http://www.iht.com/articles/ap/2007/09/02/business/ME-GEN-Dubai-Iraq-Energy.php

September 2, 2007
Lack of legal framework keeps oil investors out of Iraq

DUBAI, United Arab Emirates: Iraqi government officials and energy experts presented detailed plans for exploiting the wartorn country's vast petroleum wealth but admitted that the absence of a law regulating the industry is a bigger obstacle than security to attracting foreign investment.

Government officials at the three-day "Iraq Oil, Gas, Petrochemicals and Electricity Summit" held in Dubai tempered their grandiose projects for exploiting the country's massive oil reserves by admitting that the vital, but contentious, law still needed to be passed.

"Security is not stopping investors coming to Iraq, (it is because) they have no laws to protect their investment," Ali al-Dabbagh, the Iraqi government spokesman, told the Associated Press at the start of the conference.

After months of acrimonious debate, a new draft oil law will be discussed in parliament in the coming weeks, which al-Dabbagh hoped would be adopted by the end of the month.

"The majority of politicians are aware that we cannot go on without it," he said. "The oil law is the future of Iraq."

Despite being some of the largest in the world, Iraq's oil reserves are also some of the least exploited with the worst infrastructure something Iraq is hoping foreign investors can change.

Talks have been held with Shell, Texaco and Dow Chemical companies on possible investments in various proposed projects, said Fawzi al-Hariri, Iraq's Minister of Industry and Minerals. He said the Saudi Basic Industries Corporation has also expressed interest.

Al-Hariri hoped that the negotiations would be concluded by the end of the year.

He described a plan for a US$120 million (87.56 million) upgrade of a Basra petrochemical plant, that could be developed further with another US$1 billion (0.75 billion).

"We are also considering a second, completely new facility, maybe in the north or central region," he told Dow Jones Newswires at the conference, putting the cost at over US$2 billion (1.5 billion).

He said that the plant's final location would depend on the security situation.

Even more than new projects, however, it is the country's creaking oil infrastructure that has to be fixed, preferably with foreign investment, said Thamir Ghadban, chairman of Iraq Oil Commission.

Several times over the last three decades, complete overhauls were planned only to be shelved as the country was wracked by devastating wars and then U.N. sanctions.

"We think Iraq needs to bring up the oil production, but it also needs to go into oil exploration," Ghadban said, adding that the government plans to "convert 25 to 30 percent of probable reserves into proven reserves. "

If it succeeds, Iraq could raise production to 6 million of barrels of oil a day, up from an average of around 2 million barrels.

"Four million with national efforts and additional two million in cooperation with foreign oil companies," Ghadban said.

The country's former oil minister, Ibrahim Bahr al-Olom, called for additional domestic involvement in the sector as well, stressing the need for a "balance between national and foreign investment."

"Iraqis deserve a better standard of living," al-Olom said. "The only way they will get it, is by developing oil and gas resources."

the market is now trying to determine the implications of the British withdrawal from Basra ....... i am sure that at best it will herald a new wave of massive violence in iraq ...... does this move also bring even closer the spectre of all-out civil war?

Cynic,have previously read a quote by David Horgan saying better if forces not in Iraq.I will try and dig quote from the archives.PET working quite happily,no trouble where PET is South border with Iran.

Shorters have moved in and some stops have been triggered this morning.Well done those calling sp down.I do not have stop loss on PET.Holding.aimvho.

Peetle - 3 Sep'07 - 09:40 - 97407 of 97419


I'm still holding. Well done to anyone who took their profits on Friday, but I know that if I had I'd now be wondering about getting back in again.

How long before we see stories like this, though involving PET and Block 6, Halfaya, etc ? I'll post the effects on the Addax Share price if anyone's interested (it'll not be until after 2pm though)

DUBAI, Sept 2 (Reuters) - Addax Petroleum and Genel Enerji expect to submit a $1 billion development plan within weeks to Iraq's Kurdish region for their joint venture TTopco's Taq Taq oilfield, a TTopco executive said Sunday.
Output from the field could hit 200,000 barrels per day (bpd) by 2010, Les Blair, General Manager of TTopco, told Reuters.
"The production plateau is up to 200,000 bpd," Blair said. "In the coming weeks we'll submit the field development plan. Investment would be approximately $1 billion."
The plan will go to Iraq's semi-autonomous Kurdish Regional Government (KRG) for approval. The blueprint requires access to an export route for the oil as output would exceed local demand, Blair said.
In May 2006, Swiss-based Addax and Turkey's Genel Enerji signed a 25-year production sharing agreement (PSA) with the KRG for Taq Taq.
The oilfield is 60 kms north of the giant Kirkuk oilfield in Iraq, which has been plagued by a brutal insurgency since a U.S.-led invasion in March 2003.
But the Kurdish region has been relatively stable and the government -- hungry for development -- has encouraged operators such as TTopco to begin work.
The KRG plans to boost output to one million bpd in about five years from just a few thousand bpd now. It has inked five PSAs and has said it has more deals ready to sign.
The region had put new deals on hold while it waited for Baghdad to pass a controversial new federal oil law which stipulates who controls the world's third largest oil reserves and how revenue is distributed.
Washington has pushed Iraq for months to speed up its passage and that of other legislation, which it sees as pivotal to reconciling warring Iraqis, rebuilding Iraq's shattered economy and attracting foreign investment.
After months of waiting for Baghdad, the KRG passed its own oil law in August.
The KRG says the PSAs that it has already signed were in line with the constitution and the new oil law. The KRG and Baghdad have clashed over the contracts, and the KRG has said it will review them to ensure their harmony with new laws.
The passing of the oil law was also expected to herald an agreement on export routes for crude from the Kurdish region.
The central government has yet to give the nod to Norwegian operator DNO to hook its oil output from the Tawke field in the Kurdish region into Iraq's main export pipeline to Turkey.
DNO has already built a link from the Tawke field to the export pipeline. Output from Tawke is limited while DNO awaits permission to export, and the company has been delivering crude to local markets in trucks.
ENDS

lex ..... any chance you could summarise your posts? ...... i'm afarid i have so few grey cells left that it would exhaust them if i tried to read all the stuff you post, fascinating thought it may be!

Cynic,precis is in opening sentence! lol

How long before we see stories like this, though involving PET and Block 6, Halfaya, etc ? I'll post the effects on the Addax Share price if anyone's interested (it'll not be until after 2pm though)

We won't, because PET does not do business with regional authorities, PET has always worked closely with The Ministry of Oil in Baghdad, the reason being it greatly simplifies operations and minimises risk.
2517

2517GEORGE,Point being made involves PET being awarded & signign contracts and Block 6, Halfaya, etc PET have been very astute and have avoided getting involved in politics.

Eh?
2517

With relative calm in the sp as I write, albeit 11.59% down, it is time for people thinking of investing in PET to decide, have the fundamentals changed? The withdrawal of the army in Basra appears to have affected the sp this morning, and after it's terrific rise over recent weeks an ideal excuse for profit taking, but did we think the army would stay forever? The Iraqi Government must be left to run their country as they wish. Yes cynic may well be right in his 'i am sure that at best it will herald a new wave of massive violence in iraq' but I am sure the army will not wash it's hands completely if it were seen the Iraqis' in Basra were not coping. The situation with the HCL is unchanged as is the prospects for contracts, and the oil is still there waiting to be tapped. All imo of course.
2517

that's quite a brave statement young George and Lex is being very naive if he thinks that PET "have avoided getting involved in politics" ...... oil IS political, and any company connected with it will inevitably be involved ..... it follows that all is most definitely NOT plain sailing, though that does not mean that all will not come out well - eventually

Don't panic, Tony Blair said the world is a much safer place without Saddam. Unless you live in parts of Liverpool , Manchester and London ect: and you don't stay out after 11pm in most city centres on a friday night. Sorry went a bit off topic there.

5,000 soldiers re-locate to the airfield in basra..and wait to see 'when' the bad boys start to mark their turfs out..if it gets to voilent they will appear again..we have the best fighting force on the planet..so s.p. shaken today and MM's make some cash..contracts still need to be addressed by government..no change on that issue..good to see debate still healthy here

watcher

Nearly time for me to go back in as now below my previous exit price. Not sure Bush's visit helps at this stage especially if he wants to give Iran a bloody nose? Brits looking to get out asap reminds me of Aden in 1967.

PET is nose-diving because the Brits are getting out of Iraq...not good news for PET.

result of several things, including the "too far too fast" syndrome

well i did say it looks like a spike...

I think all the troops getting out Uk & US will not be as bad as same people think.

Cynic,it had to happen sometime! lol

Shares analysis Trader/shorter v Long term Investor

Banking 14,987.50 net theorectically buy back 12,252 shares @ 120p closing price.

If you had continued holding 14,987.50 fallen to 12,087.50.

Net profit of 6,188 now worth 3,288.


lex1000 - 01 Sep 2007 17:40 - 109

Your fantasy portfolio.You did not want to buy @ 87p,however,expressed opinion is to sell.

Buy 10k @ 87p cost 8799.50 gross

Sell 10k @ 150p 14,987.50 net.

Net profit 6,188.00

My opinion is continue to hold fantasy buy 10k @ 87p cost 8799.50 gross.Compare notes at a later date.

http://www.thecwcgroup.com/UserFiles/Con_File/Iraq%20Petroleum%202007%20Brochure(3).pdf

http://www.thecwcgroup.com/conf_detail_home.asp?FP=1&CID=178

Iraq Petroleum 2007

8 September 2007 to 10 September 2007
Dubai, UAE
International Investment in the Iraqi Oil Industry



Key note addresses will be given by:

H.E. Dr. Barham Salih, The Iraqi Deputy Prime Minister and
H.E. Dr. Hussain Al-Shahristani, The Iraqi Minister Of Oil

Ministry Delegation:


H.E. Dr. Sinan Al Shabibi, Governor, CENTRAL BANK OF IRAQ
Abdul Ilah Qassim AlAmir, Advisor office of the Prime Minister, Iraq
Representative of H.E. The Minister of Planning
Dathar Al Khashab, Director General, DURA REFINERY
Dr. Mussab AlDujayli, Head of Crude Oil Marketing, SOMO, MINISTRY OF OIL
Natik K. Al- Bayati, D.G, Reservoir & Oil Fields Development Department, MINISTRY OF OIL
Basim Mustafa Ismail, Head of Planning Commission, Oil Exploration Company, MINISTRY OF OIL
Falah Al-Khawaja, Director General, SCOP, MINISTRY OF OIL
Nidhal Ismail, Senior Chief Engineer, Reservoir & Oil Fields Development, MINISTRY OF OIL


Expert Speakers Include:

J. Jay Park, Partner & Chair, International Energy Practice Group, MACLEOD DIXON LLP
Dr. Pedro Van Meurs, VAN MEURS ASSOCIATION
Tariq Shafiq, President, PETROLOG ASSOCIATES
Dr. Herman Franssen, President, INTERNATIONAL ENERGY ASSOCIATES
Leslie Blair, General Manager, Taq Taq Operating Company (TTOPCOL), ADDAX PETROLEUM
Peter Nicol, Executive Managing Director, Institutional Research, TRISTONE CAPITAL
James A. Grimshaw, Director, GARDA WORLD
Steve Peacock, President, Exploration and Production, Middle East & South Asia, BP

Topics will Include:

The proposed Oil and Gas Law and the new measures
The new development strategy
The Iraqi oil industry and foreign investment
Long term objectives
Present oil production capacity and fast track solutions
The new structure of the Iraqi oil industry
Creating a stable environment for growth
The role of the international oil companies in the development of the Iraqi oil industry

The conference will provide a unique opportunity for the international investment community to raise questions on the proposed oil and gas law and the new Iraqi Oil policy. Structured to maximise dialogue between Iraqi decision makers and their international counterparts, this conference will explore the risks and the problems as well as the opportunities facing the Iraqi oil industry.


POST-CONFERENCE WORKSHOP
Understanding the Emerging Petroleum Legal Regime in Iraq
10 September 2007

Workshop Leader:
J. Jay Park, Partner & Chair, International Energy Practice Group, Macleod Dixon LLP

Click here for further information regarding the workshop


For further information regarding the event please contact
Joanne Leonard, tel: +44 20 79780075