Monday, May 21, 2007
Gulf investors interested in Kurdistan
Economy, Kurdistan
With stability, peace and a willingness to develop the area, the Kurdish Regional Government put down the Kurdish Regional Investment Law No 4, which was issued in mid-2006. According to Eamad Jamil Mazouri, the Kurdish Regional Government's General Representative to the UAE, the process to attract investment to Kurdistan started as early as 1992. According to Mazouri, when Nechirvan Barzani became prime minister in 1998, he introduced a whole new vision.
"He was highly interested in Dubai as a superb model of a dynamic fast-growing metropolis," Mazouri said. After the end of Saddam Hussain's regime, Iraq voted on the constitution that approved a federal model for Iraq. In 2005, the Kurdish region constitution was issued.
The recent months have witnessed a growing interest in Kurdistan. In a recent economic conference in the UAE, a number of Gulf investors expressed their interest in energy supply, road and water projects, Mazouri said. "We have actually finalised some contracts [with UAE entity] such as Dana Gas, Sharjah, which signed agreements with the Kurdistan Regional Government to study gas development and utilisation potential in Iraqi Kurdistan," he said. The total cost of the project is $400 million.
Dana Gas and its Crescent Petroleum affiliate will launch an industrial gas complex concept called "Kurdistan Gas City", designed to promote private sector investment and employment. Under a separate service contract, Dana Gas will develop, process and transport gas from the Khor Mor field on a fast-track basis. Dana Gas will also appraise Chemchemal gas field, which is needed to supply power plants under construction near the cities of Erbil and Suleymania, by January 2008.
The Kurdish regional government may also establish a free zone to attract more investments. "The free zone will be established close to the Kurdish-Turkish borders in Zakho" Mazouri said. A new $300 million airport is being built in the city of Erbil, which will be able to handle the biggest aircraft in the world, including the Russian Antonov 225 cargo plane and the American C-5 Galaxy. The airport's new runway 18/36 will be one of the longest in the world at 4,800 metres.
Additionally, the Iraqi Kurdish regional government and a Dubai firm are also to build a $400 million "Media City" in Erbil. Under the deal to create the Erbil City Media Company, the regional government will have a 60 per cent stake and a Dubai-based TV and cinema production company will hold the remaining 40 per cent. Six satellite television stations currently air from Kurdistan, which is home to hundreds of foreign companies, including 400 Turkish ones. This project is to see light in two years' time.
The Kurdistan Company for Real Estate Development presented the specifications draft for the construction of a mall in Kurdistan valued at $120 million and on an area of 104,000 square metres; it is expected to be completed within four years. According to the plan proposed, the mall will include a hotel, a commercial offices complex, big retail market, large shopping centre, three buildings of residential apartments and a recreational area.
Kurdistan and the rest of Iraq have become even more dramatic. The plains around Erbil are the location for luxury housing developments. They have names like the British Village, which resembles a gated-California suburb, and the Dream City, which will have a conference centre, supermarket and a American-style school.
The Turkish developers of Naz City, a high-rise condominium complex, are trying to sell house-proud Kurds on modern apartment living. An American company is planning to build Iraq's first ski resort in the mountains near the Turkish and Iranian borders. Mazouri was optimistic about the future. "The new policy has opened great opportunities for Kurdistan Al Iraq. We will soon see a tourist destination open to all the people in the area, a prosperous entity with open arms for all," he said with a smile.
"He was highly interested in Dubai as a superb model of a dynamic fast-growing metropolis," Mazouri said. After the end of Saddam Hussain's regime, Iraq voted on the constitution that approved a federal model for Iraq. In 2005, the Kurdish region constitution was issued.
The recent months have witnessed a growing interest in Kurdistan. In a recent economic conference in the UAE, a number of Gulf investors expressed their interest in energy supply, road and water projects, Mazouri said. "We have actually finalised some contracts [with UAE entity] such as Dana Gas, Sharjah, which signed agreements with the Kurdistan Regional Government to study gas development and utilisation potential in Iraqi Kurdistan," he said. The total cost of the project is $400 million.
Dana Gas and its Crescent Petroleum affiliate will launch an industrial gas complex concept called "Kurdistan Gas City", designed to promote private sector investment and employment. Under a separate service contract, Dana Gas will develop, process and transport gas from the Khor Mor field on a fast-track basis. Dana Gas will also appraise Chemchemal gas field, which is needed to supply power plants under construction near the cities of Erbil and Suleymania, by January 2008.
The Kurdish regional government may also establish a free zone to attract more investments. "The free zone will be established close to the Kurdish-Turkish borders in Zakho" Mazouri said. A new $300 million airport is being built in the city of Erbil, which will be able to handle the biggest aircraft in the world, including the Russian Antonov 225 cargo plane and the American C-5 Galaxy. The airport's new runway 18/36 will be one of the longest in the world at 4,800 metres.
Additionally, the Iraqi Kurdish regional government and a Dubai firm are also to build a $400 million "Media City" in Erbil. Under the deal to create the Erbil City Media Company, the regional government will have a 60 per cent stake and a Dubai-based TV and cinema production company will hold the remaining 40 per cent. Six satellite television stations currently air from Kurdistan, which is home to hundreds of foreign companies, including 400 Turkish ones. This project is to see light in two years' time.
The Kurdistan Company for Real Estate Development presented the specifications draft for the construction of a mall in Kurdistan valued at $120 million and on an area of 104,000 square metres; it is expected to be completed within four years. According to the plan proposed, the mall will include a hotel, a commercial offices complex, big retail market, large shopping centre, three buildings of residential apartments and a recreational area.
Kurdistan and the rest of Iraq have become even more dramatic. The plains around Erbil are the location for luxury housing developments. They have names like the British Village, which resembles a gated-California suburb, and the Dream City, which will have a conference centre, supermarket and a American-style school.
The Turkish developers of Naz City, a high-rise condominium complex, are trying to sell house-proud Kurds on modern apartment living. An American company is planning to build Iraq's first ski resort in the mountains near the Turkish and Iranian borders. Mazouri was optimistic about the future. "The new policy has opened great opportunities for Kurdistan Al Iraq. We will soon see a tourist destination open to all the people in the area, a prosperous entity with open arms for all," he said with a smile.
Labels: Crescent Petroleum, Dana gas, free zone, investment, Khor Mor Gas Field, Kurdistan, Kurdistan Gas City, UAE
Friday, April 27, 2007
Iraqi oil ministry says oil contracts not signed with central govt. will be considered illegal
Oil
(Reuters) - Iraq's oil ministry said on Thursday foreign firms should sign oil contracts only with the central government until a new oil law is passed, adding that deals outside its jurisdiction would be considered illegal.
An oil industry source told Reuters the warning, made in a ministry statement after Oil Minister Hussain al-Shahristani met the Russian envoy to Baghdad, referred to contracts signed recently without the approval of the central government.
"Foreign companies should only sign contracts through the central government and the oil ministry. The ministry warns companies who violate Iraqi law of the consequences of their actions and any contract that is signed outside the jurisdiction of the central Iraqi government is considered illegal." Iraq's Kurdistan regional government has signed several agreements with foreign companies, including a service contract last week with United Arab Emirate's Dana Gas.
While Kurds favour agreements that would share production with foreign firms, such deals have drawn criticism from some Shi'ite and Sunni Arab nationalists. Ashti Hawrami, the Kurdish region's minister of natural resources, said it could clinch deals with any company it chose. "If they do not want to agree on the remaining contentious points we will implement our own laws for the Kurdistan region according to the constitution," he told Reuters.
Iraq's central government and Kurdish officials are currently trying to resolve disputes over the draft oil law, which would determine control of the world's third-largest oil reserves. The law has yet to be approved by parliament. Hawrami has said annexes to the draft law that would wrest oilfields from regional governments and place them under a new state-oil company are unconstitutional.
Shares of Norway's DNO, an independent producer about to start drilling for oil at its Tawke field in the Kurdish-controlled north, fell as much as 4.5 percent after the oil ministry comments appeared to cast doubt on its production agreement with the Kurdish region. Shares later pared their losses. An oil industry source told Reuters in Baghdad that the Iraqi government had no problem with a "Norwegian firm" that had signed a deal with the Kurds, without specifying DNO by name. In Olso, DNO said it was confident about the validity of its oil production deal with Iraq's regional Kurdish authorities.
Iraq's Deputy Prime Minister Barham Salih, an architect of the draft oil law, told Reuters after the cabinet passed it in February that it would allow the Kurdish regional government to review existing contracts it has signed with foreign firms to ensure consistency with the terms of the new law. Salih said a commission of independent experts would ratify consistency in case of contention and that regional authorities would be able to negotiate oil contracts with foreign companies based on "maximising revenues for Iraqi people."
An oil industry source told Reuters the warning, made in a ministry statement after Oil Minister Hussain al-Shahristani met the Russian envoy to Baghdad, referred to contracts signed recently without the approval of the central government.
"Foreign companies should only sign contracts through the central government and the oil ministry. The ministry warns companies who violate Iraqi law of the consequences of their actions and any contract that is signed outside the jurisdiction of the central Iraqi government is considered illegal." Iraq's Kurdistan regional government has signed several agreements with foreign companies, including a service contract last week with United Arab Emirate's Dana Gas.
While Kurds favour agreements that would share production with foreign firms, such deals have drawn criticism from some Shi'ite and Sunni Arab nationalists. Ashti Hawrami, the Kurdish region's minister of natural resources, said it could clinch deals with any company it chose. "If they do not want to agree on the remaining contentious points we will implement our own laws for the Kurdistan region according to the constitution," he told Reuters.
Iraq's central government and Kurdish officials are currently trying to resolve disputes over the draft oil law, which would determine control of the world's third-largest oil reserves. The law has yet to be approved by parliament. Hawrami has said annexes to the draft law that would wrest oilfields from regional governments and place them under a new state-oil company are unconstitutional.
Shares of Norway's DNO, an independent producer about to start drilling for oil at its Tawke field in the Kurdish-controlled north, fell as much as 4.5 percent after the oil ministry comments appeared to cast doubt on its production agreement with the Kurdish region. Shares later pared their losses. An oil industry source told Reuters in Baghdad that the Iraqi government had no problem with a "Norwegian firm" that had signed a deal with the Kurds, without specifying DNO by name. In Olso, DNO said it was confident about the validity of its oil production deal with Iraq's regional Kurdish authorities.
Iraq's Deputy Prime Minister Barham Salih, an architect of the draft oil law, told Reuters after the cabinet passed it in February that it would allow the Kurdish regional government to review existing contracts it has signed with foreign firms to ensure consistency with the terms of the new law. Salih said a commission of independent experts would ratify consistency in case of contention and that regional authorities would be able to negotiate oil contracts with foreign companies based on "maximising revenues for Iraqi people."
Labels: Ashti Hawrami, Baghdad government, Barham Salih, Dana gas, DNO, draft oil law, Hussain al-Shahristani, Norway, Oil Ministry, UAE
Monday, April 23, 2007
Al-Maliki drums up support from region's Sunni-led governments
Security, Region
(AP) - Iraqi Prime Minister Nouri al-Maliki got a strong endorsement from the Egyptian leadership as he began a tour to drum up support from fellow Arab nations for his government and its efforts to reduce widespread sectarian violence. Al-Maliki, making his first visit as prime minister to Egypt, the Arab world's most populous nation, met with President Hosni Mubarak for about 45 minutes Sunday and later held talks with his Egyptian counterpart Ahmed Nazif.
Al-Maliki's visit came 10 days before two conferences on Iraq will be held in the Egyptian Red Sea resort of Sharm el-Sheik. They will be attended by Iraq's neighbors as well as Bahrain and Egypt, and the five permanent members of the U.N. Security Council - the United States, Russia, China, France and Britain - and other members of the Group of Eight industrialized nations.
Al-Maliki won't attend those meetings but is lobbying for more help from the mostly Sunni-led governments of the Arab world in stopping violence in Iraq. Nazif said they discussed the situation in Iraq and international efforts to help the embattled Arab nation. "Egypt stands by Iraq and we affirm our support to the Iraqi government's efforts for reconciliation between all parts of the Iraqi society and we condemn terrorism that does not differentiate between anyone," Nazif added.
Al-Maliki planned to travel next to Kuwait and aides said the United Arab Emirates and Oman might be added to his agenda. The Iraqi leader also said "there are efforts to release" five Iranians who were captured by U.S. forces on Jan. 11 in the northern city of Irbil in Kurdish-controlled northern Iraq, 220 miles north of Baghdad. U.S. authorities said the five detained Iranians included the operations chief and other members of Iran's elite Quds Force, which is accused of arming and training Iraqi militants.
On Tuesday, he said his Iraqi government is holding talks with some insurgent groups, including members of Saddam Hussein's former regime, as part of a reconciliation plan aimed at reducing fighting and terrorist attacks that have left thousands of people dead in Iraq in the past few years . Al-Maliki did not identify the groups his government is in contact with, but said that when the Sharm el-Sheik conference takes place on May 3-4, "we will have good chances for reconciliation."
In June, al-Maliki announced a 24-point national reconciliation program that offers amnesty to members of the Sunni-led insurgency who were not involved in "terrorist activities," and amends a law that had removed senior members of Saddam's Baath Party from their jobs. Earlier this month, the prime minister visited Japan and South Korea, members of the U.S.-led coalition in Iraq.
Al-Maliki's visit came 10 days before two conferences on Iraq will be held in the Egyptian Red Sea resort of Sharm el-Sheik. They will be attended by Iraq's neighbors as well as Bahrain and Egypt, and the five permanent members of the U.N. Security Council - the United States, Russia, China, France and Britain - and other members of the Group of Eight industrialized nations.
Al-Maliki won't attend those meetings but is lobbying for more help from the mostly Sunni-led governments of the Arab world in stopping violence in Iraq. Nazif said they discussed the situation in Iraq and international efforts to help the embattled Arab nation. "Egypt stands by Iraq and we affirm our support to the Iraqi government's efforts for reconciliation between all parts of the Iraqi society and we condemn terrorism that does not differentiate between anyone," Nazif added.
Al-Maliki planned to travel next to Kuwait and aides said the United Arab Emirates and Oman might be added to his agenda. The Iraqi leader also said "there are efforts to release" five Iranians who were captured by U.S. forces on Jan. 11 in the northern city of Irbil in Kurdish-controlled northern Iraq, 220 miles north of Baghdad. U.S. authorities said the five detained Iranians included the operations chief and other members of Iran's elite Quds Force, which is accused of arming and training Iraqi militants.
On Tuesday, he said his Iraqi government is holding talks with some insurgent groups, including members of Saddam Hussein's former regime, as part of a reconciliation plan aimed at reducing fighting and terrorist attacks that have left thousands of people dead in Iraq in the past few years . Al-Maliki did not identify the groups his government is in contact with, but said that when the Sharm el-Sheik conference takes place on May 3-4, "we will have good chances for reconciliation."
In June, al-Maliki announced a 24-point national reconciliation program that offers amnesty to members of the Sunni-led insurgency who were not involved in "terrorist activities," and amends a law that had removed senior members of Saddam's Baath Party from their jobs. Earlier this month, the prime minister visited Japan and South Korea, members of the U.S.-led coalition in Iraq.
Labels: Ahmed Nazif, Egypt, Hosni Mubarak, insurgent groups, Kuwait, Nouri Al-Maliki, Oman, Sharm el-Sheikh, UAE
Monday, April 09, 2007
UAE oil company to finalise study on oil exploration
Oil, UAE
(The Peninsula) - The UAE's Crescent Petroleum met with Iraqi officials this week to finalise a joint study on an oil exploration area in southern Iraq, Crescent said in a statement yesterday. Iraq's cabinet endorsed a draft oil law in February that aims to lure billions of dollars of foreign investment to boost the country's output. The law is still awaiting parliament's ratification. Many international companies have undertaken studies of oil and gas fields and training programmes for Iraqi officials as they position themselves to win stakes in the country's prized oilfields.
"Crescent Petroleum as a company from the region is firmly committed to Iraq and its oil industry for the long term," Crescent Executive Director Majid Jafar told Reuters yesterday. The exploration area to be studied is near the southern city of Basra and the border with Kuwait, Crescent said. It did not give the name of the area.
Crescent has conducted studies for other regions in Iraq, and has also drawn up a development plan for the giant southern Ratawi field. Ratawi's potential output capacity is at least 200,000 barrels per day.
"Crescent Petroleum as a company from the region is firmly committed to Iraq and its oil industry for the long term," Crescent Executive Director Majid Jafar told Reuters yesterday. The exploration area to be studied is near the southern city of Basra and the border with Kuwait, Crescent said. It did not give the name of the area.
Crescent has conducted studies for other regions in Iraq, and has also drawn up a development plan for the giant southern Ratawi field. Ratawi's potential output capacity is at least 200,000 barrels per day.
The new 10-month study will look at methods for seismic measurement and preparation of geological studies of the region. Crescent representatives and Iraqi officials met in Amman, Jordan. The meetings followed on from a technical cooperation agreement that Crescent and the Iraqi Oil Exploration Company signed in September 2005.
Iraq's oil sector has been hampered by decades of sanctions under Saddam Hussein and years of violence since the U.S.-led invasion in March 2003. Iraq said earlier this week that it had invited 15 Arab, Asian and American firms to drill 100 oil wells in the country's south as part of efforts to boost production. The invitations were issued at the end of March and will close at the end of May.
Iraq's oil sector has been hampered by decades of sanctions under Saddam Hussein and years of violence since the U.S.-led invasion in March 2003. Iraq said earlier this week that it had invited 15 Arab, Asian and American firms to drill 100 oil wells in the country's south as part of efforts to boost production. The invitations were issued at the end of March and will close at the end of May.
Labels: Crescent Petroleum, Iraqi Oil Exploration Company, Majid Jafar, Ratawi field, UAE
Saturday, March 17, 2007
UAE, Kurdistan trade conference begins Wednesday
Business, Region
(Iraq Directory) An official in Kurdistan region announced on Monday that a conference on trade and investment between the region and the United Arab Emirates will be held in Dubai on Wednesday for two days. The Minister of Planning in the government of the region, Othman Shwani, told the reporters that the conference "will be held on 14th and 15th of March in Dubai, for the purpose of encouraging foreign companies to participate in investments in Iraq's Kurdistan".
He continued that "the conference which will include the fields of investment, trade and the reconstruction process in Kurdistan, will involve about 500 American companies and Emirates, as well as 157 Kurdistani companies from Arbil, Sulaymaniyah, Dahuk and Kirkuk". He confirmed that the conference will be held "in cooperation and coordination between government of the Kurdistan and the American officials in Iraq". The Minister of Planning said "we will devote part of the conference to exchange experiences and learn from the successful experience of the Emirate of Dubai and to encourage companies working there to come to Kurdistan".
Labels: Dubai, Kurdistan, Othman Shwani, trade conference, UAE
