Chapter: Dinar Revaluation
07-12-2013 IDD Expert Terrence: What is the tension between finance committee of Iraq and the central bank of Iraq related to revaluation the currency.
07-12-2013 Iraqi Dinar Expert IDI Basil: The finance committee of Iraq could not win the consent of central bank of Iraq for the revaluation of Iraqi dinar due to some economic concerns. We have not seen any official statement from the central bank of Iraq for revaluation process because central bank of Iraq is not in the favor of this process, especially the time of the revaluation of the currency.
07-12-2013 Iraqi Dinar Expert IDD Colin: Why central bank of Iraq is not convinced with the finance committee of Iraq for revaluation process?
07-12-2013 IDD Expert Terrence: There are many challenges before the central bank of Iraq to combat the situation and one the main thing is the timing for revaluation. The central bank of Iraq is not willing to revalue the currency in 2014 that announced finance committee of Iraq in its press release. There are many other issues like auction system of Iraq central bank, parallel market, and inflation due to shortage of dollar in the country.
07-12-2013 Iraqi Dinar ID Investor Eric: Why the action system of Iraq is the problem for central bank of Iraq as it is the method of controlling the value of currency in the country?
07-12-2013 Iraqi Dinar DG Guru: There is no doubt that auction system is the method of controlling the value of currency in the country and it is not a problem but auction system in Iraq has some kind of weaknesses that have become the headache for the central bank of Iraq while controlling the value of currency. Like fictitious participation of companies to buy the foreign currencies for their daily needs.
07-12-2013 Iraqi Dinar Expert IDI Basil: What does mean by fictitious participation b companies in the auction?
07-12-2013 Iraqi Dinar Expert IDD Colin: The central bank of Iraq let companies, financial institutions, and traders to buy dollars to meet their foreign transactions. Most of the companies buy these dollars more than their actual needs and sell them out in the parallel market of the country that is not under the direct control of central bank of Iraq and they further sell them in the other countries illegally.
07-12-2013 Iraqi Dinar Expert TD Edward: How harmful is the process for the economy of Iraq?
07-12-2013 Iraqi Dinar Expert T123 Justin Steave: The central bank of Iraq issues these dollars to maintain the supply of foreign currency in the country so that the value of the dinar would remain stable. The shortage of dollars in the country decrease the value of currency and the excess of supply of dollars over demand ensure the value of the local currency and enhance the trust of the people over the home currency of the country. The things are harmful for the currency of Iraq as well as the economy of Iraq.
07-12-2013 Iraqi Dinar Expert TD Edward: What are the measures that central bank of Iraq is taking to control this situation?
07-12-2013 Iraqi Dinar ID Investor Eric: The auction system is the basic reason of these problems and central bank of Iraq after realizing this issue decided to make participation more effective for the companies. The central bank of Iraq has issued the financial transfer license for those companies who are willing to participate in the auction in central bank of Iraq. The audit has become essential for participating companies so that central bank would be able to understand the exact need of company transactions while issuing dollars.
07-12-2013 Iraqi Dinar Expert TD Edward: Which is the specific parallel market that is affecting the auction system of central bank?
07-12-2013 Iraqi Dinar DG Guru: The local exchange market of foreign currency is the major problem for the central bank of Iraq. The money exchanger of the parallel market purchase dollars from the commercial banks and sell them in the nearby countries like Iran and Syria. This illegal transfer of the dollar creates shortage of foreign currency in the country that negatively impacts the economy of the country.
07-12-2013 Iraqi Dinar Expert T123 Justin Steave: Why these exchange dealers sell them out in the Iran and Syria?
07-12-2013 Iraqi Dinar Expert TD Edward: The Iran and Syria are under the international sanctions due to violation of international laws. Therefore, these countries are not allowed to buy dollars from international market for their foreign transactions. The dealers, traders and the financial institutions from these countries are big buyer of these dollars that are sold by these dealers in those countries. If Iraq would be able stop this illegal transfer of foreign currency, it will be able to stable the value of its currency.
07-12-2013 IDD Expert Terrence: What will be the impact of revaluation of the accounting and finance system of Iraq?
07-12-2013 Iraqi Dinar Expert IDI Basil: The deletion of three zeroes from currency of Iraq will impact the whole accounting and finance system of Iraq and the financial institutions will have to change their whole accounting software’s according to the value of currency. For example; they will have to use 1 instead of 1000 Iraqi dinars after revaluation of the currency. It will make accounting system easy but they will have to change the entire accounting system that needs time. Therefore the economists are of the view that Iraq need to take decision whether or not they are going to revalue the currency as soon as possible.
Chapter: Sindbad Oil Fields
06-12-2013 Iraqi Dinar Expert IDI Basil: What about the Sindbad oil fields of Iraq?
06-12-2013 Iraqi Dinar Expert IDD Colin: The Sindbad oil fields are located at the Iran Iraq southern border. The area is also considered as disputed between Iraq and Iran. The engineers and other company officials have to ensure their security for working over there. The oil field is divided in two blocks: Sindbad one and Sindbad two for the working point of view. These oil fields are located in the Shatt al Arab district of Iraq.
06-12-2013 Iraqi Dinar DG Guru: What were the activities of Brazilian Company Petrobras in Iraq?
06-12-2013 Iraqi Dinar Expert IDI Basil: The Brazilian Company Petrobras was given a contract by the Iraqi government to explore the crude oil in the Sindbad oil fields. Actually this was the company who discovered oil in the Sindbad region of the Shatt al Arab near the Iraq Iran border. Due to some managerial problems, the Petrobras could not work properly in the region and it had to stop its operation in the oil fields of Sindbad.
06-12-2013 IDD Expert Terrence: What is the quantity of the oil found in the Sindbad oil field in Iraq?
06-12-2013 Iraqi Dinar Expert T123 Justin Steave: According to Twilight News, the company found oil and gas at the depth of 4371 meters last month. The per day production of the oil at Sindbad oil fields is 6000 barrels, further the well has a huge collection of natural gas. Experts say that this oil discovery will enhance the oil production and export of Iraq and it will help Iraq to achieve its target of exporting 9 million barrels per day.
06-12-2013 IDD Expert Terrence: When will the obligations between Iraq and Kuwait be settled as the people are talking much about it?
06-12-2013 Iraqi Dinar ID Investor Eric: According to the foreign minister of Iraq, Iraq will settle all of its debts with the Kuwait by the end of 2015. Iraq is owned by Kuwait for 50 billion dollars that it needs to pay as a result of its regime in 1990. The amount has become the international obligation for Iraq. This amount is known as the compensation to Kuwait for missing persons and border compensation.
06-12-2013 Iraqi Dinar ID Investor Eric: Iraq was owned for $82 billion dollars by Kuwait and the figure you gave states about $50 billion dollars, what is the actual figure?
06-12-2013 IDD Expert Terrence: Yes, there is not any kind of doubt that Iraq had to pay $82 billion dollars to the Kuwait as a result of compensation but the chapter 6 made things easy for Iraq. The sanctions of chapter 7 have been lifted from the Iraq and now Iraq can settle its international issues by negotiations as per the conditions of chapter 6 of UNO. Iraq and Kuwait both are agreed to settle these obligations for $50 billion dollars.
06-12-2013 Iraqi Dinar ID Investor Eric: What is the purpose of Arab-African Summit in the economic development of Iraq?
06-12-2013 Iraqi Dinar Expert IDI Basil: The Arab-African Summit is going to hold in the next month of December for the development and the economic development of both regions. The African countries are looking for business and investment opportunities in the whole Arab countries and also in the Iraq. Iraq is looking for a good deal in the power sector of Iraq, according to the foreign minister of Iraq.
06-12-2013 Iraqi Dinar DG Guru: What are the interests of the Arab nation as a whole in the Arab-African Summit?
06-12-2013 Iraqi Dinar Expert IDD Colin: The main issue for Arab countries is the shortage of food and the lack of agricultural products. Africa is rich in the food items and the agricultural products in the region and world’s most famous companies are investing and operating in the agricultural sector. Hopefully the Arab countries will demand for the food related items from African countries in the return of oil or gas. It is a surprising fact that Israel is one of the biggest investors in the agricultural sector of Africa.
06-12-2013 Iraqi Dinar Expert T123 Justin Steave: What do you expect from the budget of Iraq for 2014?
06-12-2013 IDD Expert Terrence: The finance minister of Iraq stated in its press conference that Iraq’s deficit for the budget 2014 is higher than the deficit of 2013. The total deficit in the budget of Iraq is expected to 174 trillion Iraqi dinars. The deficit has been divided in the two sections: on for balancing operation and the second is for the investment and 115 and 64 trillion Iraqi dinar has been dedicated to these projects respectively.
06-12-2013 Iraqi Dinar Expert IDI Basil: What is the impact of parallel market to stabilize the Iraqi currency?
06-12-2013 Iraqi Dinar DG Guru: The parallel market always destabilizes the economy and also the exchange rate of the local currency for a country. Therefore Iraq is taking measures to reduce the impacts of parallel market on the economy and the currency of Iraq to stabilize it in the local and global market. The central bank of Iraq is taking steps to stabilize the currency by taking different steps.
06-12-2013 Iraqi Dinar Expert IDD Colin: What is the major measure to control the parallel market that CBI is taking in Iraq?
06-12-2013 Iraqi Dinar Expert TD Edward:The auction system of Iraq had numbers of technical issues that were raising the problems of parallel market in the country. Iraq is strengthening the rules and methods to take part in the auction. The issuance of financial transfer licenses is the major thing that CBI is taking to control the impact of parallel market.
Chapter: Mobile Companies in Iraq
05-12-2013 Iraqi Dinar Expert IDI Basil: Who won the Badra contract as had been so controversial last since last few months?
05-12-2013 Iraqi Dinar Expert IDD Colin: The contract of Badra was controversial for the last few months due to an equal interest of Russian and Chinese companies in the region and some of the Badra officials were in the favor of Russian and some were in the favor of Chinese company named Zhongman Petroleum and Natural Gas Group Co. Ltd (ZPEC) but the Zhongman Petroleum and Natural Gas Group Co. Ltd (ZPEC) won the contract for drilling and engineering.
05-12-2013 IDD Expert Terrence: What is the expected capacity of Badra oil wells in Iraq?
05-12-2013 Iraqi Dinar Expert IDI Basil: The two wells have been drilled in the Badra and two others will be drilled in 2014 and the expected production of the Badra wells is 170,000 barrels per day. The recent production of the oil is 60,000 barrels per day which is so satisfying production according to Iraqi natural resource ministry. It is also a good step for government to achieve the target of its five years economic policies.
05-12-2013 Iraqi Dinar DG Guru: What are the activities of SPETCO in Iraq?
05-12-2013 Iraqi Dinar Expert T123 Justin Steave: The Safwan Petroleum Technologies Company known as SPETCO is the Kuwait based company and operating in the Middle East in the oil related industry. Safwan Petroleum Technologies Company is to operate in the Saudi Arabia and finally wants to target the Iraq oil market as it is expanding its business activities in the Arab countries.
05-12-2013 Tampa Dinar Expert: What do you know about Korek mobile operator in Iraq?
05-12-2013 Iraqi Dinar Expert IDI Basil: The Korek is the subsidiary company of the Orange Telecommunication Company of France operating in Iraq. According to a business survey report, the Orange holds 20% of the total stake in the mobile industry of Iraq and it is a big participation. The CEO of the Orange Company stated that the company is looking high demand of its product in the country and expecting a bright future.
05-12-2013 Tampa Dinar Expert: How many customers Orange Company has in the Iraq at present?
05-12-2013 Iraqi Dinar Expert IDD Colin: According to the official statement by the CEO of the Orange Company, a number of active users of the Korek mobile operator company is more than five million it means that the Orange Company is making progress in Iraq by leaps and bound. The company is also looking for 3G license as a next target of the Orange Company. All of these facts indicate that the company is booming in Iraq.
05-12-2013 Tampa Dinar Expert: What are the future objectives of the Orange Company in the region?
05-12-2013 IDD Expert Terrence: The Orange Company has never shared its future objectives for the region of Iraq and they are also not willing to share them with the others, according to CEO of Orange Company. There were only two million customers for mobile industry in the region and now only Korek has five million customers in Iraq that shows its business potential. The company is expecting to expand its business activities to multiply its revenues.
05-12-2013 Tampa Dinar Expert: How do you see the future of mobile companies in Iraq?
05-12-2013 Iraqi Dinar Expert T123 Justin Steave: As far as my opinion is concerned about the future of mobile companies in Iraq, it is so bright. The analyst’s data says that from 33 million population of Iraq only 2% of the population using broadband or any other source of internet. The 78% people of Iraq are using mobile phones and their number will increase in the near future and the companies have a golden chance to invest and earn from this opportunity.
05-12-2013 Iraqi Dinar Expert IDD Colin: What about the recent deal between Lebanon and Kurdistan regional government?
05-12-2013 Iraqi Dinar DG Guru: It is good business news for Kurdistan and also for Iraq that Lebanon will invest $3 billion in the field of tourism, banking, construction and many others of their interest for the return of 10 percent. According to Iraq business news, more than 90% companies of Lebanon are operating in the country therefore the government of Lebanon is also interested in investing in the Kurdistan.
05-12-2013 Iraqi Dinar Expert IDI Basil: What is the key area of interest of the Lebanon companies in Kurdistan region?
05-12-2013 IDD Expert Terrence: The key areas of interests for Lebanon companies in the region are the tourism sector and also the oil and gas industry of Iraq. This is because the Kurdistan is declared a center of tourism for next year according to Arab Tourism Counsel. Therefore most of the companies of the world are looking to invest in the construction of hotels, parks and other tourism related industry. Kurdistan is expecting more than 3 million tourists in 2014.
05-12-2013 Tampa Dinar Expert: How many dates are exported in the different countries of the world by Iraq every year?
05-12-2013 Iraqi Dinar Expert T123 Justin Steave: Before Iran Iraq war, Iraq was one of the biggest exporters of dates in the world. Most of the buyers of Iraq date were Asian countries and the export figure was 500,000 tons per year. Iraq exported 17000 tons of dates to the different countries of the world till the date. However the export is continuing but a export figure has been decreased badly after the Iran Iraq war due to destruction of date fields.
Chapter Oil Production
04-12-2013 Iraqi Dinar Expert T123 Justin Steave: What is per day oil production of oil in Iraqi Kurdistan?
04-12-2013 IDD Expert Terrence: The recent figures presented by the minister of natural resources are 250,000 barrels per day. Kurdistan regional government is exporting 250,000 barrels per day to its nearby countries and locals. Kurdistan is aiming to enhance its oil export to one million barrels per day by the end of 2015. For this purpose different contracts are being signed by the Kurdistan with the different global oil companies.
04-12-2013 Iraqi Dinar Expert IDD Colin: What are the major environmental issues that are arising from the oil and gas industry of Kurdistan?
04-12-2013 Iraqi Dinar Expert IDI Basil: According to the recent report of environmental protection department of Kurdistan regional government, the oil and gas industry of Kurdistan is causing environmental pollution by polluting the air with smoke, destroying the roads of common traffic and by increasing the noise pollution in the region. The large numbers of accidents have also been reported due to heavy traffic in the residential areas.
04-12-2013 Iraqi Dinar ID Investor Eric: What are the measures that Kurdistan government can take to resolve these issues and to promote its export also?
04-12-2013 Iraqi Dinar Expert IDI Basil: The Kurdistan can combat the present situation by taking few rational steps and it can also promote its export in the local and international market. It should construct new roads and for heavy traffic only and should build its factories and industry outside the residential areas to avoid such pollution. In this way the citizens can avoid the toxic gases in the region.
04-12-2013 IDD Expert Terrence: How much oil is transported on the local roads of Kurdistan, on a daily basis?
04-12-2013 Iraqi Dinar Expert IDD Colin: According to ministry or transport and the ministry of natural resources of Kurdistan, 1055 truck transport the crude oil from one side of the country to the other. Each truck carries forty five thousand liter oil. Therefore the roads of the country are destroying with every passing day and the ministry of transport is facing issues regarding this and the government is taking measures to control this issue by constructing new roads in the region.
04-12-2013 Iraqi Dinar ID Investor Eric: What about the recent meeting of finance minister of Iraq with the World Bank?
04-12-2013 Iraqi Dinar DG Guru: The recent meeting of finance minister of Iraq Ali Yousaf with the World Bank remained so productive. The World Bank is supporting Iraq in the reconstruction of its banking structure. The purpose of the meeting was to promote the two banks of Iraq by enhancing their capital. This finance will be used to rebuild the country’s infrastructure, roads, dams, homes and schools etc.
04-12-2013 Iraqi Dinar Expert T123 Justin Steave: Did Iraq achieve its rice target of 2013 and 2014?
04-12-2013 Iraqi Dinar DG Guru: The ministry of agriculture of Iraq had a decent target of the rice for 2013 and 2014. This is the first time in the history that Iraq is paying a keen attention towards its agricultural sector. The target was to plant 106000 hectares of rice in the following year but the target is not completely achieved by Iraq. The Iraq could plant only 80,000 hectares of rice in the year 2013 which is less than the actual target of the government.
04-12-2013 Tampa Dinar Expert: How much rice Iraq imports from the other countries of the world to meet the domestic demand?
04-12-2013 Iraqi Dinar ID Investor Eric: Iraq produces 180,000 tons of the rice every year and it has to import 1.4 million tons of rice for the need of its country. Iraq will want to be self-sufficient in the near future in the production of its agricultural products especially rice and wheat. USAID is playing a major role to achieve this goal of self-sufficiency in the agricultural products. USAID has started many projects with the local Iraqi farmers to boost up the agricultural products.
04-12-2013 Tampa Dinar Expert: Did Iraq make any progress in its future target of self-sufficiency?
04-12-2013 Iraqi Dinar Expert IDI Basil: Iraq is working hard to achieve its targets as the price of production is better than the production of last years in Iraq. The production of wealth of Iraq for the year 2013 has reached up to 3.2 million tons that is also more than the production of last production years of Iraq. Iraq will have to enhance its wheat production by 3.2 million tons to meet its target of self-sufficiency in the food.
04-12-2013 Iraqi Dinar ID Investor Eric: What are the main strategies that Iraq will have to apply to develop the agricultural sector?
04-12-2013 Tampa Dinar Expert: With the cooperation of UNESCO, USAID and many other international agencies, Iraq is designing its agricultural strategies to develop this sector on emergency grounds. The government of Iraq along with the global agencies is focused on the two major things that include workforce and the investment climate in this sector.
04-12-2013 Iraqi Dinar Expert T123 Justin Steave: What is the role of UNESCO in the development of agriculture of Iraq?
04-12-2013 Iraqi Dinar DG Guru: The ministry of agriculture of Iraq has given responsibility to UNESCO to find and present the findings about agricultural sector of Iraq, in order to develop it. UNESCO is responsible to present the things to the global companies who are interested in the agricultural sector of Iraq and it also handles all the issue regarding investment in the agricultural sector.
Chapter Iraq Petroleum
03-12-2013 Iraqi Dinar ID Investor Eric: Did Iraq receive the shipment of Russian Helicopters?
03-12-2013 Iraqi Dinar Expert IDI Basil: Iraq and Russia signed a deal for Russian helicopters to combat the terrorism and to strengthen the security situation of the country by empowering the law enforcement agencies with the Russia fighter helicopters. Iraq has paid $4.3 billion dollars for these most advanced helicopters of the Russian army. These helicopters are known as Mi-35 and Mi-28NE.
03-12-2013 Iraqi Dinar ID Investor Eric: What are the special offers made in India by Iraq for the promotion of oil export?
03-12-2013 Iraqi Dinar DG Guru: Iraq is offering special offers for the promotion of oil export to the different countries of the world. Iraq has made a special offer to the Indian buyers for the promotion of the oil and gas industry in the country. This special offer includes the longer credit period for Indian buyers if they will purchase the oil in the 2014 as a new contract with Iraq. Iraq has extended the period of credit to the 60 days for Indian buyer companies.
03-12-2013 Iraqi Dinar Expert T123 Justin Steave: Which company is dealing with Iraq according to this offer made by Iraq?
03-12-2013 Iraqi Dinar Expert IDI Basil: The HPCL is the Indian company that is dealing with the state oil marketing organization of Iraq. According to the new contract with Iraq the Indian oil company will purchase 100,000 barrels oil per day from the Basra oil terminal. This is not signed officially by the both of the companies. All of these information’s are based on media reports. Hopefully, this contract will be signed at the end of this month.
03-12-2013 IDD Expert Terrence: What are the major characteristics of the contract between Iraq and Indian Oil Corporation?
03-12-2013 Iraqi Dinar ID Investor Eric: Indian Oil Corporation is one of the biggest oil refineries of the India and one of the biggest customers of the Iraq oil industry. India imports the largest part of its oil imports from Iraq. The Indian oil corporation is importing 284000 barrels oil per day from Iraq and it is planning to enhance its import from 284000 barrels per day to 300,000 barrels per day by 2014.
03-12-2013 Iraqi Dinar Expert IDD Colin: Is that India importing Iraq crude oil from day one?
03-12-2013 IDD Expert Terrence: India was importing crude oil from Iran and it was one of the biggest consumer and importer of crude oil from Iran. Due to United Nations sanction on Iran according to chapter 7 of the UN charter, it was difficult to import oil from Iran. Therefore new contracts are being signed by the Indian and Iraqi oil companies to import oil from Iraq and Iraq is also offering some especial offers to the India to confirm these contracts.
03-12-2013 Iraqi Dinar ID Investor Eric: What about the Schneider’s activities in Iraq?
03-12-2013 Iraqi Dinar Expert IDD Colin: Schneider is the French company that deals with power and energy. Schneider is one of the famous companies of the world for its best services in the power industry. Therefore it has won the contract of 64MW plant to be built in Dhi Qar of Iraq province. Iraq is facing a worse electricity condition in the country and more than 40% Iraqi are unable to get electricity in the country. Therefore this deal will be beneficial for the development of the country.
03-12-2013 Iraqi Dinar Expert T123 Justin Steave: What’s the deal between Iraq government and Shell Petroleum Company?
03-12-2013 Iraqi Dinar DG Guru: The Shell Petrochemical Company and the government of Iraq are going to sign two business deals in Iraq. According to the first contract, the shell will provide petrochemical assistant to the Iraq in its southern area of Iraq. The total cost of this first contract is estimated to eleven billion dollars. The second contract with the same nature has the total estimated cost of $17.2 billion dollars.
03-12-2013 Iraqi Dinar Expert IDI Basil: Is the contract between Iraq and Shell has been signed or not?
03-12-2013 Iraqi Dinar Expert IDD Colin: The contract is not officially signed by both of the companies but it is in the negotiation phase but the terms have been cleared between Iraq government and Shell Petroleum Company. For this purpose the meeting between Prime Minister Noor Al Maliki and the chief executive officer of the Shell petroleum Company was held in the Baghdad last week to officially sign the contract. The company will start working by the end of this year.
03-12-2013 IDD Expert Terrence: I think this contract was signed with the Oryx petroleum last year, is that not so?
03-12-2013 Iraqi Dinar Expert T123 Justin Steave: No, it is not perfect information as the Oryx Petroleum Company has given the specific area of Hawler for the development. The company has the working interest of 65% in the Hawler. Numbers of petrochemical companies are working in the country and different companies are operating in the different areas of the country in the different areas. Both of these companies have different tasks.
03-12-2013 Iraqi Dinar Expert IDI Basil: What are the production tasks of the Oryx petroleum Company in Hawler?
03-12-2013 Iraqi Dinar DG Guru: The present production of crude oil of the Oryx Petroleum Company from Hauler is 9000 billion barrels per day. The company is expecting to increase its production from 40,000 till 2014 and it will aim to reach its production by 100,000 barrels per day by 2015.This project is the part of five year economic plan for 2017.
Chapter Project by Iraq
02-12-2013 IDD Expert Terrence: How much Big Oil will be spent to develop southern oil fields of Iraq next year?
02-12-2013 Iraqi Dinar DG Guru: Iraq is making serious efforts to develop the oil fields in the region. For this purpose, numbers of companies are working in Iraq with commitment and devotion. The efforts of Big Oil are the part of this project. According to oil and gas ministry, the Big Oil is going to spend more than $25 billion to develop the southern oil fields of Iraq and after this the production will be doubled in these oil fields.
02-12-2013 Iraqi Dinar Expert IDD Colin: What will be the expected output of the southern oil fields after this investment?
02-12-2013 Iraqi Dinar ID Investor Eric: The recent output by these southern fields is about three million barrels per year. The expected growth in these fields after this investment will enhance up to 500,000 barrels per day and it will be a handsome output from these oil fields. The major problem for the company is the security threats of terrorism because these oil fields are in the most sensitive area of Iraq where terrorism is at high.
02-12-2013 Iraqi Dinar ID Investor Eric: What about the new housing project by Iraq?
02-12-2013 Iraqi Dinar Expert TD Edward: After the approval of parliament, the ministry of housing and construction of Iraq has announced to rebuild more than 2500 houses for the people who were affected by terrorism. This project will be completed in the next year according to the ministry of housing and construction. The estimated total cost of this project will be $181 million dollars.
02-12-2013 Tampa Dinar Expert: What is mean by religious business in Iraq?
02-12-2013 Iraqi Dinar DG Guru: According to some experts, in the Iraq the religion has become a powerful business. Due to the holy places of Muslim communities, the prices of land in the Karbala have reached almost to the sky. Therefore the real estate business in Iraq has become more profitable than any other kind of business. Transportation is another profitable business in Iraq especially in Baghdad and Karbala. Looking all these facts, numbers of investors are looking for business opportunities in these fields.
02-12-2013 IDD Expert Terrence: What about “strategic project” for Basra?
02-12-2013 Iraqi Dinar ID Investor Eric: Strategic project is the name of construction project started by the construction and housing ministry in the province of Basra. According to this project 1200 schools will be constructed in the province of Basra with all the essential needs of schools. The employment and literacy rate is falling badly in the Iraq; therefore the government is taking keen interest in the education development and especially in technical education development.
02-12-2013 Iraqi Dinar DG Guru: What is the nature of the reconstruction contract between Iraq and USAID?
02-12-2013 Iraqi Dinar ID Investor Eric: Everything in the Iraq is to rebuild after the vast destruction in the Gulf War and after that due to the Iraq invasion by the United States of America. The government of Iraq launched a project of rehabilitation in Iraq with the cooperation of USAID. The estimated cost of this project is 150 billion US dollars. Along with this large project, numbers of small and medium size projects are under completion that is participating in the development of the country.
02-12-2013 Tampa Dinar Expert: How much amount was allocated for the reconstruction in the budget of Iraq?
02-12-2013 Iraqi Dinar DG Guru: With the cooperation with a number of international companies and nonprofit organizations, Iraq is struggling for development. The Iraqi government is so sincere and serious to rebuild the country therefore a handsome amount of $15 billion dollars was allocated for infrastructure of the country. The project with USAID is the part of this allocation though it is not enough to satisfy as the demand of this project.
02-12-2013 Iraqi Dinar Expert TD Edward: What is the purpose of the International Exhibition of Electricity of Iraq?
02-12-2013 Iraqi Dinar ID Investor Eric: This kind of exhibitions in Iraq attracts the worldwide companies to invest in the energy and power sectors in Iraq and provides better business opportunities to the investors. Iraq is facing a worse energy crisis in the country and almost 40% people are unable to get electricity in the country therefore Iraq is looking for investment in the energy and power sector to fulfill the deficiency of electricity in the country.
02-12-2013 Iraqi Dinar Expert TD Edward: It seems that Real Estate and Investment Iraq 2013 has the same motto like International Exhibition of Electricity?
02-12-2013 IDD Expert Terrence: Iraq has become an attractive but costly residential area of the world for the Muslim community because of its high rates of real estates. According to the real estate’s point of view, Iraq is one of the attractive and profitable countries for investors. The most attractive place for real estate investment is the Baghdad and Karbala. The real estate and investment Iraq provides the best business opportunities in the real estate business of Iraq.
02-12-2013 Iraqi Dinar DG Guru: Is there any investment opportunity available in the water and sewage of Iraq?
02-12-2013 IDD Expert Terrence: Iraq is facing shortage of water for its household and commercial uses. The agriculture industry is facing difficulties due to shortage of water especially for cash crops and for their fishing industry. There are numerous business opportunities available in the country because there are some regions in Iraq where drinking water is not available. Iraq has started a new project on the water and sewage with the estimated cost of 1.5 billion dollars.
Chapter Oil Field in Iraq
29-11-2013 IDD Expert Terrence: What is the dispute between Iraq and Kurdistan with the concern of BP Company?
29-11-2013 Tampa Dinar Expert: Iraq signed a deal with BP Oil Company to develop the Kirkuk oil fields at the border of Kurdistan regional government without the concern of Kurdistan. Therefore Kurdistan is not allowing BP to work on the project without settling the threads of the region. For this purpose, the Iraq oil minister and the director of BP visited the governor of Kirkuk to settle the things and the governor has given a satisfactory answer in the response of this meeting.
29-11-2013 Iraqi Dinar Expert IDD Colin: What can be a role of governor to settle this matter when the minister of oil is facing difficulties to resolve this matter for BP Oil Company?
29-11-2013 Iraqi Dinar ID Investor Eric: The governors of all the provinces of Iraq have been given special powers to sign a contract between Iraq and any other country of the world to increase the investment opportunities in the country. Therefore the positive response from governor can change the game for BP Oil Company and the matter will be resolved between Iraq and Kurdistan. Hopefully, the negotiation among governors, Iraq oil minister and BP Company will work.
29-11-2013 Iraqi Dinar DG Guru: Why the governor is authorized to sign any contract for without the concern of any other government machinery?
29-11-2013 Iraqi Dinar Expert TD Edward: Due to tight rules for foreigners to invest in the country the international investors were hesitating to invest in the country, therefore governor was given special powers to sign any contract of oil and gas that he considers as beneficial for the growth of the country. After this positive step on the part of government, numbers of international companies showed interest in the Iraq and invested in the oil and gas industry of Iraq.
29-11-2013 Iraqi Dinar Expert IDD Colin: What are the activities of Marathon in Mirawa to find the oil in the region?
29-11-2013 Iraqi Dinar ID Investor Eric: It’s very big and happy news for the oil and gas ministry of Iraq that Marathon has found a new oil well at Mirawa fields. The well was drilled by fifty eight hundred feet when the Marathon found oil in the well. The total depth of the well is 14000 feet and the oil and gas found at the depth of 5800 feet. The company is looking to confirm the quality and quantity of the oil found in the well.
29-11-2013 Iraqi Dinar DG Guru: What about the Jisik 1 well in the Kurdistan as it is pending for a number of years?
29-11-2013 Tampa Dinar Expert: The Jisik 1 is the well in the same region where Mirwana 1 well funded by Marathon. We know it is pending for a number of years and Marathon is looking for it after completing the drilling process of Mirawa 1. The Marathon holds 45% of the total drilling project of the of the region and Kurdistan also hold the 20% of the total project and due to the stack of the other 35 % of this project was delayed for a number of years.
29-11-2013 Iraqi Dinar Expert T123 Justin Steave: Does that location of Iraq can attract the foreign investors to invest in the country?
29-11-2013 Iraqi Dinar Expert IDD Colin: Of course the location of Iraq has always been attractive for investors to invest in the country. The business community always remained interested in the Middle East and Arabian Gulf for their investment and for long term business projects and Iraq is the gateway to both of these locations in the region. Therefore Iraq has its own significant importance for investment purpose.
29-11-2013 IDD Expert Terrence: What are the key sectors of Iraq where an investor can invest?
29-11-2013 Iraqi Dinar Expert T123 Justin Steave: There are a number of opportunities available in the different sectors of Iraq. If you are interested in Iraq then you can invest in oil and gas industry, construction industry, communication and especially in those things that Iraq has to import from other countries of the world to fulfill the needs of its people. Iraq is also short of gas and it has to import it from Iran to run its power stations so it is also a good option for you to invest in.
29-11-2013 Iraqi Dinar Expert IDI Basil: What are the facilities available for foreign investors from the government of Iraq?
29-11-2013 Iraqi Dinar Expert TD Edward: The government of Iraq is facilitating the investors by all means. Iraq is providing ten year tax exemption period for the foreign investors who are ready to invest in the country. There are also some special zones where forty year tax exemption period is granted by the government of Iraq. The hurdles between government and the companies have been resolved by giving special rights to the governors of the provinces to sign a contract.
29-11-2013 Iraqi Dinar Expert IDI Basil: What about the security situation of the country which is the biggest concern before multinational companies?
29-11-2013 Iraqi Dinar ID Investor Eric: Iraq is paying special focus on the security situation of the country and empowering its law enforcement agencies with the latest weapons of counter terrorism. It also provides the security to the officials of international companies and also the proper guarantee. The security situation is not bad like the previous years. There are few areas which are affected by the terrorism that’s why the investment by international companies is increasing with the every passing day in Iraq.
Chapter Oil Fields
26-11-2013 IDD Expert Terrence: Which is the biggest oil filed in Iraq?
26-11-2013 Iraqi Dinar Expert IDD Colin: A Rumaila field is the biggest oil field of Iraq. Rumaila oil fields were discovered in 1953 with the capacity of 1.3 million barrels per day. It has 17 billion barrels recoverable oil capacity. The second biggest oil field of Iraq is the Kirkuk oil fields with the capacity of .480 million barrels per day. The Kirkuk is under development and production will be enhanced in the near future.
26-11-2013 Iraqi Dinar Expert TD Edward: What about Al-Fakkah oil fields of Iraq?
26-11-2013 Tampa Dinar Expert: The Jebal Al Fauqi or the Al Fakkah fields are located in the border area of Iraq and Iran. The area is considered to be one of the most disputed areas between Iraq and Iran. Therefore both of the countries share this oil field which has the total oil reserves of 2.5 billion barrels. Iraq produces 50,000 barrels from this field per day. This oil field is on bidding between Iraq and Iran.
26-11-2013 Iraqi Dinar ID Investor Eric: Which oil field is discovered most recently in Iraq?
26-11-2013 Tampa Dinar Expert: The most recently discovered oil field in Iraq is the Atrush field which is discovered in Kurdistan region of Iraq. The oil field is discovered by General Exploration Partners in March 2013. The oil field is located in Dohuk which is the famous city of the Kurdistan region. The oil field is divided into different wells known as Atrush 1 well, Atrush 2 well, Atrush 3 well and Atrush future wells. Kurdistan regional government is receiving a 25 % share as a part of its contract.
26-11-2013 Iraqi Dinar DG Guru: What are the significant of these wells of Atrush oil field of Kurdistan?
26-11-2013 Iraqi Dinar Expert TD Edward: The Atrush oil 1 has a capacity of 6393 barrels oil per day. General Exploration Partners hold the 80% of the wells with the partnership of Aspect Energy International. However the Aspect Energy International sold its share to TAQA international. The Atrush 2 has the capacity of 42212 barrels per day which is the biggest production in the Kurdistan region. Atrush 3 is going to search till the end of the following month for a final report.
26-11-2013 IDD Expert Terrence: What about your opinion about AZ Zubair Fields known as one of the biggest oil field of the world?
26-11-2013 Tampa Dinar Expert: Yes AZ Zubair is one of the largest oil fields of the world with the 4.5 billion barrels reserves. The per day production at AZ Zubair oil fields is 1.125 million barrels per day which is biggest in Iraq by any of the oil fields in the region. The government of Iraq has the contract with the Consortium Company for the production and development of oil fields.
26-11-2013 Iraqi Dinar ID Investor Eric: Which is the oldest oil field of Iraq?
26-11-2013 Iraqi Dinar Expert IDD Colin: Baba Gurgur is one of the oldest oil fields of the Iraq and hopefully the first one. It was also one of the biggest oil fields on the earth before the discovery of the Ghawar Field of Saudi Arabia. This oil field was discovered in 1927. Baba Gurgur is famous for its eternal fire and also add to the tourism industry of Iraq because who visit Iraq for tourism never misses this place.
26-11-2013 Iraqi Dinar Expert IDI Basil: Why East Baghdad Field have oil reserves more than any other oil field in Iraq?
26-11-2013 Iraqi Dinar DG Guru: No doubt that East Baghdad fields have oil reserves than any other oil field in Iraq but you must understand that East Baghdad is not a single oil field; it is the group of oil fields and consists of many oil fields. The East Baghdad fields have more than 8 billion barrels approved oil reserves. Per day production of oil is 400,000 barrels per day. The discovery of this oil field was made in 1976.
26-11-2013 Iraqi Dinar Expert TD Edward: What about Halfaya field of Iraq?
26-11-2013 Iraqi Dinar Expert IDI Basil: With the proven reserves of 4.1 billion barrels, the Halfaya field is located in Amarah Iraq. Per day production of oil is 300,000 barrels per day. The contract is signed with the China National Petroleum Corporation. The oil field is also in the development phase and the China National Petroleum Corporation is looking modern techniques to improve the production of oil.
26-11-2013 Iraqi Dinar ID Investor Eric: Which oil field was discovered by the Turkish Petroleum Company in Iraq?
26-11-2013 IDD Expert Terrence: Kirkuk oil fields are those oil fields which were discovered by the Turkish Oil Company in 1927. The oil fields are found near Kirkuk. The oil field has ten billion proven oil reserves. The production of the oil at the Kirkuk is one million barrels per day even after passing seven decades. According to some of the oil experts, the Kirkuk oil reserves has been badly affected by the poor management of the Saddam Administration.
26-11-2013 Iraqi Dinar DG Guru: What kind of mismanagement of Saddam administration about Kirkuk?
26-11-2013 Iraqi Dinar Expert IDD Colin: Due to the poor management by the Iraqi administration at the time period of Saddam, the Kirkuk oil fields became unproductive. The methods of production like fuel oil re-injection made it more expensive. This issue further created a major problem of gas striping and refinery residue and it is considered as a major mismanagement in the oil industry of the world.
Chapter Karbala and Kurdistan
23-11-2013 Iraqi Dinar DG Guru: Why the property rates are increasing in the Karbala Iraq?
23-11-2013 Iraqi Dinar Expert IDD Colin: Instead of Baghdad the capital of Iraq, the property rates are increasing so fast in Karbala. Karbala is considered to be a holy city not only for Iraq but also for the Muslim world due to a number of Holy personalities of Islam is buried in the city. The devotees of Islam and the lovers of these personalities are willing to purchase properties at every cost that seller demands. Therefore the rates are increasing in the Karbala.
23-11-2013 Iraqi Dinar Expert TD Edward: What is the per square meter price of property in Karbala and other cities of Iraq?
23-11-2013 Tampa Dinar Expert: The square meter price of property in the Baghdad is 2000 to 2500 dollars. The price is increasing in the Karbala so fast and you will have to pay 4000 to 4500 dollars per square meter land in Karbala. This property rate is almost equal to the capital city of Japan Tokyo. Hopefully the rates will further increase in the near future due to expansion of shrines in Karbala.
23-11-2013 Iraqi Dinar Expert IDI Basil: What is the tension between the Turkish Energy Ministry and the Kurdistan regional government?
23-11-2013 IDD Expert Terrence: The tension between the Turkish Energy Ministry and Kurdistan regional government is rising due to the time frame for completion of the pipeline project. The Kurdistan regional government wants to complete this project within a year which is not possible for the Turkish Energy Ministry. According to Turkish Energy Ministry, two years are required to complete this project.
23-11-2013 Iraqi Dinar Expert TD Edward: What about the Hayatt Branded business plans in Kurdistan?
23-11-2013 Iraqi Dinar Expert IDI Basil: The Hayatt branded Hotel Corporation with the cooperation of the Claremont Group LLC is going to design a five star hotel in the Kurdistan regional government. The project will be finalized by 2017. The Claremont Group LLC has given the responsibility of managing the hotel project. According to a report, it will be the first project of Hyatt Hotels Corporation in the region.
23-11-2013 Iraqi Dinar Expert IDI Basil: Why Hyatt Hotel Corporation selected Kurdistan for its next five star hotel project?
23-11-2013 Iraqi Dinar Expert IDD Colin: The Kurdistan region has been declared as one of the best tourist places in the year 2014 and afterward. Most of the tourists and hotel companies are moving towards this region for their long term business projects. Hopefully Kurdistan will host more than three million tourists in the region after 2014. This number will increase in the near future, and the future of the region is bright according to the tourism point of view.
23-11-2013 IDD Expert Terrence: What will be the description of the hotel?
23-11-2013 Iraqi Dinar ID Investor Eric: The hotel will provide more than two hundred rooms for guests that will be named as guestroom and meeting room and space of events which is almost 18000 square feet. The hotel will also provide pools, treatment rooms, parks and gardens as well. The facilities of shopping mall and golf course will also be provided by the Hyatt Hotel Corporation.
23-11-2013 Tampa Dinar Expert: What do you know about Iraq investment and reconstruction task force?
23-11-2013 Iraqi Dinar DG Guru: Iraq investment and reconstruction task force is the place where foreign investors and traders take information about any project or about any business opportunity in Iraq. Most of the multi-national companies consult with Iraq investment and reconstruction task force for their business project. That’s the reason; if you are an investor so consult with Iraq investment and reconstruction task force for your better future in Iraq.
23-11-2013 Iraqi Dinar ID Investor Eric: What is the role of “Select USA 2013 investment summit” in the development of business in Iraq?
23-11-2013 Tampa Dinar Expert: “Select USA 2013 investment summit” is the place for the direct investment in the USA. Like Iraq investment and reconstruction task force, the basic purpose of the Select USA 2013 investment summit is to drive investors towards America but US citizens are allowed the same rights of investment that Iraqi citizen has in the country. Therefore the citizen of US can play a role in the development of business in Iraq.
23-11-2013 IDD Expert Terrence: What are the basic motives of the 40th Baghdad international fair?
23-11-2013 Iraqi Dinar Expert TD Edward: The 40th Baghdad international fair is a place that motivates and suggests the foreign investors to invest in the different projects in Iraq, especially to the investors from the United States of America. This is because of the 40th Baghdad international fair that most of the investors in Iraq are belong to the United States of America. These investors are investing in those areas which have been neglected by the government of Iraq for a number of years.
23-11-2013 Iraqi Dinar Expert IDD Colin: What do you know about the Iraq Energy and Conference?
23-11-2013 Tampa Dinar Expert: The Iraq Energy and Conference is working under the Iraq Ministry of oil and gas and it is the only Energy conference working under the government of Iraq. This conference holds on more than eighty companies of different countries of the world. The Iraq Energy and Conference attracts and invite the different companies of the world to invest in the country in the oil and gas sector of Iraq.