Friday Afternoon Iraq Economic News Highlights 9-1-23
Friday Afternoon Iraq Economic News Highlights 9-1-23
Economist: The Path Of Development Will Reduce Unemployment And Reduce Dependence On Oil As A Source Of Budget
Information / Baghdad..Hashem Al-Baydani, a researcher in economic affairs, confirmed, on Friday, that the unemployment rate will be significantly reduced in the event of proper planning for development path projects, pointing out that the revenues of this path can reduce dependence on oil as a source of financing the budget.
Al-Baydani told Al-Maalouma, "The aforementioned road can push the Ministry of Industry, as well as private sector companies, to invest large areas near this road to establish factories and laboratories, and open the door for investment in front of international companies to bring their factories to Iraq to reduce transportation costs."
He added that "constructing the road and opening projects on both sides of it can eliminate a large percentage of unemployment, since most factory owners want to export their products at reduced transportation costs, and this can be achieved by offering land near the road for investment or rent."
And he indicated that "the establishment of factories, laboratories and projects on both sides of the road needs thousands or millions of workers and specialists, and this is something that can be invested in the right way and open the door for giant companies to invest, provided that the labor force is Iraqi, and it is possible to reduce customs duties or grant permits to open factories and factories for foreign investors." With the aim of introducing new revenues to the country and reducing unemployment rates. LINK
This Is How The Government Stopped Oil Smuggling
Policy 01/09/2023 Number of readings: 147 Baghdad-Iraq today: A member of the Parliamentary Services Committee, Baqir Al-Saadi, confirmed that the government has adopted 4 measures to end the file of the black market for white oil.
Al-Saadi said in a press interview, “The black market for white oil is a phenomenon that emerges with the winter season and increases the financial burden on citizens because of the presence of those trying to exploit any cold waves to raise prices to reap more.” profits.”
He added, "The Sudanese government adopted 4 important measures to end the black market file in the white oil file early, the most prominent of which is the start of distribution two months before the winter season, accelerating the pace of its provision in stations, And pumping large quantities to the areas most in need, especially as it is characterized by cold weather in order to create sufficient storage to prevent the emergence of any crisis during 2024.
He pointed out that "the smuggling file, which was the most important factor in the black market, decreased by 90% among the governorates, and efforts are being made to uncover the networks involved in these crimes to bring them to justice." LINK
Iran Promises A "Major Event" For The Upcoming Visit Of The Sudanese To Khuzestan.. Is It Related To The Railway Connection?
Baghdad today – Baghdad Iran has promised a "major event" related to the upcoming visit of Prime Minister Muhammad Shia'a al-Sudani to Khuzestan Province.
Iranian media quoted the governor of Khuzestan, Ali Akbar Hosseini, as saying today, Thursday (August 31, 2023), that the province will host the Iraqi prime minister next week.
"It will be a big news event related to Khuzestan Province," he said.
Hosseini added, "More details about this visit will be announced soon."
An informed source revealed, on Tuesday evening (August 29, 2023), a close visit by Prime Minister Muhammad Shia al-Sudani to Basra Governorate, to lay the foundation stone for the railway link project with Iran.
The source told "Baghdad Today" that Al-Sudani "will pay a visit to Basra Governorate next Saturday (September 2) in order to lay the foundation stone for the railway extension project with Iran."
It is noteworthy that the Council of Ministers approved in its session last week regarding the Basra-Shalamja railway project, the following:
1- The Basra governorate obtains the approval of all concerned departments on the path proposed by it, and it is fixed in the basic design of the governorate, in a way that does not conflict with any future activity or projects.
2- Obtaining the fundamental approvals to allocate the land belonging to the state, through which the track passes, for the purposes of the Basra-Shalamcheh railway project.
3- The Basra Governorate removing all encroachments on the new railway track proposed by the Basra Governorate.
4 - The Ministry of Environment / Department of Mine Affairs to identify the areas contaminated with mines on the new route proposed by the province of Basra.
On December 27, 2021, Iraq and Iran signed an agreement to link the railway between the Shalamja border area with Basra Governorate, in a project aimed at transporting passengers and commercial activities. LINK
An Expert Summarizes 7 Observations On The Oil And Gas Law.. What About The Central Bank Governor?
Economy | Baghdad today – Baghdad Today, Friday (September 1, 2023), economist Nabil Al-Marsoumi made observations on the new version of the Oil and Gas Law, while noting that the new version is not much different from the previous two versions in 2007 and 2011.
Al-Marsawi stated in a post he posted on his personal account on the Facebook platform, which was followed by "Baghdad Today", that "the legislation of the oil and gas law was supposed to precede the establishment of the national oil company, and that the president of the company would be represented in the Federal Oil and Gas Council."
Al-Marsoumi asked sarcastically, "Is there no need to involve the governor of the Central Bank in the Federal Oil and Gas Council?", noting that "the Iraqi legislator seems to have invested in the Federal Court's decision in February 2022, which considered oil and gas activity in the region illegal, as well as the decision of the International Trade Court in Paris."
In March 2023, which prevented Kurdistan from using the Iraqi-Turkish line, which led to the cessation of the region’s oil exports, and this investment appears clear in the nature of the formation of the Federal Council that is dominated by the central authority and in the nature of the great powers enjoyed by the Federal Council for Oil and Gas in exchange for very limited powers for the region and the provinces non-regional producer.
And he continued, "There is a need for the law to include the principle of weighted voting in the Federal Oil and Gas Council according to certain criteria, such as having two or more votes for the governorate that produces more than one million barrels of equivalent per day."
And he continued, “Article 8 of the law states (the Federal Ministry of Oil shall manage the oil and gas-producing fields throughout Iraq in coordination with the producing region and governorates), and the explored and undeveloped fields, as well as the exploratory patches and how to manage them, were not addressed.”
Al-Marsoumi explained, “The law did not give any role to the region and the producing governorates that are not organized in a region in drawing up strategic policies related to the development of oil and gas, which contradicts Article 112 second of the Iraqi constitution, which states (the federal government and the governments of producing regions and governorates together draw up the necessary strategic policies.” To develop the wealth of oil and gas in a way that achieves the highest benefit for the Iraqi people, adopting the latest technologies, market principles and encouraging investment).
Al-Marsoumi concluded by saying, "The law did not include any article indicating how to deal with contractual obligations with foreign companies, especially the production-sharing contracts that it signed with Kurdistan 15 years ago, which are subject to mandated international arbitration in the event of breach of contractual obligations between foreign companies and the region. LINK
4 Billion Dollars Losses To Stop The Export Of Iraqi Kurdistan Oil
Posted On 2023-09-01 By Sotaliraq The Kurdistan Petroleum Industry Association said that the closure of the Iraqi oil export pipeline to Turkey's Mediterranean coast has cost producers and the Iraqi government about $4 billion in losses.
It is expected, according to the association, which includes a group of foreign and local companies working in the field of oil production, that the losses will continue despite the initial talks between the Iraqi and Turkish governments to solve the problem.
Producers in the northern region of Iraq have been forced to cut production since Turkey halted pipeline flows.
And an international arbitration court had ruled that Turkey should pay compensation to Iraq in the amount of $ 1.5 billion for unauthorized exports that left the region located in northern Iraq between 2014 and 2018.
The Kurdistan Petroleum Industry Association announced, on Thursday, that the member companies of the association will not resume work on producing and pumping oil from the region, even if the government reaches an agreement with the Turkish authorities.
The association said it "will not produce oil for export through pipelines until it is clear how international oil companies will be paid for their contractual entitlement to oil exported in the past and in the future."
The Association also called on the oil industries, the Kurdistan Regional Government of Iraq, to “provide guarantees that fully protect the rights of companies, including financial rights,” stressing that they were “significantly affected” by the Kurdistan Regional Government’s violation of the official agreements governing oil export and the resulting suspensions of export. It caused “billions” of damage to companies, according to its description.
It is noteworthy that the companies' threats coincide with continuous announcements from the Iraqi and Turkish governments hinting that they are close to signing an agreement that guarantees the export of oil from the Kurdistan region of Iraq through the port of Ceyhan without problems. LINK
A Specialist Makes 7 Remarks Related To The Oil And Gas Law And Points Out Several Negatives
2023-09-01 867 views Alsumaria News – Economy Economist Nabil Al-Marsoumi made today, Friday, seven preliminary observations about the third version of the oil and gas law for the year 2023, while pointing out several negative aspects related to the law.
Al-Marsoumi said in a post, followed by Alsumaria News, that "the new third version of the draft oil and gas law is not much different from the previous two versions in 2007 and 2011, and some observations can be made on the draft oil and gas law for the year 2023 as follows:
First: The legislation of the oil and gas law was supposed to precede the establishment of the national oil company , and that the president of the company should be represented in the Federal Oil and Gas Council .
Second: There is no need to involve the Governor of the Central Bank in the Federal Oil and Gas Council .
Third: It seems that the Iraqi legislator has taken advantage of the Federal Court’s decision in February 2022, which considered oil and gas activity in the region illegal, as well as the decision of the International Trade Court in Paris in March 2023, which prevented Kurdistan from using the Iraqi-Turkish line, which led to the cessation of the region’s oil exports.
This investment is evident in the nature of the formation of the Federal Council, which is dominated by the central authority, and in the nature of the great powers enjoyed by the Federal Council for Oil and Gas, in exchange for very limited powers for the region and the producing provinces that are not organized in a region.
Fourth: The need for the law to include the principle of weighted voting in the Federal Oil and Gas Council according to certain criteria, such as having two or more votes for the governorate that produces more than one million barrels of equivalent per day.
Fifth: Article 8 of the law states that (the Federal Ministry of Oil shall manage the oil and gas producing fields throughout Iraq in coordination with the producing region and governorates), and the explored and undeveloped fields, as well as the exploratory patches and how to manage them, were not addressed.
Sixth: The law did not give an important role to the region and the producing governorates that are not organized into a region in drawing up strategic policies related to the development of oil and gas, which is inconsistent with Article 112 second of the Iraqi constitution, which states (the federal government and the governments of the producing regions and governorates together draw up the necessary strategic policies for the development of oil wealth And gas in order to achieve the highest benefit for the Iraqi people, adopting the latest technologies, market principles and investment encouragement).
Seventh: The law did not include any article indicating how to deal with contractual obligations with foreign companies, especially the production-sharing contracts that it signed with Kurdistan 15 years ago, which are subject to mandated international arbitration in the event of breach of contractual obligations between foreign companies and the region. LINK