Iraq Oil “Drill Baby Drill” part 1

As you probably already know, Iraq is the country with the third largest oil reserve in the world, following Arab Saudi and Iran. 

Iraq has eleven oil fields with a total reserve of 115 billion barrels of oil. The production capacity of these fields is of 2.5 million barrels a day. However, for several reasons, such as sabotage acts negatively impacting production in the northern part of the country and technical difficulties in some areas, actual production is only 2 million barrels on a bad day.

Oil production is heavily concentrated in two provinces, Basra and Kirkuk. Other oil fields are located in Mesan, Salaheddin, Mosul, Baghdad and Diala. An exciting fact about the Iraqi oil reserves is that there are also some discovered but undeveloped fields spread across the countries in most provinces, except for Anbar, Babel, Diwaniya and Dahouk. These fields could ensure the future of the oil industry for short to medium term. With the addition of these fields, capacity could reach 5.5 to 6 barrels a day.

Up until recently, Iraq’s oil fields used to be managed centrally by the Iraqi Ministry of Oil. However, with the new Constitution, these fields are now under the management of Iraq’s Federal Government. Under previous legislation, 14 state owned companies were responsible for oil drillingoil exploration and oil production. The Ministry of Oil’s current strategy is to bring foreign investors to the country’s oil exploration and drilling activities in order to increase production beyond 2.5 million barrels a day.

In August 2008, Iraq signed the first major post-war deal with an international investor – China National Petroleum Corporation. This was actually a revised prewar agreement for CNPC to work on the development of the Ahdab field. The project had been interrupted in 2003 when the war in Iraq started. The Chinese oil company started work in March and continued the project despite security problems and farmers protests for damages to their property.   (article continued in next weeks DrDinar blog post)

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78 Responses to “Iraq Oil “Drill Baby Drill” part 1”

  1. Edward Bailey says:

    At $60 a barrel X 2.5 million barrels a day, if my math is right, or somebody correct me, that is 1 billion 500 million dollars a day! Good Heavens folks, I do believe we are close.

  2. Henry Beeson says:

    Iraq set for next round of oil bids
    Thursday 13 Aug, 2009

    Forty-five of the world’s major energy companies have qualified to compete in Iraq’s next bidding round for contracts to develop its vast oil fields, the second such auction since the US-led invasion in 2003.

    The auction for some of Iraq’s largest undeveloped oilfields is scheduled to take place in November this year. Iraq sits on the world’s third-largest oil reserves. Not all the qualified companies competed in the first round.

    Baghdad awarded only one of eight contracts offered in the first round in June.
    BP and China’s CNPC won a deal to develop Rumaila, one of the world’s largest producing fields. Some of the companies competing include BP, Exxon Mobil, Chevron, Royal Dutch Shell and Mitsubishi.

  3. Henry Beeson says:

    Iraq’s Stealthy Progress

    Jamie M. Fly and Abe Greenwald 08.15.09, 2:00 PM ET

    On June 30, U.S. troops completed their scheduled withdrawal from Iraq’s cities, leaving matters of law and order in the hands of local authorities and the country’s security forces.

    Since that day, headlines about Sarah Palin, Michael Jackson, Henry Louis Gates and health care town-hall protests have vied for the nation’s attention. The media has showed little interest in covering the year’s most extraordinary story: Americans successfully handed over security duties for Iraq’s cities–and Iraqis are ably managing their affairs.

    The few stories on Iraq that have appeared since June have focused on Iraq’s increasing sovereignty only because it might hasten America’s complete withdrawal. If observers continue to ignore the determination and flexibility that brought us to this auspicious moment, our eagerness for a total draw-down could prove disastrous.
    The handover was made possible by the success of the surge announced by President Bush in January 2007 and the successful counterinsurgency strategy developed and implemented by U.S. forces, led by Gen. David Petraeus.

    Originally a surge skeptic, President Barack Obama demonstrated bravery and leadership in revising the drawdown schedule he had touted during his campaign so as not to risk the dangers of a premature exit. He must now stick to this new schedule even as his administration weighs sending additional troops to Afghanistan, resisting the temptation to shift resources from one theater to the next too quickly.

    While the rise in terrorist attacks that began in the run-up to the U.S. pullback has not yet abated, both American and Iraqi military commanders long ago anticipated this flare-up. Their preparation is paying off. There has been a predictable spate of bombings in Baghdad and northern Iraq, but even with this spike the number of coalition and Iraqi deaths, the toll does not approach levels from previous years.

    There are also encouraging signs of the Iraqis’ confidence in their country’s security forces. Security for a recent Shiite pilgrimage to the Imam Moussa al-Kadhim shrine in Baghdad was an all-Iraqi affair. Hundreds of thousands of pilgrims attended what has been in past years a terrorist free-for-all. “In previous years there has been a great deal of violence which prevented us from visiting the shrine,” one pilgrim told Agence France-Presse. “But this year the security situation has improved; there haven’t been any incidents, so I’ve been able to come for the first time with my friends.”

    Perhaps most heartening of all, the latest rash of bombings in Shiite communities, while deadly, has failed to provoke the wave of retribution terrorists hoped for. Instead of handing the perpetrators a victory by allowing sectarian reprisals to fuel a civil war, Shiite leaders are preaching–and getting–restraint in the interest of Iraqi statehood.

    If the gains in security and responsible sovereignty continue to accrue, Iraq will have far surpassed anyone’s hopes for what a long-tyrannized dictatorship in the heart of the greater Middle East could become. The Iraqi people now have a chance at a productive future; a region clamoring for consensual governance can now turn to a local model of parliamentary democracy.

    Just as important, the U.S. has proved it takes more than a supposedly foregone quagmire to break its will. When al Qaeda in Iraq and Iranian-backed militias were on the verge of turning the country into a wasteland, the U.S. changed strategies but held its ground. Perhaps no other event in modern American history has gone from being so disastrously off-track to being a success.

    Consider the reversals earned by perseverance:
    In April 2004, during the siege on the insurgent haven Fallujah, some 40% of the Iraqi security forces didn’t show up for the fight or–even worse–joined the other side; in April 2008, when Prime Minister Nouri al-Maliki ordered the siege on Basra, the Iraqi security forces led the fight against the Mahdi Army.

    In the 2006 elections for the coalition government, fanatical Shiite cleric Muqtada al-Sadr was a kingmaker who had to be ameliorated by secularists. In the 2009 provincial elections, the overwhelming support for Maliki’s State of the Law coalition and Ayad Allawi’s Iraqi List left the Sadrists in the political woods.

    Despite this progress, several challenges remain. Reports that Iraq is placing new restrictions on U.S. forces that limit their ability to combat Shiite extremists backed by Iran are troubling. The Obama administration will need to manage the new relationship with an increasingly assertive Iraqi government and also deal with a major unresolved question–whether the Status of Forces Agreement will need to be re-negotiated to allow U.S. forces in the country beyond 2011.

    While Maliki has adopted a defiant posture in order to instill confidence among Iraqis, he recently acknowledged that circumstances may necessitate an extension of the U.S. military presence in Iraq past the agreed-upon date. “If Iraqi forces required further training and further support,” Maliki said, “we shall examine this at that time
    based on the needs of Iraq.”

    The key to overcoming these challenges will be U.S. resolve. Vice President Joe Biden’s comments in early July during a visit to Baghdad–that if the situation deteriorated, the U.S. wouldn’t intervene–were unfortunate and stand in stark contrast to the administration’s measured approach until now.

    In January, Iraq will hold national elections. U.S. forces, even in their newly limited roles, must do everything possible to bolster the country’s security in advance of election day. This means U.S. officials need to work to resolve the growing disputes over the oil-rich Kirkuk region in the north as well as urge the Maliki government to temper its newfound confidence with pragmatism.

    Above all, it means Obama should continue to be flexible and let the recommendations of his commanders on the ground guide his choices. For all the hurdles the administration faces domestically and around the world, Iraq remains a U.S. achievement that must be maintained.

    Jamie M. Fly served in the Office of the Secretary of Defense and on the National Security Council staff from 2005 to 2009. He is currently executive director of the Foreign Policy Initiative. Abe Greenwald is a policy adviser and online editor at the Foreign Policy Initiative.

  4. Michael says:

    i hear there changing the dinar and the dinar we bought will bee very expence wall paper or TP

  5. Alfred Alder says:

    Where did you here this? Lots of rumors now days!
    Any rymes or verses like form Iraq or the usa or china or russia .. Documentation please!

  6. Henry Beeson says:

    S T R A D F O R

    August 18, 2009 | 1504 GMT

    By George Friedman
    Related Special Topic Pages
    Iraq, Turkey and the Kurdish Position
    Iraq, Iran and the Shia
    Turkey’s Re-Emergence
    U.S. Military Involvement in Iraq
    Iraq’s Oil
    Though the Iraq war is certainly not over, it has reached a crossroads. During the course of the war, about 40 countries sent troops to fight in what was called “Multi-National Force-Iraq.” As of this summer, only one foreign country’s fighting forces remain in Iraq — those of the United States. A name change in January 2010 will reflect the new reality, when the term “Multi-National Force-Iraq” will be changed to “United States Forces-Iraq.” If there is an endgame in Iraq, we are now in it.
    The plan that U.S. President Barack Obama inherited from former President George W. Bush called for coalition forces to help create a viable Iraqi national military and security force that would maintain the Baghdad government’s authority and Iraq’s territorial cohesion and integrity. In the meantime, the major factions in Iraq would devise a regime in which all factions would participate and be satisfied that their factional interests were protected. While this was going on, the United States would systematically reduce its presence in Iraq until around the summer of 2010, when the last U.S. forces would leave.
    Two provisos qualified this plan. The first was that the plan depended on the reality on the ground for its timeline. The second was the possibility that some residual force would remain in Iraq to guarantee the agreements made between factions, until they matured and solidified into a self-sustaining regime. Aside from minor tinkering with the timeline, the Obama administration — guided by Defense Secretary Robert Gates, whom Bush appointed and Obama retained — has followed the Bush plan faithfully.
    The moment of truth for the U.S. plan is now approaching. The United States still has substantial forces in Iraq. There is a coalition government in Baghdad dominated by Shia (a reasonable situation, since the Shia comprise the largest segment of the population of Iraq). Iraqi security forces are far from world-class, and will continue to struggle in asserting themselves in Iraq. As we move into the endgame, internal and external forces are re-examining power-sharing deals, with some trying to disrupt the entire process.
    There are two foci for this disruption. The first concerns the Arab-Kurdish struggle over Kirkuk. The second concerns threats to Iran’s national security.
    The Kurdish Question
    Fighting continues in the Kirkuk region, where the Arabs and Kurds have a major issue to battle over: oil. The Kirkuk region is one of two major oil-producing regions in Iraq (the other is in the Shiite-dominated south). Whoever controls Kirkuk is in a position to extract a substantial amount of wealth from the surrounding region’s oil development. There are historical ethnic issues in play here, but the real issue is money. Iraqi central government laws on energy development remain unclear, precisely because there is no practical agreement on the degree to which the central government will control — and benefit — from oil development as opposed to the Kurdish Regional Government. Both Kurdish and Arab factions thus continue to jockey for control of the key city of Kirkuk.
    Arab, particularly Sunni Arab, retention of control over Kirkuk opens the door for an expansion of Sunni Arab power into Iraqi Kurdistan. By contrast, Kurdish control of Kirkuk shuts down the Sunni threat to Iraqi Kurdish autonomy and cuts Sunni access to oil revenues from any route other than the Shiite-controlled central government. If the Sunnis get shut out of Kirkuk, they are on the road to marginalization by their bitter enemies — the Kurds and the Shia. Thus, from the Sunni point of view, the battle for Kirkuk is the battle for the Sunni place at the Iraqi table.
    Turkey further complicates the situation in Iraq. Currently embedded in constitutional and political thinking in Iraq is the idea that the Kurds would not be independent, but could enjoy a high degree of autonomy. Couple autonomy with the financial benefits of heavy oil development and the Kurdish autonomous region of Iraq becomes a powerful entity. Add to that the peshmerga, the Kurdish independent military forces that have had U.S. patronage since the 1990s, and an autonomous Kurdistan becomes a substantial regional force. And this is not something Turkey wants to see.
    The broader Kurdish region is divided among four countries, Turkey, Iraq, Iran and Syria. The Kurds have a substantial presence in southeastern Turkey, where Ankara is engaged in a low-intensity war with the Kurdistan Workers’ Party (PKK), members of which have taken refuge in northern Iraq. Turkey’s current government has adopted a much more nuanced approach in dealing with the Kurdish question. This has involved coupling the traditional military threats with guarantees of political and economic security to the Iraqi Kurds as long as the Iraqi Kurdish leadership abides by Turkish demands not to press the Kirkuk issue.
    Still, whatever the constitutional and political arrangements between Iraqi Kurds and Iraq’s central government, or between Iraqi Kurds and the Turkish government, the Iraqi Kurds have a nationalist imperative. The Turkish expectation is that over the long haul, a wealthy and powerful Iraqi Kurdish autonomous region could slip out of Baghdad’s control and become a center of Kurdish nationalism. Put another way, no matter what the Iraqi Kurds say now about cooperating with Turkey regarding the PKK, over the long run, they still have an interest in underwriting a broader Kurdish nationalism that will strike directly at Turkish national interests.
    The degree to which Sunni activity in northern Iraq is coordinated with Turkish intelligence is unknown to us. The Sunnis are quite capable of waging this battle on their own. But the Turks are not disinterested bystanders, and already support local Turkmen in the Kirkuk region to counter the Iraqi Kurds. The Turks want to see Kurdish economic power and military power limited, and as such they are inherently in favor of the Shiite-dominated Baghdad government. The stronger Baghdad is, the weaker the Kurds will be.
    Baghdad understands something critical: While the Kurds may be a significant fighting force in Iraq, they can’t possibly stand up to the Turkish army. More broadly, Iraq as a whole can’t stand up to the Turkish army. We are entering a period in which a significant strategic threat to Turkey from Iraq could potentially mean Turkish countermeasures. Iraqi memories of Turkish domination during the Ottoman Empire are not pleasant. Therefore, Iraq will be very careful not to cross any redline with the Turks.
    This places the United States in a difficult position. Washington has supported the Kurds in Iraq ever since Operation Desert Storm. Through the last decade of the Saddam regime, U.S. special operations forces helped create a de facto autonomous region in Kurdistan. Washington and the Kurds have a long and bumpy history, now complicated by substantial private U.S. investment in Iraqi Kurdistan for the development of oil resources. Iraqi Kurdish and U.S. interests are strongly intertwined, and Washington would rather not see Iraqi Kurdistan swallowed up by arrangements in Baghdad that undermine current U.S. interests and past U.S. promises.
    On the other hand, the U.S. relationship with Turkey is one of Washington’s most important. Whether the question at hand is Iran, the Caucasus, the Balkans, Central Asia, the Arab-Israeli conflict, Afghanistan, Russia or Iraq, the Turks have a role. Given the status of U.S. power in the region, alienating Turkey is not an option. And the United States must remember that for Turkey, Kurdish power in Iraq and Turkey’s desired role in developing Iraqi oil are issues of fundamental national importance.
    Now left alone to play out this endgame, the United States must figure out a way to finesse the Kurdish issue. In one sense, it doesn’t matter. Turkey has the power ultimately to redefine whatever institutional relationships the United States leaves behind in Iraq. But for Turkey, the sooner Washington hands over this responsibility, the better. The longer the Turks wait, the stronger the Kurds might become and the more destabilizing their actions could be to Turkey. Best of all, if Turkey can assert its influence now, which it has already begun to do, it doesn’t have to be branded as the villain.
    All Turkey needs to do is make sure that the United States doesn’t intervene decisively against the Iraqi Sunnis in the battle over Kirkuk in honor of Washington’s commitment to the Kurds.
    In any case, the United States doesn’t want to intervene against Iraq’s Sunnis again. In protecting Sunni Arab interests, the Americans have already been sidestepping any measures to organize a census and follow through with a constitutional mandate to hold a referendum in Kirkuk. For the United States, a strong Sunni community is the necessary counterweight to the Iraqi Shia since, over the long haul, it is not clear how a Shiite-dominated government will relate to Iran.
    The Shiite Question
    The Shiite-dominated government led by Iraqi Prime Minister Nouri al-Maliki is no puppet of Iran, but at the same time, it is not Iran’s enemy. As matters develop in Iraq, Iran remains the ultimate guarantor of Shiite interests. And Iranian support might not flow directly to the current Iraqi government, but to al-Maliki’s opponents within the Shiite community who have closer ties to Tehran. It is not clear whether Iranian militant networks in Iraq have been broken, or are simply lying low. But it is clear that Iran still has levers in place with which it could destabilize the Shiite community or rivals of the Iraqi Shia if it so desired.
    Therefore, the United States has a vested interest in building up the Iraqi Sunni community before it leaves. And from an economic point of view, that means giving the Sunnis access to oil revenue as well as a guarantee of control over that revenue after the United States leaves.
    With the tempo of attacks picking up as U.S. forces draw down, Iraq’s Sunni community is evidently not satisfied with the current security and political arrangements in Iraq. Attacks are on the upswing in the northern areas — where remnants of al Qaeda in Iraq continue to operate in Mosul — as well as in central Iraq in and around Baghdad. The foreign jihadists in Iraq hope such attacks will trigger a massive response from the Shiite community, thus plunging Iraq back into civil war. But the foreign jihadists would not be able to operate without some level of support from the local Sunni community. This broader community wants to make sure that the Shia and Americans don’t forget what the Sunnis are capable of should their political, economic and security interests fall by the wayside as the Americans withdraw.
    Neither the Iraqi Sunnis nor the Kurds really want the Americans to leave. Neither trust that the intentions or guarantees of the Shiite-dominated government. Iraq lacks a tradition of respect for government institutions and agreements; a piece of paper is just that. Instead, the Sunnis and Kurds see the United States as the only force that can guarantee their interests. Ironically, the United States is now seen as the only real honest broker in Iraq.
    But the United States is an honest broker with severe conflicts of interest. Satisfying both Sunni and Kurdish interests is possible only under three conditions. The first is that Washington exercise a substantial degree of control over the Shiite administration of the country — and particularly over energy laws — for a long period of time. The second is that the United States give significant guarantees to Turkey that the Kurds will not extend their nationalist campaign to Turkey, even if they are permitted to extend it to Iran in a bid to destabilize the Iranian regime. The third is that success in the first two conditions not force Iran into a position where it sees its own national security at risk, and so responds by destabilizing Baghdad — and with it, the entire foundation of the national settlement in Iraq negotiated by the United States.
    The American strategy in this matter has been primarily tactical. Wanting to leave, it has promised everyone everything. That is not a bad strategy in the short run, but at a certain point, everyone adds up the promises and realizes that they can’t all be kept, either because they are contradictory or because there is no force to guarantee them. Boiled down, this leaves the United States with two strategic options.
    First, the United States can leave a residual force of about 20,000 troops in Iraq to guarantee Sunni and Kurdish interests, to protect Turkish interests, etc. The price of pursuing this option is that it leaves Iran facing a nightmare scenario: e.g., the potential re-emergence of a powerful Iraq and the recurrence down the road of the age-old conflict between Persia and Mesopotamia — with the added possibility of a division of American troops supporting their foes. This would pose an existential threat to Iran, forcing Tehran to use covert means to destabilize Iraq that would take advantage of a minimal, widely dispersed U.S. force vulnerable to local violence.
    Second, the United States could withdraw and allow Iraq to become a cockpit for competition among neighboring countries: Turkey, Iran, Saudi Arabia, Syria — and ultimately major regional powers like Russia. While chaos in Iraq is not inherently inconsistent with U.S. interests, it is highly unpredictable, meaning the United States could be pulled back into Iraq at the least opportune time and place.
    The first option is attractive, but its major weakness is the uncertainty created by Iran. With Iran in the picture, a residual force is as much a hostage as a guarantor of Sunni and Kurdish interests. With Iran out of the picture, the residual U.S. force could be smaller and would be more secure. Eliminate the Iran problem completely, and the picture for all players becomes safer and more secure. But eliminating Iran from the equation is not an option — Iran most assuredly gets a vote in this endgame.

  7. AMPEY says:


  8. woodrow stelly says:

    Is this for real,or you speculating.

  9. Ampey, you must mean August or Sept. 2015. The president of CBI said last week that zeros would more than likely be coming off of the dinar, which he said would mean that one thousands dinars would be worth one dinar. My personal opinon nothing will happen until all of the sanctions are lifted, and that will take a long time.

  10. Henry Beeson says:

    Johnny! Lets hope not. My estimate first target around the 1′st 09
    of October. Second target around 1′st January of 2010. Like you said
    depends on the sanctions being lifted. Anothe major factor would be
    incresed oil production, contracts, etc.

  11. Monique says:

    From what I`ve read in the above articles there is still so much left to be worked out in so many areas that the revaluation of the Dinar, in my opinion, is `not around the corner`. However, we can`t stop praying for a positive turn-around. IT WILL HAPPEN!! :-)

  12. Henry Beeson says:

    S T R A T F O R

    Iraq: ‘Rumaila Oil Field Deal Aimed For September’ – Official

    August 19, 2009

    Iraq aims to sign a contract for the Rumaila oil field with BP PLC and China National Petroleum Corp. in September, Iraq’s deputy director-general at Iraq’s Petroleum Contracts and Licensing Directorate said, Dow Jones reported Aug. 19. BP Chief Executive Tony Hayward has said September is not realistic and the Rumaila deal is more likely to be signed by the end of 2009.

  13. Henry Beeson says:

    Iraq’s July oil exports highest since 2003

    BAGHDAD, Aug 23, 2009 (AFP) – Iraqi oil exports in July reached their highest level since the 2003 US-led invasion that toppled dictator Saddam Hussein, oil ministry spokesman Assem Jihad said on Sunday.

    Exports rose to 63.1 million barrels last month from 57.7 million in June, he told AFP.
    Revenues from oil in July reached 4.66 billion dollars at an average price of 64.42 dollars a barrel, Jihad said. The Iraqi government’s 2009 budget is based on a projected oil price of 50 dollars a barrel.

    At the time of the invasion, Iraq’s oil exports were running at two million barrels a day, or around 60 million to 62 million barrels a month. Afterwards they slumped as low as 1.3 to 1.4 million barrels a day as the country was torn by deadly unrest.

    The lion’s share of last month’s exports, around 46 million barrels, was shipped from Basra port, earning 2.99 billion dollars. Around 16.9 million barrels, worth 1.67 billion dollars, flowed through the pipeline linking the disputed northern city of Kirkuk to the Turkish port of Ceyhan on the Mediterranean, the spokesman said.

    The government aims to double oil exports in the next five years. Oil represents 87 percent of state revenues.

    © Copyright AFP 2009.'s%20July%20Oil%20Exports%20Highest%20Since%202003

  14. Henry Beeson says:

    Iraq’s Second Oil Bidding Round Needs Higher Fees to Succeed
    Iraq’s Second Oil Bidding Round Needs Higher Fees to Succeed
    Bloomberg – [8/24/2009]

    Iraq, which awarded only one oil field contract in June because of disagreements over fees, needs to pay more to attract foreign bidders in the second round of licensing, according to former state officials and analysts.

    International companies vying for the untapped deposits, including Majnoon, Iraq’s largest undeveloped field, want higher returns for working in a country lacking security and an oil law. Contracts to be awarded in November may be delayed until after a January election and revised if the government changes.

    “Even if contracts are awarded, their implementation depends on how the Iraqi situation evolves,” Leila Benali, director of Middle East and Africa at Cambridge Energy Research Associates, said in a phone interview from Paris. “Contracts may not be ratified, there could be several legal or operational problems. There are many stumbling blocks.”

    Iraq, which holds the world’s third-largest oil reserves, is offering 10 projects covering more than a dozen oil fields for development in its second oil-licensing round since the 2003 U.S.-led invasion. Unrestrained by OPEC quotas, it wants to increase crude revenue to help rebuild its war-ravaged economy.

    Officials will share field data and discuss contractual terms with pre-qualified companies in Istanbul tomorrow, before receiving and evaluating bids at a later date. The undeveloped fields are estimated to contain 41 billion barrels-worth of oil, more than a third of Iraq’s total reserves, according to the U.S. Energy Information Administration.

    Iraqi Elections

    In the absence of an oil law, Iraq’s Oil Minister Hussain al-Shahristani has said that only cabinet approval is necessary for contracts in the licensing rounds to be legal. Oil executives are concerned that a potential change in government in January may alter any contracts signed this year.

    “The central government doesn’t have full control of the country so even if they get a contract, oil companies will wait before sending foreigners to Iraq,” said independent oil consultant Thamir Uqaili, who wrote a study on Iraq for the Centre for Global Energy Studies in 2007. “Not much will happen before the elections, you need to see which members of the government come back,” he said.

    Shahristani has come under attack from parliament for failing to raise oil production faster and because of concern that service contracts awarded to foreign companies won’t benefit Iraq. Lawmakers have yet to approve a hydrocarbons law governing contracts with international companies and exports from the autonomous Kurdish region in north Iraq.

    First Bidding Round

    Iraqi oil production has averaged 2.4 million barrels a day this year, the same as in 2008 and 2001, according to Bloomberg estimates. It collapsed to near zero during the 2003 invasion.

    More than 20 companies, including eight of the world’s top 10 non-state oil producers such as The Hague-based Royal Dutch Shell Plc and ConocoPhillips in Houston, submitted bids for $16 billion worth of technical service contracts for six producing oil fields and two gas fields offered in the first oil licensing round in June.

    London-based BP Plc, Europe’s second-largest oil company, and Beijing-based China National Petroleum Corp. won work on the Rumaila field, the only contract awarded out of eight Iraq offered.

    To win the contract, they agreed to cut their fees after development costs to $2 a barrel, from $3.99. Foreign companies will be paid for their services, rather than owning rights to the oil itself. Oil futures traded in New York exceeded $74 a barrel at the end of last week, their highest price in 2009.

    Maximum Fee

    Remaining bidders refused to lower their initial proposals to meet the maximum fee Iraq’s government was willing to pay, revealed on the day of the round. The second bidding round will be centered on so-called greenfield oil projects, which are newer, rather than extensions to older fields.

    “Most fields won’t go for less than the $2 a barrel offered in the last round, even though greenfield projects are easier” to develop, said Falah al-Khawaja, an independent consultant in Amman, Jordan, who worked in the Iraqi oil industry for four decades. “I hope companies are offered more money, otherwise Iraq is cutting off her nose to spite her face. It should be more pragmatic really.”

    Oil companies require a premium for working in one of the world’s three most dangerous countries, while the government considered only the economic value of the resources, according to Tariq Shafiq, director of London-based consultant Petrolog & Associates.

    “Oil company offers must have been loaded with risks associated with above-the-ground parameters — political, security and legal conditions — while the ministry doesn’t consider that such conditions warrant abnormally high remuneration,” said Shafiq, a former vice chairman of the national oil company who helped write Iraq’s draft oil law.

    West Qurna, Majnoon

    Iraq is estimated to hold 115 billion barrels of proved oil reserves, according to government statistics compiled by BP. The West Qurna-Phase 2 and Majnoon fields, the largest two in the second licensing round, may hold 12.9 billion barrels and 12.6 billion barrels, respectively, according to U.S. government estimates. The oil ministry plans to boost production to about 6 million barrels a day by 2015.

    BP, which will be attending tomorrow’s roadshow in Istanbul, aims to sign a contract to raise production from the Rumaila field by year-end and start work in early 2010, Chief Executive Officer Tony Hayward said in July. Rumaila, near Iraq’s southern border with Kuwait, was the biggest project on offer in the first round. The work may unlock as much as 20 billion barrels of recoverable oil, Hayward said.

    Iraq selected several companies in April as potential bidders for the second round. Russia’s largest oil producer OAO Rosneft, Angola’s Sonangol EP and Kazakhstan’s KazMunaiGaz National Co. were among those qualified at that time. Others attending the roadshow include Shell and Turkish state energy company Turkiye Petrolleri AO.

  15. Henry Beeson says:

    United Nations S/2009/430
    Security Council
    Distr.: General
    24 August 2009
    Original: English
    09-48438 (E) 240809
    First report of the Secretary-General pursuant to
    paragraph 3 of resolution 1859 (2008)
    I. Introduction
    1. The present report is submitted pursuant to paragraph 3 of Security Council
    resolution 1859 (2008), in which the Council requested me to report to the Council
    on a quarterly basis, with the first briefing no later than 31 March 2009 and with a
    written report on a semi-annual basis, on the activities of the Development Fund for
    Iraq and the International Advisory and Monitoring Board, including on progress
    made in strengthening financial and administrative oversight of the Development
    II. Background
    2. The Development Fund for Iraq established pursuant to resolution 1483 (2003)
    holds the proceeds of oil export sales from Iraq, as well as the transferred balances
    from the United Nations oil-for-food programme and other frozen Iraqi funds.
    3. In 2003, the Security Council also decided that all export sales of petroleum,
    petroleum products and natural gas from Iraq shall be made consistent with
    prevailing international market best practices, to be audited by independent public
    accountants reporting to the International Advisory and Monitoring Board in order
    to ensure transparency, and all proceeds, except as provided in paragraph 4 below,
    from such sales shall be deposited into the Development Fund for Iraq until such
    time as an internationally recognized, representative Government of Iraq is properly
    4. The Security Council further decided that 5 per cent of the proceeds referred to
    in paragraph 3 above shall be deposited into the Compensation Fund established in
    accordance with resolution 687 (1991).
    5. The International Advisory and Monitoring Board, as the audit oversight body
    for the Development Fund for Iraq, was established to fulfil the mandate set forth in
    resolution 1483 (2003). That mandate has been subsequently extended under
    resolutions 1546 (2004), 1637 (2005), 1723 (2006), 1790 (2007) and 1859 (2008).
    By resolution 1859 (2008), the Security Council also extended the immunity of the
    petroleum and petroleum products and proceeds deposited in the Development Fund
    until 31 December 2009.
    2 09-48438
    6. The International Advisory and Monitoring Board has as its members
    representatives of the Secretary-General, of the Managing Director of the
    International Monetary Fund (IMF), of the Director General of the Arab Fund for
    Social and Economic Development, of the President of the World Bank and of the
    Government of Iraq. In addition, the Advisory Board continues to involve the Iraqi
    Board of Supreme Audit and the Committee of Financial Experts in its work to
    ensure continuity.
    7. The International Advisory and Monitoring Board has met 25 times since
    December 2003, including twice in 2009. All documentation, including press
    statements, the minutes of all Board meetings, completed audit reports and key
    documents related to the mandate and operations of the Board continue to be
    available on its website (
    8. From the time of the inception of the Development Fund for Iraq to
    31 December 2008, the International Advisory and Monitoring Board has been
    informed that about $165.1 billion has been deposited in the Fund from the export
    sales of oil and oil products. $10.4 billion has also been deposited with the
    Development Fund from the balance of the oil-for-food funds held under escrow by
    the United Nations, and a further $1.5 billion has been deposited as proceeds from
    frozen assets.
    9. In 2006, the Council of Ministers of Iraq established the Committee of
    Financial Experts to work alongside the International Advisory and Monitoring
    Board and take over the tasks of the Board in monitoring the Development Fund for
    Iraq upon the expiration of the Board’s mandate. The Committee of Financial
    Experts is headed by the president of the Board of Supreme Audit and is responsible
    directly to the Council of Ministers. Since its inception, the Committee has been
    working closely with the Advisory Board and has attended all of its meetings. The
    Committee itself meets regularly and has increased its role in the follow-up to and
    implementation of recommendations contained in independent audit reports
    commissioned by the Advisory Board.
    10. In April 2009, the Controller of the United Nations, Jun Yamazaki, my
    designated representative on the International Advisory and Monitoring Board,
    briefed the Council on the activities of the Development Fund for Iraq and the
    Advisory Board.
    11. The issues covered in the present report were on the agendas of the meetings
    of the International Advisory and Monitoring Board held in Amman on 2 and 3 April
    and in Vienna on 22 and 23 July 2009, and reflect recent activities with regard to
    both the Board and the Development Fund for Iraq.
    III. Recent activities with regard to the Development Fund for
    Iraq and the International Advisory and Monitoring Board
    12. At the meeting in Amman, the International Advisory and Monitoring Board
    discussed the Security Council’s request for briefings by IMF and World Bank
    representatives, pursuant to paragraph 4 of resolution 1859 (2008). It was reiterated
    that individual representatives on the Board should brief their respective
    organizations in their individual capacities, as had been the practice. IMF and the
    World Bank had responded accordingly to the Council request.
    09-48438 3
    13. When the date of the end of the mandate, 31 December 2008, was
    approaching, the Chairman of the International Advisory and Monitoring Board
    addressed a letter dated 27 October 2008 to the Prime Minister of Iraq, Nuri Kamel
    al-Maliki, recommending that the Committee of Financial Experts take over the
    tasks that had been entrusted to the Board. In April 2009, the Board again wrote to
    the Prime Minister, reiterating its belief that the Committee was ready and able to
    take over the tasks currently entrusted to the Board.
    14. I recognize the view of the International Advisory and Monitoring Board that
    the Committee of Financial Experts is ready to assume the oversight responsibilities
    and conduct competent and independent oversight of the Development Fund for
    Iraq. As the Security Council prepares to discuss this matter, including the mandate
    of the Development Fund for Iraq at the end of 2009, it will be important to ensure
    that a proper succession mechanism and process be considered.
    15. The external auditor provided regular briefings on the progress of the 2008
    audits to the International Advisory and Monitoring Board. The first draft audit
    report on the Development Fund for Iraq, to 31 December 2008, was reviewed by
    the Board at the April 2009 meeting, and the final audited report was reviewed at the
    July 2009 meeting in Vienna. The audit report has also been submitted to the
    Ministry of Finance and to the Iraqi Council of Ministers and made available to the
    public on the Board website and the website of the Committee of Financial Experts
    16. The management letter on internal controls and the management letter for
    spending ministries for the period from 1 January to 31 December 2008, produced
    by the external auditor, are also posted on the Board website.
    17. The audit continues to highlight key issues of concern regarding weaknesses in
    controls over oil extraction and use of the resources. Access to some ministries and
    regions had been delayed, but the issue was resolved through the intervention of the
    Committee of Financial Experts, and the fieldwork is now complete.
    18. The audit also continues to be heavily qualified, and the Board expressed
    concerns that certain issues, including the continued non-deposit in the
    Development Fund for Iraq of cash sales of fuel oil by the State Oil Marketing
    Organization (SOMO), had not been resolved.
    19. The Board has highlighted these concerns in publicly issued press releases and
    minutes of its meetings.
    20. Recognizing the competence and capabilities of the Committee of Financial
    Experts, aided by the Board of Supreme Audit, the International Advisory and
    Monitoring Board has already entrusted much of the detailed follow-up and
    investigation of audit findings to the Committee. The representatives of the
    Government of Iraq, the Committee and the Board of Supreme Audit reported
    regularly to the Advisory Board on actions taken to follow up on outstanding audit
    21. The International Advisory and Monitoring Board remains concerned that one
    of its earliest recommendations from 2004 concerning oil metering remains
    incomplete. The external auditor’s enquiries revealed that the overall metering
    system installation percentage was 33 per cent as at 31 December 2008. In the
    absence of an overall comprehensive system of controls over petroleum extraction,
    4 09-48438
    the external auditor was not able to reconcile extracted petroleum with SOMO
    records of quantities received and quantities consumed internally. However, the
    external auditor has reconciled the petroleum quantities received by SOMO with
    petroleum export sales.
    22. Oil experts from the Iraqi Ministry of Oil briefed the International Advisory
    and Monitoring Board on oil metering. Some progress has been made, including in
    commencing implementation of a code for fiscal and custody measurements for
    hydrocarbon fuels by the Ministry of Oil. However, much remains to be done before
    a fully operational control and measurement system over oil production, distribution
    and export sales can be comprehensively implemented. Indications from the
    Ministry of Oil point to implementation by 2011 at the earliest.
    23. Prior to 31 December 2007, SOMO engaged in barter transaction with the
    Government of the Syrian Arab Republic and private companies for exports of
    petroleum and petroleum products. The value of the barter transactions with the
    Syrian Government as recorded by SOMO from inception until 31 December 2008
    is $750,865, and the value of barter transactions with private companies from
    inception until 31 December 2008 is $348,815. I welcome the finding by the
    external auditor, KPMG, that no barter transactions took place during 2008.
    24. In order to enhance the transparency and accountability of the Development
    Fund for Iraq, and taking into account the audit findings of the external auditor, the
    International Advisory and Monitoring Board called for the timely monthly
    publication of the Fund’s financial statements on the website of the Committee of
    Financial Experts. The Board also called on the Committee to develop a realistic
    action plan and time frame to resolve the audit qualifications from KPMG in their
    audit opinion. The Board requested the Committee to report to it every other month
    on progress on those points; it is expected that such reports will be published on the
    websites of the Board and the Committee. The Board also urged the Committee to
    continue working expeditiously in supporting the necessary steps for the early
    passing in Parliament of laws and regulations concerning organization structures,
    job descriptions and internal control systems and the development of a time-bound
    action plan, endorsed by the Council of Ministers, to implement a comprehensive
    oil-measuring system.
    25. I welcome the steps taken by the Committee of Financial Experts, in particular
    its proactive engagement with the Council of Ministers, which has led to Council
    directives that all ministries form working committees to address organizational and
    information systems issues raised by the Development Fund audits. The Committee
    will monitor progress by the ministries in implementing those directives, and the
    Board of Supreme Audit will be reporting to the Council of Ministers on the
    follow-up to a survey conducted by the Board of Supreme Audit that identified
    weaknesses in internal controls at the ministries.
    26. I also welcome the detailed follow-up reports from both the Committee of
    Financial Experts and the Board of Supreme Audit which are published on the
    website of the International Advisory and Monitoring Board. Those reports note that
    progress is being made, but it is apparent that much remains to be done to fully
    implement the audit recommendations and strengthen the system of internal
    controls. The Advisory Board reiterated its earlier recommendation that the
    Government of Iraq intensify efforts to follow up on frozen Iraqi assets held abroad,
    including through considering the need for a separate entity to handle those efforts. I
    09-48438 5
    note that the Committee of Financial Experts has approached the Iraqi Ministry of
    Finance on this matter.
    27. The representative of the Committee of Financial Experts provided regular
    briefings to the International Advisory and Monitoring Board on Committee
    activities, the work programme and the coordination of work with the Board to
    enable a smooth handover of oversight responsibility from the Board by the end of
    2009. The Committee has initiated the appointment process for the 2009 auditor as
    part of its action plan for 2009. The Board agreed that the 2009 audit should cover
    the period from 1 January to 31 December 2009, with an interim audit for the period
    1 January to 30 June 2009. The interim audit will be undertaken under the high-level
    oversight of the Board and the final audit is expected to be undertaken under the full
    oversight of the Committee as the Board mandate is scheduled to have expired by
    that time. The Board approved the process and concurred with the recommendation
    of the Committee to proceed with the audits.
    28. As a matter of priority, control systems need to be improved in key Iraqi
    agencies, including SOMO, and in the various Iraqi ministries. The International
    Advisory and Monitoring Board will work closely with the Committee of Financial
    Experts and the Government of Iraq to monitor and report on the progress made on
    strengthening financial and administrative oversight of the Development Fund for
    29. The Advisory Board noted that in 2008 the United States Attorney’s Office
    issued press releases relating to the court proceedings resulting from the Volcker
    inquiry into the oil-for-food programme, indicating fines imposed on various
    companies and individuals involved. The fines imposed as a result of the court
    proceedings were to be deposited into the Development Fund, for which cheques
    were issued payable to the Fund. The external auditor confirmed that amounts
    totalling approximately $50 million, as a result of the court proceedings in the
    United States of America, were deposited in the Development Fund account during
    the 2008 financial year.
    30. The next meeting of the International Advisory and Monitoring Board, with
    the participation of the Committee of Financial Experts, is tentatively scheduled for
    December 2009. The Committee will be meeting separately on a regular basis in the

  16. wayne says:

    this is a very good blog. I enjoy it

  17. Henry says:

    Iraq-Qatar flights resume after 18-year break

    Fri Sep 11, 3:41 pm ET

    Iraqi Airways flight taxis

    DOHA (AFP) – Iraqi Airways resumed flights from Baghdad to the Qatari capital on Friday for the first time in 18 years, an AFP journalist reported.

    Welcoming the flight, Iraq’s ambassador in Doha, Jawad Kadhem al Hindawi, said his country’s national carrier planned two flights a week initially to Qatar, one from Baghdad and the other from the Shiite holy city of Najaf.

    Najaf, south of Baghdad, is home to the mausoleum of the revered Imam Ali, and the focus of pilgrimage for millions of people every year.

    Iraqi Airways aircraft were grounded by the international embargo that followed the Iraqi invasion of its tiny neighbour Kuwait in August, 1990.

    Following the US-led invasion of March 2003 that ousted dictator Saddam Hussein, the airline resumed operations, flying mostly to Arab countries, Iran and Turkey.
    In March it made its first flight to the European Union in 19 years when an aircraft flew from Baghdad to Stockholm via Athens.

  18. Henry says:

    Iraqi parliament moves ahead on foreign oil tax

    Sun Sep 13, 2009 3:14am EDT

    BAGHDAD (Reuters) – Iraq’s parliament held an initial discussion on Saturday of a bill that would impose a 35-percent income tax on foreign oil and gas firms working in Iraq, lawmakers said.

    “Today we held a first reading of a draft to impose tax on foreign oil companies working in Iraq,” Haider al-Ebadi, head of parliament’s economic committee, said.
    Ebadi and other lawmakers said the 35 percent tax on oil company income, if approved, would cover all types of oil and gas contracts — exploration, production, processing and other activities. Details of the proposed tax were not immediately available.

    Iraq, which has the world’s third biggest oil reserves but needs foreign cash to modernize its struggling industry, has been courting top global firms to develop oil and gas fields.

    The Oil Ministry is scheduled to hold its second major energy auction this year in December, when it will offer up 10 major oilfields for bids from 45 qualified firms.
    The tax bill will require a second reading in parliament before it can go to a vote, but lawmakers are not expected to vote on the measure before the holiday marking the end of the Muslim holy month, Ramadan, later this month.

    Ali Hussein Balou, a Kurdish lawmaker who heads parliament’s oil and gas committee, said he did not expect opposition to the bill, which he said would be passed ‘smoothly’.

    “The law will give Iraq major, significant revenue. I don’t expect anyone to resist this law,” said Amera al-Baldawi, a Shi’ite Arab lawmaker who sits on the economic committee.

    (Reporting by Waleed Ibrahim; writing by Missy Ryan; Editing by Andy Bruce)
    © Thomson Reuters 2009. All rights reserved.

  19. Henry says:

    US envoy calls on Iraq to open more oilfields
    Khaleej Times – 12 September, 2009
    Read Article here []
    Khaleej Times – 12 September, 2009

    US ambassador to Iraq Christopher Hill called on the government in Baghdad to open more oil fields to investors and boost the economy, a move that will help undermine support for terrorism.

    A second round of bidding from international oil companies on contracts is set for December and “needs to be a success,” Hill said, adding that approval of a hydrocarbons law outlining rules for the oil business is essential.

    “A market economy generating sustained economic growth and increased employment opportunities will weaken insurgent and extremist networks,” Hill, 55, told the US House Foreign Affairs Committee yesterday in prepared testimony. Hill, posted to Iraq in April, said it was time for Iraqis to take charge of their economy. The country should negotiate a stand-by lending agreement with the International Monetary Fund and make changes to join the World Trade Organisation, he said. He also praised Iraqis for “rejecting retribution and a new cycle of violence” in the aftermath of recent attacks, including the August 19 bombings of the Finance and Foreign Ministries in Baghdad.

    US combat forces are scheduled to pull out of Iraq by August 2010 and elections are planned for January, prompting US officials to shift the focus toward helping Iraq prepare for the transitions. Hill said he was concerned that elections may result in months of political paralysis just as the US is withdrawing tens of thousands of troops.

    Post-election Concern
    “I worry it will take a long time to form a government after January,” Hill said, speaking later in the day to the Senate Foreign Relations Committee.

    The tension in oil-rich northern Iraq between the semi- autonomous Kurdish regional government and Arab Iraqis is one of the dangers still facing Iraq, Hill told the panel.

    Hill said he just visited Iraqi Kurdistan to confer with President Massoud Barzani on how to resolve territorial disputes between Arabs and Kurds.

    A suicide bomb ripped through the Kurdish village of Wardek, near Mosul in northern Iraq, early yesterday, killing at least 19 people and wounding dozens. Wardek lies about 220 miles (354 kilometers) north of Baghdad in Nineveh province. The region, disputed by Kurds and Arabs, is one of the most volatile
    in Iraq. “We can be helpful, but on the economy the time has come for the Iraqis to step up to the plate” in mobilising the nation’s oil wealth, Hill said.

    Unrestrained by Opec quotas, Iraq is offering 10 projects covering more than a dozen oil fields for development in its second oil-licensing round since the 2003 US-led invasion.

    The undeveloped fields are estimated to contain 41 billion barrels of oil, more than a third of Iraq’s total reserves, according to the US Energy Information Administration. In the absence of an oil law, Iraqi Oil Minister Hussain Al Shahristani has said that only Cabinet approval is necessary for contracts in the licensing rounds to be legal. Oil executives are concerned that a potential change in government after scheduled January elections may alter any contracts signed this year.

    Lawmakers have yet to approve a hydrocarbons law governing contracts with international companies and exports from the Kurdish region.

    More than 20 companies, including eight of the world’s top 10 non-state oil producers such as Royal Dutch Shell Plc and ConocoPhillips, submitted bids for $ 16 billion of technical service contracts for six producing oil fields and two gas fields offered in the first oil licensing round in June

  20. Henry says:

    Oil Law passes Iraqi Cabinet stage
    Posted at September 14, 2009 A couple of sources are claiming that the HCL was passed, but that is not true. Dinar Speculators are still waiting for an official approval of the HCL in spite of hte article quoted below. As you can see, it says the Iraqi Cabinet approved it… but it still needs to make it through parliament.

    Regardless, it’s a good sign that they are moving forward!

    Article below:

    The Iraqi government has approve 5a8 d a draft Oil Law. The accord does represent a major rapprochement between Baghdad and the Kurdish Regional Government. However, the initial approval may be the easy part in the process. The draft is only an outline and pressure is building to negotiate details. With additional opposition to the move developing, the prospect of finalizing legislation remains in serious doubt, according to an analysis published by Caspian Investor.

    Caspian Investor is published by WorldTrade Executive, Inc. and provides unequaled news and analysis of energy sector developments impacting the countries of Central Asia and the Caspian Sea region. It includes extensive coverage of Iran and some details of Iraq as it impacts regional markets.

    That still may happen in practice

    The law was approved without any details.

    317 The Iraqi Cabinet approved a draft of the long-awaited Oil Law on February 27. The bill now moves to the parliament. Sources told Caspian Investor, however, that significant problems remain in securing passage.

    Kurdish Support Vital

    That the bill has made it this far is a result only of a last-minute decision by the Kurdistan Regional Government (KRG) to back it. “The support, however, is for a broad outline accord,” one source close to the negotiations told us on February 28. “The details of actually dividing oil proceeds will present a major future obstacle.”

    Majority Shiite factions are supporting the initiative, at least in its present general version, with the Sunnis expressing reserved support since they remain included in the partition of revenues from sales. There had been genuine concern among the Sunnis, now a minority of the population and controlling only areas of the country without significant hydrocarbon reserves, that the accord would leave them with no oil revenues.

    “That still may happen in practice,” notes a Sunni member of the Oil Ministry. “The law was approved without any details.” According to the draft, oil sales will comprise a single fund controlled by the central government and redistributed throughout the country based on population. The regions will have authority to negotiate and sign contracts within the contract guidelines set out in the law. Unfortunately, the government has yet to propose any of these contract specifics.

    Other recent articles in Caspian Investor are:

    How Serious is the Iranian Push for a Natural Gas Cartel?

    Kazakhstan Enters the Russian M&A Market

    An Interview with Vagit Alekperov: The president of Russian crude leader LUKOIL.

  21. Henry says:

    From a Dinar Speculator member – Iraq and the GCC
    Posted at August 25, 2009
    Hat tip to bluewaters2u, nice write up sir! Quoted text below relating to Iraq and the GCC:
    This data clearly shows the strenght Iraq has and would bring to the GCC other than the weak current value of their Dinar…now would you not want to reinstate Iraq to the GCC with these numbers (compare them with the other GCC states and you decide)… It was suggested by the GCC a while back that they are looking at $1usd to $2.66 dinar (GCC) . I dont see any problem with Iraq meeting the requirments required to join the GCC….Blue
    NOTE: these nubers were provided by the CIA at the end of 2008, as most of you know these numbers have greatly improved on Iraq’s Data. and not to forget the price of Oil for the last few months (price per barrel at est. $70.00).
    Data / USD/local currency / GDP / GDP Growth
    Iraq / 1170 / 112.8 B / 9.80%
    Saudia Arabia / 3.75 / 582.8 B / 4.20%
    UAE / 3.6725 / 184.6 B / 7.70%…
    (Full numbers and links to articles in full story.)
    From a Dinar Speculator member – Iraq and the GCC
    Posted at August 25, 2009
    Hat tip to bluewaters2u, nice write up sir! Quoted text below relating to Iraq and the GCC:
    This data clearly shows the strenght Iraq has and would bring to the GCC other than the weak current value of their Dinar…now would you not want to reinstate Iraq to the GCC with these numbers (compare them with the other GCC states and you decide)… It was suggested by the GCC a while back that they are looking at $1usd to $2.66 dinar (GCC) . I dont see any problem with Iraq meeting the requirments required to join the GCC….Blue
    NOTE: these nubers were provided by the CIA at the end of 2008, as most of you know these numbers have greatly improved on Iraq’s Data. and not to forget the price of Oil for the last few months (price per barrel at est. $70.00).

  22. Henry says:

    Data / USD/local currency / GDP / GDP Growth
    Iraq / 1170 / 112.8 B / 9.80%
    Saudia Arabia / 3.75 / 582.8 B / 4.20%
    UAE / 3.6725 / 184.6 B / 7.70%…
    (Full numbers and links to articles in full story.)
    (Full data and links below.)
    Data / USD/local currency / GDP / GDP Growth
    Iraq / 1170 / 112.8 B / 9.80%
    Saudia Arabia / 3.75 / 582.8 B / 4.20%
    UAE / 3.6725 / 184.6 B / 7.70%
    Kuwait / 0.2679 / 149.1 B / 8.50%
    Qatar / 3.64 / 85.35 B / 11.20%
    Oman / 0.3845 / 67.00 B / 6.70%
    Bahrain / 0.376 / 26.70 B / 6.10%
    Yemen / 199.766 / 55.29 B / 3.20%
    Data / Per Capita / Unemployment / Budget revenue
    Iraq / 4,000 / 18.20% / 42.4 B
    Saudia Arabia / 20,700 / 8.80% / 293 B
    UAE / 40,000 2.40% 83.15 B
    Kawait / 57,400 / 2.20% / 113.3 B
    Qatar / 103,500 / 0.60% / 40.36 B
    Omar / 20,200 / 15% / 14.6 B
    Bahrain / 37,200 / 15% / 7.226 B
    Yemen / 2,400 / 35% / 9.09
    Data / Budget expenditures / Inflation / Industrial production growth
    Iraq / 49.9 B / 6.80% / 10.50%
    Saudia Arabia / 136 B / 10.30% / 4.50%
    UAE / 48.3 B / 14.40% / 7.70%
    Kawait / 63.55 B / 11.70% / 8%
    Qatar / 28.08 B / 15.20% / 12.60%
    Omar / 16.7 B / 12.50% / 3.40%
    Bahrain / 5.806 B / 7.00% / 5.10%
    Yemen / 10.55 B / 18.00% / 2.50%
    Data / Oil production bbl/d / Oil Exports bbl/d / Oil proven reserves
    Iraq / 2.42 M / 1.83 M / 115 B
    Saudia Arabia / 9.2 M / 8.2 M / 266.8 B
    UAE / 2.948 M / 2.703 M / 97.8 B
    Kawait / 2.613 M / 2.356 M / 104 B
    Qatar / 1.125 M / 1.026 M / 15.21 B
    Omar / 758.6 K / 593.7 K / 5.5 B
    Bahrain / 48,610 / ? / 124.6 M
    Yemen / 320.6 K / 336.6 K / 3 B
    Data / Natural Gas proven reserve / Current account / Reserves
    Iraq / 3.17 T / 22.6 B / 46.8 B
    Saudia Arabia / 7.167 T / 151. B / 28.5 B
    UAE / 6.071 T / 36.41 B / 67.24 B
    Kawait / 1.58 T / 65.21 B / 10.64 B
    Qatar / 25.63 T / 22.71 B / 16.81 B
    Omar / 849.5 B / 5.669 B / 11.11 B
    Bahrain / 92.03 B / 2.269 B / 4.865 B
    Yemen / 478.5 B / / 8.306 B
    Iraq 40.4 B
    Saudia Arabia 63.2 B
    UAE 73.71 B
    Kawait 38.82 B
    Qatar 48.91 B
    Omar 6.12 B
    Bahrain 10.57 B
    Yemen 6.472 B
    This info is based on end of 2008
    info provided from spread sheet but I could not paste it, so I had to type each entry. never again, if you only new how bad my typing is…..thankyou DiamondBack for your work on this as well….Blue
    Here are some great sites with GCC info and the Economic Agreement
    Between the GCC States.
    1. The Economic Agreement
    Between the GCC States

  23. Henry says:

    It’s worth noting that it was not American troops who apprehended the 52 Al Qaeda terror suspects but Iraqi police.



    Iraq: 52 Suspected Al Qaeda Members Arrested – Police Source

    September 21, 2009

    Iraqi police in the town of Jurf al-Sakhar arrested 52 suspected members of militant group al Qaeda on Sept. 21, Xinhua reported, citing a police source. Authorities believe that the suspects were involved in a series of attacks in Iraq, targeting security forces and civilians. Bombs, weapons and ammunition also have been seized in Jurf al-Sakhar, the source said.

  24. Henry says:

    Iraq News

    Talabani: Iraq to ask help of UN

    Wednesday, September 23, 2009 07:29 GMT

    Before heading to the United States, Iraqi President Jalal Talabani announced that Iraq will call upon the United Nations to help it in the inquiry of Baghdad’s last month recent bombings and to lift sanctions off the country.
    In response to a question over Iraq’s demand to establish a former tribunal, President Talabani told AFP that “the tribunal will be part of our discussions, because the August 19 attacks are considered to be war crimes and crimes against humanity. We will ask for the United Nations to help us.”
    Kurdish regional vice president Kosrat Rasul affirmed that Iraq would call at the assembly for its war reparations to be cancelled and debts to be scrapped in addition to its removal from UN Charter Chapter VII.
    Iraqi President left Al Sulaymaniyah International Airport on Tuesday morning for the United States to attend the United Nations General Assembly 64th session meetings where he will deliver Iraq’s address.
    President Talabani is scheduled to meet with a number of Presidents and senior officials participating in the meetings, a statement by Iraqi presidency said.
    Talabani will attend as well the Socialist International Conference in New York in his quality of deputy head of the Socialist International, the statement added.
    After attending the scheduled meetings and conference, Iraqi President will undergo a surgery in his left knee at the Mayo Clinic hospital, it noted.

  25. Mike says:


    Just listening to CNBC Iraqi expose and it all looks positive, great show, even Jim Cramer is now finally waking up to Iraq investment opportunities, including the dinar, and he was stating where can one get the dinar? Funny, as if he has been on another planet, but then he follows up that all his listeners are calling asking about it, so I would suspect this is going to be a hot topic in the nationwide news after this show airs all week.

    Jim even mentioned looking for or forming an ETF for Iraqi dinar, anyone interested is starting one, we could all pool our dinar and attract investors, sure makes sense to me. I bet we could all pony up a billion from forum, right? lol You have to catch the show, it is all good stuff and everyone is very optimistic and when oil law finally gets passed, Iraq will explode, whoops, bad choice of words. LOL

    Success to all,

  26. Matthew says:

    I admit, I have not been on this blog in a long time… however it was another enjoy to see It is such great case and avoided by so many, even specialist. I thank you to succor making people more cognizant of possible problems.

  27. Henry says:

    DECEMBER 15, 2009
    Iraq Is Wild Card in World Oil Supply

  28. Henry says:

    12/17/2009 5:45:07 AM

    Solagh: the decision to lift the value of the Iraqi dinar was the result of valuable studies

    Finance Minister Baqir Jabr said the Iraqi dinar has been improving during the current period. Bayan said that fluctuations in the local market due to some rumors that have arisen to block this improvement.

    He explained that the Iraqi Central Bank’s decision to raise the value of the Iraqi dinar against foreign currencies was correct and was the result of valuable studies aimed at raising the purchasing power of the Iraqi people above all else. He pointed out that the Ministry’s plans absorbed all future programs in the budget for this year to move the Iraqi economy properly.

  29. AMPEY says:



  30. Henry says:

    Economic: projects to improve the economic situation and provide jobs for the unemployed

    BAGHDAD – morning
    Confirmed the Ministry of Planning and Development Cooperation, the government projects will improve the economic situation and provide jobs for the unemployed

    Said in a statement issued by the Central Bureau of Statistics and Information Technology The rates of unemployment, which has a strong indication according to the latest Economic Survey of Strategic Authority paid for the reconstruction of Iraq to focus during the next phase of economic projects to support the Iraqi economy and providing employment opportunities in the private and public sectors.

    According to the statement: that the economic situation will improve significantly over the coming months in the case of the arrival of the loans earmarked for Iraq from the World Bank and International Monetary Fund and there will be an urgent investment projects to provide employment opportunities. Is certain: the Ministry of Planning is seeking to implement all the projects aimed to rebuild Iraq, especially with the launch of security plan in Baghdad.

  31. Henry says:

    Iraq Dinar Speculation
    Info and news on the explosive potential of the IQD!

    The Iraqi Dinar is currently valued at 1170 IQD to 1 USD, which is to say that for one US Dollar, you can get 1170 Iraqi Dinars. Many people believe that the Iraqi Dinar is ready to make a move back onto the world market and revalue to it’s true value. Investors in Iraq stand to make HUGE profits when this happens. Here are some facts you may not have known:
    Don’t listen to the “naysayers”. We lost out on several million dollars when Kuwait revalued their currency, because we listened to the naysayers.
    Did you know???
    I didn’t know! How could we???
    Did you know that 47 countries have re-established
    their embassies in Iraq?
    Did you know that the Iraqi government
    currently employs 1.2 million Iraqi people?
    Did you know that 3100 schools have been renovated,
    364 schools are under rehabilitation,
    263 new schools are now under construction
    and 38 new schools have been completed in Iraq ?
    Did you know that Iraq’s higher educational
    structure consists of 20 Universities,
    46 Institutes or colleges and 4 research centers,
    all currently operating?
    Did you know that 25 Iraq students departed
    for the United States in January 2005
    for the re-established Fulbright program?
    Did you know that the Iraqi Navy is operational?
    They have 5 -100-foot patrol craft, 34 smaller vessels
    and a naval infantry regiment.
    Did you know that Iraq ’s Air Force consists of three operational squadrons, which includes 9 reconnaissance and 3 US C-130 transport aircraft (under Iraqi operational control)
    which operate day and night, and will soon add
    16 UH-1 helicopters and 4 Bell Jet Rangers?
    Did you know that Iraq has a counter-terrorist
    unit and a Commando Battalion?
    Did you know that the Iraqi Police Service has over 55,000
    fully trained and equipped police officers?
    Did you know that there are 5 Police Academies in Iraq
    that produce over 3500 new officers every 8 weeks?
    Did you know there are more than 1100
    building projects going on in Iraq?
    They include 364 schools, 67 public clinics,
    15 hospitals, 83 railroad stations,
    22 oil facilities, 93 water facilities
    and 69 electrical facilities.
    Did you know that 96% of Iraqi children under the age of 5
    have received the first 2 series of polio vaccinations?
    Did you know that 4.3 million Iraqi children were
    enrolled in primary school by mid October?
    Did you know that there are 1,192,000
    cell phone subscribers in Iraq
    and phone use has gone up 158%?
    Did you know that Iraq has an independent
    media that consists of 75 radio stations,
    180 newspapers and 10 television stations?
    Did you know that the Baghdad Stock Exchange
    opened in June of 2004?
    Did you know that 2 candidates in the Iraqi
    presidential election had a televised debate recently?
    Instead of reflecting our love for our country,
    we get photos of flag burning incidents at Abu Ghraib
    and people throwing snowballs at the presidential motorcades.
    Tragically, the lack of accentuating the positive in Iraq serves two purposes:
    It is intended to undermine the world’s perception of the United States thus minimizing consequent support, and it is intended to discourage American citizens.
    —- Above facts are verifiable on the Department of Defense web site.
    Want to learn more about investing in Iraqi Dinar, or investing in Iraq in general? Subscribe to the Iraqi Dinar Speculation Newsletter, it’s free and your information will never be shared. Click here

  32. Henry says:

    Italian FM: Iraq will recover strongly
    December 15, 2009 – 12:54:10

    BAGHDAD / Aswat al-Iraq: Italian Foreign Minister Franco Frattini on Tuesday said that Iraq will recover strongly and restore its role on the regional and international scenes, the Iraqi Foreign Ministry said on Tuesday.

    This came during Iraqi Foreign Minister Hoshyar Zebari’s meeting with his Italian counterpart on the sidelines of the meetings of the Joint Iraqi-Italian Committee, held on Monday evening in Rome, according to the ministry’s official web site.

    The Italian official has expressed his full support for the Iraqi government in its efforts to establish security and stability and to build a democratic state.

    Frattini has condemned the recent wave of blasts that ripped through the country.
    The meeting was attended by the deputy foreign minister, Labeed Abbawi; the head of the political planning department, Fareed Kamel Yaseem; and Iraqi the chargé d’affaires in Rome, Shamel Abdulaziz Mohammed.
    SS (P)

  33. Henry says:

    To understand the significance of the Iraqi Oil Ministry’s production goal of 12 million barrels per day, review CIA – The World Factbook – Country Comparison: Oil – production to see the current list of top oil producing nations in the world listed on the Central Intelligence Agency’s website.

  34. Henry says:

    Lukoil : Iraq may create a revolution in Oil markets
    Wednesday, December 16 / December 2009 05:32
    Believes Vice President Leonid Fedun Oil Company “LUKOIL” Russian to the start of production in a number of major Iraqi oil fields will generate a “revolution” in global oil markets, increasing global production of black gold by 20%.
    The vice president of “Lukoil” in a statement published on Tuesday, December 15th, said he expected a 5 times increased production in Iraq over the coming years, adding that this will put restrictions on high global oil prices and would prevent the making investments in projects Oktrklvp and the difficulty in other countries.
    Fedun said: “One of the directors told me that Western companies are leading in this area, the history of the oil industry soon will be divided into two stages: the pre-Iraq and post-Iraq. And I agree on this speech. We are seeing a revolution in the extraction of oil.”

    And called for a Russian businessman to re-consider a number of projects dear cost in many countries of the world, including the second phase of the pipeline “Eastern Siberia – Pacific”.
    Fedun pointed out that despite the persistence of terrorist acts in Iraq, the political situation remains stable in the country, and the oil fields are situated in relatively quiet areas are not far from infrastructure. Fedun and expected to double the size of Iraq’s oil production in the coming period to 12 million barrels a day.

    Fedun added that “Lukoil” plans to launch the first phase of production in the field, “the West Qurna – 2″ within 3 to 4 years of signing the contract with the Iraqi Oil Ministry. He informed Fedun, also a senior shareholders, “Reuters” that “the investment will be worth billions of dollars. This project is giant.”

  35. Henry says:

    Hi All,
    Most of the members already know I’m in Dubai, but if you missed it
    or just joined the newsletter:
    Last week I had a short conversation with a contact I have at
    Central Bank of Iraq. In a roundabout way, I managed to get him to
    agree to meet with me if I made it out to Dubai. I checked flights,found one that I felt was reasonable, and left the country!

    He, of course, is in Dubai on business. I’m just here to butt my
    nose in his business and talk to him “face to face”, for once.

    I’ve posted a quick update on the blog: Here is the link.

    I’ll have more to say after I meet with him again tomorrow.

    Best regards!

    -Adam Montana

  36. Henry says:

    Iraq: Kurdish lawmakers confirm support for new electoral laws with UN envoy

    12 December 2009 -The top United Nations envoy to Iraq met today with parliamentarians from the Kurdish Alliance Bloc to discuss the recently brokered electoral laws that allow for national elections expected to take place early next year. The compromise in the electoral law centres on the allocation of seats in parliament, which the Secretary-General’s Special Representative Ad Melkert and the Kurdish lawmakers reaffirmed would be used exclusively for the 2010 Council of Representatives election.

    Since the Council of Representatives finalized the amendments to the law by 6 December, the UN Assistance Mission in Iraq (UNAMI) – which Mr. Melkert heads – has advised all parties that it is feasible to hold the elections on 27 February 2010. National polling was originally slated for January, but the electoral law was vetoed by the Sunni member of Iraq’s three-member Presidency Council last month and was sent back to the Council of Representatives.

    In today’s meeting, both sides stressed the importance of gathering census data in 2010 to support long term planning for the rebuilding and prosperity of Iraq, agreeing that the census data should be used for the development of proper civil and voter registries.

    Mr. Melkert also underscored the international community’s commitment to providing the necessary support to Government institutions conducting the census.
    In addition, he voiced willingness to meet with the officials of the Iraqi Kurdistan Region to continue discussing issues between the Federal Government and the Kurdistan Regional Government, including Article 140 of the Iraqi Constitution, which deals with conditions for holding a referendum in the region regarding its geographical make up.
    Mr. Melkert reiterated the UN’s support to reach a satisfactory and sustainable political agreement on these issues in order to promote security, stability and democracy in Iraq.

  37. Carol Dent says:

    What a facinating blog. I’ve bookmarked it and added your feed to my RSS Reader

  38. Henry says:

    Iraq still waiting on oil firms to OK deals

    Jan 03, 2010 at 21:08

    BAGHDAD – Global companies negotiating multi-billion dollar oilfield deals with Iraq have not yet responded to government requests for amendments to the contracts, a government spokesman said, contradicting an earlier Oil Ministry statement. Ali al-Dabbagh said on Sunday the contracts would only be put before the cabinet after oil companies accepted changes to the nine oilfield contracts, adding only one oil company had agreed so far.

    “We are still waiting for the companies to agree to the comments made by the cabinet on legal issues,” Dabbagh said, adding only Angola’s state oil company Sonangol, which has deals to develop the Qayara and Najmah fields, had accepted. Seven oil deals remain outstanding, part of 10 agreed this year to develop Iraq’s vast oil fields after two bidding rounds for 20 year development contracts, the first such auctions since the 2003 U.S. invasion.

    An Oil Ministry statement last week said the firms, which include oil majors such as Lukoil, Exxon Mobil, and Royal Dutch Shell had agreed to amendments on “legal, operational, administrative and sovereignty issues”. Dabbagh contradicted the statement, saying: “This news is not correct and we are not responsible for it.”

    In the last two weeks, Iraq initialled seven of the deals awarded in a second bidding round in December, and also initially signed two other deals from a first round in June. The 10th deal, with BP and China’s CNPC for the Rumaila oilfield, has already been finalised. The cabinet must ratify the deals before they are finalised. Dabbagh said the amendments were minor and were to ensure the deals were compatible with Iraqi law.

    If all the deals come to fruition, they could more than quadruple Iraqi oil output capacity to rival that of top global producer Saudi Arabia.


  39. Henry says:

    Iraq cabinet ratifies four major oilfield deals
    8:46am EST
    By Missy Ryan
    Iraq cabinet ratifies four major oilfield deals
    8:46am EST
    By Missy Ryan

    BAGHDAD, Jan 5 (Reuters) – Iraq’s cabinet has ratified contracts with foreign firms to develop four oilfields, pushing Iraq a step closer toward finalising deals that may make it a leading world oil producer, the government said on Tuesday. “The cabinet has ratified four oilfields: Majnoon, Gharaf, and in Nineveh province Qayara and al-Najmah,” government spokesman Ali al-Dabbagh said.

    Last month, the Iraqi Oil Ministry initialled service contracts with seven foreign consortia to develop fields including supergiant Majnoon, which was awarded to Royal Dutch Shell and Malaysia’s Petronas [PETR.UL] in a December energy auction. The firms, part of a long-awaited wave of foreign investment in Iraq’s promising oil sector, must now sign final deals before they can begin work.

    The deals represent a mainstay of Iraq’s ambitions to transform its underperforming oil sector and bring output capacity to 12 million barrels per day (bpd), a huge increase from output now of around 2.5 million bpd. The deals ratified on Tuesday were offered to foreign firms at a Dec. 11-12 energy auction, Iraq’s second this year.

    Royal Dutch Shell, Europe’s largest oil company, and Petronas won the rights to Majnoon, a major field near the southern oil hub of Basra. Majnoon, whose reserves of 12.6 billion barrels make it one of the world’s largest untapped fields, was one of the prizes on the block in that auction.

    After a more tepid showing in an initial auction in June, Iraqi oil officials hailed the December auction as a major success. Gharaf, a smaller oilfield with 900 million in reserves, went to Petronas and the Japan Petroleum Exploration Co (Japex) .
    Qayara and Najmah, located in Iraq’s restive north, were both won by Angolan state oil firm Sonangol. The 800-million-barrel Qayara field is south of Nineveh province’s capital Mosul, while nearby Najmah has around 900 million barrels.

    There are three deals from Iraq’s second bidding round that must still be ratified, including Halfaya, which was won by China National Petroleum Company (CNPC), Total and Petronas. Halfaya, in southern Iraq, has estimated reserves of 4.1 billion barrels.

    Badrah, a 100 million barrel reservoir, is another. Badrah went to Russia’s Gazprom , Turkey’s TPAO, Kogas and Petronas. Last but not least is West Qurna Phase Two, which was won by Russia’s Lukoil and Norway’s Statoil . The supergiant field has reserves of 12.9 billion barrel.

    After the deals were initialled, the government said it was seeking a number of technical or operational amendments to the contracts. “Sonangol was the first company to accept the proposed amendments followed by the other companies whose contracts were approved today by the cabinet,” said Sabah Abdul Kadhim, head of the legal and commercial section of the Petroleum Contracts and Licensing Directorate. He said responses from the other companies were expected by Thursday.

  40. Henry says:

    Maliki: It is time to resolve the file Kurdistan oil contracts.

    Iraqi Prime Minister Nuri al-Maliki, Sunday, it was time to open a file
    Kurdistan’s oil contracts and resolution flexibility, realism
    reservation rights and interests, and contribute to the distribution of
    revenues among all Iraqis equally.
    This came in response to a question about Maliki’s position on the
    province of Kurdistan’s oil contracts, and in his window electronic
    communication within a site of the National Center of Sciences.
    He made it clear in his answer: “We talked with the Prime Minister of
    the Kurdistan Region, Dr. Barham Saleh and said it is time to open this
    file and resolved with flexibility and realistic reservation of rights
    and interests in these contracts”
    Maliki said he hoped that the matter is “a crisis on the basis of
    desire in the solution, and that the ownership will be contained within
    Iraq’s imports are distributed equally to all Iraqis,” and through
    “local and federal governments and must be received by the Iraqi
    individual right to services and employment, education, health and
    And Kurdistan was awarded over 30 contracts to international oil
    companies over the past few years, despite objections from Baghdad,
    which in turn prevented the international companies working in
    Kurdistan to compete for oil contracts in the rest of Iraq. [translate_google_com]

  41. Henry says:

    S T R A D F O R

    U.S.: Odierno, McCain Travel To Iraq’s Kurdistan Region

    January 7, 2010

    President of Iraqi Kurdistan Massoud Barzani met with the top U.S. commander in Iraq, General Raymond Odierno, to discuss security cooperation between U.S. troops, the Iraqi army and Peshmerga forces, Aswat al-Iraq reported Jan. 6. U.S. Senator John McCain also traveled to the region and was met by President Barzani’s chief of staff. McCain is expected to meet with Barzani and other top officials during his stay.

  42. Henry says:

    Iraq: Oil Chief Says Crude Exports To Begin In March
    S T R A D F O R

    January 7, 2010

    The head of Iraq’s State Oil Marketing Organization said Jan. 7 the country will begin shipping crude oil in March in preparation for a larger operation in the coming years, Upstream Online reported, citing Reuters. Falah Alamri said the country is familiarizing itself with the process while it readies for exports of 3 million to 4 million barrels per day.

  43. Henry says:

    S T R A D F O R
    GLOBAL INTELLIGENCEU.S.: Iraq Drawdown On Schedule

    December 18, 2009

    U.S. Joint Chiefs of Staff Chairman Adm. Mike Mullen said Dec. 18 that he is confident that the drawdown of U.S. forces will proceed on schedule from the current level of 115,000 to 50,000 beginning in January, the AP reported. Mullen, touring U.S. bases in Basra and Talil, said he is also confident Iraq will hold elections March 7.

  44. Henry says:

    S T R A D F O R
    GLOBAL INTELLIGENCEU.S.: Iraq Drawdown On Schedule

    Iraq: FM, Iranian Ambassador Discuss Oilfield Tensions

    January 7, 2010

    Iraqi Foreign Minister Hoshyar Zebari met with Iranian Ambassador to Iraq Hassan Kazemi Qomi Jan. 6 to discuss tensions over the Fakka oilfield and ways to contain them, Aswat al-Iraq reported. Zebari stressed Iraq’s interest in developing bilateral relations with neighboring countries based on mutual respect and positive cooperation.

  45. Andrew Pelt says:

    Great Article! Thanks!

  46. Henry says:

    Hi !
    Iraqi Exchange Rate Mechanism. If you didn’t know about it, now
    you do. Here’s the article I just put on the blog:
    Best RV Wishes!
    -Adam Montana

  47. Henry says:

    Thanks Andrew,


  48. Henry says:

    Hi all,

    Somebody is predicting an RV in the next 10 days,
    read the post and make your own decision.

  49. Henry says:

    Iraq: KRG Welcomes PM’s Call To Settle Oil-Contracts Issue

    January 18, 2010

    S T R A D F O R
    GLOBAL INTELLIGENCEU.S.: Iraq Drawdown On Schedule

    Iraq’s Kurdistan Regional Government (KRG) said it welcomes Iraqi Prime Minister Nouri al-Maliki’s call to settle the oil-contracts issue, and the KRG added it is prepared to pump 100,000 barrels of oil per day, giving the revenues to the National Oil Co., Aswat al-Iraq reported Jan. 18. The KRG said oil revenues in northern Iraq should be used for the benefit of all Iraqis.

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