This last February 2009 Iraq Drilling Co. signed and completed the creation of joint venture with the British Mesopotamia Petroleum called Iraq Oil Service Co. (IOSCO).
This new company will purchase twelve drilling rigs as well as secure drilling contracts in the fields controlled by South Oil Company (SOC), Oil Exploration Company (OEC), Missan Oil Company (MOC) and Northern Oil Company (NOC), all state owned organizations in Iraq.
IOSCO will be drilling at least 60 drills per year. These activities should bring a 120,000 barrels increase in the country’s daily oil production during the first year. The first fields where there will be new drills are Fakka, Bazargan and Halfaya.
Iraq Drilling Co. and Mesopotamia Petroleum, which hold 51 percent and 49 percent of the joint venture respectively, decided to invest $400 million in the new company. As part of this investment, Mesopotamia Petroleum will supply the joint venture with integrated methods and technologies aimed at boosting production.
An oil drilling tender was held on December 31, 2008, where 35 international firms joined. In April 2009, the Ministry of Oil announced a list of nine investors selected to participate in the negotiations for drilling contracts, including KazMunaiGaz (Kazakhstan), Rosneft and Tatneft (Russia), PetroVietnam, Pakistan Petroleum, Sonangol (Angola), Jogmec (Japan), Cairn Energy Plc (UK) and Oil India.
The winning bids were announced at the end of June 2009. Winning bidders will be awarded service contracts under which Baghdad will pay them a certain fee, and offer production sharing contracts which would involve the sharing of profits.
Despite the Ministry of Oil’s efforts to bring international investments to Iraq, contractors remain sceptical on the country’s ability to complete the implementation of these projects. The problems lay not in money or security issues, but the process of decision making, as Iraq’s government is still not stable and solid.
The country’s inability to complete the implementation of contract procedures has been a long-term saga putting obstacles in the rehabilitation of the oil industry. Back in 2004, Weatherford, a US company, had won a contract for 60 wells which was never completed. Yes, that was 5 years ago, we will see if the massive amount of new contract agreeements get drilled out.
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Article may be reprinted online and offline as long
as this box remains and hyperlinked online. Written
by Darren Chabluk for http://DrDinar.com/blog
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Can’t wait for the government to become more stable.
has any one read the ,IRAQ NEWS….removing three ZEROs OFF the dinar ?????
George,… We did a call on this earlier in the month. You need to listen to the mp3 recording of it. Go to http://DrDinar.com/blog and click the ‘recordings’ link and download the most recent podcast from august.
Any forward movement is a good sign. I believe though, that a big problem for Iraq is its `factions`. That`s where a big part of the instability lies. Once this problem (albeit a big one) is on the way to being solved, that`s when, in my view, we`ll see some progress in all areas.
The president of CBI (Central Bank of Iraq) stated in the past 2 weeks that they will more than likely drop zeros, his example was that, one thousand dinars will be worth one dinar. They can drill all of the oil they want to, until the sanctions are lifted nothing will happen.
Johnny, this is called ‘False Witness’, your source has been corrupted.
Darren, go to http://www.iraqdirectory.com and scroll down until you find the article in regards to zeros off of the dinar by the president of CBI, now maybe he might be corrupt.
Darren actually he is an advisor of CBI, the article you will be looking for in the archives will be name “A long term monetary policy needed to delete the zeros off of iraq currence” again go to Iraqdirectory.com and look under the archive for this article. Let me know what this means, thanks.
Zeros are not coming off of the bank notes, zeros WILL come off of the right side of the decimal place of the exchange rate. Any advisor that explicity says zeros are coming off the bank notes is way out in left field and then some.
I sure hope you are right, all I am saying is what is written from the advisor of the CBI in the Iraqdirectory. Thanks for clearing it up for me.
Conference to amend Kurdistan Region Investment Law
PUKmedia 31-08-2009 11:33:04
31-08-2009 11:33:04
of Inquiry and Information in Kurdistan Region Investment Board Haider Mustafa
in a press statement said that a conference is going to be held to review and
amend the Investment Law in the Region clarifying that a Lebanese company
specialist in making investment laws will effectively participate in the
event.
UN Security Council discusses Iraq would emerge from Chapter VII in a timely manner
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UN Security Council discusses Iraq would
emerge from Chapter VII in a timely manner . Delegate
to the United Nations Susan Rice said Iraq’s attempt to get out of Chapter VII
of the issue of interest to the UN Security Council. told Kuwait
News Agency that the issue of Iraq would emerge from Chapter VII will be
discussed at the UN Security Council the right time. Pointing out that
the Iraq issue is still within the agenda of the UN Security Council for a
fourth month in a row, and this issue remains of interest to members of the UN
Security Council and will be discussed in a timely manner in which the situation
is appropriate for constructive discussions and to achieve completion.
indicated that Washington’s view is that they want to work with
Iraq and other members of the UN Security Council to make sure that the
situation in Iraq under UN Security Council Chapter VII does not correspond with
the realities of today are opposed to the past as well.
http://snipurl.com/rkmao [translate_google_com]
Shahristani wants Iraq oil contracts signed by January
Arabian Oil & Gas – [8/28/2009]
Iraq’s Oil Minister has said that he wants the second round auction for development contracts for the country’s oil and gas fields to be concluded by December.
News agency Bloomberg reported that Hussain Shahristani wants the successful bidders to sign the contracts by early January, before the country goes to the polls in the forthcoming Iraq government elections.
“The orders we receive from the government is to proceed as quickly as we can,” Shahristani is quoted by Bloomberg as saying.
“We don’t expect a new government to have a different policy to develop these fields,” he added.
The auction will include six partly developed and four undeveloped fields although it could also include some of the fields from the first auction that did not attract successful bids from foreign oil companies.
http://www.iraqdirectory.com/DisplayNews.aspx?id=10271