Thread: Archive News - Iraqi Dinar Think Tank - 28/03/10 - 21/06/10

TNK-BP to set up first Iraq venture

TNK-BP, the Russian oil venture half-owned by BP, on Wednesday announced its first foray into Iraq, saying it had agreed to set up a joint venture with the Iraq Oil Company for Oil Investments to identify potential projects there.

Although the move is only an initial step, it represents a second front in potential international expansion for the oil venture following a move into Venezuela last year. In that deal TNK-BP signed up as a member of a Russian consortium to develop the vast Junin 6 field in the Orinoco oil belt.

The company had long been eyeing a move into Iraq, but until early last year had been stymied by a bitter shareholder battle for control in which its Russian billionaire shareholders claimed BP was blocking the company’s international expansion.

After the two sides agreed last year to sign a truce and set up new mechanisms for joint control, international expansion began to be more actively discussed.

However, Maxim Barsky, TNK-BP’s chief E.xecutive-in-waiting, has said the company will focus chiefly on development in Russia. Mr Barsky is to take over the reins of the company in early 2011 after undergoing six months of training in BP’s London offices this year.

A spokesman for the venture said it was too early to say which projects might be identified in Iraq. One person close to the company said: “There are a number of ideas but nothing specific.”

TNK-BP’s move sees it join Russia’s privately owned Lukoil and state-controlled Gazprom Neft, which already have footholds in Iraq, as the holder of the world’s third-largest crude oil reserves begins to parcel out projects to international companies.

Jonathan Muir, TNK-BP’s chief financial officer, has said the company intends to spend $200m to $300m (£130m-£200m) during the next two to three years as part of its participation in the Venezuelan consortium.

http://www.iraqdirectory.com/DisplayNews.aspx?id=12492

Political sources for «morning»: Do not put off plans for a U.S. withdrawal agreement

Political sources close to Prime Minister Nuri al-Maliki said plans for the withdrawal of U.S. troops from Iraq is going according to schedule within the planned security pact with Washington during the ongoing coordination between the commissions on the Application of the Convention.

This position and cut the road in front of the desire expressed by U.S. military commanders on their intention to reconsider the frequency of a significant withdrawal this summer in the light of the current security situation in the country.

He stressed member of the security and defense committee in parliament outgoing Hassan Sinead, that «the withdrawal of U.S. troops from Iraq is on schedule in coordination with the Ministerial Committees and subcommittees specialized in the representation of mechanisms of withdrawal and on a continuous basis according to the agenda of the Convention», denied that «be there is a delay in the withdrawal process or the intention of both Iraq or the U.S. to keep a larger number of troops in Iraq or a longer period, which underlines by the parties in all events ».

He Sunaid told Al »Sabah» that «both Iraq and the U.S. agreed on the need to be strategic withdrawal accurate and will implement all provisions of the Convention so that the withdrawal will be orderly and beneficial to itself lead to a security vacuum», referring to «the absence of delay in the withdrawal of U.S. forces and handing over camps and sites to Iraqi forces, and there is no any intention to change the time of withdrawal or the number of forces currently in place in accordance with the schedules contained in the Convention earlier ». He explained that the «recent security developments and terrorist bombings in Baghdad and the provinces will not affect the application of provisions of the Convention and tables withdrawal, as will coordination between the two sides a new turn, a more sophisticated and cooperation at both the intelligence and logistical support, information and monitoring through the revitalization of the sub-committees of both parties and to intensify cooperation», revealing that «the process of developing the foundations of cooperation programs between the two sides will be adopted, as well as deepening and renewal of the military demarcation through a process of reviewing daily reports of security and training for the largest number of troops and to develop their capabilities».

U.S. officials had said in remarks quoted by the Washington Post translation «Morteza Salah» they reconsider the frequency of a U.S. withdrawal significantly during the summer in the light of the current security situation in Iraq, expressing concern about the escalation of violence after the end of the vote on the election Since more than two months. The newspaper quoted U.S. officials speculated to delay the withdrawal of the First Great soldiers for a month, noting that the wait for a longer time could jeopardize the goal of President Barack Obama to reduce U.S. troop levels in Iraq to between ninety thousand and fifty thousand troops by the end of August next.

http://www.alsabaah.com/paper.php?so...age&sid=102345

The migration of capital and call for more investment

There are no exact statistics on the numbers of Iraqi funds that were transferred abroad by senior and junior traders, as well as by citizens sold their belongings and migrated outside the country since the fall of the former regime .. Large-scale migration is continuing without interruption at the time of inviting everyone to the entry of foreign investment into our country.

Summarizes Imad Kazim vendor fabrics in Shorja problem by saying this phenomenon increased after the invasion of Kuwait in August 1990 and continued after the fall of the regime in 2003 and began immediately after the outbreak of the Iran-Iraq war and the subsequent conditions of wounded Iraqi economy crippled the great migration of existing capital is an extension the migrations of the former, although it most, and with the most serious of these orderly migration of capital is the continuing migration of acquisitions people from housing, furniture, and savings of a precious, which is the sale of these assets at very low prices and the transfer of substitutes cash abroad in a way that can not be returned to the inside of the new, reverse capital which could be restored again at security.

According to the wholesaler in the market for a beautiful Abdel-Saheb Jesus is gone most of my fellow traders to neighboring countries to work, only one of them brought with him tens of millions of dollars, and others were taken more money than that and have established their pattern of life and the work they and their families has become difficult for them to a return to the home.

The Abdullah Salman Zbar car dealer says that I took out most of my money abroad, but I lost as a result of a scam by Arab traders in the neighboring state prevented me for that State first, and then required to become accepted without any reason or crime or sin, secondly, and now they want to keep what sent the money without that I can claim, and had been made a party to the matter and I usually follow through government action in order to get my money in excess of thirty million dollars.

And waving government officials provide benefits to foreign investors .. Did not receive a solution to the national capital immigrant .. It is proposed that Nuri al-merchant in Shorja methods to attract investments in both its national and foreign immigrant .. These methods include:

-1 Work to reduce the risks that investor fears are exposed inside Iraq.

-2 Creation and provision of financial incentives and economic development.

-3 Avoid the policy of competition between the foreign and domestic investment, particularly in the private sector and support will be submitted to the investors provide opportunities for integration between them so as to complement each other.

-4 Create integration between foreign investment and local production equipment.

5 easy mechanism to transfer money to and from Iraq.

While we are talking at the popular and governmental organizations on the investment and its future possibilities brought to the home there are about 65 companies, industrial production stalled government currently pays the State to its employees a total of 26 billion dinars a month.

There are no recent figures on the number of companies that are still on hold and the number of employees .. But the numbers were old and refers to the presence of some 200 semi-factory is disabled .. The government treasury to pay the salaries of thousands of workers and staff.

And out of that tunnel was believed to merchant Jalil Khalaf imported spare parts for cars that he must be prepared to see an investment to attract investors and Iraqis who flock States to hire Rsamihm have .. Vision is an important element of investment and a key role in the state's efforts when promoting to attract foreign direct investment in order to support this flow .. Therefore, many countries are moving to link these benefits, incentives and exemptions to certain sectors are characterized by the States has a comparative advantage so that the benefits as a result of those sectors with the greatest interest.

It is believed that behind the decision to switch to a market economy is still marginal, the laws and regulations that have not been changed so far and that was the product of the former regime and the transition to a market economy requires a legal environment through legislation or amend the laws.

The law of foreign investment in Iraq which caused by the adoption controversy and widespread can if a particular framework a series of instructions, regulations and laws in line with the requirements of the transition to a market economy to rehabilitate the industry in Iraq and go from this bad luck that had dogged them for more than four decades when the the former regime, call the labor in factories and laboratories to fight wars in Tmaniniat and nineties of the last century that still have effects so far.

http://www.alsabaah.com/paper.php?so...age&sid=102363

The evolution of financial investments linked to the activity effectively and Banking

Said financial expert Walid Idi on Abdel Nabi said the financial investment can not move effectively, except in circumstances and economic environment and an ideal environment, and that the individual or owner of the project investment process relies on comparing the future benefits that will get them and the current cost of the investment project. Therefore, more than investment returns or decrease the cost, raise the net returns expected from investing in a particular commodity.

Idi said in an interview (economic morning): that capital investment depends on the state of technical progress on average, innovations and inventions within the economy, input a new product to the market, or the use of methods of production of new or larger markets, and this leads to a net return of high. And the expectations of investors to the conditions of demand for their products, the volume of national income as a whole and the level and distribution are important factors in influencing these expectations for demand for their goods, and the expectations for the growth of population, the impact of changing consumer tastes is in their accounts. In addition to the sustainability of natural conditions and attaches that the stability of political and economic situation and the availability of the security aspect.

As well as the expectations and the confidence of business in the future, so that the ignorance of the future and are not sure exactly »future events, has a significant impact on the optimism or pessimism among businessmen, and this factor in determining the size of investment. It also can not neglect the role of government fiscal policy now, as expected by investors, where applicable, mainly on taxes, welfare gains expected net is important in the calculation of the investor (ie, profit) is calculated net of taxes, the more taxes, or whenever the expected investor increased, whenever the expected returns are low.

And the government's inclination towards investment spending on a large scale for economic development or to improve the incomes of some of the layers through subsidies, grants and other, as these support the expectations of investors, to increase investment in the private sector. Idi said: "The legal aspect of private foreign investment development as the release of several laws designed to attract and develop foreign investment in Iraq and of the law of industrial investment for both the private and mixed number (20) for the year 1980, and the law of the General Authority for Free Zones (No. 3) for the year 1998 and other. However, these laws did not deal with the foreign investor a high degree of seriousness and realism, whether state policy is based on a centrally planned economy »which involves the management of the market and the economy, the adoption of the public sector by a large margin. He pointed out that although directed by the state since the end of the eighties of the last century to the privatization of some industrial projects for the public sector, but the process is not accompanied opened the door for foreign investors to invest in Iraq.

Despite the issuance of Investment Law No. (13) for the year 2006 and that this law is subject to all areas of investment to its provisions with the exception of investment in extraction and production of oil and gas.

And investment in the sectors of banks and insurance companies. And includes all of the (Iraqi and foreign investor). It also included articles of Chapter III of the Act benefits and guarantees enjoyed by the investor where indicated Article (10) that the investor, regardless of nationality shall enjoy all the privileges and facilities, guarantees and is subject to the obligations contained in this law and investor Iraqi and foreign for the purposes of housing projects and the right to retain land in return for set between him and the owner of the ground without speculative land according to the guidelines established by the National Investment Commission with the consent of the Council of Ministers and the Commission shall facilitate the allocation of land for housing projects and have residential units to the Iraqis after the completion of the project and the amendment to this Law shall not have any retroactive affect regarding the guarantees, exemptions and rights established under it. As the chapters of the other obligations of the investor and the exemptions enjoyed by the project, which extends to (15) years. While shown in Article (22) as a foreign investor shall enjoy additional privileges in accordance »with international agreements signed between Iraq and his country or multilateral agreements of Iraq had joined. In the case of disputes arising between the parties subject to the provisions of this law shall be subject to Iraqi law, unless they agree otherwise without cases that are subject to Iraqi law exclusively »or the jurisdiction of Iraqi courts.

The article (32) showed the application of provisions of this law on the draft of the mixed sector and the private sector and the existing workforce and at the request of departments and approval of the Authority without retroactive effect. Idi continued talking, saying: The political and economic outlook is not friendly to the Iraqi politicians since the sixties until 2003 to foreign investment, given the "central methods in economic life, where he was seen as a form of foreign investment" forms of colonial domination of the Iraqi economy. Despite the issuance of Investment Law No. 20 of 1980, but this law has not been able to attract Arab investments or foreign influence in improving the Iraqi economy, confined to some offices of foreign airlines and some Arab joint companies which have chosen Iraq to be the headquarters "for its work according to the" political decisions.

Also, the issuance of Investment Law No. 13 of 2006, the number of the law was hasty and contained many loopholes that have prevented its activation, and the removal of the legal conflict between him and other Iraqi laws. As well as the lack of integration of existing laws with the Investment Law. In addition to the weak investment awareness among the majority of citizens and politicians towards foreign investment as a result of long years of being away from examining the experience of Arab and foreign countries to benefit from foreign investment in developing economies and its impact on improving the financial resources of the country, and the development of well-being of citizens.

He pointed to the absence of strategic vision for the future and direction of economic planning in Iraq, which the ministry of planning be addressed through the preparation of a five-year economic plan. And the lack of comprehensive investment map for all of Iraq's provinces, as well as "the availability of investment priorities needed to work according to the principle of the most important and important. Oscillation happening in the security situation, which is a factor "specific" to prevent entry of foreign investment strongly in the Iraqi economy to improve its management and events. As well as loss of coordination required between the National Authority for Investment and sectoral ministries related to the subject of foreign investment.

http://www.alsabaah.com/paper.php?so...age&sid=102364

Barham Salih, participating in the province of trade and investment in London

Barham Salih, participating in the province of trade and investment in London.

A high-level delegation from the government in chaired by Prime Minister Barham Saleh in the Kurdistan region of trade and investment, which starts in London on 15 and 16 June.

The site Aalotunai Union of Kurdistan: "The Kurdish delegation is composed of a number of ministers and government officials and businessmen, will be a good opportunity for participants to meet the ministers and officials of the province and الشرکات and Kurdish businessmen."

Is scheduled to participate in the Conference of Ministers of the Interior, Commerce, Industry and Higher Education and Scientific Research, agriculture, water sources and official Department of External Relations of the Kurdistan Regional Government and the President of the Investment Authority, in addition to the participation of الدکتور Sami Araji, head of the authority in Iraq, many British companies and global levels.

http://iraq-beituna.net/iba/index.ph...55-45&Itemid=2

UNHCR: the results of the recount process will be in Baghdad on Monday

A spokesman for the Electoral Commission, on Friday, the end of re-counting in Baghdad, adding that the announcement of the results will be next Monday after verification and review.

The judge said Qasim Aboudi, told a news conference was completed and the process of re-counting of all the stations of Baghdad to the vote the public and private sectors and abroad in the central count at the Rashid Hotel, noting that the Sabbath during which it would complete the process of entering data electronically and then to review and audit and Monday will be made public.

The slave that the staff finished the process and this has been applied the Commission's decision of the judiciary literally did not demonstrate any case of tampering or fraud in any station of the polling stations, indicating that the Commission received so far, more than 400 complaints were disposed of more than 200 by the Board of Commissioners, would be deducted The remaining complaints on Saturday.

http://radionawa.com/ar/NewsDetailN....397&LinkID=158

Sistani's representative criticized the continuing bloodshed in Iraq and wonder about the promises of electricity

Mr. Ahmed criticized the net representative of the religious leader Ali al-Sistani in Karbala Friday sermon, what he called the bloodshed that still continues in the country.

He noted that the net political movement must lead to the formation of the government away from radicalism, in what he referred to the power crisis and questioned the sincerity of the promises of the ministry two years ago, the end of the crisis by the year 2011 in what the problem is still worsening.

Safi said in his Friday sermon Sharif Husseini, a la carte "We do not think the questions have answers in stop the destruction and horrible murder, especially what happened in Basra, Hilla and accepted in Baghdad, Anbar and Diyala provinces."

"It's blame on any party is Almswolpp Is it on the security forces or the politicians or the provincial councils or on the way to build security architecture?, Adding there souls lost their complaining about injustice to human beings and we do not know on what point of responsibility and there does not care.

He who does not take "diet and jealousy" on the bleeding is a person who does not fit any site because everyone aims to causes other reasons which does not halt the loss of life and do not repeat tired of their lives and the process of compromising blood treason ... We want a real solution, not a journalist.

He touched the net in his speech to what he called the political movement after the recent elections and officials said a study of political activity is the responsibility of everyone, without exception, because the goal was to reach a better representation of the formation of the government, which is the basis of a service for people.

He said the administrator does not reach the mobility to violence and extremism that political and constitutional ways to use it, including the polls. Adding that the violence means we are weak and the right to advance a step towards the other for access to the service of people.

Net and wondered about the reality of electricity, said the Ministry of Electricity said two years ago that the year 2011 is the end of the electricity problem and we are here we ask only for this appointment and sincerity. Where are you from adding this time and the problem still exists.

http://www.radiodijla.com/cgi-bin/ne...?id=2010-05-14

New government hinders Maliki and Allawi meeting

Al Iraqiya Coalition senior officials affirmed that the issue of forming a new government is the main hindrance before Prime Minister Nuri Al Maliki and Iyad Allawi’s meeting.

http://www.alsumaria.tv/en/Iraq-News...i-meeting.html

Iraq launches media campaign to push for a new government

“Khalsouna” is a natural reaction to political rows.

A number of media figures established a radio station dedicated to winning entities in a call to accelerate the formation of a new government.

http://www.alsumaria.tv/en/Iraq-News...overnment.html

The Next Frontier Could Be in Iraq
It's not too much of a stretch to suggest that Iraq could be the next Saudi Arabia, the biggest oil producer in the world.

Emerging markets are where the money is now, but the wild "frontier" markets are where the really big money will be next. Think of the blue-chip emerging markets, like Brazil and China, 20 years ago, when they were seen as too unstable for a sane investor to even consider. Now they're foundations of every institutional portfolio. It's usually a good sign that a frontier market is physically dangerous. It keeps away the casual investment riffraff. If a market is already widely discussed as a future frontier, as Bangladesh or Nigeria are today, it's already too late, because they've been discovered.

A fresh candidate is Iraq. It's certainly dangerous. A friend of mine recently went there with some other maniac frontier investors. Protected by eight moonlighting Iraqi soldiers in full battle gear, the trembling investors traveled in a massive armored vehicle, escorted by pickup trucks mounted with 50-caliber machine guns, their itinerary subject to change due to car-bomb alerts. Nevertheless my friend returned enthusiastic, if frightened.

The Iraq story is simple. It is a big country by Middle East standards, with 32 million people located in the heart of the historic Fertile Crescent watered by the Tigris and Euphrates rivers. Baghdad was the intellectual and political capital of the Muslim world from the ninth to the 13th centuries. Before the Gulf wars it was perhaps the most cosmopolitan city in the Middle East, with a vibrant street life, fine museums, hospitals, hotels, and restaurants. The Iraqis have always been highly educated, capitalistic, and entrepreneurial. In 1985 the literacy rate was 100 percent (though it is probably lower now). Women are relatively liberated and broadly employed. One in five workers is in agriculture, producing wheat, barley, vegetables, and dates. Soon Iraq will become an important food exporter again.

Though all economic data out of Iraq are considered suspect, a legacy of the dodgy Saddam regime, the unemployment rate is reported to be 15 percent, and GDP last year was $112 billion, up 4.3 percent from 2008. GDP per capita is very low at $3,600, which ranks 159th in the world, but that only demonstrates the growth potential. Inflation is reported at 6.8 percent, and the central bank has successfully stabilized the price of the dinar. Demand is reviving as Iraq rebuilds. Current cement-production capacity is 4 million tons a year, and the market needs 6 million to 10 million, but peak domestic production in 1980 was 28 million.

The growth story lies in oil reserves. Officially proven reserves are at 115 billion barrels of oil and 3.17 trillion cubic meters of natural gas, but there has been virtually no exploration for a decade. Despite the 5,000 Americans who died during Operation Iraqi Freedom, it appears China has the inside track on oil exploration and development. But in 10 years Iraq is likely to be one of the top three oil and gas exporters, and almost certainly the low-cost oil producer, because tapping its fields costs as little as $3 a barrel, compared with, say, $70 in the Gulf of Mexico. International oil companies have already won bids to develop 10 million barrels a day of additional capacity, which the Oil Ministry hopes to have in place in six years. This would make Iraq the biggest producer in the world. The time frame is probably unrealistic because of the infrastructure that has yet to be built, but the basic goal is not. It's not too much of a stretch to suggest that Iraq could be the next Saudi Arabia.

An oil boom will skyrocket the Baghdad stock exchange, for now a sleepy place with a market capitalization of just $3 billion, where groups of somewhat seedy old men sit around in rickety folding chairs. My friend suspects they are there for the wheezy air conditioning. And my source for trading intel is a weekly letter from Rabee Securities, which is long on gossip and short on real data. As best as I can tell, in a typical week, trading volume runs at about $2 million to $4 million, and foreigners ****ute only a few dozen trades.

Admittedly, it's not clear Iraq will get past its internal divides to make it as a functioning country. But in the past it has always been a beneficial thing to lose a war to America. Witness Germany and Japan. And many developing countries have figured out that creating a stock market and attracting foreign capital is a fast track to national wealth. Iraq could be next.

Biggs is managing partner of Traxis Partners hedge fund in New York.

http://www.newsweek.com/id/238001