Thread: Archive Latest News - Think Tank - 15/04/08 - 26/08/08

Iraq''s oil production to reach three million bpd by late ''08 - Hariri says

Iraq's oil production could reach unprecedented record of three million barrels per day by the end of 2008, according to Iraq's Minister of Industry, Fawzi Hariri.

"The Iraqi Ministry of Oil's target is to reach three million barrels and we believe with some maintenance of existing oil producing wells and the combination of the oil produced in Kurdistan and local wells, we can reach three million barrels by the end of 2008," Hariri said at a press conference in Washington DC on Wednesday.

That number could reach five million barrels in the next two to three years but would require "heavy financial and technological investment" from foreign companies, because the country lacks the "know-how to maintain, sustain, or update" it's oil production facilities, according to Hariri.

He warned that the swift withdrawal of US troops from Iraq could potentially "not only dangerous to Iraq but to the whole regional stability," and derail efforts to move Iraq's economy away from the formerly centralized, state owned economy the Saddam regime to a free market economy.

The US Democratic candidates, Senator Barack Obama and Senator Hillary Clinton are calling for an immediate withdrawal of US troops from Iraq, while the Republican opponent, Senator John McCain has suggested the US forces remain in Iraq for years to come.

The Iraqi government says it has created an estimated 100,000 new manufacturing jobs for Iraqi civilians over the past two years, and has invested USD 500 million to go specifically towards state-owned enterprise inside the country. But for the first time, Iraq is opening itself up to international corporations and financial institutions for joint venture investments, Hariri said.

The government is spearheading a USD five billion effort to boost the job market around the country, particularly in Basra and Mosul, and includes a project to provide affordable housing to 50,000 government employees, which Hariri told KUNA, would create an additional 30,00 to 40,000 new jobs.

By creating new jobs, the Iraqi government hopes to coax Iraqis displaced within the country and outside to return back to their homes, He told KUNA.

Hariri is visiting Washington to try to promote the latest economic developments in Iraq and to persuade for foreign investment in Iraq at the US-Arab Economic Forum, which began on Wednesday.

كونا : Iraq''s oil production to reach three million bpd by late ''08 - Hariri says - الشؤون السياسية - 07/05/2008

Iraq ready to pay back some of the money the U.S. has invested

Boosted by record oil production and control over its own finances, Iraq has hinted on Wednesday that it is ready to return the United States at least some of the billions of dollars spent for reconstructing the country.

Addressing a press conference with Paul Brinkley, the U.S. undersecretary of Defense for Business Transformation in Iraq, Iraqi Industry minister Fawzi Hariri spoke hopefully of more than doubling the country’s oil production within two to three years with the technical support from the U.S.

Asked what he thought of the Democratic proposal for a ban on providing U.S. aid to rebuild towns or equip security forces unless Iraq matches every dollar spent by the United States, Hariri noted that Iraq has only been able to control its own finances since 2006 and said, "the government of Iraq is doing its best to support industry and housing reconstruction."

Banking on estimated oil revenue of $70 billion this year because of record-high fuel prices, Hariri sounded optimistic in "paying the money back." However, on spending on the security front, he said it is "completely a U.S. decision."

Iraq, which currently produces 2 million to 2.4 million barrels of oil a day, aims to increase the output to 3 million barrels by the end of 2008, Hariri said. Depending on the extent of foreign technology it receives, Iraq can reach an output capacity of 5 million barrels in another two to three years, according to the industry minister.

Company News Story

Iraq sets new May 18 deadline for gas field bids

Iraq's oil ministry said Tuesday it has postponed the deadline for bids to develop the Akkas gas field, a prized natural gas field in western Iraq, until May 18.

The announcement came two weeks after the previous deadline expired. Authorities did not provide a reason for the postponement on Tuesday.

But the oil ministry last week said in a report that Iraq has been unable to lure enough bids from foreign or local companies for oil and gas projects due to lack of security.

The Akkas field, which has estimated reserves of more than 2.15 trillion cubic feet, is located in the former Sunni insurgent stronghold of Anbar province. Development of the Akkas field could boost the economy in Sunni areas, where support for the government remains tenuous.

Early this year, the ministry said it was negotiating with Royal Dutch Shell PLC to conduct output tests for the field, which has five wells that are ready to be interconnected.

It could produce up to 50 million cubic feet a day as a first stage. That could be increased to 500 million cubic feet a day, which could be pumped through Syria and Turkey to consumers in Europe.

The ministry on Tuesday also postponed until May 18 bids for a separate tender to help construct two oil pipelines to link the Basra oil fields in southern Iraq with Iran's Abadan refinery. The project's aim is to export crude oil and import refined petroleum products through Shatt-al-Arab waterway.

Iraq has the world's third-largest oil reserves with an estimated 115 billion barrels, and it also sits on an estimated 112 trillion cubic feet of natural gas reserves.

Most of the country's vast petroleum wealth is located in the Kurdish north and the Shiite south.

TODAY'S ZAMAN - Iraq sets new May 18 deadline for gas field bids

US Arab Economic Forum opens deliberations in Washington

US and Arab officials meet in Washington on Wednesday to discuss the Arab-Israeli conflict, future of Iraq and ways to strengthen US partnership with the Arab world.

"The purpose of this forum is to build and improve relations between the United States and the Arab world", said Chairman of the American Middle East Economic Affairs Committee, who is organizing this event, Ahmad Chebbani to Kuwait News Agency (KUNA).

Chebbai said that the United States and the Arab world must overcome the political obstacles to strenghten their economic relations.

On the list of speakers, Saudi Foreign Minister Saud al-Faysal, Egyptian Minister of International Cooperation Fayza Aboul Naga, Iraqi Minister of Industry Fawzi al-Hariri, and Secretary General of the Arab Leage Amr Moussa are to address the third US Arab Economic Forum in Washngton.

With the theme of this year's forum is "Open Markets and Open Societies", the participants will address political issues related to the Palestinian Israeli conflict, Arab American relations, the future of Iraq and policy options facing the new US Administration.

Chebbani said that the forum topics are chosen by an executive committee in consultation with private institutions in the region, the Arab Leage and American universities and think tank.

Over 1,000 participants from 30 countries, top Fortune 500 executives and over 150 global leaders in the fields of government, business, technology, academics and policy will attend the forum held on 7-9 May to strengthen public and private partnership between the United States and the Arab world.

On the economic side of the agenda, sessions will tackle regional economic stability, empowering youth and employment opportunities, free trade agreements between the United States and Middle East countries, women in private sector, and water in the Middle East.

Chebbani said on the sideline of the forum a meeting was held between Arab and US mayors to launch the US Arab Mayor Council, an idea put forward by Harvard University and Dubai School of Government.

He also talked about a US Arab Leadership Fund that would bring American emerging leaders to the Arab world to break away from stereotype about the region.

The first US Arab Economic Forum was held in Detroit, Michigan in 2003 where both Saudi Foreign Minister Saud al-Faysal and Secretary of State Condoleeza Rice addressed the assembly.

The second forum took place in Houston, Texas in 2006.

US Arab Economic Forum opens deliberations in Washington | Iraq Updates

Daimler to open Baghdad office

Daimler AG, the world's largest truckmaker, plans to open an office in Baghdad by the end of the year because it is confident that situation in Iraq is improving, reported Bloomberg.

The company will be establishing a corporate representative office in Baghdad that is not meant to directly generate sales in Iraq initially.

Daimler has no forecast for when it might begin to sell cars and trucks in the country.

Daimler to open Baghdad office | Iraq Updates

Versar, Inc. awarded $21m option for Iraq

Versar, Inc. announced an award of an additional $21 million. This is the second option year of its existing contract to provide professional management services for approximately 400 personnel involved in construction management for the Army’s rebuilding efforts in Iraq.

This increases Versar’s total contract value to over $57.8m or 44% higher than originally budgeted. All work under this delivery order will be completed by April 2009.

Dr. Ted Prociv, Versar’s President and CEO, stated, “This award by the U.S. Army Corps of Engineers reflects the outstanding performance by Versar’s international division, VIAP, in Iraq. Versar has demonstrated that our management approach, cost, and products are competitive in any market and our personnel are capable of excelling at any mission they are asked to accomplish.”

Versar, Inc. awarded $21m option for Iraq | Iraq Updates

Versar, Inc. awarded $21m option for Iraq

Versar, Inc. announced an award of an additional $21 million. This is the second option year of its existing contract to provide professional management services for approximately 400 personnel involved in construction management for the Army’s rebuilding efforts in Iraq.

This increases Versar’s total contract value to over $57.8m or 44% higher than originally budgeted. All work under this delivery order will be completed by April 2009.

Dr. Ted Prociv, Versar’s President and CEO, stated, “This award by the U.S. Army Corps of Engineers reflects the outstanding performance by Versar’s international division, VIAP, in Iraq. Versar has demonstrated that our management approach, cost, and products are competitive in any market and our personnel are capable of excelling at any mission they are asked to accomplish.”

Versar, Inc. awarded $21m option for Iraq | Iraq Updates

Call for establishment of Iranian banks in Iraq

Iran-Iraq Chamber of Commerce, Industry and Mines on Wednesday called for establishment of branches of Iranian banks in Iraq on wednesday.

"Establishment of Iranian banks in Iraq would increase the security of trade and foreign currency of the two countries' tradesmen," Mohammad Hossein Tizmaqz said.

Referring to promotion of the two countries' relations, he observed that by expanding bilateral economic, cultural and social relations, the two countries would witness a boost in relations.

Referring to the cultural and religious commonalties between the two countries, Tizmaqz noted that some 650,000 Iraqi Shiites visited Iran during March 2007-March 2008, of whom 500,000 paid pilgrimage to the holy shrine of Imam Reza (AS), eighth Imam of household of Prophet Mohammad (PBUH).

"The Islamic Republic of Iran enjoys cultural, medical, social and tourism potentialities," he stated, noting "we should use such a potential properly for bolstering bilateral ties."

The official further noted that by establishing branches of Iranian banks in Iraq, Iranian tradesmen can easily invest in Iraq.

Earlier, Tizmaqz underlined that trade transaction between Khorasan Razavi and Iraq exceeded dlrs 400 million in 2007.

He noted that to increase bilateral transactions, special facilities have to be made available for transit of goods at the Iran-Iraq border.

Referring to the establishment of chambers of commerce in Khorasan Razavi, West Azarbaijan, Kermanshah and Khuzestan provinces, he noted that the volume of Iran-Iraq trade exchanges could be raised.

He stated that the Khorasan provinces had the highest amount of exports to Iraq compared to other provinces across the country in 2007.

Call for establishment of Iranian banks in Iraq - Irna

From Tuesday

Iraqi businessmen's conference 'Rebuild Iraq' fair opens in Jordan

The Iraqi Business Council opened its third conference in Amman Tuesday with the participation of hundreds of Iraqi entrepreneurs and representatives of foreign companies who seek investment opportunities in Iraq. The three-day meeting, which is sponsored by the US-Iraqi Chamber of Commerce, is expected to focus on future investment outlets in Iraq and the chances of forging cooperation and partnerships between Iraqi businesses and their foreign counterparts particularly those taking part in the fifth Rebuild Iraq fair which opened in Amman Monday, organizers said.

"The conference is set to create a linkage among firms participating in Iraq's reconstruction and provides an opportunity for representatives of Iraqi, Arab and international firms to acquaint themselves with the investment projects in Iraq," the chamber's Vice-Chairman Majed Michel said.

About 500 companies from 31 countries are participating in the Rebuild Iraq 2008 fair, according to Albert Aoun, chairman of the IFP Group, which organizes the event.

Sectors covered in the fair include building and construction, electricity, telecommunications, water and sanitation, health, agriculture, security and information technology and general products and goods, Aoun said.

Iraqi businessmen's conference 'Rebuild Iraq' fair opens in Jordan : Middle East World

Dramatic Increase in the demand for the Dollar

Demand for the dollar was dramatically up in the Iraqi Central Bank's auction on Thursday, reaching $164.635 million compared to $54.635 million on Wednesday.

"The demand hit $10.665 million in cash and $153.970 million in foreign transfers outside the country, all covered by the bank at an exchange rate of 1,200 Iraqi dinars per dollar, one tick lower than yesterday," according to the central bank's daily bulletin which was received by Aswat al-Iraq - Voices of Iraq - (VOI).

The 16 banks that participated in the auction offered to sell $2.550 million, which the bank bought at an exchange rate of 1,198 dinars per dollar.

In an exclusive statement to VOI, Ali al-Yasseri, a trader, said that cash demands rose as expected on Thursday, on which traders pay their bills. However, the drop in the exchange rate was a surprise that urged traders to increase their foreign remittances, driving up the overall demand for the dollar to three times that of yesterday.

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

Aswat Aliraq