Thread: Iraq/Dinar News. 09/05 to 01/14/07

Japan ready to invest oilfields in Nassirya
02/12/2006
Source: Al-Sabah

Japan has expressed its readiness for investing in Nassriya oilfields and establishing genetic refinery in the city while the ministry of oil had prepared a plan to develop al-Basra refinery and establishing a floating oil port after investing the Japanese available loan which reach to $3,5 billions to develop the Iraqi oil sector, the Japanese government announced that it had offered to Iraq.
An official source at the oil ministry stated that Japan is serious in offering support to oil sector through investment, developing oil fields in Nassirya and build a genetic refinery in the city to provide the oil derivatives and increase the volume of crude oil in the province.

China balances between the risks of investing in Iraq and Iran and its revenues
30/11/2006
Source: Translated by IRAQdirectory.com

With China's thirst for oil and gas, it may risk politically in Iran and security in Iraq to gain foothold in areas where the western companies fear to approach.

Iran and Iraq possesses 19% of world oil reserves, and some of the largest unexploited fields in the world.

China already obtains half of its imports of oil from the Middle East, which gives it a strong incentive to ensure strategic deals in the fields of oil exploration in the two neighboring countries.

Ian Brown, head of the research team of the Middle East at Wood McKenzie Institution, said that Chinese companies are operating in Iran "in the absence of a large number of competitors. They have a chance to participate in giant oil fields too".

Brown said "and when conditions are suitable in Iraq, there will be many competitors and the chance to gain a major share will be much less".

Iran relies heavily on oil, which represents between 80 and 90% of its export revenues. But its old oil fields and the decline of their production, means they need bigger investments to maintain the current level of production which is about four million barrels a day. So, Iran needs financing and foreign technology, but American laws prohibit American companies from investing in the Islamic Republic. Washington can also impose sanctions on companies from other countries if they invest more than $ 20 million annually in Iran.

Foreign investment was reduced considerably because of: contract disagreements, political and bureaucratic interventions, problems about infrastructure and oil privileges, which the companies say they are not satisfactory.

However, the problems in Iraq are far more complex represented in the casualties of the daily explosions, sectarian clashes and the escalation of violence.

But Iraq has the third largest oil reserve in the world, and oil was prospected in only 10% of its lands.

Dozens of foreign oil companies signed memoranda of understanding with Iraq as a way to begin relations with the new government in Baghdad, and which could become the real deals when stability is achieved.

Between April 2003 and June 2006, about 315 attacks were launched on the power infrastructure in Iraq, and only a few foreign oil companies began with the actual work there.

In an effort to ease the restrictions that besiege it, Iran is looming of large oil deals with China, which might be willing to accept less attractive deals to secure energy supplies and it usually do not link between policy and investment.

B.F.C Energy for Energy Consultation said in a report that in case this strategy succeeds "it would allow Iran to attract investments, expertise and technology, which it urgently needs without having to make any concessions in its local and political stances".

For Iran, such deals may push China to refrain from supporting sanctions against Tehran because of its nuclear program.

Although the negotiations faltered in the Security Council on sanctions against Iran, the same thing happened to the talks between Tehran and the Chinese company Sinopec on the field Yadawaran, which is a huge prize of up to one hundred billion dollars.

Hussein Shari'a Madari, adviser of the Iranian supreme leader, wrote "if China agreed to sanctions against Iran, the government of the Islamic Republic and the Iranian people will look to China as a hostile and possibly affect the political and economic cooperation".

China did not specify its stand and the United States is pressing for the endorsement of the draft of more strict sanctions against Iran, while Russia calls for easing the text of the European proposals.

Mark Fitzgerald, from the Institute of Strategic Studies in London, said: "Russia is the main player in Iran's plan to thwart UN sanctions", and that China "will follow the example of Russia. If Russia accepted harsher penalties, China will not object. China's relations with the United States are more important. Iran should sell oil to any party and not exclude China from the market".

Before the war on Iraq in 2003, China has agreed to a deal of $ 700 million with the government of former Iraqi President Saddam Hussein to develop Al-Ahdab oil field. This contract is renegotiated with the new Iraqi government which is keen to conclude this agreement with the Chinese.

An official of the Iraqi oil ministry, said: "Chinese companies did not stop their contacts with Iraq at any time. They are the most active companies ever. They operate on the ground with us and are ready to provide all kinds of assistance for the development of the oil sector".

The Chinese companies are ready to underestimate the security risks to enter the oil sector before other international companies.

Mohamed Al-Zeini, from the Global Energy Studies Center in Britain, said: "they compete effectively with other companies to ensure access to energy resources and bear greater risks. They are even prepared to offer better terms".

Iraq is in great need for investment to repair the damage inflicted upon the oil infrastructure as a result of the sanctions, war and looting and it is unlikely to cause uproar about the source.

The official said "it would not be wise to marginalize anyone. The time of concluding conventions according to mood and relations is gone. Contracts will be awarded to those capable of work".

Al-Maliki discusses with the Japanese ambassador the bilateral relations and the reconstruction of Iraq
04/12/2006
Source: Translated by IRAQdirectory.com

Iraqi Prime Minister Nuri al-Maliki met with the Japanese ambassador in Iraq, Yama Kuji, where they discussed the bilateral relations and the role of Japan in the reconstruction of Iraq.

The Cabinet Office said in a statement, yesterday, that the Japanese ambassador expressed his country's readiness to participate in reconstructing Iraq and that the Japanese companies wish to participate actively in the reconstruction process.

The statement said that the Japanese ambassador stressed the "support of the Japanese government to the government of Iraq by providing full support for the political process and the government plans in the rehabilitation, reconstruction and the completion of the Iraqi forces to take over security functions in full in the country".

The statement pointed out that the Prime Minister praised the supporting stand of the Japanese government for the political process in Iraq and the role of Japan's Self-Defense Forces to support Iraq's stability.

The dropping of the dollar caused by the low interest rates
04/12/2006
Source: Translated by IRAQdirectory.com

An Iraqi economic expert attributed the recent decline in the value of the dollar against the Iraqi dinar to the lowe interest rate. Dr. Taha Fakhri, member of the Iraqi Institute for developing the economy, said: "The decline in interest rates is the reason behind the slight decline in the dollar in governmental auctions and commercial transactions". He added: "This decline is also caused by the weak consumers demand on imported goods due to the deteriorating security situation, which compelled the State to finance some important deals".

He pointed out that: "The slight rise or decline of the dollar does not obstruct the growth or value of the dinar which is expected to become stronger than before with the introduction of the balance of 2007 and the strategic application of the new monetary policy announced by the government last year". He explained: "The decline will be reflected on the value of the precious metals whose prices will rise as a result of the fall in the dollar, which gives an opportunity for those who hold commercial transactions, such as automobiles and heavy equipment, to invest them". Fakhri said: in some cases the decline in the dollar rate is linked to America itself through the entry of imported goods and the exit of funds from it.

http://www.brookings.edu/fp/saban/iraq/index.pdf
have we seen this yet? i just accidentally found it on the web.

Originally Posted by Lunar

The dropping of the dollar caused by the low interest rates
04/12/2006
Source: Translated by IRAQdirectory.com

An Iraqi economic expert attributed the recent decline in the value of the dollar against the Iraqi dinar to the lowe interest rate. Dr. Taha Fakhri, member of the Iraqi Institute for developing the economy, said: "The decline in interest rates is the reason behind the slight decline in the dollar in governmental auctions and commercial transactions". He added: "This decline is also caused by the weak consumers demand on imported goods due to the deteriorating security situation, which compelled the State to finance some important deals".

He pointed out that: "The slight rise or decline of the dollar does not obstruct the growth or value of the dinar which is expected to become stronger than before with the introduction of the balance of 2007 and the strategic application of the new monetary policy announced by the government last year". He explained: "The decline will be reflected on the value of the precious metals whose prices will rise as a result of the fall in the dollar, which gives an opportunity for those who hold commercial transactions, such as automobiles and heavy equipment, to invest them". Fakhri said: in some cases the decline in the dollar rate is linked to America itself through the entry of imported goods and the exit of funds from it.

Lunar, why do you keep posting 3 day old to 1 week old articles that were already posted here on the day they came out? Things are happening so fast lately new is what counts. Old is old the next day.

Originally Posted by Dinar Cha Ching

Lunar, why do you keep posting 3 day old to 1 week old articles that were already posted here on the day they came out? Things are happening so fast lately new is what counts. Old is old the next day.

Why do you keep reading them? I put in my required "SIAP....sorry if already posted".
If you've already read them then pass on by and read another, no sense whining about it. Maybe you should try using your energy to try searching for something more current instead of complaining about what I do.
And just for the record, news is news regardless of when it came out.

Originally Posted by Lunar

Why do you keep reading them?

I'm not reading them, except for the date. They're old. I have to keep scrolling past them to find something relevant and current.

Originally Posted by shotgunsusie

http://www.brookings.edu/fp/saban/iraq/index.pdf
have we seen this yet? i just accidentally found it on the web.

Nice one Sus, look at page 30, oil exports, go baby go!!! This gets the old juices flowing!

Said it before, say it again, dinar + oil = disney dollars + Caymans for lots of beers and fun.

Originally Posted by Wm.Knowles

The answer to the question may be easy to understand. They (CBI) will introduce the lower denominations into the economy when they are worth something. Presently those lower denomations have no value at present exchange rates. As the currency increases in value, then lower denominations will be necessary to transact day-to-day business. I am sure from all of the reports that the lower denoms exist, even though we have not seen them. So, what is the present value in US of a 5 Dinar nore. Not much. But the fact that they have them and are prepared to introduce them is a good sign that they (CBI) & (GOI) have had a plan for an RV from the very beginnning. As the RV process continues, which use to be an "IF" question and now is a "when and how much" question, those smaller denoms will come into play and we will see the large denoms i.e. 25000 dinar note being retired from circulation. Thank You.

Wm I fully agree with you on the smaller denoms that they have no actual buying power ---until the r/v. I have a question though, for us that have the 25000 notes and if they ' retire' that note, how much time would we have to exchange the notes? Would there be a time frame or deadline in which they neede to be exchanged???