Iraqi News Wednesday Afternoon 2-16-22
Iraqi News Wednesday Afternoon 2-16-22
TLM724 Administrator BondLady’s Corner
Economist: Iraq Owns The Largest Gas Field In The Region And Is The Closest To Europe
Economic 2022/02/15 | 9:06 am Information / Baghdad...Economic expert Dr. Qusay Safwan explained that Iraq owns the largest gas field in the region in Anbar Governorate, pointing out that it is the closest to Europe to obtain gas from Iraq. Qusay told "The Information", "The world is moving towards investing in gas in order to reduce the demand for crude oil, and Iraq is one of the most prominent candidates for this file, and it may be one of the exporters if this wealth is optimally invested."
He added that "Iraq has a very large gas reserve that may put it in the eighth place in the world, in addition to the fact that the Ministry of Oil has projects to invest gas in Anbar Governorate, as it is the largest field in the region."
And he indicated that "the gas in Anbar and if it is invested, this region is the closest to the European Union, and it can have a promising future that will bring great financial returns to the country." finished 25
https://almaalomah.me/2022/02/15/582345/
Alia Nassif: The Federal Supreme Court's Decision Regarding Oil And Gas In The Region Is A Brave Decision That Restored The Right To Its Rightful Place
Posted On2022-02-16 By Sotaliraq Representative Alia Nassif described the decision of the Federal Supreme Court to abolish the oil and gas law for the Kurdistan region and to oblige the regional government to hand over oil revenues to Baghdad as a brave decision that restored the right to its rightful place, calling on the Ministry of Oil to follow up the implementation of this decision by the regional government.
And she said in a statement today: "We have always emphasized over and over again that the regional government disposes of Iraq's wealth as it wants, and the oil and gas revenues disappear without benefiting citizens, whether within the region or in the rest of the provinces, and anyone who dares and objects to corruption in the region's oil and gas file accuse him of chauvinistic and fighting Citizens in their livelihoods, while their livelihoods were looted by the mafias of corruption.”
Nassif indicated: "This brave decision will enable the Federal Ministry of Oil to put its hand on the region's oil file and review and audit all previous contracts, and therefore we call on the Ministry of Oil to follow up on the implementation of all legal procedures resulting from this historic decision, and God suffices the believers in the evil of fighting." LINK
Iraq..political obstacles to economic reforms after the recovery of oil prices
Posted On2022-02-16 By Sotaliraq Translation / Hamed Ahmed The Iraqi economist, Ahmed Al-Tabjali, indicated in a new report that global economic growth will continue to rise now and will move in a more moderate direction for the next stage 2022-2023, after the world realized how to deal with the new mutated, the Omicron virus, and this global economic growth will have a clear impact on Iraq's economic recovery for the next stage, taking into account the increasing demand for crude oil in the global market.
Al-Tabaqjali mentions that the revenues from oil sales in Iraq decreased during the year 2020 due to the restrictions of measures to limit the spread of the Corona virus from 6.1 billion dollars in January to 1.5 billion dollars only by April of that year before returning to recover gradually to reach 4.1 billion dollars In the month of December, the end of the year 2020. At that time, employee salaries and retirees’ salaries constituted 95% of the oil revenues, while only 18% of the budget was allocated to spending on other goods and services.
From mid-2020 through 2021, the government began introducing an economic recovery plan by injecting cash through internal borrowing, which increased by 22% by the end of 2020 and gradually decreased to 9% by October 2021. Also this year, oil sales increased from $4.8 billion in January 2021 to nearly $7.3 billion in December at the end of the year. At the time, the Iraqi government was able to cover all its important expenses after passing the 2021 budget in mid-April.
Regarding the developments in the non-oil economic sector, the available information indicates an increase in the recovery rate in this sector by 21% during the first half of 2021 compared to the same stage of the year 2020, at a time when current indicators estimate the continuation of this recovery, but at lower rates.
The economic growth forecast for Iraq in the short term indicates that the financial liquidity achieved in the Iraqi economy over the past two years will increase more during 2022-2023 due to the increasing demand for oil as a result of the global economic recovery and the recovery of global oil market prices. Forward selling contracts indicate that the ceiling of the price of a barrel of oil will continue to exceed the $70 barrier until 2024, and then gradually decline to reach $65 a barrel at the beginning of 2029.
Such high oil prices will provide the next government with ways to continue the current expansionary economic policy through the next year 2023, while also allowing it to increase the budget balance from the fiscal surplus. These economic stimulants will, as a result, improve the Iraqi budget in paying the expenses well for several years to come, which will result in an increase in the surplus of hard currency reserves, and this will enhance the trend of continuous economic growth for the country as long as oil prices remain high.
Political Obstacles
Despite all this, such an orientation towards annual budgets will deepen the structural imbalances of the country and make it more vulnerable to future economic shocks. The economic crisis that Iraq experienced in the year 2020 not only revealed the fragility of the Iraqi economy, but also revealed the advanced stages of the imbalance in the economic structure of the country. It was necessary to take drastic measures to avoid the collapse situation. It is the white paper for economic reform that every government must implement to reveal the causes of the imbalance in the economic structure that the country is experiencing due to the political system that the country adopted after 2003. Here lies the weakness in implementing the terms of the reform white paper or any other effort to implement an economic reform policy.
The influence of groups of political elites in the country on the parliament and government ministries is more than the influence of the government authority on them, and these elites strongly rejected and hindered the implementation of the reforms of the White Paper during the year 2021.
Oil Price Recovery
The economic expert, Tabaqjali, points out that the recovery of oil prices will discourage them from taking the necessary steps for economic reform. Noting that the next government will rely on the same compromise solutions adopted by previous governments from 2018 to 2021, which illustrate the failure to implement the reforms called for by the International Monetary Fund at the time, and the country was exposed to the economic shock of 2020.
The months that will follow the formation of the next government will be a test for it as to whether it will be able to implement the reforms listed in the white paper, or it will be a reform paper that will be forgotten if the economic crisis is overcome.
The problem in Iraq is that interest in economic reform is gaining momentum in the event of a drop in oil prices and an economic crisis, while implementing sustainable and meaningful reforms in such circumstances is difficult because the government will have to spend all its resources to avoid a short-term financial collapse.
The rush towards economic reform will fade immediately if oil prices recover, but the government must raise the rate of stability and flexibility of the budget towards passing reforms that will enable the country to withstand in times of crisis and withstand the inevitable expectations of fluctuations and decline in oil prices in the foreseeable future. LINK
Oil Prices Rise After Heavy Losses
Economie| 10:42 - 16/02/2022 Follow-up - Mawazine News: Oil prices rose, on Wednesday, after heavy losses incurred by black gold prices yesterday, and the decline in prices came with the easing of investor fears about an alleged Russian invasion of Ukraine.
By 09:30 Baghdad time, US West Texas Intermediate crude futures rose 0.31% to $92.36 a barrel.
Brent crude futures rose 0.17% to $93.44 a barrel, according to Bloomberg website data.
Oil markets incurred heavy losses on Tuesday, as Brent crude fell below $95 a barrel, while West Texas Intermediate crude fell below $94 a barrel.
Despite the sharp fluctuations in the oil market recently, oil prices are still trading near the highest level since October 2014, in light of expectations that demand will exceed oil supply this year.
https://www.mawazin.net/Details.aspx?jimare=184802
The Ministerial Council Assigns The Ministry Of Oil To Communicate With The Regional Government Regarding The Management Of Oil In Kurdistan
Political | 03:27 - 16/02/2022 Baghdad - Mawazine News, Prime Minister and Commander-in-Chief of the Armed Forces Mustafa Al-Kazemi chaired, on Wednesday, the meeting of the Ministerial Council for National Security, and the meeting discussed the latest developments in the security situation and developments in the Iraqi and regional arena.
The Council hosted the Minister of Oil to discuss the recent Federal Court decision on the management of oil in the Kurdistan region, in addition to a number of other issues on its agenda.
The Council decided to assign the Ministry of Oil to communicate and coordinate with the Kurdistan Regional Government and the companies and countries concerned, to prepare mechanisms and steps to manage this file in accordance with the provisions of the constitution and the supreme national interest.
The Ministerial Council for National Security authorized the Ministry of Oil to seek the assistance of consultants and experts from inside and outside Iraq in order to develop a technical and temporal road map in this regard.
The meeting discussed the continuous operations of our security forces to pursue outlaw gangs and activate arrest warrants that have not been done for a while, and the Council confirmed the provision of all means of support to the security forces to carry out their duties and enforce the law.
The Council also confirmed the follow-up to the directive issued by the Commander-in-Chief of the Armed Forces regarding monitoring the prices of food commodities, controlling price manipulators and people's food, and bringing them to justice in accordance with the law.
The Council agreed to approve the cybersecurity strategy 2020-2022, taking into account the observations mentioned at the meeting of the Ministerial Council for National Security. Ended 29 / h
https://www.mawazin.net/Details.aspx?jimare=184825
Oil: We Are Continuing To Implement The Agreement With Total
Wednesday 16 February 2022 223 Baghdad: Hussein Thaghb The Ministry of Oil denied the existence of a failure in the agreement with the global company Total, which was reported by international and local media, and that it is continuing to implement the agreement, which requires some time, and a specialized team continues periodic meetings to accomplish the tasks entrusted to them,
in the meantime, the official spokesman for the Ministry of Oil, Assem Jihad, called for concerted efforts All concerned parties to create a supportive environment for investments that serve the country, while the oil expert Hamza Al-Jawahiri stressed the need for agreements with international companies to be based on a purely commercial basis.
In a press statement followed by Al-Sabah, the Ministry of Oil confirmed its keenness to implement the contracts that were concluded within the agreement with Total, and denies news and press reports that indicated a stumble in the implementation of the agreement.
Sharing and Funding
The ministry’s statement indicated that this agreement includes (4) major contracts that include paragraphs and partial and complex obligations, which require some time to complete, and cannot be implemented or resolved in tight timings, including the paragraph of national oil participation at a rate of (40%) according to the decision of the Council of Ministers, which requires consensus between The two sides regarding the method and method of participation and financing, as it is now being negotiated in isolation from the preparations for receiving the contract, which has already begun with a specialized work team consisting of (9) specialists from each side, holding continuous meetings to accomplish the tasks assigned to them.
The statement indicated that the transition period of (6) months begins in early (April - April 2022) with the management of the Artawi field by the Basra Oil Company, and the financing from Total, after the required administrative structure has been prepared by the Basra Oil Company, while (Total) has An ambitious budget was prepared to start development work and increase production.
New technology
The official spokesman for the Ministry of Oil, Assem Jihad, confirmed that “Iraq after 2003 attracted the best international companies operating in the oil sector, and contracts were concluded with them to develop the oil industry, raise production capacities, train local expertise, as well as introduce modern technology, and the ministry is working today to provide a safe environment for work despite The health and economic challenges facing Iraq and the world.
He stressed that "sustaining communication with international companies requires the cooperation of all concerned parties, in order to provide an ideal investment environment, whether by the political classes and the concerned authorities in order to provide a safe environment," noting that "some statements issued by politicians targeting international companies and questioning their reputation." It is one of the factors that drive global companies.
On the impact of the withdrawal of international companies on production, Jihad said: "The withdrawal of international companies from some oil fields did not affect the production quantities," stressing that "the national effort was able to continue implementing the plans prepared for the flow of work and with the specified production capacities."
He cautioned that "investments in the oil sector and others need security and political stability and legislation that guarantees the rights of the investor and the country, as well as the need for an effective banking sector," pointing to "the need to have an investment culture to create the appropriate environment." to move the labor market.
Work Environment
The oil expert Hamza Al-Jawahiri said: “The country is in dire need to create an ideal work environment in the oil sector to attract the largest specialized international companies, and to work to keep investment companies away from all forms of bureaucracy and the attendant negatives that affect the atmosphere of negotiations with international companies. specialized".
He pointed out that "the agreement with Total is in its initial stages, and there are no accurate figures for the value of the projects, as the reality of the situation requires that the figures be well calculated by specialized competencies that benefit the country," noting that "the agreement to develop oil fields needs to announce its precise details. The investment is an inevitable necessity provided that it provides a great benefit to the country, especially since oil investments amounting to 27 billion dollars need to be studied in all its aspects to come up with agreements that serve the country.
Production Capabilities
Al-Jawahiri pointed out that "the exit of the major specialized international companies from some fields did not affect the production capabilities of the country or those fields, as the local competencies working with these companies gained great experience accumulated for years, which enabled them to manage the productive fields with the same efficiency, and this is one of the most important advantages that they created." International companies, as we have national expertise with global competencies in the most important sectors in the world country".
He stressed that any agreement in the oil sector must be on commercial bases that serve the country and achieve the highest levels of benefit for the country, and that the drafting of contracts on these bases and in a professional and honest formulation, stressing “the possibility of conducting bilateral agreements with major international oil companies on court and reasonable terms.” ". LINK
Iraq Needs To Diversify Its Economy
Wednesday 16 February 2022 258 Baghdad: the mainstay of the emirate Two specialists in economic affairs called for a serious movement to diversify the economy after the last stage witnessed the rise of voices calling for the revival of all sectors, astonished by the lack of seriousness in moving the production wheel of the country, in light of the availability of all the ingredients for success in Iraq, which is unique from other countries of the world with this feature that enables it to Achieve development within short periods.
Academic Dr. Abdul Karim Al-Issawi told Al-Sabah: “Iraq needs a serious move towards reviving its economy and starting a new phase that will advance the country, because Iraq is a rich country that does not wait for anyone’s kindness. Economic diversification contributes to attracting foreign and local direct investments, and here it is required that we work to provide the appropriate legislative environment that harmonizes with the country’s economic need.”
Protect The Economy
He added that "economic diversification works to protect the economy from external shocks, and this importance is particularly evident in the oil-producing countries, as oil prices are determined in global markets according to the mechanism of supply and demand, and the determination of the oil price is outside the will of the producing and exporting countries, and therefore prices are unstable up and down, This is what the global oil markets witnessed when oil prices fell in 2014 by 55 percent, which caused a shock to most of the economies of oil-producing and exporting countries.
Industrial Sector
He added that "economic diversification plans work to support the industrial sector, the main engine of the economy, for its pioneering role in influencing raising the level of production and finding new opportunities for investment, and for the purpose of advancing the reality of the national industry in order to take its role in supporting the economy, and the strategy of economic diversification adopts a set of solutions." And measures to develop the industry, including supporting local industrial products through activating the trade policy tools represented by trade protection tools.
And he demanded to oblige ministries and state institutions to purchase their needs of national industry products to encourage local industries, and develop skills and human and material capabilities through developing the skills and expertise of workers in the industrial sector, as Iraq has advanced national expertise.
Agricultural Sector
Al-Issawi pointed out that "the economic diversification strategy contributes to supporting the agricultural sector and achieving development and diversification, because the agricultural sector works to provide food security, and the development of this sector requires a set of policies and means to support and develop agriculture in the country, including following a flexible price policy, and this policy has a major role as it aims To support the prices of strategic agricultural products that enter as raw materials for some important industries such as the textile industry, sugar, vegetable oils and other industries canning".
Oil Prices
In a related context, the Dean of the College of Business Economics at Al-Nahrain University, Dr. Nagham Hussein, said: "The economic diversification policies work to confront fluctuations in oil prices, which in turn lead to fluctuations in the proceeds of oil exports, which affect the current spending rates in the state's general budget, and then its impact. At the level of gross domestic product, the policy of economic diversification works to develop economic integration between the different sectors, and this is done by strengthening the links between sectors. economic". LINK
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