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Wealthwatch Thursday Chat 12-17-15
chattels: The Article IX / I of the budget law :
chattels: [specify the share of the Kurdistan region by 17 % of the total actual expenditures are paid from the Federal Ministry of Finance and the consent of the Prime Minister]. and set this share according to the oil agreement between Baghdad and Erbil, which required the province to hand over 550 000 barrels per day of production [250 000 barrels and production of Kirkuk [300 000 barrels in exchange for payment of its share of the budget by 17%.
She explained the second paragraph of the same article that this percentage is of the total actual spending [current expenditures and expenses of the investment projects] federal budget after excluding the sovereign of which expenses.
The fourth paragraph of Article IX own Bmwanh Kurdistan region drew that "When access increase or decrease in the total budget expenditures, they are added or reduced pro rata share of the Kurdistan region.
The fifth paragraph of the article noted to the allocation of a percentage of allocations of federal land forces of the Iraqi army to the Peshmerga [Kurdish] according to population ratios as part of the security system Alaracah.
chattels: " ............ the second paragraph of the same article that this percentage is of the total actual spending [current expenditures and expenses of the investment projects] federal budget after excluding the sovereign of which expenses."
chattels: " The fourth paragraph of Article IX own Bmwanh Kurdistan region drew that "When access increase or decrease in the total budget expenditures, they are added or reduced pro rata share of the Kurdistan region. "
chattels: " The fifth paragraph of the article noted to the allocation of a percentage of allocations of federal land forces of the Iraqi army to the Peshmerga [Kurdish] according to population ratios as part of the security system Alaracah."
chattels: We / I am still waiting for a full English translation of the budget and especially Article IX.
chattels: Currency Auctions Announcement No. (3097) The opening offers the sale and purchase of foreign currency in the window of the Central Bank of Iraq on 17/12/2015 and the results were as follows: DETAILS NOTES Number of banks 24 Number of remittance companies 15 Auction price selling dinar / US$ 1182 Auction price buying dinar / US$ ----- Amount sold at auction price (US$) 162,173,408 Amount purchased at Auction price (US$) ----- Total offers for buying (US$) 162,173,408 Total offers for selling (US$) -----
chattels: 3096 ............ 16-Dec ............. 1,212 ............ 1,182 chattels: 1,212
chattels: Parliament adjourned yesterday until January 16, 2016 after passing the budget.
Donnie: so is the budget really passed?
chattels: ‹@Donnie› According to the news reports, yes.
Donnie: Carter takes stock of Islamic State battles as Iraqis seek to retake Ramadi
Donnie: Reidar Visser @reidarvisser 12m12 minutes ago Bottom line from Carter's visit to Baghdad: Iraqis politely declined helicopters & attendant increased US presence www.washingtonpost.com/wo...
BOBBY: OOTW........ thank you.... were all good.... quiet day on the screen?
OOTW: YES IT IS - BUT I'M ENCOURAGED THAT THE BUDGET IS PASSED AND SOON WE WILL BE ABLE TO ACCESS THE FULL WORDING OF THE BUDGET LAW –
I ESPECIALLY WANT TO VERIFY THAT THE BUDGET CONTAINS / RETAINS TEXT RE IMPLEMENTATION OF THE TARIFFS
OOTW: I ALSO LIKE THAT THE MINISTRY OF FINANCE AND THE CBI ARE NOW MAKING ANNOUNCEMENTS THEY'LL DEAL WITH CORRUPTION
BOBBY: positive steps forward
BOBBY: Its good to see the banking sector making some changes
OOTW: ABSOLUTELY BOBBY
*SCZIN11: JUST AN OBSERVATION, MAY MEAN ABSOLUTELY NOTHING....NO MARKET RATE POSTED ON CBI WEBSITE FOR TODAYS AUCTIONS
chattels: Reidar Visser @reidarvisser 3h3 hours ago Ex State of Law MP Hanan al-Fatlawi, very anti-KRG, says some State of Law MPs double-dealed in the budget vote Wed ar-ar.facebook.com/hanan.... …
chattels: Reidar Visser @reidarvisser 3h3 hours ago Whatever the truth of Fatlawi's allegations, she presents interesting figures for the vote on the KRG budget: 146 Yes, 18 No, 11 abstained.
chattels: Reidar Visser @reidarvisser 3h3 hours ago Record of #Iraq parliament says 243 MPs were present at the budget session. If Fatlawi's figures are correct, 68 were absent during KRG vote
chattels: Reidar Visser @reidarvisser 3h3 hours ago Fatlawi's claim is State of Law stormed out, then came back and at least some of them approved the budget in the secret electronic vote.
chattels: Reidar Visser @reidarvisser 3h3 hours ago However, Fatlawi's own figures plus official figures of total MPs are consonant with the explanation that many MPs left for the KRG vote.
chattels: ‹@*SCZIN11› I erroneously posted this morning a market rate for today from yesterday
chattels: ‹@*SCZIN11› Thank you for the correct information
chattels: an MP for the National Coalition Maysoon al confirmed that the parties law and the law of the federal budget of the most important laws approved by the House of Representatives in the last legislative term.
chattels: The MP Maysoon al told all of Iraq [where], that "more than 120 bill remained hanging on a rack waiting for the government sent to the House of Representatives to read and vote on them." Stressing "the lack of smooth flow between the government and the parliament in terms of the legislation of laws."
chattels: "more than 120 bill remained ...................to read and vote on them."
chattels: wealthwatch.world/showthr. http://wealthwatch.world/showthread.php?tid=3353
chattels: Joel Wing @JoelWing2 39m39 minutes ago Iraqi Kurdistan's Political Gridlock So Bad, Baghdad MPs Mediate www.niqash.org/en/article... … via @niqash
OOTW: I JUST WANT TO SAY SOMETHING....LAST YEARS BUDGET CONTAINED TEXT SPECIFYING THE PAYMENT STRUCTURE TO BE ISSUED TO THE KURDS –
THIS IS ONE ASPECT OF THE OIL AND GAS "LAW" - THIS YEARS BUDGET IS REPORTED TO ALSO CONTAIN DETAILS OUTLINING WHAT THE KURDS ARE TO BE PAID...
AS WE SAW THIS PAST YEAR, PAYMENTS WERE NOT MADE ACCORDING TO THE 2015 BUDGET - THE GOI BROKE ITS OWN "LAW" VIA THE BUDGET
OOTW: IN THIS BUDGET, WE'VE SEEN TEXT OUTLINING THAT THE TARIFFS/CUSTOMS TAXES ARE TO BE IMPLEMENTED DURING 2016 - MY HOPE IS THAT THE GOI ACTUALLY ENFORCES THEM
Doug_W: as I undersand it
Doug_W: the Kurds failed to deliver as promnised to Bagdad as well
Doug_W: so both sides failed
OOTW: HANAN AL FATLAWI LEFT THE SLC THAT'S TOO MUCH...I HADN'T SEEN THAT....SHE PROBABLY NEEDED TO ATTEMPT TO DISTANCE HERSELF FROM THE CORRUPTION REPORTEDLY PRACTICED BY MANY IF NOT ALL SLC MEMBERS
OOTW: Regulation overview 4 Describe the key laws and regulations that make up the general legal framework regulating oil activities? A draft Hydrocarbon Law was proposed in 2007, however agreement on this draft law has been stalled for a number of reasons.
In its absence, several existing laws govern the general legal framework regulating oil activities in Iraq. Some key legislations include: •
Law No. 80 of 1961 (initiated the nationalisation of Iraq’s petroleum); • Law No. 97 of 1967 (assigned areas of development for INOC); •
Law No. 123 of 1967 (restructured INOC); and • Resolution No. 864 of 24 September 1980 (created the Supreme Technical Board).
Law No. 97 of 1967 granted INOC exclusive hydrocarbon exploration rights throughout Iraq. Article 3 of the 1967 law provides that INOC can contract others to exploit the hydrocarbons, if this is deemed prudent but under no circumstances shall INOC be able to grant concessions to other companies.
Article 4 of the 1967 law provides that any geological or geophysical data or materials shall pass to INOC without any consideration being given in exchange.
The hydrocarbon laws of Iraq also need to take account of the Iraqi Constitution, which refers to the oil and gas wealth of the country and provides for the rights of the Iraqi people to the oil.
OOTW: Kurdistan Regional Government laws In late 2007, the Kurdistan Regional Government (KRG) passed its own Oil and Gas Law (No. 22 of 2007) and has since signed production sharing agreements (PSAs) based on this law with local and foreign oil companies, including IOCs.
However, PSAs concluded by the KRG have not been approved at the federal level or by Iraq’s Ministry of Oil and are disputed by the federal government.
The federal government concluded that KRG contracts with firms currently producing oil for national consumption and signed prior to February 2007 will be considered valid further to national review and approval.
KRG contracts signed after February 2007, are deemed ‘illegal’ by the federal government until such are reviewed and approved by it. The lack of agreement on the legitimacy of the KRG signed contracts, has led to disagreement as to the payment of profits to companies producing oil under the PSAs and these disputes have, at times, previously led to cessation of production in the Kurdistan region.
Although production has resumed, the issue as to the legal validity of the PSAs in Iraq remains unresolved.
OOTW: 5 Identify and describe the government regulatory and oversight bodies principally responsible for regulating oil activities. Iraq’s Ministry of Oil has central control over oil and gas production and development in Iraq and operates through the following Iraqi NOCs (noting their resposibilities): • Oil Projects Company – approvals of project plans and designs; • Oil Exploration Company – oil and gas exploration activities; • Oil Tankers Company – marine transportation of crude; •
Oil Pipelines Company – pipeline transportation of crude; • State Oil Marketing Organisation – export of crude from Iraq; • Oil Products Distribution Company – distribution of LPG and oil products; •
Iraqi Drilling Company – well drilling, workover and completion; • North Oil Company – oil production in Kirkuk, Nineveh, Erbil, Baghdad, Diyala and part of Hilla and Kut; • South Oil Company and Missan Oil Company – oil production in the rest of Iraq; • North and South Gas Companies – utilization of natural gas available in Iraqi gas fields; • Gas Filling Company – treatment of gas received from the North and South Gas Companies; • North, Midland and South Refineries Companies – refinement of crude oil; and •
Heavy Engineering Equipment State Company – provision of heavy equipment to the Ministry of Oil Companies. The KRG’s Ministry of Natural Resources exerts control over the Kurdish region through the following entities: • Kurdistan National Oil Company; • Kurdistan Oil Trust Organisation; •
Kurdistan Exploration and Production Company; • Kurdistan Organisation for Downstream Operations; and • Kurdistan Oil Marketing Organisation.
OOTW: 11 What government body regulates oil exploration and production in your country? What is the character of that regulation? Oil exploration and production is governed by the Ministry of Oil, however in Kurdistan the KRG exerts control through the Ministry of Natural Resources. The level and nature of regulation varies between the two bodies overseeing activities.
OOTW: SO YOU SEE ANY LEGISLATION FORMED RE OIL AND GAS/NATURAL GAS REQUIRES PASSING/IMPLEMENTING LAWS WITHIN IRAQ AS WELL AS SISTER LEGISLATION IN KURDISTAN
OOTW: Oil consumption and refining In 2014, Iraq consumed 760,000 bbl/d of petroleum and other liquids. Iraq's oil consumption, which has increased by two-thirds since 2003, slightly declined in 2014 mostly because of the attacks in Iraq by ISIL that led to the shutdown of Iraq's largest refinery and fuel shortages in northern Iraq.
Most of Iraq's petroleum consumption derives from its domestic oil refineries, which are fueled by domestically produced oil. Iraq also imported roughly 100,000 bbl/d of petroleum products in 2013 and 2014. Iraq burns crude oil for power generation, averaging about 70,000 bbl/d in 2013 and 2014.
25 Total nameplate refinery capacity in Iraq is estimated at almost 1.1 million bbl/d, although estimates vary because effective capacity (what is actually available to use) has fallen below nameplate capacity in many cases.
Before the June 2014 ISIL attack on the Baiji refinery, effective refining capacity in Iraq (including the Iraqi Kurdistan Region) was almost 800,000 bbl/d. But with the Baiji refinery not being operational, Iraq's total effective capacity is now estimated below 600,000 bbl/d. Iraqi refineries produce more heavy fuel oil
OOTW: International 27 To what extent is regulatory policy or activity affected by international treaties or other multinational agreements? Although a member of OPEC, Iraq is not subject to the organisation’s production and export quota.
Iraq’s ambition of reaching a 12 million bpd production target may prove to be a sticking point during negotiation with OPEC if Iraq is to become part of the OPEC production quota system. Iraq is also a member of the following organisations which may affect regulatory policy: Arab League, Arab Monetary Fund, Council of Arab Economic Unity, International Atomic Energy Agency, International Monetary Fund, and Organisation of Arab Petroleum Exporting Countries
OOTW: (NOTE THE INTERNATIONAL ATOMIC ENERGY AGENCY, IAEA, IS THE DIVISION OF THE UN WHICH IS ALSO OVERSEEING IRAN'S NUCLEAR COMPLIANCE, OR LACK OF
Donnie: ‹@OOTW› nice jab to Iran .... be nice. I want the Rial to RV to something realistic also :)
Donnie: i still think the Rial may "RV" sooner then the Dinar. either or better yet both is fine with me. :)
chattels: Fatlawi's son is being investigated for corruption I read some time back
chattels: At his point we do not have a full transcript of the budget law. From some Arabic speaking observers my sense is that there are new / additional provisions regarding oil / gas in this years budget, to wit, disposition of oil produced over and above the 550,000 barrels, etc.
OOTW: TYVM CHATTELS
chattels: e.g., Kirk H. Sowell @UticaRisk 23h23 hours ago Kirk H. Sowell Retweeted Douglas Ollivant Yes. Article 1(b) of the 2015 budget law says 100% of revenue to state treasury. Not just the 550,000 bpd.
chattels: “Secretary Carter conveyed President Obama's message to President Barzani that the United States will continue to support the Kurdistan Region,” the statement said. It also announced that Carter has reportedly called allies for more support to Kurdish fighters fighting ISIS.
“The two also spoke of the upcoming operations, most notably the Musol operation," the statement added. Carter was welcomed by the Kurdish president and other top officials in Erbil, after meeting authorities in Baghdad, where he arrived following talks with NATO ally Turkey.
The defense secretary also told Kurdish officials that US-Kurdistan relations have been further strengthened since ISIS launched its war against Kurdistan in August 2014.
Barzani expressed his pleasure at Washington’s ongoing support for Peshmerga forces, and highlighted the importance of the US role in the war.
The Kurdish Pehmerga are expected be part of a force to liberate Mosul, the city that has been ISIS’ stronghold in Iraq ever since the militants captured it from Iraqi forces in June last year. No timeframe has been announced for the offensive.
chattels: No timeframe has been announced for the offensive.
chattels: Recent article say that the Iraqi army is not ready. The ISF and Hash'd militia have their hands full in Anbar province at Ramadi and Fallujah.
chattels: There is increased conflict between DAESH and the Peshmarga near Mosul the past few days.
chattels: ERBIL, Kurdistan Region - Peshmerga forces repelled an Islamic State (ISIS) assault Thursday on the Kaske font in western Mosul, killing 10 militants and wounding many others, a Peshmerga official said.
"ISIS militant launched a two-pronged assault against Peshmerga bunkers in the village of Shindokha on the Kaske front by taking advantage of the bad weather, but they were defeated," Majid Khalid, a Peshmerga commander, told Rudaw by phone.
Khalid added that two ISIS armored vehicles were destroyed before they reached the Peshmerga frontlines. The Peshmerga were attacked on multiple fronts on Wednesday and killed at least 70 militants, the Kurdistan Region Security Council (KRSC) said. chattels: rudaw.net/english/kurdist... http://rudaw.net/english/kurdistan/171220152
chattels: Erbil – The Kurdistan Regional Government announced on Monday exporting more than 18 million barrels of crude oil to world markets through Turkey last November, noting that these exports come to compensate the region for the shortage in the budget allocated by the central government in Baghdad.
The Ministry of Natural Resources in the provincial government said in a statement received by IraqiNews.com, “The Kurdistan region exported in November of this year 18,023,075 barrels of crude oil at a rate of 600,769 barrels per day,” indicating that, “It has been exporting oil through the pipeline network of Kurdistan to the Turkish port of Ceyhan. ”
chattels: Erbil – Economic security adviser to the Kurdistan Regional Government Bioar Khansa announced on Wednesday, that the Kurdistan region has increased the size of its oil exports to 700 000 barrels per day, noting that the government of the region is trying to increase its oil production to 900 000 barrels by the end of 2015.
chattels: The Kurds never reached the 700,000 much less the 900,000 barrels per day.