Gulf Keystone shares spike and plunge after junk bond deal

Business | Wed Jul 20, 2016 2:33am EDT Related: DEALS Gulf Keystone shares spike and plunge after junk bond deal LONDON | BY ALASDAIR PAL AND DMITRY ZHDANNIKOV Gulf Keystone's stock spiked and fell by a third on Tuesday as retail investors flooded chatrooms trying to figure out how junk bond funds led by former JP Morgan and Lehman Brothers traders will help restructure the oil firm. Last week Gulf Keystone, crippled by low oil prices and non-payments from Iraqi Kurdistan, announced its bondholders had agreed to swap $500 million of debt for equity, all but wiping out some of the world's top funds as shareholders. Little-known distressed debt funds such as Sothic Capital, co-run by former JPM trader Gertjan Koomen, and CapeView Capital, co-run for former Lehman trader Theo Phanos, are set to receive significant stakes, according to sources close to the firm and bond holders. GLG Partners, part of hedge fund Man Group, and investment fund Taconic Capital are also likely to become large equity owners: debt-holders are set to get 85.5 percent of Gulf Keystone, while existing shareholders would hold just 4.5 percent unless they buy new shares in the $25 million open offer for 10 percent of the expanded equity. On Tuesday, Gulf Keystone' stock rose 32 percent before erasing most of the gains. At 6 pence a share it was still at its highest since April, off last week's all-time lows of 2.5 pence. Its all-time high was 465 pence, when the firm was worth over 3 billion pounds ($4 billion). Traded volumes spiked to an all-time high of 125 million shares, meaning over 10 percent of the firm changed hands on Tuesday driven mainly by retail investors. Gulf Keystone was the most discussed stock by far on the Interactive Investor and ADVFN message boards, two of the most popular chat tools for retail investors in Britain. Theories behind the stock jump ranged from an imminent hostile takeover on an improved debt outlook to a major liquidation of short positions by bond holders because they had managed to push the restructuring through last week and no longer needed short positions as hedges for convertible bonds. "We've had some clients buying into it," said Jonathan Roy, advisory investment manager at Charles Hanover Investments, adding the restructuring had diluted the share price, but had now alleviated funding concerns. "Their assets on the ground are attractive, in spite of the political instability, and there's often takeover talk surrounding Gulf Keystone," he added. He did not name a prospective bidder. MORE VOLATILITY Gulf Keystone's shareholders have yet to approve the debt swap and the drastic dilution. But the company has predicted insolvency if the deal doesn't go through. That gives the likes of Sothic and CapeView a strong chance of becoming the driving forces behind changes at Gulf Keystone. The two funds as well as GLG Partners and Taconic declined to comment. In 2015, Sothic and CapeView both participated in a similarly complicated debt refinancing after low gold prices sapped Russia-focused, London-listed miner Petropavlovsk. The firm has since become a battleground for shareholders including Russian oil-to-metals tycoon Viktor Vekselberg. Gulf Keystone has said it has had as many as 18 merger and acquisition approaches in the past but most buyers were spooked by heavy debt levels. "Hedge funds will usually be on the shareholder register for a shorter period of time compared to longer-term investors, which increases volatility," said Sam Wahab, oil and gas analyst at Cantor Fitzgerald. (Writing by Dmitry Zhdannikov; Additional reporting by Sudip Kar Gupta; Editing by Ruth Pitchford)

Convertible Bond Arbitrage -GKP

SP, news and funding T Badger 71 15 View Author's profileAdd to favouritesIgnoreAuthor's posts I also suspect the post may be removed, and I might get banned I suppose. I thought the post relatively innocent conjecture. The objective, pretty simple I want my investment to grow, the last 4 years have been a roller coaster where only the traders have made money. I don't have an agenda, but I am very very confused by the actions of GKP in the main market move, the CPR and the bonds (with warrants) the warrants thing does make me think. To be honest I have a lot invested here, and I believe in the asset, I just have had enough of the information management, late declarations of sales and market critical information like she not coming out apart from in a CPR - enough to last a lifetime. The price is below where I first invested, I've traded and held this stock for years and believed in the dampers. In no small part due to information on iii I have over invested here. Thats for sure. Its time for a balanced conversation The main worry was something reuters or FT alpha put out saying that at the end of the day the bond holders are going to own this share. Whilst we know the CPR is a base line case, the company is only just deciding to act like that. and Yes I do except good news for 12 months on upside. But really - how can Genel claim 22% RF for BB whilst we get 6% allocated. HOw can MOL get away with AB being 4 times bigger vs CPR. Whoever you believe in this crazy story one things true, you can't believe anything. - At this point we can start to see the workings of our CEO and his army of advisors. So what happened? They authorised the Edison report that managed expectations downwards after talking it up within a year. They then decided on a strategy to put out a low reserves figure as a "base line" - all after years of over egging the pudding. Then worse of all they allow the funding to run dry, and put out a statement that reads like the company is going insolvent - as they move to the main market. "You would be insane to do that, it's just crazy" source CEO of oil and gas company tells me. I thought it was insane, but it's nice to know you are not alone.... So why. I Posted a while ago mentioning that the convertible bonds would have been short covered in a company like GKP. At today's unrealistic artificial prices these shorts show a big profit. Getting a low warrant with shares away allows these shorts to be closed and profit to be taken on the inevitable rise. As the price rises to x then they will short again - I think this target price is £1.85 in the short term. Now this hypothesis sounds like market manipulation, but this is conjecture and no way to prove. ((Conjecture: 1. Inference or judgment based on inconclusive or incomplete evidence; guesswork. 2. A statement, opinion, or conclusion based on guesswork:)) If you felt there were a conspiracy one could imagine the conversation re bonds.. "Look we have this massive retail investor base, they are all crazy, and the trading volumes are huge. It's perfect for bond arbitrage. I got this plan right. I know your CBs are underwater but you've short covered them right, I mean who wouldn't in a volatile retail market right? ((Definition of 'Convertible Bond Arbitrage' An arbitrage strategy that aims to capitalize on mispricing between a convertible bond and its underlying stock. The strategy is generally market neutral; in other words, the arbitrageur seeks to generate consistent returns with minimal volatility regardless of market direction through a combination of long and short positions in the convertible bond and underlying stock. Investopedia explains ' Convertible Bond Arbitrage ' If the convertible bond is cheap or undervalued relative to the underlying stock, the arbitrageur will take a long position in the convertible bond and a simultaneous short position in the stock. Conversely, if the convertible bond is overpriced relative to the underlying stock, the arbitrageur will take a short position in the convertible bond and a simultaneous long position in the underlying stock. The price of a convertible bond is especially sensitive to changes in interest rates, the price of the underlying stock, and the issuer's credit rating. Therefore, another type of convertible bond arbitrage involves buying a convertible bond and hedging two of the three factors so as to get exposure to the third factor at an attractive price. )) Well here's the plan. We are going to move to main market on pretext that Todd can tap up his US mates to invest. For 3 months prior to the main market move we won't put out any news or say a thing and the price will drip away to a low base. Then just prior to the main market listing we will issue our CPR. We will use this as a reason to come clean on sh6 owc and the optimistic reserves expectation, ok ok I know I might get some flack for selling out all my shares before the sh6 news was in the market, but hey we got to look after ourselves right. Anyhow the price will tumble. We will get Ewan to be pretty vague about payment for oil we have already sold, hey I know he is a bad actor but they will believe its just financial incompetence or political risk. Then get this, just before we go to the main market we will come out and say we don't have any money to realise the base plan in the CPR and get Edison to say the nav per share is like 60p. Brilliant plan eh, the price will crash. We will take our time over the funding put a couple of stories out about it being pretty hard to get the bond away, price will drip away further. Then given how scared we would have got the Pi's we will then easily get away with giving you guys 40million shares for a £1. And a reasonable coupon to boot. Meantime you can be buying up some shares in the market if you like, we don't want the price to fall to 60p else that tony bloke will come and acquire us and we loose our jobs. Anyhow you give us the money the share price will shoot up as those poor gullible PIs buy back in above where they were forced out, and we will make a killing - oh and next year we will do the same. We will be long gone by three years, so you will get your cash back if there is a change of control and can milk it in the interim. We don't care if we get sold out cheap, we all have got these exit awards, oh and those other option shares with those £2.75 trigger prices. That's just PI bait. We can talk about "the road we travel together" and stuff like that to keep em on the hook. Come on let's face it this company will be owned by the bond holders and exec board by the time we sell out and we can get rid cheap if it gets too hot. But you got to love those retail investors for giving us the volatility to pull this little stunt off, aren't we just so clever" Or you could choose to believe it was all an unavoidable set of tough circumstances that the board have been valiantly navigating to try to realise best value for the shareholders. .So devious or blind incompetence. Take your pick. Trouble is I have been told that the institutions are not overly pleased, that in all likelihood Todd has to go. End of the day the shareholders, not bond holders that own the business. M&G non execs been played like a fiddle on the pretext of transparency. Maybe this is the last time, but is doubt it. Other o&g CEOs like Todd, only because by his standards their salaries look very cheap but don't respect him, not that I have heard. He brings too much Wild West into the sector, and apart from that sucks up investment away from them using sound bites that in hindsight have the ring of the snake oil salesman. However amongst all of this the asset base of GKP is great, I just wish Tony Hayward managed it. In the short term it has a great deal of upside but my target for this share has been more than halved. Todd and his merry men have now annoyed far too many investors and institutions, and it has been recognised he has "had his snort in the trough for too long and taken way too much. It is unlikely he will be here post re-election. So maybe he will sell out being forced out? Of and FYI GKP got a new country manager cause the last one was fired. The conversations with Genel, Exxon and others have not materialized at this point. Maybe the Chinese will buy it who knows. The consensus from guys I speak to seems to be that whilst the asset is worthwhile, the company is a basket case. The shareholder base is too evangelistic to listen to sense on pricing - must put off potential bidders - they all saw the run up to £4.50. It is widely rumored that Genel would only pay £500million for the company as it stands. I am very long on this share, but quite frankly I should have backed Genel. I'm sure in the short term that the price will bounce and rally to a comfort point in time for the agm; it always does this time of year. And as soon as it does a load of new guys will come in, and a load of long-term investors will hold at a lower level or promptly exit. Whilst the PI base is probably the majority of shareholders, gaining consensus is impossible. Anyhow, as a short term trading vehicle this share is great, it's the longer-term investment that I worry about and I've held for over 4 years. And that worry is predicated on the management of the company, alongside the real costs in moving to production that are probably an additional $200 million from what's stated. The exit price will be similarly manipulated, but that all said, In the meantime it's a traders share Badger

And what if Excal never gets to court?: Goodbye Shahristani, Hello Kurdistan

Author bonobo77
Date posted today 09:36
Subject Re: BUY GKP View parent message
Votes for this Posting Voted UP 23 times.
Message

Over 90% of such claims don't make it.
The odds are in favour of an out of court settlement.
That gap at 332p could be swiftly filled once the monkey is off our backs.
So what'll it be ... sell at 243p resistance in the hope of it dropping back to £2 and risk being out when Excalibur disappears? 40p downside versus 90p upside ... and a pure gamble to boot.

Much easier to simply look beyond end of year when we know Excal will be gone - one way or other.
What value to you attach to your shares in that CERTAIN event?
More than 243p?
Then maybe best to just hold and not try and get too cute at the eleventh hour of this investment.
IMHO.
=============

10:17
Re: Real Values > Cb

scaramouche
22UP
Hi Coachburdy,

For me, you are one of those rare people who is always capable of finding humour in adversity, and often manages to say in very few words what so many people here are thinking.

Your 'Three Humps diary' exhibited both of these characteristics in abundance, and deservedly acquired almost legendary status. And this post from the Coach's archive in January 2010 entitled 'spleen vent' captured quite brilliantly both the frustration the long-termers were feeling, and the humour in what has at times been one of the most turbulent investment rides of all time.

http://www.iii.co.uk/investment/detail?code=cotn%3AGKP.L&display=discussion&threshold=0&action=detail&id=5808056

I am sure Bracken too would have been very impressed by it!

Personally, I very much hope you will be back soon to entertain us with your lovely sense of humour, and offer us all a few wise words... after a short break from what has undoubtedly been an emotional and rather sad week for you.

Without you, the GKP community will not be the same!

Kindest regards,
scaramouche
====


Coachburdy
22UP
Sometimes you can find yourself in a roomful of people where although the majority are perfectly reasonable and amenable, the actions and attitudes of a poisonous minority, make staying untenable. My contibrutions to this board have never been of much 'technical' value
but I hope my occasional attempts at humour or balanced opinion have not been hurtful or offensive.Another poster moves on.
Goodbye
Cb
====

Author scaramouche View Profile Add to favourites Ignore
Date posted Tuesday 12:05
Subject Balance and perception...
Votes for this Posting Voted UP 95 times.
Message
Good morning everyone,

Like many on here, I feel very privileged to be able to read some fascinating contributions to the Excalibur debate from both Dennis and Sicilian_Kan. It is very helpful to hear both sides of the argument from two experienced and obviously very knowledgeable lawyers, and it makes me feel almost as though I am in the courtroom... witnessing both prosecution and defence lawyers in action. My sincere thanks go out to both of them.

But, as Kiama123 has highlighted, we need to be conscious that, ultimately, we are all on the same side, and presumably hoping that Excalibur are exposed for being the ‘chancers’ that most of us have long perceived them to be. So, I feel rather uneasy about any negative inferences concerning the reliability or accuracy of some of their comments.

I see them as both being highly skilled in identifying the possible holes in each others’ arguments, and being able to argue their case logically and eloquently, but hopefully not on completely different sides of the fence.

However, as a GKP shareholder, I do have certain concerns arising from the latest ‘debate’.Personally, I do not feel that we should ever lose sight of the fact that Excalibur:

1. DID choose to bring a case against GKP long after the oil discovery had been announced.
2. DID bring about a 30% decline in the SP in a matter of minutes on 29 December 2010, causing many who were perhaps unwisely over-leveraged at the time sizeable and very REAL losses.
3. DID NOT contribute a single penny towards the costs that GKP has paid, while Shaikan has been in the process of evaluation.
4. WAS little more than a two-bit outfit with a turnover of about $200,000 per annum , yet IS somehow laying claim not only to a tiny part of the Shaikan PSC... but to 30% of ALL of GKP’s assets.
5. HAS without question held back GKP’s SP significantly for over 20 months, and caused all shareholders considerable consternation, uncertainty and financial loss throughout as a direct result of the case.
6. HAS meant that the 91 million shares issued in the placing in September 2011 could only attain a price of 140p per share, thereby increasing the dilutory effect on shareholders.
7. HAS enabled the GKP share price to be ‘played’ excessively by hedge funds throughout the period that this uncertainty remains, and MAY have also enabled one or more ‘backers’ to benefit from ‘insider knowledge’ regarding the precise state of play of their action in the course of also trading GKP shares.
8. MIGHT have had a detrimental effect on both the timing of a possible takeover and the T/O price itself.

The list goes on and on, and in every respect as far as I can see, Excalibur has been very damaging to all of us as shareholders. I don’t believe we should be giving them credit where credit is not due, or effectively arguing the case for them!

While it is sometimes argued that the effect of the Excalibur claim has been to allow GKP to remain independent for longer, and thereby prove up more of its assets, my feeling is that this is probably more a by-product of the seemingly unending political impasse in Iraq.

In any event, it is at best nothing more than an unexpected consequence of the court case, and Excalibur remains very clearly an unpleasant irritant that GKP will do well to dispense with at the first available opportunity. IMHO, every effort should be made by GKP's lawyers to ensure they are not be granted any form of settlement that involves the issuing of yet further shares. And that is very much the conclusion that I have drawn from Dennis's musings.

So, going back to the debate between our legal friends, I welcome the factual attention Sicilian_kan has given to many of the possible legal arguments, but there are 2 comments he made that did cause me some degree of concern:

A. “Any settlement of 5% or less in shares would not unduly concern me”.

On the contrary this would cause me very great concern! Under this scenario we could be talking up to 50 million shares, valued at over £100 million today, and perhaps ultimately £500 million or more to Wempen & Co! And for what, exactly?

Incidentally, one thing that has been puzzling me for some time is that “should not the injured party be put back into the position they would have been at the time the PSC was signed, if indeed their claim was valid?”

In November 2007, when GKP signed the Shaikan PSC, there were around 280 million shares in issue and the company was valued at about £100 million, so surely the value of the company now, so long after Excalibur SHOULD surely have made their claim for redress, is immaterial. Perhaps one of our legal friends could address this point.

B. “I do not think that TK and the KRG (if giving evidence) will want to be cross-examined in public / opening up certain matters in a public forum”.

While I agree that no-one would actively seek to be put under the spotlight in a court-room, if it was necessary to enable the judge to return the correct verdict I do not see why TK would necessarily be overly concerned.

To suggest otherwise might be deemed somewhat "presumptive" and tend to feed further unnecessary speculation!

Finally, I would like to repeat my earlier comment that I appreciate very much the contributions from ALL of our learned legal friends, and the balance that they often help to provide. But I do sometimes think that even they might sometimes be influenced by popular opinion and have a tendency to apply their own ‘personal’ views when discussing investments such as this one.

It is an investment that is very emotive for many, and I am sure that Elikkos, Sicilian_Kan and Dennis too, are liable to be influenced not only by a careful study of the facts but their own personal circumstances and perceptions. It is very important that we are all fully aware of this.

AIMHO and please DYOR.
GLA, scaramouche

=====

UPDATE 2-ONGC buys Hess stake in Azeri field for $1 bln
Fri, Sep 07 17:10 PM EDT

NEW YORK, Sept 7 (Reuters) - Hess Corp agreed to sell its 2.72 percent stake in the large Azeri, Chirag and Guneshli(ACG) group of oil fields in Azerbaijan as well as its 2.36 percent stake in an associated pipeline to India's ONGC for $1 billion.

Hess said that ONGC's foreign investment arm ONGC Videsh will buy the assets in a deal it expects to close in the first quarter of 2013. It is subject to Indian and other regulatory approvals.

Hess said the sale was part of an asset sale program under which it is trimming mature assets, as well as stakes in projects in which it only holds a small working interest. It said it has announce nearly $2 billion in sales this year.

The BP-operated ACG oilfields are in the Caspian Sea around 100 kilometers east of Baku.

ACG accounts for the lion's share of Azeri production and is the main source of crude for a pipeline which runs via Georgia to the Mediterranean port of Ceyhan in Turkey.

In August, The BP-led Azerbaijan International Operating Company (AIOC) reported that output at the oilfields over the first six months of 2012 declined to levels not seen since 2007, producing 16.8 million tonnes or 682,154 barrels per day (bpd) in January-June compared to 19.0 million tonnes a year earlier.

Local officials attributed the output fall at the project, which has total reserves of over 6.5 billion barrels, to repair work on some drilling platforms and refineries.

The country expects its oil output to rise in 2013 thanks to the start of the next stage in ACG's development.

Rothschild advised ONGC Videsh on the sale.

===

30-08-12
Re: Mark Hanson and his 15k peanuts pa

GKP.L
59UP
Hi Broadford Bay,

Mark Hanson's interest in GKP is not confined to the $15k salary he earned in the very short period for which he had been a non executive director of GKP in 2011.

From the annual report on page 38
"On 21 March 2012, an option to acquire 250,000 common shares in the capital of the Company at a price of 250 pence per common share was granted under Gulf Keystone’s Share Option Plan to Mark Hanson, who joined the Company as a Non-Executive Director in November 2011. Subject to certain performance criteria having been met prior to exercise, these options will vest after a three year period and can be exercised at any time until expiry on 25 November 2021."

So, if GKP was to be sold for even £10 per share in the relatively near future, he still stands to make £1.75 million profit on those options. Not bad for what might only be a year or so of work!

Much the same is true of Lord Guthrie who earned just over $30K in 2011.

The best thing about this scenario though is that Hanson's & Guthrie's interests are very much aligned with ours, as otherwise their earnings would indeed be, as you put it, "peanuts".

AIMHO and please DYOR.

GLA, scaramouche
===

Author scaramouche View Profile Add to favourites Ignore
Date posted 2012-08-02 11:13
Subject Goodbye Shahristani, Hello Kurdistan...
Votes for this Posting Voted UP 97 times.
Message
When Iraq auctioned off Licences in 10 major DISCOVERED oil fields, via 2 separate bidding rounds during 2009, 15 different foreign companies were awarded shares in those licences:

BP, Shell, EXXON, Occidental, Petronas, CNPC, Lukoil, Gazprom, TOTAL, ENI, STATOIL, TPAO, Sonangol, Japex, and KOGAS.

We now know that THREE of the biggest of those companies EXXON, GAZPROM NEFT, and TOTAL have defied Baghdad by taking up Kurdish contracts, while STATOIL have moved out of Southern Iraq completely.

This is how the Iraqi/Kurdish landscape has changed.....

1. EXXON.
The world’s largest energy company secured a 60% Net working interest in West Qurna-1 in November 2009, an oil field with an estimated 9 Billion barrels of reserves. They are contracted to receive $1.90 per barrel on their share of production, which has a target of 2.25 million bpd by 2017.

However, Exxon chose to defy Baghdad by signing contracts for 6 new Exploration licences in Kurdistan on 18 October 2011, subsequently placing them on Shahristani’s blacklist for any possible future contracts in Iraq.

In April 2012, Exxon were rumoured to be abandoning their contract at West Qurna-1 in favour of pursuing their interests in Kurdistan.
http://www.iraq-businessnews.com/2012/04/05/exxon-mobil-rumoured-to-abandon-west-qurna/
And, on 25 June 2012, they were said to be in talks to sell part of their stake in West Qurna -1 to Russia’s ROSNEFT.

*** Exxon have yet to purchase any EXISTING Kurdish contracts, but must be No.1 contenders for SHAIKAN, in my opinion ***

2. GAZPROM NEFT
The world’s 7th largest energy company secured a 30% net working interest in Badra in December 2009, an oil field with an estimated 2 billion barrels of reserves. They are contracted to receive $5.50 per barrel on their share of production, which is targeted at 170,000 bpd by 2017.

On 1 August 2012, the Russian company GAZPROM NEFT signed up with the KRG by taking up significant shares in the Shakal and Garmian blocks. http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=8578010

*** There has been no response as yet from Baghdad but, with Russia now very heavily committed in the South of Iraq, Maliki and Shahristani will need to choose their words very carefully IMO***

3. TOTAL
The world’s 8th largest energy company secured an 18.75% net working interest in Halfaya in December 2009, an oil field with an estimated 4.1 billion barrels of reserves. They are contracted to receive $1.40 per barrel on their share of production, which has a target of 535,000 bpd by 2017.

On 31 July 2012, Reuters confirmed that TOTAL had taken up Kurdish contracts by purchasing Marathon’s stakes in the Harir and Safen blocks.

Baghdad’s response has been to threaten to put them on Shahristani’s blacklist. http://uk.reuters.com/article/2012/07/31/uk-total-iraq-baghdad-idUKBRE86U10Y20120731

4. STATOIL
The world’s 14th largest energy company secured an 11.25% net working interest in West Qurna-2 in December 2009, with its estimated 12.9 billion barrels of reserves. They were contracted to receive $1.15 per barrel on their share of production, which has a target of 1.8 million bpd by 2017.

In March 2012 STATOIL reached agreement with Russia’s LUKOIL, already the operator, to sell their stake to them. This gave LUKOIL a 75% net working interest.
http://www.reuters.com/article/2012/03/07/lukoil-statoil-iraq-idUSL5E8E717A20120307

So far, STATOIL have not made any move into Kurdistan.

However, CHEVRON’s purchase of Reliance Industries’ 80% share of the Sarta and Rovi blocks on 19 July 2012, brought this comment in the Reuters news report on 24 July, when Chevron too were officially ‘black-listed’...

“As well as France's Total, Norway's STATOIL is also looking closely at KRG exploration blocks, industry sources have said. A move into the north by Total could mean the tipping point has been reached.”
http://xfinity.comcast.net/articles/finance/20120724/BUSINESS-US-IRAQ-CHEVRON/

So, for at least FOUR of those original 15 companies to sign contracts with the ICG, it seems less than 3 years later to be a case of .... Goodbye Shahristani, Hello Kurdistan!.

AIMHO and please DYOR
GLA, scaramouche
=========== ================== bonobo77 View Profile Add to favourites Ignore Date posted Wednesday 10:28 Subject Re: Adnan Samarrai View parent message Votes for this Posting Voted 77 times. Message ‘KRG’s dreams of joining the ranks of major producers rest largely on plans by UK-listed Gulf Keystone Petroleum to tackle its giant Shaikan discovery, which will be the growth engine of the region’s production expansion. Shaikan is destined to transform Kurdish upstream fortunes. ‘Shaikan is quickly becoming another Kirkuk’ (Todd Kozel)’ “We have a phased development plan and need to get to plateau in three to five years,” says Adnan Samarrai (pictured), Gulf Keystone’s Kurdistan regional manager. “We need more than 40 wells to reach plateau, and there is some idea we could go up to 400. Industry experts say France’s Total has both the expertise and the required technology that can benefit Gulf Keystone. However, Samarrai suggests that Chevron may be more interested in farming into Shaikan.’ http://www.upstreamonline.com/hardcopy/news/article292194.ece The above is from December. Today, are we to believe that Adnan’s job is done? That he feels no need to oversee a ‘phased development plan of 3-5 years’? Why might that be? Especially as Shaikan’s development is so critical to his beloved Kurdistan’s hopes of ‘joining the ranks of the major producers’? Could it be that he knows the asset’s development will soon be in safe and proven hands? And he can now best assist a new operator by positioning himself within the Ministry for Natural Resources? Indeed, if you were the KRG with everything riding on this asset, you’d want somebody in your Ministry who knows Shaikan inside out. Bring Adnan onside and let him be the lynchpin in the relationship between the government and Shaikan’s operator(s). In fact, I believe that Adnan is fully intent on overseeing the development of ‘the next Kirkuk’ – his father discovered Kirkuk, after all – and he now knows he can best do so from within the KRG, assuming GKP will soon be no more. Has retired and gone to the KRG Thank you for you help Adnan ============= Thu 22:10 Greater Understanding of Greater Shaikan broadford bay For those of you who attach enough importance to your investments and who really attempt to understand a bit more about the area in which our company is drilling, and the implications of our neighbour's news (see Atrush-2, see Simrit-1, see Harir Mt) on our own crown jewel, can I recommend a careful re-read of the Dynamic Global Investors "Overview of the Geology of Kurdistan" published Oct 27th, 2011? http://www.dynamicga.com/images/stories/PDFs/geoofkurdistan.pdf Even better, open up some of BBBS's postings regarding "interconnectivity" and try to follow his reasoning while referring back to the above. Much better than trying to decypher the "payments imminent" news from Baghdad, IMO. === Thu 23:18 Corporate Action re Move to FTSE FiFiGiGi Just got in to find this in my Selftrade Message Box : CORPORATE ACTION The following corporate action has taken place on a security that you hold within the Selftrade pooled nominee account. Terms: MOVE TO MAIN MARKET OF LONDON STOCK EXCHANGE The Company has announced that it remains committed to undertaking the move from AIM to the premium segment of the Official List of the London Stock Exchange. It is intended that the move from AIM will take place during 2013, subject to meeting the eligibility criteria. Further information may follow in due course. barry finecut Yep just tried and got this The following errors occurred: 1) It is not possible to place a limit or stop order on this security because a corporate action is pending on 13/09/2012. You have requested an expiry date of 12/12/2012 but this must be more than 3 business days before the corporate action date. Victor384 loloCoch on LSE: "I have just tried to put a purchase order on GKP for tomorrow. Lloyds would not allow the order as a corporate action is due today. Can anyone tell me what this is about? " === =============================================== http://www.turkishweekly.net/news/142097/istanbul-hosts-iraq-meet-on-eve-of-crucial-oil-deal-.html Monday, 17 September 2012 Iraqi energy officials are meeting up starting from today with their Turkish counterparts, only days after a milestone fuel accord between Baghdad and the autonomous Kurdistan Regional Government in the north Senior Turkish and Iraqi officials are attending the “Iraq Future Energy 2012” meeting in Istanbul only days after a landmark deal between the central government in Baghdad and the Kurdistan Regional Government (KRG) in the north. The KRG had confirmed on Sept. 14 a deal aimed at resolving an oil standoff with Baghdad, whereby the region will export 200,000 barrels of oil per day, and receive an “advance” of about $833 million. “We are proud that Iraq Future Energy returns to Istanbul for a third year to provide a forum for crucial discussions around the Iraqi energy industry,” Murat Mercan, deputy minister of energy for Turkey, wrote on the official website of the event, which will last until Sept. 20. “We welcome all attendees to the beautiful city of Istanbul and I look forward to meeting you at the event.” Ýbrahim Bahr Alolom, former minister at the Ministry of Oil for Iraq, said, “The entire Iraqi energy industry is getting ready for big things. Production is expected to hit 3.4 million barrels a day this year and as more fields come on stream, this figure can only increase, and this will be of enormous benefit for every single Iraqi.” Iraq has announced its goal of reaching a target production capacity of almost 12 million barrels per day by 2017. Mercan, Alolom, and Amer Rajab Salih, head of the Regulatory Department at Iraq’s Ministry of Electricity, are among the speakers at the Istanbul event, which also includes state and private sector representatives. The KRG had halted its oil exports via the federal government on April 1 over $1.5 billion it said is owed to foreign oil companies working in the region that Baghdad has allegedly withheld, but then resumed them again on Aug. 7, in what was billed as a confidence-building measure. A KRG official then said on Sept. 1 that the region would extend exports until the 15th. Crucial deal for Iraq, Turkey The deal is also crucial for Ankara as Iraq remains a leading oil and gas supplier for Turkey. Genel Energy, an Ankara-based oil firm trading on the London Stock Exchange, is among the oil searchers in northern Iraq. Last week’s deal was reached at a meeting chaired by Deputy Prime Minister Roz Nuri Shaways and attended by Iraqi and KRG officials, a statement on the website of the KRG said. Under the deal, which is to be signed this week, the KRG will export 140,000 barrels of oil per day for the rest of September, then 200,000 barrels per day for the remainder of the year, Agence France-Presse reported. The KRG will receive an “advance” of 1 trillion Iraqi dinars (about $833 million) from the federal government, and will determine the amount of oil it will export in 2013, and also determine the remunerations due to companies operating in the region for inclusion in the 2013 federal budget law, it said. The two sides also agreed to establish a committee to track the amount of oil produced and refined. Another committee is to follow up on the implementation of the agreement and work to resolve any obstacle that may be encountered until an oil and gas law. Baghdad and Arbil are at odds over issues including the KRG’s refusal to seek central government approval for oil contracts with foreign firms, and over a swathe of disputed territory in northern Iraq. ============ Baghdad warns ExxonMobil while a deal with Erbil is gathering momentum Written on September 21, 2012 by Editor in KRG, Oil By Shwan Zulal: The deal will benefit both sides, enabling the Kurdistan region to accelerate expanding its oil sector and Baghdad to increase production to historical highs. The Kurdistan Region has no independent pipeline and the only route is through the Baghdad-owned Kirkuk-Ceyhan pipeline. Therefore, the KRG feels that it has been left with no option but to truck oil to its neighbours and recently to Turkey, which has agitated Baghdad. ExxonMobil’s logistical preparation on the ground in Kurdistan is well underway. According to its contract, it is likely to have to begin exploration which starts with the seismic survey soon. The standard Production Sharing Contract stipulates that the IOC’s is expected to start operation within the first sub period, which is three years. During which the first exploration well must be drilled with all the preparation that entails. Meanwhile, knowing a year has passed and not much work has been carried out and this deadline is nearing, Baghdad has upped the rhetoric and indirectly threatened ExxonMobil with exclusion from its contract to develop the giant West Qurna-1 field in southern Iraq. Most of the warnings have been coming from people close to the Iraqi oil ministry and the real power in Baghdad’s oil sector, the Deputy PM for energy, Dr Hussain Shahristani. The strong language included ” …If they dig, they cannot take Iraqi oil”, reported the specialist media group Iraq Oil Report , meaning if ExxonMobil start operation under their obligations, Exxon will risk its West Qurna-1 contract and at the same time they will not be able to sell their Kurdish oil through Iraqi pipelines. Furthermore, the website quoted Baghdad officials saying that the way to retaliate can take more subtle forms: “Do not give them permits to come, do not allow their people to work … and they will find that they are not welcome here”. These types of comments are worrying, though, more for Iraq than for ExxonMobil. If ExxonMobil’s operations in the south are obstructed, the main loser will be Iraq as failure to increase production will cost Exxon less than $2 per barrel while Iraq and its people will lose over $100 per barrel. Needless to say, limiting ExxonMobil’s operation may hurt the company somewhat financially if they lose what they have invested so far, but it will have more far reaching implications. Shell, which has been obedient to Baghdad and is ExxonMobil’s partner in West Qurna-1 field, will also be affected if development is hindered and lawsuits commence. When ExxonMobil signed its deal with the Kurdistan region, Baghdad was completely taken by surprise. So far, Dr Shahristani has refused to accept that Dr Ashti Hawrami, KRG Oil minister, has outmanoeuvred him. Should Baghdad cancel the West Qurna-1 contract, ExxonMobil has made it clear that it will take legal action. Last week, information about the meeting that ExxonMobil had with Baghdad officials has come to light; Dr Shahristani was reported to have been very frustrated and “hardly able to control his emotions” during the meeting. Baghdad’s options are limited when it comes to punishing ExxonMobil. Its strong language has been heard before, and it would need to demonstrate why, this time, it is capable of executing its warnings. As a sovereign government, Iraq can do as it wishes dealing with the IOCs. But if it does deliver on threats, including cancelling contracts and making life difficult for ExxonMobil, it too will suffer. June this year, in the Global Petroleum Survey carried out by Canadian research group the Frazer Institute, Iraq was ranked at the bottom of countries for oil and gas investment, due to bureaucracy, poor security, lack of certainty and clarity about the law and regulation and the fiscal terms on offer. Although Iraq has among the world’s largest conventional oil and gas reserves, official comments on making life difficult for international oil companies will not improve its rating. This article first appeared on Kurdish Views ============================= Subject Re: Shell pondering Kurdi move, again View parent message Votes for this Posting Voted UP 52 times. Message So, now the Iraq Oil Ministry is threatening to add SHELL to Shahristani's blacklist for talking to Kurdistan. It's getting to be rather a long list... and effectively confirms the latest report from Reuters posted on Friday evening. GLA, scaramouche ----------------------------------------------------------------------- http://www.shafaaq.com/en/news/3605-iraq-includes-shell-in-the-blacklisted-if-contracts-with-kurdistan.html Iraq includes Shell in the blacklisted if contracts with Kurdistan Subject Peering through the gloom.... Votes for this Posting Voted UP 165 times. Message Hi everyone, There have been some very interesting posts today relating to the Half-Year Results , and I must admit that, despite the abundance of information provided, I still found myself feeling strangely ‘ in the dark’. I have done my best to see my way through 'the gloom' and these are my current impressions. There were several disappointing aspects to the results, in particular:- • The departure of Adnan Samarrai, a man to whom I believe that we all owe an immense debt of gratitude, off to the Ministry of Natural Resources. Good luck Adnan, you definitely deserve it! • The lack of of oil sales since the end of May 2012, probably as a direct result of the constant arguments between the KRG and the ICG and halt in exports. Until then, it looks as though GKP was actually producing about 5000 barrels per day, of which about half was our net working interest and generating revenues of around $3 million per month. • The deteriorating cash position, caused partly by lack of production revenue, partly by the delay in the payment of $55 million costs owed to GKP in respect of BIRs, and partly by the delay in the sale of Akri-Bijeel which had first been mooted towards the end of 2011. But on the plus side, for those like myself who are hoping that a Takeover (or at least the sale of Shaikan), will happen fairly soon:- • There seems little evidence that GKP is really looking to enter the FTSE, despite the oft-repeated claims that they intend to do so. The target date has repeatedly moved and “NO DISCUSSIONS have as yet been held with the UK Listing Authority regarding the Company's eligibility for the premium segment”, suggesting that there is no real appetite for this... no matter what we are hearing from TK. Furthermore, Adnan’s departure, the unlamented loss of Lord Truscott, and the evident lack of interest in acquiring the mythical 3rd NED (first promised what now seems like an eternity ago) suggest no pressing need for such otherwise ‘key’ personnel. • The intention to get rid of Excalibur seems to have stepped up a gear. No longer do we read just that the company “continues vigorously to dispute and contest the allegations and claims” but we now see (amongst the Outlook highlights) that GKP is determined to “Successfully remove the uncertainty caused by the claims asserted by Excalibur”. • Sheikh Adi-2 seems to have been drilled extremely rapidly, reaching a depth of 2754m after only about 3.5 months. Indeed, the rapidity of this drill seems almost to have taken JG by surprise – “The well IS being drilled 1.45 km to the north of Sheikh Adi-1” and “Sheikh Adi-2 WAS drilled to a measured depth 2,754 metres”(way beyond the original 2450m target) ... all rounded off with “As a consequence of good preliminary results from the logs and cores, the Company plans to conduct a well testing programme across 7 target zones”. My suspicions are that sometime within the next two months we will actually be hearing much more substantive news on OIP figures from Sheikh Adi (in which we have a massive 80% Net WI), and evidence as to why GKP and DGA have apparentrly thought for quite some time that Shaikan and Sheikh Adi are connected. • There seems no sense of urgency to drill SH-7. JG says “we plan to spud Shaikan-7 during 2013”, whereas the May 2012 presentation on P10 shows it as being scheduled for January 2013. And that same presentation refers to a 2012 target to “Increase Shaikan EWT output to 30 – 40 kbopd to ramp-up export and domestic sales”, while now it appears that it is simply “expected by mid-2013”. These statements are perhaps rather telling in their vagueness. • Even Akri-Bijeel seems to lack the importance that had been implied since November 2011 when TK first informed Reuters “We’ve got a lot of interested parties, but we have not identified a purchaser. “We haven’t gone to the bidding process yet. It’s in the data room process, data gathering and identifying interest.“ http://www.iraq-businessnews.com/2011/11/14/gulf-keystone-sees-interest-in-akri-bijeel/ Apparently, now instead “The Group is evaluating the ongoing process of the sale of the Company's 20% interest in the Akri-Bijeel block as the forthcoming results of the three wells currently being drilled and planned early production from the Bijell discovery are to be taken into consideration.” That is all fair enough, except that I thought the main reason for selling Akri-Bijeel was to contribute to a much more healthy balance sheet. Maybe, that no longer matters! So, overall I find it impossible to avoid the feeling that GKP could have made far more of certain key positive events in this latest RNS... if they wanted to, and that they seem remarkably unconcerned by what would normally be regarded as disappointments... even minor ones. Maybe of much greater importance than what they do say.... is what they don’t!! And perhaps what used to be at least a desire to dress things up in the most attractive way possible so that GKP was indeed the most popular girl at the dance, has been superceded. Maybe the ‘belle of the ball’ is now rather tired of showing everyone just how great she is. It could be that she just “knows” it..... and is no longer the least bit concerned about putting on vast amounts of make-up. I sincerely hope that her vanity, or rather Todd's, is not in some way misplaced. AIMHO and please DYOR, GLA, scaramouche ============ 23-07-12 Re: From advfn on 23bbls. GKP.L 46 View Author's profileAdd to favouritesIgnoreAuthor's posts The author has omitted to use an average oil saturation and a formation volume factor to convert from reservoir bbls to stock tank barrels. This explains why the DGA number is lower. Having said that there is still scope for the OIP to increase beyond the latest 13.7 Bn figure (will cover later). Shaikan-what is it worth ? GKP.L 59 Unfortunately this article misunderstands how the PC works. The author BlackGold assumes cost oil is 40% of the net reserves after royalty. Cost oil is only available against actual expenditures. Assuming an export oil price of $90/bbl or $81/bbl post royalty, for the contractors to claim 810 mm bbl of cost oil they would have to spend 810 x 81 = $65610mm developing the field i.e. $65.6 Bn in Capex and Opex. The field will not cost anywhere near that much to develop, even if it lasts 50 years. The 2.25 Bn bbl recoverable figure in the AGM presentation was not based on the latest OIP numbers as these were only released on the day of the AGM. It will have been based on the previous 7.5 Bn or 10.5 Bn OIP estimates. It is not even a GKP estimate. The estimate was made by IHS and according to Todd is intended for comparison purposes only. I tried to pin Todd down on this at the AGM but he slipped the question which was an attempt to confirm that GKP would not show such a number if they believed it was unduly optimistic. Otherwise they might be open to accusations of pumping the stock value. It was a strange thing to do ... to show a recoverable resources estimate by someone else but not be prepared as the field operator to comment on the validity of the estimate. Why lend it some credibility by showing it in a company presentation? Regards, Gramacho ============= bonobo77 View Profile Add to favourites Ignore Date posted 2012-09-20 09:23 Subject Re: Expectations View parent message Votes for this Posting Voted 47 times. Message opulentia ... if the claim is settled out of court, the claim disappears and therefore the 'uncertainty' engendered by the claim (e.g. will GKP lose a chunk of value to Excalibur?) disappears with it. There will be no 'uncertainty' of impending legal action in the eyes of a bidder ... only the certainty that GKP is increasing its numbers, developing its prize asset, selling (and being paid for) oil under the new agreement and is a sitting duck for a major(s). ============== bonobo77 Date posted 2012-09-20 09:23 Subject Expectations opulentia ... if the claim is settled out of court, the claim disappears and therefore the 'uncertainty' engendered by the claim (e.g. will GKP lose a chunk of value to Excalibur?) disappears with it. There will be no 'uncertainty' of impending legal action in the eyes of a bidder ... only the certainty that GKP is increasing its numbers, developing its prize asset, selling (and being paid for) oil under the new agreement and is a sitting duck for a major(s). Excalibur - outside the box scopic at last some are standing up to the cyber bullies so i"d like to tell you where i stand, like it or not, i bought back in at 143p and sold out last thursday at 245p with a £5k profit from a modest £7k outlay and before anyone sudgests i close the door on my way out i would like to guess that 4 out of 5 posters trade this share many times in a year and some in a week! i hope to re-invest near the end of the year this time with 12k.i know i"m taking a chance but i"ve seen this sp go up and down to the point of being what 30p up in the last 10 months or so. Excalibur is a red herring regarding rexs" claim but it won"t stop the city exploiting the sp just one last time, imho if so i want to be in again from a profitable position could be wrong and get left out in the cold but thats where trading gets you, if so well done to those who continue to hold, i will not of course be talking the sp down over the coming weeks not my style. ================ stuventus View Profile Add to favourites Ignore Date posted Thursday 18:00 Subject Excalibur - outside the box Votes for this Posting Voted 15 times. Message There have been hundreds of posts recently debating if GKP will settle before or take it through and go for the victory. Analyzing the pros and cons to GKP and over analyzing it to the n`th degree. Hmmm, anybody considered that Excalibur might not want to settle? or rather their backers might not want to settle? If its true (IF IF IF) that Excalibur were going around the City looking for the $9.5m they needed to continue, then do you not think that the backer will have had a rather large say in the strategy? We must not be arrogant as to think it is solely GKPs decision whether or not they want to settle. If Excalibur or their backers wish to see this to the end, then GKP cant to jack about it. Posts have looked at the theory that BG have accumulated as they are confident of the outcome - and that a T/O could follow soon should GKP win. Anybody considered other theories? Perhaps BG have actually been accumulating on behalf of somebody else.... what if it were Excals backers? perhaps the 5% threshold is not related to T/O at all....maybe it is a hedge against the court case....or maybe it is in order to make $$$ loads if Excal lose/ agree settle. The increase in value of 5.01% shares less the outlay of $9.5m costs would be a huge financial gain. (I am not putting this forward as what I think is happening, but just as an exercise to make broader our field of vision as to what is theoretically possible. FWIW I have no idea in going on I am just happy to sit and watch reserving grey matter capacity for other interests.) Just thought I would actually try and give a perspective from a different angle, interesting what you can theorise if you dont just look for what you want to see. And what was I reading earlier? posts about when the best time to settle would be, and chances of settling on day one. For goodness sake wake up, this is not some petty insurance fraud or GBH case. Do you think they have founded funding to the tune of nearly $10,000,000 just to waltz in on day one and say, you know what we dont have a case, lets settle and retire to the Gordon Arms for a burger and pint! This could be a fight for a stake in the most valuable asset ever discovered. Could we please consider that this is a genuine case, sure IMO from what I have read and heard in the pre hearings GKP (IMHO have much the stronger case). But GKP alone cannot decide to end this. Excalibur and their backers are still here for a reason, I have no idea what it is, but can we please acknowledge this point. All totally hypothetical and my own nonsensical ramblings. =========

Iraq postpones Islamic Capital of Culture project

Released on - Friday,03 February , 2012 -23:08Iraq has postponed a problem-plagued project for the holy city of Najaf to be the Arab world's Islamic Capital of Culture, the spokesman for Deputy Prime Minister Hussein al-Shahristani said on Friday.The announcement came after a spokesman for Grand Ayatollah Bashir al-Najafi, one of Iraq's top clerics, said the highest Shiite authority wanted the project postponed because of "financial and administrative corruption."The Najaf celebrations had been part of efforts by Iraq to put the country back on the cultural map, after the US-led invasion of 2003 led to years of brutal sectarian war."The project of Najaf being the Islamic Capital of Culture has been postponed at the request of specific sides," spokesman Faisal Abdullah said, without providing further details.Shahristani, the deputy premier for energy affairs, also heads the governmental committee responsible for the project."Najaf has a supreme position. It needs loyal efforts and should be pure of financial and administrative corruption," Bashir told AFP.He said that either the project should be postponed "until the completion of preparations (in) a suitable form for Najaf," or the marjaiya, the highest Shiite authority, "will not receive guests who participate in the project."A statement on the project's website gave a different explanation, quoting the culture ministry's Aqil al-Mindalawi as saying it would be pushed back by four to six weeks because the opening ceremony conflicted with the March 29 Arab summit in Baghdad.Government spokesman Ali al-Dabbagh said in an interview on Monday that the Najaf project faced difficulties."The preparation is not enough, and is not ready," Dabbagh said. "We are facing some difficulties and problems; we don't deny that we have problems."Officials said in late September 2011 that several senior figures had pulled out of troubled plans for the Shiite shrine city to become the Islamic Capital of Culture for the Arab world.Earlier, officials responsible for implementing the plans had admitted time was short, several projects were behind schedule and much of a half-billion-dollar budget had been hastily reallocated.==========================================================Waiting for the opening date ..! Iraqi intellectuals against postponement «Najaf, the capital of Islamic culture» Corruption .. Administrative confusion .. And ill for the reputation of Iraq! Wedding Alhandal Between hints financial and administrative corruption, and Theloahat mistake choosing Najaf, the capital of Islamic culture timely and organized; across intellectuals Iraqi major dissatisfaction of these confusions regulatory harm to the cultural scene in Iraq; especially as it cost the state 573 billion dinars, to organize the festival, which was supposed to take place on 16 March next, to continue until the end of 2012. Announcement delay Tdolth the media, as well as «the existence of intention by the ruling party to cancel the project Najaf, the capital of culture», the existence of corruption and wide when the discomfort of reference from supervisors, and the withdrawal of support of the supreme authority of the project; prompting the head of the project Najaf, the capital of Islamic culture Hussain al-Shahristani , to his declaration until further notice. Sistani refuses to receive the delegations He accompanied the news sources close to the office, the supreme cleric, showed strongly rejected for the reception and the Ministers of Culture of the Islamic, the existence of «corruption in the project Najaf, the cultural capital that has been allocated $ 500 million», stressing that the President of the ruling party Nuri al-Maliki and his team represented by Dr. Hussein al-Shahristani, «have made a lot of effort to convince the authority to receive delegates », but he refused to receive them strongly, so as not to give the« legitimacy »of this project is corrupt, according to his vision.While stressing the governor of Najaf, Adnan al, that the reasons for postponing the date of the activities of the project Najaf, the capital of Islamic culture to the middle of next May, to synchronize the date of the events with the time of the Arab summit in Baghdad, stressing that the postponement decision was issued by the Council of Ministers, at the request of Minister of Culture, showing the work to complete all the procedures for the establishment of events as scheduled. Why the summit In a telephone conversation between the poet Fares haram President of the Union of Writers in Najaf and a member of a committee of the project, «there is no notices or information about the delay in the official channels to address the Union of Writers, and everything related to delay, trading in the channels of information by officials in Najaf and the federal government in Baghdad, but what we do know is that the delay due to synchronization of the Arab summit in Baghdad with the date of the launch events «Najaf, the capital of Islamic culture», and this section seems to be a natural and necessary, but not aware of other causes. And completed his haram regretting the fact, saying: «This refers to the unfortunate reality of the intellectuals who are the last to know in the decisions that affect the culture, although they are primary planners and actors in their activities». On the ill-postponement to the reputation of the project of cultural of «Najaf»; denied haram to harm to the Najaf city and the date and completed a cultural tradition, but stressed that «affect the mechanism of action in the federal government in Baghdad, which has decided to determine the date of start and echoed it and put it off now!» He pointed out that the infrastructure in Najaf is not complete, and since 2003, was aware of the way, but without the reconstruction and rehabilitation of structures greeting; no theaters or halls, cultural institutions truly ready for opening day! Najaf .. And Baghdad 2013 ..! As for the activity of cultural events, he stressed the haram that the Union of writers and writers in Najaf will not stop its activities at all, and continues to organize, prepare and set up either before the start of the project, or beyond, especially those prepared to launch within the plan prior to the start of the project, noting that the opening «just a formal status international presence of the Secretary General of the United Nations and the Secretary-General of the Arab League and other officials and representatives of culture in the States ». He also pointed to the need to change course the federal government in Baghdad of its decisions and take more steps to study and arrangement, especially as the «Baghdad» was chosen as the capital of Arab culture for the next year! Stressing the need to pay attention to this imbalance, and take advantage of errors and the formation of committees carefully with the help of intellectuals. Delay correct decision Managing editor of the lighthouse, the writer Muwaffaq Rifai, said non-completion of infrastructure, saying: «I believe that the delay was a correction or Astdraka for error in the selection of a city in Iraq in these circumstances, the capital of culture and for any other activity, chaos in everything, and political instability, security, and the corruption that has become a feature of post-occupation Iraq invites us to consider that the delay was the right decision ». And completed: «penetration of corruption in all joints of the Iraqi state will waste inevitably all projects, including cultural, and that treatment can not be resolved by a political decision but does not alleviate it Aloaziat Almenbria, but in the social reform starts from the education reform and political start from the top of the pyramid of power, which cover up corruption and keep his cards to pressure and blackmail instead of him to bring those responsible to justice ». Timing error He emphasized that the imbalance in the timing is not the city, stressing the need to «very careful until recovering Iraq and be able to manage such activities», and of ill-postponement to the reputation of cultural, confirmed Rifai it hurts also to «the reputation of Iraq and its inability to organize such festivals , which is rife with intellectuals and artists, and will confirm published information about the extent of corruption in Iraq and rejected by the officials always, accusing the media exaggerating at times, and fabricating for political reasons at other times », but he also« The city of Najaf, I do not think that the reputation of the historical will be affected, so that all Muslims keep Najaf in their memory image of science and culture, and will remain so ». Serious deterioration The poet finest Mijbil Through all the news, saying: «If a decision is the delay actually, it is a great shame certainly, which reveals the serious deterioration which happened to us and our lives Cultural Rights, which would send wrong messages a lot about us to the Islamic countries that have chosen Najaf, the capital of culture, but alcohol is not power but in God! » Plaintiffs the opportunity and thieves Columnist Amir al-Rubaie blamed the «officials and the penetration of corruption, and lack of appreciation of the responsibility of such events by people who are far more about the culture and the political decision as well», indicating that the draft of these events «a golden opportunity for many of the Prosecutor of Culture and thieves», stressing that the imbalance in the decision to select the country under these circumstances in a timely, and that harms the reputation of Iraq, which Sttravq Artbakatha cultural news, with the time of the Arab summit conference in Baghdad! It should be noted that Prime Minister Nuri al-Maliki decided earlier to isolate and Undersecretary of the Ministry of Culture Jaber Al-Jabri from office and forwarded to the contract, against the backdrop of having to inform the offices of religious authorities in Najaf that the draft Najaf, the capital of Islamic culture in which some of the paragraphs that are incompatible with Islam, such as film screenings The lyrical passages, as reported by the source at the Ministry of Culture. On the other hand, said Head of Cultural Committee on Alfalh the media that the »project Najaf, the capital of Islamic culture in order because of the incomplete projects, and the reluctance of many of them most notably the theater and guest house», denying postponement of the project «because of the objection religious references to certain paragraphs of the project, as rumored in some ways Media ». The Directorate of Public Relations, Ministry of Culture of Iraq announced earlier that 100 countries will participate in the project Najaf, the capital of Islamic culture, including all the Islamic countries and the 55 countries. But sources said that «Dawa» thinking of cancellation of a project the cultural capital of Najaf through the Council of Ministers, under the pretext of Allkaat in the project And low rates of achievement of the lid on the government refused to receive the reference And delegations invited. Denied the organizers cancel the project entirely .. But notice the other suggests that the file will remain deferred and semi-canceled for an indefinite period!========================================================= بانتظار موعد الافتتاح..!مثقفون عراقيون ضد تأجيل «النجف عاصمة الثقافة الإسلامية»فساد.. تخبط إداري.. وإساءة لسمعة العراق! أفراح الهندالhttps://www.facebook.com/wara.fبين تلميحات بالفساد المالي والإداري، وتلويحات بخطأ اختيار النجف عاصمة للثقافة الإسلامية توقيتا وتنظيما؛ عبر مثقفون عراقيون عن استيائهم الشديد لهذه الارتباكات التنظيمية التي تسيء إلى المشهد الثقافي في العراق؛ خاصة أنه كلف الدولة 573 مليار دينار، لتنظيم فعاليات المهرجان التي كانت من المفترض أن تقام في 16 من مارس المقبل، على أن تستمر حتى نهاية العام 2012.إعلان التأجيل تداولته وسائل الإعلام، إضافة إلى «وجود نية لدى الحزب الحاكم بإلغاء مشروع النجف عاصمة الثقافة»، لوجود عمليات فساد واسعة فيه وانزعاج المرجعية من المشرفين عليه، وسحب دعم المرجع الأعلى من المشروع؛ ما دفع رئيس لجنة مشروع النجف عاصمة للثقافة الإسلامية حسين الشهرستاني، لإعلانه حتى إشعار آخر.السيستاني يرفض استقبال الوفودورافق ذلك أخبار مصادر مقربة من مكتب المرجع الأعلى السيد السيستاني بينت رفضه الشديد لاستقبال وزراء ثقافة الدول الإسلامية، لوجود «فساد في مشروع النجف العاصمة الثقافية التي خصص لها 500 مليون دولار»، مؤكدة أن رئيس الحزب الحاكم نوري المالكي وفريقه المتمثل بالدكتور حسين الشهرستاني «بذلوا الكثير من الجهد من أجل إقناع المرجع باستقبال الوفود القادمة»، إلا أنه رفض بشدة استقبال هؤلاء، لكي لا يعطي «الشرعية» لهذا المشروع الفاسد، وفق تصوره .بينما أكد محافظ النجف، عدنان الزرفي، أن أسباب تأجيل موعد انطلاق فعاليات مشروع النجف عاصمة الثقافة الإسلامية إلى منتصف مايو المقبل، لتزامن موعد انطلاق الفعاليات مع موعد انعقاد القمة العربية في بغداد، مؤكدا أن قرار التأجيل صدر من قبل مجلس الوزراء، بناء على طلب من وزير الثقافة، مبينا العمل على استكمال كافة الإجراءات لإقامة الفعاليات في موعدها المقرر.السبب انعقاد القمةوفي اتصال هاتفي بين الشاعر فارس حرام رئيس اتحاد الكتاب والأدباء في النجف والعضو في إحدى لجأن المشروع، «عدم وجود إشعارات أو معلومات عن التأجيل في القنوات الرسمية لمخاطبة اتحاد الكتاب والأدباء، وكل ما يتعلق بالتأجيل، يتداول في القنوات الإعلامية من قبل المسؤولين في النجف ومن الحكومة الاتحادية في بغداد، لكن ما نعرفه هو أن التأجيل بسبب تزامن انعقاد القمة العربية في بغداد مع موعد انطلاقة فعاليات «النجف عاصمة للثقافة الإسلامية»، ومن هذا الباب يبدو الأمر طبيعيا وضروريا، لكن لا علم بأسباب أخرى.واستكمل حرّام حديثه متأسفا على واقع الحال بالقول: «هذا يشير إلى الواقع المؤسف للمثقفين الذين يعتبرون آخر من يعلم في القرارات التي تمس الثقافة، رغم أنهم المخططون الأساسيون والفاعلون في أنشطتها». وحول إساءة التأجيل إلى السمعة للمشروع الثقافي الخاص بـ «النجف»؛ نفى حرام أن يسيء ذلك إلى النجف كمدينة وتاريخ ومنجز ثقافي عريق، ولكنه أكد أن ذلك «يمس آلية العمل في الحكومة الاتحادية في بغداد التي قررت تحديد تاريخ الانطلاقة وترددت فيه وأجلته الآن!»، وأشار إلى أن البنية التحتية في النجف ليست مكتملة، ومنذ 2003 كانت على علم بالمناسبة، ولكن دون إعادة إعمار وتأهيل للبنى التحية؛ فلا المسارح ولا القاعات أو المؤسسات الثقافية مستعدة فعلا ليوم الافتتاح!النجف.. وبغداد 2013..!أما بالنسبة إلى نشاط الفعاليات الثقافية، فأكد حرام أن اتحاد الأدباء والكتاب في النجف لن يوقف فعالياته أبدا، ومستمر في تنظيمها وإعدادها وإقامتها سواء قبل انطلاقة المشروع أو بعده، خاصة تلك التي أعدت لإطلاقها ضمن الخطة المسبقة لانطلاقة المشروع، مبينا أن الافتتاح «مجرد صفة رسمية دولية لحضور الأمين العام للأمم المتحدة والأمين العام للجامعة العربية وغيرهم من المسؤولين وممثلي الثقافة في الدول».ونبه إلى ضرورة أن تستدرك الحكومة الاتحادية في بغداد قراراتها واتخاذ خطوات أكثر دراسة وترتيبا، خاصة أن «بغداد» اختيرت عاصمة للثقافة العربية للعام المقبل! مشددا على ضرورة التنبه لهذا الخلل، والاستفادة من الأخطاء وتشكيل اللجان بعناية بمعاونة المثقفين.التأجيل قرار صائبمدير تحرير جريدة المنارة، الكاتب موفق الرفاعي، أكد عدم اكتمال البنية التحية بالقول: «باعتقادي أن التأجيل جاء تصحيحا أو استدراكا للخطأ في اختيار مدينة في العراق في هذه الظروف عاصمة للثقافة ولأي نشاط آخر، فالفوضى في كل شيء وعدم الاستقرار السياسي والأمني والفساد الذي أضحى سمة من سمات عراق ما بعد الاحتلال يدعونا إلى أن نعتبر أن التأجيل هو القرار الصائب».واستكمل: «تغلغل الفساد في جميع مفاصل الدولة العراقية سيطيح حتما بكل المشاريع، ومنها الثقافية، وأن علاج ذلك لا يمكن حسمه بقرار سياسي ولا تخفف منه الوعظيات المنبرية، إنما في إصلاح اجتماعي يبدأ من إصلاح التعليم وسياسي يبدأ من قمة هرم السلطة التي تتستر على الفساد وتحتفظ بأوراقه للضغط والابتزاز بدلا من إحالة المسؤولين عنه إلى القضاء».خطأ التوقيتوأكد أن الخلل في التوقيت لا المدينة، مشددا على ضرورة «التريث كثيرا إلى حين يتعافى العراق ويصبح قادرا على إدارة مثل هذه النشاطات»، وحول إساءة التأجيل إلى السمعة الثقافية، أكد الرفاعي أنه يسيء أيضا إلى «سمعة العراق وعدم قدرته على تنظيم مثل هذه المهرجانات، وهو الذي يعج بالمثقفين والمبدعين، وسيؤكد ما ينشره الإعلام عن حجم الفساد في العراق ويرفضه المسؤولون دائما، متهمين الإعلام بالتهويل تارة، وباختلاق ذلك لأسباب سياسية تارة أخرى»، مستدركا «أما مدينة النجف فلا اعتقد أن سمعتها التاريخية ستتأثر، ذلك أن جميع المسلمين يحتفظون في ذاكرتهم صورة نجف العلم والثقافة، وستبقى كذلك».تدهور خطيرأما الشاعر أجود مجبل فعبّر عن الخبر قائلا: «إذا تم اتخاذ قرار التأجيل فعلا، فهو قرار محزن بالتأكيد، وهو يكشف عن التدهور الخطير الذي حل بنا وبحياتنا الثقافية، وهو سيرسل رسائل خاطئة كثيرة عنا إلى الدول الإسلامية التي اختارت النجف عاصمة لثقافتها، ولاحول ولا قوة إلا بالله!» فرصة المدعين والسراقالكاتب الصحافي عامر الربيعي ألقى اللوم على «المسؤولين وتغلغل الفساد، وعدم تقدير مسؤولية مثل هذه الفعاليات من قبل أشخاص هم أبعد بكثير عن الثقافة وعن القرار السياسي كذلك»، مبينا أن مشروع هذه الفعاليات «فرصة ذهبية للكثير من مدعي الثقافة والسراق»، ومؤكدا أن الخلل في قرار اختيار البلد في ظل هذه الظروف وفي التوقيت، وأن ذلك يسيء إلى سمعة العراق التي ستترافق أخبار ارتباكاتها الثقافية، مع موعد انعقاد مؤتمر القمة العربية في بغداد!الجدير بالذكر أن رئيس الوزراء نوري المالكي قرر في وقت سابق عزل وكيل وزارة الثقافة جابر الجابري من منصبه وإحالته على التعاقد، على خلفية قيامه بإبلاغ مكاتب المراجع الدينية في النجف الأشرف بأن مشروع النجف عاصمة الثقافة الإسلامية فيه بعض الفقرات التي تتعارض مع الإسلام، مثل عروض سينمائية ومقاطع غنائية، وفق ما أفاد به مصدر في وزارة الثقافة. من جهة أخرى صرح رئيس اللجنة الثقافية علي الشلاه للإعلام بأن» مشروع النجف عاصمة الثقافة الإسلامية أجل بسبب عدم اكتمال المشاريع، وتلكؤ العديد منها أبرزها المسرح ودار الضيافة»، نافيا تأجيل المشروع «بسبب اعتراض المرجعيات الدينية على بعض فقرات المشروع، كما أشيع في بعض وسائل الإعلام».يذكر أن مديرية العلاقات العامة بوزارة الثقافة العراقية أعلنت في وقت سابق، أن 100 دولة ستشارك في مشروع النجف عاصمة الثقافة الإسلامية، من بينها جميع الدول الإسلامية والبالغ عددها 55 دولة. ولكن مصادر صرحت بأن «حزب الدعوة» يفكر في إلغاء مشروع النجف العاصمة الثقافية من خلال مجلس الوزراء، بحجة التلكؤات في المشروعونسب الإنجاز المتدنية للغطاء على رفض المرجعية استقبال الحكومةوالوفود المدعوة. ونفى القائمون إلغاء المشروع تماما.. ولكن الإشعار الآخر يوحي بأن الملف سيبقى مرجأ وشبه ملغى لفترة غير محددة!==========================You and مصطفى عبد الرضا like this.Fathia Alhaddad لماذا لا يعطون المدينة فرصة، التخبط الاداري موجود في كل شيء، اصلا ربما اصبح الطريق الوحيد لانجاز الأشياء. من قال ان فكرة "المدن الثقافية" فكرة عربية، وبالتالي ما تم هو استعارة فكرة معمول عليها من قبل ومدروسة، وان ظهرت اخطاء، فلا بد أن تظهر بعض الايجابيات أيضا ولو بنسبة ضيئلة... لنتساءل، هل المدن الثقافية العربية الأخرى التي اختيرت خلال السنوات الماضية كانت احس حالا من الناحية الادارية؟ أعتقد ان سوريا حظيت بسنة كانت فيها مدينة للثقافة، فهل كانت منظمة اداريا؟ اتمنى ان يعقد مختصا مقارنة علمية ويفيدنا.3 hours ago · LikeAfrah Hypatia عزيزتي فتحية كما هو مبين في التحقيق السبب الرئيسي رفض السيستاني استقبال الوفود لأنه يرى ثمة شبهة في كم الأموال المصروفة وقيمتها ما يجعل موافقته ورضاه قبول بهذا الاشتباه..ورفض استقبال الوفود أحرج المسؤولين..إضافة إلى ما أورده الكتاب من انهيار البنية التحتية تماما التي لا يمكنها إقامة الفعاليات تلك كافة واستقبال الوفود العالمية..3 hours ago · LikeAfrah Hypatia تم تأجيلها إلى مارس مع احتمالات الإلغاء الواردة..! وها نحن نتابع الحدث3 hours ago · LikeFathia Alhaddad أفراح ذكرتيني بمقولة اوباما في حملته الانتخابية Yes, we can ... يعني السيد السيستاني لماذا لا يبحث عن حل مناسب بدل الرفض التام. هذا برأي سلبي، ولا يخدم المدينة. على طاري البنية التحتية، قابلت العام الماضي دكتورة في جامعة بوسنية، قالت لي انهم ايام الحرب، كانوا يحيون اعمالا ثقافية ونشاطات أدبية وفنية في سراديب. المفترض ان نطوع الظروف للاستفادة من المناسبة، قدر الامكان. اذا كانت البنية منهارة، والناس عايشين على هذه البنية، فما الذي سيختلف ان اقيمت الاحتفالية، وما هي نسبة الوفود التي ستؤثر سلبا على البنية؟ للمناسبات الرياضية تقام مدن بأكملها، ونحن نؤكد عجزنا. عموما أتمنى أن تقوم "البنية التحتية" وكذلك "الفوقية" أيضا ليكون الكل في صالح المواطن.3 hours ago · Like · 1Afrah Hypatia ليت تنسخين تعليقك غاليتي في تعليقات الموقع لأن الرابط متوافر للقراء من العراق وجميل لو اقترن به لقراءته ..دمتِ وأتفق معك3 hours ago · LikeFathia Alhaddad لا اريد ان ادخل في متاهة القراء ... خليـــني هــنا وأنا مقتنعة بالتداخل معك .. كفاية علي ...========================

Enemy targeting Iranian unity: Cleric

Fri, 17 Feb 2012 14:26:49 GMT

Tehran's interim Friday Prayers leader says the enemies of the Islamic Republic have invested in preventing the mass turnout of the Iranian nation in the upcoming parliamentary elections.

Ayatollah Mohammad Emami-Kashani cautioned against enemy plots to disrupt the mass turnout of Iranians in the March 2nd elections, stressing that it is vital for the people to maintain a unified front.

He added that “remaining united and avoiding dissention” will bring honor for the country.

“For 33 years, they (the West) have imposed political and economic sanctions on us, but, as the Leader of the Islamic Revolution [Ayatollah Seyyed Ali Khamenei] and other officials have repeatedly stated, these sanctions have awakened the Iranian nation and in the end will backfire upon those imposing them.”

On New Year’s Eve, the United States imposed new sanctions against Iran aimed at preventing other countries from importing Iranian oil and transactions with its central bank.

European Union foreign ministers also approved sanctions against Iran’s oil and financial sectors on January 23, including a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states, and a ban on selling grains, diamonds, gold, and other precious metals to Tehran.

The United States, Israel and some of their allies accuse Tehran of pursuing military objectives in its nuclear program and have used this pretext to push for four rounds of UN sanctions and a series of unilateral sanctions against the Islamic Republic.

Iran has refuted the allegations, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty and member of the International Atomic Energy Agency, it has the right to use nuclear technology for peaceful use.

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Inflation heats up on gasoline prices
Fri, Feb 17 10:39 AM EST
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By Jason Lange

WASHINGTON (Reuters) - Gasoline prices jumped 0.9 percent in January, pushing overall consumer prices up and offering a reminder of the risks energy costs pose to the economic recovery.

The 0.2 percent increase in the Consumer Price Index reported by the Labor Department on Friday shows inflation remains largely under control, but a reading of underlying price pressures could reinforce caution at the Federal Reserve as it mulls further measures to help the economy.

The gain in gasoline prices, which followed three straight months of declines, reflected tensions in the Middle East that have pushed oil prices higher.

That has translated in to extra costs at the pump for Americans, leaving them less money to spend on other things.

After rising throughout January, the national price for regular unleaded gasoline prices rose to $3.58 a gallon in the week through Monday, according to the Energy Information Administration. It had started the year around $3.32 a gallon.

The Labor Department report showed so-called core prices, which strip out food and energy costs, rose 0.2 percent, which was in line with expectations.

However, it also showed core prices have risen an unexpectedly steep 2.3 percent over the past 12 months.

While the year-on-year reading on overall prices has been easing, the steady pick-up in core suggests inflation pressures are not subsiding as quickly as expected.

"The Fed will likely be cautious in calibrating any response to the softening headline inflation outlook," said Millan Mulraine, an economist at TD Securities.

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Graphic on January U.S. CPI: http://link.reuters.com/xyr66s

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At the close of its January meeting, the Fed said it would likely keep interest rates at rock-bottom levels until at least late 2014. Fed Chairman Ben Bernanke expressed caution about recent improvements in the economy and left the door open to further Fed bond buying to boost growth.

Recent jobs and factory data have eased worries economic growth could slow sharply in the current quarter.

A gauge of future U.S. economic activity rose to a 3-1/2 year high in January on solid gains in manufacturing, the Conference Board said on Friday, pointing to steady economic momentum.

U.S. stocks were little changed in early trading, with investors reluctant to continue buying a day after the S&P posted its best daily gain in two weeks. Treasury debt prices edged down and the euro rose against the dollar on hopes Greece was nearing a deal to secure a new rescue package.

Overall consumer prices rose 2.9 percent year-on-year after increasing 3.0 percent in December. That was in line with economists' expectations.

Moderating the monthly gain in core prices, used car and truck prices fell 1.0 percent and new vehicle prices were flat.

Also, despite the spike in gasoline prices, overall energy prices rose just 0.2 percent because electricity prices were flat and costs to consumers for piped natural gas services fell 2.9 percent.

(Editing by Andrea Ricci)

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Disappearing Tradition: Najaf abaya makers in decline

Ahmed Razzaq Mohammed, 31, weaves cloth for a hand-made Najafi abaya. (PHOTO: Prashant Rao)

by Prashant Rao

Note: This article was originally published by AFP on March 9, 2011. It can be found here.

NAJAF, Iraq (AFP) – Known across the region for its fine texture, the Najafi abaya is worn by all manner of VIPs from officials to oil-rich sheikhs. But the men who produce the hand-made cloth, inheritors of a generations-old trade, are increasingly going out of business.

“Let me tell you something,” said Kadhim, laughing bitterly while embroidering one of the full-length cloaks, spread across his lap. “If I could find a government job, I would stop all this.

“This work is too hard, and business is not good anymore.”

The bazaar where Kadhim has his shop, at the entrance to the shrine to Imam Ali, revered among Shiites, was once dominated by makers of this traditional garb.

Now many stalls sell trinkets, toys and other forms of clothing to pilgrims from mainly Shiite Muslim Iran, as the tradition of hand-made abayas — those designed and sold in Najaf are only for men — has seen a dramatic decline in recent years.

Kadhim Abu Chengal (R) embroiders an abaya as longtime friend and fellow abaya salesman Ahmed al-Ghazali sits alongside. (PHOTO: Prashant Rao)

Kadhim Abu Chengal embroiders an abaya to be sold in Najaf's "abaya market". (PHOTO: Prashant Rao)

Ahmed al-Ghazali (R) helps a customer try on a handmade Najafi abaya in the city's "abaya market". (PHOTO: Prashant Rao)



The 41-year-old Kadhim, whose family has been in the business so long that he takes the last name Abu Chengal or “father of the crochet hook”, does not know if he can hang on much longer.

“My sales of the summer abaya are down to around a fifth of what they were 10 years ago — I used to sell hundreds but now I sell dozens,” he moaned.



The 2003 US-led invasion that ousted Saddam Hussein unleashed a number of changes, from ending the UN trade embargo on Iraq and lifting the country’s own protectionist policies to pushing up the value of the Iraqi dinar.

The unrest itself caused a sudden drop in demand for abaya, as fewer customers dared venture to Najaf. And for what orders remained, traditional abaya weavers and tailors found themselves dramatically undercut, prompting many to scramble for secure government jobs.

The new competition came not only from imported textiles, now flooding the market alongside other imported goods, but from improvements in abaya cloth produced in domestic factories and much cheaper than its hand-made counterpart.

While an embroidered hand-made abaya sells in Najaf’s market for between 500,000 and 800,000 Iraqi dinars ($425-$675), factory-made or imported ones can be bought for as little as 75,000 dinars ($65).

“When I quit a few years ago, I was selling each abaya cloth for 120,000 to 150,000 dinars ($100-$125),” lamented Hussein Sayed, 63, a weaver who left the trade in 2005.

The hand-made item is labour intensive, he pointed out, taking one worker three to 10 days to weave cloth for one abaya, even before it is embroidered.

Hussein Sayed (C) talks about the decline of his hand-made abaya business in recent years, at Najaf's "abaya market". (PHOTO: Prashant Rao)

Hussein Sayed (L), whose hand-made abaya business collapsed in 2006, sits at a stall in Najaf's "abaya market". (PHOTO: Prashant Rao)

Ahmed Razzaq Mohammed spins yarn in his family's home in Najaf as part of preparations to weave a panel of cloth for a hand-made abaya. (PHOTO: Prashant Rao)



Meanwhile, “you could buy a piece of cloth for an abaya for 20,000 dinars ($17) — that price was too low, I could not compete,” said Sayed. “As soon as international trade began, our jobs were finished.”

Four of his six sons learned the craft but are now taxi drivers.

Razzaq Mohammed, 58, told a similar story — he dropped weaving to open a general store in 2006 when the craft no longer generated sufficient income.

“It was all we did, my family has done this for more than 100 years — I opened my eyes at birth, and my family was making abayas this way,” he said, standing by three looms kept in a separate room of his home.

“The sheikhs, the VIPs, they still want hand-made Najafi abayas. But the work is not continuous, it is not dependable.”

His son Ahmed, 31, still practices the craft, painstakingly unknotting yarn made from sheep wool, warping the loom and weaving abaya panels on the old frame with its series of weights and pulleys affixed to the wall and ceiling.

But the amount of work on offer is not enough. “I will leave all this if I find another job that covers the needs of my family,” Ahmed said.

Razzaq Mohammed separates yarns of sheep's wool in his home in Najaf as part of preparations to weave a panel of cloth for a hand-made abaya. (PHOTO: Prashant Rao)

Ahmed Razzaq Mohammed uses an old loom, operated with a series of weights and pulleys affixed to his family's home in Najaf, to weave a panel of abaya cloth. (PHOTO: Prashant Rao)

Ahmed Razzaq Mohammed separates knots in the yarn as he weaves a panel of abaya cloth using an old loom in his family's home in Najaf. (PHOTO: Prashant Rao)



A major boost in the Iraqi dinar made the Najafi abaya less attractive to overseas customers — whereas $1 bought around 3,000 dinars prior to the 2003 invasion, it now gets only 1,180 dinars.

And a change in Najaf’s own clientele has added to the impact. Before the invasion, Saddam allowed only a few hundred pilgrims into Iraq on a daily basis to visit holy Shiite shrines. Their number has now jumped to an estimated 3,500 every day, the vast majority Iranian, causing many bazaar merchants to rethink their products.

“It used to be all about abayas, but now we sell gifts for tourists,” said Yusuf Mohammed Ali, a former tailor who switched to peddling scarves, rings and prayer beads.

Hassan Issa al-Hakim, who teaches Islamic history at Kufa University in Najaf’s twin city, said the industry dates back more than 150 years and the Najafi abaya “represents the identity of the city”.

“It was a gift that would be given to political and religious leaders who visited, and it used to be exported across the region,” the 69-year-old said.

Even now, “there are those who make amazing hand-made abayas but they all depend on requests from clients.”

Back in the “abaya market”, as it is still called, Kadhim sat alongside his friend Ahmed al-Ghazali, both life-long abaya tailors.

“Look here,” Kadhim said waving into the bazaar. “All of this used to be for selling abayas.”

“Not anymore. People have moved on.”

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