Oil Transport Stopped as Iraq Did Not Pay Its Debt--Zaman Online, Turkey

[Gloria]

From the new World Media Watch up now at http://www.zianet.com/insightanalytical
Tomorrow at Buzzflash.com


3//Zaman Online, Turkey 01.23.2006 Monday - ISTANBUL 02:43
http://www.zaman.com/?bl=economy&alt=&trh=20060123&hn=28933



OIL TRANSPORT STOPPED AS IRAQ DID NOT PAY ITS DEBT

By Economy News Desk
Published: Sunday, January 22, 2006


Thirty-four Turkish companies, which export oil products to Iraq, stopped filling up the tankers in Mersin and Iskenderun harbors taking a common decision after their debts from Iraq increased $1 billion.



The authorities said the tankers, which had been filled previously, will be sent to Iraq; however, no new tankers will be filled until a new decision is taken. Turkish Minister of State Kursat Tuzmen said they have held studies for about two months in order not to reach the events up to this point, indicating he talked with Iraq Oil Minister and made all necessary efforts for this reason. Tuzmen said the companies declared they are determined to stop exportation to Iraq and said: “The companies continued their export until the end of the Sacrifice Festival (Eid al-Adha) in order not to leave them without oil after my personal request. However, the companies have finished filling processes in the filling stations beginning from today as there are no developments about the payments and their debts have exceeded $1 billion.”



(SNIP)



“We do not want Iraq to experience oil shortage,” said Kursat Tuzmen, and the $1 billion amount of risk has reached a quite high level. Under these circumstances nothing can be said to the companies about their decision. “It seems impossible for our companies to continue their export under these circumstances.” Tuzmen said the negotiations with the Iraqi sides continues and they expect Iraq to obey the international agreements between the two countries. “We hope the information that reached us about the payments will be implemented as soon as possible; if this happens, no problem will remain,” emphasizing he only solution at this level is paying the debt.

[Lasher]

1. What, one measly billion? That's chump change

Money for Nothing

Billions of dollars have disappeared, gone to bribe Iraqis and line contractors’ pockets.

The 15-month proconsulship of the CPA disbursed nearly $20 billion, two-thirds of it in cash, most of which came from the Development Fund for Iraq that had replaced the UN Oil for Food Program and from frozen and seized Iraqi assets. Most of the money was flown into Iraq on C-130s in huge plastic shrink-wrapped pallets holding 40 “cashpaks,” each cashpak having $1.6 million in $100 bills. Twelve billion dollars moved that way between May 2003 and June 2004, drawn from accounts administered by the New York Federal Reserve Bank. The $100 bills weighed an estimated 363 tons.

<snip>

Money also disappeared in truckloads and by helicopter. The CPA reportedly distributed funds to contractors in bags off the back of a truck. In one notorious incident in April 2004, $1.5 billion in cash that had just been delivered by three Blackhawk helicopters was handed over to a courier in Erbil, in the Kurdish region, never to be seen again. Afterwards, no one was able to recall the courier’s name or provide a good description of him.

http://www.amconmag.com/2005/2005_10_24/cover.html

[wordpix]

4. well we know where $1.5 billion of our $300 billion went: down black hole

in Iraq

[bemildred]

2. The irony of this.

Turkey is stopping the shipment of petroleum products to Iraq, because Iraq can't/won't pay for them. Whereas Iraq is one of the nations with large oil reserves, and Turkey is not. What is wrong with this picture?

[400Years]

3. no functioning refineries in Iraq I would guess.

[Dover]

5. Iraq increases exports of crude oil

Iraq increases exports of crude oil

By Agence France Presse (AFP)

Monday, January 23, 2006


BAGHDAD: Iraq has increased crude oil exports to about 1.75 million barrels per day (bpd) following resumption of pumping in the north of the country to the Turkish Ceyhan terminal, an oil official said Sunday. "The level of exports returned to its normal level in mid-January," Oil Ministry spokesman Assem Jihad told AFP.

"Exports from the north resumed January 16, with some 200,000 barrels a day and the goal is to double this in the coming months," he said. "Exports from the south vary from 1.55 million bpd to 1.65 million bpd."

In early January, Jihad said exports had dropped to 1.1 million bpd - their lowest level since the war - because of poor weather in the Gulf where tankers are loaded and attacks by insurgents against pipelines and other oil installations.

Jihad also said Baghdad would be paying its debts to Turkish oil companies which announced they had suspended deliveries of refined products because of mounting payment arrears.

Cont'd

http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=21619