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Somo.. Iraq’s Oil Reserves Are Enough For 80 Years

Wednesday, August 17, 2022 at 17:17 pm (140 views)   Sky Press  The director of the National Oil Marketing Company (SOMO), revealed that Iraq’s reserves are sufficient for 80 years and we export to 3 global markets.

Iraq’s oil reserves are the fifth in the world and constitute (8.7%) of the world’s reserves and 17% of the reserves of the Middle East.

He added that the proven oil reserves in Iraq, according to the statistical report of the Organization (OPEC) for the years (2016-2020), (148.4) billion barrels, and according to OPEC estimates for the year 2021, they amounted to (145.019) billion barrels.

Also, Iraq exports its oil to three global markets (Asian, European and American), and the most prominent and demanded is the Asian, as we export to it by more than 70%.

https://www.skypressiq.net/2022/8/17/سومو-احتياطي-نفط-العراق-يكفي-ل-80-سنة

Expert: Corruption Prevents Iraq From Benefiting From Its Vast Oil Reserves And Resources

Last update August 17, 2022   The Independent / A senior international economic expert monitored, on Wednesday, a number of reasons, including “corruption” that prevent Iraq from benefiting from huge resources and huge oil reserves, noting that

these capabilities “if exploited” make it go a long way in mitigating international economic damage.

Iraq has an estimated 145 billion barrels of proven crude oil reserves, and the country plans to increase crude oil production to 8 million barrels per day, up from about 4 million barrels at present.

Increased Iraqi production could add a significant amount of oil to a market hungry for this product,

but a report written by Simon Watkins, a former major forex trader and economic journalist and author, for Oil Price said

there were a number of factors, including corruption issues, and weak civil society. Insecurity and lack of resources prevented Iraq from implementing its oil exploration and production strategies.

And the report quoted Hamid Younis, the first vice president of the Iraqi National Oil Company, as saying last week that the country plans to increase crude oil production to 8 million barrels per day.

He also quoted the Director-General of the Iraqi Oil Exploration Company, Ali Jassim, as saying that the next phase will witness “notable activity” in the exploration sector, including operations in the Western Desert and Nineveh Governorate.

Given the current delicate balance between supply and demand in the global oil pricing matrix,

a large new supply would go some way to mitigating the economic damage to many countries by enduring higher oil and gas prices, if the ambitions are “realistic,” according to Watkins. .

Iraq owns about 18 percent of the total reserves of the Middle East, and about 9 percent of the world’s reserves, and is the fifth largest in the world.

However, according to the International Energy Agency (IEA) in its 2012 report on the country, the extent of Iraq’s viable oil resources For eventual extraction it is subject to a great degree of “uncertainty”.

The writer says that the reserves may be much larger, as the 2012 International Energy Agency analysis put the level of ultimately recoverable crude oil liquids and natural gas resources in Iraq at about 232 billion barrels,

but as of the end of 2011, only 35 billion barrels had been produced. Of that number, compared to 23 percent for the Middle East as a whole, according to the International Energy Agency.

However, it is one thing to have huge levels of reserves and recoverable resources, but to dig and export them is quite another.

During the period from the release of the IEA report in 2012 until now, crude oil production in Iraq has risen from just over 3 million barrels per day to just over 4 million barrels per day. y

In absolute terms, Watkins says, this increase ranks as a very poor return for Iraq’s crude oil resources, especially when considering how easy it is to extract its oil.

Crude oil in the country has the lowest extraction cost in the world of 1-2 dollars per barrel,

equal to the extraction costs of crude oil for Saudi Arabia and Iran.

Also, the current production rates are much lower than the Iraqi national plans and international expectations, which indicated that Iraq would reach 9 million barrels per day by 2020, or at least 6 million barrels per day.

In 2012, the International Energy Agency expected that Iraq’s oil production would rise to 9 million barrels per day in 2020 and then rise to 10.5 million barrels per day in 2035.

Why is production delayed?

The writer says that the basis for Iraq to achieve these massive increases in crude oil production is there and quite solid,

but the rampant corruption that has plagued the Iraqi oil sector, especially since the fall of Saddam Hussein in 2003, and the failure to build the Common Sea Water Supply Project (CSSP) The reason was that production rates were so late.

The project involves taking sea water from the Gulf and then treating it before transporting it through pipelines to the oil fields to increase pressure and increase oil consumption.

Initially, it was supposed to cost about $10 billion so that it could provide about 6 million barrels per day of water to five fields. At least oil in the southern Basra region and one in the Maysan region.

The writer says that the “culture of corruption in Iraq” is responsible, as Iraq usually appears among the 10 worst countries out of 180 countries for the size and scope of corruption.

The author quotes International Transparency Reports stating that

“large-scale embezzlement, procurement fraud, money laundering, oil smuggling, and widespread bribery have led the country to the bottom of international corruption ratings, fueled political violence and impeded effective state building and service delivery.”

This may be the main reason why the CSSP project is not going forward, says Watkins, but

if Iraq can rid the project as much as possible of the rotten elements, it can begin to achieve the massive increases in crude production it envisions.

Source / Al-Hurra American website https://mustaqila-com.translate.goog/خبير-الفساد-يمنع-العراق-من-الاستفادة-م/

Al-Kazemi’s Advisor Sets Two Positive Goals For The Procedures For Zeroing Food And Basic Fees

Economie Today, 13:52   Baghdad – conscious – Nassar al-Hajj  Today, Wednesday, the economic advisor to the Prime Minister, Mazhar Muhammad Salih, identified two positive goals for the procedures for zeroing food and basic fees,

while indicating that the decision to zero customs is reviewed every three months.

Saleh told the Iraqi News Agency (INA), that “the procedures for zeroing customs duties on foodstuffs are important and accurate, to impose price stability in the country and

confront the waves of inflation imported from the world on the most consumed imported materials and goods that affect the lives of low-income social groups.”

He added, “Targeting customs duties and taxes is mostly an alternative equivalent to the effects of the exchange rate in imported goods and its continuous rise due to the effects of the energy and grain crises in the world due to the war between Russia and Ukraine,”

noting that   “the decision to zero customs duties and taxes is a temporary measure until prices stabilize.” world and its decline.

He stressed, “The decision to zero in on customs is reviewed every three months to assess the importance of continuing to implement the decision or not.”

With regard to local production, Saleh said,

“Imported production supplies and requirements, which are inputs for the production of local goods similar to those imported, should include, if not already included, customs zeroing,” noting that  “this generates a base of equal competition to satisfy demand.”

At the same time, achieving a price balance and effective sustainability of national production.

And last March, the Customs Authority announced the application of procedures for issuing circulars for the implementation of Resolution 72 of 2022, which includes zeroing customs duties for basic food and consumer materials and building materials, in order to support the citizens’ segment and the people’s food, which affects their daily lives to meet the challenges of high prices.    https://www.ina.iq/163376–.html

Parliamentary Finance Talks About The Fate Of The Financial Surplus: There Is No Fear Of The Corrupt

1,202 Economy 2022/17/17 15:28   Baghdad today – Baghdad   Today, Wednesday, a member of the Parliamentary Finance Committee, Jamal Koger, explained about the fate of the financial surplus of oil sales in the absence of a budget that determines spending for this surplus.

“There are no concerns about the seizure of the corrupt or the robbery of the financial surplus of the sale of oil because it goes to the state treasury where the state is still in place of its institutions.”

He added, “If these funds are in danger and prone to looting,

then this means that all state institutions are subject to this danger and Iraq has not yet passed this stage.”

And Dawn and Zubar Al -Finance, the resigned finance, Ali Abdul Amir Allawi, yesterday, Tuesday, a resounding surprise in which he said:

“Widged secret networks of senior officials, businessmen, politicians and corrupt state employees in the shadow to control full pieces of the economy and withdraw billions of dollars from the public treasury.”

This came in the content of the resignation submitted by Allawi in the hands of Prime Minister Mustafa Al -Kazemi during the cabinet session, yesterday, and the latter agreed to it.

https://baghdadtoday.news/news/198127/المالية-النيابية-تتحدث-ع

 

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