Saturday Afternoon Iraq Economic News Highlights 8-5-23
Saturday Afternoon Iraq Economic News Highlights 8-5-23
Why Was The Oil And Gas Law Not Legislated Earlier? An Expert Explains
Economy |Today Baghdad today - Baghdad Today, Saturday (August 5, 2023), economist Nabil Al-Marsoumi explained the reasons for not enacting the oil and gas law previously, while pointing to five points that impede its approval.
Political Differences
Al-Marsoumi said in a post followed by "Baghdad Today": "Although two versions of the draft oil and gas law were issued, one in 2007 and the other in 2011, no oil and gas law has been legislated in Iraq due to the great difference between the political forces on many issues."
He pointed out that "the most prominent of these differences is giving the region the authority to license in the field of exploration and development of discovered undeveloped fields," noting that "this is contrary to the jurisdiction of the National Oil Company, which leads to a conflict between the jurisdiction of the region and the National Oil Company and the jurisdiction of the Ministry of Oil."
He added, "This discrepancy would prevent the existence of a unified system for contracts in the different regions of Iraq, and giving the regions the right to conclude licensing contracts prevents the implementation of a federal policy for oil and gas, and there will be two oil policies, one in the center and the other in the region."
Article (112 First)
And Al-Marsoumi indicated that "there is a major disagreement in the interpretation of Article (112/First) of the constitution, which requires the central authority to manage the oil and gas extracted from the current fields in coordination with the regions. Developed as well as exploration blocks, and this understanding leads to the interpretation of the regions that he will take over the management of oil and gas.
He continued by saying: "Giving the validity of licenses for oil operations for exploration and production contracts in the center and the regions after presenting the initial contract to the Federal Council, leads to duplication in oil policy and affects the economic policy of Iraq due to the potential difference of visions between the Federal Council and the Ministry of Oil."
Negotiating Side
He pointed out that "giving an important aspect of the negotiating role of the Federal Oil and Gas Council and its tasks to the Kurdistan region and the irregular oil-producing cities in a region may weaken the negotiating role of Iraq and exacerbate the risks surrounding the implementation of a unified strategy in the country."
And he stressed that "in the event of the loss of a unified central policy, competition and disagreement will prevail between the National Oil Company and between the regions and governorates, which will lead to disagreement instead of cooperation that guarantees the unity of the people and the country, while the constitution gave the task of managing oil and gas wealth to the federal government in partnership with the regions and governorates."
Government Movement
And on (August 2, 2023), the Prime Minister, Muhammad Shia Al-Sudani, held a meeting dedicated to discussing the draft federal oil and gas law, in preparation for its approval by the Council and its submission to Parliament.
The media office of the Prime Minister stated, in a statement received by "Baghdad Today," that "the meeting witnessed a review of the latest drafts of the draft law, its details and provisions, and what the technical and legal committees have worked on, and work to mature the final draft of the law, in preparation for its approval in the Council of Ministers, and submitting it to the House of Representatives." to legislate it, according to the legal and constitutional contexts. LINK
Does The Government Have Pressure Papers To Pass The Oil And Gas Law? An Economist Answers
The economist, Nabil Al-Ali, saw that the Iraqi government has many pressure cards to pass the oil and gas law, while he considered the current time “very appropriate” to pass it under the dome of parliament.
Al-Ali said, in a press interview seen by Taqaddam, that “the Prime Minister, Muhammad Shia’ al-Sudani, has reactivated dialogues and understandings again between the political forces after discussing the oil and gas law.”
He added, “The current time is very appropriate for the central government, in order to write the law and present it to Parliament; Because of the appropriate conditions and pressure papers that the government enjoys, ensuring that it passes it with central visions.
The economist explained, “The oil and gas law is a political commitment signed by the parties to the State Administration coalition prior to the formation of the government, and it is considered a governmental commitment and it is important to pass it.”
And Al-Ali indicated that “passing the oil and gas law inside the dome of parliament set a ceiling for it during the first 6 months of the government’s life.” https://takadum-news.com/archives/177092
Disclosure Of Negotiations With The US Federal Reserve To Solve The Dollar Crisis In The Iraqi Market
Policy 05/08/2023, Number of readings: 195 Baghdad-Iraq today: A member of the Parliamentary Finance Committee, Thamer Dhiban Al-Hamdani, confirmed that there is negotiation with the Federal Bank to solve and address the dollar crisis.
Al-Hamdani said in a press statement, “The truth is that there were no sanctions against Iraq, and there were no sanctions on these banks, and these banks are operating at the present time, but they were denied the acquisition of dollars from the Central Bank. He added, "There is negotiation with the Federal Bank to solve this problem, and it is the central bank's duty to address errors and address them before taking these measures from the Federal Bank."He pointed out, "We call on all companies, merchants, and contractors to review the central bank center, to acquire the dollar and enter the platform, since the platform is the protector of money and not to smuggle the currency out of Iraq." LINK
The Federal Decision Is A Road Map For {Oil And Gas Law
The first 2023/08/05 Baghdad: Huda Al-Azzawi Law experts and observers of political affairs saw that the decision of the Federal Supreme Court issued in February of last year 2022 regarding oil and gas in the Kurdistan region of Iraq drew a road map to regulate the relationship between the federal government and the region in the field of extracting, producing and exporting petroleum wealth, and that this decision It could lead - if it is agreed to implement it - to the ripening of an integrated oil and gas law that has been delayed for more than 16 years.
And the legal expert, Muhammad Majeed Rasan Al-Saadi, stated in an interview with "Al-Sabah" that "the oil and gas law has been suspended since 2007 because there was no agreement and agreement on the terms of the previous draft law."
He added, "The Federal Supreme Court's decision on 2/15/2022, which included the ruling on the unconstitutionality of (the oil and gas law of the Kurdistan Regional Government) No. (22) of 2007 and its cancellation for violating the provisions of 6 articles in the Iraqi constitution, obligated the region's government to hand over all oil production from the oil fields."
In the Kurdistan region and other regions to the federal government represented by the Federal Ministry of Oil and to enable it to use its constitutional powers regarding oil exploration, extraction and export.
He pointed out that "the decision is clear, and the Ministry of Oil has the right to pursue the invalidity of oil contracts concluded by the regional government with external parties (states and companies) regarding oil exploration, extraction, export and sale, in addition to obligating the regional government to enable the Iraqi Ministry of Oil and the Federal Financial Supervision Bureau to review the oil contracts concluded."
With the regional government regarding the export and sale of oil and gas for the purpose of auditing and determining the financial rights owed by the regional government.
He added, "The Federal Court's decision to draw a road map for legislation (oil and gas law) that regulates the relationship between the federal government and the region and the rest of the provinces producing and exporting oil and gas," stressing that "the opportunity is ripe today to conclude an agreement between the center and the region, especially since this parliamentary session is devoid of bargaining."
To obtain partisan or factional gains in return for voting on important national legislation, as in previous parliamentary sessions,” according to the legal expert.
Al-Saadi said, "The regional government is now beginning to feel the size of its will against the will of the federal government," noting that "the struggle of the region with successive central governments is a biased conflict on the basis of nationalism, so the failure of the national political project has caused the failure of the regional government's management economically, socially and politically,
so We believe that there is a real will on the part of the federal government, led by Prime Minister Muhammad Shia'a al-Sudani, to end this file," noting that "the credit goes to the hammer of the Iraqi judiciary and the hammer of the President of the Federal Supreme Court, which woke up the dreamers and made them submit to the will of reason and logic," he said.
As for the head of the “East Center for Strategic Studies and Information,” Ali Mahdi Al-Araji, he explained in an interview with “Al-Sabah” that “the federal government is trying, like its predecessors, to find a final and realistic solution that serves all parties in the center and the region, as the political forces have not agreed since 2005 until today on a specific approach.” Fixed oil and gas.
Al-Araji expressed his pessimism about "enacting a law that serves reality and the Iraqi street," adding, "I am not inclined to the dark side, but I stand on the facts of the stage. For his own good."
He added, "The federal government can work on issuing wonderful legal texts that end the crisis and weaken the joints of dispute with the region if the working paper it will issue is applied to the legislative authority, but at the same time, and based on a reading of the political reality, I believe that the determined efforts will remain in place." on the shelf next to the previous ones.
Edited by: Muhammad Al-Ansari https://alsabaah.iq/81726-.html
Why Was The Oil And Gas Law Not Legislated In Iraq Previously?.. Political Differences 18 Years Ago
Policy 2023-08-05 Source: Alsumaria News 969 views Alsumaria News – Politics Political disagreements over the issue of managing the oil fields of the Kurdistan region of Iraq prevented a vote on the oil and gas law, despite its economic importance, which has been awaiting legislation in parliament since 2005, which stipulates that the responsibility for managing the oil fields in the country should be entrusted With a national oil company, supervised by Baghdad.
The law was introduced many times during the previous parliamentary sessions and was not included in the parliamentary laws and legislations.
Economist Nabil Al-Marsoumi said in a post followed by Alsumaria news , "Although two versions of the draft oil and gas law were issued, one in 2007 and the other in 2011, no oil and gas law has been legalized in Iraq because of the great difference between the political forces on many issues, including:
First: The dispute over giving the region licensing authority in the field of exploration and development of discovered undeveloped fields. This is contrary to the competence of the National Oil Company , which leads to a conflict between the competence of the region, the National Oil Company and the competence of the Ministry of Oil .
This discrepancy would prevent the existence of a unified system of contracts in the different regions of Iraq. Giving the regions the right to conclude licensing contracts prevents the implementation of a federal oil and gas policy. There will be two oil policies, one in the center and the other in the region.
Second: There is a major disagreement in the interpretation of Article (112/First) of the Constitution, which requires that the central authority manage the oil and gas extracted from the current fields in coordination with the regions. Exploration patches and this understanding leads to the interpretation of the regions that they will take over the management of oil and gas.
Third: Giving the authority to license oil operations for exploration and production contracts in the center and regions after presenting the initial contract to the Federal Council. This leads to duplication in the oil policy and affects the economic policy Iraq due to the potential difference of visions between the Federal Council and the Ministry of Oil.
Fourth: Granting an important aspect of the negotiating role Federal Oil and Gas Council and its tasks to the Kurdistan region and the oil-producing cities that are not organized in a region may weaken the negotiating role of Iraq and exacerbate the risks surrounding the implementation of a unified strategy in the country.
Fifth: When a unified central policy is lost, competition and disagreement will prevail between the two National Oil Company And between the regions and governorates, which will lead to disagreement instead of cooperation that guarantees the unity of the people and the country.
While the constitution granted the task of managing oil and gas wealth to the federal government in partnership with the regions and governorates.
On February 15 of last year 2022, the Federal Supreme Court issued a ruling that the oil and gas law of the regional government of 2007, which regulates the oil industry and its extraction in the region, was unconstitutional. This ruling came after the regional government concluded contracts with foreign oil companies. Provincial government refusedKurdistanFederal Court decision, relinquishing control over oil exports.
The oil and gas law legislation - which has been suspended since 2005 - would regulate and support the oil sector, by regulating investments in the oil and mineral aspects, especially with regard to managing the part of the region.Kurdistan. LINK
Parliamentary Finance Committee: The Budget Will Be Implemented During The Current Week
Iraq 10:47 - 2023-08-05 Today, Saturday, the Parliamentary Finance Committee confirmed that the federal budget law will enter into force during the current week, pointing out that the budget instructions will be circulated to all ministries.
Committee member Thamer Dhiban Al-Hamdani said in a press statement, "The general federal budget for the first time is sent to the State Shura Council in order to scrutinize its items," pointing out that "the budget will be implemented during the current week."
He added, "The budget instructions will be circulated to all ministries, agencies and governorates, and the government will proceed to achieve its items according to a service and economic vision."
He pointed out that "the regulatory authorities will start monitoring the mechanism for disbursing funds and projects according to a plan that had been prepared in advance to avoid wasting money."