Monthly Archive for January, 2008

What is the US’s Energy Fusion Cell, and where have they been all this war?…

There’s optimism in Iraq, at least from a mysterious cadre called the Energy Fusion Cell, which for the past eight months worked to bring coherence to both U.S. and Iraqi initiatives in the oil, gas and power sectors — the backbone of its citizens’ quality of life and the bulk of the national budget.

It’s a U.S. creation for sure, spearheaded by Iraq-based units in the Defense and State departments to meet U.S., U.N. and international finance and banking agreements. But it’s now gotten active buy-in from a swath of Iraqi ministries in charge of building and protecting Iraq’s energy sector.

“We offer advice to them on their own expressions of what their national policy is and give them the forum to come together with the coalition forces and the government of Iraq entities,” one member told United Press International in a background conference call interview from Baghdad. “That wouldn’t have happened a year ago” was a common refrain by members of EFC, which has weekly scheduled meetings and “a couple of layers of meetings … led by the government of Iraq.”

Simplified, the EFC’s goal is two-fold.

Read the entire article HERE by UPI’s Ben Lando

Royal Dutch Shell Plc may spend $2.5 billion on a natural gas plant in southern Iraq to meet energy demand in the Middle East, where economies are growing 5.9 percent a year, according to a person involved in the plan, Kristian Rix reports for Bloomberg News.Shell met with Iraqi officials last week to propose building a pipeline that would link the Basrah region to a new terminal on the country’s coast, the person said. Shell would also build a facility that could freeze 16 million cubic meters of gas a day and ship it to Kuwait and the United Arab Emirates, the person said.

The War Over the War: a Q & A between Washington Post associate editor Karen DeYoung and readers about the war in Iraq, and other wars.

Arlington, Va.: Ms. DeYoung — so when is The Washington Post going to complete its investigation of the real reasons for our invasion of Iraq? Although it seems like “old news” now, some of us are still interested in knowing whether access to Iraqi oil was a significant factor — or a determining factor — in the administration’s decision to send 100,000 American troops to Iraq. Is The Post going to investigate this, or is it simply going to report it when someone else decides it’s time for the American public to know the details?
Karen DeYoung: C’mon. Millions of trees already have died in the cause of figuring out why the administration did/thought what and when. Many billions more are sure to expire. Far be it from me to say that oil wasn’t part of the equation, but I’d rate it far below political hubris and a misunderstanding of cause and effect.

Americans were suspicious of oil motivations in the war machine in a poll taken a year ago, and it’s doubtful any sentiment has become less wary:

Most Americans think President Bush invaded Iraq at least partly because of its oil — a war more than half rate him as “poor” in handling and nearly all say has affected the price of gas at the pump, Ben Lando wrote for UPI. The UPI/Zogby International interactive poll of 6,909 U.S. adults Jan. 16-18 found 32.7 percent considered Iraq’s oil supply a “major factor” and 23.7 percent “not a factor” in the decision to invade the country. Another 40.7 percent were split somewhere in between while 2.9 percent were “not sure.”

And Former Federal Reserve Chairman Alan Greenspan didn’t help his ex-boss’ cause. Read “Iraq, Oil and Greenspan’s Gospel,” also by UPI’s Ben Lando: ““I am saddened that it is politically inconvenient to acknowledge what everyone knows: The Iraq war is largely about oil,” Greenspan wrote toward the end of “The Age of Turbulence: Adventures in a New World,” released Monday. Iraq has the world’s third-largest proven reserves and an unexplored potential to rival Saudi Arabia.”

The head of an Iraqi electricity plant ranted about lack of help from officials in faraway Baghdad. The local governor grumbled about being ignored on project planning, Bradley Brooks writes for The Associated Press. The four-hour meeting at a U.S. military base in northern Iraq was full of gripes, bitterness and blame trading. But it was just the sort of encounter Washington hopes will eventually jump-start jobs and public works to regions long neglected by Baghdad — and, along the way, possibly undercut the insurgency by showing that better days could be ahead.

Managing Director of West Region Power Company Abdolaziz Karimi said here Wednesday that 150 megawatts of electricity are exported to Iraq daily via a 230 kilovolt power post on Bazideraz region in Sarpol-e Zahab district in Kermanshah province, the Islamic Republic News Agency reports.

Iraq’s Economy

Member of the parliament and former Iraqi planning minister, Mahdi Al-Hafiz, considered the omission of anything about foreign grants and aids in the new Iraqi budget “a significant gap,” Iraq Directory reports.

The local development of Diwaniya started in early 2008 signing 35 billion dinars worth of contracts to implement reconstruction projects under the provinces development plan and speeding up the reconstruction projects,” Governor Hamed al-Khudari told the Voices of Iraq news agency.

The Planning Ministry has announced development projects in Basera, Sulaimaniya, Babel, Thi Qar and Missan provinces, VOI reports.

Security, Society & Politics

Statistics regarding the violence against women has been revealed, Kurdish Media reports. From 01 January 2007 to 31 December 2007, 313 crimes in Sulaimania and 104 crimes and incidents in the district of Garmian have been recorded. 69 of the crimes occurred due to family disputes, 58 of them were carried out by husbands and other by relatives of the husbands.

Every week, letters from Iraqi widows spill across Samira al-Moussawi’s desk. One wrote to ask whether she should spend what scant money she gets on her infant or on school books for her older son, Aseel Kami reports for Reuters.The member of parliament and head of a parliamentary women’s committee is at her wits’ end as to how to answer the desperate pleas from what could be as many as one to two million women.

Iraq President Jalal Talabani makes a surprise visit to Kirkuk, meets with its governor, Voices of Iraq reports.

Iraq: Politics Unfrozen, Direction Still Unclear, a briefing by Daniel Serwer and Rend al-Rahim of the U.S. Institute of Peace.

The Committee to Protect Journalists is alarmed by the criminal defamation lawsuitfiled by Iraqi President Jalal Talabani on Tuesday against the editor-in-chief of the independent Kurdish weekly Hawlati for translating and publishing a report written by a U.S. scholar. … Azad Jindyany, head of the central press office for Talabani’s party, the Patriotic Union of Kurdistan, confirmed to CPJ today that the criminal defamation case was filed. By translating the report and publishing it, he said, Hawlati had promoted the defamation of Talabani and the other Kurdish leaders. The spokesman said Talabani would file a lawsuit against (American Enterprise Institute’s Michael) Rubin in the United States.

The Iraq Press Roundup, what the Iraqi editorialists are writing, by UPI’s Hiba Dawood.

Dr. Majed Kazem, deputy dean of Kufa University has said the location of the new university approved by cabinet to be built in Najaf province would be north city center with total area of 5 acres, Al-Sabaah reports.

Talking Iraq: Dissecting Iraq in President Bush’s State of the Union speech. Amy Goodman of Democracy Now! talks to Dahr Jamail (reporter for Inter Press Service and author of Dispatches from an unembedded journalist in Iraq) and Raed Jarrar (Iraq consultant with the American Friends Service Committee) about life on the ground in Iraq today, the appearance of U.S. policy changes toward Iraq, and the much-touted “surge” — including analysis of the US’s new Sunni “allies” in Al-Anbar province.

Violence Draws Veil Over Women in Iraq, by Ahmed Ali and Dahr Jamail for Inter Press Service.Conditions are particularly difficult for women in Baquba, despite the relative lull in violence. The city, about 40 km northeast of Baghdad, is capital of Diyala province, amongst the most troubled regions of Iraq in recent months.

America in Iraq

Soldier Suicides at Record Level: Increase Linked to Long Wars, Lack of Army Resources Dana Priest reports for The Washington Post. “I’m very disappointed with the Army,” Whiteside wrote in a note before swallowing dozens of antidepressants and other pills. “Hopefully this will help other soldiers.” She was taken to the emergency room early Tuesday. Whiteside, who is now in stable physical condition, learned yesterday that the charges against her had been dismissed.

To compete in the global information war played out on Web sites and e-mail, soldiers in Iraq should upload videos of their experiences in the combat zone to YouTube and post their personal stories online, a top Army general said recently, Greg Grant reports for Government Executive, a recommendation that appears to run counter to Pentagon policy.
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Iraq income up five years after war as oil production slowly increases, fetching more with high oil prices…

Plus
*Ex-Iraq corruption watchdog blames firing on oil smuggling investigation
*Police bust smugglers in Missan
*2008 budget delayed a week
*Dana Gas to pump $300M into Iraqi Kurdistan natural gas venture
*Corruption allegation over Iraq Central Bank building fire
*Iraq Press Roundup
*Much, much more…

New data from Iraq’s oil export arm finds increased production and high prices raised revenues by 31 percent to $39.8 billion in 2007, compared with 2006, United Press International reports. Improved output and security of the northern infrastructure helped Iraqi exports increase by 9.2 percent from 2006 to 2007, according to a revenues and quantities report from the Iraq State Oil Marketing Organization obtained by UPI.

Iraq’s former top corruption watchdog says he was fired for outing political connections to the still booming racket of oil smuggling, UPI reports. “I was fired after I uncovered the names of oil smugglers,” said Moussa Faraj, the former chief of Iraq’s Commission on Public Integrity, the Dar al-Salam newspaper reports.

Police in Iraq’s Missan province have broken two smuggling operations, one moving oil products and the other medical supplies, UPI reports.The busts took place at a checkpoint north of Amara, the capital of Missan in Iraq’s south.

Iraq’s estimated $48 billion budget for 2008 has been delayed for another week, the Voices of Iraq news agency reports. The hitch is disputes over what the Kurdistan Regional Government is due, and whether the Kurdish militia should come from its allocation or a special fund. A sizeable chunk of the budget will be for capital investment, billions for the Ministries of Oil and Electricity, but there are serious questions as to the government’s capacity to spend the money, and the U.S. government’s ability to account for it. Also delayed, speaker Mahmoud al-Mashhadani said, is a new law on provinces.

Iraq has a large surplus, thanks to high oil prices and the inability of ministries to spend their annual budget, and the former minister of planning is warning of rash and inappropriate ways to spend it, VOI reports. “Iraq has a cash reserve of more than $20 billion, which has boosted the value of the Iraqi dinar and its purchasing power, in addition to a large credit of over $10 billion by the Iraqi Development Fund,” said Mahdi al-Hafiz.

Dana Gas will pump $300 million into its Iraqi Kurdistan venture, Reuters reports, with natural gas flowing by July and becoming the cash crop for the company, which has Egyptian projects and is eyeing Algeria.

Parliamentarians are now demanding an official inquiry into the suspected arson of the Iraq Central Bank building in Baghdad, Kareem Zair reports for Azzaman. Representatives from a number of the political blocks in Parliament, who allege the Ministry of Labor and Social Affairs was also torched, say it was a purposeful attempt to burn documents proving corruption.

The decrease in violence in Iraq is no trend, but a phenomenon, threatened by a recent increase in attacks, targeted killings and bombings, military columnist Joseph L. Galloway writes for McClatchy Newspapers. Now there’s a new form of inter and intra-sectarian killing. And it poses a new threat.

What the “surge” has facilitated instead is the total balkanization of Baghdad – as well as the whole of Iraq, Pepe Escobar writes in Asia Times online. There are now at least 5 million Iraqis among refugees and the internally displaced - apart from competing statistics numbering what certainly amounts to hundreds of thousands of dead civilians. So of course there is less violence; there’s hardly any people left to be ethnically cleansed.

As ExxonMobil prepares to celebrate what could be a record profit of more than $10 billion for the last quarter of 2007, jubilant company officials and stockholders might want to join in a moment of silence for the more than 1 million war dead in Iraq — Iraqi and American combined. They paid the ultimate price in a war in which ExxonMobil has had a hand and which we can estimate is responsible for at least $2.5 billion of ExxonMobil’s latest profit, Nick Mottern of ConsumersforPeace.org writes in a UPI op-ed. He says oil companies also pushed for the war and were involved in early planning and urging of the draft oil law.

The Iraq Press Roundup, a review of Iraq’s editorial pages, by UPI’s Hiba Dawood.

Rebuilding failures by one of the most heavily criticized companies working in Iraq, the American construction giant Parsons, were much more widespread than previously disclosed and touched on nearly every aspect of the company’s operation in the country, according to a report released Monday by a federal oversight agency, James Glanz reports for The New York Times.

Turkey to study pipeline for Iraq gas to run same route as Iraq oil pipelines…

Plus:
*Iraq stops auctions, starts term contracts for Kirkuk oil
*Iraq oil flow north to Turkey stopped, storage capacity blamed
*One of three major Iraq refineries working
*Oil Ministry reaffirms blockade of firms who sign with Kurds
*Fight for Mosul escalates
*Political tensions mount
*Much more…

Turkey has launched a feasibility study for a natural gas pipeline connecting northern Iraq’s fields to the Turkish port, parallel to the oil pipelines. Iraq has large natural gas reserves but the sector is undeveloped, with much of the associated gas burned with nowhere to go. United Press International reports Turkey is eyeing Iraq’s gas as it further solidifies its role as a main transport hub for the world’s hydrocarbons.

Iraq’s Oil Ministry Sunday stopped auctioning its Kirkuk oil and began selling term contracts as production from the north has increased, UPI reports. The ability to continue such an output — considering the threat of attacks on the infrastructure and other sector-related problems – isn’t a sure bet. Iraq’s production has been increasing slowly, to about 2.3 million barrels per day last month.

Iraqi crude oil exports from northern Kirkuk oil fields to Turkey’s Ceyhan port have been suspended since Friday, a shipping agent at the terminal Monday told Dow Jones Newswires’ Hassan Hafidh. The agent said Kirkuk crude oil pumping to Ceyhan was suspended at 2000 local time Friday. Iraq only resumed the flow last Wednesday after a two-week suspension on a fault that occurred at one point of the export pipeline. Reuters reports the stoppage is due to storage capacity.

Only one of Iraq’s three major refineries is working after fires and electricity supply cuts took their toll in the winter cold, UPI reports.

The Iraq Oil Ministry reiterates its blockage of oil to SK Energy over a South Korean deal to look for and produce oil in Iraqi Kurdistan. SK has until Jan. 31 to decide whether to back out of the Kurdistan Regional Government deal or forego Iraqi oil, which had provided a hefty part of the country’s imports. The Ministry has given the ultimatum to all the KRG deal firms, it says. Reuters has the latest.

Security, Society & Politics

The fight for Mosul appears ready to escalate. It’s already a key issue of dispute between Kurds and Arabs as part of the “disputed territories.” The “surge” that at least temporarily cleared al-Qaida and other insurgents from Anbar and Baghdad provinces fled north and have been wreaking havoc in Mosul.

Iraqi army units reached the northern city of Mosul on Sunday in preparation for what the government said would be a major offensive there against Al Qaeda in Iraq and other Sunni militants, Ned Parker writes in the Los Angeles Times. Dozens have been killed in attacks there, and the Kurdistan Regional Government has dispatched humanitarian aid, Voices of Iraq reports.

Forty-five of the 12,000 displaced families in Babil province are pressing the Iraq Parliament to intervene in a Defense Ministry order of redisplacement. The families were given one week to leave a former military camp south of Baghdad, according to the U.N. humanitarian affairs office.

Politicians calling for more support for the thousands of children orphaned by the conflict, Hazim al-Shara’ reports for the Institute for War & Peace Reporting.

The Iraq Press Roundup, a recap of the day’s best editorials from Iraqi newspapers, by UPI’s Hiba Dawood.

Kurdish leaders pushed on all sides, colunist Ilnur Cevik writes in The New Anatolian.The leaders of northern Iraq’s Kurdish administration are facing tough days ahead. The Iraqi Arabs both Sunni and Shiite seem to unite against the Kurds who seem to be pushing for more autonomy.

Tensions are building between Kurdish leaders and Arab Prime Minister Nouri al-Maliki’s government in Baghdad, threatening to divide two of Iraq’s strongest political allies, Wrya Hama-Tahir reports for the Institute for War & Peace Reporting. Rifts over oil, Kirkuk and Peshmerga threaten alliance between Kurdish authorities and central government.

Bush may have to withdraw his support for Nouri Maliki if the prime minister continues to slow progress, Bing West and Max Boot write in a Los Angeles Times op-ed.

The cost of the war in Iraq has ballooned, in part, because of the dearth of trained acquisition professionals assigned to the theater and the failure of federal agencies to establish a uniform set of procurement policy guidelines, a pair of government watchdogs testified this week, Robert Brodsky writes for GovernmentExecutive.com.Defense and State Department officials, meanwhile, said that while slow out of the gate, they have altered many of their policies and are well on their way to reasserting control of contractors that work alongside military personnel.

A U.S. basketball coach opened the first women’s basketball school in Sulaimaniya city in an attempt to revive the sport and boost its popularity, Iraq’s basketball federation chief said on Saturday, Voices of Iraq news agency reports.

The Iraqi Football Federation (IFF) said on Friday that Iraqi midfielder Nashaat Akram’s move to British Premier League club Manchester City failed because it contradicts with the regulations set by the British Football Association (BFA), VOI reports.

Five years later, a look at Editor & Publisher’s special issue with George Bush on the cover that raised troubling issues about the administration’s case for war. The simple cover line told it all: “Unanswered Questions.”

“Reality Is Totally Different”:Iraqis on “Success” and “Progress” in Their Country, by Dahr Jamail, reporter for Inter Press Service and author of the new book “Beyond the Green Zone: Dispatches from an Unembedded Journalist in Occupied Iraq.”

A former Russian top spy says his agents helped the Russian government steal nearly $500 million from the U.N.’s oil-for-food program in Iraq before the fall of Saddam Hussein in 2003, John Heilprin reports for The Associated Press.
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Iraq intent on boosting oil production by 17 percent; security and investment still uncertain …

Plus:
*Negotiated deals with Big Oil done by first quarter 2008
*Contracts on oil fields from bids signed by end ‘08, more next year
*Exports to Turkey resumes, fears remain it can’t deliver on crude contracts
*Political party that runs Basra may rejoin national government
*Iraq’s editorial pages

Iraq has its sights set on 300,000 to 400,000 extra barrels per day of production this year, a hope Oil Minister Hussain al-Shahristani pins on recent months of successful increases in oil flow and relatively more secure and sustained output.

Jane Barrett and Alex Lawler report for Reuters Shahristani, on the sidelines of the World Economic Forum in Davos, Switzerland, said the hoped for increase in production will all be dedicated to exports.

Iraq averaged 2.3 million barrels per day last month, though production decreased last week, and Shahristani pegged 2008 to reach between 2.6 million and 2.7 million bpd. To do so, Iraq will need to increase and maintain security, particularly in its northern oil sector. It would also need to follow through and actualize needed repairs and investment in the oil sectors nationwide, though capital improvements have not been a strong suit of the Oil Ministry.

Shahristani also teased Reuters about upcoming deals for developing Iraq’s oil sector, saying technical support contracts will be signed in the first quarter of this year, which are likely to be directly negotiated with the world’s largest oil companies on two year terms. He said by the end of 2008 a bid round for other large field developments will have been concluded and contracts signed. He said another set of oil fields will be bid on next year.

It’s from the unexploited fields where Iraq’s future lays, and Shahristani told The Associated Press such exploration and exploitation will have Iraq producing 6 to 8 million bpd in 10 to 12 years.

Iraq’s exports of oil to Turkey have resumed despite concerns the country’s limited success in the northern pipeline isn’t sustainable, United Press International reports.

Iraq’s key oil port will celebrate Sunday with the inauguration of the second of a growing fleet of new oil tankers, UPI reports.

2008 will be the year of Iraq oil, according to Phil Flynn in his FXStreet.com article The Greatest oil story never told. It’s a quick read of detachment – in 2007 “The Iraqi oil industry was a joke and Iraqi oil exports were almost non- existent,” Flynn writes, in somewhat offensive and xenophobic tones.

Iraq is stepping up efforts to win international investment and develop local business around its southern oil city of Basra, Deputy Prime Minister Barham Salih said on Friday, Dominic Evans reports for Reuters. Hoping that economic growth might help cement recent fragile security improvements, the government is setting up the Basra Development Commission, led by a leading British businessman.

The political party that nominally controls Iraq’s oil capital, Basra, said it may rejoin the governing coalition in Baghdad if structural change is made to leadership and positions. The Fadhila Party withdrew from the coalition, though kept its Parliamentarians seated, shortly after Oil Minister Ibrahim Bahrul-Uloom was replaced. The party, along with other Shiite and Sunni parties who withdrew support for Prime Minister Nouri al-Maliki’s government, claimed party favorites were chosen for key posts and others were marginalized.

But now the coalition – made up of Maliki’s Dawa Party, the Islamic Supreme Council of Iraq and the Kurdistan Coalition – are facing internal discontent and growing coordination between its opponents who not only oppose Maliki’s governance but the Kurds’ oil prerogatives and ISCI’s crawl toward Kurd-like autonomy for nine provinces in the south as well.

Fadhila did not join the anti-Maliki coalition, however. In fact, it released a statement the next day assuring it didn’t. The coalition included the Sadr Movement, with whom Fadhila has an on again-shoot at each other again relationship in Basra. ISCI, on the other hand, has attempted to push Fadhila out of Basra, which makes this latest proclamation of potentially joining ISCI’s coalition even more intriguing. The Voices of Iraq news agency reports Fadhila is demanding “new foundations” for the coalition, and a “cabinet reshuffle.”

Iraq’s 2008 budget is unlikely to be passed soon because it contains many loopholes, a lawmaker said on Friday, noting that approving the budget in its current status will cause a legal problem, Voices of Iraq reports. Lawmakers refused to ratify the $48 billion budget this week because of disputes over allocations, particularly for the autonomous northern region of Kurdistan.

Despite the fundamentalist infusion in the “new” Iraq, Voices of Iraq reportsthis weekend in Baghdad is the summit titled Iraqi Women’s Scream: Stop the Humanitarian Crisis. It’s sponsored by “the Iraqi feminist movement,” as VOI puts it, as well as al-Amal Association and the U.N. Development Fund for Women.

It may seem modest progress amidst today’s Iraq, but changing the Iraqi flag may lead to the end of a sore point between Iraq’s Kurds and Arabs. Kurdistan Regional Government President Massoud Barzani is asking the Kurdish Parliament to hold a special session and consider raising the flag officially, the Voices of Iraq news agency reports.

The KRG, a semiautonomous region that has struck serious discord with Baghdad and prompted speculation of wanting Kurdish independence, refused to raise the old Iraq flag. In fact, according to sources there, it was banned. Instead, the Kurdish national flag was proudly flown – a sun surrounded by green, white and red stripes.

This week Iraq’s Parliament changed the national flag, though the extent it is permanent and acceptable by all Iraqis is still debatable. For a good understanding of the changes, read Peter Smith’s piece in The Christian Science Monitor. Whether the deep divide between Iraq’s Kurdish and national government’s will be bridged by the new flag compromise remains to be seen.

Insurgents targeted in Anbar and Baghdad provinces did not disappear. Instead they’ve moved north and started raising deadly hell in Mosul and more in the oil hubs of Baiji and Kirkuk. Kim Gamel writes for The Associated Press Maliki has dispatched more police and said “our troops” will be sent there, though the U.S. to Iraqi ratio isn’t quite clear.

More in telling Iraq violence:

A suicide bomber posing as a policeman killed the police chief of northern Iraq’s Nineveh province Thursday as he visited the site of an attack a day earlier, Tina Susman reports for The Los Angeles Times. Alsumaria TV reports Sheikh Abdul Mahdi Al Karbalai, one of the legal deputies of Grand Ayatollah Ali Al Sistani, escaped an attack while he caught minor wounds in the city of Karbala. Two of his bodyguards were killed while two others were wounded.

With its international mandate in Iraq set to expire in 11 months, the Bush administration will insist that the government in Baghdad give the United States broad authority to conduct combat operations and guarantee civilian contractors specific legal protections from Iraqi law, according to administration and military officials, Thom Shanker and Steven Lee Myers reports for The New York Times.

Heavily criticized within Iraq during the first two years of the current U.S. occupation for focusing on spiritual matters rather than resistance, Iraq’s Sufis have begun to take up arms against Coalition forces, Fadhil Ali writes in The Jamestown Foundation’s Terrorism Monitor. The mystical approach to Islam known as Sufism has deep roots in Iraqi society. Adherents to Sufism normally stress prayer, meditation and the recitation of the various names of God as part of their effort to create a mystical communion between themselves and Allah. Yet at various times and places—such as 19th century Africa or the 19th and 20th century North Caucasus—Sufi orders have formed the core resistance to colonial and imperial occupation efforts.

Find out what Iraqis read in their editorial pages. The Iraq Press Roundup by UPI’s Hiba Dawood.

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Talks on Iraq’s oil disputes not officially happening …

Plus:
*Iraq oil exports up last year
*But the northern pipeline is down
*And last week production dropped
*Oil Minister in Davos says OPEC output OK
*Babil province talking tough over blackouts

Despite rumors that oil law negotiations were going to restart, it appears not so, United Press International reports. The Kurdistan Regional Government and the national government have not come to terms on how the law will distribute control over the oil fields. The KRG has gone forward unilaterally, passing their own regional law and signing dozens of deals with foreign firms. And you can imagine that the national government is not happy. All of this was to be discussed.

And there were talks of a top level U.S. State Department official would return to Baghdad to help facilitate. That also is not happening.

Iraq’s crude oil exports averaged 1.63 million barrels a day in 2007, some 9.2% more than in 2006, the Iraqi oil ministry said Thursday, Hassan Hafidh reports for Dow Jones Newswires. The south, where most of the oil is and most of the exports head to market, remained steady amidst intra-Shiite fighting. A new security plan guarding the northern pipeline also started working in the last months of 2007. The increase in exports doesn’t necessarily reflect a large growth in production, or realistic capacity. In December there were outages in the refineries, so oil production usually destined to become fuel in Iraq was instead redirected to exports.

There’s now a new report that the northern pipeline has been shut because of damage and reserves of Kirkuk oil in the Turkish port are low.

Iraq oil production averaged 2.10 million barrels per day last week, according to the State Department’s Iraq Weekly Status Report. Iraq averaged 2.3 million bpd in December. United Press International reports there are some questions as to how much oil Iraq is producing and exporting.

Iraq’s Oil Minister, speaking from the World Economic Forum in Davos, Switzerland, said there’s no need for OPEC to increase production as oil prices have started to settle, Reuters reports. OPEC production actually increased from November to December. Ironically, the production figures came out the day President Bush was in the Middle East asking OPEC to produce more.

Iraq’s national power outage has prompted the head of Babil province to send Baghdad an ultimatum: Give us electricity or we’ll take it, UPI reports. Babil is not alone. The entire country suffers from a lack of fuel and electricity.

The leading Democratic presidential candidates and their allies on Capitol Hill have launched fierce attacks in recent days on a White House plan to forge a new, long-term security agreement with the Iraqi government, complaining that the administration is trying to lock in a lasting U.S. military presence in Iraq before the next president takes office, Michael Abramowitz reports for The Washington Post. Iraq’s Parliament, as well, doesn’t like the deal. Both countries’ leaders are trying to sign the security pact without consulting their legislative branches. And both legislative branches say their respective constitutions don’t allow that.

Up to 25 million land mines, or almost one for every Iraqi, remain buried in thousands of minefields across Iraq and are hampering development of rich oil deposits, officials said on Wednesday, Reuters reports.Iraqi government spokesman Ali al-Dabbagh said the mines were spread across about 4,000 minefields left across Iraq after the 1980-88 Iran-Iraq War, the first Gulf War in 1991 and the 2003 U.S.-led invasion to topple Saddam Hussein.

Two top Democrat Congressmen are urging President Bush to increase the budget for Iraq’s millions of displaced persons.

Meanwhile, another tranche of 350 million Iraqi dinars (about US$290,000) has been allocated by the Iraqi parliament to cope with the needs of internally displaced persons (IDPs), a lawmaker said on 23 January, according to the U.N. Office for the Coordination of Humanitarian Affairs. “This amount will help displaced families living in makeshift camps and compounds which, for many reasons, did not receive enough aid from government and non-governmental organizations [NGOs],” said Abdul-Khaliq Zankana, head of parliament’s displacement committee.

Jeffrey Goldberg writes in The Atlantic on the faults and follies of U.S. and Western attempts to define and redefine boundaries in the Middle East, especially Iraq. He starts with the Kurds: “Not long ago, in a decrepit prison in Iraqi Kurdistan, a senior interrogator with the Kurdish intelligence service decided, for my entertainment and edification, to introduce me to an al-Qaeda terrorist named Omar. “This one is crazy,” the interrogator said. “Don’t get close, or he’ll bite you. …”

What’s in Iraq’s editorial pages? Find out in the Iraq Press Roundup by UPI’s Hiba Dawood.

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Are Baghdad-Kurd talks on oil issues about to start again?…

Plus:
*Oil from Kirkuk expected to restart soon
*National Security chief survives ambush
*What’s in a flag?
*New Baath law reservations
*more…

Iraq’s Kurdish oil leaders are in Baghdad to clear an impasse over oil control, though the national oil minister is reportedly not in town. That could be the point, since some Kurdish leaders have called for Oil Minister Hussain al-Shahristani to be removed from office, United Press International reports.Shahristani has confirmed attendance at the World Economic Forum in Davos, Switzerland, which began Wednesday. A U.S. State Department official is reportedly mediating.

There have also been sticking points between the KRG and Baghdad regarding the region’s 2008 budget, and whether funding for the Kurd security forces should be paid for with a special budget.

Oil from Kirkuk will start pumping through pipelines to Turkey again soon, the Oil Ministry says. As Reuters reports, power cuts, leaks and sabotage are responsible for the halt in the pipeline.
The extent of power and fuel outages is widespread, Ben Lando for UPI reports.

Iraq was making headway in restarting and keeping the northern pipeline flowing, but the latest stoppage is raising concerns for prospective contract buyers.

Security, Society & Politics

Iraq’s top national security official and his entourage were trapped in a religious place of worship in a Baghdad neighborhood by unknown assailants, IraqSlogger reports.com. He escaped. There’s speculation as to who the perpetrators were, and whether it has any connection to the pro-decentralization op-ed Mowaffak al-Rubaie wrote in The Washington Post Friday.

The Evolving Security Situation in Iraq: The Continuing Need for Strategic Patience, the new report by The Center for Strategic & International Studies’ Anthony H. Cordesman. “Data are now available from MNF-I and the Iraqi government that provide a much clearer picture of the trends in violence and casualties in Iraq. This report provides maps and graphics on the levels of killings in Iraq, the levels of violence by type, and the trends in terms of violence in key provinces and in Baghdad. It presents both MNF-I and Iraqi data through early January 2008.”

More on Iraq changing its flag:

Kurds had rejected the old banner, which included Saddam Hussein’s handwriting and symbols of his Baath Party, Kimi Yoshino reports for the Los Angeles Times. The temporary flag, a one-year stopgap until a more permanent design is selected, will no longer bear the three green stars representing the “unity, freedom, socialism” motto of Hussein’s Baath Party. The former leader’s handwritten “Allahu akbar” (God is great) will be replaced with an old-style Arabic font.

Iraqi Flag Changes, but Not Sectarian Distrust, Joshua Partlow reports for The Washington Post.Lawmakers Approve Interim Banner Dropping Vestiges of Hussein Rule and Appeasing Kurds, Shiites.

Iraq’s New Law on Ex-Baathists Could Bring Another Purge, Amit R. Paley and Joshua Partlow report for The Washington Post. More than a dozen Iraqi lawmakers, U.S. officials and former Baathists here and in exile expressed concern in interviews that the law could set off a new purge of ex-Baathists, the opposite of U.S. hopes for the legislation.

Competition arouses as second Stage of Iraq Super League starts, Alsumaria TV reports.

Read what Iraq’s editorial pages say. The Iraq Press Roundup by UPI’s Hiba Dawood.

“I’m waiting for the day that parliament stops losing time and efforts to issue the important laws that we need today in order to pass across this difficult time.” – from McClatchy Newspapers’ Baghdad Bureau blog Inside Iraq.

Iraq Economics

Virginia-based Enterra Solutions has signed a services contract with the Minister of Trade for the KRG to provide a full service Business Center in the Kurdistan region of Iraq. The contract marks a new era for business and economic development in the Kurdistan region and provides a viable model for similar centers in other emerging market countries. Under the multi-year service contract, Enterra Solutions will establish and operate the Kurdistan Business Center in Erbil, Iraq, with a branch in Washington, DC and a future location in Europe.

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Iraqis are left without fuel or electricity …

Plus:
*Iraq Oil Ministry, Big Oil to meet in Jordan this week
*Deadline to register for upcoming oil tenders delayed
*2008 budget delayed, Kurd vs. Arab continues
*Iraq Press Roundup
*Is the surge working? A worthless question.
*and more…

You can’t have one without the other, but with many of Iraq’s power plants shut and refineries stopped, Iraqis have neither fuel nor electricity.

Iraq’s Electricity Ministry is blaming the Oil Ministry for cutting fuel supplies and Turkey for ending electricity imports.

The Oil Ministry says continuous power to its refineries will lead to continuous supplies of fuel.

“We hear a lot of promises but we see nothing,” Baghdad resident Amjad Kazim told Gulf News. Blackouts and long lines at the fuel stations are increasing as subsidized, state-controlled supplies run dry and the black market boosts prices.

Read the entire piece by Ben Lando for United Press International. Click HERE.

An Iraqi Oil Ministry delegation will meet in Amman later this week with senior executives from five oil majors to discuss the possibility of signing technical support agreements to help develop five oil fields, an Iraqi oil ministry spokesman said Tuesday, Hassan Hafidh reports for Dow Jones Newswires.

Iraq’s Oil Ministry has pushed back the Jan. 31 registration deadline for oil companies wanting consideration for projects to be awarded this year, Ben Lando reports for UPI.

The Future Importance of Iraqi Oil in The International Oil Market, by Oil Consultant Ali Hussain in the Middle East Economic Survey. “In the future, Iraqi oil can play a very important role in the oil market to the extent that its production, and hence exports, may prove to have a positive impact on the global economy. This will happen provided that the Iraqi oil industry is developed efficiently and the authorities adopt the right and effective policies. In order for the Iraqi oil industry to develop rapidly and oil production to increase substantially this industry must go through two important phases simultaneously, namely rehabilitation and expansion.”

Iraq’s 2008 budget has been delayed as disagreements between Iraqi Kurd and Arab politicians exacerbate. At issue is the funding of the Peshmerga, the Kurdistan Regional Government’s security forces, IraqSlogger.com reports. Of course, the two sides have been escalating animosity for more than a year, as the struggle over who controls Iraq’s oil continues.

Most of the unease, however, stems from a decision to allocate 17 percent of the budget to the oil-rich autonomous Kurdish region and on top of that to pay for its peshmerga security force from the national defense budget, AFP reports.

More from the Alsumaria Iraq TV Network. Also, you can check out Monday’s Iraq Oil Report. Of course, if you’re a regular reader of Iraq Oil Report, you already know what’s going on.

Addax Petroleum Announces Update to Continued Appraisal Program at its KRG field Taq Taq, according to a company statement.

Security, Society & Politics

Violence in the southern – and oil-rich – areas of Iraq spiked, but there have been little definitive answers as to who the perpetrators are. Fierce clashes have been raging in the cities of Basra, Nasiriya and Diwaniya for the third consecutive day, Abed Battat reports for Azzaman, with the government giving conflicting versions for the causes leading to the upsurge in insecurity.

Some 276 people were killed, wounded or captured by government forces fighting a millenarian Shia cult in southern Iraq over the past three days, the Iraqi Ministry of Defence said in Baghdad yesterday, Patrick Cockburn reports for The Independent.

The southern Mahdists speak for themselves, writes Norwegian Institute of International Affairs research fellow Reidar Visser at historiae.org.In an interesting statement, the Adherents of the Mahdi, the group targeted in recent security operations in the southern Iraqi cities of Nasiriyya and Basra, have explained the conflict from their own point of view.

Iraq’s government must rapidly raise its game to cement the country’s fragile new peace, the United States ambassador in Baghdad has declared, Martin Fletcher of The Times reports.

Mahmoud Othman, a Kurdish lawmaker, has an ax to grind with the United States. He’s sick of watching American officials make statements on television every time the Iraqi parliament makes a move, reports McClatchy Newspapers Baghdad Bureau Chief Leila Fadel.“They talk about it as if we are children and they are directing us,” he said, exasperated. “When we passed the accountability and justice law, after one hour Bush said publicly we congratulate you so that everybody will say ‘we told you this is an American law.’”

Read what the Iraqi editorial writers are saying. The Iraq Press Roundup by UPI’s Hiba Dawood.

Rethinking the Future: The Next Five Years in Iraq,
a symposium organized by The American University International Law Review and the Public International Law and Policy Group,February 11-12, 2008 in Washington, D.C.

Is the surge working? A worthless question.

The U.S. military has announced the 26th member killed so far this month, Iraq Coalition Casualty Count is reporting. So ends the monthly decrease since August 2007. And there are nine days left in January. Violence in the rest of the country is increasing as well.

Over the past few months, as the numbers of U.S. armed forces killed in action dropped, the common refrain was (a paraphrase) “see, the violence is dropping, the surge is working.” So, if you apply that to this new statistic, one must say “the surge is not, or is no longer working.”

But this is an obtuse debate – held by current presidents and those who aspire to be next year, members of congress and the pundits. It’s one of tunnel vision, lacking context, and puts all of Iraq’s history and U.S. time and money and blood into a time span of days and months.

It reduces Iraqis and their country to terms of armed resistance. And it takes the eyes of everyone – regardless of position on the war – away from the overall goal of long-lasting peace in Iraq. The extent that the U.S. should be involved in Iraq should not be judged by a simple “the surge worked/it didn’t work, pull the troops out/leave them in” debate. It should be judged by establishing a goal based on the moral requirements of starting this war.

As long as there is debate on the efficacy of the surge, the longer it is until real discussions on the future of Iraq – currently not taking place in the White House, the Capitol Buildings or the campaign trail – are ignored.

Disputes between Iraq’s national government and Kurdish region keep taking their toll…

The national Oil Ministry intends to move forward on developing the oil and gas sector, while it cuts out companies who have signed with the Kurdistan Regional Government, deals Baghdad calls illegal. Meanwhile there’s no sign of any breakthrough on the oil law.

Iraq’s Oil Ministry has reportedly cut current and will block future deals as part of a blacklist of firms that have signed oil contracts with the Kurd region, United Press International reports.

Iraq’s Kurds want to focus on reviving the country’s oil law, but high-profile talks during a U.S. visit haven’t forced progress as they hoped, UPI reports.

India’s Reliance Industries says its deal with Iraq’s Kurds is from 2006 and thus shouldn’t be a target of Iraq’s central government aim at Kurd deals, UPI reports.

Black market auto fuel in Baghdad has jumped in price, IraqSlogger reports.

It’s to the front lines for Iraqi Kurds and their critics. Iraqi President Jalal Talabani, a Kurdish leader, will sue a local Kurdish newspaper Hawlati for translating and republishing a critical column written by Michael Rubin of the American Enterprise Institute. Amer Mohsen of IraqSlogger.com reports Talabani will sue Rubin as well.

“Neither Talabani nor Barzani have sued me,” Rubin told Iraq Oil Report, “although they said they did for domestic consumption after Hawlati published excerpts. For that matter, no one from the KRG has even bothered to contact me to register displeasure.”

Here’s the column by Rubin, Is Iraqi Kurdistan a Good Ally?

Recent oil negotiations demonstrate the continued blurring of the Kurdish political and commercial spheres. To win oil exploration concessions and development contracts in Erbil and Duhok, companies must partner silently with a Barzani-appointed associate. Several officials close to various oil negotiations say Barzani’s associates have requested that up to 10 percent of future revenue go to Barzani personally and an equal amount to Barzani’s political party. The KRG’s public treasury is a secondary concern, even if the oil, in theory, is a resource for the entire Kurdistan region, if not Iraq. Such conflicts of interest are not new. Documents seized after Saddam’s fall discuss business dealings between Nechervan Barzani and Saddam’s sons. Corruption increasingly filters downward. According to a local nongovernmental organization (NGO) in Halabja, in 2006, a suspicious fire destroyed the archives of the PUK’s teachers’ union after an audit was ordered concerning embezzlement of union funds. However, many Iraqi Kurds say they had hoped the U.S. presence would catalyze reform, transparency, and accountability.

Today’s Zaman published the op-ed “Kurdish problem in Iraq: an American perspective.” Authors Emre Uslu, a Ph.D. candidate at the University of Utah’s Middle East Center, and Önder Aytaç, associate professor at Gazi University and works with the Security Studies Institute in Ankara, which quotes an American working in Iraq’s views on alleged corruption and all-out ambitions of Kurdish leadership.

The U.S. National Counter-Terrorism Center says it was a mistake to include the symbol of the Patriotic Union of Kurdistan — the political party headed by Iraqi President Jalal Talabani — on a list of “terrorist logos” that police should be on the lookout for during traffic stops and other contacts with members of the public, UPI Homeland and National Security Editor Shaun Waterman reports.

After successfully escaping the violence of their home country, many displaced Iraqis in Jordan say they have been trapped by not-so-much-better circumstances in their host country. A harsh winter and a fierce cold wave were the last to be expected to eat away at Iraqis’ savings which they have kept for a rainy day, Voices of Iraq reports.

Iraq’s parliament gave a first reading on Monday to a draft law that offers a general amnesty to thousands of detainees held in US and Iraqi prisons in a bid to boost national reconciliation, AFP reports.The detainees, mostly Sunni Arabs, are being held without charge. Most have been detained for more than a year on suspicion of backing the anti-US insurgency.

Not all of the 26,000 detained will be eligible for release. But I imagine many who are will not only have to overcome the psychological hell of being imprisoned, without charge, but will be ripe for carrying out retribution against the Iraqi government and the U.S. military. And I don’t imagine there is too much of a reintegration process. This should be addressed and, if not…

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U.S. audit can’t determine how much Iraq ministries spent on capital projects ….

Plus:
*Oil Ministry cracks down more on oil firms signing deals with Kurds
*Kirkuk pipeline cutting short planned oil sales
*Oil refineries, power plants have a bad week
*Much, much more…

Iraq’s Oil Ministry spent $558 million on capital projects in 2007 to improve its struggling oil sector. Or $500 million. Or only $270,000.

A new report by the U.S. Government Accountability Office isn’t sure. Its attempt to measure the Iraqi government’s ability to put its capital budget into motion was frustrated by “widely disparate” numbers from the U.S. State and Treasury departments and the Iraq Ministry of Finance.

The State Department said Iraq’s central government spent 24 percent of its capital budget through July 15, 2007. The Treasury Department pegs it at 4.4 percent through August.

“The disparity between the different sets of data calls into question their reliability and whether they can be used to draw firm conclusions about the extent to which the Iraqi government has increased its spending on capital projects in 2007, compared with 2006.”

Read the entire story by Ben Lando for United Press International. Click HERE.

Iraq’s Oil

The Iraqi Oil Ministry has decided to stop cooperating with international oil companies participating in production-sharing contracts with the Kurdish regional administration in northern Iraq, an official said Thursday, Dow Jones Newswires reports. The Oil Ministry appears to be making good on threats it would respond to the Kurdish oil deals not by stopping the Kurds, but forcing oil companies to choose between having anything to do with Iraq’s oil sector as a whole or the KRG area specifically.

One of the companies who has signed with the KRG but not Baghdad – though its top management was trying to sweet talk Baghdad at a conference last fall in Dubai – is the Norwegian firm DNO. It’s global production was up 40 percent from 2006 to 2007, buoyed with good returns on their Kurdish investment.

Canada’s Addax Petroleum also is involved in the KRG dealings, Eric Reguly reports for the Globe and Mail,and has seen proven and probable reserves up 26 percent.

Iraq may face oil sale shortfall, Gulf Daily News reports. A halt in crude oil pumping along Iraq’s northern pipeline to Turkey raises doubts about Baghdad’s ability to meet commitments to sell more than 300,000 barrels per day, traders said yesterday.

Fueling Iraq

Production has halted at two major Iraqi refineries leading to unprecedented fuel and power shortages in the country, by Abdulatif al-Mawsawi for Azzaman.

Police forces foiled an attempt to smuggle large amounts of oil derivatives in eastern Muthanna city, a local police chief said, Voices of Iraq reports.

Powering Iraq

Electricity cuts that blacked out Iraq’s northern oilfields and main refinery this week were a timely reminder that its hopes of boosting oil production rest on something it does not have — a dependable power supply, Ross Colvin reports for Reuters.

The halt of Turkish exports of electricity to Iraq and a lack of fuel for power stations is to blame for the blackouts hitting Iraq’s northern oil fields, the Electricity Ministry said on Thursday, Reuters reports.

Security, Society & Politics

Read what’s in Iraq’s editorial pages. The Iraq Press Roundup, by UPI’s Hiba Dawood.

Iraq’s Shiites between Sectarianism, Iraqi Nationalism, and Mahdism, by Reidar Visser at Historiae.org

In 2008, both these two themes – Iraqi nationalism and Shiite sectarianism – are in evidence among the Shiites of Iraq. On the one hand, projects that clearly have a sectarian edge to them are still favoured by some – such as the idea of a single Shiite federal region, as sponsored by the Islamic Supreme Council of Iraq (ISCI). It is deeply ironic that its leader Abd al-Aziz al-Hakim should use the occasion to claim that the process of national reconciliation in Iraq has been “delayed” by the pet projects of individual politicians: ISCI’s own ideas about a single Shiite federal entity is arguably the clearest possible example of such projects, and Iraqi national reconciliation could have made great strides if this divisive scheme had simply been taken off the table. Similarly, there is unwillingness by some (but not all) Sadrists to accept concessions associated with the Sunnis like the new de-Baathification law. Its recent adoption in the Iraqi parliament was hailed by a few vocal Sadrist MPs, but thoroughly condemned on websites that express a more sectarian Sadrist view such as Nahrainnet, which has highlighted negative reactions to the bill among some of the lower-ranking clergy of the Shiite holy cities.

Reidar Visser is also research fellow at the Norwegian Institute of International Affairs. He’ll be at the U.S. Institute of Peace at the end of this month, one of four speakers on a panel titled Iraq’s Mystery Men: Insurgents, Tribes and Sadrists.

Iraq National Security Adviser Mowaffak al-Rubaie argues for Federalism, Not Partition: A System Devolving Power to the Regions Is the Route to a Viable Iraq, in a Washington Post op-ed.

An Iraqi “National Project,” without Kurds! Any such “project” will only be detrimental to Kurdish demands, Qassim Khidhir writes in The Kurdish Globe. He’s referring to the large swath of disaffected political parties who signed a pact decrying the KRG oil deals and other perceived threats to Iraqi national sovereignty.

Iraq’s parliament has finally passed a long-awaited new law aimed at allowing former Baathists to return to government jobs. Amb. Feisal al-Istrabadi, one of the “founding fathers” of the new Iraq, is optimistic about the legislation and says Iraqis are just undoing mistakes made by the United States. Seven Questions on the De-Bremerification of Iraq in Foreign Policy.

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Iraq oil production not up as reported, possibly slipping …

Plus:
*Iraq’s largest refinery out of commission, refineries nationwide take toll
*Dohuk province has no power except for hospital
*No power = inflation
*US Commerce Dept. backs down on PSAs
*GAO report faults US/GOI numbers in audit
*much More

New reports on Iraq oil production find it flat, possibly decreasing, dampening expectations the sector was steadily advancing in the final months of 2007.

The needs of Iraq’s oil sector to continue and expand are not new, Ben Lando reports for United Press International. But the inability to exact levels of oil flow — particularly the exports that bring in the tens of billions of dollars a year that support the federal budget — highlight a troubling lack of transparency for Iraq and occupation powers.

Read the entire story HERE.

Iraq’s Largest Refinery Shut Without Power

A power cut forced the closure of Iraq’s largest oil refinery for up to two days on Wednesday, a day after a major fire led to the shutdown of the country’s second-biggest refinery, Ahmed Rasheed reports for Reuters.

More from The Associated Press.

Only hospitals have power in Dahouk, Azzaman reports.The Kurdish Province of Dahouk in northern Iraq has been without electricity for nearly two weeks.

The country’s power shortage is the primary reason for Iraq’s high inflation rate and low currency value, a spokesperson in the Iraqi government said, Iraq Directory reports.

Iraq PSAs not immediate

When the U.S. Commerce Department started promoting last week the Iraq Oil Ministry’s prequalification forms and the Jan. 31 deadline, it stated: “The Oil Ministry of Iraq has begun pre-registration for its upcoming tendering of upstream licensing production-sharing agreements (PSAs) and possibly technical service agreements (TSAs), to begin later this year.”

PSAs are contract model that the oil industry is keen on – it provides great terms, usually, and allows the reserves to be added to the company’s balance sheet – but the oil unions, some technocrats and campaigners have railed against.

The PSAs were largely put on the backburner as Iraq said that most of its near term dealings would be on fields that wouldn’t qualify for any sort of risk contract, like the PSA (companies take the risk, get more profit if any oil is found). Instead TSAs, where companies are tasked and paid to do a certain job, became the front running model.

I thought it odd that the Commerce Department would say otherwise. So I checked into it.

The response, on background from the Department of Commerce’s International Trade Administration:

Our announcement about the Iraqi Ministry of Oil’s public call for pre-qualification of parties interested in future tender opportunities in the upstream oil sector is intended to inform U.S. companies about this recently-issued pre-qualification process. Based on the scope of information requested in the pre-qualification form provided by the Ministry, these tenders may include technical services agreements (TSAs). The U.S. Commerce Department also has no information at this time concerning when such deals will be executed.

And, if you check the Iraq Investment and Reconstruction Task Force (Commerce Dept.) website, the aforementioned PSA wording has been scrubbed.

Iraq’s “numbers”

Highly promising figures that the administration cited to demonstrate economic progress in Iraq last fall, when Congress was considering whether to continue financing the war, cannot be substantiated by official Iraqi budget records, the Government Accountability Office reported Tuesday, James Glanz reports for The New York Times.

Here’s the full GAO report: Better Data Needed to Assess Iraq’s Budget Execution.

IMF: Oil to buoy Iraq economy this year

Iraq’s economy is expected to find stability in 2008-2009 despite political and security problems as oil production recovers and the government moves ahead with reforms, the IMF said, Thompson Financial reports.

More here from Reuters.

Society, Security & Politics

Iraq’s healthcare left in disarray after invasion: Experienced staff emigrate due to lack of protection; Bribery is part of system, The Guardian’s Health Editor Sarah Boseley reports.The full extent of the destruction of Iraq’s healthcare system and the devastating impact it has had on its people is documented today in a new report which indicts the allied invasion force for failing in its duty to protect medical institutions and staff.

As Turkey launches limited cross-border strikes against PKK bases in northern Iraq and Iraqi-Kurdish leaders warn against Ankara’s interference, the US walks a political tightrope in appeasing its two allies, Dorian Jones reports for ISN Security Watch.

Read what’s in Iraq’s editorial pages. The Iraq Press Roundup by Hiba Dawood for UPI.

On January 13 an emerging Sunni-Shiite nationalist bloc in Iraq signed a groundbreaking agreement aimed at ending Iraq’s civil war, blocking the privatization of Iraq’s oil industry and checkmating the breakaway Kurdish state. It’s a big step forward, and it could change the face of Iraqi politics in 2008, Robert Dreyfuss reports for The Nation.

Iraq’s Economy

Enterra Solutions, LLC, announced today that it will establish a multi-lingual Call Center in Iraqi Kurdistan that will provide customer service support for Iraqi manufacturing companies.

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