Sunday, November 11, 2007
KRG to announce two more oil deals
Oil, Kurdistan
(UPI) -- Iraq’s Kurdistan Regional Government will announce two more oil deals in coming days as it develops its oil sector with state-owned and private oil firms. There has been no response yet from Baghdad after the KRG’s announcement last Tuesday of another six production-sharing contracts it has signed. The KRG’s semiautonomous region in Iraq’s north has the geological makeup for major oil and natural gas deposits but has 0.5 percent of Iraq’s proven oil reserves.
Baghdad has called the KRG’s oil deals illegal, saying it needs to wait for a national oil law to be approved. That law is being held up for lack of agreement as to whether the federal government or regions and provinces have the authority to sign deals, among other reasons. KRG Natural Resources Minister Ashti Hawrami told United Press International in a telephone interview two additional oil deals, including at least one with “a Western company,” will be announced “in just a few days, maybe a week.” According to a KRG map of exploration blocks, it has 28 either open or pending contracts.
The KRG has signed deals with a number of smaller, more risk-taking firms, including Hunt Oil of Dallas. Larger firms fear blacklisting from Baghdad, which will likely have the say-so on the majority of Iraq’s oil deals. But Tuesday’s announcement of deals by the KRG shows the applicants for its deals are getting weightier. A subsidiary of MOL Hungarian Oil and Gas was part of two production-sharing contracts. India’s largest private oil company, Reliance Energy, and Central Europe powerhouse OMV, an Austrian firm, each signed two production-sharing contracts.
The KRG also awarded four “strategic blocks” to the Kurdistan Exploration and Production Co. and gave the discovered but not developed Khurmala oil field to the Kurdistan National Oil Co. Both KEPCO -- which will concentrate on exploration and production -- and KNOC -- an operator of discovered fields -- were newly formed under the KRG’s oil law but would send revenues to Baghdad to redistribute. Hawrami said the companies “answer to the Council of Ministers in Kurdistan and is monitored and regulated by the Ministry of Natural Resources in Kurdistan, and is recognized by the Parliament in Kurdistan.” KNOC will also build a 50,000 barrels per day refinery.
Labels: Hunt Oil Co., Khurmala oil field, Kurdistan, Kurdistan Exploration and Production Co., Kurdistan National Oil Co., MOL Hungarian Oil and Gas, oil, oil deals, OMV, PSCs, Reliance Energy
Iraqi Minister Council removes legal immunity from foreign private security firms
Republic of Iraq, Ministry of Interior, Ministry Agency of information and National Investigations
General Dept of the Technical Affairs, Headquarters of Registration and Assessment of Private Security Companies
Letter No: 937, Date: Nov 1, 2007
To: All PSC
Sub: Removing the legal immunity
According to the directions of the Minister Council regarding moving the legal immunity
from all the foreign private security companies and deal with it according to Iraqi law.
Please notify that in all your future missions and give the direction to all your staff. For
your information all the Iraqi security departments were informed about it .The MNF
confirming taking the legal actions against any violator in the future. Including signing
your passports from the traveling and Jinsseya directorate to make your residence in Iraq
legal .And the violator will face legal punishment from the Iraqi law.
Col
The Director of Registration and Assessment of PSC office
Copy to: To be informed and to take the appropriate actions …..With
respect PSCAI, PSC.
General Dept of the Technical Affairs, Headquarters of Registration and Assessment of Private Security Companies
Letter No: 937, Date: Nov 1, 2007
To: All PSC
Sub: Removing the legal immunity
According to the directions of the Minister Council regarding moving the legal immunity
from all the foreign private security companies and deal with it according to Iraqi law.
Please notify that in all your future missions and give the direction to all your staff. For
your information all the Iraqi security departments were informed about it .The MNF
confirming taking the legal actions against any violator in the future. Including signing
your passports from the traveling and Jinsseya directorate to make your residence in Iraq
legal .And the violator will face legal punishment from the Iraqi law.
Col
The Director of Registration and Assessment of PSC office
Copy to: To be informed and to take the appropriate actions …..With
respect PSCAI, PSC.
In the Name of the People - The Presidency Council
Based on what was submitted by the Council of Ministers and ratified by the Council of
Representatives and in accordance with the provisions of Article 138 (Fifth) of the
Constitution, the Presidency Council has decided in its session held on / / / to promulgate
the following law.
No. ( ) of 2007
The Law of subjecting Non-Iraqi Security Companies and its Contractors to the
Provisions of the Iraqi law
Article 1:
Non-Iraqi security companies and its non-Iraqi employees and contractors shall be
subject to the Iraqi legislations and the jurisdiction of the Iraqi judiciary in all civil and
criminal cases. All immunities granted to them in accordance with any valid legislation
shall be canceled.
Article 2:
The categories mentioned in Article 1 of this law shall be subject to the Iraqi legislations
including those related to the residency, granting visas, possessing and carrying weapons,
paying taxes, fees and customs, registering companies and granting them license to work
in the Iraqi territories.
Article 3:
The vehicles, ships, airplanes belonging to the categories mentioned in Article 1 of this
law shall be subject to the procedures of registration, licensing, checking and inspection
stipulated in the Iraqi legislations.
Article 4:
This law shall be deemed as an amendment for the Dissolved CPA Order No17 of 2004.
Article 5:
This Law shall enter into force on the date of its publishing in the Official Gazette.
Provisions of the Iraqi law
Article 1:
Non-Iraqi security companies and its non-Iraqi employees and contractors shall be
subject to the Iraqi legislations and the jurisdiction of the Iraqi judiciary in all civil and
criminal cases. All immunities granted to them in accordance with any valid legislation
shall be canceled.
Article 2:
The categories mentioned in Article 1 of this law shall be subject to the Iraqi legislations
including those related to the residency, granting visas, possessing and carrying weapons,
paying taxes, fees and customs, registering companies and granting them license to work
in the Iraqi territories.
Article 3:
The vehicles, ships, airplanes belonging to the categories mentioned in Article 1 of this
law shall be subject to the procedures of registration, licensing, checking and inspection
stipulated in the Iraqi legislations.
Article 4:
This law shall be deemed as an amendment for the Dissolved CPA Order No17 of 2004.
Article 5:
This Law shall enter into force on the date of its publishing in the Official Gazette.
Labels: Interior Ministry, Iraq, legal immunity, private security firms, PSCs
Thursday, October 04, 2007
Kurdistan signs four more oil deals
Oil, Kurdistan
AFP) - Iraq's Kurdistan regional government announced four more oil deals on Wednesday, ignoring criticism from Prime Minister Nuri al-Maliki's government and Washington of its unilateral sell-off of the country's national resources. The regional government said in a statement posted on its website that it had approved four contracts for exploration and production, and had sanctioned two new refinery projects in the Kurdish autonomous region in northern Iraq.
Two production sharing contracts (PSCs) had already been signed, with Heritage Energy Middle East Limited, a subsidiary of the Canadian firm Heritage Oil and Gas, and Perenco S.A., an affiliate of a French company of the same name. "The signing of the other two PSCs with experienced international companies will follow shortly," the statement said.
"The combined initial exploration investments on the upstream projects will be approximately 500 million dollars," it said. "Estimated investment on the two new refinery projects will be around 300 million dollars."
The Iraqi oil ministry did not immediately comment on the new deals, but Amira al-Baldawi, an MP from the Shiite coalition that leads the Baghdad government and a member of parliament's economic, investment and reconstruction committee, said the contracts were "illegal". "They shall be revised and put in accordance to the Iraqi law and the new oil law to be issued," Baldawi told AFP.
Last month, the Kurdish regional government inked a deal with Texas-based Hunt Oil Company, the first major oil contract awarded by any Iraqi authority to a foreign company since UN sanctions were imposed on Iraq when it invaded Kuwait in 1990. No details of the contract have been released but the Dallas company, which has links with the White House, has said it would begin its geological survey work in Dohuk province, near the border with Turkey, by the end of this year and would begin drilling in 2008.
The Hunt contract was declared "illegal" by Iraqi Oil Minister Hussein al-Shahristani, sparking a war of words with the regional government, which told him to stop meddling in its affairs and said he should be sacked. A senior US embassy official speaking on condition of anonymity told reporters in Baghdad last week that the Hunt deal had "needlessly elevated tensions" in Iraq. He said the US State Department had advised Hunt to wait for the Iraqi parliament to pass a much-anticipated oil and gas law that will establish a new framework for the industry but that it went ahead anyway.
The bill opens up the long state-dominated oil and gas sector to foreign investment and provides assurances that receipts will be shared equally between Iraq's 18 provinces, a measure Washington regards as key to efforts to reconcile the country's divided communities. The draft law was approved by Prime Minister Nuri al-Maliki's national unity cabinet in July but faces a tough passage in the 275-seat parliament, where the Kurdish bloc has 53 seats. The bill is expected to come before MPs this month.
The regional government said the PSC awarded to Energy Middle East Limited covered the 1,015 square kilometre (406 square mile) Miran Block in Sulaimaniyah Governorate, "a low to medium exploration risk area." Perenco S.A. has been awarded the "high exploration risk" 2,358 square kilometre (943 square mile) Sindi/Amedi Block along the Turkish border.
Regional natural resources minister Ashti Hawrami defended the deals. "The projects will spearhead international investment for the whole of Iraq," he said. "New oil discoveries under these contracts will bring large amounts of new revenues for sharing throughout Iraq."
Two production sharing contracts (PSCs) had already been signed, with Heritage Energy Middle East Limited, a subsidiary of the Canadian firm Heritage Oil and Gas, and Perenco S.A., an affiliate of a French company of the same name. "The signing of the other two PSCs with experienced international companies will follow shortly," the statement said.
"The combined initial exploration investments on the upstream projects will be approximately 500 million dollars," it said. "Estimated investment on the two new refinery projects will be around 300 million dollars."
The Iraqi oil ministry did not immediately comment on the new deals, but Amira al-Baldawi, an MP from the Shiite coalition that leads the Baghdad government and a member of parliament's economic, investment and reconstruction committee, said the contracts were "illegal". "They shall be revised and put in accordance to the Iraqi law and the new oil law to be issued," Baldawi told AFP.
Last month, the Kurdish regional government inked a deal with Texas-based Hunt Oil Company, the first major oil contract awarded by any Iraqi authority to a foreign company since UN sanctions were imposed on Iraq when it invaded Kuwait in 1990. No details of the contract have been released but the Dallas company, which has links with the White House, has said it would begin its geological survey work in Dohuk province, near the border with Turkey, by the end of this year and would begin drilling in 2008.
The Hunt contract was declared "illegal" by Iraqi Oil Minister Hussein al-Shahristani, sparking a war of words with the regional government, which told him to stop meddling in its affairs and said he should be sacked. A senior US embassy official speaking on condition of anonymity told reporters in Baghdad last week that the Hunt deal had "needlessly elevated tensions" in Iraq. He said the US State Department had advised Hunt to wait for the Iraqi parliament to pass a much-anticipated oil and gas law that will establish a new framework for the industry but that it went ahead anyway.
The bill opens up the long state-dominated oil and gas sector to foreign investment and provides assurances that receipts will be shared equally between Iraq's 18 provinces, a measure Washington regards as key to efforts to reconcile the country's divided communities. The draft law was approved by Prime Minister Nuri al-Maliki's national unity cabinet in July but faces a tough passage in the 275-seat parliament, where the Kurdish bloc has 53 seats. The bill is expected to come before MPs this month.
The regional government said the PSC awarded to Energy Middle East Limited covered the 1,015 square kilometre (406 square mile) Miran Block in Sulaimaniyah Governorate, "a low to medium exploration risk area." Perenco S.A. has been awarded the "high exploration risk" 2,358 square kilometre (943 square mile) Sindi/Amedi Block along the Turkish border.
Regional natural resources minister Ashti Hawrami defended the deals. "The projects will spearhead international investment for the whole of Iraq," he said. "New oil discoveries under these contracts will bring large amounts of new revenues for sharing throughout Iraq."
Labels: draft oil law, Heritage Energy Middle East Limited, Hunt Oil Company, KRG, Kurdistan, oil deals, Perenco S.A., PSCs, refinery projects
Tuesday, September 18, 2007
Al-Sadr demands removal of foreign security companies in Iraq
Security, Politics
(AFP) - Powerful Shiite cleric Moqtada al-Sadr on Tuesday demanded the ouster of all "criminal" foreign security companies from Iraq after private contractors gunned down civilians in a Baghdad square. The Iraqi government has already announced it is revoking the licence of US security firm Blackwater following Sunday's shootout in Baghdad's Al-Yarmukh neighbourhood which left eight people dead and wounded 13.
"We say the Iraqi government should cancel the licence of this company and all other criminal companies," Sadr said in a statement issued from his headquarters in the holy city of Najaf. "Most of (Blackwater's) members are criminals and those who have left American jails," the statement said. A top Iraqi judge said Tuesday that Blackwater could be tried in an Iraqi court over the shootout.
"This company is subject to Iraqi law and the crime committed was on Iraqi territory and the Iraqi judiciary is responsible for tackling the case," said Abdul Sattar Ghafour Bairaqdar from Iraq's Supreme Judiciary Council, the country's highest court. The judge said the case against Blackwater could be filed either by the relatives of the victims or by the government.
US and Iraqi sources in Baghdad said Sunday's shooting erupted after a bomb exploded near a US diplomatic convoy, but a US government incident report said armed insurgents fired on the convoy and Blackwater guards responded. "We have heard of the cowardly attack committed by the so-called security company against our people without any justification," said Sadr, who heads the country's most powerful Shiite movement and who is backed by a thousands-strong militia known as the Mahdi Army.
"This has only happened because the occupier brought this company to our country," he added, referring to the US military. "We demand an urgent investigation by the government so that the criminals are punished... We also demand compensation for families of all the dead and wounded." But there was doubt on Tuesday that Baghdad will go ahead with its threat to evict the 1,000 or so Blackwater guards providing personal security for US civilian officials working in Iraq after US Secretary of State Condoleezza Rice attempted to smooth tempers with a diplomatic phone call.
Political analyst Peter Singer, in an article posted on the Brookings Institution website, said the US military in Iraq is stretched thin and the US government's diplomatic security force "has been hollowed out." This means that in the short term, he said, Washington will have to "ignore the Iraqis' wishes and just keep on using Blackwater contractors as before; find another company to step in and quick-fill take on these roles in lieu of the firm; or negotiate with the Iraqis to find terms under which (Blackwater) might continue to carry out the operation."
"We say the Iraqi government should cancel the licence of this company and all other criminal companies," Sadr said in a statement issued from his headquarters in the holy city of Najaf. "Most of (Blackwater's) members are criminals and those who have left American jails," the statement said. A top Iraqi judge said Tuesday that Blackwater could be tried in an Iraqi court over the shootout.
"This company is subject to Iraqi law and the crime committed was on Iraqi territory and the Iraqi judiciary is responsible for tackling the case," said Abdul Sattar Ghafour Bairaqdar from Iraq's Supreme Judiciary Council, the country's highest court. The judge said the case against Blackwater could be filed either by the relatives of the victims or by the government.
US and Iraqi sources in Baghdad said Sunday's shooting erupted after a bomb exploded near a US diplomatic convoy, but a US government incident report said armed insurgents fired on the convoy and Blackwater guards responded. "We have heard of the cowardly attack committed by the so-called security company against our people without any justification," said Sadr, who heads the country's most powerful Shiite movement and who is backed by a thousands-strong militia known as the Mahdi Army.
"This has only happened because the occupier brought this company to our country," he added, referring to the US military. "We demand an urgent investigation by the government so that the criminals are punished... We also demand compensation for families of all the dead and wounded." But there was doubt on Tuesday that Baghdad will go ahead with its threat to evict the 1,000 or so Blackwater guards providing personal security for US civilian officials working in Iraq after US Secretary of State Condoleezza Rice attempted to smooth tempers with a diplomatic phone call.
Political analyst Peter Singer, in an article posted on the Brookings Institution website, said the US military in Iraq is stretched thin and the US government's diplomatic security force "has been hollowed out." This means that in the short term, he said, Washington will have to "ignore the Iraqis' wishes and just keep on using Blackwater contractors as before; find another company to step in and quick-fill take on these roles in lieu of the firm; or negotiate with the Iraqis to find terms under which (Blackwater) might continue to carry out the operation."
Labels: foreign security companies, Moqtada Al-Sadr, PSCs
Iraqi government to review status of all private security firms in Iraq
Security
(BBC) - Iraq has said it will review the status of all private security firms operating in the country after a gunfight in Baghdad left eight civilians dead. The Iraqi government said it wanted to determine whether such contractors were operating in compliance with Iraqi law. The review comes a day after the Iraqi authorities ordered the US-based firm, Blackwater USA, to suspend all operations and leave Iraq immediately.
Blackwater has said its guards acted in self-defence in Sunday's incident. But the Iraqi interior ministry has claimed the men fired "randomly at citizens" in a crowded square in the capital, killing innocent bystanders and a policeman. The Blackwater guards were protecting a convoy carrying officials from the US State Department at the time.
Earlier, the US Secretary of State, Condoleezza Rice, telephoned Prime Minister Nouri Maliki to express her regret over the deaths and pledge to help carry out a "fair and transparent" investigation into the incident.
BLACKWATER USA FACTS
Founded in 1997 by three former US Navy SEALs
Headquarters in North Carolina
One of at least 28 Private Security Companies in Iraq
Employs 744 US citizens, 231 third-country nationals, and 12 Iraqis to protect US state department in Iraq (May 2007)
Provided protection for former CPA head Paul Bremer
Four employees killed by mob in Falluja in March 2004
Personnel have no combat immunity under international law if they engage in hostilities
A spokesman for the US State Department told the AFP news agency that during her phone call to Mr Maliki, Ms Rice had "reiterated that the United States does everything it can to avoid such loss of life in contrast to the enemies of the Iraqi people who deliberately target civilians". The two agreed to hold any wrongdoers accountable, according to Mr Maliki's spokesman.
Thousands of often heavily armed private security guards are employed in Iraq. Although they have no combat immunity under international law if they engage in hostilities, many critics say they are accountable only to their employers. Blackwater is one of the biggest private security contractors in Iraq and is reported to have a contract worth $300m (£150m) with the State Department to protect its diplomatic staff and equipment there. The BBC's Justin Webb in Washington says Blackwater's suspension could be a potentially serious blow to the department's work in Iraq.
Blackwater has said its guards acted in self-defence in Sunday's incident. But the Iraqi interior ministry has claimed the men fired "randomly at citizens" in a crowded square in the capital, killing innocent bystanders and a policeman. The Blackwater guards were protecting a convoy carrying officials from the US State Department at the time.
Earlier, the US Secretary of State, Condoleezza Rice, telephoned Prime Minister Nouri Maliki to express her regret over the deaths and pledge to help carry out a "fair and transparent" investigation into the incident.
BLACKWATER USA FACTS
Founded in 1997 by three former US Navy SEALs
Headquarters in North Carolina
One of at least 28 Private Security Companies in Iraq
Employs 744 US citizens, 231 third-country nationals, and 12 Iraqis to protect US state department in Iraq (May 2007)
Provided protection for former CPA head Paul Bremer
Four employees killed by mob in Falluja in March 2004
Personnel have no combat immunity under international law if they engage in hostilities
A spokesman for the US State Department told the AFP news agency that during her phone call to Mr Maliki, Ms Rice had "reiterated that the United States does everything it can to avoid such loss of life in contrast to the enemies of the Iraqi people who deliberately target civilians". The two agreed to hold any wrongdoers accountable, according to Mr Maliki's spokesman.
Thousands of often heavily armed private security guards are employed in Iraq. Although they have no combat immunity under international law if they engage in hostilities, many critics say they are accountable only to their employers. Blackwater is one of the biggest private security contractors in Iraq and is reported to have a contract worth $300m (£150m) with the State Department to protect its diplomatic staff and equipment there. The BBC's Justin Webb in Washington says Blackwater's suspension could be a potentially serious blow to the department's work in Iraq.
Labels: Blackwater, Iraq, Iraqi government, PMCs, private security firms, PSCs, security, U.S. State Department
Tuesday, August 21, 2007
CRS report - Private Security Contractors in Iraq: Background, Legal Status, and Other Issues
Report
The United States is relying heavily on private firms to supply a wide variety of services in Iraq, including security. From the information available in published sources, this apparently is the first time that the United States has depended on contractors to provide such extensive security in a hostile environment. In Iraq, private firms known as Private Security Companies (PSC) are currently providing security services such as the protection of individuals, nonmilitary transport convoys, buildings and other economic infrastructure, as well as the training of Iraqi police and military personnel.
The use of armed contractors raises several concerns for many Members, including transparency and accountability. Transparency issues include the lack of public information on the terms of their contracts, including their costs and the standards governing their hiring and performance, as well as the background and training of those hired under contract. The apparent lack of a practical means to hold contractors accountable under U.S. law for abuses and other transgressions, and the possibility that they could be prosecuted by foreign courts, is also a source of concern.
This report summarizes what is currently known about companies that provide personnel for security missions in Iraq and some sources of controversy surrounding them. A treatment of legal status and authorities follows, including an overview of relevant international law as well as Iraqi law, which currently consists primarily of Coalition Provisional Authority (CPA) orders that remain in effect until superceded. The various possible means for prosecuting contractors under U.S. law in civilian or military courts are detailed, followed by a discussion of possible issues for Congress. This report will be updated as events warrant.
FULL REPORT: Congressional Research Service - "Private Security Contractors in Iraq: Background, Legal Status, and Other Issues,"
Labels: 10th Iraqi Army division, accountability, Congressional Research Service, contractors, federal law, international law, Iraqi war, Military law, private security companies, PSCs, security
