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

Jordan receives 200 tons of Iraqi oil

The Jordanian Kingdom received 200 tons of Iraqi oil as part of an agreement with the Iraqi government to import oil, a Jordanian official source said on Wednesday.

"On Wednesday, the kingdom added 200 tons of Iraqi oil to its oil reserves under an agreement between the Iraqi and Jordanian governments," Engineer Hikmat Saleem, the director of a trade exchange department, told Aswat al-Iraq, Voices of Iraq, (VOI).

"The cargo included six oil tank trucks and was transported to depots especially designated for the purpose," Saleem indicated.

The director did not reveal the amount of oil that has been transported to the kingdom before and refused to comment on the import price.

Aswat Aliraq

Inflation rate up by 3.4% in January

Iraq's inflation rate rose by 3.4% in January 2008, compared to December 2008, while the annual inflation rate jumped by 1.3% in the period January 2007-January 2008, the country's Ministry of Planning and Development Cooperation said on Wednesday.

"The ministry's Agency for Statistics and Information Technology has finished its inflation report for January 2008, which is based on field data about the retail prices of goods and services in local markets," read a ministerial statement received by Aswat al-Iraq, Voices of Iraq, (VOI).

The report showed a total 3.4% increase in consumer price index, indicating that the prices of foodstuffs; cigarettes and beverages; cloth, clothes and footwear; furniture; fuel and lightening; medical services and medicines; varied good and services; and rent were higher by 2.1%, 1.2%, 0.4%. 0.7%, 8.7%, 1.2%, 0.9% and 2.1% respectively.

Constituting 4.9% of household spending, the report revealed a 0.5% decrease in transport cost in January 2008, compared to the previous month.

The report also showed a hike of 1.3% in the annual inflation rate from January 2007-January 2008, attributing it to a significant increase in consumer price index.

http://www.aswataliraq.info/look/english/article.tpl?IdLanguage=1&IdPublication=4&NrArticle =70295&NrIssue=2&NrSection=2

Iraq ministerial amendments to further delay

Ministerial amendments that have been under discussion for a long time are subject to further delay. New complications come up each day as different parties impose additional conditions. The Accordance Front that has set the ratification of Amnesty Law as a condition for its return to the government has put forth a new condition that stipulates changing the internal system mechanism of the ministerial council.

As for Kurdistan, head of the region’s endowment Dr. Fouad Hussein announced that the committee he presides charged of considering amendments on the future Kurdish government has achieved 90% of its work. He added that the new government formation will be declared at the end of March while names of ministers will be declared this month. Hussein noted that the government’s Prime Minister will be Neshervan Barazani, adding that the number of ministries will be reduced to less than the existing formation.

On the other hand, head of the Supreme Independent elections commission Faraj Al Haydari noted that the commission needs at least five months after the issuance of elections law to start preparing for the electoral process. However, citizens have endured from the electoral process and called to change the system of blocs’ lists.

Iraq ministerial amendments to further delay | Iraq News | Alsumaria Iraqi Satellite TV Network

Iraqi Electricity Minister accuses armed groups of intimidation

Iraqi Electricity Minister Karim Wahid accused armed groups of threatening workers in the electricity filed in Baghdad, which is leading to an inequitable energy distribution in all Baghdad Districts.

In another context, Wahid appealed for four billion dollars to cover the costs of reconstructing electricity stations. For more details, click on play movie to watch the video report of this article

Iraqi Electricity Minister accuses armed groups of intimidation | Iraq News | Alsumaria Iraqi Satellite TV Network

Baghdad International Airport rocketed

Five Katyusha rockets on Wednesday afternoon fell onto Baghdad International Airport west of the Iraqi capital, an Interior Ministry source said.

"Five Katyusha rockets fell onto Baghdad International Airport, this afternoon, with no reports of casualties," the source, who requested anonymity, told Aswat al-Iraq- Voices of Iraq- (VOI).

The source added that the U.S. forces sealed off all the routes leading to the airport which also used by the U.S. troops as a base.

Aswat Aliraq

Kirkuk crude pumping through northern pipeline continues

Iraq’s Kirkuk crude oil in stock tanks in Turkey has reached 2.8 million barrels while pumping through northern pipeline has continued at a rate of 480,000 barrels a day, a maritime source said. Iraq has pumped 600,000 barrels to Turkish Toyrish Company to refine oil early this week through the pipeline from Ceyhan port to Kery Kelly refinery with a rate of 113,000 barrels a day, the source added. It is to be mentioned that Iraq oil exports rely mostly on Southern Basra port which produces 1.5 barrels a day.

Kirkuk crude pumping through northern pipeline continues | Economics News | Alsumaria Iraqi Satellite TV Network

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Iraq Finance Ministry to provide Real Estate Bank with $82 million

Finance Minister Baker Jabr Zubaidi announced that finance Ministry is intending to provide Real Estate Bank with 82 million dollars in order to enhance its ability to give loans to citizens.

Finance Minister pointed out that the Ministry will grant Real Estate Bank 100 billion Iraqi Dinars in order to increase the Bank’s capacity to grant Real Estate loans to the citizens that are willing to borrow. In the same time, he stressed that Real estate Bank shall spend the money that is still in the bank the amount of which is of 90 billion dinars during the next 6 months.

Iraq Finance Ministry to provide Real Estate Bank with $82 million | Economics News | Alsumaria Iraqi Satellite TV Network

OPEC unlikely to change oil production

Sources from OPEC reported that the international organization is unlikely to reduce oil production during its March meeting due to the surge of prices and uncertainty about supplies in Venezuela and Nigeria. The sources noted that it’s soon to issue a final statement. However, it’s evident that there will be no change in production.

On the other hand, head of Libyan national oil institution Shukri Ghanem said it would be difficult for OPEC to reduce its oil production as prices are mounting exceptionally.

OPEC unlikely to change oil production | Economics News | Alsumaria Iraqi Satellite TV Network

Trade Bank of Iraq's record start to 2008
The Trade Bank of Iraq (TBI) saw a record start to 2008 in terms of Letters of Credit (L/Cs) issued by private banks.

In January, 88 of the 126 public sector L/Cs received by TBI (69.8%) were channeled to private sector banks in Iraq.

The figure for 2007 was 28.25% and for 2006 only 7.4%. TBI expects a continuation of this strong support for the private sector in 2008.

TBI's increasing business sharing with private banks is yet another reflection of the efforts TBI is making to assist the overall development of Iraq's banking sector.

'We are very proud of the number of L/Cs we have been channeling through private sector banks and this number is set to grow in 2008, both in absolute terms and as a proportion of L/Cs issued.

The L/Cs were used by private sector banks to, among other things, cover the imports of Iraqi Ministries and Government Departments. In 2007 we also extended credit facilities to some private sector banks in Iraq; such facilities constituting about 26.8% of our total cash credit facilities,' commented the Trade Bank's chairman, Hussein Al Uzri.

In 2006, TBI and the private sector banks agreed on the procedure to be adopted in their public sector L/C business sharing. TBI's criteria for choosing a bank depends on its balance sheet, correspondent network, membership of the SWIFT network and the capacity of its staff and their experience in issuing L/Cs.

Trade Bank of Iraq's record start to 2008 | Iraq Updates

South Korea and Kurdistan ink new deals
Construction and oil projects seen as beneficial to both parties.

A $12 billion contract gives energy-poor South Korea the right to develop new oil fields in the region.

Kurdistan Region's Prime Minister Nechirvan Barzani signed a preliminary agreement with a number of South Korean companies during his official visit to the country last week. According to the agreement, the Korean companies are to implement construction and reconstruction projects in the region in return for exporting Kurdistan Region's oil.

The Kurdish PM said in a press conference after signing the agreement that the value of the contract is $12 billion.

It is expected that the final agreement will be signed between the two parties within the next two months. The whole agreement is related to constructing roads and bridges, power-generating stations, and water and irrigation projects in Kurdistan Region in return for oil.

Kurdistan Regional Government (KRG) signed an oil exploration and production contract with a Korean company as part of the production sharing contracts (PSCs) the government signed last year following the approval of Region's Oil and Gas Law by its Parliament. This act of the KRG irritated the Central Government's officials, in particular Iraqi Minister of Oil Hussein al-Shahristani, who denounced the deals and defined them as illegal.

The national Oil and Gas Law is still pending approval by the Iraqi Council of Representatives due to disagreement among the different political groups inside the Parliament about the law.

Shahristani claims that any oil deal signed before the approval of the national law is considered illegal.

Kurdish authorities, on the other hand, denounced Shahristani's claims and argue that what they have done (signing the deals) is completely legal and conforms to the Iraqi Permanent Constitution.

PM Barzani reiterated that in Seoul during his visit.

"The agreement we have signed with the Korean companies is legal and conforms to the Iraqi Constitution; therefore, I don't think that the Iraqi government hinders this agreement," Barzani told reporters in the press conference after signing the agreement.

He also added that the time has passed when the central government was the only decision-maker, particularly in regard to issues related to the regions.

The Korean oil company announced that they believe in the constitutionality and legality of the deal they have signed with the KRG. This is at a time when the Iraqi Oil Minister decided not to cooperate with those companies that have signed oil deals with the KRG. As part of the decision, the Oil Ministry decided to stop exporting oil to an Austrian oil company, which has signed a PSC with Kurdish authorities.

Despite all those threats and concerns, the KRG is still determined to use its "constitutional right" of extracting and exporting the region's oil and will share its revenue with other parts of Iraq. The companies have also reinforced their belief in the constitutionality of the deals and have decided to keep their agreement.

During his visit, Barzani emphasized the fruitful relationships between Kurdistan and South Korea and thanked them for their support and help in reconstructing the region.

The South Korean government based a number of its troops in Kurdistan Region as part of the multinational forces after the Iraqi war of 2003. The Korean troops have helped the region's government, especially in the construction and reconstruction of the infrastructure of the region as well as in several other sectors such as health and education.

The Korea International Cooperation Agency (KOICA) has conducted several programs such as technical and vocational training programs and healthcare service programs for the people of Kurdistan.

Barzani visited KOICA headquarters and the LG Company and discussed their cooperation with Kurdistan.

South Korea's President-elect, Lee Myung-bak, met Barzani on Thursday, February 14, in the capital city of Seoul. During the meeting, President Myung-bak said the Korean government would participate in implementing infrastructure development and reconstruction projects in Iraq and rebuilding Kurdistan.

"Kurdistan Region is an oil-rich area; therefore, I hope that the Regional Government paves the way for Korean companies to implement various projects in this area," said Myung-bak in the meeting. "And I believe that the Korean companies are able to implement huge and strategic projects in the region."

Barzani ended his "fruitful" visit to South Korea on Tuesday, February 19.

South Korea and Kurdistan ink new deals | Iraq Updates