Aggiedad77: Interesting HUGE news it seems to me.....(Se article below)
How can the government issue $12 billion dollars in treasury bonds today payable at the end of the year for $27 billion dollars unless they have a currency at the time that will allow such a gain to be made.....
HUGE HUGE news.....add this to the contracts they work under that were set in place in 2009 and 2010....remember those days old timers.....that would complicate the apple carts for them.....to say the least....
but am still working those bond numbers...incredible.....hope we hear from Frank tonight on this info.
Monday Night CC 7:00 pm EST....loaded with surprises.....be there early for a good seat.
walkongstick : Iraq is heading for the issuance of treasury bonds worth $ 12 billion to reassure foreign oil companies
BAGHDAD / Ibrahim Saleh / Anatolia:*
Iraqi Oil Minister Adel Abdul-Mahdi, said that his ministry will ask the government to issue treasury bonds (Treasury) worth $ 12 billion broadcast reassuring foreign oil companies that will reach their dues by the end of this year to 27 billion dollars.
He said Finance Minister Hoshyar Zebari, last Thursday, the Bank reserves CBI foreign exchange declined to reach $ 68 billion now because of the financial crisis plaguing the country, which means the decline of about $ 9.7 billion from the level at the end of 2013, a decline of 12.5%.
He said Abdul-Mahdi in a press statement, obtained by Anatolia, a copy of , that monitor the budget to repay foreign oil companies hardly covers dues accumulated from last year 2014 of up to nine billion dollars, noting that the problems that emerged after the formation of the government Tmthelta accumulation of dues companies and the collapse of oil prices.
He predicted the IMF last month, that the deficit is growing in the Iraqi budget to 6.1% in the current year, up from 4.9% last year.
He said Iraq's oil minister, that the benefits of foreign companies during 2014 have accumulated about $ 9 billion, indicating that the dues for 2015 estimated at up to $ 4.5 billion for each chapter of the four-year, or about $ 18 billion.
Thus recognize the Iraqi Oil Ministry, receivables accumulated while said last January, it is the city for foreign companies "entrepreneurship" (which holds the development and maintenance of oil fields in the country) any sums operations, and its relationship with those good companies and trusting, which led to the work programs and budgets for the year 2015 in accordance with Plans for the comprehensive development of all the oil fields in the country without any reduction, noting that the amounts actually received by these companies (late) receivables, had been agreed upon receipt of equivalent crude oil.
Iraq relies on oil imports to finance 95% of the budget, the country produces about 2.5 million barrels per day, with expectations to increase production to 4 million barrels a day.
He denied Abdul-Mahdi, according to the statement, allegations talked about the ministry negotiate to convert development concluded oil fields in previous years, decades to sharing contracts or they negotiate for the granting of new oil patches on the basis of participation.
Since 2009, Iraq entered into service with global energy companies to develop oil fields in decades after years of stagnation due to the embargo and war.
He said Iraq's oil minister, said that the talk about joint ventures did not exceed the founding companies the government's stake in partnership with national companies or foreign in all business related to the development and marketing of oil, citing the example of a Basra Gas Company, where government partner retains 51% of the shares of the company and maintains Shell and Mitsubishi to 49% of the shares.
The Iraqi government relies on oil contracts to raise the country's output of crude to around 8 million barrels per day in the next few years.
He said Abdul-Mahdi, according to the statement, that he was making some adjustments to some of the companies decades before the formation of the current government, where the peak of production and the proportion of government partner to 5% rate cut rather than 25% and extended the time periods for decades.
He added that the ministry negotiation companies are now in the direction of the return of the government partner's share of between 20 to 25%, as well as to discuss the production programs and rates peak periods execution of contracts, etc., not to mention improve motivation among companies on the one hand, and reduce the financial burden on the state of the other.
The work in Iraq is currently about 17 investment company global and different nationalities (American, British and Italian, Russian, Malaysian and Chinese) to develop producing oil fields and explored, and that under the contracts in the first licensing rounds and the second, third, fourth, and is obliged to invest their funds to raise capacity productivity, that the government is committed to pay 50% of the funds disbursed annually, supplemented by earnings at a rate of $ 1.5 for each extra barrel.
and spent companies during the past two years, about $ 43 billion, the government must pay $ 21.5 billion, in addition to 5.5 billion profit , so the total is owed $ 27 billion, and these investments have contributed to an increase of production of about one million barrels, was built huge facilities enjoy all the luxury items, where he lives thousands of foreign experts.
He said Iraq's oil minister, according to the statement, that there are proposals to link corporate profitability oil prices and not Only a lump sum for each additional barrel, and so are their profitability with high oil prices and decline with declining prices, and there is a second proposal, linking profitability by reducing costs to prevent the accumulation of dues to companies.
It is expected that international oil companies contracting continue to implement their investment plans to invest about $ 87 billion until 2016 , that is to invest $ 27 billion in the current year and 60 billion next year.
The total investment by international oil companies in Iraq has reached $ 17 billion in 2011 and 2012, the government of which paid about ten billion over the amounts of oil, and thus the total investments over the period of six years (2011 2016) about $ 147 billion.
and made Iraq's oil exports rose slightly last February to a record 2.597 million barrels per day compared to the export of 2,560 last January.
seeks Iraq to raise its oil exports by adding 550 thousand barrels a day after the recent agreement between the central government and the region of northern Iraq.
Iraq is facing an economic crisis that forced him to reduce the financial size of the budget as a result of lower oil prices to below $ 50 a barrel and start a policy of austerity, while the Ministry of Finance announced last month that it would increase taxes on some of the services provided.
lost Prices Oil more than 50% of its value since the middle of 2014 until the end of January last, with prices close to the lowest level in six years.
He acknowledged the Iraqi Council of Representatives late last month for the 2015 budget of the country after reducing expenses by about 4 trillion Iraqi dinars (3.43 billion dollars) to reach 119 trillion Iraqi dinars ($ 102 billion) and a deficit of 25 trillion dinars ($ 21.4 billion).
The Sandman » March 2nd, 2015, 5:17 pm
March roars like a lion: Nasdaq soars above 5000, Dow, S&P at records
Nasdaq 5000: This time it's different
KTFA, The Sandman
Poppy3 ...NO RV YET BUT CLOSER THAN EVER AND COMPLETELY A FOREGONE CONCLUSION ITS JUST AROUND THE CORNER.
I AM SO HAPPY TODAY AND IF YA'LL KNEW WHY YOU WOULD BE FULL OF JOY ALSO.
BGG the one thing our Baghdad contact has maintained is Baghdad needs money to fight ISIS. Period. He felt like one of the main ways to get it was via currency reform - ''removing the 3 zero's"...
it seems a little early to me based on the press releases over the last few days - but what do I know??
This is an emergency.
DC Highlights From Mon. TNT CC via Adept1
DC: Iraq got up to the plate on Saturday night, lined up and ready to go, and they had a meeting about the RV, taxes, customs rules and enforcement ready to go on 1. March.
They agreed to keep the tariffs and customs rules in place, and not to restart the auctions, but to hold off on the public side of the RV.
They are holding off on who can exchange in Iraq for a few days. For those who don’t care about the details, that is the news, and you can turn off and go back to sleep.
Everyone is waiting on Iraq. Everyone is prepped and ready for the tariffs and they are going forward as expected. We got that information from someone driving a truck over the border, and also from those enforcing those tariffs and fees.
The tariffs are in place throughout the country. The auctions didn’t take place because they have enough for the money. They finished paying Kurdistan, not to pay the police and military and salaries.
They decided several things in that Saturday meeting, and we have some confirmation on one of them. Abadi and his Council of Ministers decided that it would be better to take back a part of Iraq, Tikrit?
The bankers didn’t think that was part of the mix. We do not believe that they will wait until Tikrit is taken back, they just want a major success to look good before moving forward so they can roll it forward in a big celebration.
One of the strategies is to use the revaluation to soften up the troops. ISIL is paying $190 per month plus food, so this will soften up some places in Anbar and Mosul. So this is part of the military tactics; we don’t talk about that here because everyone is listening to this call, including Baghdad.
That got wrapped into this situation on Saturday night. We don’t know if today’s success was enough. They are playing this by ear. They don’t need to have the entire town be re-taken, they just need some wins on the board. That was not part of the equation until Saturday night.
DC: I’m a bit frustrated – why did this get mixed in at the last minute? When I calmed down, you realize that these things in Iraq are important to them. This does block them into a corner where this absolutely has to take place, between the auctions, banks, tariffs and all. It will happen when Dr Shabibi gets comfortable. We may have to wait a few days, maybe four days.
DC: People say “Oh, it didn’t happen today, so it will be another two weeks” but that is not how it works. This is a daily decision, pushing and pulling, maybe this extra bit would be a good idea. It’s not a giant plan to frustrate us for the last 15 months, it’s a daily back and forth.
This last one was a recommendation to Abadi that they are starting to fight in Tikrit, and maybe it would be a good idea to have a victory or good news. They didn’t want to stop the tariffs and laws, they had enough to pay their soldiers, so… they didn’t have a lot of press, just bad news about ISIL, and they had some maneuvering room.
They are prepared with their procedures and such, and by dealing with the terrorists, they are now in a wonderful spot. Nothing else needs to be done, and with the auctions, they can go at any time.
DC: In effect, with these tariff and tax laws at the new rates, they have blocked themselves into getting this done in a very short time. Also, with the auctions having stopped, they don’t have a lot of cash in hand, so they will have to change the rate.
DC: In the last few months, they all want to make sure this is absolutely perfect, and that brings up a lot of issues. They want to show that the Iraqi defense forces can beat ISIL forces, and that is a big deal. I wasn’t in the meeting, and I don’t get it; it’s crappy news and we just have to deal with it.
DC: I have to go I know this is not the news you wanted, but this is another step towards this being done. This is very positive deal.
They were absolutely ready to go Saturday night. They could and should have done it then.
Watch the news and see what develops. Watch the boards and hopefully we will see this very soon.