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Iraq Business News: Vast Exploration Hands Back Qara Dagh Block

Iraq Business News

All the latest business news from Iraq

Vast Exploration Hands Back Qara Dagh Block

Nov 16th 2012, 18:26

By John Lee.

Vast Exploration has announced that along with its consortium partners, Niko Resources and Groundstar Resources, it has entered into a relinquishment and termination agreement with the Kurdistan Regional Government to surrender their collective interests in the Qara Dagh Block (pictured).

Vast acquired a working interest in the block under a production sharing agreement signed in 2009. During the first exploration period, the operator, Niko Resources, conducted a seismic program and drilled one exploration well, which was not commercially successful. Subsequently, an extensive process was undertaken by the operator to find a suitable farm-in partner, which was ultimately unsuccessful.

Pursuant to the Relinquishment Agreement, and after settlement of outstanding expenses, Vast expects to recover a net amount of USD $3.25 Million within the next 12 months.

Mr. Sig Slotboom, President & CEO stated that:

“Although we are disappointed with the results of our joint venture in Kurdistan, we are pleased to be released from any further obligations on a mutually acceptable basis. In the near term the company will be seeking to reorganize and evaluate new E&P investment opportunities.“

In connection with entering into the Relinquishment Agreement, the company also announces the resignation of General Jay Garner (Ret) from its board of directors and appoints Mr. Robin Birchall as a new director.

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Iraq Business News: Maysan Province Seeks to Control Local Oil Fields

Iraq Business News

All the latest business news from Iraq

Maysan Province Seeks to Control Local Oil Fields

Nov 16th 2012, 18:26

By John Lee.

A member of the Energy Committee in Maysan Provincial Council has called on the Ministry of Oil to grant the province the right to take part in running the oil sector in the province, according to a report from AIN.

Ammar Nasrallah told the news agency:

“We call to apply the constitutional article No 112 which grants the oil producing provinces the right to participate in administrating the oil sector and form strategic policies … [The] Ministry of Oil violated this article through concluding contracts with oil companies without informing the provinces.

“We have reservations concerning thse contracts being unconstitutional, among them a 20-year contract concluded with PetroChina.“

Half of Missan's production is from the Halfaya oilfield, in which PetroChina, a subsidiary of China National Petroleum Corp (CNPC), China's largest energy producer, holds a 37.5 percent stake; Total and Petronas each hold a 18.75 percent stake, with Iraq's state partner holding the remaining 25 percent.

(Source: AIN)

Iraq Business News: “Mom-and-Pop Investors” Pin Hopes on Iraqi Dinar

Iraq Business News

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"Mom-and-Pop Investors" Pin Hopes on Iraqi Dinar

Nov 16th 2012, 18:25

By John Lee.

Reuters reports that “thousands” of people are still speculating on a huge upward revaluation of the Iraqi dinar, which it describes as “one of the chanciest investments in the world“.

It quotes a Las Vegas-based speculator, who previously lost most of his retirement fund on the stock market, as saying:

“It’s not a question of if, but when Iraq revalues its currency … The dinar will eventually have substantial value, possibly the highest in the world … If the dinar rises to just even a penny, you would have realized a profit of 900 percent.“

The article goes on to say that some speculators are even betting that the dinar could rise to a value of $1 to $3, which would represent gains of between 116,500 percent and 349,700 percent.

One dinar dealer, which reportedly charges a spread of 30 percent on transactions, told Reuters he sold about $577 million in dinars to U.S. customers in 2011. “His customers are U.S. mom-and-pop investors – teachers, police officers, and construction workers”, says the report.

(Source: Reuters)

Iraq Business News: Iraq Calls on Arabs to “Use Oil as Weapon”

Iraq Business News

All the latest business news from Iraq

Iraq Calls on Arabs to "Use Oil as Weapon"

Nov 16th 2012, 18:26

By John Lee.

Reuters reports that Iraq’s representative to the Arab League said that Arab states should use oil as a weapon to put pressure on the United States and Israel over the attacks on Gaza.

Qais al-Azzawy told reporters in Cairo on Friday:

“Iraq will invite (Arab) ministers to use the weapon of oil, with the aim of asserting real pressure on the United States and whoever stands with Israel.

“The economic weapon is the strongest one to be put into effect now, to assure of standing by the Palestinian people, in light of there being no military power that can stand in the face of Israel at the present time.“

(Source: Reuters)

Iraq Business News: Foreign Firms Win $290m Hospital Deals

Iraq Business News

All the latest business news from Iraq

Foreign Firms Win $290m Hospital Deals

Nov 16th 2012, 18:26

By John Lee.

Iraq’s Ministry of Health has announced that it will build two 400-beds hospitals in the provinces of Kirkuk and Muthanna.

Azzaman reports that the Ministry has signed contracts totalling $290 million with foreign companies to build the hospitals, which are part of a plan to construct 11 such facilities.

A Turkish firm is to build the hospital in Kirkuk at a cost of $145 million, while a German firm will build the Muthanna hospital at a cost of $145 million.

(Source: Azzaman)

The Currency Newshound: Legal expert calls for banks that earned billions of central bank auction identify beneficiaries

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Legal expert calls for banks that earned billions of central bank auction identify beneficiaries

Nov 16th 2012, 16:42

called legal expert Tareq Harb, private banks "that there are no more than a handful" T received billions of auction central bank identify the beneficiaries, noting that achieved hee banks of the profits outweigh the profits of U.S. and European banks.

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currencynewshound

The Currency Newshound: Expert: requiring traders to deal with banks sober necessary to avoid money laundering and currency smuggling

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Expert: requiring traders to deal with banks sober necessary to avoid money laundering and currency smuggling

Nov 16th 2012, 16:39

Baghdad (news) .. Proposed economic expert Jalil al-Rubaie, controls obliges the Iraqi trader dealing with international banks sober in money transfers foreign to curb money laundering and smuggling of foreign currency.

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currencynewshound

The Currency Newshound: Jaafari and Maliki discuss government performance and ways to strengthen the role of the National Alliance

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Jaafari and Maliki discuss government performance and ways to strengthen the role of the National Alliance

Nov 16th 2012, 16:38

{Baghdad: Euphrates News} Search head of the National Alliance Ibrahim Jaafari, with Prime Minister Nuri al-Maliki the political process in the country and the Government Performance and ways of strengthening the role of the National Alliance.

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currencynewshound

The Currency Newshound: Minister for Planning: We will give the five-year plan to the Council of Ministers and the Parliament end of 2012

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Minister for Planning: We will give the five-year plan to the Council of Ministers and the Parliament end of 2012

Nov 16th 2012, 16:43

Minister of Planning Ali Shukri said his ministry will draft five-year plan for the coming years, to the Council of Ministers and the Parliament end of the year 2012.

Media files:
currencynewshound

The Currency Newshound: Iraq strongly condemned the Israeli aggression on the Gaza Strip in Palestine.

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Iraq strongly condemned the Israeli aggression on the Gaza Strip in Palestine.

Nov 16th 2012, 16:36

Iraq strongly condemned the Israeli aggression on the Gaza Strip in Palestine.

Media files:
currencynewshound

The Currency Newshound: Banker: the need to develop (telephone banks) to facilitate the work of the banking

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Banker: the need to develop (telephone banks) to facilitate the work of the banking

Nov 16th 2012, 16:40

Baghdad (news) .. Called banking expert Mohsen Ali, the need to develop a way (banks telephone) to facilitate banking transactions, stressing the importance of developing awareness programs banking by monetary policy to the citizen for his guidance in how to deal with techniques banking business.

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The Currency Newshound: Economic Committee: Iraq’s central markets will begin to see life next year

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Economic Committee: Iraq's central markets will begin to see life next year

Nov 16th 2012, 16:20

Committee revealed the economy and investment parliamentary, that next year will bring life to the central markets, indicating it is in the process of putting the final touches on the new markets.

Media files:
currencynewshound

The Currency Newshound: Wikileaks” scandal reveals Jalal Talabani and Massoud Barzani secret with Paul Bremer?!!

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Wikileaks" scandal reveals Jalal Talabani and Massoud Barzani secret with Paul Bremer?!!

Nov 16th 2012, 16:37

Palm - WikiLeaks revealed a new scandal of scandals Iraqi politicians ruling regarding transfer U.S. civil administrator Paul Bremer sum of one billion, four hundred million dollars to the Kurdistan region, pointing out that they were divided between President Massoud Barzani and Jalal Talabani did not act on the Kurdish people.

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The Currency Newshound: Economist: the banking system would have trouble if everyone agreed on the amount of compensation for the ration card

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Economist: the banking system would have trouble if everyone agreed on the amount of compensation for the ration card

Nov 16th 2012, 16:38

The economic expert Majid picture that the banking system in the country is not qualified and not sobering and will face problems if all Iraqis agreed on the amount of compensation for the ration card.

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The Currency Newshound: U.S. official: Iraq has made significant progress, but corruption is still delayed it

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

U.S. official: Iraq has made significant progress, but corruption is still delayed it

Nov 16th 2012, 16:41

BAGHDAD / Aswat al-Iraq: Deputy Assistant U.S. Secretary of State in the Bureau of Democracy, Human Rights and Labor Thomas Melia, that Iraq had made significant progress over the past years to build democratic system coherent includes organizations are real, but can not say that Iraq had reached a democratic system, noting that corruption is a challenge and a very big problem delaying Iraq socially and economically.

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The Currency Newshound: Washington: keep Iraq democratically partner will make it more useful for us and the region

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Washington: keep Iraq democratically partner will make it more useful for us and the region

Nov 16th 2012, 16:43

Washington has confirmed that the program President Barack Obama at its new presidential focuses on strengthening the partnership with "democratic Iraq," emphasizing that maintaining this approach will make it "more useful" to the United States and the region.

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Iraq Business News: Mudarabah and the Shapely Value

Iraq Business News

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Mudarabah and the Shapely Value

Nov 16th 2012, 17:22

I recently had occasion to bone up on Islamic finance while preparing for a meeting with Kurdistan International Bank (BKUI), Iraq's largest Islamic bank. In the process, I noticed an interesting parallel between a form of financing known as mudarabah and a game theory concept I hadn't thought about since my graduate school days, the Shapely value.

Mudarabah is a form of profit sharing in which one partner (possibly a bank), known as the "rabb-ul-maal," provides 100% of the capital while the other, the "mudarib," provides management expertise. In order to avoid violating the Islamic prohibition against usuary, the rabb-ul-maal receives a share of the profits rather than a series of fixed payments. This profit share is supposed to be 50% unless otherwise specified. (See this excellent presentation by Deloitte for more on mudarabah and other forms of Islamic finance.)

The interesting thing about 50-50 profit sharing is that there's no reason why 50%, or any other particular share, should generally be expected to result from a competitive bargaining process. Competitive bargaining could just as easily lead to a very low share for the mudarib in cases where many people were qualified to be managers but few could raise the necessary capital. There's also no reason to rule out the reverse case. Only a few people might have the necessary expertise while many could come up with the required funds. Then the mudarib would get the highest share.

While not necessarily the expected result of a bargaining process, 50% shares are "fair" in the sense that neither partner can operate the joint venture alone. This idea of fairness is captured in the idea of the Shapely value.

To calculate this number for the general case where there are "n" players, you start by considering every possible coalition of other players that one particular person (i) might join. For each of these, i‘s contribution is the difference between the total profit the coalition could receive with i as a member and the total it could realize without him. The Shapely value is the average value of all of these potential contributions.

In the case of the mudarabah contract we're considering here, n = 2. This makes the Shapely value easy to calculate because there are only two possible coalitions either player could join—the "coalition" consisting of one member alone and the coalition including both members.

Suppose the profit achievable by the joint venture is 100 if both participate. Since single-member coalitions make a profit of zero (both capital and expertise are indispensable) the Shapely value for each player is just: ( 0 + 100 ) / 2 = 50. If they cooperate, each gets 50% of the profit.

50% default profit shares for mudarabah contracts are thus an interesting example of the importance of social justice considerations in Islamic finance. Defaulting to the Shapely value rather than the market equilibrium means that the baseline contract terms reflect each partner's ex-post contribution rather than the ex-ante bargaining outcome. Unlike the market equilibrium, which while efficient has nothing to do with fairness, the concept of mudarabah has a built in ethical dimension.

Iraq Business News: DNO Reports Record Output, Shares Fall

Iraq Business News

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DNO Reports Record Output, Shares Fall

Nov 15th 2012, 21:14

By John Lee.

DNO International ASA, the Norwegian oil and gas company, today announced that gross production across its oil and gas portfolio has exceeded 100,000 barrels of oil equivalent (boe) per day for the first time, split two-thirds from the Kurdistan region of Iraq and the balance from Oman and Yemen. On a Company Working Interest (CWI) basis, DNO International’s share is around 60,000 boe.

Shares closed the day down more than 6 percent.

Production during the third quarter stood at 41,545 boe per day on a CWI basis, up from 36,773 boe per day in the third quarter 2011. The latest increases in production reflect resumption of exports from the Tawke field in Kurdistan as from August, the September resumption of production from the West Bukha field offshore Oman following pipeline repair work and the completion and tie-back in November of two new wells which have led to a more than doubling of production from Block 8.

Wells currently drilling across the portfolio are expected to add another 30,000 boe per day to gross production by the end of 2012.

DNO International presents its financial and operating results today in Oslo at 08:00 CET. In releasing its interim financial results, the Company reported EBITDA of NOK 267 million and net profit of NOK 98 million on operating revenues of NOK 541 million in the third quarter of 2012. A live webcast of the presentation as well as the full third quarter 2012 interim report will be available on the Company website (www.dno.no).

(Sources: DNO, Yahoo)

Iraq Business News: New Housing Complex to be Built in Karbala

Iraq Business News

All the latest business news from Iraq

New Housing Complex to be Built in Karbala

Nov 15th 2012, 21:09

Karbala Investment Commission has laid the cornerstone for the housing complex in the Zahra neighborhood in Hindiya district, southern Karbala.

The deputy chairman of the Commission, Ahmed al-Maliki, said the project would involve 500 housing units, an elementary school, kindergarten, nursery, markets, public parks and infrastructure services.

It will be built on a 60-acre site at a total cost of IQD 72 billion ($60 million).

(Source: AIN)

Iraq Business News: International Speakers to Discuss Iraqi Energy Market

Iraq Business News

All the latest business news from Iraq

International Speakers to Discuss Iraqi Energy Market

Nov 15th 2012, 21:09

Advertising Feature

Internationally acclaimed experts from across the oil and gas sector will be addressing the challenges and opportunities in the Iraqi market, at the upcoming Basra Oil & Gas International Exhibition & Conference.

Speakers from Weatherford, Gulf Energy, South Oil Company (SOC) and Penspen will put forward their views on technology, health & safety, laws & regulations, petrochemicals and many other topics related to the conference theme "Iraq: The Hub of Future Energy."

Industry veteran, Mr. Falah Al-Kahawaja, ex-director general of State Company for Oil Projects, will manage the conference, bringing his wealth and experience of Iraq's growing influence to the event.

Conference director, Mr. Falah Al-Kahawaja said:

"This conference provides an unrivalled opportunity for the oil and gas industry to understand more about Iraq and the expectations for the future. It is a complex market to navigate, and we want to provide a platform that gives local, regional and international companies interested in doing business in Iraq somewhere to share knowledge, experience and insight."

With proven oil reserves of around 143 billion barrels, Iraq is the third biggest oil market in the world. With a total of 79 fields, only 23 of these are currently producing, signifying significant potential for the upcoming years.

The Basra Oil & Gas International Exhibition & Conference is now in its third consecutive year, having doubled in size year-on-year, as access to Iraq's lucrative market becomes increasingly of interest for global oil and gas companies.

The exhibition will host over 400 companies, showcasing the very latest products and technologies from the market. Basra Oil & Gas International Exhibition & Conference will take place from 6-9 December 2012, at Basra International Fair Ground. For further information, visit www.basraoilgas.com

Iraq Business News: Scania Discusses Modernisation of Iraqi Fleet

Iraq Business News

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Scania Discusses Modernisation of Iraqi Fleet

Nov 15th 2012, 21:12

Iraq’s Transport Minister, Hadi al-Amiri, has met the Manager Director of the Swedish truck company Scania, Gustav Sandel, to discuss ways to use the company’s expertise in the development of Iraqi ground transportation.

The ministry is reportedly in the process of developing and modernising its transport fleet, particularly road transport and passenger transport.

(Source: NINA)

Iraq Business News: Heritage Updates on Kurdistan Operations

Iraq Business News

All the latest business news from Iraq

Heritage Updates on Kurdistan Operations

Nov 15th 2012, 21:13

Shares in Heritage Oil closed down 1.9 percent on Thursday, following the company’s interim management statement.

The companay gave the following update on its operations in Iraqi Kurdistan:

Following the Initial Sale, HEME currently holds a 49% interest in the Miran Block and continues to act as operator.

Miran West

Initial work-over operations to prepare the Miran West-1 well for completion took place during September 2012. It is anticipated that the extended well test will begin in December 2012 and will last for a maximum period of six months. The resulting planned production of 3,000 to 5,000 barrels of oil gross per day will be sold into the local market in Kurdistan.

Miran East

The Miran East-1 exploration well is the first well to be drilled on the Eastern structure, which is contiguous with the large hydrocarbon-bearing Western structure. The well commenced drilling in March 2012, targeting exploration potential within the Cretaceous and Jurassic intervals. As at 14 November 2012, the well has reached a depth of 4,850 metres and evaluation of the well is ongoing. The Upper Cretaceous reservoir interval has been shown to be in pressure communication with the Western structure and shows observed whilst drilling the Lower Cretaceous section are consistent with wireline log interpretation indicating the presence of hydrocarbons. Well operations are ongoing and expected to take up to six weeks.

Tony Buckingham (pictured), Chief Executive Officer, commented:

“It has been an exciting time for Heritage Oil as we have completed a significant acquisition providing the Company with cash generating assets and a substantial increase in our reserves and production outlook.

“Our interest in Nigeria provides a new direction for the Company and a larger foundation upon which we can build. The current management team has been very successful in value creation for Heritage, generating cash of over $2 billion from asset sales in the last decade.

“We look forward to completing the proposed divestment of the Miran asset and focusing on opportunities to expand our portfolio.“

(Sources: Heritage, Yahoo)

The Currency Newshound: Maliki confirms the need to continue the implementation of the strategic framework agreement between Iraq and the United States

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Maliki confirms the need to continue the implementation of the strategic framework agreement between Iraq and the United States

Nov 15th 2012, 12:47

Prime Minister Nuri al-Maliki, the need to continue the implementation of the strategic framework agreement between Iraq and the United States, especially in the field of military cooperation and armaments.

Media files:
currencynewshound

The Currency Newshound: Committee economy likely improve the value of the dinar against the dollar after the central bank reforms

The Currency Newshound

Providing news which shapes the Iraqi economy and the future of the Iraqi Dinar

Committee economy likely improve the value of the dinar against the dollar after the central bank reforms

Nov 15th 2012, 12:48

Expect a member of the Committee on the economy and investment Amer winner, the high exchange rate of the dinar against foreign currency in the coming period after important reforms carried out by the federal government work's central bank.

Media files:
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