Thread: Kurdistan Economy

Iraqi asks Ankara for oil mediation
http://www.hurriyetdailynews.com/n.p...ays-2010-09-27


Turkish Energy Minister Taner Yıldız (L) shakes hands with his Iraqi counterpart Hussein al-Shahristani in Baghdad on Sept. 19. AA photo
Contracts signed between international oil giants and the Kurdish regional government in northern Iraq need to be reviewed and approved by the central government, according to the deputy chairman of Iraq’s parliamentary committee on oil and gas.

“The central government is of the opinion that these deals are not compatible with the constitution, as they were signed without [Baghdad’s] approval,” Iraqi parliamentary member Abdul Hadi Hassani told the Hürriyet Daily News & Economic Review on Monday on the sidelines of the “Iraq Future Energy 2010” summit held in Istanbul.

Hassani’s statement shows there is yet no solution to the oil dispute between northern Iraq and the Baghdad government, even if Western oil companies sign deals with the Kurdish administration to develop fields in the provinces of Arbil, Suleimaniya and Dohuk. The issue has crucial importance for Turkey, too, as the Kirkuk-Ceyhan pipeline carries about a quarter of Iraq’s total crude oil exports.

Iraq, which currently produces about 2.4 million barrels of crude oil per day, has the world’s fourth largest oil reserves.

The two-day Istanbul meeting was attended by Thamir Al Ghadban, the advisor to the Iraqi prime minister, Michael Townshend, the chief of BP Iraq, and Baroness Nicholson of Winterbourne, executive chairwoman of the Iraq-Britain Business Council, or IBBC.

“According to the Iraqi constitution, Iraqi resources belong to the whole country,” Hassani said. “A reconciliation between the parties should be researched on economic, technical and legal grounds, rather than political. Also, transparency is crucial for oil deals. The central government has to ratify the contracts signed between the Kurdistan Regional Government [KRG] and foreign companies, for the best interest of all parties.”

Hassani voiced satisfaction with Turkish Energy Minister Taner Yıldız’s Sept. 19 assurance to Iraqi Oil Minister Hussein al-Shahristani that Turkey “will not allow any exports of KRG oil to pass through its infrastructure without the approval of Iraq’s central government.”

Furthermore, he said Turkey could play a key role in solving the problem. “Turkey’s best interest lays not in KRG but in the whole of Iraq,” Hassani told the Daily News, adding that Turkey could even act as a mediator between the two parties on the issue.

Baghdad is not currently holding talks with KRG since “they are not willing” to have such talks, according to Hassani. “We are waiting for the new government to start talks with the KRG. I hope they understand the binding hydrocarbon and revenue laws,” he said.

While Iraq’s oil production stands at around 2.5 million barrels per day, the official target for 2017 is 12 million barrels. Some say the timetable for Iraq’s plans to increase production is highly ambitious, while others say it is a realistic and accurate assessment of the country’s capabilities.

“It is in the interest of Iraq and the world economy to increase Iraq’s oil production to more than 10 million barrels per day,” said Dr. Ali Hussain, an independent oil consultant.

“I am on the side of optimization, not maximization,” Hassani told the Daily News. “If you start producing more than the market needs, storing the oil becomes more costly than the actual production and there is no sense in that.”

Kuwaiti companies optimistic regarding Iraqi, Kurdistan’s markets

Kuwaiti companies have expressed their optimism regarding the future of relations with Iraq in general, mainly with Kurdistan..

The Kuwaiti companies are participating in the 6th Arbil International Fair, along with a number of Gulf, Arab and international companies.

“The Kuwaiti companies have no reservations about the Iraqi market,” General Director of EBOMAC company, Mohammad Riyadh, told Aswat al-Iraq news agency, noting that the Iraqi market is promising, mainly in Kurdistan.

“There is no difference between conditions in Arbil and other safe and stable cities in the region,” he said, asserting that Kurds are friendly and generous.

The fair was inaugurated in Arbil on Monday (Oct. 18) with the participation of 850 companies representing 25 countries until October 21.

http://en.aswataliraq.info/?p=138121

Poland participates in the reconstruction of Iraq from the Kurdistan region

seeks the Polish delegation which visited the Kurdistan Region currently, and the author of officials and traders Poles to strengthen economic and trade relations with Iraq, and now the Kurdistan region as a bridge to the development of relations between the two sides, in the participation of Poland to promote the economic structure of Iraq, and efforts to re- reconstruction of Iraq.

The Minister of Construction Polish them through Jankowski told the Kurdish news agency (Rn) announced today that "the situation is suitable for strengthening relations between Poland and Iraq, particularly in the economic and trade fields, and I represent the Ministry of Construction Polish, but I attended with a group of owners of companies of the country who wish to involved the reconstruction of Iraq operations, and implementation of various activities and projects. "

He Jankowski, saying I was "I hope to be able to update the electrical system in the country according to modern technologies, and strive to convey trademarks Polish to the markets of Iraq and Kurdistan," noting that "relations between Poland and the Kurdistan region of Thebes, and we hope to be promoted more and more."

The Minister of Construction Polish, "The Kurdistan Region enjoys security and stability, and it is time to develop our relations with him, and I refer to the existence of a large number of students Kurds are studying in universities, Polish, and will return to do their service to their country, as well as, Poland is not respect and appreciation of the adults of the Kurdish culture that is accorded great importance in the universities. "

For his part, said an official Polish Consulate in Baghdad Stanistao HH's (Rn) that "the fall of the former regime had the good fortune of all Iraqis, and for its part is seeking the Polish government to strengthen its relations with Iraq, especially the Kurdistan region, as that carries a positive impact on public health and economic and pour in the service of the sons of Iraq, "noting that" we put the foundation stone today for strong relations with the province of Kurdistan. "

He said His Highness that I was "a representative of the Consulate of Poland, expressed his pleasure at the establishment of this important institution between the two countries, and we are ready to cooperate in the service of the two peoples and in particular to provide facilities to the Iraqis in the granting of entry visas to Poland, as well as other services necessary."

For his part, said President of the Chamber of Commerce and Industry of Iraq in Poland Salah Aola's (Rn) that "in cooperation with the Polish Consulate, were invited to a Polish delegation to the Kurdistan region, which is composed of representative of the Ministry of Foreign Affairs, and Minister for ages, and a group of traders and owners of businesses varied, with a view the development of relations between the two sides, and to witness for themselves the stability that prevail in the region. "

Reported Aola "The delegation came to invest in the Kurdistan region, and we are optimistic of the results of the visit of the delegation, which accompanied a number of media and journalists Poles, and is intended to participate in the Erbil International Fair, and here I note that the Polish Chamber of Commerce of Iraq was established to strengthen ties between the two sides" .

He emphasized that "the Polish Chamber of Commerce of Iraq was established in the first of June 2009 in Warsaw, it is hoped nique, that could open branches in Erbil and Baghdad, and is the first step of the Chamber of Commerce to visit the trade delegation from the Kurdistan Region to Oarashw during the month of December next, to build bridges of relations between the two sides in the commercial sector. "

For his part, said deputy governor of Arbil, Tahir Abdullah's (Rn) that "the presence of a Polish delegation with the participation of Minister of Construction and Consul Polish ambassador to Iraq is the beginning of a good step to strengthen relations between the two sides, especially that Poland has experienced in the technology area, it is clear that a number big countries will go to the Kurdistan Region to build strong relationships with him, and it seems that the province will continue meeting with delegations from various countries of the world. "

http://www.aknews.com/ar/aknews/2/189100/

18th October 2010

100s More Companies in Iraq

Kurdistan’s sixth international trade fair in Erbil opened on Monday with 850 companies from 25 countries. Hundreds of companies are at the fair for the first time.

Albert Awun of EFB Arak, which organised the fair, told AKnews: “The percentage of the participating new companies in the exhibition compared to last year is about 50%, while the estimated amounts of the major projects that the Iraqi government is working on to invest in the infrastructure, housing, agriculture, transportation, health, education and communication projects is estimated to about 70 billion U.S. dollars.

“The fair includes national pavilions from Austria, Britain, Germany, France, Czech Republic, Kuwait, Iran, Jordan, Turkey, in addition to the participation of many other countries such as the United States, Belgium, Poland, Egypt, United Arab Emirates and Lebanon.”

With Germany being represented by 30 companies, a spokesperson for the country’s Economy Ministry gave his support to German businesses entering Iraq. He said: ”Some companies recognize for the first time the market and investment opportunities in Iraq and the Kurdistan Region. German companies are participating in various fields: consulting, engineering, construction, logistics, hotels and restaurants, as well as pharmaceutical companies, banks, and the production equipment and special equipment.”

A senior politician for the Czech Republic also said that he is optimistic for the economic development made in Kurdistan, as evidenced by the huge turnout at the fair, reports AKnews.

Dr Barham Ahmad Saleh, President of the Kurdistan Regional Government, said that the presence of so many countries is evidence of the confidence of these states in the Kurdistan region and its future, which is evidence that it has become a safe site and a gateway to Iraq.

He added that the Kurdistan Regional Government has adopted a “prudent policy towards prosperity, economic growth and general openness of the private sector and the private sector must play a role in this advancement.” Investment in the region has reached $13bn.

The fair is expecting 60,000 visitors in the first five days.

http://www.iraq-businessnews.com/201...anies-in-iraq/

Marathon Acquires Positions in 4 Exploration Blocks in Kurdistan

Marathon Oil Corporation (NYSE: MRO) announced on Wednesday that it has acquired a position in four exploration blocks in the Kurdistan Region of Iraq.

The Company has signed production sharing contracts (PSCs) for operatorship and an 80 percent ownership in two open blocks northeast of Erbil – Harir and Safen.

The Kurdistan Regional Government will hold a fully carried 20 percent interest.

Additionally, Marathon has been assigned working interests (WI) in two blocks north-northwest of Erbil – Atrush (20 percent WI) and Sarsang (25 percent WI).

http://www.iraq-businessnews.com/201...-in-kurdistan/

Saturday, 23 October 2010, 08:33 EDT
Arabs flood Kurdistan for cars
http://www.kurdishglobe.net/displayA...78F93BAB9CD154

Erbil becoming a car sales hub to the rest of Iraq
Cheaper and more reliable automobiles entice Arabs from middle and southern Iraq to journey to Kurdistan for good deals.

Mahrath, the main center where cars are sold, is overcrowded by car purchasers--many of them Arabs from middle and southern Iraq. The car-selling business is booming as Erbil city has become the main hub of Iraq's car business.

"Currently, 90 percent of our Korean-made car customers are Arabs," said Hakim Muhammad, a car dealer, adding that Korean cars are Iraqi's No. 1 choice because they are cheaper than German or U.S. cars and the quality is good. "Here, if you ask anyone which car is best, they will say BMW. But the majority of Iraqi people cannot afford BMW cars as they are very expensive," Muhammad said.

He said Arabs buying cars here do so for economic reasons. "In other parts of Iraq, car plates are very expensive; one car plate costs US$4,000 to US$5,000, but in Kurdistan the price of a car plate is US$700 to US$800."

In Iraq, vehicle plates are issued by the Ministry of Interior, but Iraqi Kurdistan has its own government and rules. In Kurdistan, cars are guaranteed official papers and ownership, and there are no stolen cars here, said Muhammad. But in other parts of Iraq some cars have bad backgrounds. "Therefore, they [Arabs] are very content when they buy cars here."

Most of the customers from middle and southern Iraq buy old cars. Ali Salman of Baghdad recently shopped for a car manufactured between the "90s to 2000. "New cars are not good for Baghdad as the roads are bad--and when someone has a new car in Baghdad, he always worries it will be stolen." Baghdad citizens prefer Korean cars over German and American cars because they are better on gas.

"Baghdad is very crowded; there is rush hour all the time due to the presence of a lot of checkpoints, and you need an economical car--a car that can operate with little gas. Otherwise, you have to spend a lot of money." Although Iraq is very rich with oil, gas, there is always a shortage. Currently the price of one liter of petrol in petrol stations is about 50 U.S. cents, which for Iraqi people is expensive considering their the average salaries.

Imad Majeed, a car dealer, believes that if a Korean or German car manufacturing company opened a branch and made cars in Kurdistan Region that it would be a good investment. "Kurdistan can become a center to export cars to other parts of Iraq, Syria, Iran, and some Gulf Arab countries," said Majeed.

Despite that fact that the car business is booming in Kurdistan, Majeed has concerns. "There is no joy in driving a car anymore; Erbil is stuffed with cars, and when you go to market you can't find a place to park your car." He often takes a taxi to market to avoid parking issues. "I wish the culture of riding bicycles would come to Kurdistan; it is safer and better for the environment," Majeed concluded.

Recently, the General Director of Kurdistan Region Traffic, Brig. Rizgar Ali, stated that in the past 10 months more than 400 people have been killed in car accidents in Kurdistan Region, including in Kirkuk city, and about 5,000 have been injured. The population of Iraqi Kurdistan Region is about 4 million, while there are almost 1 million vehicles in the region. Drivers say driving is not fun anymore as too many cars operated by poor drivers clog the streets.

A joint statement issued recently by KRG's Ministry of Finance and Ministry of Interior said that cars manufactured before 2009 and trucks manufactured before 2005 are 'not allowed to enter Kurdistan Region."

Represented the region in Britain: English 35 companies want to invest in Kurdistan

The representative of the Kurdistan Regional Government in Britain, said 35 British companies operating in areas as diverse as oil, banks, and ages, expressed willingness to invest and work in the province, and for this purpose is currently visiting a large delegation from Britain, the territory of Kurdistan.

She said Bayan Sami Abdul Rahman, told the Kurdish news agency (Rn) that "the British delegation which visited the Kurdistan Region currently, is the largest British trade delegation visiting the region, and participate in the Erbil International Fair."

Reported that "the British delegation was headed by the Investment Authority and the British trade, and met with its members the ministers of natural resource drastically, trade and industry Sinan Abdul-Khaliq Al-Chalabi, chairman of the investment province of Kurdistan Hersh Muharram, to discuss the advent of the investment companies to work in the region."

And Abdel-Rahman continued by saying that "the delegation included representatives of 35 large British company, have expressed their desire to invest in Kurdistan province and work in the areas of banking, the oil sector, and ages, and education."

She added, "Based on the Bank" Standard Jaltr, "which is one of the biggest British banks, they want to open a branch in the province of Kurdistan."

Confirmed that Abdul Rahman, "The Representation of the Kurdistan Regional Government in Britain has made great efforts to convince these companies to come to the region," indicating that "a British company and the only one involved in the Erbil International Fair held during the past year, either during the current year, bringing the number of 35 companies."

http://www.aknews.com/ar/aknews/2/190264/

Kurd bloc exits Iraq alliance
http://www.google.com/hostednews/afp...a4be7d77e5.791

SULAIMANIYAH, Iraq — A key Iraqi party with eight elected MPs said Saturday it has withdrawn from a Kurdish bloc, weakening an alliance whose support will decide who becomes the next prime minister.
"From now on we will act independently in the Iraqi parliament, where we will continue to defend the rights and demands of the Kurdish people according to the constitution," Latif Kader, an official from the Goran Party, told AFP.

Two steps forward and three steps back..wonders never cease..LOL

DNO Chief: New Iraqi Govt Positive for Kurdish Oil Exports

Bloomberg reports that DNO International ASA, the Norwegian Oil company with operations in Iraqi Kurdistan, regards the formation of a new government in Iraq as an “important milestone” in paving the way for the resumption of oil exports from the Kurdish region.

“Getting a government in place is a necessary step for this process to move on,” Chief Executive Officer Helge Eide said in an interview in Oslo. “If this happens, it’s a very positive development, and we hope things can now be resolved.”

The new coalition will have to resolve a dispute over the passage of a law governing the use of Iraq’s oil and gas reserves. The semi- autonomous Kurdish region in northern Iraq suspended oil exports last year following a row over payments to foreign companies, including Oslo-based DNO.

“If we’re able to get a viable government in place I believe everyone, including the Kurds, will have the issues that are important to them heard,” Eide said. “And we know what position they’ve taken with regards to oil exports.”

http://www.iraq-businessnews.com/201...h-oil-exports/

Microsoft Makes First Trip to Kurdistan

Aiming at helping the regional government of Kurdistan to develop its technological sector, a leading delegation from the Microsoft Corporation made its first visit to the capital Erbil on Sunday.

The visit was made possible by an invitation by the two-year old Department of Technology of the Kurdistan Regional Government (KRG) that has set a five-year IT strategy to increase the use of technology in the government.

Leila Serhan, general manager of Microsoft in Lebanon chairing the delegation, was “impressed by the level” of technological facilities available in Kurdistan.

“We have seen not only an evolution but a revolution,” Serhan told reporters in reference to the occurrence of the region’s technological progress in the last two years, since the establishment of the KRG’s IT department.

Kurdistan has been autonomous since 1991, the end of the Gulf War. Unlike the rest of Iraq, which has been largely plagued by violence, this region has been a relatively safe haven allowing foreign investors to come and help the three provinces of Erbil, Suleimaniah and Duhok to boom.

But there are still challenges facing the business-friendly region as it is trying to build an IT infrastructure or become an electronic government (e-government).

http://www.iraq-businessnews.com/201...-to-kurdistan/