ministry" - and the Ministry of Oil of the Republic of Iraq, companies and other institutions identified and the High body.
35. "Competent body" - the Oil Ministry or the Iraqi National Oil Company, or regional body.
36. "Regional body" - the competent ministry in the government of the province.

Chapter II
Management sources of oil
Article 5
The powers of the authorities
ا. The House
First. " Initiate the House of Representatives all federal laws related to the oil and gas sector.
II. " The House of Representatives ratified all the conventions of international oil stomach and relevant communication operations in the oil and gas sector and concluded by the Republic of Iraq with other countries.
ب. The Council of Ministers
First. " The Cabinet recommendation to the House of Representatives with respect to the proposed draft legislation for Iraq to develop sources of oil and gas.
II. " The Council of Ministers is the authority's jurisdiction to Agheraralsiash federal oil and supervision of the application of that policy. Also under the supervision of the total petroleum operations including the adoption of federal policy for all Alamuralte organization governed by the Act including exploration and production, transportation and marketing and propose legislative tools in the oil sector and to ratify the necessary regulations the things listed above from time to time.
III. " In order to carry out the tasks mentioned above, the Council of Ministers to ensure the adoption of the Federal Council of the oil and gas ministry and the appropriate and effective means of consultation and coordination with regional authorities and provinces producing oil and gas.
ت. The Federal Oil and Gas
First. " For Tesermaham Council of Ministers in connection with the adoption of petroleum policy implications and plans, which are being prepared by his ministry and coordination Alechorma producing regions and provinces, as well as to develop the necessary instructions to conclude the contracts for exploration and production under Article No. 9 of the Act establishes a body, the Council of Ministers (the Federal Oil and Gas). The Prime Minister or his nominee and the membership includes both "from :
1), and oil ministers of finance and planning and development cooperation of the federal government.
2) Governor of the Central Bank of Iraq.
3) a representative from each territory degree Minister.
4) representative from each province productive irregularly in the province.
5) Presidents heads of the most important oil-related institutions, among them the National Oil Company and the Iraqi Oil Marketing Company.
6) experts deal with matters relating to oil and gas, finance and economy of no more than three are appointed for a maximum period of five years, a decision of the Council of Ministers.
Taking account of the formation of the Federal Council of oil and gas representation of the basic components of the Iraqi people.
II. " The responsibility for developing policies and plans of federal oil exploration and development fields and plans major pipeline in Iraqi territory, also has the right to approve any substantial modification of such plans.
III. " The Federal Council of the oil and gas exploration contracts in the consideration and production licenses are granted for operations in the oil sector, and adjusted in accordance with the "mechanisms contained in Article No. 9 of this Act all of this with respect to the Republic of Iraq.
IV. " The Federal Council of oil and gas Adoption models of production and development contracts and the selection of the appropriate model contract for the workers or the nature of the exploration area or opportunity that will be offered.
V.. " The Federal Council of oil and gas a special instructions to negotiate licensing or development contracts and Alantah and eligibility criteria companies.
VI. " In order to facilitate the functions of the federal oil and gas contracts in the consideration of exploration and production, plans to develop the oil and gas fields, the Council using the office called "Office of independent advisers," including oil and gas experts, Iraqis or foreigners, the Council decides, from recognized competence and reputation and who have experience in the lengthy process of exploration and production, oil contracts and selected unanimously by the Council and be hired for one year but may be extended. The Office of independent advisers to provide advice and recommendations to the Federal oil and gas contracts on the licensing and plans to develop the fields and any matters relevant referred to it by the Federal Council of oil and gas.
VII. " The Federal Council of oil and gas with the authority to approve transfer of quotas rights among undocumented licenses for the exploration and production and subsequent amendments to the contracts provided that does not affect the above inversely to the degree and quality of national involvement in the percentage of national quotas in the project.
VIII. " The Federal Council of oil and gas, the Oil Ministry to ensure the exploration, development and exploitation of oil sources on the best use for the benefit of the people in accordance with the provisions of laws, regulations and contractual terms and recognized international standards.
IX. " The Federal Council of oil and gas to develop formations that finds necessary for the execution of its functions, and establish a system internally for its work.
X.. " The members of the Federal Council of oil and gas proposing policies and draft laws on the oil.
ث. The Ministry of Oil
First. " The ministry is the author of the power to propose policy, laws and federal plans oil.
II. " The Ministry is preparing regulations, directives and instructions for the implementation of the policies and plans of Yugoslavia.
III. " The Ministry of carrying out monitoring and oversight of the oil operations in coordination with the regional bodies and producing provinces to ensure a uniform and homogeneous application in all parts of Iraq.
IV. " Along policies, regulations, directives and requirements contained in Item 5 / w / First "and 5 / w / II", in line with the social and economic policies of the federal government, the ministry, after consultation with regional bodies and the oil-producing provinces to prepare policies and plans against Yugoslavia for exploration and development, production and annually or whenever the need arises. to address these policies and plans to determine the level of production necessary both in the short term or the long term, and to arrive at optimum solutions with regard to the geographical distribution and the timing of exploration and production platforms for consultation and coordination with other regional and provincial According to the "overall framework contained in the Supplements Nos. 1, 2 and 3. This provides oil policy proposals and plans related to the Federal Council of oil and gas for review and approval.
V.. " The ministry is the body empowered to represent Iraq in regional and international forums regarding Bamuralnft and gas.

Oiling the wheels of war: smuggling becomes the real economy of Iraq

In his second dispatch from southern Iraq, Ghaith Abdul-Ahad investigates how illegal shipments fund militias and corrupt politicians

Saturday June 9, 2007

On the banks of the Shatt al-Arab in southern Iraq, a family business is thriving. For the Ashur, a small clan of about 50 families, it's worth several million dollars a week. Costs are steep, especially for security. But profits are tidy and business is booming.
The Ashur smuggle oil. For years under Saddam Hussein, they worked as mere guards at Abu Flus terminal at the mouth of the Gulf. But as the state collapsed after the US and British invasion in 2003 and economic anarchy set in, they took over the port and became the quasi-official authority there. Never have the family's fortunes flourished as in the last three years. They built their own underground oil tanks in their farms, where fuel tankers empty their cargoes to be pumped later into small pontoons. A cousin of the family estimates that they make about $5m (£2.5m) a week from smuggling oil.

When another tribe tried to take over the ports, the family hired gunmen from outside Basra to defend its fiefdom. "We were paying $250,000 every week for gunmen just to make sure that we keep our terminals and preserve our rights," said the cousin, Abu Harith.

The family operation is a dispiriting example of how large swaths of Iraq's economy and mineral wealth have vanished into a legal vacuum, where the state is absent, law enforcement is non-existent and the spoils are shared by politicians, militias and smuggler gangs.

To insulate their fortune, the clan uses the protection of Fadhila, the ruling party in Basra, which for more than a year ran the oil ministry in Baghdad. But it also takes care to have good relations with the rival Mahdi army.

Abu Harith described a typical operation: "I took a cleric with me, he was one of Moqtada's [al-Sadr, head of the Mahdi army] people, we ran into a police checkpoint, he rolled down the window and told the policeman 'we are on duty, from this car to the last car behind the tankers.' And that was it. We emptied the fuel into private underground tanks for the Ashur family.

"Moqtada's people are in control of Abu Flus port. You can't smuggle your diesel unless you pay them, and they collect a levy of up to $1,500 on each car before it can leave the port."

Contracts

Oil is not the only industry steeped in corruption. Businessmen in Basra say anything connected to the state requires payments to militias and parties. In construction, for example, Abu Harith said: "There are two deals with parties and militia; one, they give you the contract for a price but then you have to provide your own security; the other deal is that for a certain percentage of the contract they will provide you with gunmen. No other militia will attack you." In his last four contracts, he has paid $500,000 in bribes.

But oil is the biggest racket of all in a country with the world's second-largest reserves. Oil worth millions is being smuggled out of southern Iraq every day and sold on the black market. The proceeds fund militias, mobsters and corrupt politicians with cash that far outstrips the state's financial resources.

The smuggling also fuels factional fighting around Basra as each group tries to control its portion of the supply.

One tanker captain, who is in his second decade of oil smuggling and owns his own ship, told the Guardian how lucrative the trade could be. "The big profits are to be made in crude oil," he said. "You rent an oil tanker and after your first trip you can buy the tanker."

The infrastructure of smuggling was set up under Saddam in the late 1990s, during the UN sanctions, when illegal oil shipments became the main method of getting cash into the country. Smuggling was an officially condoned policy.

"We use the same methods we used during Saddam," said Ismail, a veteran smuggler. "Instead of Ba'athists and generals, it is now Shia militias and their cronies who are doing the business."

Several oil smugglers interviewed said the easiest and least profitable oil operations involved diesel and fuel oil. The oil is obtained from Iraqi refineries through official requests from politicians or by diverting fuel shipments for factories or fishing boats.

Another oil smuggler, Hussam, said these shipments were then emptied into small makeshift tanks in the Abu al-Khasib area, the deep river that leads to the Gulf. From there the oil is taken in small quantities to oil tankers at the mouth of the Gulf on al-Faw peninsula, which take it to refineries in Yemen, the United Arab Emirates or as far as India.

Much more lucrative and elaborate, however, is smuggling crude. This is most commonly stolen from the oil terminals, either by adding extra tonnes on top of the officially requested quantity or simply by providing fake paperwork for a phantom order.

The captain, who spe******es in crude smuggling, explained the process: "It depends on the officials manning the terminal when your tanker arrives. Usually it's a committee of three to four; they are all of one [political] party. Your contact with that party arranges everything in advance."

Once the tanker is filled, another official usually arrives - a surveyor hired by the government to inspect the cargo - who is bribed to pass everything off as legitimate. The route of the tanker then differs, depending on its papers.

The main risk is being stopped by patrolling US or British vessels. "If I have official papers then all is fine, even if I am carrying twice the stated shipment," said the captain. "When I don't have papers we cross into Iranian waters, we carry an Iranian flag and bribe the Iranian coastguard. It's a great business for them too. If we are arrested by the Iraqi navy, it's easy. They are involved in the party after all."

The price of the oil depends on how far the smugglers carry it towards deep water, where there is more risk of being caught. Each part of the business is controlled by militias and parties: from getting the oil out of refineries or terminals to getting it safely past the border guards and navy vessels. "You need someone to protect you," said the captain. "You need influence, otherwise you will be killed immediately."

Another Basra oil smuggler said: "When we transport oil on land in tankers we use official police cars to escort us - better to travel at night."

One former Iraqi oil industry insider said dealers made the biggest profits, while militias' took about 30%. "In each step and process of the oil industry in Iraq there is corruption, it's like a triangle: oilfields, depots and refineries.

"Oilfields in the south are under the control of Shia militias and their political parties, they smuggle crude oil through Basra directly. Some of the large depots are in Sunni heartlands, in Yusifiya and Baiji. Sunni insurgent groups, such as the Islamic Army in Yusifiya, take a cut in exchange for 'protection' - a bribe for not attacking the depots.

"Once the oil reaches refineries, we are back into Shia-controlled smuggling. Even when the petrol finally reaches the outlet, the Iraqis are paying extra to petrol station owners and by [doing] that benefiting corrupted militiamen."

Oiling the wheels of war: smuggling becomes the real economy of Iraq | Iraq | Guardian Unlimited

IRAQ OIL STRIKE ON HOLD, TROOPS REMAIN

WASHINGTON, June 8 (UPI) -- With an arrest warrant looming, an Iraqi union leader warned during a U.S. visit failed negotiations will escalate the standoff in Basra's oil sector.
Faleh Abood Umara, general secretary of the Iraq Federation of Oil Unions, said a five-day cooling off/negotiation period, which began Wednesday, is crucial to keep Iraq's oil sector pumping and 1.6 million barrels per day flowing to the global oil market.

IFOU, an umbrella group representing more than 26,000 workers, has threatened to strike since early May over the draft oil law and other working conditions.

It postponed the strike twice after meeting with Prime Minister Nouri al-Maliki May 16. IFOU says Maliki agreed to their demands, which included union entry to negotiations over the oil law.

Citing a lack of response from Maliki, and sparked by the Iraq Pipeline Company's halt of regular bonus payments, the Iraq Pipelines Union began the strike Monday, shutting off oil products from Baghdad and the southern regions.

The situation in Basra, Iraq's main port city and oil export hub, escalated Tuesday as Iraqi armed forces surrounded striking workers and Maliki issued arrest warrants for union leaders.

"I am one of them," said Umara, waiting to talk to Rep. Dennis Kucinich, D-Ohio, in his office. "Luckily I was out of the country." Warrants were issued for 10 union leaders, he added.

While the strike is on hold until Monday, Naftana, a British solidarity group, reports union officials in Basra say troops are still surrounding workers in Sheiba, in Basra province, and the warrants are still active.

U.S. Labor Against the War, a large, anti-war faction of U.S. unions, reports a Iraqi general tasked with arresting protesters refused, threatening to resign and join the striking workers.

Umara said if no deal is reached, the warrants will likely be executed and the strike back on.

"Not just the oil unions are going to strike throughout the country," he said, "but all the other unions will be striking as well, in solidarity."

Umara and Hashmeya Muhsin Hussein, president of the Electrical Utility Workers Union, are touring the United States this month.

United Press International - Energy - Briefing

Maliki : What is the conspiracy against Iraq aimed at stopping the democratic process and the return of the defunct regime
09.06.07

Wasit-agencies : Nuri al-Maliki said the Prime Minister what is happening in the Pacific Regional Tamerali Iraq is not aimed at the government, but there are only targeting full suspension of the democratic process in Iraq and overthrowing the constitution and the return of the ousted regime. Al-Maliki said that Iraq and all its extensions geographical and historical depth of each Mekonanh and leanings multiple is in trust all of which requires us to exert more effort and work to preserve ...

On this great responsibility and historical.
He added during his visit to the Wasit governorate in the late hours of Thursday night, he met with the province and a number of clerics and directors of departments, university professors, Wasit and clan elders that the Iraqi government has to consider Petkadireal cohesion and solidarity among the components of the Iraqi people and work hard to achieve prosperity for the people, by maintaining the benefits achieved by itself in the forefront of the election legislation and the Constitution.

He explained that the cabinet can not find a magical solution to all the problems suffered by the Iraqi citizen because the former dictatorship left us many problems abhorrent. He continued what has been achieved in Iraq reduce this stage is a good thing, but our significant level of economic and political reconstruction and service and political relations with the international community. He added all these things now begun as a painting want to yield itself to be clearly Iraq .. Iraq, and that we want an Iraq for all ... Everybody which are equal in rights and duties.

He said we have a great will to build ourselves and our nation-building to be completed, but we suffer from some of the violations and we all have a responsibility to stop the violations in order to achieve our goal of fully recognizes the security file and therefore no need for us to the survival of the multinational forces in helping to maintain security in Iraq. He said the prime minister told the audience for Everybody knows you happening in the Pacific Regional ordered not to change the level of the elected government, but there is targeting full suspension of the democratic process in Iraq and overthrowing Iraqi constitution and the return of the ousted regime. He added with regret issued this tendency of some of the political process and share in the parliament in some cases.

He pointed out that the draft law was completed and the provincial assemblies containing many of the powers of the boards so as not to compromise the unity of the Iraqi state, in addition to the issuance of a decision by the Council of Ministers allowed border provinces import foodstuffs coordination with the Ministry of Commerce as well as oil derivatives. He added it is necessary to develop border outlets including Iraq and befitting its economic and security, including the outlet Zorbatiyah in Wasit governorate.

The Prime Minister on the formation of a special regiment of the spread in the North Essaouira to be Akhttiaranazare sons of these areas to protect citizens from terrorist operations carried out by terrorists. The governor, the president of the Wasit governorate forward a detailed presentation at the beginning of the meeting about the most important problems and obstacles confronting them not to maintain direct Zubaydeh to build a power station and develop Al-Ahdab oil field and the American forces to intervene in the affairs of the Council and influence the decisions taken by the arrests suffered by the people of the governorate without legal reasons.

The Prime Minister said that Iraq is a sovereign and independent State and the American forces to intervene in the work of the civil violation of the sovereignty of Iraq. He added that the services we receive any interference from the American forces in the work of our actions we are taking and stop those interventions when alone. Considering that the incidence of such violations may be the result of judgments by field commanders of the American forces do not necessarily represent the viewpoint of the leadership of the coalition forces, but for the government to stop such behavior. He said that »survival of these forces is linked to the security of United Nations resolutions and not to interfere in the affairs of other, and accelerate the advancement of maintaining security capabilities and will be eligible to receive the security file avoid the all these complications. «

Distribution paid to employees of the emergency former army

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Baghdad-Sabah.

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An official source at the Veterans Affairs at the Ministry of Defense that the distribution of the amount paid emergency temporary (19th) for the months (June-July 2007) between members of the former army of military and civilian personnel and Mwinyi retarder war officially registered in the rehabilitation center

(Except recruited in the state permanently or holding and of retired and deceased) will be effective on September 13 this June, The source explained that the branches of the Rafidain and Rashid bank allocated for this purpose will be in the process of distribution throughout the country.

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warned of the repercussions of reduced support without addressing the issue of the entry of citizens

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Mahdi Al-Hafiz : economic reform priorities lie in strengthening the partnership between the public and private sectors

Baghdad morning

An economic expert stressed that the reform steps taken in the area of reducing support economic consequences caused economic distress experienced citizens as well as a direct cause of the causes of inflation expected further reductions under the arrangements for the support reform with the International Monetary Fund before the end of this year will create new troubles for the citizens calling for a deal lower incomes and rising inflation rates

This came in an exclusive interview to "Assabah" on the priorities for economic reforms.

He said economic thinker Dr. Mahdi Al-Hafiz that the priorities of economic reform requires strengthening of the partnership between the private and public sector.

He explained in an article in his morning,

The goal of this partnership to develop the country's public administration on the basis of a modern, effective and free from bureaucratic constraints and concepts obsolete. Hafiz focused on financial sector reform, monetary and banking system, because it is an important venue for broad adaptation of bilateral relationship between the private sector and public sector towards strengthening and expanding industries and SMEs and contribute to the diversification the national economy in the long run.

in this context, Hafiz pointed to several actions taken recently to remove the imbalances in monetary and fiscal policy and reform of the state budget through reducing current expenditure for capital spending and for the abolition of the substantial support provided by the government for more than a few goods and services.

Turning to the reforms in the monetary policy and issuance of a new law for the Central Bank within independence for his role in the transitional tasks pillars of the national economy.

He pointed out that the monetary policy announced recently such as the Central based on increased interest rates for deposit and lending pointing out that these measures have created conditions cumbersome for the private sector.

He said :

The hardline policy followed by the Central Bank weakened the opportunities and possibilities of partnership between private and public sector to increase economic growth and to address the unemployment problem, stressing the adoption of monetary policy provides generous banking facilities to enable the private sector to contribute to economic growth.

He added, however recognition of the need to reduce inflation to rise only that the policy creates deflationary consequences of a new recession is low investment and not contributing to the creation of jobs in a country with unemployment of more than 50% and said : the objective of these reforms, liberalization of prices and address distortions in the price system as one of the pillars of market mechanisms.

The Preservers : The most important part of a package of reforms often taken for the implementation of existing agreements between Iraq and the IMF would not provide a solution to the dilemma of total reliance on oil revenues as a principal source of financing the budget and economic actors.

Hafiz pointed out that the reform steps taken in the area of reducing support economic consequences are still heavy for the economic hardship experienced by the citizens as well as it has become the direct cause of the reasons for the increase in inflation in the country.

He expected to hold further reductions under the arrangements for the support reform with the International Monetary Fund before the end of the year : something that will create new troubles for citizens without addressing the problem of low incomes and high rates of inflation.

He called rely on the strategic and comprehensive national development and reform because addressing the problems and the negative impact inflation Maiaanih isolation from the rest of the Iraqi economy, leading to the rule of one-sided.

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The proof of the success of the democratic experiment

The whole number of deputies that the political movement in the country that is today the withdrawal of Virtue and the withdrawal of coalition Mahdi Al-Hafiz from the Iraqi List and the withdrawal of ministers from the bloc Chest government and the withdrawal of the Minister of Justice

The candidate from the list of the Iraqi cabinet and Maliki's visit to Kurdistan and his meeting with Massoud Barzani, all these moves represent a natural problem healthy phenomenon democracy to be obsessive work by all the political blocs is the future success of the political process in Iraq and Iraqi citizenship and identity of Iraq.

Member of the House Mufeed al-Jazairi of the Iraqi List : that mobility political undergone by the country and the political upheavals of the withdrawal of the Virtue Party from the coalition and the withdrawal of Mehdi keeper of the list and the withdrawal of Iraqi ministers bloc chest from the government and the withdrawal of the Minister of Justice candidate from the list of the Iraqi cabinet and Maliki's visit to Kurdistan and his meeting with Massoud Barzani, all reflect that matters in the case and it is not so far taking its stable.

It also expresses mobility end of things to take final form, which serves the development and solve the existing problems in the Iraqi arena and the Iraqi citizen the right optimistic that these moves that lead or are moving in the right direction but it is premature to build conclusions of the circumstance that we are not normal and exceptional.

Meanwhile, member of the House Aldectorazad Bamarni the Kurdistan Alliance in this regard : that the political situation in Iraq today is undergoing difficult and very sensitive and there are interactions intellectual and political arena as a result of this political interactions,

it is natural for the emergence of differences within some lumps Awasraat Between some political figures, these parliamentary blocs while Founded had been well-founded and were far from the intellectual and strategic outlook for the agreements, these blocs are more likely than other divisions such normal democratic situation and I expect that the coming period would witness such cases that lined each group in its political, social and intellectual.

Further, we find that these meetings conducted by the Prime Minister, Mr. Al-Maliki was necessary Whether these meetings in Baghdad and Erbil it is in the center of one discussion and deliberation in solving problems, if any, as well as to my list of coalition and the Kurdistan Alliance are blocks Co in Parliament is essential to health these meetings are continuing between the two presidents in Parliament.

A member of the House Salim Abdullah Accord Front, the phenomenon of volatility and political movement in the country that is a healthy phenomenon that would settle the political process and comes to result in the emergence of this movement is new blocs or Tvkkat blocks to the list, keep important national framework which would govern all these parties.

Abdullah added : The political case is unusual and should not exceed one another considerations mean unfair competition, we are now looking at the future of the political process in Iraq moving in the right direction if the lumps all Astaadadaha to review and diagnose and correct errors track and the fact that serious.

A member of the House Fawzi Akram Terzi on the coalition consolidated, Sadri movement, announced that the phenomenon of mobility enjoyed by the political stage is the best proof of the success of democracy is a healthy phenomenon, political and sign a first step towards democracy that we were denied for long decades. He added Terzi :

that the meeting with Mr. al-Maliki Mr. Msaudalbarzani in Kurdistan is a venue for routine between Prime Ministers and Governors, as previously met Mr. Prime Minister, with a number of governors, chiefs and important personalities and even with the gunmen.

He Terzi : We reject political deals at the expense of vulnerable and disadvantaged people who have sacrificed a lot to uphold the word of truth and justice and strive for the unity of Iraq's land and people and the note and state sovereignty as we categorically reject preference category at the expense category that we enjoy a sense of citizenship and identity of Iraq and the Iraqi Anda before our eyes - Iraq Division the blood of the oppressed and our innocent martyrs.

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to allow the villagers of the Babylon province carry weapons

Hilla - Sabah.

Babil police directorate decided to allow the citizens of the villages and countryside possession of firearms light under official permits.

Qais Ma'muri provincial ho****al police chief of Babil said in a press statement : said that the decision to allow carry these weapons came so families can protect themselves against any potential attack

added Ma'muri provincial ho****al that will regulate the carrying and possession of firearms under permits issued by the official certified Police Directorate, explaining that this does not include allowing residents within the city because their protection is ensured by the security forces alone

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