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how do you recover from 100,500% inflation?
here ya go....Zimbabwe currency tumbles to record low
A single American dollar buys 25 million Zimbabwe dollars, currency dealers say.
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HARARE, Zimbabwe (AP) -- The Zimbabwe currency tumbled to a record low of 25 million for a single U.S. dollar Wednesday, currency dealers said.
With Zimbabwe dollars mostly available in bundles of 100,000 and 200,000 notes, one $100 note bought nearly 20 kilograms (40 pounds) of local notes at the new market rate Wednesday.
Currency dealers said uncertainties ahead of elections scheduled for March 29 and the world's highest inflation of 100,500% led holders of hard currency to hang on to their money at the same time as the state central bank pumped more local cash into the market for election costs.
The price of the U.S. currency was also pushed up by the central bank's buying on the unofficial market to pay for power, gasoline and vehicle imports ahead of the polling, said one black market dealer who could not be identified out of fear of reprisals.
Dollar hovers near all-time lows
In the economic meltdown, the black market exchange rate for the U.S. dollar broke the 1 million Zimbabwe dollar mark for the first time in late October.
The value of the Zimbabwe dollar weakened steadily against hard currencies throughout last year but its fall quickened dramatically in recent weeks, the dealer said.
With industry and production collapsing, Zimbabweans have become heavily dependent on imports of the corn meal staple and basic goods. Until last year, the former regional breadbasket was self sufficient in canned and processed foods, household goods, soap, toothpaste, toiletries and other items now imported from neighbors Malawi, South Africa and Zambia and from as far afield as Egypt, Germany, Iran and Malaysia.
According to latest official poverty line data, an average family of five needs a monthly income of $35 to survive while remaining in poverty.
But most general hands and other lower paid workers earn less than the equivalent of $10 a month in an economy also suffering record formal sector unemployment of 80%.
Dollar teases near all-time low vs. euro
Dollar: It will only get worse
Discuss the long-standing convention between Iraq and America
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The formation of committees to discuss the long-standing convention between Iraq and America Printer Send to a Friend
PUKmediaليلى الشمري/ بغداد 17:36:44 2008-03-05 PUKmedia Laila Al Shammari / Baghdad 17:36:44 2008-03-05
أيل . Said a spokeswoman for the American embassy in Iraq Mirembe Natnungu that the American and Iraqi sides in connection with the formation of committees to negotiate, which will discuss the functions of foundations and frameworks Assembly of the Convention on friendship and long-term cooperation to be signed between the two governments.
يون وممثلفة. The spokeswoman for the American Embassy that the agreement will be announced at the American Iraqi time, and acknowledge the Iraqis and their representatives in Parliament to discuss the details of its dimensions, it is very important not only for Iraqis but for the American people and his government, which signed similar agreements with different countries.
وألن". Natnungu pointed out that the Iraqi Prime Minister Nuri al-Maliki had announced late last year the text of an agreement of intent Iraqi American who would reach around the negotiations between the two countries to hold a strategic agreement, the sources pointed out that the agreement contains three chapters, the first regard to the areas of political, diplomatic and cultural stating "Support States Nations to the Iraqi Government in the protection of the democratic system in Iraq Alaktaralti faces internally and externally and to stand firmly to any attempt to disable or suspend Auszaozh and support the efforts of the Iraqi government in its quest to achieve national reconciliation and the promotion of political efforts to find a positive relations between countries of the region and the world at the service of common objectives for all parties concerned and enhancing the region's security, stability and prosperity of their peoples. " امر". Chapter II, it is an economic and includes "support for the advancement of Iraq in various economic fields and the development of productive capacities and assist in the transition to a market economy, facilitate and encourage the flow of foreign investments, particularly America to Iraq to contribute to the construction and reconstruction."
خار". The third chapter security situation and refers to "provide security assurances and commitments to the Iraqi Government to deter any external aggression aimed at Iraq and violates the sovereignty and territorial integrity Aumiaha Aoegwaeh and support the Iraqi government in training and equipping and arming of the Iraqi armed forces to enable them to protect Iraq."
ا. Mirambe said in a statement to Al pukmedia today, Wednesday, that "there are many details that must be resolved before signing the agreement, especially regarding the security aspect, which requires American forces to a new legal framework governing the presence here in Iraq, along with the need to define the powers of these troops Following the exit Iraq at the end of this year from the United Nations trusteeship and international supervision under section VII, and thereby become an independent, sovereign state under international covenants, it is entitled to establish normal relations and bilateral with all countries of the world including the United States of America ", according to her.
وأضقة Natnungu He added that "the agreement would be the dimensions of political, economic and security and will create conditions to the Government and allow Washington to continue supporting the Iraqi government and its security organs in the face of those who threaten security and stability in Iraq and contribute to the protection of democratic experience, as well as to revive its economy and configuring all the requirements necessary for the advancement of its institutions government, asserting that thinking on both sides in the form of the relationship
http://64.233.179.104/translate_c?hl...0%26Itemid%3D4
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Good point, makes sense with all the news lately
thx man
Sure, I would settle too baby...pump that oil!!!
Krg's Budget Approved FINALLY SETTLED AT 17% GEEZ
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Wednesday, 05 March 2008, 03:13 EST
KRG's budget approved
http://www.kurdishglobe.net/servlet/...FC1F 9A181828
Kurdistan National Assembly-Iraq
By Aiyob Mawloodi
The Kurdish Globe
Of the $7.7 billion budget, $2 billion is allocated for investment.
The Kurdistan Regional Government (KRG) Ministerial Council formally approved the region's 2008 budget on Tuesday, February 26, and forwarded it to Parliament for final approval and recommendations to the KRG for its implementation. This comes after the Iraqi Council of Representatives approved the country's budget for this year after a long period of arguments regarding Kurdistan Region's share and the presidential budget. Though some political groups inside the Iraqi Council of Representatives were against the region's 17% share and sought to reduce it to 13-14%, after three months of efforts by the Parliament's Kurdistan Alliance list, Parliament approved the 17% without any change. However, according to Rashid Tahir, KRG Deputy Minister of Finance, this portion might not remain the same next year since a new census is to be conducted by December 31 and the regions' budgets will be reallocated according to population counts.
Tahir says that his government has only received 12.7% this year and 13% last year.
"This 17% is only written on paper but not received by the KRG, since the presidential budget is deducted from it before it is divided between the regions and provinces," Tahir says.
The budget is estimated to be $7.7 billion, though the central government has allocated $6.4 billion for the region out of its 2008 budget, which is $1.3 billion less, and this could result in a budget deficit for the KRG. Despite the risk of running this large deficit, the KRG still doesn't have any specific plans to avoid or recover from it. They say they could solve the problem through increasing oil revenues, since in this year's budget it is assumed that oil prices would be $58 per barrel and Iraq would be exporting 2.1 million barrels per day. In reality, the price of one barrel of Iraq's oil is around $80 and the export of oil is now at more than 2.1 million barrels a day. Thus, revenue is expected to be much higher than estimated.
Of this year's budget, $2 billion is allocated for the region's investment, and the remaining, which is the largest portion, is to go to the operational budget. The government has tried to reduce the operational budget, which is greatly spent on public employee wages and ministry budgets. One step is reducing the number of KRG ministries from 40 to 18, plus three state ministries. This, according to the government, will help to reduce the ministry budgets and make them work more efficiently and spend less on projects.
According to Osman Shwani, the KRG Minister of Planning, in this year's investment budget, the priority is given to electricity, other municipalities, housing, education, agriculture, irrigation, and health. However, he says that the operational budget gives the priority to education, then municipality and health.
The KRG spends part of its annual budget on Article 140 areas, such as Kirkuk; but according to Mohammed Qaradaghi, Ministerial Council Secretary, it couldn't be mentioned in the budget since those areas are not formally part of the region.
Israel can deal with Iran: HERE WE GOOOOO BOOOOOM
PMPublished: Wednesday, 5 March, 2008, 01:59 AM Doha Time
JERUSALEM: Israel has the necessary might and power to defend itself against any threat from arch-foe Iran, Prime Minister Ehud Olmert said yesterday.
“Israel certainly considers itself menaced by Iran,†he said. “Israel possesses the might and the power to defend itself against any threat.â€
The premier also said that more sanctions should be imposed on Tehran to stop it from acquiring nuclear capabilities.
“I think that additional measures should be taken. What type of measures? Those who should apply them should decide on them.â€
Israel considers Iran its top enemy following repeated calls by President Mahmoud Ahmadinejad for the Jewish state to be wiped off the map.
Widely considered to be the Middle East’s sole if undeclared nuclear power, Israel and its main ally Washington suspect Tehran of trying to develop atomic arms under the guise of its nuclear programme.–AFP
Top U.S. admiral meets former Iraqi army officers
05 March 2008 (Azzaman)
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Admiral Mike Mullen, chairman of Joint Chiefs of Staff, has made a surprise visit to the Sunni city of Huwaija and met former army officers, senior Iraqi police officer said.
Colonel Fattah Abdullah said the admiral spent two hours in the city and held further meetings with its chief administrator and tribal leaders who have raised militias to support U.S. effort against al-Qaeda.
Huwaija once supplied the former Iraqi army with huge numbers of commissioned and non-commissioned officers. Many of them held influential posts in the Republican Guards, Saddam Hussein’s elite force.
Abdullah gave no details on content of the discussions Mullen had with the officers but the U.S. military in Iraq is giving growing attention to Sunnis who led the insurgency in the country.
The U.S. has raised a militia force 6,500 armed tribal men in Huwaija. Residents say the city has never been as quiet as it is now in the years since the U.S. invasion of 2003.
Mullen even had a tour of the city streets and shopping malls and exchanged greetings and discussions with residents.
“My tour is evidence of the improvement in security situation in Huwaija,” he was reported as saying.
Huwaija was one of the major strongholds of resistance and a bastion of Qaeda in the past.
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lol could be nothing though..been years already so be positive I guess and look forward to that day whenever it is
copied from anthr room.....interesting hmmm
There are a few connections that are interesting around the 3/18-20 2008 date that don't seem to be mentioned, but if it has, my apologies.
1) GW gives an annual address regarding the state of Iraq each year on the anniversary of the war 3/19
2) The Oil (tenders?) were requested by 2/18 - due to be answered on 3/18
3) The GOI parliment (congress, whatever they are called) are due back from vacation on 3/18 or 19
4) The Rafidain Bank in London has called for documents by creditors in January - all due in for a meeting on 3/18......
They will be meeting again on 3/20 to finalize. The exchange rate they will be paid off in is Dinar 0.30 to $1.00 US. It is the same rate as the accounts were seized at in 1991. You can find it in the Scheme of Arrangement documentation. The exchange rate is listed in appendix 5 - currency conversion Table.
http://www.rafidainbank.co.uk/Default.aspx
It would seem reasonable that they would set the exchange rate to be the same for everyone if they are announcing that rate with an effective date of 3/19/08 with the intention of clearing debt to Rafidain creditors
he'll get a missile soon...just like Chavez,,punk
Slight drop in demand for dollar
Baghdad - Voices of Iraq
Wednesday , 05 /03 /2008 Time 5:41:00
Baghdad, Mar 5, (VOI) - Demand for the dollar slightly dropped in the Iraqi Central Bank's auction on Wednesday, registering at $116.880 million compared to $127.250 million on Tuesday.
"The demand hit $16.880 million in cash and $100 million in money transfers outside the country, all covered by the bank at a rate of 1,210 Iraqi dinars per dollar, stable for the 20th session in a row," according to the central bank's daily bulletin and received by Aswat al-Iraq - Voices of Iraq - (VOI).
None of the twelve banks that participated in the auction offered to sell dollars.
Speaking to VOI, Ali al-Yasseri, a trader, said that the general demand for the dollar still high but it is lower compared to the previous session, attributing the high demand for the dollar to the market activity.
The Iraqi Central Bank runs a daily auction from Sunday to Thursday.
Iran still fuels Iraq violence – LA Times
Baghdad - Voices of Iraq
Wednesday , 05 /03 /2008 Time 10:00:35
Baghdad, Mar 5, (VOI) – Los Angeles Times newspaper quoted on Wednesday two "top" U.S. commanders saying that Iran continues to train and direct violent Shiite militias in Iraq and is attempting to permanently weaken the Iraqi government.
“Iran has become the biggest long-term threat to Iraqi stability and is encouraging radical elements among the Shiite population to continue attacks even as some prominent militia leaders push for cease-fires,” said Army Lt. Gen. Raymond T. Odierno, who just completed a 15-month assignment as day-to-day commander in Iraq.
"This is about keeping, in my opinion, a weak government in Iraq," Odierno told reporters at the Pentagon. "I think Iran benefits from that."
Navy Adm. William J. Fallon, commander of all U.S. forces in the Middle East, was more conciliatory during a Senate hearing, saying this week's visit to Baghdad by Iranian President Mahmoud Ahmadinejad was a "mixed bag" because it offered an opportunity for Iraqi leaders to push Iran to take further steps to stop the flow of weapons and bombs into Iraq.
Fallon arrived to Baghdad, on the eve of the Iranian president's visit to Iraq that has been described by the press as "historical."
But, according to the LA Times, pressed by members of the Senate Armed Services Committee, Fallon said there was still evidence that Iran was training militants and providing them with weaponry.
"I have yet to see anything since I've been in this job in the way of a public action by Iran that's been at all helpful in this region and particularly . . . in Iraq," he said.
Most visibly, according to that daily, there has been a sharp decline in sophisticated roadside bombs known as explosively formed penetrators, which American officials allege are manufactured exclusively in Iran.
Also, radical Shiite cleric Muqtada Sadr, the most prominent anti-American leader in Iraq, recently extended a cease-fire by his loyalists despite his close ties to Iran, according to LA Times.
Sayid Muqtada Al-Sadr has announced a freeze on the activities of the Mahdi Army for six months, and an attributed process of evaluation and assessment; then he extended this decsion for another period of six months. Iraqi and U.S. officials considered this issue a crucial step to stabilize security in Iraq, especially Baghdad city.
But Odierno said, as the daily newspaper reported, the importance of Sadr's cease-fire had been overstated and that Iranian operatives had been working to peel off radical elements of Sadr's militia, the Mahdi Army, to continue fighting.
Odierno noted that Ahmadinejad was able to travel the Iraqi roads unaffected by violence during his two-day visit, citing that as evidence that Iran could start and stop Shiite-backed attacks at will.
"Whenever a visitor would come from the United States, we'd either foil a rocket attack or the rocket attack happened," Odierno said. "That's because it was being done by Iranian surrogates. And when the government of Iraq holds a meeting, there tends to be rocket attacks. Why is that? Because it's done by Iranian surrogates."
Odierno, who was recently nominated to become vice chief of staff of the Army, said he agreed with Army Gen. David H. Petraeus, the overall commander in Iraq, that ongoing troop withdrawals should be suspended after July when force levels return to where they were before last year's buildup.
He also suggested that when Petraeus next gives Congress his recommendations for the Iraq campaign, in April, it may be too early to determine whether troop reductions could continue through the end of the year.
MH/SR
Hope this reval happens soon if a dem takes office....
Multipliers and the Mystery of the Magic Money (great read)
Key Economic Concepts:
Banking
Central banking system
Deflation
Inflation
Supply
Tools of the Federal Reserve
Description:
Students learn about the purpose of the reserve requirement, how money is "created" in the economy through fractional reserves, and how the Federal Reserve uses the reserve requirement and loans to correct economic instability.
Lesson Objectives:
Students will:
Define inflation and explain the role that the quantity of money plays in inflation rates.
Explain the purpose of the reserve requirement.
Calculate the money multiplier.
Calculate the potential money creation from a deposit, given the multiplier.
Evaluate what the Federal Reserve should do to the reserve requirement to correct inflation or recession.
Introduction:
In Yugoslavia “between October 1, 1993 and January 24, 1995 prices increased by 5 quadrillion percent. This number is a 5 with 15 zeroes after it.” (Thayer Watkins, Professor of Economics at San Jose State University).
The uncontrolled creation of money causes a quick decrease in the value of currency and very rapid hyperinflation (in annual price increases of hundreds or thousands of percent), which can destroy an economy. The United States central bank--the Federal Reserve--can protect against such a calamity by controlling the supply of money. One technique the Federal Reserve uses for controlling how fast (or how slow) the money supply can grow is through a reserve requirement for bank deposits. By making changes in that reserve requirement, the Fed can “create” or “destroy” money in an attempt to prevent hyper inflation or correct serious instability in the economy. The Federal Reserve also has two other primary tools of monetary policy, the discount rate and open market operations, through which it can control the money supply.
Resources:
"Episodes of Hyperinflation" http://www.sjsu.edu/faculty/watkins/hyper.htm
This San Jose State University Economics Department site describes the effects of uncontrolled growth of the money supply on hyperinflation in several nations in history.
"Determination of the Money Supply/Stock" http://www.digitaleconomist.com/ms_4020.html
This Digital Economist Website offers an interactive table which allows students to determine the size of initial deposit and the reserve requirement, to calculate the growth of the money supply.
"The Federal Reserve Board: Monetary Policy" http://www.federalreserve.gov/policy.htm
"Interactive Activity" http://www.econedlink.org/lessons/em348/em348_popupActivity.html
Process:
Read the account of Yugoslavian hyperinflation at this website:
http://www.sjsu.edu/faculty/watkins/hyper.htm
Although the Yugoslav economic crisis was largely caused by the physical printing of money, the uncontrolled creation of money by any means can have a devastating effect on an economy. The U.S. Federal Reserve System was created in 1913 with a primary purpose of controlling the US money supply and the value of money.
The reserve requirement is one of the most important tools the Fed uses to control the money supply. Under the reserve requirement, banks are required to hold a percentage of their deposits on account with the Fed or in their own vaults. Banks are prohibited from lending this money out to customers. In this way, the Fed puts a limit on the growth of the money supply. The Monetary Control Act of 1980 allows the Fed to set the reserve requirement at 8-14% of deposits, based on economic conditions. The reserve requirement as of February 2002 was 10% of deposits.
“Magic money” is able to grow from our fractional reserve system because money deposited at the bank is largely loaned back out to other customers. The reserve requirement places a limit on the bank’s ability to do so. For example, if Tamika enters town with $1,000 to deposit into the local bank, the bank’s actual reserves increase by $1,000. Because of the reserve requirement, those reserves will be divided into two separate funds: required reserves, which the bank must hold, and excess reserves, which the bank can lend to other customers. If the Fed sets the reserve requirement at 10 percent, the bank is required to hold on to $100 of Tamika’s deposit, and it can then lend the remaining $900 to another customer. If that customer uses the money to buy something from Mariluz, who then deposits that money back into the bank, the money supply grows to $1,900. This “magic money” is created because the some of the same dollars are being used twice: Tamika holds papers saying that she has $1,000 in her bank account, and Mariluz holds papers saying that she has $900 in her bank account. What will the bank do with Mariluz’s $900? In accordance to the 10 percent reserve requirement, the bank must hold $90 and is free to lend the remaining $810 to another customer. This process can continue until the last penny has been loaned.
Go to the website: http://www.digitaleconomist.com/ms_4020.html
Scroll to the bottom of the page, where you will find an interactive table -- the money multiplier.
In the box “Initial Change in Reserve”, type “$1,000”. The box “Reserve Requirement” already reflects the 10 percent reserve requirement discussed above.
Click on “Money Creation” and watch the money supply increase in the column to the right, as excess reserves are loaned and re-loaned repeatedly.
How large will the money supply grow, if all excess reserves are loaned out and all loaned funds are redeposited into the bank? We can calculate the growth of the money supply by first calculating the money multiplier. The formula for calculating the money multiplier is:
Money Multiplier = 1 / Reserve Requirement
Reserve Requirement Money Multipler
10% 1/.10 or 10
25% 1/.25 or 4
To determine how much the money supply can potentially grow from an initial deposit, use this formula:
Potential Money Creation = Money Multiplier x Initial Deposit
Deposit Reserve Requirement Money Multipler Potential Money Creation
$1000 10% 10 10 x $1000
or $10000
$1000 25% 4 4 x $1000
or $4000
Using this same table, you can see why a reserve requirement is so important to controlling the money supply. Change the reserve requirement to 1 percent (.01), and see how dramatically the money supply increases from the initial deposit. If the reserve requirement were reduced to zero, the money supply would grow infinitely, and the value of the dollar would fall to virtually zero.
In addition to placing a limit on money creation, the Federal Reserve can make changes in the reserve requirement to try to correct problems of inflation or recession in the economy. If the economy were starting to experience serious inflation, the Federal Reserve could increase the reserve requirement, limiting the banks’ ability to lend funds and reducing the money supply. The reduced money supply would increase interest rates, making consumers and firms less likely to want to borrow funds, thereby reducing their demand for products and slowing down the economy. To see how this would work, remember that with a 10 percent reserve requirement, $10,000 could be created from an initial $1,000 deposit. Now use the interactive table to increase the reserve requirement to 12 percent. At that rate, only $8,333.33 can be created from that same deposit. The Fed can also reduce the reserve requirement to increase the money supply in the event of a recession, lowering interest rates and enticing consumers and firms to borrow more, to increase their spending. But because the reserve requirement is so powerful, the Federal Reserve Board of Governors only makes changes in the reserve requirement in case of serious economic problems.
As precise as use of the reserve requirement may seem, several factors limit its effectiveness in correcting economic problems. During a recession, reducing the reserve requirement only allows banks to make more loans available; the Fed cannot force banks to lend the money nor force consumers to take out loans. In addition, those who receive the loaned funds may choose not to redeposit those funds, holding them in cash instead. Also, money may leave the country through the purchase of imports or foreign investments, and money may enter the country through foreign purchases of our exports or investment in American assets.
Although its effectiveness may be limited by several factors, the reserve requirement remains the most powerful single tool in the Federal Reserve’s arsenal to combat economic instability. More importantly, the reserve requirement stands as one important protection against the hyperinflation that has seriously crippled economies around the world.
Conclusion:
Because of the potential for hyperinflation, the Federal Reserve uses reserve requirements to limit the growth of the money supply. If the Board of Governors sees inflation as a serious economic problem, the reserve requirement can be increased to further limit the ability of banks to make loans and create money. The Fed can also reduce the reserve requirement, to make more money available to stimulate the economy during a recession. While some factors limit its effectiveness, the reserve requirement remains a very powerful tool of the Federal Reserve.
Evaluation Activity:
For extra practice in calculating the federal reserve requirements, money multipliers, and evaluating what the Federal Reserve should do to the reserve requirement to correct inflation or recession complete the following activity.
If the reserve requirement is 20 percent and a $1,000 deposit is made in the bank, how many dollars of the deposit must the bank hold in required reserves? [$200]
If the reserve requirement is 20 percent and a $1,000 deposit is made in the bank, how many dollars of the deposit can the bank lend back out to a customer? [$800]
If the reserve requirement is 20 percent and a $1,000 deposit is made in the bank,what is the multiplier? [5]
If the reserve requirement is 20 percent and a $1,000 deposit is made in the bank, how much money potentially can be created from the initial deposit? [$5,000]
If the reserve requirement is 5 percent and a $1,000 deposit is made in the bank, how many dollars of the deposit must the bank hold in cash? [$50]
If the reserve requirement is 5 percent and a $1,000 deposit is made in the bank, how many dollars of the deposit can the bank lend back out to a customer? [$950]
If the reserve requirement is 5 percent and a $1,000 deposit is made in the bank, what is the multiplier? [20]
If the reserve requirement is 5 percent and a $1,000 deposit is made in the bank, how much money potentially can be created from the initial deposit? [$20,000]
If the Fed is trying to reduce the inflation rate, should the Fed increase or decrease the money supply? [Decrease]
If the Fed is trying to reduce the inflation rate, should the Fed increase or decrease the reserve requirement? [Increase]
If the Fed is trying to reduce the inflation rate, will this policy result in higher or lower interest rates? [Higher]
If the Fed is trying to reduce the inflation rate, will this policy lead consumers and firms to borrow more or less? [Less]
If the Fed is trying to reduce the inflation rate, will this borrowing change lead consumers and firms to buy more or less? [Less]
Prolly stuffing their turbins with the stuff...lmao
copied post regarding M2 any thoughts?
Today's CBI Auction makes 24 trillion NID
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Today's CBI auction makes the total of 24,090,049,483,000 NID purchased by the CBI at auction since January 1, 2007.....for whatever it's worth.
Them's alot o' clams.
Dana gas supply to Iraq Kurds from mid-2008Published: Wednesday, 5 March, 2008, 06:53 AM Doha Time
DUBAI: UAE-based Dana Gas will begin supplying gas to the Kurdish region from a field in northern Iraq by mid-year, six months later than first planned, Dana has said.
The start-up is later than initially scheduled because the power station that the gas will fuel has yet to be completed.
Dana has boosted investment in the project to push forward with a second phase of supply from the field which will double output to 300mn cubic feet per day of gas by early 2009.
Dana’s estimate for total investment in the project has risen to $650mn including the second phase, up from the $400mn investment Dana said last year that the first phase of the project would require. Investments are split equally between Dana Gas and its affiliate Crescent Petroleum.
Iraq’s central government has criticised deals that international energy companies have struck with the semi-autonomous Kurdish regional government (KRG), calling them illegal. The KRG, which has clashed with Baghdad over draft oil legislation, has countered that the deals are legal and comply with Iraq’s constitution.
The deals that have come under most fire from Baghdad are production sharing agreements (PSAs) that give international companies a share of oil produced. Dana’s deal differs from those as it is a service contract carried out for a set fee.
Dana said that its investment was the largest single private sector investment in Iraq since 2003, when the US led an invasion of the country.
Dana won a service contract from the regional authority in April 2007 for the rapid installation of processing and transmission facilities at the Khor Mor field to begin supplying gas for power generation by January 2008.
The project also required the construction of a 180km (111 miles) of pipelines for the gas.
“The entire project is on track for first gas supply of 150mn cubic feet of gas per day by middle of this year, rising to 300mn cubic feet by early 2009,†Dana said. The project is 70% complete, it added.
The gas is to supply two power plants with capacity to generate 1,250MW of power under construction near the cities of Arbil and Sulaimaniya. The gas project would save the KRG some $2bn a year that would otherwise have to be spent to import liquid fuels for power generation, Dana said in a statement.
“We are very pleased with the rapid progress of this important project which will benefit not only the people of the Kurdistan region but contribute to affordable electricity for the whole of Iraq,†KRG Prime Minister Nechirvan Barzani, said in the statement.
The Khor Mor field was shut after the first Gulf War in 1991. Dana is also appraising the Chemchemal field.
When Dana won the service contract, it also signed an agreement with the KRG to evaluate development of the region’s gas reserves. That deal may eventually lead to the semi-autonomous region in northern Iraq exporting gas to neighbouring countries.
Dana and the government were also drawing up plans for a large gas-fed industrial complex, to be named Kurdistan Gas City, which may include petrochemical, metals and other heavy industry plants. – Reuters
3.5 million bpd would be exported
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Oil firms line up for contracts in Iraq
115 registered to offer extraction and services
BAGHDAD–More than 100 companies including foreign majors are vying for deals to tap Iraq's vast oilfields, but a vital oil law is stalled by tension involving the Kurdish region, Baghdad's oil minister said yesterday.
Hussain al-Shahristani said 115 companies had registered to compete for oil extraction and service contracts to help develop Iraq's oil reserves, the world's third-largest.
Of these, 10 are American, with companies also from Japan, Russia, Britain, Canada and South Korea.
Shahristani said Iraq was close to finishing negotiations with several oil majors for two-year technical support contracts that hopefully would be signed in March.
Those majors include Royal Dutch Shell, BP, Exxon Mobil Corp, Total and Chevron Corp., he said.
Iraq currently exploits only a fraction of its reserves, among the cheapest to produce in the world, and international oil companies have been positioning for years to gain access.
Shahristani said the fields up for grabs under the contracts included Iraq's giant fields in the south along with Kirkuk in the north. He said the qualified companies would be announced in March.
"From announcing the qualified companies to the signing of the contracts will take a minimum one and a half or two years, but we will try to make it within a year," he said.
Shahristani said he hoped the technical support contracts would add 500,000 barrels per day of oil to Iraq's output in a year.
"We are negotiating with these five companies. We are at the end of the negotiations," Shahristani said, referring to the five majors.
"They will study the fields with us, we will put together a plan to boost production, they will help us to select the equipment and deliver this equipment to us."
Iraq produces about 2.5 million barrels of oil a day, dwarfed by its 115 billion barrels of proven crude oil reserves. Only those of Saudi Arabia and Iran are larger.
One oil official said last year that Iraq's oil sector could need as much as $75 billion (U.S.) in investment.
The extraction and service contracts should add 1.5 million bpd to output once they were in place, Shahristani added.
Combined with the additional flows from the technical support contracts, Iraq's output would hopefully rise to 4.5 million bpd in five years, he said. Of this total, 3.5 million bpd would be exported and the rest kept for domestic use.
Shahristani said technical support contracts did not entitle companies to any share in production.
"The benefit is that they will show interest in co-operating with Iraq and supporting us technically. They will have knowledge of the parameters of the fields and then they can ... make us an offer which is better than others," he said.
The service and extraction contracts are also seen as a stop-gap until a crucial oil law is passed, and will not provide the long-term involvement big oil companies crave.
But the draft law remains stalled in parliament.
Yesterday, Addax Petroleum Corp. of Calgary said it had signed a deal with the Kurdistan regional government in Iraq that amends a production-sharing contract with Genel Enerji to bring the Taq Taq project into line with the region's oil and gas law, including royalties, cost recovery and profit sharing.
Shahristani said he believed a major obstacle to Iraq's oil law passing would be the signing of oil deals between the government in the largely autonomous Kurdistan region and smaller foreign energy firms. Those firms, he said, would be prohibited from competing in central government deals.
With files from The Canadian Press
This is why all this oil news is sooooo important...it is to be the "anchor for the economy"....great read
Iraqi cabinet gives green light to oil ministry to sign oil deals
The Associated PressPublished: March 5, 2008
BAGHDAD: Iraq's cabinet has given the green light to the Oil Ministry to sign agreements with international oil companies to help increase the nation's crude output, a ministry official said Wednesday.
The two-year deals, known as technical support agreements, or TSAs, are designed to develop five producing fields to add 500,000 barrels per day to the country's current 2.4 million barrels per day output.
Last December, Royal Dutch Shell PLC (RDSB), BP PLC (BP), ExxonMobil Corp. (XOM) and Chevron Corp. (CVX) submitted technical and financial proposals for the five oil fields and received counterproposals from the Iraqi side.
In January, representatives from the companies and from Iraq met again in Amman, Jordan, and they will hold the third round of discussions later this month, said the official, who spoke on condition of anonymity as he was not authorized to release information.
In Vienna, Iraq's Oil Minister Hussein al-Shahristani said that Iraq intends to compensate these companies with crude oil rather than in cash, the Dow Jones Newswires reported on Wednesday.
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Speaking to reporters as he arrived for a meeting of the Organization of Petroleum Exporting Countries, al-Shahristani said the Oil Ministry was still working on the compensation details with the Development Fund of Iraq, controlled by the U.S. and the U.N.
According to the Oil Ministry official, BP will submit a proposal for the Rumaila oil field, Chevron for West Qurna stage 1, Exxon for Zubair, and Shell for Missan and Kirkuk.
Iraq's average production was 2.4 million barrels per day in January while exports stood at an average of 1.92 million barrels per day. December's exports averaged 1.81 million barrels per day.
In dire need of expertise from international oil companies to achieve the Oil Ministry's target of 3 million barrels per day by the end of 2008, Iraq has been relying on a Saddam Hussein-era natural resources law until Parliament approves a new oil law to regulate the international oil companies' work and share Iraq's oil resources among the country's Shiites, Sunni Arabs and Kurds.
More than 70 international firms met the ministry's deadline of Feb. 18 to compete for tenders to help develop Iraq's oil reserves, seen as vital to providing the funds to rebuild the shattered country.
Iraq has not said what fields it will tender, or on what terms, but the service and extraction contracts on offer are seen as a stopgap until the oil law is passed, and will not provide the long-term involvement big oil companies want.
Terms of Use
Interesting excerps from UN...old but creeping up now!!!!! http://www.escwa.org.lb/information/publications/edit/upload/sdpd-03-9.pdf
(a) Establishing a financial anchor
There is a need to establish an adequate stabilization fund to back up a stable financial anchor (a stable
Iraqi Dinar) to underpin all immediate and future transactions. Resources for this fund should come
immediately from the international community and institutions particularly the IMF and Arab Monetary
Fund (AMF) and the full oil resources of Iraq could symbolically be declared as the back up of the Dinar. At
one time Germany declared in 1923 that the full resources of Germany would back the Deutsche Mark after
the hyperinflation period. This symbolic declaration worked well for Germany and there are certainly valid
reasons as to why it should work in Iraq.7
At present, the asset value of the proven Iraqi oil reserves are put at 112 billion barrels, which at
US$ 20 per barrel would exceed US$ 2.2 trillion. There are estimates that put the unofficial magnitude of the
oil reserves of Iraq at probably twice this value.8 The stabilization fund, if it works well and quickly, could
help eliminate inflation without the recourse to high interest rates, which have often derailed economic
7 See David Hackett Fischer, ‘The Great Wave’, (Oxford: 1996), pp. 192-193. Paul Kennedy, ‘The Rise and Fall of the Great
Powers’, (London: 1989, pp. 357-373, and D. H. Aldcroft, ‘From Versailles to Wall Street’, (New York: 1977), chapters 1 and 2.
8 According to present estimates, Iraq’s reserves stand at between 112 to 220 billions barrels, placing the country right after
Saudi Arabia, and its present production of near 3 millions barrels per day (b/d) could be “easily” increased to 6 millions b/d within
three to four years. Mr. Elias Sarkis, Editor of the “Arab Oil and Gas Magazine”, 2 October 2003.
23
recovery. It can also create the conducive macroeconomic environment for attracting foreign investment and
the repatriation of Iraqi savings abroad.
The high inflation rates in the 1980s and 1990s triggered by the depreciation of the Iraqi Dinar and the
high deficits financed by printing money wrecked the savings of Iraqis and ultimately contributed to driving
away the talented people of Iraq that formed the backbone of the Iraqi middle class. Stabilizing the currency
and eliminating inflation are critical first steps. The fixed exchange regime that would ensue is not without
cost. It may deny the economy the flexibility that would absorb external shocks and give Iraqi exports the
elasticity they may require. This may come later. At present with limited export potential in non-oil products
and the economy is heavily indebted, it does not make sense to expose the economy to the vagaries of the
international financial system when no advantages can be expected from either the current account or from
the full consideration of the entire balance of payment.
(e) Monetary and banking issues
Some of the issues that Iraq will face to establish a sound and dynamic monetary and banking system
are outlined below:
(i) The new system should not be based on a dual currency system like in Lebanon or Argentina,
with the dollar and the Iraqi dinar being both used as legal tender. This is distorting the economy
and encouraging speculation against the domestic currency. Given the flow of oil resources, the
Iraqi dinar should be reinstated as a strong currency and to create a new “heavy” dinar whose rate
should be around 15 dinars to one dollar;
(ii) If the independence of the Central bank is a highly desirable aim, such independence should not
be conducive to deflationary policies that might prevent economic growth and dynamism as has
happened in various countries;
(iii) For several years to come, Iraq will face a difficult period of adjustment and its foreign exchange
needs will be quite substantial. To face this challenge, the monetary and banking system should
not be a burden on the Iraqi economy as has been the case in Lebanon and Argentina;
a. The banking sector should be oriented towards financing productive activities and not only
trade and real estate transactions. Inspiration could be found in South East Asian experiences
on how to stimulate the local productive capacity and export oriented industries;
b. Micro-credits should be made available to the poor strata of the population and capital
venture funds to professionals that would like to create new productive capacity in the
country based on their own knowledge and capacity.
(iv) A new banking law should be adopted as soon as legal conditions will allow it and training of
Central bank officials for banking supervision should begin as soon as possible. Foreign banks
should be allowed to create branches or affiliates in Iraq.
Iraqi Cabinet Gives OK To Oil Ministry To Sign Oil Deals
Wednesday, Mar 05, 2008
BAGHDAD (AP)--Iraq's cabinet has given the green light to the Oil MinistryOil MinistryMinistry of Oil - Iraq
News | Profile | Officers » Research
to sign agreements with international oil companies to help increase the nation's crude output, a ministry official said Wednesday.
The two-year deals, known as technical support agreements, or TSAs, are designed to develop five producing fields to add 500,000 barrels per day to the country's current 2.4 million barrels per day output.
Last December, Royal Dutch Shell PLC (RDSB)Royal Dutch Shell PLC (RDSB)Royal Dutch Shell Group
News | Profile | Officers
, BPBP PLC (BPBP), ExxonMobil Corp. (XOM)ExxonMobil Corp. (XOM)ExxonMobil Corporation - UAE
News | Profile | Officers » Disclosures
and ChevronChevronChevron Corporation
News | Profile | Officers
Corp. (CVX) submitted technical and financial proposals for the five oil fields and received counterproposals from the Iraqi side.
In January, representatives from the companies and from Iraq met again in Amman, Jordan, and they will hold the third round of discussions later this month, said the official, who spoke on condition of anonymity as he was not authorized to release information.
In Vienna, Iraq's Oil Minister Hussein al-Shahristani said that Iraq intends to compensate these companies with crude oil rather than in cash, Dow Jones Newswires reported.
Speaking to reporters as he arrived for a meeting of the Organization of Petroleum Exporting Countries, al-Shahristani said the Oil MinistryOil MinistryMinistry of Oil - Iraq
News | Profile | Officers » Research
was still working on the compensation details with the Development Fund of Iraq, controlled by the U.S. and the U.N.
The Oil MinistryOil MinistryMinistry of Oil - Iraq
News | Profile | Officers » Research
official said BPBP will submit a proposal for the Rumaila oil field, ChevronChevronChevron Corporation
News | Profile | Officers
for West Qurna stage 1, ExxonExxon for Zubair, and Shell for Missan and Kirkuk.
Iraq's average crude production was 2.4 million barrels a day in January while exports stood at an average of 1.92 million barrels a day. December's exports averaged 1.81 million barrels per day.
In dire need of expertise from international oil companies to achieve the Oil MinistryOil MinistryMinistry of Oil - Iraq
News | Profile | Officers » Research
's target of 3 million barrels a day oil output by the end of 2008, Iraq has been relying on a Saddam Hussein-era natural resources law until Parliament approves a new oil law to regulate the international oil companies' work and share Iraq's oil resources among the country's Shiites, Sunni Arabs and Kurds.
More than 70 international firms met the ministry's deadline of Feb. 18 to compete for tenders to help develop Iraq's oil reserves, seen as vital to providing the funds to rebuild the shattered country.
Iraq hasn't said what fields it will tender, or on what terms, but the service and extraction contracts on offer are seen as a stopgap until the oil law is passed, and will not provide the long-term involvement big oil companies want.
(END) Dow Jones Newswires
Shackles new .. تنتظر العراق Waiting for Iraq
د. D. محمد عاكف جمال Mehmet Akif Jamal
Monday, 03 March 2008 Monday, 03 March 2008
العام 2008 سيكون فيه بعض المنعطفات الهامة في التأريخ العراقي، المجال يتسع نوعاً ما للحديث عن أبرزها وهو ما تم التمهيد له في مذكرة إعلان المبادىء التي وُقِعت عبر دائرة تلفزيونية مغلقة بين الرئيس الأمريكي ورئيس الوزراء العراقي في نوفمبر من العام المنصرم والتي تفسح المجال لتوقيع إتفاقية قد تكون طويلة الأمد يمنح العراق فيها الولايات المتحدة بعض الإمتيازات على شكل قواعد عسكرية وحقوق في ثرواته النفطية ودور رقابي على السلطة التنفيذية وهيكلة الدولة العراقية بما يتلائم مع ما تسعى الولايات المتحدة إلى فرضه في منطقة الشرق الأوسط. 2008 will be the year in which some important turning points in history, the Iraqi room rather to talk about the most prominent of which was prepared for by the Declaration of Principles in a memorandum signed by over closed-circuit television between President Bush and Iraqi Prime Minister in November last year, which allow for the signing of the Convention may be a long-term give Iraq the United States some concessions in the form of military bases and rights to its oil and the role of the regulatory authority and operational restructuring Iraqi state consistent with what the United States is seeking to impose in the Middle East.
فإعلان المبادىء الذي وقعه الطرفان قد نص على تضمين القضايا السياسية والعسكرية والإقتصادية والأمنية والعلمية والثقافية في جدول الأعمال ولم يستثني أي جانب حيوي له صلة بمستقبل العراق. Declaration of principles signed by both parties stipulated to include issues of political, military, economic, security and scientific and cultural agenda did not exclude any of vital relevance to the future of Iraq.
وهذه الإتفاقية هي البديل المقترح لإخراج العراق من إستحقاقات البند السابع من ميثاق الأمم المتحدة، الذي يضع العراق في صنف الدول التي تهدد السلم والأمن الدوليين، وإعادته إلى الوضع القانوني والدولي الذي كان يتمتع به قبل صدور قرار مجلس الأمن رقم 661 في أغسطس 1990 . The Convention is the alternative proposal to remove Iraq from the benefits item VII of the United Nations Charter, which puts Iraq in the category of States which threaten international peace and security, and returned to the legal status and international, which was obtained by the prior adoption of Security Council resolution No. 661 in August 1990.
سبق للعراق، من موقع الضعف، أن وقع مع بريطانيا معاهدة في عام 1930 لمدة خمس وعشرون سنة أقامت الأخيرة بموجبها قاعدتين جويتين، الأولى في الحبانية والثانية في الشعيبة إضافة إلى حصولها على إمتيازات خاصة في النفط العراقي وربطت الدينار العراقي بالجنيه الإسترليني وربطت العراق بالمنظومة الأمنية البريطانية خصوصاً والمنظومة الأمنية الغربية عموماً، مما أوقعه في إحراجات كثيرة مع الدول العربية ومع دول أخرى غيرها، فأصبح عدواًُ لدولٍ لم يختار عداوتها وصديقاً لآخرين لم يختار صداقتهم. Iraq previously, the site doubled, signed a treaty with Britain in 1930 for a period of twenty-five years which established last two flights, the first in Habbaniyah, and the second at Shuaiba addition to access to special privileges in the Iraqi oil and linked to the Iraqi dinar pound sterling and Iraq linked the British security system especially, and the West in general system security, which pushed the host with many Arab countries and with other countries other, making an enemy of the States did not choose hostility and friend to others not choose friendship.
فقد شهد العراق منذ تأسيسه عام 1920 حتى سقوط النظام الملكي عام 1958 توقيع عدد من المعاهدات غير المتوازنة مع بريطانيا إفتقرت إلى معايير العدالة مما جعلها مرفوضة من قبل معظم فصائل الشعب الواعية، فقد كانت معاهدات بين بلد ضعيف وآخر قوي، بين دولة مهزومة وأخرى منتصرة. Iraq has witnessed since its foundation in 1920 until the fall of the monarchy in 1958 signing of a number of treaties with Britain unbalanced lacked standards of justice which it rejected by most factions people informed, it was a treaty between the weak and another strong-State defeated and the other victorious. كما شهد خلال فترة الحكم السابق توقيع إتفاقيات أخرى مجحفة بحقه منها إتفاقية الجزائر التي وقعها الرئيس العراقي السابق مع شاه إيران عام 1975 تنازل فيها العراق عن نصف شط العرب والإتفاقية مع تركيا والتي سُمح فيها للقوات التركية بالتوغل داخل الأراضي العراقية لمطاردة مقاتلي حزب العمال الكردستاني التركي وإتفاقيات أخرى أقل أهمية مع بعض دول الجوار تتعلق بحقوق العراق في بعض الأراضي. As witnessed during the previous regime signed other conventions such as the Convention against him unfair Algeria signed by the former Iraqi president with the Shah of Iran in 1975 waiver by Iraq on the Shatt al-Arab, half of the agreement with Turkey, which allowed the Turkish forces entered Iraqi territory to hunt down fighters of the PKK and Turkish Conventions Other less important with some neighboring countries concerning the rights of Iraq in some territories.
ولكن الحكومات العراقية في العهد الملكي لم تستطع تمرير جميع تلك التحالفات والمعاهدات بيسر وسهولة فقد أسقط الشارع العراقي في الوثبة الشهيرة عام 1948 معاهدة عُرفت بإسم معاهدة جبر – بيفن أو معاهدة بورتسموث حيث سقط مئات القتلى من المتظاهرين إحتجاجاً على المعاهدة عند محاولتهم عبور الجسر للإلتحام بزملائهم في الجانب الآخر من نهر دجلة، هذا الجسر الذي حمل إسمهم في فترة لاحقة - جسر الشهداء - فإستقالت حكومة صالح جبر وألغيت المعاهدة. But the Iraqi government during the monarchy has been unable to pass all of those alliances and treaties smoothly has scrapped the Iraqi street jump, the famous Treaty in 1948, known as the Treaty of reparation - Beven or treaty Portsmouth, where hundreds were killed demonstrators protesting the treaty when trying to cross the bridge for the docking of their colleagues in the other side of the Tigris river, the bridge which has carried their name in a subsequent period - Bridge martyrs - Fastkalt Saleh Jabr, the Government abolished the treaty. ولم تتمكن حكومة نوري السعيد من إمرار حلف بغداد أو ما يعرف بحلف المعاهدة المركزية (السنتو) في نوفمبر 1955 مع بريطانيا وتركيا وإيران والباكستان إلا عند فرض الأحكام العرفية التي زادت من إحتقانات الشارع السياسي وقربت أجل الحكم الملكي. Government has been unable to pass Said Nuri Baghdad Pact or what's known as the Central Treaty Reay (Alsentu) in November 1955 with Britain, Turkey, Iran and Pakistan only when imposing martial law, which increased the Ahtkanat political street and brought to the royal government.
والآن يجري خلف الكواليس الكثير من الأحاديث حول مستقبل العلاقات الأمريكية العراقية في ضوء مذكرة المبادىء المشار إليها ويتسرب القليل منها إلى العلن. Now being behind the scenes a lot of chatter about the future of Iraqi-American relations in light of the Memorandum of Principles referred to a few of them and escaping to the surface. فاللغة التي يتحدث بها كبار المسؤولين الأمريكيين عن رؤيتهم لمستقبل العلاقات مع العراق تتسم بالغموض إلا أن تصريحاتهم تعكس أبرز ما إتفقوا عليه وهو البقاء الطويل في العراق، هذا على الرغم من أن بعض المسؤولين العراقيين قد أكدوا غير ذلك!!!. The language spoken by senior American officials about their vision for the future of relations with Iraq mysterious but their statements reflect the most agreed upon a long stay in Iraq, this despite the fact that some Iraqi officials have confirmed other!!!.
فهنالك من يتكلم عن معاهدة مع العراق وآخر عن تحالف معه وثالث عن إتفاقية وإياه، إلا أن الإدارة الأمريكية قد حسمت الموقف وأعلنت بوضوح بأنه لن تكون هناك معاهدة أو تحالف فذلك يتطلب موافقة الكونغرس وهو ما تسعى هذه الإدارة إلى الإلتفاف عليه. There is talk of the treaty with Iraq and another alliance with him, and the third on the Convention and him, but the American administration had resolved the situation and clearly stated that there would not be a treaty or alliance That requires congressional approval, which the administration is seeking to circumvent it. فما هو قادم سيكون إتفاقية عسكرية تتضمن تفصيلات عن كل ما يتعلق بنشاط القوات الأمريكية التي ستعسكر في عدد من القواعد في العراق، ولدى الولايات المتحدة ما يقرب من مئة إتفاقية من هذا النوع مع دول العالم، فإبرامها هو من صلاحيات الرئيس الأمريكي بإعتباره القائد العام للقوات المسلحة الأمريكية. What is coming will be a military Convention contains details about everything related to the American forces that actively Staskar in a number of bases in Iraq and the United States nearly a hundred convention of this kind with the nations of the world, Its is the prerogative of President Bush as commander-in-chief of the armed forces America.
ولكن ذلك ليس ما يراه بعض المتخصصين بالقانون في الولايات المتحدة والمطلعين على بواطن الأمور، فالإتفاقية المزمع توقيعها مع العراق ستضم نصاً تتعهد الولايات المتحدة فيه دعم العراق ضد أي خطر خارجي أو داخلي (دعم جمهورية العراق في الدفاع عن نظامها الداخلي ضد التهديدات الداخلية والخارجية/مذكرة المبادىء). But that is not what the law deems some specialists in the United States and insider, the Convention to be signed with Iraq would include a pledge by the United States to support Iraq against any internal or external threat (Support of the Republic of Iraq to defend its rules against internal and external threats / Note Principles). وهم يرون بأن نصاً كهذا فيه قدر كبير من الغموض والغرابة، فالولايات المتحدة ليس لديها إتفاقية مع أية دولة تحتوي على ضمانات من هذا النوع. فما هي التهديدات الداخلية المشار إليها ؟، الحكومة العراقية هي التي قد تتعرض لتهديدات من الداخل كأية حكومة في أي بلد في العالم وهذا شأن داخلي ينبغي أن لا تدس الولايات المتحدة أنفها فيه. They believe that such a letter in which a great deal of ambiguity and strange, the United States does not have an agreement with any State contains safeguards of this type. What are referred to internal threats?, That the Iraqi government might be exposed to threats from within government structures in any country in the the world and this should be an internal matter not poke her nose by the United States.
القوات الأمريكية في اليابان وكوريا الجنوبية غير مسموح لها بإدامة إستقرار الحكومات في هذين البلدين، فهي غير مسؤولة عن مصائرها حين تتعرض لأخطار داخلية. American forces in Japan and South Korea are not allowed to sustaining the stability of governments in those two countries, it is not responsible for their destinies when exposed to the dangers of internal. ففي الواقع سقطت حكومتان في إنقلابات عسكرية في كوريا الجنوبية خلال الخمسين سنة الماضية ولم تحاول القوات الأمريكية التدخل لمنع ذلك، وشهدت تركيا عدة إنقلابات عسكرية خلال نفس الفترة على الرغم من وجود القوات الأمريكية في عدد من القواعد في أراضيها. In fact, two Governments fell in the military coups in South Korea over the past fifty years the American forces did not attempt to intervene to prevent this, Turkey witnessed several military coups during the same period, despite the presence of the American forces in a number of bases in their territories.
أما بالنسبة للتعهد بالدعم ضد الأخطار الخارجية فهو الآخر موضع تساؤلات، فإضافة إلى ما ورد في البند الذي أشرنا إليه هنالك بنداً آخر في مذكرة المبادىء فيه ما فيه من الغموض تتعهد الولايات المتحدة فيه ( توفير ضمانات والتزامات أمنية لجمهورية العراق لمنع أي إعتداء خارجي على العراق ينتهك سيادته وسلامة أراضيه أو مياهه أو مجاله الجوي/مذكرة المبادىء). As for the promised support against external threats is the subject of the other questions, in addition to the information contained in the item to which we referred there another item in the memorandum of principles which is very vague pledges by the United States (to provide security guarantees and obligations of the Republic of Iraq to prevent any external aggression on Iraq violates sovereignty and territorial integrity or waters or airspace / Memorandum of Principles).
فكيف سيكون في قدرة إدارة الرئيس بوش تمرير إتفاقية تحتوي على ضمانات كهذه؟ فذلك مخالف لدستور بلاده الذي يستلزم في حالة كهذه إجماع ثلثا أعضاء مجلس الشيوخ على ذلك كما هو الحال في الإتفاقيات التي عقدتها الولايات المتحدة مع كل من اليابان وكوريا الجنوبية وأستراليا ونيوزيلندا لحماية هذه الدول ضد أي خطر خارجي تتعرض له. How will the ability of the administration of President Bush to pass the Convention contains safeguards such? That is contrary to the Constitution of his country, which would require unanimity in the case of such thirds of the members of the Senate, as was the case in the conventions held by the United States with both Japan and South Korea, Australia and New Zealand to protect these States against any external threat against it.
كان الحصول على إجماع كهذا أمراً ميسوراً أبان حقبة الحرب الباردة، فهل سيكون سهلاً أمام الرئيس بوش تمرير إتفاقية مع العراق فيها هكذا تعهد في هذا الزمن خاصة وإن من يسيطر على الكونغرس بمجلسيه هو الحزب المعارض لسياساته؟. Obtaining such unanimity is accessible during the cold war era, would be easy to pass President Bush's agreement with Iraq which promised so in this particular time and who controls both houses of Congress is the party which opposes the policies?.
لنترك الإدارة الأمريكية تحل إشكالاتها ومشكلاتها بنفسها فذلك شأنها، ولنترك ما يقوله الأمريكيون لبعضهم وما لا يقولونه لنا جانباً فهم يتحدثون عن مصالحهم، ولنحاور أنفسنا عن مصالحنا وعن مستقبل علاقات بلدنا مع الولايات المتحدة فذلك أمر لا تقتصر أهميته على طموحات جيلنا فقط. Leave the American administration and their problems solved Tree That would own, and only what Americans are saying to them and not to say we are talking about an understanding of their interests, and NEGOTIATIONS ourselves about our interests and our future relations with the United States which is not only important to the aspirations of our generation only.
العراق في الوقت الحاضر بلد محتل لا يستطيع أن يقيم علاقات متوازنة مع الدولة التي تحتله فذلك أمر لا يرقى إليه أدنى شك، ووضعه القانوني لا يؤهله لعقد صفقة متوازنة مع طرف إقليمي قوي ناهيك عن توقيع صفقة مع الولايات المتحدة، فالتوازن المختل من شأنه أن يفقد أية معاهدة أو إتفاقية صفة العدالة والتكافؤ. Iraq currently occupied country can not reside balanced relations with the State, which occupied it is beyond doubt, the legal status does not qualify him for a deal balanced with strong regional party not to mention the signing of a deal with the United States, the unbalanced balance would lose any treaty or convention described justice and equality.
نرجو أن لا يسعى أحد لتشويه هذه الحقيقة، ونرجو أن لا يعمد من أتيحت له ميزة إعتلاء المنابر والتصريح من فوقها إلى تضليل العراقيين بالإدعاء بتوازن الإتفاقية القادمة مع الولايات المتحدة، نقول ذلك بعد أن بدأت بعض الأصوات المسؤولة في الحكومة العراقية وفي مجلس النواب بوضع مساحيق التجميل على الإتفاقية المرتقبة لتسويقها. We hope that one does not seek to distort the truth, and we should not intentionally had the privilege of boarding platforms and permission from above to mislead the Iraqis claim the balance of future convention with the United States, say that after they started some voices in the Iraqi government responsible in the House of Representatives developing cosmetics Convention on the future marketing.
إن مما يُؤلم حقاً أن لا يحظى هذا الموضوع الخطير بالإهتمام الذي يستحقة من قبل الأحزاب والقوى المنخرطة في العملية السياسية خاصة وأن بعضها له تأريخ عريق وسجل حافل في التصدي للإتفاقيات والمعاهدات التي تنتهك حرمة الوطن وتسلب ثرواته. It really hurts that is not the subject serious attention it deserves by the parties and forces involved in the political process, especially since some of them have a long history and track record in addressing conventions and treaties that violate the nation and rob the wealth. وكل ما نأمله هو أن لا تجعل الكتل السياسية الجالسة تحت قبة المجلس النيابي من الموافقة على بنود الإتفاقية المنتظرة مادة للمقايضة للحصول على مكاسب ذاتية لأشخاص أو لأحزاب على حساب الصالح العام كما حصل في صفقة القوانين الثلاث التي مُررت في الرابع عشر من فبراير الجاري. All that we hope is not to make political blocs seated under the dome of the parliament to approve the terms of the agreement expected to rule swap for self gains to persons or parties at the expense of the public good, as happened in a deal that the three laws passed in the fourteenth of February of this month.
majamal@emirates.net.ae هذا الإيميل محمي من السرقة في القوائم البريدية , تحتاج لدعم جافا سكريبت لمشاهدته This email address is being protected from spam bots, you need Javascript enabled to view it
عدد القراءات: 179 Number of readings: 179
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Petrel eager for Iraq west desert oil deal
Published: March 4, 2008 at 3:29 PM
LONDON, March 4 (UPI) -- Ireland's Petrel Resources expects a production-sharing agreement for a deal it signed with Saddam Hussein for a block in Iraq's western desert.
David Horgan, managing director of Petrel Resources, said the exploration and production deal will give the firm "a net production interest in Block 6 of 25 to 35 percent."
"It now looks like the existing hydrocarbon laws will be used with PSA agreements in Southern Iraq," he told the British-based investment news site Proactive Investors. "Any new contracts will include local infrastructure and possibly paying some revenues to local charities."
Petrel predicts 5 billion barrels of oil are to be found in the block.
Iraq's Oil Ministry is relying on a Saddam-era oil law to move forward with its oil sector as a draft hydrocarbons law is stalled in Parliament. The earlier law gives Iraq's Oil Ministry rights to sign deals, though risk contracts like PSAs would likely need Parliamentary approval.
Baghdad is in negotiations with a handful of the world's largest firms to increase production in currently producing fields under new Technical Support Agreements. It is also starting a tendering process for other fields, but so far has said this first round of bids will not include exploration agreements.
Petrel, however, is one of a group of companies that signed its deal with Saddam. Iraq's Oil Ministry said it will renegotiate such contracts under a new legal regime, recognizing their validity. Since Saddam's overthrow, Petrel expanded its Iraq presence.
It received a one-year extension on its agreement to provide training and technology to Iraq's Oil Ministry for the Marjan oil field, is also moving forward on a project to help engineer, procure equipment and supervise construction of the Subba & Luhais fields' expected oil and natural gas production, and has registered for the upcoming bidding round.
The draft oil law remains stuck as Iraq's Kurdistan Regional Government and Baghdad differ on how decentralized control over the oil should be.
PSAs themselves are controversial. They are highly favored by international oil companies that are reimbursed for all costs and then get a cut of the oil itself, as well as able to claim the reserves when reporting to Wall Street. Iraq's oil sector is nationalized and Iraq's unions, among others, don't want international oil companies to have the footprint in Iraq PSAs would offer.
Iraq's oil fields have excellent find rates for exploration, and the oil is easy to produce and of high quality.
"We expect to be invited soon to discuss Block 6," Horgan said, adding the block has shown to have easy to reach oil. "If we sign by summer we will deploy a seismic crew over the winter 2008/9, allowing a well the following winter."
http://www.upi.com/International_Sec...oil_deal/9440/
Iraqi Cabinet OKs Deals With Majors
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Summary
The Iraqi Cabinet has given the Oil Ministry the go-ahead to sign Technical Support Contracts to develop five producing fields with five of the world's top oil firms, Iraqi sources told International Oil Daily Tuesday.
http://www.energyintel.com/DocumentD... ication_id=31
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Iraqi National Accord shares KRG's position on revenue sharing and oil contracts
The Iraqi National Accord, a political party lead by Iraq's former prime minister Mr Ayad Allawi, has issued the following position paper on Iraq's oil law.
1) The federal oil law and revenue sharing law
We should not confuse the two laws: the Revenue Sharing Law is a political agreement and will ensure that all Iraq's oil and other revenues go into one account to be shared fairly among all its citizens, according to population and in accordance with the Constitution. In our opinion this should be passed first, to create trust on all sides and ensure fairness.
The Oil Investment Law (Oil & Gas Law) is a matter of how best to manage the Iraqi oil resources to maximize revenues for all its people.
A draft was agreed by all sides in February last year, but unauthorized changes by Ministry officials in Baghdad led to disputes and it has been stuck - Parliament has yet to receive an agreed draft to review and vote on.
The INOC (national oil company) is needed to operate the existing fields and double their current production, which is a major task.
Private companies (both Iraqi and international) should focus on the undeveloped fields to add their production to Iraq's total, under the oversight and regulation of the Government, and on the best competitive terms to give maximum revenues to the people of Iraq (less than 5% profit rate is possible for many of these discovered fields in the South of Iraq).
There must be clear separation of roles in the law, between the Ministry (whether Federal or Regional) as regulator, and the companies (whether INOC or private companies) as the regulated operators, as per best international practice and World Bank Guidelines.
The national oil company (INOC) should have no role in awarding contracts. It must behave as a professional company without special treatment or advantage. Also its Chairman, Board of Directors and Managing Director should not be politicians or Ministry officials, and it should be accountable to the Government through the Ministry of Finance.
2) Oil policy
Iraq's production today is 2 million barrels per day - less than in 1975 when the industry was nationalized. It should be at 10 million barrels per day, but the State has mismanaged the oil sector and misused the oil revenues. We must not repeat the mistakes of the past.
The Constitution calls for maximum investment, and we cannot expect that the Government can do everything itself as it did during the old socialist mentality of the 1970s - the Government's role should be regulation and oversight, while having capable Iraqi and international companies to invest and work in all areas of Iraq.
This will boost production more quickly, providing higher revenues for Iraq and also more and higher-paying jobs for Iraqis.
Many of the countries in the region have private companies investing in their oil sector under proper investment contracts: UAE, Qatar, Egypt, Syria, Algeria and Libya. This has brought great benefit and boosted production and revenues.
The only countries with declining production and failed policies have been Iran and Kuwait, who have both followed state-strangled approaches for political reasons and with disastrous results: Iran insists on the national oil company doing everything and its production has fallen from 6 million barrels in 1979 to less than 4 million today. Kuwait with the same socialist approach has had production fall from 2.8 million barrels to 2.3 million barrels.
Unfortunately, the current officials in the Iraqi Oil Ministry are advocating the same failed state-dominated policies and contract systems of Iran and Kuwait, instead of pro-investment successful policies of other countries in the region and internationally.
We should also give preference to Iraqi private-sector companies and encourage them to invest in all sectors of the energy industry, as is normal in all developed economies. They will also be cheaper and give better terms to the Government than foreign companies, who are scared of the security and political situation and will charge more, and will not be accepted by the Iraqi people due to their history of colonialisation and political interference in the Middle East.
3) KRG contracts
No matter who signs the contracts, the oil revenues will all be shared by all the citizens of Iraq as per the constitution.
Therefore all investment in Iraq today to boost production and revenues is positive.
The authorities of the regional and federal governments on oil and other matters are defined by Iraq's constitution, which is the highest law of the country. Any disputes are legal matters which can ultimately be decided by the Supreme Court.
Public arguments, disputes and accusations between officials at the regional and federal level are wrong and damage Iraq's credibility and reputation. A federal minister cannot decide and announce on his own what is "legal or "illegal" to suit his own ends.
4) Ministry incompetence
The Oil Minister is not an oil man but a scientist and maybe a good one.
The Ministry now is open to politicization and morale is bad.
Many top officials have left the Ministry in despair.
No progress to speak of, only empty statements and future plans with ever slipping dates.
The Ministry failed to sign a single contract with anyone - the only 'achievement' is an MOU with Iran to build an oil pipeline to send Iraq's oil to Iranian refineries.
Fuel smuggling and corruption still rife.
Bad management is causing loss for Iraq as an example, Iraq is currently flaring $7 billion a year worth of gas at least, while there is no fuel for power generation.
While pretending to want "transparency", the Ministry wants to discuss with the large oil majors (Shell, Total, BP). These companies are very capable but also bureaucratic and conservative, whereas what Iraq really needs is fairer competition, maximizing Iraq's interests with companies willing to work on the ground today (similar to what is happening in Kurdistan).
"Black-listing", punishing and threatening of oil companies investing in Kurdistan is not only illegal, but has harmed Iraq's reputation and access to investment and oil markets: the Iraqi Oil Minister has suspended MOUs signed by his predecessor which were adding value to Iraq for free, and has killed the relationships with important customers like Korea and Austria/ Eastern Europe, because their companies signed contracts with the KRG (even Saddam never stopped exporting oil to the US).
The Ministry of Oil has been calling these companies "small and unimportant", which is nonsense (OMV is the biggest company in Central Europe, Dana Gas is the biggest private energy company in Middle East, and Reliance is the biggest energy company in India).
Iraqi National Accord
Bout time they woke tfu....The clerics are evil man
any thoughts on the 3 posts....lol
Calling out those in support of the gradual appreciation theory.
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Seeing how this used to be an ever so popular subject with many jumping on the bandwagon with the continual pip appreciation, it seems as of late your guys flame has burned out. No more then a year ago I couldn't turn the page without reading "Slow grow is the way to go" or something to that effect. Today not so much. Since core Inflation has been driven down to around 10% there has been no such movement as some members I might point out predicted a long while ago on relatively deaf ears at the time. With even the IMF saying as much my question is are there any of you left? If there is I would be happy to hear what you think.
Calling out those in support of the gradual appreciation theory.
--------------------------------------------------------------------------------
Seeing how this used to be an ever so popular subject with many jumping on the bandwagon with the continual pip appreciation, it seems as of late your guys flame has burned out. No more then a year ago I couldn't turn the page without reading "Slow grow is the way to go" or something to that effect. Today not so much. Since core Inflation has been driven down to around 10% there has been no such movement as some members I might point out predicted a long while ago on relatively deaf ears at the time. With even the IMF saying as much my question is are there any of you left? If there is I would be happy to hear what you think.
Calling out those in support of the gradual appreciation theory.
--------------------------------------------------------------------------------
Seeing how this used to be an ever so popular subject with many jumping on the bandwagon with the continual pip appreciation, it seems as of late your guys flame has burned out. No more then a year ago I couldn't turn the page without reading "Slow grow is the way to go" or something to that effect. Today not so much. Since core Inflation has been driven down to around 10% there has been no such movement as some members I might point out predicted a long while ago on relatively deaf ears at the time. With even the IMF saying as much my question is are there any of you left? If there is I would be happy to hear what you think.
Announcement No.(1119)
D.G. of Foreign Exchange Control
The 1119 daily currency auction was held in the [COLOR=purple! important][COLOR=purple! important]Central Bank[/color] of Iraq day Wednesday 2008/3/5 so the results were as follows :[/color]
Details Notes
Number of banks12-----
Auction price selling dinar / US $1210-----
Auction price buying dinar / US $-----------
Amount sold at auction price (US $)116.880.000-----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $)116.880.000-----
Total offers for selling (US $)-----------
Welcome all, I hope you find this room to be very informative and good luck with your investment......
More news MONA...GREAT REVENUE NEWS!!!!!!
More news MONA...GREAT REVENUE NEWS!!!!!!
Done with this room...keep the non-americans...lmfao
omg she smelled like mutton as she blew by?..lol
Mojo you still here? Don't you miss the homeland?