New laws for Iraq Oil legislation will most likely be delayed till after the January National Polls In Iraq. There is no indication at all that the Voting itself will be delayed just over 2 months away. Therefore, the elections are on for Iraq and Iraqis will have a chance to define a leader who will most likely take the country into a Revaluation in the next political term starting in 2010.
“All the indications point to the fact there is no hope for putting the oil and gas law on the agenda during the time remaining for this parliament,” said Ali Hussain Balou, a Kurdish born hard hitting Iraq Government Critic.
“Due to the insurmountable conflicts between political blocs, passage of this law could be delayed until the next parliament,” Ali Hussain Balou rifled off.
Modernizing Iraq’s oil production and export systems is crucial to hitting record production goals and is absolutely achievable with this oil law in place. Without the oil law in place, feuding between Government leaders in Iraq creates a dangerous legal ‘grab and run’. The law once in place will allow enforcement of the law to help greatly reduce corruption in Iraq.
Every election Iraq has had so far with the new Dinar currency has been a strong success. 2010 Iraq elections will be a turning point for a new era on this journey towards massive profits.
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This article may be reprinted online or offline as
long as this box remains and hyperlinked online.
By Darren Chabluk for http://DrDinar.com/blog
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Hello everybody. Well it looks like 2010, early spring or later. No matter, a few more months won’t hurt at all. Thank God that these folks have the wisdom and good sense to want to do it right. Mainly reducing or eliminating corruption, and increasing production levels. They are saying the oil law could be delayed until next year but it could also be passed before January, but it also has to be done right for this new era of massive profits to come about.
THE DINARS WILL BE REINSTATED IN IRAQ AT $3.22 IN AMERICAN
MONEY………
AMPEY, What makes you so sure of this? ANYONE, IS IT POSSIBLE THAT THE RV CAN HIT AT 3.22 USD THEN START TO DROP UNTIL IT EQUAL OUT ONE FOR ONE WITH THE USD?
Ampey,
You’ll want to read last weeks blog post and all the comments on it.
Kuwait, owns 60% of the banks in Iraq and Kuwait Government (who has sanctions on tied to Iraq) would not want to relive the challenge the World Bank had backing Kuwaits reval in the $2 range, it did jump to over $3 over night from demand after the reval.
1 cent to 82 cents is my range of predictions. Even 1 penny will make many people a small fortune.
So we wait! Not much else we CAN do – as Edward says what`s a few more months??
I do think that the Dinar will `come in` at around 82 cents. We`ll just have to wait and see how our `predictions` hold out.
Not “If” , but when the reval takes place in 2010 will there
be anywhere in the U.S. of A where you can exchange these Iraqi notes? Just wondering ..
Alfred, you must be new to the blog but thats great. The purpose of a reval is to put the banknote onto the world market. The main purpose of the world market is to make the banknotes available for world trading at all currency trade houses in every country that trades world currency.
It seems that the revaluation is still years away. The continuing economic turmoil has reduced the buying power of all consumar nations. We should not expect a miracle to happen in the value of Iraqi Dinar. The situation of Kuwait was completely different as it had about 100 Billion dollar in foriegn corrency reserve at the time of Invasion. As far as I am concerned, I am ready to hold for another 5 years. Ampey seems to be overestimating.
After thorough study within my available means, I have come to the following conclusion with respect to the value of Iraqi Dinar:
1. Maturing the democratic governance in Iraq will take another few more years.
2. The economy will only start showing good results once the political, administrative and ethnic challenges are met.
3. Iraq will allow the gradual appreciation of the Dinar before it decides to revaluate and it will take a minimum of 2 more years.
4. A revaluation will not be more than .01 cents in the first phase.
5. Upon the first phase, Iraqi Central Bank will withdraw high denomination of 25000 within a shorter period.
6. The value will gradually appreciate and may reach up to .04 within one year and by this time the Central Bank again will revaluate to .05 to .06 cents and will withdraw the denomination of 10,000 and 5,000 within a specific timeframe.
7. There is a chance that the value may go up to .10 cents. However, denomination of 1000 is going to stay.
8. There is also possibility that the Central Bank will replace the Dinar with smaller denomination.
So, I see a long road ahead for all this to materialize. In my calculation, in another 4 to 5 years, we might see the some light in the tunnel. Because, a lot of anxious investors seem to be too greedy for quick money. It will be better for everyone to think in a practical way, than daydreaming.
U.S dollar is loosing value against the euro 1.48 of ours to get a dollar
worth of theirs. I know there is billionsof dollars throug out the world
invested in the dinar. I beleave the gov. had rather borrow the money
from the central bank to get the dinar rvaluated to at least a .80.
I beleave traders will bid the dinar up pretty fast because the dollar is so weak.
I am of the same opinion as Atta Khalil. The value of dinar will take some time to realize significant increase. I can see a possible increase of .02 in two to five years. One for one – dollar for current dinar – is unlikely.
Well ! Lets assume the .01 happens. The Iraqui people and a lot of others want sell. I would say if it were going to be that low it would be
at least .25 to .35 . I would think there would be plenty of investors
come in to buy the dinar from which ever happens. With any situation
the Central Bank will most likely be a major investor. Don’t forget
Iraq is a merging economy. I just do not think a oil rich country
will let that happen. The Government wants the standard of living
to go in Iraq. I beleave they want their money to have real value,
compadable with the rest of the world.
S T R A T F O R
GLOBAL INTELLIGENCE
Iraq: Cabinet Approves $68.3 Billion Budget For 2010
October 13, 2009
The Iraqi Cabinet on Oct. 13 approved a 78.73 trillion dinar ($68.3 billion) budget for 2010, with a budget deficit of 17.95 trillion dinars ($15.4 billion), which it plans to cover by issuing bonds and through loans from multilateral lenders, Reuters reported, citing a government spokesman.
i personally feel tht the dinar will b well over . 02 n two years. Iraq was jus approved of a 52 billion dollar loan. How can they pay back this loan with a worthless dinar? Iraq has many countries and banks backing its dinar. They jus need to get their government organized and oil pumping and their dinar will b a great profit
Baghdad closes in on first round oil deals
News wires
Iraq is in the final stages of negotiating deals for oilfields left over from a June energy auction after players put forward new bids for production targets and accepted Iraq’s fee terms, Oil Minister Hussain Shahristani said.
Reuters quoted Shahristani telling a news conference that Eni, Occidental, and the Korean Gas Corporation (Kogas) had proposed a production plateau target of 1.125 million barrels per day for the Zubair oilfield and had agreed to a fee of $2 per barrel.
He also said a consortium of Lukoil and ConocoPhillips was competing against ExxonMobil for West Qurna, Phase 1.
The Lukoil group had proposed an output target of 1.5 million bpd, while ExxonMobil had put forward a target of 2.1 million bpd.
Earlier this week, another top oil official said Iraq was expecting another offer from France’s Total for West Qurna.
Oil officials were expected to meet with companies in Istanbul, where they will hold a workshop on a second oil auction expected in the first half of December.
The ministry’s first auction, held in Baghdad at the end of June, was the centrepiece of Iraq’s efforts to boost production and revive its lucrative but crumbling oil sector.
Of eight fields offered, only one deal was clinched after players baulked at the Oil Ministry’s stiff payment terms.
In that deal, BP and China National Petroleum Corporation agreed to a fee of $2 per barrel to develop super-giant Rumaila field.
Kuwait news Agency (KUNA)
Iraq reaches agreement with three oil firms to boost production capacity
Iraq reaches agreement with three oil firms to boost production capacity Power & Materials 10/13/2009 11:35:00 PM
BAGHDAD, Oct 13 (KUNA) — In a major breakthrough for the country’s oil industry, three international oil companies have accepted Iraq’s oil ministry terms to develop three fields in the south which would boost the country’s oil production to six million barrels per day (bpd), Iraq’s oil minister Hussain Al-Shahristani said on Tuesday.
Last June, several oil companies initially rejected Iraqi oil ministry’s terms for the country’s first round of oil-field bidding, but now they are close to accepting the ministry’s terms, Al-Shahristani said in a press conference.
The minister noted that the three fields’ combined output would exceed six million bpd with gigantic direct investment from these firms.
“We do believe that it is a big leap in developing Iraqi oil fields,” Al-Shahristani said, adding “I’m proud with this success.” A multinational company led by Italy’s Eni has agreed to develop the country’s 4.1 billion-barrel reserve in Al-Zubair oil field for USD two per barrel produced based on a target production level of 1.125 million bpd, the minister said.
Two other corporations, one led by Russia’s Lukoil and ConocoPhilips, and another by Exxon Mobil with Royal Dutch Shell, have agreed to develop the 8.6 billion barrel reserve in southwest of Al-Qurnah field Stage One oil field for USD 1.9 per barrel, Al-Shahristani added.
The Lukoil-led consortium’s targeted production is 1.5 million bpd while the other consortium’s targeted production is 2.1 million bpd, he said.
Eni had previously bid USD 4.8 per barrel to develop the field, while the Lukoil consortium submitted an earlier bid of USD 6.49 per barrel and the Exxon Mobil-led consortium was asking for USD four per barrel.
Al-Zubair is currently producing about 230,000 bpd while West Al-Qurnah Stage One is producing about 280,000 bpd.
The minister said the deals could be signed officially within the coming two weeks.
Although Iraq sits on the world’s third-largest oil reserve, with at least 115 billion barrels, the country is producing and exporting far below its potential because of decades of war, lack of investment, and insurgent attacks.
Its daily production ranges between 2.3 to 2.4 million bpd and exports slightly over two million bpd. (end) ahh.mb KUNA 132335 Oct 09NNNN
I have been working in Iraq for five years. In my front yard, there is oil oozing out of the ground. However, corruption in the government is the main issue to overcome. They are like Mexico, there is a bribe, take on every transaction.
Example is the tax at BIAP. We pay one amount and are credited another on the receipt. The extra money goes into the pocket of whomever is issuing the receipt.
Most governments have laws against such things and it makes for problems.
If there is a Shite majority in the next election……I think we will have some pretty currency to look at.
Iraq’s Parliament to Finalize Election Law by Weekend.
By The Hawler Tribune
13/10/2009
After a series of disputes, the Iraqi political factions have come to a solution over most of their disputes regarding the election law which is supposed to be voted on by Sunday.
Kurdish MP Mahmood Osman told Dangubas.net most of the issues have got resolved and the dissuasions are still ongoing.
“What has still remained to be settled in the law is Kirkuk’s issue. The Arabs and Turcomens of Kirkuk want Kirkuk to be divided into three circles of voting, however their claim was rejected by the Kurdistan’s alliance and the Iraqi Federal Court,” said MP Osman.
Iraq, which held provincial elections on January 31, is supposed to hold parliamentary elections on January 16th 2010.
Dollar plummets on reports of secret talks to end reserve status
Tuesday, October 06, 2009
From Newsmax:
Big oil producing nations denied a British newspaper report on Tuesday that Gulf Arab states were in secret talks with Russia, China, Japan and France to replace the U.S. dollar with a basket of currencies in trading oil.
The dollar eased in response to the report, which was written by The Independent’s Middle East correspondent Robert Fisk and cited unidentified sources in Gulf Arab states and Chinese banking sources in Hong Kong.
It said the proposal was for trade in crude oil to move over nine years to a basket of currencies including the Japanese yen, the Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, which includes Saudi Arabia and Kuwait.
World’s central banks are officially dumping the dollar
Wednesday, October 14, 2009
Text Size:
From Newsmax:
For months, governments around the world have threatened to diversify their currency reserves away from the dollar.
Central banks increased their foreign currency holdings by $413 billion, or 6 percent, last quarter.
That was the biggest rise in at least six years, according to Bloomberg News.
And for the countries that reveal how they allocate that money, 63 percent of the fresh cash went into yen and euros during the second quarter, soaring from 37 percent 10 years ago, according to Barclays Capital.
Ron Paul: Iran attack would cause dollar crisis
Friday, October 02, 2009
From LewRockwell.com:
Scary times ahead? Perhaps, if you take credence in what Rep. Ron Paul, R-Texas, says.
Paul explained on Glenn Beck’s Sept. 30 radio program that perilous times lie ahead due to the Federal Reserve’s loose monetary policy. Host Glenn Beck asked how an Israeli strike against Iran might trigger problems with the American financial system.
The libertarian Paul maintained China would become the world’s financial heavyweight and they were already making preparations to be the world’s top dog.
“I think the Chinese take over,” Paul said. “If there’s a real panic and oil shoots up to a couple of hundred bucks, the Chinese will dump their dollars.”
Jim Rogers: Oil could trade for $200
Friday, October 09, 2009
From 24/7 Wall Street:
One of the greatest hedge fund managers in history, Jim Rogers, insists that oil will move above $200 at some point during the bull market. He also sees the coming bubble in Treasuries bursting soon. Rogers commented that “the U.S. government bond market will be the next bubble to burst due to unsustainable borrowing,” during an interview with Reuters TV.
Rogers’ argument is no different from that of most other commodities bulls. A rapid recovery in the global economy will hit oil supplies with unprecedented demand. Oil fields around the world…
Political first: Samurai sent to al-Maliki proposed settlement of Kuwaiti reparations
Speaker for the “morning”: the United Nations and the Kuwaiti side and most of the political blocs supported the project
Baghdad morning
Speaker announced by Dr. Iyad al-Samarrai said the proposal to transfer the Kuwaiti reparations implications on the country’s investments is before the government to adopt the appropriate resolution after the creation of the parliament floor appropriate to it, especially with the presence of Kuwaiti and internationalist support for this project.
Samarrai said in a statement to the “morning” that “Kuwaiti officials, headed by the Prince and Deputy Prime Minister and Chairman of the Board of Deputies of the nation and known for their criticism of the Iraq welcomed and agreed to the idea put forward to address the issue of compensation through the establishment of a fund for the reconstruction of Iraq, including an administrative body and advisers from the Iraqi side, and go compensation fund for Kuwait for the Fund for the implementation of the Kuwaiti investments directly or lending Iraqi investors to implement projects or provide assistance to infrastructure projects in the country.”
President al-Samarrai had visited Kuwait last July and held talks described as positive with the Amir of Kuwait Sabah Al-Ahmad Al-Jaber Al-Sabah, also sent a formal invitation to National Assembly Speaker Jassem Al-Kharafi to visit Baghdad, and discussed with Kuwaiti Prime Minister and his deputy, the consolidation of joint cooperation and ways to extinguish the debt and compensation Kuwait .
And the speaker said, “This idea is now before the government to adopt the appropriate decision thereon being concerned that the development of the idea to the project work, particularly that the House is not an executive to take steps in this direction, but made for a conviction and his effort to seek political in this regard”, pointing out “The idea has been welcomed by the United Nations represents the options works because Kuwait had a surplus of money and are looking for investment because the future (Kuwait) is linked with the economic success of the implementation of future investments to ensure cost-effective post-oil era.”
He Samurai “there is no objection from any political party for the idea of Iraq for the compensation fund because the entry of investments into the country from around the world is a requirement for all political blocs,” noting that “the idea of Kuwait will employ its investments in its favor in the fields of agricultural, industrial and other sectors will be integrated with the Kuwaiti economy and the most important elements of success in the project, where the two interest rates prevail. ”
In the same file, sources familiar with the “morning”, the President of the Parliament sent a letter to Prime Minister Nuri al-Maliki, including a report on the idea put forward during his visit to Kuwait recently on the transfer of compensation to Kuwaiti investments and NOC officials there of the proposal. ”
The sources said the message Samarrai urged the Government to respond quickly to resolve differences between the two sides through dialogue with a view to secure an exit from Iraq under Chapter VII, noting that UN Secretary-General Ban Ki-moon for his part sent a message to Iraq and Kuwait in this regard in order to consider the proposal of conversion compensation to the investment.
GSA Approved Safes Are in
10th Sustainment Brigade Public Affairs Office
Story by Capt. Camilla Swain
Date: 10.14.2009
Posted: 10.14.2009 08:12
CAMP TAJI, Iraq – The long wait is finally over, as new safes have arrived for Bravo Detachment, 101st Financial Management Company, out of Fort Campbell, Ky., 208th FM Co., Troops Battalion, 10th Sustainment Brigade. The new safes are a welcome arrival, as the old safes were not in compliance with current regulations.
“Getting these new safes to the Finance Office was really a team effort,” said Cpl. Daniel Valoaga a Junction City, Kan., native, and a certifier for the unit. “We coordinated with the personnel in Official Mail to utilize one of their vehicles to pick up the safes from the Central Receiving and Shipping Point Yard. We put in a work order with the KBR (Kellogg Brown & Root) Movement Control Team to acquire a forklift and forklift driver to move the safes on and off the vehicles. We borrowed jacks from the 96th Transportation Company and personnel from the finance detachment at Hammer also helped us move the safes into the Finance Office. Overall, it was a huge team effort.”
“Seeing new safes delivered to Camp Taji was exciting for me as a Disbursing Agent,” said 2nd Lt. Katherine Palesky of Plano, Texas, the disbursing agent for the detachment. “Our safes must meet the regulations to ensure proper security of the funds. Our current safes have gotten a lot of use as finance detachments have transitioned in and out of Camp Taji, and it’s a luxury to have brand new safes here.”
Now that the new safes are inside the vault, it allows the flexibility for Palesky to place all the funds according to denominations separated from the Iraqi Dinar. The vault is now complete and sets the incoming unit up for success in the future of finance operations on Camp Taji.
Iraq postpones second oil bidding round
10/14/09
Iraq’s oil ministry has delayed its second oil and gas field bidding round until
next January,
Bloomberg has reported. Forty-five companies are qualified to bid in
the auction for work on ten oilfields, originally scheduled for mid-
December, the ministry said. Iraq seeks to boost its production
capacity eventually to between 10 million and 12 million barrels a day
through the second bidding round.
http://www.ameinfo.com/212258.html
iraq: ‘Hydrocarbons law delayed until after election’
Iraq has delayed the discussion of a stalled hydrocarbons law, seen as key to the country increasing its oil production, until afterThe proposed law, which would regulate the oil sector and divide responsibility between the central government in Baghdad and Iraq’s provinces, has been held up for three years due to disagreements between MPs from the country’s majority Shia and minority Sunnite, Kurd and other communities.
“There is no agreement on the contents of the oil law… because this government wants the management of the oil sector to be centralized”, said Ali Hussein Balo, a Kurd and chairman of the parliamentary Oil and Gas Committee.
“Due to these conflicts, we have decided to delay the oil law enactment until after the election”, he told journalists.
Iraq hopes to be able to pump six million barrels per day (BPD), up from the current output of around 2.5 million, within the next four to five years as new projects come online, Oil Minister Hussein al-Shahristani has said.
The country has the world’s third-largest proven reserves of oil, with more than 115 billion barrels, behind only Saudi Arabia and Iran.
But investment in Iraq’s ageing energy infrastructure has been hampered by delays to the hydrocarbons law.
When the government auctioned eight major energy contracts in June, only energy giants BP and China’s CNPC won a bid, agreeing to receive only two dollars a barrel to operate the giant Rumaila field, which has known reserves of 17.7 billion barrels.
It was the first big upstream agreement between Iraq and foreign oil majors since nationalization of the country’s oil production about four decades ago.
The second round of bidding for Iraqi oil contracts is due in the first half of December, Shahristani said last month.
http://www.mmorning.com/ArticleC.asp?Article=7277&CategoryID=6
Shahristani faces Parliament query
By BEN LANDO
Iraq Oil Report
BAGHDAD – Iraqi Oil Minister Hussain al-Shahristani has been given a formal date to answer questions before Parliament. He’s been criticized for not boosting production enough and signing contracts without a new law or Parliament’s approval.
At the Oct. 27 hearing, he could face a vote of no confidence, which is unlikely after this week’s announcements of oil deals to be signed imminently. The minister is also a reoccurring target of many political parties, such as the Kurdistan Alliance which is at loggerheads with Baghdad over the government’s refusal to sign off on oil deals in the north. Political parties looking to reign in Prime Minister Nouri al-Maliki or those who feel the government cut it out of policy making also focus on Shahristani.
Jabir Khalifa Jabir of the Fadhila Party said the questioning will focus on how the ministry spends its money, utilizes the oil and fuel, deals with employees who raise red flags and the deals which the government has signed. Jabir is number three in Parliament’s Oil & Gas Committee and said it has the rights to approve all deals, such as the CNPC contract for Ahdab.
“The aim of this questioning is to replace this oil administration by a new one which is able to run the oil sector and ministry,” Jabir said. “The current administration is not qualified by its policy to properly function. We aim to change it.” Jabir has in the past complained that the Parliament’s speaker has refused to put the questioning on the agenda.
Shahristani and government spokesman Ali al-Dabbagh in a press conference this week backed the oil policies. At a press conference they also announced oil companies like Exxon Mobil, Conoco Philips, Lukoil and Eni have resubmitted bids for two of Iraq’s major oil fields. The companies have apparently changed their mind on the ministry’s terms, at which the companies balked at a June 30 auction. The fields, plus a third which was awarded June 30, could increase production to 6 million barrels per day within six years.
“These contracts will provide good opportunity to develop the Iraqi economy and will participate to a large extent in development in Iraq and in getting additional revenues to the state of Iraq,” said Dabbagh.
Shahristani, when asked about his critics, said: “About the political pressures, I will leave it to the Iraqi people to hear from those who criticize the oil ministry that it does not have an oil policy to follow and does not participate in increasing the production.”
http://www.iraqoilreport.com/politics/shahristani-faces-parliament-query-2343/
Iraqi Oil Ministry: We hope to increase production to 12 million barrels per day
Iraq – Oil – production
10/16/2009 15:30
Baghdad, October 16 / October (AKnews) – The Iraqi Oil Ministry on Friday, the existence of efforts to raise oil production to Iraq for up to twelve million barrels per day after the conclusion of contracts for the second round of licensing.
Taq Taq Oil, Taq Taq oil in Arbil, Kurdistan Oil, Zakho Oil و”. The ministry spokesman Assem Jihad told Kurdistan News (AKnews) that “The oil ministry hopes that Iraq’s oil production up to twelve million barrels per day after the conclusion of contracts for the second round of licenses for a number of fields, most notably Al Zubair oil field and the West Qurna field first stage.”
He added that “Iraq will top the list of Petroleum Exporting Countries to achieve this production, which will affect positively on the income level as well as higher level of living of the individual.”
Iraq approves oil deal with BP-led consortium
By SINAN SALAHEDDIN (AP) – 10/17/09
BAGHDAD – The Iraqi government has approved a deal with a consortium led by British giant BP PLC to develop a prized oil field in the south in a major step forward for the country’s oil industry.
BP, which was booted from the country in 1972 when Saddam Hussein nationalized the oil industry, and its partner CNPC of China were the only winners in Iraq’s first international oil auction in over 30 years for development rights for the 17.8 billion barrel Rumaila field.
Out of two gas fields and six oil fields offered in the June 30 bidding round, the Rumaila contract was the only success story. Most oil companies rejected the prices Iraq was willing to pay, striking a major blow to Iraq’s hopes for an oil-revenue fueled postwar recovery.
Although Iraq sits on the world’s third-largest oil reserve, with at least 115 billion barrels, the country is producing and exporting far below its potential because of decades of war, lack of investment, U.N. sanctions, a brain drain and insurgent attacks. The government has been trying to entice foreign investment to boost output.
Government spokesman Ali al-Dabbagh told The Associated Press Saturday that the Cabinet approved the deal late Friday after it was signed initially on Oct. 8 by the Oil Ministry. He did not provide further details.
The BP-CNPC consortium had bid to take $3.99 per barrel produced, but later slashed their price to the $2 per barrel payment sought by the Oil Ministry. They were competing with a consortium led by U.S. giant Exxon Mobil Corp., which refused to amend its offer of $4.80 per barrel. Daily production from the Rumaila field stands at about 1 million barrels a day, almost half of Iraq’s daily output of 2.4 million barrels. BP’s targeted production is 2.85 million barrels per day.
BP will hold a 38 percent stake in the venture, while CNPC will have a 37 percent share. Iraq’s State Oil Marketing Organization will control the rest. The latest deal is the second secured by CNPC in postwar Iraq. Last year, CNPC signed a $3 billion deal to develop the al-Ahdab oil field in the south – a deal first signed in 1997 under Saddam and then revived.
But the deal approved Friday marks the return of BP to Iraq after the 1972 oil nationalization pushed out Western oil companies. BP has a long history in Iraq. The company was a shareholder in the Iraqi Petroleum Company when it started drilling Iraq’s first oil well at Baba Gurgur just north of the oil-rich province of Kirkuk in June 1927.
BP had a representative office there for many years until Saddam invaded Kuwait in 1990 and they closed their office. It has been a regular buyer, directly or indirectly, of Iraqi crude for many years. In the last few years, BP has worked with the government to provide assistance on reservoir management to help bolster production.
The news comes as a number of consortiums who offered bids during the first round agreed to lower their terms. Last Tuesday, Oil Minister Hussain al-Shahristani said the ministry was revisiting its first bidding round after three international oil consortiums accepted Iraq’s terms for developing two fields and submitted revised offers.
A consortium led by Italy’s Eni has agreed to develop the country’s 4.1 billion barrel Zubair oil field for $2 per barrel produced based on a target production level of 1.125 million barrels per day, al-Shahristai said.
Two other consortiums, one led by Russia’s Lukoil and ConocoPhilips, and another by Exxon Mobil with Royal Dutch Shell, are competing to develop the 8.6 billion barrel West Qurna Stage 1 oil field for $1.9 per barrel, he added.
The Lukoil-led consortium’s targeted production is 1.5 million barrels a day, while the other consortium’s targeted production is 2.1 million barrels a day, he said.
Eni had previously bid $4.8 per barrel to develop the field, while the Lukoil consortium submitted an earlier bid of $6.49 per barrel and the Exxon Mobil-led consortium was asking for $4 per barrel.
Zubair is currently producing about 230,000 barrels per day, while West Qurna Stage 1 is producing about 280,000 barrels a day. Al-Shahristani said that the three fields’ combined output would exceed 6 million barrels a day in six years with a total direct investment from these firms expected to be about $100 billion.
The two deals could be signed within the coming two weeks.
The overall fall of oil prices since last year has forced the government to slash spending plans for this year from $79 billion to $58.6 billion. The oil sector represents about 65 percent of gross domestic product and its revenues account for 95 percent of Iraq’s earnings.
Iraq is offering 10 oil projects in its second bidding round, which is planned to be finalized in mid-December. Forty-five international oil companies will take part.
Copyright © 2009 The Associated Press. All rights reserved.
10/19/09
10:40 AM
News Alert!
Morning Everbody,
CNBC will being doing interviews through out the day about IRAQ.
Shell Renegotiates with Iraq for Kirkuk Field Rights
by Hassan Hafidh
Dow Jones Newswires 10/16/2009
Royal Dutch Shell PLC is renegotiating with Iraq about the Kirkuk oil field, one of Iraq’s largest oil producing areas, after it didn’t win access to the field in the country’s first licensing auction held in Baghdad in June, company sources and Iraqi oil officials said Friday.
Iraqi Oil and Gas Developments
“Shell has held talks with the Oil Ministry on Kirkuk recently and both will meet again soon,” one company source said.
Shell didn’t accept the Iraqi Oil Ministry payment fees of $2 a barrel in June’s auction. It wanted $7.89 payment fee for each extra produced barrel.
Shell has asked the Ministry to raise the per barrel fee, Iraqi oil officials said.
The Oil Ministry needs to get the approval of the Iraqi prime minister to allow such increase, they said.
The Shell-led consortium, which included China’s CNPC and Sinopec (SHI) and Turkey’s TAPO, offered to raise output to 825,000 barrels a day against Iraq’s minimum 600,000 barrels a day. Sinopec is now blacklisted by the Oil Ministry because it bought Addax’ share in a Kurdish oil field in northern Iraq. Baghdad doesn’t recognize the contracts signed by the Kurds with international companies.
Kirkuk is among eight fields on offer in Iraq’s first post-war licensing round, when the only award was to BP PLC (BP) and CNPC for Rumaila.
Companies returned to the negotiating table after contract terms, especially regarding Iraq’s 35% tax rate, were clarified, an Iraqi oil official said. They were also encouraged by BP’s expectations of a 15%-20% investment return on Rumaila and hope the two neighboring fields will generate the same profits.
Iraq Tuesday awarded Zubair oil field to Italy’s Eni SpA (E) and is on the verge of awarding a contract for West Qurna-1 after investors caved in on the Oil Ministry’s payment demands. Both fields were listed in the country’s first bidding round.
Lukoil Holdings (LKOH.RS) and ConocoPhillips (COP) are competing against ExxonMobil Corp (XOM) and Shell to win West Qurna-1.
Both have agreed to the ministry’s payment fee of $1.90 a barrel, but each had in June different proposals for production increase. Lukoil proposed to increase production to 1.5 million barrels a day from around 260,000 barrels a day, while Shell proposed to increase to around 2.3 million barrels a day.
Iraq is planning a second bidding round in December when it would auction 10 groups of giant oil and gas fields. Iraqi oil officials said crude oil production could reach 7 million barrels a day in six years. Iraq is currently producing around 2.4 million barrels a day.
CNBC Video:
http://www.cnbc.com/id/15840232?video=1300167523&play=1
http://dinarspeculation.com/2009/10/20/jim-cramer-on-the-iraqi-dinar
Jim Cramer on the Iraqi Dinar
Jim Cramer, well known author and host of “Mad Money” on CNBC, talks about Iraq and the Iraqi Dinar in an interview with CNBC’s Erin Burnett. Erin Burnett has been doing a series of articles on Iraq recently, and apparently owns Iraqi Dinar herself, was chatting with Jim Cramer today about the topic.
Babylon Fund, broker Auerbach Grayson and Northern Gulf Partners were all mentioned in the conversation in relation to investing as well. Cramer, to his credit, did not endorse these companies personally, since he obviously has not had time to research them himself.
You know what, though? When the Iraqi Dinar makes it to Mad Money, do you think we’re getting close or what?
Here is an article I READ this evening, See BBC news at address URL below:
Iraq MPs approve election reform
The Iraqi parliament has approved a crucial election law ahead of national polls due in January 2010.
The reform was passed by a wide margin after weeks of deadlock, which had raised fears that the parliamentary election might have to be delayed. There have been concerns that such a postponement could undo recent progress towards greater stability. The poll is seen as crucial to stability and could impact on the US plan for a pullout, correspondents say.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/middle_east/8349491.stm
Iraq passes election law and makes major banking advances
at Iraq Dinar Speculation
http://dinarspeculation.com/2009/11/09/iraq-passes-election-law-and-makes-major-banking-advances Iraqi Parliament” Anyone think these two things might make an impact?
First – the Iraqi Election Law passed yesterday, which will open the doors for national Iraqi Elections in January. The law was being held up primarily due to the Kirkuk territory dispute, which you may also remember had prime impact on HCL progress. While the dispute over the territory has not been fully settled, Iraqi officials have found a way around the issue. They plan to use voter rolls from 2009, rather than 2004. Although the decision is a win for the Kurds who are claiming a majority over the oil rich area of Kirkuk, the debate is not yet concluded. This is still great news, because it means elections are going forward as hoped!
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S T R A F O R
GLOBAL INTELLIGENCE
China: 80 Percent Of Iraq’s Debt To Be Forgiven
November 10, 2009
China plans to forgive 80 percent of Iraq’s debt of $8.47 billion, and Iraqi and Chinese officials will sign a final agreement on the deal in December, Iraqi Finance Ministry officials said Nov. 10, Reuters reported.
Atta Khalil says:
October 11, 2009 at 6:08 am
5. Upon the first phase, Iraqi Central Bank will withdraw high denomination of 25000 within a shorter period.
There you have it then confermation or fears that Iraq will stub the new Currency we are holding how many of you hold 25000?
Not worth much if there fizzled out in time, but how long will this time be.
Guaranteed the time you get will not be enough for most of us.
Atta Khalil says:
October 11, 2009 at 6:08 am
6. The value will gradually appreciate and may reach up to .04 within one year and by this time the Central Bank again will revaluate to .05 to .06 cents and will withdraw the denomination of 10,000 and 5,000 within a specific timeframe.
Same as above realy fizled out unless you cash them all in for first
Reval.
Steve
Iraq Was Not a War for Oil
But the oil fields are the nation’s best hope for recovery.
By Christopher Hitchens
Christopher Hitchens is a columnist for Vanity Fair and the Roger S. Mertz media fellow at the Hoover Institution.
Article URL: http://www.slate.com/id/2238464/
You Welcome.
Henry
Great post! I want to know when you update your blog, where can i subscribe to your blog keep the good job going.
To PLC programming
Any one can do the research on google about IRAQ. All I do is pass on
my finds with Darrens group.
Thanks,
Henry
I think this blog is really useful and informative. Please keep up the good work it is great to read content on a blog that is not just self obsessed nonsense. I hope I can develop a blog of this standard eventually, although I must admit I find blogging very time consuming and difficult. I wish someone would write a blog on how to produce a really interesting blog like this one.Moore is very interesting. I was first introduced to him through his introduction.
Thank you for expressing your views. That article got me thinking. Wonderful article. A great find.What a great article. Thanks for sharing. Thank you for the wonderful article.
If you ask me, realizing this is a gamble in the beginning, I am up to here with all the positive negetive, negetive positive, taking out 0s’, not taking out 0s’, etc., I’m beginning to feel scammed I mean it didn’t take Kuwait this long for their Government to get organized and get on with the program. I am sorry but I am a little uneasy about what I spend to help by investing what I did.. Please someone tell some defenate and or positive something about the Dinar future. Are they going to force a time limit to cash in the 25000.00 dinars when a revalue of maybe just a penny take place? I mean is this what I reading? Someone? anyone? Steve?
I hope you have write a good article related to this topic with comparing to other blogs, certainly I was read some other blog then your blog was great than other. Best wishes for future.
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I don’t think the American Generals will let Iraq RV before they have their troops mostly out of Iraq. That is what I am watching for. They have been able to afford the RV for some time and it would be great for the standing government and the people of Iraq. Why has it not been done then. Iraq is still an occupied country.