Basra denies giving it the power of oil projects and emphasizes that al-Maliki did not "bless" them with anything

Basra denies giving it the power of oil projects and emphasizes that al-Maliki did not "bless" them with anything Thursday, 16 February 2012 09:21 Shafaq News The vice president of the provincial council in Basra Ahmed Sulaiti said to "Shafaq News" that "the news which appeared in some media on the delegating the provincial council in Basra, the power to signing contracts for oil projects by the federal government are unfounded." "all what made by the federal government during the recent visit of Prime Minister Nuri al-Maliki to Basra is to increase the amount of investment projects from 50 billion dinars to one hundred billion, while the real need to maintain for their projects is 500 billion dinars, did not give any power to the province as rumored in the media " He explained. He stressed that "Article 110 of the Constitution of Iraq confirmed that the powers of the provinces is more than the power of the federal government that have not granted by the Constitution only 9 powers," noting that "the powers of the provinces constitutionally guaranteed and not" a gift " from Maliki he grants to this province or robs from another ". The parliamentary oil committee member for the province of Basra, Uday Awwad explained , earlier, that " Baghdad government decided to give us authorization to sign oil contracts, and we know very well it is not serious about it, because the contracts from the jurisdiction of the Ministry of Oil, and the latter have the instructions and controls can not be for the owners force them to violate those controls, so as to not to adopt the law of oil and gas. " It is referred that The spokesman for Deputy Prime Minister for the energy-Shahristani, Faisal Abdullah, said, earlier, that "talking about giving the powers to Basra to sign oil contracts is groundless. Basra governorate is counted as most of Iraqi oil producer, and it has about 59% of Iraq's oil reserves increased by 67.9 billion barrels, and the largest five oil fields in the country which are the North Rumaila and South Rumaila, Majnoon and West Qurna and Zubair and its revenues of petrodollars amounted about $ 60 million per month, or $ 720 million annually. Despite the abundance of natural resources and many financial allocations that Basra gets every year, but the citizens in the province for years complain of the deterioration of services and their absence in some areas. ================ Agree with two US ports to work in units and receive a variety of cargo ships 22 Author: AAI Editor: BK, MO 13/01/09 23: 32 Press run/Basrah Iraqi ports co., announced Wednesday, for two US investment in units, docking at their ports ship loaded with 22 in quantities of sugar ration vocabulary specific and various other materials. Company Manager, said Imran rady, speaking to (run), "the two of us have entered investment in our ports by about a week, to provide services in accordance with the principle of partnership". Radi said that "the first company called Noi a company freely manage port stronghold in platform 13 and 14, and a remarkable company that works on transport organization in Umm Qasr", stating that "the two companies will contribute to activating the work of Iraqi ports of their accumulated experience and high technologies". The Governor of Basra behind Abdul Samad, he visited the United States, in December 2012, and called American investors and companies to work in the province, also met earlier in the day, the US Consul in Basra, William grant, and discussed means of activating the twinning agreement signed between Basra and the US city of Houston, and encourage us companies to work in the province, while "between grant, that several American companies will come to Basra to work in various fields such as health, sports, oil ports, according to US officials and the (range). On a related level, the Director tells the port company, Anmar, a (range), "22 different ship docked cargo, today, in the ports of Basra", pointing out that "six commercial vessels of different nationalities loaded with sugar, and various containers docked today at the port of Umm Qasr (60 km west of Basra)". NET, said that "six vessels were Panamanian nationality TRANS OKin load 20,500 tons of imported sugar for the Ministry of trade, and a Panamanian ship Normandy nationality also cargo container, ship 481 Rani Singaporean nationality with 127 container, and the ship Maersk Regency Hong Kong citizenship with 242 container, and steamer (thorboin) Malta nationality miscellaneous cargo, and the ship (BBC) sexual antako load variety." NET, explained that the "port of the commercial bastion (central Iraq) today, received seven commercial vessels loaded with Iranian nationality cement and materials". The Basra governorate, (its 590 km south of Baghdad), comprising five commercial ports near stronghold of the oldest port city center, which was created by the British army in 1914, and was used for military purposes and handed him over to the Iraqi authorities in 1937, and had the Czech company which holds the updated design basis for Basra, widely criticized for its proposed last year 2011, repeal the port which is located near the headquarters of the General company of ports. Other commercial ports are the port of Umm Qasr which established in 1965, the Ministry of transport has announced the 2010 we the southern and northern ports, while 1989 project at the port of Khawr al-Zubayr, and is the second generation of the ports it contains industrial docks and warehouses of iron ores, phosphates, urea fertilizer, and in 1976 was the establishment of Abu flous port on the West Bank of the Shatt al-Arab in Khasib district, is a small port with its inability to accommodate large vessels because of the deterioration of the deep channel The Shatt al-Arab and the large sunken naval pieces, while the port of FAO which would be the sixth

RIL in talks to sell Iraq assets to Chevron

Author pathai View Profile Add to favourites Ignore Date posted today 08:15 Subject Votes for this Posting Voted 7 times. Message http://epou.net/?p=31144 Posted by Eta Phi Sports on Jul 18, 2012 in Military | 0 comments Reliance Industries (RIL) is in talks with Chevron Corp, the US oil behemoth, to sell its assets in war-ravaged Iraq at a valuation of close to $200 million. The deal is likely to give RIL a 15 times return to what it paid in 2007. An RIL spokesman declined to comment. Analysts, however, are doubtful whether a sale will be easy considering the political environment in that country. Reliance Exploration and Production DMCC, the overseas conventional oil and gas subsidiary of RIL, had bought a 100% stake in the Rovi and Sarta blocks in Kurdistan (north of Iraq) in 2007 for a signing amount of $15.5-17.5 million. This was bought from the autonomous Kurdish Regional Government and the contract had an option for a 15% interest to be exercised by the local Kurdish oil company. Unless exercised, RIL was allowed to hold complete interest in the two blocks. Later in May 2010, RIL’s stake in the block reduced to 80% when the self-ruled Kurdish government arbitrarily assigned a 20% stake to Austrian oil firm OMV Petroleum Exploration GmbH. While it was not immediately known whether RIL was compensated later for the 20% stake given to OMV, at $200 million deal for the two blocks, RIL would see an appreciation of 11-13% to the original signing amount it paid five years ago. This could turn out to be even higher at more than 15 times if only 80% of the originally paid value of the block is considered, if RIL was compensated for the 20% stake assigned to OMV. A senior analyst with a reputed international brokerage said it is good if a RIL walk out of Iraq but the question is whether it will be able to do so or not. “Iraq is a politically disturbed region and there is no clarity on the accuracy of the reserve projections for the two blocks. therefore, the Kurd asset acts more like a distraction than value addition for RIL,” he said. He said the company’s current focus should be to restore D6 gas field in India and US shale gas venture. The Rovi and Sarta blocks in Kurdistan are spread over an area of 517 and 607 sq km, respectively, and estimated to hold around one billion barrels of oil reserves. they are said to have almost 80% oil bearing structure and RIL had planned to drill four wells to a target depth of 4,500 metres, say reports from international media. DNA could not independently verify these details as RIL declined to comment on the nitty-gritties of the blocks. According to the company’s 2011-12 annual report, the company’s overseas subsidiary had undertaken well testing in the Sarta block during the last financial year, but it did not mention anything about the Rovi block. Currently, RIL has interests in 10 blocks under the conventional oil and gas portfolio overseas, including three in Yemen (one producing and two exploratory), two each in Kurdistan, Peru and Colombia and one in Australia. this cumulatively stands at total hydrocarbon acreage of 51,000 sq km. In the last fiscal, the company relinquished its interest in Oman -Block 18, Oman – Block 41 and East Timor Block-K where REP DMCC had 70%, 75% and 75% participation interest respectively, said its annual === Chevron Secures Major Deal in Kurdistan, But More is to Come 19/07/2012 18:17:00By HAWAR ABDULRZAQ ALI Font size: RUDAW EXCLUSIVE: ERBIL, Kurdistan Region -- Chevron’s acquisition of Reliance is part of a new wave of major oil and gas deals with Erbil and with these developments Baghdad policy of deterring Oil and gas investments in Kurdistan has ended for good. Reliable sources (from diplomatic, political and industry circles), who prefer to remain anonymous, have confirmed to Rudaw that several top league international oil companies are following ExxonMobil and have signed or are about to sign big new contracts with Kurdistan. In addition to the Chevron deal, which was announced by the US company today, new deals are in the pipeline with the French company Total; a Russian state controlled company; and possibly the Norwegian company Statoil. Both Total and the Russian company are believed to have some other investments in the south of Iraq under contracts signed with Baghdad, but Statoil has already pulled out of a big oil field in Basra due to poor contracting conditions and have said they prefer to work in Kurdistan instead. The Chevron deal involves the acquisition of the Kurdistan operated assets of the Indian Reliance Company, plus possibly the acquisition of many other unnamed interests from the KRG, as Chevron, just like ExxonMobil, sees itself becoming a large player in the Region. The details of the Total deal are still secretly guarded, but Rudaw’s well-informed industry sources are pointing to an agreement between Total and Marathon of the US, which has four contracts in the Region. The Russian state controlled company comes as a big surprise, and its deal involves a direct contract with the KRG for KRG’s remaining share of interest in the blocks operated by Western Zagros. These developments come soon after the recent decision of the Turkish authorities to grant permits for an oil and products trade with KRG, and the import of natural gas by the Siyahkalem company for power generation in Turkey. The gas import will be at 700 million cubic meters initially starting in the year 2014, which will gradually increased up to 3.2 billion cubic meters. According to the Rudaw sources close to Ankara decision makers, the scale of Turkish involvement in the KRG energy sector is gradually becoming clearer. These sources point to the existence of a major exploration deal between a Turkish state owned company and the KRG. It is understood that KRG has already agreed to award several contracts and approved other contractual partnerships in favour of an unnamed Turkish state company. Rudaw believes that TPIC is the main players in the deal. Potentially, this Turkish - KRG deal could be far larger than the deal forged late last year with ExxonMobil. These TPIC contracts point to a well-planned Turkish strategic policy shift towards the KRG to underpin its own energy security by accessing the large resources so close to its own borders, and to cement Ankara’s rapidly developing and growing economical and political ties with Erbil. For sure, KRG has now become potentially a big energy player in the region. Critics and doubters may be silenced by these latest KRG achievements, as these appear to vindicate KRG’s consistent and determined contracting and investment policies.

These new waves of major contracts, are likely to embarrass the anti-KRG oil policy makers in Baghdad who will struggle to explain the IOC’s vote of confidence in Kurdistan. A senior oil executive told Rudaw: “They will now realize that their tactics to deter investments from Kurdistan have totally failed, the KRG oil policy is here to stay, and to put it simply Erbil has won, and Baghdad oil policy makers have lost the argument.”

================= You are here: Home » Business » Companies » Chevron announces KRG block buy Chevron announces KRG block buy American firm Chevron on July 19, 2012, announced it purchased two blocks in Iraq's Kurdistan region held by India's Reliance. (JUSTIN SULLIVAN/Getty Images) By Ben Lando of Iraq Oil Report Published July 19, 2012 Chevron ended days of heated speculation Thursday, confirming it will take over Indian firm Reliance's two exploration blocks in Iraq's semi-autonomous Kurdistan region. In a statement, the second-largest American oil company said it "completed a transaction to acquire ... Reliance Exploration & Production DMCC's 80 percent interest and operatorship of the production sharing contracts (PSCs) covering the Rovi and Sarta blocks." Neither the companies nor the Kurdistan Regional Government (K... == Tensions Rise as Kurdistan Trucks Oil to Turkey Posted on 13 July 2012. Tags: Exxon, Exxon Mobil, ExxonMobil, KRG, Kurdistan, oil contracts, oil exports, Turkey By John Lee. Turkey has started importing the crude oil from the Kurdistan Region of Iraq, and will hold negotiations over direct sales to the natural gas. The Turkish Energy Minister said in a press conference on Friday that “Turkey has started importing five to ten trucks of crude oil per day from Kurdistan, and the quantity will increase to between one hundred and two hundred per day“, according to AIN. The spokesperson of the government, Ali al-Dabbagh stated in a press statement on Wednesday that “The Council of Ministers regards the export of oil by the KRG to Turkey as illegal, and Turkey must not allow it because it is responsible for this issue.” AKnews quotes, Samira al-Moussawi, an MP from Hussein al-Shahristani’s parliamentary group as saying, “the Kurdistan region, in cooperation with Exxon Mobil, is smuggling oil to foreign countries including Turkey and Iran without agreement with the government, and this is an encroachment on the constitution and the laws.” U.S.-based private intelligence consultancy Stratfor observed: “Ankara’s approach of offering concessions and projects to both Baghdad and Erbil seems to be gaining ground … Wednesday’s announcement represents an important leap forward for Turkey’s ambitions in Iraq and, if successful, will make Turkey the premier enabler of foreign investment and development plans for both northern and southern Iraq.” (Sources: AIN, AKnews, UPI, Reuters) (Picture: Trucks queueing at the Iraq-Turkey border) =============== Hello all, Overall, all of the recent big swings stink of market manipulation to me. Quite by whom is an interesting point for debate. Some think that certain hedge funds are preying on the volatility of GKP and using the perceived 'news drought' as an opportunity to short the hell out of it. A couple of very good sources of mine both believe that the recent drop to 140p was facilitated by a couple of English hedge funds and masterminded by one (odious IMO) individual. They both (independently) called the 'target' of 140p when we were sat around 170p. When I saw it all happen and witnessed the following recovery (over the next 4 market days, and on the back of NOTHING significant), it confirmed to me more than ever that larger forces are at work in one way or another… A massive unexplained drop and then a miraculous 50% (!) rise in four days of trading. I would say that such a play, even by the likes of the opportunists that seek to exploit GKP, the 'punter's favourite' (a phrase which I vehemently dislike), was actually quite audacious. I would almost admire such audacity if weren't backed by such bentness and greed. Another theory seems to be that a handful of HNWIs have privileged access to a 'second tier' of information and knowledge via the IIs, are using this to day trade and essentially (from my understanding of this theory) act as a multiplier to the movements of the SP, whilst gaining from 'second tier' information. Or perhaps there are much larger forces at work? Perhaps a potential bidder (or bidders) are exerting their own power to suppress the SP as they accumulate shares in order to essentially provide a discount to their bid when it is (finally) made? Whichever way you perceive it - it's ridiculous and it's very hard to decipher and make real sense of. We announce a further significant upgrade to the OIP at Shaikan - and we get (another) brief rise up to a high of 243.5p and then a drop back to the 200p bracket and slightly lower. What was the drop based on? Literally pick an excuse - there are many that could be levelled by many thinkers but all of them stack up to jack shiet for me. I'm confident that those 'in the know' will have made plenty of money on both the way up and the way back down. We could have announced 25BBO+ at P50 and I think we would have seen a similar sequence of SP events. I believe that this SP behaviour will continue and we will remain a cash cow for the market (at least to a large extent) until the 'big oil' starts to really talk. I'm talking about renewed rumour regarding one or many of the majors that now, remember, completely surround our blocks. Or even better, a confirmed bid. The former could still allow 'the players' some leeway to play with the SP to a certain extent. The latter would allow very little room for such manipulation, if any at all. Having said that though - quite a few here have stated that they are now of the belief that GKP genuinely have the desire and appetite to 'go it alone and become a major'. At the AGM Todd apparently said to expect less news via RNS as we are entering a 'development phase'. Perhaps Todd et al are batting away bids and making plans to carry on with the 'E' but further embrace the 'P'? After all, we've done a great job of the exploration phase up to now (in purely operational terms) , and we're apparently (Todd at the AGM) fully funded until the end of 2013… *ahem*… middle to end of 2013. Thanks for the correction, Ewen. So… here's a reminder of GKP's ambition to 'go it alone and become a major' from a historical standpoint - as well as a reminder of the 'two plans going forward', with regard to development strategy from our company. Both of the following are interviews with John Gerstenlauner. In my view, the man cannot lie. 1) The first was published by ProActive Investors on 16th November 2010. It was a generic interview but gives a great perspective on where GKP were back in 2010, to where we are now. Please listen to it all - as even if you're a long term holder and you've seen it before, I think that it will help give you perspective as to where we are right now. Watch from around 8 minutes and 40 seconds in to see John's thoughts on the company's overall aspirations at the time. http://www.youtube.com/watch?v=vtQ3dQVt_Gs&feature=related Also note that the SP was 193.5p at the time of that interview in November 2010. Shaikan's reserves at that time stood at 4.2BBO on a P50 basis. There were no majors in Kurdistan, and the political risk was as such relatively massive. The OIP at Shaikan is now more than 3 times that, and we find ourselves encircled by supermajors in Kurdistan. We have witnessed some serious progress there, and what 'value' has it added to our company? According to the close on Friday - 0.5p. 2) The second was published by Oilmatters in mid November 2011. Again - if you've heard it before, please take the opportunity to re-listen to it. If you haven't heard it before then pay particular attention to John's explanation of the two development plans that GKP had submitted at that time. http://www.platts.com/IM.Platts.Content/insightanalysis/podcasts/oilmatters/archive/2011/nov/oilmatters111711.mp3 I transcribed the most relevant quote from this interview as I see it, to give some context as to how the land currently lies: '(JG) Even though we're running the business like we're gonna have it forever, we have to be prepared for the probability, or at least the very strong possibility that we're gonna get bought. So, not knowing what the timing of any that would be, and we're not being pro-active about selling ourselves or anything like that, but it just seems prudent that if you have a development plan that you're working on now that will not be submitted for about a year - you better have two of them. So what we have, we have a limited capex development plan for Gulf Keystone, and we have an un-restricted resource type development plan that we can submit at the last minute, or will be able to submit at the last minute, for a company with unlimited capex.' In short, unless Todd, John et al have had a major change of heart, I still think that they are doing exactly as JG stated in the interview and 'running the business like we're gonna have it forever'. When the time comes to implement 'Plan B', it's there and ready. I don't believe that it will be implemented by GKP. After all - it wasn't designed to be! I just cannot see that GKP have the appetite to go it alone (they've always been clear on stating up until now that they don't), and I cannot see the KRG being content with having an outfit like GKP being the operators for 'The Crown Jewel' in Kurdistan. The block that they see providing half of the country's oil. Oil that they want to get out of the ground as quickly and efficiently as is humanly possible and with the highest level of expertise imaginable. Who would be better positioned to facilitate the KRG's ambitious fast-track plans for production? Exxon/Chevron/Sinopec etc - or GKP? I know my answer… Your Exxons/Chevrons and Sinopecs won't be wringing their hands with glee at the current SP with the belief that they will be able to pick up the bargain of the century and stick in a bid for £6. Not in my opinion. They make their valuations in a far more realistic fashion and will be viewing an asset like Shaikan as it should be viewed - as something so enormous that it will give th em a significant edge against their competitors. This is also (IMO) why we have Perella Weinberg and Strand on board. I do go on about them I know, so I'll just link back to an old post from me and say that my views remain the same. http://www.iii.co.uk/investment/detail?code=cotn%3AGKP.L&display=discussion&action=detail&id=9413755 The only caveat that I will apply to supermajors' valuations re: a confirmed offer, concerns how any of these HUGE companies would justify an initial bid (to their shareholders) of say, £10 if our current 'market value' was still sat sub £2. If the 'end game' is to be an auction (and Todd has stated that it will be on more than one occasion), then the first bid could be low in theory. Say Exxon made a public bid for the company for £6. They may feel that they could justify that to shareholders with our ridiculous OIP figures and more importantly it would get the ball rolling. Cue Chevron - They don't need to worry so much about their shareholder's thoughts as one of their direct rivals has just put a market value on it. It's then much easier for Chevron to stick in an £8 bid and justify it to their shareholders. Then it's much easier for all parties to 'get involved'. At least those can afford to… (Chinese, anyone?) The above is, of course, an ideal scenario and an open bidding process (a la Cove Energy) would suit us well I feel. In all truth who knows - I just really cannot see our company being around even by the end of the year. But then many people have thought similar in the past and whilst doing some research yesterday I stumbled across an old post from Aimvpr. It's from 16th November 2010, and entitled 'I'll eat my hat…' : http://www.iii.co.uk/investment/detail/?display=discussion&code=cotn%3AGKP.L&threshold=0&it=le&action=detail&id=7272129 I sincerely hope that Aimvpr managed to digest his hat OK. He must have had terrible indigestion on New Years day. The landscape has changed considerably since that poster's excited prediction was made, and it seems to me like many blocks have slid into the correct places since. But when you sense imminence, time passes more slowly. We shall see. Just my thoughts, GLA, DYOR and all that. Regards, Axo ================

Iran delegation escapes attack in Iraq; Turkish to leave Basra

Wed Jun 22, 2011 1:23PM
Iran's Deputy Oil Minister Alireza Zeighami
A visiting Iranian Oil Ministry delegation has reportedly escaped a terrorist attack on the outskirts of the Iraqi capital, Baghdad, unscathed.


The delegation's vehicle was attacked by gunmen on Wednesday.

The Iranian delegation is unharmed and the attack has not changed their itinerary, Iranian Oil Ministry website Shana reported.

Headed by Iran's Deputy Oil Minister Alireza Zeighami, the mission is in Iraq to discuss the Islamic Republic's potential long-term exports of diesel and other oil products to its western neighbor.

The attack took place after the delegation met with officials from the Iraqi Ministry of Oil and was heading to the Iraqi Ministry of Electricity.

Tehran would be exporting some three million liters (792,500 gallons) of diesel for Iraq's power stations on a daily basis, should the visit result in an agreement.

--

Iraq, Iran, to sign agreement soon to settle their suspended problems
6/22/2011 1:22 PM

BAGHDAD / Aswat al-Iraq: Iraq’s Foreign Minister, Hoshiar Zibary, has said on Wednesday that Iran and Iraq would sign an important agreement soon to overcome all the suspended problems between both countries.

“Iran and Iraq will soon sign an important agreement that will overcome all the suspended problems between the two countries,” the semi-official Iranian Mehr News Agency, quoted Zibary as saying during a meeting with the Chairman of the Iranian Shoura Council, Ali Larijany in Tehran on Tuesday night.

“Iran is playing a positive role in Iraq and there is no objection for the strengthening of relations between the two countries,” Zibary said, highly assessing the “assistance, granted by Iran to the Iraqi people.”

On his part, Larijany said that “the Iranian government would care for the fate of the Iraqi people, looking forward for the establishment of an independent, free and sovereign state in Iraq.”

Iraq’s Foreign Minister, Hoshiar Zibary, began an official visit to Iran on Tuesday, leading a high-level delegation, to discuss the political developments in the Region.
==

Kuwaiti group seeks investment in Basra
6/19/2011 9:34 PM

BASRA / Aswat al-Iraq: Basra's Investment Commission announced today that a Kuwaiti group visited its premises to show engineering designs for a number of projects, in addition to be acquainted for possible investment projects in the province.



Director of the Commission Haidar Ali Fadhil told Aswat al-Iraq that the delegation proposed a palm tree plantation, concrete factory, and 5-star hotel on Shatt al-Arab banks.



Both sides discussed possibilities of investing Iron and Steel Factory in the province as well as solving its hindrances.



Fadhil added that "proposed to them building a strategic recreational city with a space of 300 donums.



The group, BouKhamseen, is one of major 17 international companies specialized in housing, hotel building, infrastructure, water and oil, with big investments around the world.



Kuwaiti Chamber of Commerce made a conference last April, during which Iraqi and Kuwaiti businessmen discussed means of investment and developing Iraqi-Kuwaiti economic and trade relations.

===

Aswat Al Iraq / Economy , Basra
Basra Administration discusses building of 80,000 housing units with Korean Ambassador
6/22/2011 12:25 PM

BASRA / Aswat al-Iraq: The Chairman of the Investment Commission for southern Iraq’s city of Basra has called on Korean companies to study the city’s investment map and enter in competence to build 80,000 housing units in the city.

The said issue had been discussed in a meeting between Basra’s Investment Commission Chairman, Haider Ali Fadhel and Basra Governor, Khalaf Abdul-Samad with the South-Korean Ambassador to Baghdad, Skim Park and his accompanying delegation at Basra Council’s office, with the presence of its Assistant-Governors, Nizar al-Jabiry and Dr.
Ahmed al-Hassany.

“The housing sector in Basra is in need of participation by large foreign companies, in order to share in the construction of the 80,000 housing units project in Basra, being part of a national plan to build one million housing units in Iraq, along with the need of the Province to restore the Korean effort, after its suspension in the past period, due to the conditions that passed over Iraq,” Adul-Samad said in a statement, copy of which landed in Aswat al-Iraq news agency on Wednesday.

On his part, the South-Korean Ambassador pointed out towards his government’s efforts to create “a twinning between Basra and the Korean city of Osan, inviting Basra Governor to visit Korea in the nearest possible time.”

===

FEATURE-For Baghdad's poor, city garbage brings in the bread

22 Jun 2011 16:45

Source: reuters // Reuters
RTR1MP1A

Iraqi teenagers walk in a rubbish dump in Sadr City, Baghdad, February 22, 2007. REUTERS/Kareem Raheem

* Collecting empty bottles, cans provides meagre living

* Garbage pickers in Baghdad dump are mainly children

* Despite oil potential, 23 pct of Iraqis still in poverty

By Aseel Kami

BAGHDAD, June 22 (Reuters) - Iraq's leaders hope the country's still largely untapped oil wealth can one day rival Saudi Arabia and provide a decent living to its citizens after years of conflict and chaos.

But for 12-year-old Abbas Mohammed and his family, it is used plastic bottles and empty aluminium cans that keep them alive. Mohammed spends his school summer holidays picking through a Baghdad garbage dump so he can sell the discarded items and help support his family.

In the refuse dump near Abbas's home in the Iraqi capital's impoverished district of Sadr City, men, women and children swarm over the stinking piles of garbage.

Mohammed, a slim boy dressed in grubby clothes, runs with other children to greet the arrival of trucks carrying fresh rubbish, waiting anxiously for them to unload so they can start raking through the refuse despite the smell and the dirt.

"We earn our living through this garbage," shrugged Mohammed, holding a big sack and a metal hook.

"We start work in the morning, we collect Pepsi cans, plastic bottles and then we sell them. I have been working in this place since I was three years old," he told Reuters.

Sadr City, a warren of narrow streets and low-built slums housing more than 3 million people, is a sprawling area of poverty east of the Tigris river in the Iraqi capital.

Once known as Saddam City, the Shi'ite stronghold suffered years of neglect under the Sunni-led government of Saddam Hussein, who was toppled in a 2003 U.S.-led invasion.

Oil producer Iraq, which is still struggling to emerge from years of war, chaos and sectarian bloodshed triggered by the invasion, has an official unemployment rate of 15 percent and another 28 percent of the workforce are in part-time jobs.

Despite its huge untapped oil and gas reserves and steadily rising oil output and revenue, 23 percent of the population live below the poverty line, according to the Ministry of Planning.

For Mohammed, life in Sadr City means long days during his school holidays scrabbling through the refuse in the scorching summer heat before selling his daily haul to a middleman.

He sells each kilogram (2.2 lb) of plastic bottles or soda cans for 250 Iraqi dinars (around 20 U.S. cents), earning between 2,000 to 4,000 dinars ($1.50-$3) a day.

His mother and one of his brothers work with him in and around Sadr City. The three of them bring in around $250 to $400 a month, meagre earnings to support a large family. The brothers only work during school holidays, but other children at the dump have left school behind to work full-time gathering garbage.

Mohammed's mother, Zubaida Khazaal, a mother of 12, said they were obliged to be garbage pickers because they are poor and her husband is unemployed because he cannot work.

"We do not have anything, we live in a mud house and my husband is sick," said Khazaal who wore an improvished cloth mask against the stench as she emptied a sack of bottles.

"We wish the government could help us."



CHILDREN MOST VULNERABLE

Popular anger over power outages, food ration shortages, corruption and government ineffectiveness is heating up the political climate in Iraq as Prime Minister Nuri al-Maliki's shaky cross-sectarian coalition considers whether to ask U.S. troops to stay on past an end-year withdrawal deadline.

Sadr City is a powerbase for Moqtada al-Sadr, a fiercely anti-American Shi'ite cleric whose Mehdi Army insurgents once battled U.S. and Iraqi troops during the peak of the sectarian conflict in 2006-2007. He opposes U.S. troops staying on and has threatened "military resistance" if they do.

Security officials expect insurgents and militias to try to test Iraq's forces when the U.S. troops prepare to leave.

As Iraq battles to emerge from the ruins of war, the U.N. children's agency UNICEF estimates nearly a quarter of Iraq's children -- over three million youngsters, the most vulnerable group in society -- scrape by on an income of less than $2.20 a day. One child in nine is working.

A recent International Labour Organization report listing dangerous jobs in which children are engaged across the world mentioned collecting garbage as one of the activities in which minors risked suffering violence and injury. [ID:nLDE75824P]

Mohammed wears a glove over his left hand to protect himself from sharp objects in the dump and his mother says she fears he could catch a disease. But she says she needs him to work.

At a location near the dump, a middleman supervises the ,toperation of a machine which compresses the plastic bottles into a wire-wrapped pack weighing around 300 kg (660 lbs).

The package will be sold to an Iraqi trader who exports the packs of plastic to Turkey and Syria. No industry has existed in Iraq to recycle bottles and cans, business experts say.

In Baghdad, the trade for export is a lifeline: "There are no jobs, so what else can I do but this. A lot of families depend on this business," said Haider Muhsin, 36, as he stood by the machine compacting plastic bottles.

Iraq has around 40,000 private small and medium-sized factories, but 90 percent of them are idle, said Hashim al-Atrakchi, chairman of the Iraqi Federation of Industries.

The 10 percent, or 4,000, which are functioning are not at full capacity after years of war and economic sanctions put in place two decades ago after Saddam invaded Kuwait.

Plastic manufacturing is patchy partly because many industries are just restarting and also require a stable supply of electricity. Iraq's national power sector is still in ruins and coping with frequent outages is a hefty business expense.

From the garbage heap of Sadr City, however, Mohammed dreams of a better future, when he can quit his garbage-picking job and spend more time on school work: "I want to complete my studies," he said, "And become a teacher."

(Editing by Pascal Fletcher and Alastair Macdonald)

===

Iraq's Proposed New Labour Laws

Posted on 23 June 2011



When tacking the problems of unemployment and illegal work practices, Iraq has a difficult balancing act to achieve.



On one hand, a civilised country cannot accept a situation where foreign labourers are tricked by traffickers to get them into the country illegally, and then told their pay will be a fraction of the minimum wage of $600 per month.



On the other hand, blanket quotas and restrictions on foreign workers increase the problems faced by legitimate businesses and workers, and slow the pace of development.

Iraq's parliament is considering new laws to limit foreign workers by forcing employers to hire at least as many Iraqis.



Legislation, of course, is only followed by the law abiding, and will not concern those who already operate outside the system. And as labour minister Nasser al-Rubaie points out, the problem is by no means unique to Iraq.



But imposing an arbitrary 50% limit on foreign workers, regardless of their conditions, is unlikely to solve Iraq's problems of unemployment and exploitation.

And remember that wherever your business is based, Upper Quartile and AAIB are here to help you. For more information please contact Gavin Jones or Adrian Shaw.

===

American companies discuss potential of investment in Basra
6/24/2011 5:24 PM

BASRA / Aswat al-Iraq: The U.S.
Commercial Attaché discussed with Basra's Investment Commission the real investment atmosphere in the province during a joint conference between the U.S.
Chamber of Commerce and the Iraqis.

The discussions concentrated on cooperation to create a stage of partnership between local and American companies.

The head of Basra's Investment Commission Haidar Ali Fadhil declared that the U.S.
delegation acquainted itself with the investment opportunities in the province through detailed studies.

He added that the conference was attended by eight American companies specialized in the fields of energy, industry, financing and others.

Fadhil disclosed that the province has two billion dollars allocated for infrastructure projects, which is available to all for establishing different projects.

He pointed out that many American companies were granted investment permissions, which working, now, in the vicinity of the city without foreign security protection.

On the other side, Basra's Governor Advisor for Housing Ali Abdul Kareem said that "local companies do not have the necessary expertise for bigger projects, particularly in the construction sector.
In addition, local companies lack modern equipment and suitable financing, and we therefore rely on the foreign investor."

He pointed to the importance of security stability in the province, which is a vital attraction factor for foreign companies.

"This is characterized with the participation of Chinese, Korean and Turkish companies in the province's projects," he elaborated.

A Global Capital International representative declared that his company began its work in Baghdad one a year ago in the Baghdad stock exchange and financial market.

"The main objective of the conference is to find real partnership between American and Iraqi companies in different fields," a member of the U.S.
Chamber of Commerce, Jason Seer, said.


He pointed out that Basra's governor expected a real economic development in the province, which could be ideal for U.S.
companies for their good quality products.

===

Iran to supply Iraq with gas oil to keep power stations running
23/06/2011 15:20
http://www.aknews.com/en/aknews/2/248154/

Baghdad, June 23 (AKnews) – Iran will supply Iraq with 1.5 million liters of gas oil in order to keep the country's power stations running, it was announced today.

The Iraqi Electricity Ministry said in May that a number of power stations may have to halt power production this summer due to a lack of sufficient fuel.

The fuel will be sold at market rate for one year.

Ministry spokesman Musab al-Mudarres said: "The imported fuel from Iran will generate 250 megawatts and this will contribute in solving part of the energy crisis in the country."

Although Iraq has some of the largest oil reserves in the world, it lacks enough refineries to even provide enough fuel for its domestic market.

There is a significant power deficit in Iraq with frequent black-outs and periods of planned power stoppages. Demonstrations erupted across Iraq in February to call for the provision of better public services. More consistent electrical power was one of the protesters' main demands.

Iraq’s current output is 9000 MW, but demand often hits around 14000 MW. During the summer months, with temperatures soaring as high as 50C and air conditioners on full-blast, the electrical grid cannot handle the country's needs.

It was announced in May that the network would be boosted by 380 MW by the end of this month by the updating of the grid and improvements to power stations.

By Jaafar al-Wannan

==

Ministry: Oil imports hinder Iraqi power generation
28/06/2011 14:43
http://www.aknews.com/en/aknews/2/249038/

Baghdad, June 28 (AKnews) –Half of the 800 million liters of oil Iraqi power stations burn up each day to meet domestic electricity demand is imported, says the Ministry of Electricity.

Ministry spokesman Musab al-Mudarres told AKnews that 400m liters are provided by the Ministry of Oil while the remainder is imported from Iraq’s neighbors; Kuwait and Iran.

The imported oil – constituting 50% of the ministry’s needs – poses a number of problems for the ministry, Mudarres explained.

“The ministry encounters administrative and bureaucratic obstacles that hinder the timely arrival of imported fuel at the power stations,” he complained.

In May, a number of Iraq’s power plants were shut down because of the late delivery of the oil necessary to keep them running.

In response, the Iraqi Ministry of Electricity set up a special committee to oversee the provision of fuel needed to meet rising domestic electricity demand during the summer months when temperatures often rise above 50 degrees Celsius.

The government is currently plowing money into the country’s electricity generating sector in a bid to meet the 14,000 mw needed.

With Iraq’s current generating capacity not exceeding 8,000 mw, many Iraqi homes and businesses remain without national grid power for several hours each day.

The poor provision of electricity was a central gripe in the wave of public protests that swept through the Iraqi provinces earlier this year.

Iraq’s power stations and distribution networks – already in poor repair after three decades of economic sanctions and successive wars - were further damaged during the 2003 allied invasion of the country and subsequent insurgent acts of sabotage.

The government estimates that annual investments of between $3bn -$4bn are needed to rehabilitate and update the country’s grid and power generating plants.

Reported by Jaafar al-Wannan

=

Iraq approves $365 million gas pipe deal with Iran
Posted by Staff WriterBudget & Investment, Middle-EastThursday, June 30th, 2011
http://www.nogtec.com/regional-news/middle-east/iraq-approves-365-million-gas-pipe-deal-with-iran/


Iraq’s cabinet has approved a $365 million contract with Iran’s oil ministry to build a pipeline to move gas from Iran to Iraq for power generation, it said.
The pipeline will pass through Iraq’s Mansuriyah gas field near the Iranian border in volatile Diyala province and will feed two power plants; one in Sadr City in northern Baghdad and another on the northern outskirts of the capital.
The pipeline was to be completed in 18 months, the Electricity Ministry said when it signed a memorandum of understanding for the project in May.
The ministers also approved the first payment for the project, 25 percent of the total value of the contract, the cabinet said in a statement issued on Wednesday.
Iraq has struggled for years with power shortages. More than eight years after the US-led invasion that toppled Saddam Hussein, Iraqis receive only a few hours of electricity a day from the national grid.
The shortage was a key complaint during recent nationwide protests. The Opec member is trying to step up its own gas production and signed an initial contract with South Korean group Kogas, Kuwait Energy Company, and Turkey’s state-owned TPAO last year to develop the Mansuriyah natural gas field.
Iran and Iraq fought an eight-year war in the 1980s in which hundreds of thousands were killed. Ties have improved since Saddam was ousted by the US invasion and a xxxxx-led government came to power in Iraq.

==

Basra Investments Commission demands lands for oil
9/27/2011 10:28 AM


BASRA / Aswat al-Iraq: Southern Iraq’s Basra Province’s Investment Commission has discussed with officials of the state-owned Southern Oil Company to reach means of joint cooperation, in order to achieve “logistic” projects for investment by foreign investment companies for the achievement of new oil projects.

“The Chairman of Basra Investment Commission, Khalaf al-Badran, has discussed with the Director of the Southern Oil Company means for joint cooperation to get further oil territories for their logistic investment chances, along with coordination with foreign investment companies to achieve logistic support for the oil companies,” the Commission’s media source reported on Tuesday.

Badran said that three leading international companies have expressed wish to build projects to store oil and fuel transportation close to oil terminals and to hammer down the obstacles and to coordinate with the Iraqi State Organization for Marketing of Oil (SOMO) to conclude agreements to ship and store fuel and establish new oil service projects.

The source said that the Director of the Southern Oil Company, Dhia al-Moussawi, has expressed readiness for cooperation with the Investment Commission and to offer investment opportunities by his company by foreign investment companies.

“The said plan shall be a promising marketing for the oil pipelines, due to the need of the Oil Ministry to expand oil pipelines in Iraq, whilst the local manufacture of such projects would be more economic,” he added.

Iraq’s Oil Ministry or its Southern Oil Company are in control on the majority of Basra’s territories, according to the Law on Projection of Hydrocarbon Fortunes, issued in Iraq in the 1980s.

Basra, the center of Basra Province, is 590 km to the south of Baghdad

========

Basra’s Investment Commission discusses cooperation with Iranian group
dinar daddy
on February 25th, 2012 by - No Comments
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BASRA / Aswat al-Iraq: The head of Basra’s Investment Commission announced that discussions were held with Iranian Kanal Group regarding the possibilities of bilateral cooperation. Khalaf al-Badran told Aswat al-Iraq that both sides tackled investment potentials in the province. He added that the first priorities of the commission are to have industrial projects, as well [...]

=========

Iraqi City to Expel Turkish Firms Over Accusations of Sectarianism

A man smokes a water pipe at a floating cafe on a ferry docked on the shores of the Shatt al-Arab waterway in Basra, 420 km (260 miles) southeast of Baghdad, May 24, 2011. (photo by REUTERS/Atef Hassan)

Reidar Visser Reidar Visser ‏ @reidarvisser

In Iraq, every province has its own foreign policy: Basra to Expel Turkish Firms over Sectarianism http://almon.co/ca via @hadeelasayegh

By: Ahmad Wahid posted on Monday, Apr 30, 2012

The city of Basra (the capital of the al-Basra province in southern Iraq) has threatened to halt Turkish construction and investment projects in the province after Turkish Prime Minister Recep Tayyip Erdogan made a statement accusing his Iraqi counterpart Nouri al-Maliki of fomenting sectarianism.
About this Article
Summary:
The Iraqi city of Basra has threatened to expel a number of Turkish construction firms in response to Turkish PM Erdogan’s accusations that Iraqi PM al-Maliki was fomenting sectarian tensions. Ahmad Wahid reports that the city’s administration is affiliated with the Iraqi PM’s party, and that Japanese and Korean firms are expected to fill the void.
Publisher: Al-Hayat (Pan Arab)
Original Title:
The Basra Government Threatens to Stop Working with Turkish Companies to Stop Dealing with Them in Response to Erdogan’s Accusing Maliki of Sectarianism
Author: Ahmad Wahid
Published on: Friday, Apr 27, 2012
Translated On: Monday, Apr 30, 2012
Translator: Naria Tanoukhi
Categories: Politics Analysis & Opinion Iraq Turkey

The State of Law Coalition, which is headed by Maliki, controls Basra. Coalition members fill the posts of governor and head of the Provincial Council of Basra, in addition to most parliamentary seats.

The head of the Basra Provincial Council, Sabah al-Bazouni, told Al-Hayat: “After the recent statements that have targeted the top of the Iraqi state, we received requests from members of the council demanding that pressure be exerted on Turkey to change its position on the political process.” He explained that “the pressure will be exerted be through suspending the projects of Turkish companies.” He added that “many Turkish companies are operating and have investments in Basra. We must have some role in responding to Turkey’s interferences into the affairs of the central government, which we see as our administrative reference.”

He continued: “The Turkish government should have known that political statements targeting Iraq and its sovereignty would affect the relationship between the two countries, especially in terms of construction and investment.”

Turkish companies are working in construction projects in Iraq, including the Basra Sports City project, health institutions, road development and international exhibitions. There are almost 80 Turkish firms operating in Basra.

Nujaifi sees Turkey as Mosul’s gate to the world. He notes that Turkey’s development and its attainment of the European standards serves as a guide for them and that they want to benefit from Turkey’s experience. For this reason, the Mosul (Ninawa) Governor’s Office, in conjunction with the Turkish Consulate in Mosul, is holding a Mosul Investment Conference in İstanbul on May 2-3.

The distance between Arbil, the capital of the Kurdistan Regional Government (KRG), and Mosul is a one-hour drive. The KRG relies on the advantage of being a federal region. Welfare, prosperity, stability and foreign capital… The semi-autonomous Kurdish region receives 17 percent of the oil revenues of Iraq. The number of Turkish firms has exceeded 2,500 in the region. Mosul, on the other hand, the second-largest city of Iraq after Baghdad, is far away from its glorious past. It is unable to deal with poverty. It fails to attract foreign capital. In comparison to the Kurdish region, the number of Turkish firms is just 11.

These threats come at a time when Basra (304 miles south of Baghdad) has signed a dual contract with South Korea. Basra also invited Japanese companies to come and replace the ousted Turkish firms.

Khalaf Abd-al-Samad, the governor of the city of Basra, was quoted warning Japanese companies against "partnering with Turkish companies because of Turkey's interference in Iraq's internal affairs, and the failure of Turkish companies to execute a few projects.” The statement added: “Turkish companies have failed to execute certain projects in the province, which reinforces the position of the government.” It is interesting to note that Basra previously threatened to become an administrative region independent from Baghdad, criticizing the government's performance in the field of reconstruction.

Erdogan accused Maliki of fomenting sectarian tensions. Maliki responded by calling Turkey an "enemy state."

Ankara summoned the Iraqi charge d'affaires on Tuesday, April 24, a day after Baghdad summoned the Turkish ambassador.


========================

DIARY - Turkey - to June 29
Thu May 17, 2012 6:39am GMT

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(All times are provisional and in GMT. For local time, add three
hours. This diary is updated every day, and new listings or
amendments are marked "*".)

KEY INDICATORS
DATE GMT/LOCAL INDICATOR PERIOD PRIOR
21/5 1430/1730 Debt stock April 519.9b
22/5 1130/1430 CPI forecast 2 week N/A
24/5 1130/1430 Manufacturing conf May 116.0
24/5 1130/1430 Capacity usage May 74.7%
29/5 1100/1400 Interest rates May 5.75%
25/5 0800/1100 Foreign visitors April -9.72%
1/6 0800/1100 TIM Export Figures May $11.4b
4/6 0700/1000 CPI m/m May 1.52%
4/6 0700/1000 CPI y/y May 11.14%
4/6 0700/1000 PPI m/m May 0.08%

4/6 0700/1000 PPI y/y May 7.65%
8/6 0700/1000 Industrial production April +2.4%
8/6 1430/1730 Treasury cash balance May -4.57b
7/6 1130/1430 CPI forecast 2 week N/A
11/6 0700/1000 Current account April -6.1b
*15/6 0700/1000 Unemployment Feb-April 10.4%
*15/6 0800/1100 Budget balance May +1.4b

THURSDAY, MAY 17
*ANKARA - President Abdullah Gul and Prime Minister Tayyip
Erdogan to meet Kurdistan Regional Government Prime Minister
Nechirvan Barzani in separate meetings.
*ANKARA - Erdogan to meet European Union Enlargement
Commissioner Stefan Fuele.
*ANKARA - Erdogan to separately meet Gul and Chief of
General staff General Necdet Ozel.
*ANKARA - Justice Minister Sadullah Ergin, EU Minister
Egemen Bagis and Fuele to hold a joint news conference. (1100)
ISTANBUL - Istanbul World Political Forum meeting to bring
together global and Turkish leaders. Until May 18.
*ISTANBUL - Central Bank Governor Erdem Basci to speak at
summit on Islamic finance. (0930)
ANKARA - Deadline to submit bids for privatisation of 20
percent stake of Ankara gas grid, owned by Ankara Municipality.

FRIDAY, MAY 18
*ANKARA - Gul to depart for United States to attend NATO
summit in Chicago.
*SOFIA - Erdogan to visit Bulgaria.

SUNDAY, MAY 20
*CHICAGO - Gul to attend NATO summit. Until May 21.

MONDAY, MAY 21
ANKARA - Central Bank to hold meeting with economists.

TUESDAY, MAY 22
ISLAMABAD - Erdogan to visit Pakistan.

WEDNESDAY, MAY 23
ASTANA - Erdogan to visit Kazakhstan. Until May 24.

TUESDAY, MAY 29
*ISTANBUL - Next hearing in trial of Fenerbahce Chairman
Aziz Yildirm and 92 other defendants in alleged soccer
match-fixing case.
ANKARA - Central Bank to hold monthly monetary policy
committee meeting.

MONDAY, JUNE 4
ISTANBUL - World Economic Forum on Europe, Middle East,
North Africa and Central Asia to focus on reform and inclusive
growth. Until June 6.

FRIDAY, JUNE 15
SILIVRI, Turkey - Hearing in trial of 365 defendants, almost
all serving and retired military officers, charged in alleged
2003 plot, dubbed "Sledgehammer," to overthrow government.

THURSDAY, JUNE 21
ANKARA - Turkish Central Bank to hold monthly monetary
policy committee meeting.

FRIDAY, JUNE 29
*ANKARA - Next hearing in trial of former president Kenan
Evren, 94, and retired Air Force commander Tahsin Sahinkaya, 86,
for executing Sept. 12, 1980, military coup.

NOTE - The inclusion of diary items does not necessarily
mean Reuters will file a story based on the event. For the
Reuters index of All Available Diaries, please click inside the
brackets:.