Thread: Archive Latest News - Think Tank - 01/01/08 - 14/04/08

Iraq Set to Sign Oil Field Agreements

Iraq looks set to sign technical support agreements with four major oil companies to develop five oil fields by the end of March, according to Iraq's Deputy Oil Minister Ahmad al-Shammaa.

The deals could potentially increase Iraq's crude output by around 500,000 barrels a day.

"The second round of talks is being held in Amman with four majors," the minister told Bloomberg reporters.

"The third round would be to sign these contracts," he added.
The new agreements will help increase production in five producing oil fields which could include Rumeila and Missan in the south, Kirkuk in the north and East Baghdad.

Iraq has extended its invitation to 18 February for international oil companies to submit registration documentation to bid for participation in the development of some of Iraq's oil fields, the Oil Ministry announced earlier this week.

Offshore Technology - Iraq Set to Sign Oil Field Agreements

Desperate for Iraq's oil wealth

A reported revelation by an Iraqi member of parliament that US oil companies are offering $5 million to each MP who votes in favor of the country's draft legislation on oil and gas law underlines the Washington-backed quest for control of Iraq's oil wealth.

Indeed, questions have been raised by vested interests about the veracity of the report, carried by a Bahraini newspapers, which did not identity the Iraqi MP who made the revelation. Some of the sceptics "observed" that the newspaper had opposed the US-led war against Iraq and therefore it was "biased."

According to the unnamed MP, the amount that could be paid to pass the votes do not exceed $150 million in the case of $5 million to each MP, pointing out that the draft law requires 138 votes to pass. It would mean that the companies said to be involved in the "secret offer" are already assured of 108 votes and they are seeking 30 more votes.

Whatever the case, it is definitely not beyond anyone's imagination that US oil companies are desperate to have the Iraqi parliament approve the draft legislation that would open up the country's oil and gas sector to foreign operators. Effectively, it would the nationalisation of oil companies in Iraq three decades ago.

With some experts suggesting that Iraq's reserves of oil could exceed even those of Saudi Arabia, international oil companies are rubbing their knuckles to enter Iraq's hydro-carbon sector with a free hand.

While Iraqi Prime Minister Nouri Al Maliki hails the country's new oil law as a "solid base for unity of all Iraqis," but Iraqi MPs are opposed to adopting it. Its passage through the Iraqi parliament definitely looks like a non-starter, but then there could be stronger forces at play, given the massive wealth involved.

For many Iraqi MPs, the issue is not as much as opening up the sector as is the fact that the draft legislation would lead to a division of the country's oil wealth. Some see it as focused on sectarianism and divides the country and the wealth into groups -- Kurds, Shiites and Sunnis, with the Sunnis getting very little, if any at all.

The Iraqi Federation of Oil Unions plans to mobilise its 23,000 or so members against the draft and says it wants different law, "which will be in the interests of Iraqis."

Allowing US oil giants to gain direct and indirect control of Iraq's oil sector was indeed one of the key objectives of the US invasion and occupation of Iraq. That is also one of the key reasons for the US not setting a timetable for withdrawing its military from Iraq despite regional and international pressure.

Clearly, the US has failed in its efforts to realise its other objectives, like installing a US-friendly regime in a "democratic" Iraq, and using Iraq as a base for action against "rogue" states such as Iran and Syria.

Against that backdrop, Washington's only hope is realise at least one of the objectives in order to make good its promise to US multinational oil companies that Iraq would be delivered to them in a silver platter, and, as far as the US is concerned, if it means looking the other way when bribes change hands in the bargain so be it.

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Iraqi business owners bid on contracts

Small-business owners in Iraq attended training seminars at business centers in Fallujah and Ramadi to learn how to bid on government contracts, officials said.

US Marines and civilian reconstruction officials hosted seminars at the refurbished Fallujah Business Development Center and the Ramadi Business Center using a bilingual presentation to advocate the expansion of small-business operations in Anbar province, a release by the U.S. II Marine Expeditionary Force said.

A Marine contracting official said the local sheiks and business owners met the chance to bid on U.S. government contracts with enthusiasm.

The seminar focused on training local businessmen how to find solicitations advertised by the US government on the Internet and advised them to register with a US database to receive future request-for-quotes, the official said.

The Marines reported 135 sheiks and local businesses attended the seminars.

Iraq Development Program - Iraqi business owners bid on contracts

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Bonyan International Investment Group helps develop Kurdistan region

Abdullah Atatreh, Chairman of Bonyan International Investment Group, one of the major real estate development companies in the UAE has announced a partnership and strategic alliance with the Iraqi Al Hanthal Group.

Al Hanthal is considered as one of the most prominent developers operating in and Kurdistan Iraq and it owns multiple businesses in the Middle East and GCC .This partnership will lead to the establishment of the new company Bonyan Kurdistan.

The new company aims at putting the professional expertise and capabilities of Bonyan International Investment Group, which has already developed major projects in the UAE and several Arab countries, into the development of Kurdistan.

Atatreh said that the Bonyan Kurdistan company will shortly be launching a first of its kind mega real estate project in Iraq Kurdistan called Bonyan Al Sulaimaniya City, an integral and modern project comprising residential and commercial towers, villas, shopping malls and two hotels. Bonyan Al Sulaimaniya city will cover approximately an area of one million square meters and is located in Al Sulaimaniya province.

“The project’s architectural plans are being currently finalised and are expected to be completed within three months. The project is divided into several stages, the first of which will be completed by 2010”, he added.

Moreover, he mentioned that Bonyan Kurdistan is planning on developing other projects in Kurdistan and the new company is studying further investment opportunities in Arbil and Dahuk.

Wadih Al Hanthal, Chairman of Al Hanthal Group, explained that Bonyan Kurdistan enjoys the full support of the Kurdistan Regional Government, which is planning on supporting the project and which is working hard on attracting international investment companies.

He also stated that Bonyan Kurdistan gained the attention of the government and the support of both, the Prime Minister Nechirvan Barzani who gave his blessing to the partnership joining the two parties, and the Deputy Prime Minister Omar Fattah who kept a close eye on the procedures related to the company and the project.

Bonyan International Investment Group and Al Hanthal Group praised the support and care given by Herrish Muharam, head of Kurdistan’s Board of Investment for the evolution of the Bonyan Kurdistan projects.

Iraq Development Program - Bonyan International Investment Group helps develop Kurdistan region

Vote on 2008 Budget Will be next Thursday

Firyad Rawanduzi, the MP from Kurdistan Alliance Faction, exclusively stated to PUKmedia “The Council of the Representatives, decided, in its session today, to postpone the vote on 2008 budget to next Thursday in order to have more discussions by Parliamentary Factions to reach solutions concerning the disputed issues.”

PUKmedia :: English - Vote on 2008 Budget Will be next Thursday

Presidential council ratifies law bringing ex-Baathists back to jobs

Iraq's presidency council on Sunday approved issuing the controversial Accountability and Justice law that allows lower-ranking former Baath party members to reclaim government jobs, finalizing a key piece of legislation sought by U.S. administration.

The measure was thought to affect about 38,000 former members of Saddam Hussein's ruling political apparatus, giving them a chance to go back to government jobs. It would also allow those who have reached retirement age to claim government pensions.

Parliament passed the "Accountability and Justice Law" last month, winning praise from U.S. officials for helping promote reconciliation among Iraqi sects and ethnicities.

A statement from the presidency council, which has to ratify all bills passed by parliament, said it “would suggest amendments to the newly passed law”.

However, the announcement did not set a timeline for reviewing the amendments, but pointed out the “parliament would then have to vote on those amendments”.

Besides Hashemi, the council consists of President Jalal Talabani, who is a Kurd, and Shi'ite Vice President Adel Abdul-Mahdi.

Hashemi said late last week he would not back the legislation because it “would force many people given jobs after the 2003 U.S.-led invasion out of those posts and also for including vindictive significance derailing the progress of the national reconciliation in Iraq ”.

The statement noted “the council had been debating the law, but that those discussions did not finish within the 10 days the constitution gives it to review such legislation”.

"Although we respect parliament, this law is contrary in many articles to what was agreed by political leaders," the statement said, without citing the articles”.

The Iraqi constitution stipulates that a legislation issued by the council of ministers and endorsed by the parliament becomes law automatically unless the presidential council specifically rejects it.

Presidential council ratifies law bringing ex-Baathists back to jobs | Iraq Updates

Maliki in Mosul to begin decisive battle

PM Noori Maliki's visit to Nineveh yesterday sent clear message confirms Govt.'s interest and intention to return this province to the country's control after four years of suffering because Qaeda's violence and terrorist bombings that hit its cities and residents.

Maliki's visit followed by another visit of Defense Minister Abdulqader Mohamed and Multinational forces' commander in Iraq Gen. David Petraeus who reached to the city last night for the same reason.

Maliki put at emergency session of "group of crisis" in Nineveh final touches of "Law Enforcement" plan that attended by senior military officers and the province's officials.

Maliki in Mosul to begin decisive battle | Iraq Updates

Double demand for the dollar in daily auction

Demand for the dollar doubled in the Iraqi Central Bank's auction on Sunday, the first session this week, registering at $74.460 million compared to $36.770 million on Thursday.

"The demand hit $8.700 million in cash and $65.760 million in money transfers outside the country, all covered by the bank at a stable exchange rate of 1,212 Iraqi dinars per dollar, unchanged for the fourth consecutive session," according to the central bank's daily bulletin which was received by Aswat al-Iraq- Voices of Iraq- (VOI).

None of the 13 banks participating in the auction offered to sell dollars.
Speaking to VOI, Ali al-Yasseri, a trader, attributed the higher demand to the return of government remittances. "Cash bids halved," al-Yasseri said, envisioning a decrease in the exchange rate by tomorrow or Tuesday.

The Iraqi Central Bank runs a daily auction from Sunday to Thursday.

Double demand for the dollar in daily auction | Iraq Updates

Iraqi dinar recovering and it is the base in business dealings

Heads of Iraqi unions of Chambers of Commerce confirmed that 2008 will be a year of quality transition in economic performance and the Government is expected to initiate the implementation of important projects, although that is linked to the adoption of the budget, which is still under parliament examination, scrutiny and amendment for approval.

On the sidelines of the sixth meeting of the Union within its to twelfth session which was held in Baghdad, here are some interviews with a number of heads of unions representing the traders segment.

Head of the Iraqi Federation of Chambers of Commerce, Jaafar Al-Hamadani, is optimistic for achieving a qualitative development in the area of trade relations with the world and for the improvement of security; however, he blamed on some differences in the formation and delay of activating the role of the National Authority for Investment to benefit from the advantages of the new investment law, but he expressed confidence in the promising future of the private sector, especially after the government decided to support it. He pointed out that supporting private banks will facilitate the work of traders, and the partnership launched by the ministries of industry, minerals and oil with international companies will be reflected on private activity in Iraq. He called for speeding up the establishment of the intellectual property rights law to be presented to the Cabinet and then to the Parliament and considered it an important means in the organization of economic life in the country.

Head of Baghdad Chamber of Commerce, Amjad Al-Jibouri, considered the monetary policy followed by the Central Bank to control the exchange rate of the dinar against the dollar a successful policy because it maintained trade from the losses which traders are exposed to due to monetary shocks. He said that The Central Bank and the Ministry of Finance succeeded in supporting the national economy in their monetary and fiscal policy, and raising the value of the Iraqi dinar is one of the results of these policies.

Al-Jibouri called for adopting an import policy that limits the chaos afflicting the commercial market and represented by dumping it with commodity and especially of the bad type, and believes that this is the responsibility of the Ministries of Finance and Trade relying on the representatives of chambers of commerce. About his vision for the future of the Iraqi economy, he said, "the economy is the engine of social and political life and if stability is achieved, the future of the Iraqi economy will be in the ranks of developed countries ... And will leave developing countries."

Head of Najaf Chamber of Commerce, Zuhair Mohammed Radhi, is optimistic of the economic future of Iraq due to the ingredients of success it has both in human and material wealth or its strategic position and border outlets which overlooks the world. He called for the creation of a new structure that suits the potentials of Iraq to start toward the economy of market and reiterated the importance of the supporting laws and legislation.

The last speaker was the Head of Nasiriyah Chamber of Commerce, Abdul Razzaq Al-Zuheiri,, who spoke about the lack of clarity and knowledge of the importance of the role of the private business sector in the formulation of trade policy, pointing out that the merchants segment is the one relied on to provide requirements of daily life and construction requirements. He trusted the government to support the commercial sector in a way that suits the size and role in the development of other economic sectors. He pointed out to understanding of government departments for the importance of Chambers of Commerce; therefore, involving them in all committees is hallmark of the success of proper planning for the economic process and development of the country.

Iraqi dinar recovering and it is the base in business dealings | Iraq Updates

Iraq sends memo to Iran govt. on excesses on joint oilfields

The Iraqi oil ministry sent the Iranian government a memo on excesses on joint oilfields, the Iraqi undersecretary of foreign affairs said on Sunday.

"The foreign ministry, via Iraq's embassy in Tehran, sent the oil ministry's memo to the Iranian government demanding cessation of all activities on these fields pending the signing of an agreement in this regard," Muhammad al-Hadj Hammoud told Aswat al-Iraq – Voices of Iraq – (VOI).

Hammoud did not reveal when this memo was sent. He said so far the Iraqi foreign ministry has not received a reply from the Iranian side.

"The foreign ministry is following up this issue. A delegation will visit Iran to discuss border issues, including the joint Iraqi-Iranian oilfields," he said, hoping "good results would be reached on this affair if the Iranian side had good intentions."

Iraq's anti-corruption agency chief, Moussa Faraj, had said in press statements that Iran seized more than 15 oil wells in the border area of al-Tayeb, southern Iraq.

"Iraqi reports documented Iran's encroachments on Iraqi wells as the Iranian authorities seized oil wells after expelling Iraqi engineers and workers," said Faraj.

Iraq sends memo to Iran govt. on excesses on joint oilfields | Iraq Updates