Tuesday Evening Iraq Economic News Highlights 7-26-22
The cost exceeds 50 billion dollars.. 4 major challenges facing Iraq’s plans to raise oil production
Energy Economy News – Special An oil source in the North Oil Company identified, on Tuesday, the challenges facing Iraq to achieve plans to raise crude production to the level of 9 million barrels per day by 2027, indicating that the figure needs financial investments that the government cannot provide within a few years.
The source told “Al-Iqtisad News” that “the Oil Ministry’s talk about efforts to reach the production of 8 million barrels of oil per day needs to achieve at least 9 million barrels per day because of the percentage that will go to internal consumption.”
He explained that “Iraq’s production is currently estimated at 4.6 to 4.8 million barrels per day. Only 3.3 to 3.4 million barrels per day are exported, and this means that more than one million barrels per day go to internal consumption, such as refineries and power stations that operate on crude oil.”
The source stated another challenge, which is that “Iraqi reservoirs are abundant with oil, but in practice Iraq needs large surface facilities that correspond to the number required to be reached, if we know that increasing one million barrels of oil requires investments estimated at 15 billion dollars and thus reaching the level of 9 million barrels. Every day he needs investments of no less than 50 billion dollars, and this amount is difficult to secure within 3 years.”
He pointed out that “the weakness of the export outlets and the facilities reaching their maximum capacity will restrict the possibility of selling larger quantities of oil, and this means that there will be a need to enlarge the ports to export large quantities of crude, and this can be overcome by rehabilitating the Turkish line and diversifying the export outlets, for example, through Saudi Arabia.”
According to the source, “OPEC represents an important challenge in the way of raising the ceiling of Iraqi oil production, because this needs approval from the organization, or Iraq will resort to withdrawing and start exporting without adhering to the OPEC and OPEC + quota system, but there will be pressure on the market and there will be an increase in supply and a decrease in prices.” And therefore not to benefit from this increase in the event that the production increase is not done gradually and for a long period.”
And Oil Minister Ihsan Abdul-Jabbar announced, in April 2022, that Iraq is working to increase crude oil production capacities to 8 million barrels per day in cooperation with foreign partners by the end of 2027.
He said in a statement to the official channel that “the current production capacities of crude oil in Iraq amount to 4 million and 800,000 barrels per day, and we are working to increase it to 6 million barrels before 2027 and to produce 8 million barrels per day by the end of 2027 in cooperation with foreign companies operating in the country.” 123 views Added 07/26/2022 – 12:02 PM Update 07/26/22 – 1:30 PM
The Cost Exceeds 50 Billion Dollars.. 4 Major Challenges Facing Iraq’s Plans To Raise Oil Production
Energy Economy News – Special An oil source in the North Oil Company identified, on Tuesday, the challenges facing Iraq to achieve plans to raise crude production to the level of 9 million barrels per day by 2027, indicating that the figure needs financial investments that the government cannot provide within a few years.
The source told “Al-Iqtisad News” that “the Oil Ministry’s talk about efforts to reach the production of 8 million barrels of oil per day needs to achieve at least 9 million barrels per day because of the percentage that will go to internal consumption.”
He explained that “Iraq’s production is currently estimated at 4.6 to 4.8 million barrels per day. Only 3.3 to 3.4 million barrels per day are exported, and this means that more than one million barrels per day go to internal consumption, such as refineries and power stations that operate on crude oil.”
The source stated another challenge, which is that “Iraqi reservoirs are abundant with oil, but in practice Iraq needs large surface facilities that correspond to the number required to be reached, if we know that increasing one million barrels of oil requires investments estimated at 15 billion dollars and thus reaching the level of 9 million barrels. Every day he needs investments of no less than 50 billion dollars, and this amount is difficult to secure within 3 years.”
He pointed out that “the weakness of the export outlets and the facilities reaching their maximum capacity will restrict the possibility of selling larger quantities of oil, and this means that there will be a need to enlarge the ports to export large quantities of crude, and this can be overcome by rehabilitating the Turkish line and diversifying the export outlets, for example, through Saudi Arabia.”
According to the source, “OPEC represents an important challenge in the way of raising the ceiling of Iraqi oil production, because this needs approval from the organization, or Iraq will resort to withdrawing and start exporting without adhering to the OPEC and OPEC + quota system, but there will be pressure on the market and there will be an increase in supply and a decrease in prices.” And therefore not to benefit from this increase in the event that the production increase is not done gradually and for a long period.”
And Oil Minister Ihsan Abdul-Jabbar announced, in April 2022, that Iraq is working to increase crude oil production capacities to 8 million barrels per day in cooperation with foreign partners by the end of 2027.
He said in a statement to the official channel that “the current production capacities of crude oil in Iraq amount to 4 million and 800,000 barrels per day, and we are working to increase it to 6 million barrels before 2027 and to produce 8 million barrels per day by the end of 2027 in cooperation with foreign companies operating in the country.” 123 . views Added 07/26/2022 – 12:02 PM Update 07/26/2022 – 1:30 PM
The Prime Minister’s Adviser Outlines One Option To Reduce The Exchange Of The Dollar. The Fate Of The 2023 Budget Is Expected
Time: 2022/07/25 23:16:43 The prime minister’s economic adviser has identified one option to lower the dollar’s exchange rate against the Iraqi dinar, while predicting the fate of the 2023 budget.
Haitham al-Jubouri told al-Furat satellite channel tonight: “The financial equation in the country controls the exchange rate of the dollar, and if we want to strengthen the dinar and convince investors abroad to invest in the country gradually the dollar will start to decline, i.e. encourage investments and increase non-oil revenues will increase the value of the dinar.”
“The Iraqi people are increasing by one and a quarter million people a year, and if we don’t remedy the situation and make plans, we will actually suffer in paying salaries in the coming years, so the future of future generations cannot be depended on fluctuating oil prices,” he said.
“In Iraq, if the thinking of the economy remains the same as the current mechanism, we will have mercy on the current exchange rate, and the white paper has remained a dead letter without minds, to implement the old and consumed economic work and the revenues of the oil increase still exist in the state treasury,” al-Jubouri said.
“It can only be approved by the presence of the new government and not necessarily the same approach as the current government, it may take austerity as an article, but if the current government remains, we will go ahead with the law,” he said.
“Prime Minister Mustafa al-Kadhimi is the most dependent on the country’s energy file, and Iraq spent nearly 6 billion dollars on the electricity sector in 2021, and there was supposed to be an electricity levy covering the entire cost of the ministry, but it is not currently 15 percent,” he said.
“The federal court’s decision that the Kurdistan Oil and Gas Act is unconstitutional is a good step to negotiate with the federal government and the Financial Control Office, who is responsible for monitoring the revenues from the region’s oil, but the advances that the region currently receives are deducted from its share of the budget,” al-Jubouri said.
“This is possible because the government is now beginning to step up, there is a complaint filed with the Security Council and there is an intention for Iraqi forces to be present in areas adjacent to the Turkish border,” he said.
“The situation must be arranged before the boycott and an alternative to imports should be found, and the value of our imports from Turkey exceeds 20 billion dollars, which is higher than China,” he said.
“Iraq needs the right line-up of border ports and we need other measures to make the move a success,” al-Jubouri said, referring to Al-Kadhimi’s failure in the financial file, but in general he acted wisely and pulled Iraq out of major crises.
“The framework is keen on the unity of the national class by nominating Mohammed Shea al-Sudani for the post of prime minister, and I think that his personality is acceptable to all parties and he is known for his integrity and so far most of the blocs are welcome and I expect a breakthrough in the formation of the government soon and the framework options will be accurate about the ministerial cabin,” he said.
“Both Kurdish parties are determined to nominate them for the presidency and sudanese candidacy will lead to a speedy decision on the post of president,” al-Jubouri said. Wafaa Al , Fontelawi https://alforatnews.iq/news
Iraq Without A Budget For 2022
Iraq without a budget for 2022 101Samir Al-Nusairi We are now in the fourth week of July of 2022, and most countries of the world, but all of them, have issued their general budget for the aforementioned year and previous years with their final accounts, with the exception of Iraq, which we did not know where the general budget for 2022 is. Was it prepared? Is it still in the corridors of the ministries of finance and planning? Sent to the Council of Ministers.
Will it be the same as in 2014 and 2020 , during which the budget for the two years referred to was not issued, and why did the Ministry of Finance not send the final accounts of all previous budgets from 2013 to 2021 to the Office of Financial Supervision based on the law in force on the fifteenth of April of the budget year? The Council of Ministers did not send the final accounts for all the above years along with the budgets to the House of Representatives based on Article 62 first of the Constitution.
In fact, no one knows, but we only know that Iraq’s budgets for several years are not approved and issued until several months after the budget year because of the problems and political quarrels and those who forgot that the budget is the budget of the Iraqi people and the budget for the implementation of investment projects and projects of reconstruction, construction and economic reform. Until when will this be repeated?
The current and expected financial situation for Iraq until the end of the year is good, as oil prices will not be less than (85-100) dollars per barrel according to the expectations of the global oil markets. Therefore, we will have financial savings of up to 30 billion dollars until the end of 2022, which makes the budget if it is issued in The beginning of the year is proceeding in a way that achieves the government’s investment plans, fulfills its obligations towards internal and external debts, establishes its sovereign fund, and overcomes a real budget deficit for the first time in years.
But unfortunately, we expect that the budget for this year will not be issued during the coming months due to the lack of a government so far, in addition to the fact that the House of Representatives needs a long period of discussion and approval in the event that it is referred to it by the new government.
So, in view of this reality, Iraq will remain without a budget for the third time during the last decade, and thus Iraq will be the first in the world without an annual budget in the years 2014, 2020, 2022.
Views 66 Added 07/26/2022 – 11:52 AM Update 07/26/2022 – 1:33 PM
https://economy-news.net/content.php?id=29016
Dana Gas: Production Operations Of The Khormore Expansion Project In Iraq Are Proceeding Normally
Energy Economy News-Baghdad Dana Gas announced on Tuesday that two small projectiles fell in the Khormore concession area in the Kurdistan region of Iraq, on Monday evening .
The company indicated in a statement to the Abu Dhabi Financial Market that there were no injuries as a result, confirming that production operations would continue normally without interruption .
Last June, Dana Gas announced that a small missile had fallen inside the Khormore concession area in the Kurdistan region of Iraq, confirming that no damage had occurred as a result, and that production operations would continue normally without interruption .
It indicated that it is cooperating with the local security services that are conducting a comprehensive investigation, indicating that the Kurdistan Regional Government of Iraq has strengthened security measures and increased the presence of security forces in the region .
It is noteworthy that the profits of “Dana Gas” rose 125 percent during the first quarter of 2022 .
The company’s profits amounted to 198 million dirhams at the end of the first quarter of 2022, compared to profits of 88 million dirhams during the same period in 2021 .
https://economy-news.net/content.php?id=29012
After The Boycott Call.. Baghdad Trade Talks About The Availability Of Alternatives To Turkish Products
Shafaq News/ Baghdad Chamber of Commerce confirmed on Tuesday that Iraq has alternatives after our demands to boycott Turkish products following the recent attack on a resort in Kurdistan Region.
The head of the chamber, Firas Al-Hamdani, said in an interview with Shafaq News Agency; “Iraq has common borders with many neighboring and brotherly countries,” noting that “the people do not go hungry if economic relations with any country are cut off because there are alternatives.”
He added that “there are Syria, Lebanon, Kuwait, Iran, Saudi Arabia and the UAE, and they have a developed industry in many fields, and at good prices for some countries that compete with the prices of Turkish products,” adding that “the quality of some Turkish products may be better in some goods, but not all.”
Al-Hamdani pointed out that “cutting the relationship with Turkey 100 percent is also not the right decision because it affects the merchants and not our national economy, given that Iraqi merchants have interests and also they have interests inside Iraq and must be respected by the two countries.”
Al-Hamdani indicated that “as the Chamber of Commerce, we called for a boycott of Turkish products at the very least until the occupation of some places in the Kurdistan Region is reconsidered and an apology is offered to the Iraqi government over the incident.”
On July 23, the Baghdad Chamber of Commerce announced the boycott of Turkish goods as a sacred national duty in response to Iraq’s accusation of Turkey bombing a tourist area in the Kurdistan Region a few days ago, killing a number of tourists and wounding others. LINK
Turkish Report: Iraqis Have Established 159 Companies In Turkey Since The Beginning Of 2022
Money and business Economy News – translation About 9,828 companies with foreign partners were established in Turkey with a total capital of 5.4 billion Turkish liras ($300 million) in the first half of this year, according to official data. This number is up 64.4% compared to the same period last year.
About 884 of the companies established in the January-June period began operating as joint stock companies and 8,944 limited companies, while the proportion of foreign capital reached 80.8%, according to the report of the Anadolu Agency (AA) that collected data from the union. Chambers and Commodity Exchanges of Turkey (TOBB).
While about 640 of those newly established companies were owned by Iranians, 500 were owned by Russians, 269 by German companies, 266 by Syrians and 186 by Egyptians. These countries were followed by the owners of 179 companies from Jordan, Pakistan with 162 companies, Azerbaijan with 160 companies, Iraq with 159 companies, and the United States with 141 companies.
The total capital of companies with Iranian partners amounted to 347.4 million Turkish liras in the six-month period.
The capital of companies with Russian partners is 306.5 million TL, German partners 299.3 million TL, those with Hong Kong partners 230.5 million TL, those with British partners 212.7 million TL, those with Belgian partners 206.5 million TL and Those with Syrian partners have a total capital of 150.2 million TL.
With 6,122 companies, Istanbul ranked first in the list of provinces in which most foreign capital companies were established in the mentioned period. It was followed by the southern province of Antalya with 767, the capital Ankara with 402, southern Mersin with 353, and the northwestern city of Bursa with 262 companies. The total capital of the mentioned companies established in Istanbul amounted to 3.3 billion Turkish liras.
Followed by Antalya with a capital of 397.8 million Turkish liras, then Bursa with a capital of 350.8 million Turkish liras, and then Mersin with a capital of 292.9 million Turkish liras.
In some provinces, including Ardhan, Bitlis, Bartin, Chankiri, Gumushan and Sinop, no foreign capital companies have been set up.
Meanwhile, in the first half of last year, about 5,978 companies with foreign partners were established with a capital of 3.2 billion Turkish liras. 23 . views Added 07/26/2022 – 1:40 PM Update 07/26/2022 – 2:47 PM https://economy-news.net/content.php?id=29022
