Wednesday, July 25, 2007
Parliament Approves Law For Foreign Investment In Oil Refineries
Trade
(Asharq Al Awsat Newspaper) - 25 JUL - Yesterday, the Iraqi Parliament approved a draft law which will open the way for foreign companies to build refineries in Iraq and administrate them. With this law, the local governments will be able to deal with these companies independently. This law is different from the old oil law. The Iraqi government has presented the draft oil law to the Parliament; however, the Parliament has not started discussions on it yet.
Yesterday, Iraqi TV broadcasted the Parliament session and the Parliament approved the refinery law. The law states that the Ministry of Oil will provide oil to the investment companies at international prices without counting the transportation costs. The investment companies will have the right to determine the prices of their products and have the right to sell the oil inside Iraq or outside Iraq. These companies will be able to use the Iraqi oil institutions such as oil storage facilities, harbors and the pipe lines.
Labels: foreign companies, law, local governments, Ministry of Oil, oil refineries
Thursday, May 17, 2007
Iran given preferential treatment for southern Iraq contracts
Oil
(Azzaman) - Prime Miniter Nour al-Maliki has given Iran preferential treatment in winning contracts in southern Iraq. The move signals the growing influence Tehran exercises in the country particularly in southern provinces where Iraq’s largest and most prolific oil fields are situated.
Maliki is reported to have officially invited Iranian firms to construct four refineries in the area which recently has been the scene of sporadic fighting between Shiite militias – which are generally pro-Tehran – and U.S. and Iraqi troops.
The Iranian firms are to make their offers to build these refineries. The Oil Ministry has asked foreign firms to submit their offers to start working on the 10 refineries. The countries are now considering building a pipeline to carry Iraqi crude to Iranian refineries in Abadan. As foreign firms are reluctant to work in Iraq due to the upsurge in violence, the Iranians seem to be willing to replace them despite security concerns.
Maliki is reported to have officially invited Iranian firms to construct four refineries in the area which recently has been the scene of sporadic fighting between Shiite militias – which are generally pro-Tehran – and U.S. and Iraqi troops.
The Iranian firms are to make their offers to build these refineries. The Oil Ministry has asked foreign firms to submit their offers to start working on the 10 refineries. The countries are now considering building a pipeline to carry Iraqi crude to Iranian refineries in Abadan. As foreign firms are reluctant to work in Iraq due to the upsurge in violence, the Iranians seem to be willing to replace them despite security concerns.
Labels: Iran, Nouri Al-Maliki, oil fields, oil refineries
Tuesday, May 15, 2007
Iraq to invite India to establish refineries
Oil
(NDTV Profit) - Iraq will press Indian firms to set up refineries there during a four-day visit to India by Oil Minister Hussain al-Shahristani later this month, an Iraqi official said on Monday. "We will invite India to establish refineries in Iraq ... the capacity of our refineries is very limited," said Muayad Hussain, Iraq's charge d'affaires in India. Shahristani is due in India from 24-27 May.
Iraq has a refining capacity of 603,000 barrels per day. It produces 477,000 bpd of refined products and consumption stands at 514,000 bpd, according to the OPEC Web site. During a visit to the Saudi capital Riyadh earlier this month, Oil Minister Murli Deora met Shahristani. The participation of Indian state explorer Oil and Natural Gas Corp. and other firms in Iraq's oil sector was raised.T he Iraqi minister invited Indian Oil Corp. and Engineers India Ltd. to consider entering the downstream sector.
Hussain said in New Delhi that the exploration of the Tuba oil field in southern Iraq could also feature in talks between the two countries. ONGC, Reliance Industries Ltd. and Algeria's Sonatrach tried in 2000 to secure Tuba. Iraq is expected to enact an oil law by May-end that would allow its various regions to negotiate oilfield contracts with foreign investors.
Baghdad desperately needs foreign investment to revive its shattered economy, which relies heavily on oil export revenues. The country straddles the world's third largest oil reserves. Decades of war, sanctions, under-investment and now widespread violence and sabotage have left it critically short of fuel. It has to import nearly half of all its gasoline. Iraq has eight refineries, none of which were damaged during the U.S.-led invasion in 2003. Oil officials say that Iraq's refineries are operating at only 50-75 percent of capacity, forcing Baghdad to import most of its fuel.
Labels: Engineers India Ltd., Hussain al-Shahristani, India, Oil and Natural Gas Corp., oil refineries, Tuba oil field
Saturday, May 05, 2007
Iraq invites Indian company to set up oil refineries
Oil
(Business Standard) - Iraq has invited Indian Oil Corporation (IOC), the country’s largest oil refiner, to set up refineries in the war-torn country, and also participate in other downstream projects, a government statement said.
Petroleum Minister Murli Deora, who is currently on a visit to Riyadh in Saudi Arabia to participate in the Second Ministerial Energy Round Table of Asian Oil Producing and Major Asian Oil Importing Countries, met Iraqi Oil Minister Hussain Al-Shahristani and discussed ONGC Videsh’s (OVL) participation in Iraq’s upstream sector. OVL and Reliance Industries have evinced interest in entering Iraq’s oil exploration sector.
OVL, Reliance and Algeria’s Sonatrach were in talks with the Saddam Hussein regime before the US took over Iraq in 2000. The UN sanctions that came in after 2000 prevented further talks from talking place. Iraq has proven oil reserves of 112 billion barrels which makes it the world’s second largest, behind Saudi Arabia.
Petroleum Minister Murli Deora, who is currently on a visit to Riyadh in Saudi Arabia to participate in the Second Ministerial Energy Round Table of Asian Oil Producing and Major Asian Oil Importing Countries, met Iraqi Oil Minister Hussain Al-Shahristani and discussed ONGC Videsh’s (OVL) participation in Iraq’s upstream sector. OVL and Reliance Industries have evinced interest in entering Iraq’s oil exploration sector.
OVL, Reliance and Algeria’s Sonatrach were in talks with the Saddam Hussein regime before the US took over Iraq in 2000. The UN sanctions that came in after 2000 prevented further talks from talking place. Iraq has proven oil reserves of 112 billion barrels which makes it the world’s second largest, behind Saudi Arabia.
Labels: Hussain al-Shahristani, Indian Oil Corporation, Iraq, Murli Deora, oil refineries, OVL
Sunday, March 25, 2007
$60 million barrel refinery deal for northern Iraq
Oil
(Azzaman) - Plans are in place to construct two 10,000 barrel refineries in northern Iraq. The Ministry of Oil has signed a contract with state-owned General Company for Designs and Consultancy and other Iraqi firms to build the refineries. The 77-billion dinar (US$ 60,215,053) deal calls for the manufacture and installation of the equipment for the two refineries, one in Arbil and the other in Sulaimaniya.On completion, the refineries are expected to ease the current chronic fuel shortages in the Kurdish north. A statement by the ministry did not say when the refineries will be ready and whether Iraqi firms can do the job with foreign help. The statement said six state-owned firms belonging to the Ministry of Industry and Minerals were coordinating efforts to complete the refineries. It said the firms were involved in the construction of 10 such refineries in provinces in the central and southern parts of Iraq.
Labels: Arbil, General Company for Designs and Consultancy, Ministry of Oil, oil refineries, Sulaimaniya.
Tuesday, March 13, 2007
Poland to build rail terminals in Kurdistan
Kurdistan, Business
(KTV) Companies from Poland and the Netherlands are currently on a visit to Kurdistan to examine various key projects including rail links and oil refineries. Representatives of the companies met with Osman Shwani, KRG Planning Minister, to negotiate the projects. At the meeting Osman Shwani pointed out that the Kurdistan Region's Investment Law made it easier for companies to set up subsidiaries here, adding that the security and stability in the region helps encourage foreign companies to come and invest in Kurdistan.
The KRG Planning Minister urged the Polish and Dutch companies to explore all potential areas of investment and said that they would receive the ministry’s full support. The two companies said they hoped that the people of Kurdistan would be able to benefit from the proposed projects. Representatives of Bumar, a Polish company, met with Said Sofi, KRG Transport Minister. The company has come to Kurdistan to take part in the construction of various transport projects, including a tram system for Hawler and rail terminals in the cities of Hawler, Sulaymaniya and Dehuk.
Labels: Bumar, KRG, Kurdistan, Netherlands, oil refineries, Osman Shwani, Poland, rail links
