Announced the drilling of the Ministry of Oil for the completion of the drill 19 oil wells out of 25 started the company drilled during the current year, to help raise the production capacity in the fields of the North Oil Company, said an officialDepartment of drilling in the body processes the second Abdul-Jabbar Kirkuki that "the technical staff and engineeringDrilling Company completed during the year 2011, 85% of its 19 wells drilled after the oil out of 25 in the province of Kirkuk within the annual plan of the company."
Oil fields on Iraqi-Kuwaiti border await demarcation
Source: Dinar Daddy’s Tidbits
URL: http://feedproxy.google.com/~r/115/BKGb/~3/YBwdEF4hbvE/
04/12/2011 14:46 BAGHDAD, Dec. 4 (AKnews) – There are 10 oil fields that spread across the Iraqi-Kuwaiti frontier that are waiting to have a line drawn through them, the Oil and Energy committee in the Council of Representatives announced Sunday.
Committee member Furat al-Sharei told AKnews that the oil will be extracted from these fields after finding joint mechanisms between the countries. There are also ten common with Iran that are waiting the demarcation process to begin extraction.
“The problem of the common fields can be resolved by developing legal mechanisms.”
The Kuwaiti government denied trespassing on joint oil fields with Iraq last July, accusing unnamed parties of trying to destabilize relations between the two countries.
The Iraqi government pays 5% of its revenue to compensate its debt to Kuwait that reaches $ 22 billion USD (23,000 billion IQD).
The relations between Baghdad and Kuwait witnessed significant improvement in the past few years. Kuwait re-opened its embassy in Iraq in 2008 after nearly 19 years of broken diplomatic relations between the two countries, while the Consulate of Iraq was opened in Kuwait in 2010.
The former Iraqi president Saddam Hussein ordered the invasion of Kuwait in 1990, and sanctions were imposed on Iraq by the international community as a result. Iraq was put under Chapter VII, which makes it a country that threatens global security.
Although both countries have opened embassies in the other state, the outstanding problems between them are still present and they lead to periodic tensions in the relationship.
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Japan Wants to Develop Iraqi Oil Fields
Posted on 06 December 2011.
According to a report from Tokyo Times, Japan’s Minister for Economy, Trade and Industry, Yukio Edano (pictured), has told Nuri al-Maliki of Japans’s desire to work on the development of Iraqi oil fields.
It was reported that a Japanese consortium led by Nippon Oil had been optimistic about securing the right to develop the Nasiriyah oil field located in the southern part of Iraq believed to be rich in oil reserves.
A Japanese official said Maliki had assured Edano of his country’s openness adn full support for Japanese investments.
Economic adviser Salam al-Quraishi said, “The Iraqi government invited 14 Japanese companies to implement projects in the field of energy and providing electricity, 7 to implement residential building projects, 5 companies to develop the oil industry and 8 companies specialized in different investment areas.”
Officials affirmed cooperation in the energy and economic fields as well as in the development of infrastructure like railways, harbours and roads.
Edano expressed Japan’s readiness to provide technologies and financial resources for Iraq’s reconstruction efforts.
(Source: Tokyo Times)
(Photo credit: DAJF)
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Oil optimism buoys draft budget
The Cabinet has passed its largest draft budget yet, calling for spending of 117 trillion Iraqi dinars ($97.5 million) next year, a 22 percent increase over 2011.
The budget reflects Iraq's priorities as it takes its first steps into full sovereignty, dedicating nearly half of state spending to three sectors: energy, security, and social services.
Iraq still depends almost exclusively on oil for its income. The budget anticipates revenues of 102 trillion dinars (about $85 billion), based ...
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Iraq Approves $100bn Budget for 2012 |
Posted on 07 December 2011
Iraq's Cabinet has approved a federal spending plan of almost $100 billion for 2012.
The budget is based on an oil price of $85 a barrel and is smaller than the $112 billion spending plan discussed by the Cabinet in September, which was based on an oil price of $90 a barrel.
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Reidar Visser wrote: What is clear from the 117 trillion Iraqi dinars budget is that it is the existing federal region – the Kurdistan Regional Government – that continues to get the best deal from the allocation of money. The budget envisages that Kurdistan oil exports will amount to 175,000 barrels per day in 2012, which is about 6.7% of the anticipated total Iraqi daily production of 2,6 million barrels. By way of contrast, the KRG will receive a 17% allocation of the expenditure budget (around 16 trillion ID) after the deduction of so-called “sovereign” spending covering mainly external defence and foreign diplomatic service. By increasing its exports, the KRG contribution to the national income is up from about 4.5% in 2011, but it is perfectly clear that the Kurds remain dependent on a big subsidy from Baghdad.
1. The Kurdish 17% share has repeatedly been criticised by other parties for being too high (remember technically speaking it relates to the KRG areas only, not total Kurdish share of the population). As you can well imagine, the Kurds claim that the percentage is too low…
2. The constitution says the distribution of oil income should be “just” in the sense of proportional per capita distribution in all of the country, with provision for special subsidies for regions that were particularly hurt by the former regime.
What citizens of Basra will ask themselves is why the KRG with its around 4 million people is getting something that corresponds more or less to their share of the population (one may quarrel about the exact proportion but it is probably in the 15-20% range) whereas Basra with 2.5 million are getting a lot less.The idea of remuneration for production is not constitutionally acknowledged, but it has become a centrepiece of regionalist agitation in the south.
Compare the 16 trillion ID Kurdish share of the budget with what goes to the ordinary governorates. The oil-producing governorates will continue to get their one dollar per exported barrel fee, but this is not expected to make up more than 1.7 trillion ID in total, or just a tenth of the total Kurdish budget share. This despite the fact that a governorate like Basra contributes the lion’s share of Iraq’s total 2.6 million bpd production. Similarly, the pilgrimage fees that were introduced in 2010 will produce a mostly symbolic contribution to the governorates of Najaf, Karbala, Baghdad and Salahaddin. (In 2011 budget this income was given to the border governorates instead.) Additionally, the investment headings for all of Iraq amount to no more than 30 trillion ID in total for the entire country.
The deficit will be about 16 trillion dinars ($14 billion).
Revenue projections are based on exports of 2.6 million barrels of oil a day, including 175,000 barrels from the northern Kurdish region.
Iraq's 2011 budget was $82.6 billion, based on an average oil price of $76.50 per barrel and 2.2 million bpd in crude exports.
Iraq also has $4.5 billion in International Monetary Fund loans available should it need additional funds, government spokesman Ali al-Dabbagh said.
(Sources: Bloomberg, Reuters)
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Iraq: Pick a Sector |
Posted on 08 December 2011
We all know oil and gas are the drivers of Iraq's economy and will fuel the development of the country, but it would be a mistake to think that all the investment in Iraq will go into energy-related infrastructure.
Taking a totally unrelated sector as an example, healthcare in Iraq has received massive funding and continues to do so.
US Vice President Joe Biden pointed out that the United States has completed nearly 1,800 projects in Iraq's health sector valued at close to $1 billion:
- renovating 133 primary health care centres;
- providing critical emergency maternity care, along with medical and dental equipment;
- with the government of Iraq, jointly building, renovating and expanding hospitals throughout this country.
And the US has just launched a $74 million project to improve primary health care at 360 clinics in over 18 provinces.
That's just one example, but every sector of the economy is ripe for development, and companies are queueing up to be part of it. Will your company be among them?
If you're considering taking that step into the Iraqi market, Upper Quartile and AAIB are the perfect team to guide you. For more information please contact Gavin Jones or Adrian Shaw.
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