Iraqi Economic News Highlights Friday Morning

Friday Morning Iraq Economic News Highlights 11-25-22


The House Of Representatives Neglects To Pass Laws That Citizens Are Waiting For


Sumerian special  2022-11-25 | 04:13  Source:   Sumerian   510 views  The House of Representatives is still unable to legislate and approve the service and economic laws that citizens are eagerly awaiting, while the representatives attribute the reasons to the absence of political consensus on some laws.


Another session of the House of Representatives was absent from the most important and needed laws expected of citizens, and an agenda in which some laws were developed at a stage from previous sessions, while the legislation of important laws, whether related to the economic or service aspect, continues to be neglected.


The obstruction was, and still is, caused by the absence of political consensus on some laws, such as the budget, adjusting employees’ salaries, and other legislation related to financial issues in particular. Representatives confirmed that differences are still present within the parliamentary committees.


There are many draft laws between suspended and suspended, some of which depend on their approval at various stages of life, and others that contribute to solving problems and restoring a societal reality.


Expectations Of A “Huge Jump” In Iraqi Oil Production Within Months

“OilPrice” expected, in an article published by journalist Simon Watkins, that oil production in Iraq would achieve a huge leap during the next few months.

Watkins said that the Iraqi oil officials’ statements about the new production targets, which range between 6-8 million barrels per day, raise the question of experienced oil observers about the extent of this impact on the Iraqi oil industry.


And last week, the Director General of the Iraqi Governmental Oil Marketing Organization (SOMO), Alaa Al-Yusri, said that Iraq targets 7 million barrels per day of crude oil in 2027.


According to the writer, the main reason why Iraq does not produce even 13 million barrels per day at the present time is that its oil industry seems to be seen by many in the upper levels of its various bureaucracies as part of their personal retirement funds. Beginning with ExxonMobil’s hasty withdrawal from the corrupt Iraq Joint Seawater Supply Project (CSSP) as fear of massive reputational damage trumped desire for huge oil profits, Western international oil companies (IOCs) rushed out of the Iraqi oil sector.


The independent risk agency, Transparency International (TI), has highlighted for many years in its publications the Corruption Perceptions Index, that Iraq typically appears in the worst 10 out of 180 countries in terms of the scale and scope of corruption.


Transparency International says: “Massive embezzlement, procurement fraud, money laundering, oil smuggling and widespread bureaucratic bribery have landed the country at the bottom of international corruption rankings, fueling political violence and impeding effective state building and service delivery.”


The writer said: “Iraq can count on an additional 0.25 million barrels per day from West Qurna 2 within weeks. In addition to an additional 0.7 million barrels per day from Rumaila, this will increase Iraq’s total oil production by 0.95 million barrels per day within months.” Added This brings the October production of 4.561 million barrels per day to 5.511 million barrels per day, leaving 1.489 million barrels per day to reach the target level of seven million barrels per day.


He added, “For a country rich in easily accessible oil, that’s a small step. For a country like Iraq, it’s a huge leap.”


Saudi Energy Minister Prince Abdulaziz bin Salman and his Iraqi counterpart, Hayan Abdul Ghani, stressed the importance of working within the framework of the OPEC + grouping, and the “possibility of taking other measures to ensure balance and stability in global markets if the need arises.”


This came in a joint statement issued by the Saudi Ministry of Energy, Thursday, and it also stated that the two ministers stressed “their countries’ commitment to the recent decision of the OPEC Plus group, which extends to the end of 2023.”


The Iraqi Oil Ministry said that the minister arrived in the Saudi capital, Riyadh, on Thursday, at the invitation of Saudi Arabia. LINK

SOMO Denies The Occurrence Of Smuggling Of Crude Oil From Khor Al-Zubayr


Energy  Economy News – Baghdad   Today, Thursday, the National Oil Marketing Company (SOMO) denied that crude oil was smuggled from Khor Al-Zubayr.


The company said in a statement, “One of the social media platforms published misleading and incorrect information regarding the existence of cases of smuggling of Iraqi crude oil from the port of Khor Al-Zubayr by foreign tankers with the participation of the Oil Marketing Company.”


She added, “The Oil Marketing Company is legally responsible for exporting Iraqi crude oil, and this process takes place under solid contracts with major international companies, and the exported quantities are loaded into tankers through official ports.”


She indicated that “the quantities exported, pumped to ports, and received by foreign companies are matched by all concerned authorities and under the supervision of a specialized international company (a third examiner) with high transparency, and detailed information on this subject is published in the reports issued by the Transparency Initiative for Strategic Industries in Iraq, which can be viewed by everyone.”


And she continued, “The port of Khor Al-Zubayr is a port dedicated to goods and the export and import of petroleum products, and it is not equipped with any equipment or pipelines for exporting crude oil.”


And it indicated that “all the tankers mentioned in the misleading report are tankers officially contracted to transport the black oil to the floating reservoir in Khor Abdullah and with successive periods to be exported from there under official contracts with solid international companies, and the quantities loaded on them are subject to conformity with high transparency by the concerned authorities.” According to the statement.


And she stressed that “the Oil Marketing Company holds the party that published the report responsible for misleading public opinion and reserves its legal right to sue them for that.”


Views 93   Added 11/24/2022 – 4:35 PM   Updated 11/25/2022 – 11:09 AM


Oil Minister From Saudi Arabia: Iraq Is Supportive Of The Decisions And Agreements Of OPEC And OPEC Plus


Energy   Economy News – Baghdad  Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani affirmed the government and the ministry’s keenness to develop bilateral relations with Saudi Arabia in all fields, especially the oil, energy and petrochemical industries.


Abdul-Ghani said, during the meeting of the ministerial delegation visiting Saudi Arabia at the invitation of Saudi Energy Minister Abdulaziz bin Salman, that “the meeting affirmed the keenness of Iraq and the Kingdom of Saudi Arabia to enhance the prospects for bilateral cooperation between the two brotherly countries in a way that achieves common interests.”


Abdul-Ghani referred to “activating, accelerating and converting memorandums of understanding into a practical reality on the ground that sets specific timings for implementation, including the gas investment project in Akkas and the Nebras petrochemical and electrical connection project, as well as gas investment projects in the southern fields, clean energy and others,” calling on Saudi companies to “Investing in the oil and gas sector through the implementation of joint projects,” while stressing that “Iraq seeks to provide a suitable environment for the work of Arab and international companies.”


On cooperation and coordination with Saudi Arabia in OPEC and OPEC Plus, the Minister of Oil said, “Iraq supports the decisions and agreements of OPEC and OPEC Plus because they aim to achieve a balance between supply and demand, and lead to more stability in global markets.”


For his part, bin Salman affirmed, “The invitation of the Deputy Prime Minister, Minister of Oil, and the ministerial delegation comes within the framework of the Kingdom’s interest in strengthening relations with brothers in Iraq and working to accelerate the implementation of joint projects in several fields,” calling for “the formation of joint committees to resolve the projects that have been agreed upon.” Previously, it was involved in the sectors of gas investment, electrical connection and petrochemical projects.


He expressed the Kingdom’s readiness to cooperate and establish joint projects in all sectors needed by Iraq, praising the human capabilities, minds and experiences that Iraq possesses, as well as its economic capabilities and natural resources, which are able to transform it into an important economic force in the region. And in the world.” Views 105   Added 11/24/2022 – 7:13 PM   Updated 11/25/2022 – 2:02 PM


The Kremlin: Putin Discussed With Al-Sudani Western Attempts To Impose Restrictions On Russian Oil


Energy   Economy News – Baghdad   Russian President Vladimir Putin and Prime Minister Mohamed Shiaa al-Sudani described the ongoing work within the framework of “OPEC +” as “positive,” explaining that this is what helped ensure the stability of global oil markets, according to Russian media.


The statement of the Kremlin’s press office said, today, Thursday: “The two sides presented, in a phone call between them, a positive assessment of joint work with the participation of Russia and Iraq within the framework of (OPEC +), which ensured the stability of the global oil market.”


Putin also congratulated the Iraqi Prime Minister on his assumption of office, and discussed with him “the attempts of many Western countries to impose restrictions on the prices of crude oil from Russia.”


In the context of bilateral relations, Putin noted the “traditionally friendly and constructive nature of cooperation between the two countries.”


Views 371   Added 11/24/2022 – 7:46 PM  Updated 11/25/2022 – 12:35 PM



The Parliamentary Finance Committee Proposes Adopting A Price Of $75 Per Barrel In The 2023 Budget


Economie   23:00 – 2022-11-24  The Parliamentary Finance Committee clarified, this evening, Thursday, the priorities of the 2023 budget, and while it expected it to reach parliament at the beginning of next year, it was likely that its value would reach 150 trillion dinars, while it proposed fixing the price of $ 75 per barrel.


Committee member Mueen Al-Kadhimi said, “The Ministries of Finance and Planning are serious about completing writing the draft budget for 2023, and there will be a discussion about it in the Council of Ministers, and we believe that it will be sent to the House of Representatives early next year.”


He added, “In the Finance Committee, we believe that the budget will translate the government program into health and electricity files, and try to reach the production of 30 megawatts per day, support the social protection file, the investment and urban aspects, and infrastructure development. There are also expectations that its value will be 150 trillion dinars, especially with the rise in oil prices.”


Al-Kazemi stressed the necessity of adopting a reasonable price for a barrel of oil that takes into account the possibility of a drop in global prices, such as 75 dollars, and accordingly, the value of oil revenues will be only around 127 trillion dinars, while there will be other non-oil revenues with a value exceeding 20 trillion dinars


In OPEC, it reaches 3,250 thousand barrels, and exports must increase, and Iraq’s position is taken into account as the third producer around the world, and also the percentage of its share in OPEC has been reduced as a result of wars, and its current situation differs. It will not exceed 10 trillion dinars.