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

The Iraqi government plans to introduce a law that will give control of the country's huge oil reserves to Western oil companies, a British newspaper says.

The government is drafting a law based on "production-sharing agreements (PSAs)," which will give major companies rights on Iraq's oil for up to 30 years, the Independent on Sunday reported.

Iraq has the second largest oil reserves in the world, the U.S. government says.

(Nabil al-Jurani/Associated Press) It said it had been given a copy of the draft law from last July, and the draft has not been changed significantly since then.

Critics say the agreements will be bad news for Iraq because they guarantee profits to the companies while giving little to the country. With 112 billion barrels, Iraq has the second largest reserves in the world, the U.S. government says.

Platform, a London-based pressure group that seeks to minimize the impact of oil companies, says on its website that Iraq endorsed production-sharing agreements last fall, just as Russia sought to undo a similar deal it signed in the period of turmoil after the Communist regime collapsed.

Russia has realized it signed a bad deal to develop a gas project, which allocated the risk to the government and the profit to the private sector, Platform said, citing published Russian reports.

"Russia realized the mistakes it made by signing PSA contracts only when it was too late. It remains to be seen whether Iraq follows the same course," the group said in October.

Attack on Iraq motivated by oil?

Platform's Greg Muttitt said the U.S. government, international oil companies and the International Monetary Fund had been asked to comment on the draft Iraqi legislation, but many members of the Iraqi parliament have not seen it.

The Independent said Iraq may adopt PSA contracts because it is in a weak bargaining position.

The legislation, if passed as in the draft the Independent was given, would stoke claims that the U.S.-led attack on Iraq was motivated by oil.

The U.S. has denied that. For example, in 2003, then Secretary of Defence Donald Rumsfeld called the idea "utter nonsense."

Speaking to the Arab TV network Al-Jazeera, he said: "We don't take our forces, and go around the world and try to take other people's real estate or other people's resources, their oil. That's just not what the United States does."

The Independent said signing PSA deals would be a first for a major oil-exporting country. Saudi Arabia and Iran, the two leading exporters, both control their oil industries tightly through state-owned companies.

iraqupdates

Originally Posted by Socata 850

Number of banks 12 -----
Auction price selling dinar / US $ 1315 -----
Auction price buying dinar / US $ ----- -----
Amount sold at auction price (US $) 43.715.000 -----
Amount purchased at Auction price (US $) -----
Total offers for buying (US $) 43.715.000 -----
Total offers for selling (US $) ----- -----



Goooooooooooooooood Morning RolClub


3 point change today.

1. A 3 point change in the dinar today. Was 1318, now 1320

2. A $43,715,000 (net) worth of dinars, (IQD - 57,485,225,000) out of circulation

3. 12 banks participating.

4. 58th auction since the beginning of CBI's reval plan

5. 102 days into the CBI's reval plan.

6. 2,961,370,647,000 dinars pulled from circulation !!

7. 0 Dinars back into circulation today !!

8. 162 dinar change since Nov 1st (baseline was 1477) 10.968% increase in value of the dinar since beginning of reval plan.

9. 10 point reduction in the rate so far this week. Was at 1325 at the end of last week, 1315 this week.

10. 10 point drop so far in the month of Jan. Ended at 1325 in Dec, now stands at 1315

Morning Scota, thxs for the up-date but I se you made a tiny boo-boo. Now thats unusual coming from you !! LOL
Have a great day.

Gloribee

Originally Posted by Gloribee

Morning Scota, thxs for the up-date but I se you made a tiny boo-boo. Now thats unusual coming from you !! LOL
Have a great day.

Gloribee

THANK YOU, IT'S FIXED NOW !!

Oil experts discuss report on Iraq draft oil law - TV talkshow

BBC Monitoring International Reports
Jan 10 2007


Al-Jazeera Satellite Television carries a new episode of its "Behind the News Programme", moderated by Muhammad Kurayshan. This episode is devoted to discussing the future of the oil wealth in Iraq in the light of a report published by the British newspaper the Independent on 7 January revealing that a draft law could be passed in Baghdad soon, under which US and British companies would be given the right to exploit the oil reserves of Iraq for 30 years.

The guests of the programme are former Iraqi Oil Minister Isam Abd-al-Rahim Chalabi, who speaks via satellite from Amman, and Muhammad Ali Zayni, an expert at the Centre for Global Energy Studies, via satellite from London.

Asked if such a law could indeed be issued in the next few days, Chalabi says: "It is impossible for this law to be issued in the manner outlined by the Independent." He adds that the Independent on Sunday's report is "perhaps far from reality". He says that, having followed this issue for a long time, nothing indicates that the report is true. He points out that the Oil Ministry in mid-July 2006 presented a draft oil law, "which is an acceptable formula in many of its aspects". He notes that the draft stipulates establishing a central administration for the oil sector, and not allowing the regions or governorates to undertake direct administration. He says: "What happened is that Kurdistan Region presented a draft, which was very from reality and entailed an illogical explanation of the paragraphs that came in the Iraqi constitution. The draft stipulates giving it [Kurdistan Region] the right to fully administer [the oil sector] from A to Z. Honestly speaking, the Oil Ministry rejected this logic and said it could not agree."

Chalabi goes on to say that the Baghdad government and the Kurdish sides have held meetings over the past three months, which produced "some progress". He adds: "What I knew, specifically less than a month ago, through a meeting with a number of officials in charge of the oil file in the government of Kurdistan Region was that they reached a formula which might settle these issues."

Asked the same question, Al-Zayni says he did not read the draft law "in its final version". He says: "It seems that the figures mentioned by the paper are high and abnormal, even when compared to what Iraq got, or the contracts Iraq signed under the former regime with other companies in 1997."

Told that the draft law falls within the context of the production profit-sharing agreements and that perhaps only the percentages mentioned in the draft are unfair, Al-Zayni says that the draft law, as published, gives the contracted companies 20 per cent of profits, "which is a high percentage, especially if we take into consideration the current oil price hikes". He recalls a contract Iraq signed with the French Total Company, under which the company received 10 per cent of the profits when the price of the oil barrel was 18 dollars. "How can this percentage rise at present, while prices have tripled?" he wonders.

Kurayshan tells Al-Zayni that according to the draft law, these companies will get two-thirds of the profits in the first years of production because they are to invest large amounts of money and develop the infrastructure of the oil sector.

Commenting, Al-Zayni says: "This is called the cost oil. Through this oil, the company would restore the money it invested in developing an oilfield. Once again, this percentage is high if we compare it with the contracts approved by the former regime. For example, in the case of Total, the percentage was 40 per cent, which is reasonable."

Asked why he thinks the report is false, Chalabi says: "The intensive efforts to draft an oil law at this stage is unjustifiable, for the simple reason that no person, be he an Iraqi or a foreigner, can even go to Iraq." He adds: "I do not think that any company can send even one person for talks with Iraq. The Iraqis at present do not need such a law." He says that there are more critical issues that should be addressed, such as the political process and the state of lawlessness.

Kurayshan tells Chalabi: "Is it this state of lawlessness that perhaps justifies this unfair percentage? Perhaps the security companies are saying: as long as I am going to take such a risk, I need to secure revenues that justify these expenditures."

Commenting, Chalabi says: "I can assure you that there is no world company whatsoever - be it a US or British company, a small or a big company - that is ready to go to Iraq at present. I, therefore, believe that these percentages are totally false, because these percentages vary from one oilfield to another and they depend on the cost of investments." Chalabi notes that a negotiation over the percentages is possible only after an agreement is reached on the exploitation of a certain oilfield.

Chalabi corrects Zayni, saying Iraq did not sign a contract with Total, but rather negotiated with the company. He notes that Iraq had signed a contract with the Russian Lukoil, which was cancelled, and another with the Chinese CNPC. He notes that the percentage of the profit in the contract with China "was only 9-10 per cent". He says that the current oil minister, in a visit to China two or three months ago, told the Chinese that the percentage should be renegotiated.

Asked if this draft law proves the claim that the Iraqi oil was the goal behind the invasion of Iraq, Al-Zayni says: "This depends on the behaviour of the Iraqi government and officials. The Iraqi officials can preserve the Iraqi oil wealth by giving [companies] rights to develop oilfields under conditions that suit the interest of the country. If there are governments that attach no importance to the interest of the Iraqi people, then this wealth might be in danger."

Kurayshan mentions an article by Joseph Samahah in the Lebanese newspaper Al-Akhbar, in which he notes that the Baker-Hamilton report suggested the privatization of the oil sector in Iraq and that the members of the Baker commission have links with oil companies. Commenting, Chalabi says that the US politicians talked much and tried to exclude oil "as one of the most important reasons for invading and occupying Iraq". He adds: "Oil was, still is, and will continue for a long time to be one of the most important factors on which US policy is based, not only in Iraq but also in the Middle East region and the Arabian Gulf, because two-thirds of the world's oil reserves exist in this region."

Chalabi says that of the 125 oilfields in Iraq, only "around 15 to 18 are being exploited". He notes that what came in the Baker-Hamilton report on the privatization of oil was "rejected by all Iraqi oil experts".

Told that the decision to privatize the oil sector is in the end a political decision, Chalabi says that "no government - be it an Iraqi government, an occupation government or a US government - will be allowed to steal the wealth of Iraq". "The Iraqi oil is for the Iraqis," he adds.

Al-Zayni says he agrees with Chalabi regarding "the seriousness of the Iraqi people and the patriotism of Iraqi officials concerning preserving Iraq's oil wealth".

Asked how Iraq can ensure an "economic independence under conditions that do not allow for a political, security or military independence in the country", Al-Zayni says that there is "widespread corruption", as is obvious in the smuggling of oil and the profits that "many sides" earn "out of this corruption." He adds: "However, I do not think that the corruption would reach the point of agreeing with foreign companies or countries in order to divide oil [shares] or give it [oil] away in an unfair manner." He says that the Iraqi people would oppose such agreements.

IRAQ | Log In

Throughout the meeting to the House tomorrow, Thursday
From Santa Mikhail Hossam Shahamani
Baghdad - (Voices of Iraq)

Announced its postponement of the House today, Wednesday, until tomorrow, Thursday, to further discuss the topics on the agenda.

The council had held a consultative meeting today under the chairmanship of Mahmoud Almshahadani President of the Council for the lack of quorum for the meeting.

He said Hassan al-Shamri member of the House of Representatives from the United Iraqi Alliance list that today, discussing some topics on the agenda was the postponement of some of the topics to the next meeting.

He added in a statement to the News Agency (Voices of Iraq) alone "has been reading a draft request colleges and institutes, and give them a monthly grant ranging from 100 thousand-150 thousand Iraqi dinars a month, the law counted for the exercise of the legal profession for the purpose of service and retirement."
The Board today also discussed the issue of the treatment of Iraqis at border crossings with Jordan.

He called Hassan al-Shamri, from the Islamic Virtue Party, the Council adopted resolutions concerning treatment (punishment) against the Iraqis on the Jordanian border crossings.
He said in a statement read in today's meeting, "condemned the degrading treatment suffered by Iraqis in Amman ... Therefore we appeal to King Abdullah II to prevent such practices. "

He called Shamari, the House to adopt resolutions on the group to condemn such practices and to inform the Jordanian government, and to host, the Iraqi Foreign Minister to discuss the issue.
He said : "If the government moves have not achieved any positive results, at the House of Representatives adopted a 48/180 give priority to the maintenance of the sanctity of the Iraqis."
Almshahadani noted that the Iraqi government opened the issue with the Jordanian side, through the President of the Ministers of Nuri al-Maliki and a number of other officials of the Iraqis.

He said, "every time there is invoking the security situation."
For his part, called Hadi Al-Ameri (Iraqi Coalition) to clarify matters with the Jordanian side and said, "Jordan is now considered the economic capital of Iraq, either to bear the responsibility and accept the negative, and either declare that it does not want to do so, and then another place to determine where conventions and trade deals, but not Arbil example."

The Council had also discussed today Mansb to Dr. Adnan Al Dulaimi, head of the Iraqi Accord Front during his participation in the support of the people of Iraq in Istanbul, Turkey last month.

ÇáÈÑáãÇä - ÅÑÌÇÁ :: Aswat al Iraq :: Aswat al Iraq

Well, nothing about the budget, so I assume that that one is done now!

Sudan : Trade carriers adopted sons hot spots
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

He said Trade Minister Falah Hassan Sudanese today, Wednesday, that the ministry had approved carriers of the hot areas of the province and will be monitored through satellites.

The Sudanese, in a press conference held in the Baghdad International Fair, Baghdad today said his ministry Ankhtt many of the procedures as an emergency especially for the regions where the adoption of hot carriers of the sons of those areas, to ensure the arrival of the citizen in the areas of difficult access to it by other drivers.

He said that "the ministry adopted electronic device linked through satellites to monitor vehicles transporting food from the ports to warehouses in the border provinces."
He stressed that the ministry "seeks to provide ration for all Iraqis so as to ensure the needs of those articles, despite the practical difficulties."

The Sudanese that "more than (29) million Iraqis covered by the rules ration card under the ministry's statistics, receiving rations of forty thousand agent of foodstuffs in all parts of Oualaragh."
Commenting on the quality of the ration card current Sudanese said, "The Ministry is seeking to improve the quality of the materials distributed among the ration card, made up of 13 food items through a stringent quality requirements on international companies in addition to the purchase of large quantities of foodstuffs quality of the local market in the framework of the ministry to support the role of the private sector."

He said the Sudanese that "the ministry has also drawn up plans for the distribution of the food basket full of families displaced from their collaboration with the local councils, mosques and clan elders for counting the number of those families, places and ways of delivering food to them."

In response to a question (of the votes of Iraq) with respect to the future of the central market said that the Sudanese Ministry organized Motmra extensive work to develop markets and the creation of the central priorities of its work. "

ÇáÊÌÇÑÉ-äÇÞáíä :: Aswat al Iraq :: Aswat al Iraq

Originally Posted by kiko

Big increase in the demand for the dollar and halt the sale presentations
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

Increased demand for dollar auction of the Central Bank of Iraq in its recording today, Wednesday, 43 million and 517 thousand dollars compared to 14 million and 245 thousand dollars yesterday at around 30 million dinars.

The breakdown of orders at seven million and 95 thousand dollars in cash and 36 million and 210 thousand dollars in the form of remittances outside the country covered by the bank in full at the exchange rate in 1315 dinars low three points yesterday on the exchange rate of 1318 dinars.

While he did not make any of the 12 banks (which is the largest number of banks participating in the auction this week) any offers to sell the dollar, as it had yesterday offered to sell three million and 55 thousand dollars.

He said economic expert Abdul Razzaq as far in a statement to the News Agency (Voices of Iraq) Independent that he expects the volume of sales to maintain a high level as long as the margin of decline in the rate of exchange between points and three.

He said that this will create some sort of relative safety for the local market with the exception of weekly first serve as a pulse to the amount of the price decline subsequent meetings per week.

ÇáÏæáÇÑ- (Å<THORN>ÊÕÇÏ) :: Aswat al Iraq :: Aswat al Iraq


Is he saying that he is expecting that the CBI pulls dinars from the market as long as it is cheap???

Can anybody explain this correct?

Of course the very best thing that could happen is a bold adjustment in the exchange rate. The second best is not the minor changes in the rate we have seen, (altough important) but the CBI continung to pull large amounts of money from the economy. We know by now they have a target level, also it is just a process that can not continue for ever. This too will have to change, and they may pull too much. (a good thing) Less supply along with increasing demand and a change in market psychology reflected in street prices ahead of the official exchnage rate. Aside from a major RV, the very best position we could be in. Thank You.

Originally Posted by kiko

Big increase in the demand for the dollar and halt the sale presentations
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

Increased demand for dollar auction of the Central Bank of Iraq in its recording today, Wednesday, 43 million and 517 thousand dollars compared to 14 million and 245 thousand dollars yesterday at around 30 million dinars.

The breakdown of orders at seven million and 95 thousand dollars in cash and 36 million and 210 thousand dollars in the form of remittances outside the country covered by the bank in full at the exchange rate in 1315 dinars low three points yesterday on the exchange rate of 1318 dinars.

While he did not make any of the 12 banks (which is the largest number of banks participating in the auction this week) any offers to sell the dollar, as it had yesterday offered to sell three million and 55 thousand dollars.

He said economic expert Abdul Razzaq as far in a statement to the News Agency (Voices of Iraq) Independent that he expects the volume of sales to maintain a high level as long as the margin of decline in the rate of exchange between points and three.

He said that this will create some sort of relative safety for the local market with the exception of weekly first serve as a pulse to the amount of the price decline subsequent meetings per week.

ÇáÏæáÇÑ- (ÅÞÊÕÇÏ) :: Aswat al Iraq :: Aswat al Iraq


Is he saying that he is expecting that the CBI pulls dinars from the market as long as it is cheap???

Can anybody explain this correct?

I too hope somebody out there can explain this. On the surface it appears to be an r/v buster for this week. Is this the case or something else? Hopefully it is just a case of the the right hand not knowing what the left hand is doing or just an attempt at misdirection. As this week unfolds we will all know one way or the other.

worf

Sotaliraq.com

Throughout the meeting to the House tomorrow, Thursday

(Voice of Iraq) - 10-01-2007
This issue was sent to a friend

Throughout the meeting to the House tomorrow, Thursday
From Santa Mikhail Hossam Shahamani
Baghdad - (Voices of Iraq)

Announced its postponement of the House today, Wednesday, until tomorrow, Thursday, to further discuss the topics on the agenda.
The council had held a consultative meeting today under the chairmanship of Mahmoud Almshahadani President of the Council for the lack of quorum for the meeting.

He said Hassan al-Shamri member of the House of Representatives from the United Iraqi Alliance list that today, discussing some topics on the agenda was the postponement of some of the topics to the next meeting.
He added in a statement to the News Agency (Voices of Iraq) alone "has been reading a draft request colleges and institutes, and give them a monthly grant ranging from 100 thousand-150 thousand Iraqi dinars a month, the law counted for the exercise of the legal profession for the purpose of service and retirement."

The Board today also discussed the issue of the treatment of Iraqis at border crossings with Jordan.
He called Hassan al-Shamri, from the Islamic Virtue Party, the Council adopted resolutions concerning treatment (punishment) against the Iraqis on the Jordanian border crossings.

He said in a statement read in today's meeting, "condemned the degrading treatment suffered by Iraqis in Amman ... Therefore we appeal to King Abdullah II to prevent such practices. "

He called Shamari, the House to adopt resolutions on the group to condemn such practices and to inform the Jordanian government, and to host, the Iraqi Foreign Minister to discuss the issue.

He said : "If the government moves have not achieved any positive results, at the House of Representatives adopted a 48/180 give priority to the maintenance of the sanctity of the Iraqis."

Almshahadani noted that the Iraqi government opened the issue with the Jordanian side, through the President of the Ministers of Nuri al-Maliki and a number of other officials of the Iraqis.

He said, "every time there is invoking the security situation."
For his part, called Hadi Al-Ameri (Iraqi Coalition) to clarify matters with the Jordanian side and said, "Jordan is now considered the economic capital of Iraq, either to bear the responsibility and accept the negative, and either declare that it does not want to do so, and then another place to determine where conventions and trade deals, but not Arbil example."

The Council had also discussed today Mansb to Dr. Adnan Al Dulaimi, head of the Iraqi Accord Front during his participation in the support of the people of Iraq in Istanbul, Turkey last month.
H M

Talabani : s forces would not participate in the new security plan
Sulaymaniyah - (Voices of Iraq)

He said Iraqi President Jalal Talabani today, Wednesday, that s forces would not participate in the new security plan in Iraq.
The Taliban during the joint press conference held with the American ambassador in Iraq, Zalmay Khalilzad, in Sulaymaniyah, "the new security plan will be Iraqi regular army, in the presence of forces of s it."

He added : "I am sure that the American strategy in Iraq will be in the interest of the Iraqi people."

He pointed out that "our most important at this stage is national reconciliation, especially after the execution of Saddam (former Iraqi President Saddam Hussein)."

He added that "national reconciliation is above all considerations and to learn from the experience of Iraqi Kurdistan on tolerance."
He explained that "the new security plan will be better than its predecessors, and that it will not allow bear arms only to the Iraqi army and police."

For his part, the American ambassador in Iraq, Zalmay Khalilzad, "Our objective is to achieve success in Iraq and hope that the new U.S. strategy to achieve security and economic development in Iraq."

It is noteworthy that the American president will later today announce the new strategy adopted by the United States in Iraq, which is expected to include sending 20 thousand soldiers to Iraq in addition to more than 130 thousand soldiers are already in Iraq.

He added, "the United States to activate the role of investment and the economy in Iraq."

He explained that "Kurdistan has enjoyed democracy and the economy is good and we hope that Iraq will follow suit."

In response to a question concerning the position of the United States of the way in which executed by Saddam, Khalilzad said, "We are opposed to the way they were the execution of Saddam and the timing was not appropriate."

The former Iraqi president had been executed on the first day of Eid Al-Adha holiday.

In another question for journalists on the execution date and Barazan Al Albandar, Talabani said, "I have no knowledge of the timing and Barazan Albandar."

He added that "the Kurdish citizens who were always calling for the accelerated implementation of the death penalty against Saddam and his aides."

And for a direct dialogue with Syria and Iran, Talabani said, "I will visit Syria soon," but he did not specify a date for that visit.
And President Bush has nominated Khalilzad to become delegates to the United States in the United Nations.

http://66.249.93.104/translate_c?hl=...D0%26thold%3D0

Bring it on!!