Iraqi News Economic News Tuesday Evening

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Tuesday Evening Iraq Economic News Highlights 8-2-22


Planning: The Government Is Unable To Provide Job Opportunities For All The Unemployed


Iraq   11:01 – 2022-08-02   The Federal Ministry of Planning said that the government is “unable” to provide job opportunities for all the unemployed, in light of the “absence” of the role of the private sector, while revealing the preparation of a draft law on partnership between the public and private sectors.


The Undersecretary for Administrative Affairs, Azhar Hussein Saleh, stated that “the ministry is working, in addition to preparing the draft law, to educate and raise awareness of the importance of the private sector, and constantly strives to amend laws and reduce the differences between the public and private sectors.”


Saleh added, “The percentage of work in the private sector has reached 88 percent, so the country is still among the developing countries, as developed countries have a percentage of work in this vital sector to 96 percent.”


He continued, “The country is currently suffering from an increase in the trend towards public jobs, due to the lack of laws and the lack of real job opportunities in light of the challenges it has faced during the past years.”


She indicated that “the government cannot provide job opportunities for everyone according to the current development standards, so the private sector must participate, which should be supported by the state to create a healthy society and increase its positive repercussions in general.”


She pointed out, “the need for supporting laws that give workers in the private sector credibility and reassurance, especially the Social Security Law that guarantees the worker his rights in the event of an injury that causes him to lose the ability to work, in addition to the Home Employment Security Law issued by the Ministry of Labor and Social Affairs to guarantee the rights of the domestic worker as ( Servant)”.


The Stability Of The Dollar Exchange Rate For The Third Day In A Row


Economie| 10:05 – 02/08/2022   Baghdad – Mawazine News, the dollar exchange rates stabilized today, Tuesday, on the Iraqi Stock Exchange.


Selling price: 148,700 dinars per 100 dollars, buying price: 148,600 dinars per 100 dollars


US Agency: Weak Deterioration Of Basra Port Docks Weakens Oil Revenues


Posted On2022-08-02 By Sotaliraq     Translation: Hamed Ahmed


A US agency reported that the weak carrying capacity of the Basra Port’s loading docks and the deterioration of pipelines prevent Iraq from earning more money by exporting oil in conjunction with the increase in its prices, and bulges that appeared in recent months at the ends of the lines revealed fears of their explosion and causing an environmental disaster at sea.


A report by the US Energy Agency (Platts) quoted Iraqi officials as saying that “the chances of increasing the quantities of crude oil pumped into the facilities of platforms loading platforms at the port of Basra in the near term appear bleak.”


[size=45]The report added, “This prevents any benefit gained for the country from increasing production amid the escalation of oil prices.”


[size=45]He pointed out, “The old, dilapidated pumping pipes that connect the station and the loading docks pose a great risk of an environmental disaster.”


The report confirmed, “The (Platts) agency index of the movement of goods in the global market and the quantities of oil shipments from the oil-producing member countries of the Organization of the Petroleum Exporting Countries, showed that the quantities of crude oil produced by Iraq in the month of June amounted to an average of 4.38 million barrels per day, including the quantities of oil produced from fields Kurdistan Region”.


He pointed out, “This quantity is slightly more than the quantities of oil produced for the month of March, which amounted to 4.34 million barrels per day.”


The report stressed that “the southern port of Iraq for the export of oil was often seen as a narrow and obstructive outlet that is not commensurate with the large quantities of crude oil that the country produces.” And he reported, “The information of the Iraqi Oil Ministry confirmed that oil exports from Basra port for the period from March to June amounted to an average of 3.231 million barrels per day.”


The report noted, “This quantity is almost equal to the oil export rates for April 2020, which amounted to 3.351 million barrels per day, when (OPEC) and its allies abandoned the ceilings of production quotas for a limited period due to a disagreement over the production strategy amid the outbreak of the Corona pandemic and allowing producing countries to pump the amount that they you want it.” And he went on to say that “the flow of oil at the port of Basra is being hindered due to the poor condition of two marine lines feeding the pumping docks at the station.”


In addition, sources familiar with the situation said, “Swellings have appeared in recent months at the ends of these lines, and there are fears that they may explode and cause an environmental disaster by spilling oil into the sea.”


The report continues, “The data of the agency (Platts) indicator of the daily movement of freight says that this matter forced the Basra Oil Company to reduce the pumping rates of the loading docks by 25%, i.e. at a rate of 54,000 barrels per hour, compared to the previous pumping rates, which were around 70,000 barrels per hour.”


And he added, “The marine pumping pipelines were installed in the late 1970s and were hoping to be replaced decades ago, despite that, no replacement or maintenance work was carried out due to financing and political problems, as well as other obstacles.”


The report spoke of “the addition of four mono-berths to support and supplement these marine lines, which increased the flow of oil in them, compensating for the decline in the pumping stations by a small percentage.”


For his part, the deputy director of SOMO Oil Marketing Company, Ali Al-Shatri, says, “Iraqi officials hope that the oil export capacity from the Basra port will reach 3.35 million barrels per day by September.”


Al-Shatri added, “With regard to the present time, taking into account not only the limitations of export capacity but also the activities of rehabilitation operations that may cause interruptions at times, this is what we expect that we can achieve.”


Al-Shatri indicated, “The possibility of achieving a higher number than that, but I have some reservations about this possibility until I see plans to develop export facilities in full swing.”


Al-Shatti added that “SOMO expects that the quantity of shipments of the Basra Heavy crude category will be 1.1 million barrels per day in July, and Basra Medium crude will be 2.2 million barrels per day.”


The report stated, “The analyzes of the agency (Platts) indicate that the quantities of exported oil will be limited at that maximum rate for the rest of the months of the year, with production quantities remaining at 4.54 million barrels per day.”


He pointed out, “There are fears of low quantities of equipment resulting from maintenance and rehabilitation work for pumping facilities or for reasons related to security and political instability.”


The report continues, “The current environment of high oil prices is an opportunity for Iraq to ensure the allocation of funds required to replace dilapidated marine shipping pipes, which may take two years to replace from the date of signing the contract, according to people who studied the project to develop and rehabilitate the pumping station.”


And the report went on, “This would increase the capacity of the Basra port terminal for export by 700 thousand to two million barrels per day, in addition to 4 single berths for loading with a capacity of 2.2 million barrels per day.”    For: Platts Agency    LINK


More Than Two Million Unemployed Persons Are Registered In The Database Of The Ministry Of Labor


Today, Tuesday, the Ministry of Labor and Social Affairs counted the number of unemployed people registered in its database since 2003, while announcing the soft loans granted to them .


The Director-General of the Department of Labor and Vocational Training in the Ministry, Raed Jabbar Bahed, told the Iraqi News Agency that “the ministry waited for the results of the labor market survey to prepare a national policy for employment in all of Iraq,” noting that “the plans exist and are ongoing through the provision of grants and loans to the unemployed who wish to In establishing small projects, in addition to training the unemployed and acquiring new skills to qualify them to enter the labor market through the vocational training centers located in the ministry, in addition to cooperating with some international organizations to provide programs that would provide job opportunities for the unemployed .Bahed added, “Since 2003 until now, the ministry has registered more than two million unemployed people in its database, granted 60,000 soft loans to the unemployed, and trained more than 200,000 unemployed people in our training centers .”


He explained that “the ministry noticed that many of the loans given to the unemployed were not used to establish a small project to find a job, but rather pour into procedures other than the desired goal .”


And he stressed, “The ministry is following up on the loans and the mechanism for disbursing them by the beneficiary and referring the violators to the law to pay what they owe .”


9 . views  Added 08/02/2022 – 12:28 PM   Update 08/02/2022 – 1:17 PM


Sumo: We Received Positive Responses From European Companies To Import Iraqi Oil


Energy Economy News-Baghdad  Today, Wednesday, the National Oil Marketing Company (SOMO) of the Ministry of Oil announced a movement to increase Iraqi oil sales in the European market, while indicating Iraq’s ability to cover the needs of this market.


The director of the company, Alaa Khader Al-Yasiri, told the Iraqi News Agency that “SOMO has valid contracts for oil processing with European companies with a total quantity of about 600,000 barrels per day of Basra Medium, Basra Heavy and Kirkuk crude oil,” noting that “these companies possess liquidation capacities. A total of about 60% of the total liquidation capacity in the continent of Europe.”


He added that “Sumo Company is constantly searching for available opportunities for marketing and approaching European companies that do not have contracts with them,” noting that “it has recently received a number of positive responses from some companies that may lead to new contracts and lead to an increase in Iraqi oil sales in the European market.” .


He pointed out that “Iraq is able to cover the European market,” noting that “the current situation in this market requires companies to find suitable oils that are not subject to international sanctions, as Basra crude oil is considered one of those suitable oils.”


He continued, “The acidic average of Basra oil can feed European refineries, despite the difference in some quality specifications from the oils consumed in those refineries currently, which to some extent constitutes an obstacle to European buyers’ complete dependence on Iraqi oil.”


He stressed, “In terms of the level of demand for crude oil in the European market, the total quantities received for this market of medium-sour oils reached 2.5 million barrels per day, and in light of the political tensions that afflict Europe, which may affect the supply of crude oil in the market.”


The European Union may have a deficit of up to one million barrels per day of medium-sour crude oil, and this is an opportunity for Iraqi oil away from the Asian market, as it is the most promising market in the long term, which achieves a greater return for the Iraqi round and ensures the stability of demand for Iraqi oils.


Al-Yasiri pointed out that “Iraq is committed to the decisions of the Organization of Petroleum Exporting Countries, which always aims to strive for the stability of global oil markets and the balance of supply and demand,” noting that “any quantities that are allocated to a specific market are within the agreed production ceiling.”


And he indicated that “the Oil Marketing Company adopts a mechanism for the official price announced for all markets in selling quantities of oil, and this price is determined for each market and for each type of oil on a monthly basis according to the data and variables of the global oil markets, and this is a continuous context in which to work.”   Views 619   Added 06/22/22 – 1:13 PM  Update 08/01/2022 – 6:17 PM


Basra Oil: Selling 10% Of Exxonmobil’s Stake Is Contingent On A Single Action


Energy    Economy News _ Baghdad   Today, Tuesday, the Basra Oil Company clarified the details of selling 10% of ExxonMobil’s stake in the West Qurna 1 field, indicating that this depends on a single procedure.


The Deputy Director-General of the Basra Oil Company, Hassan Muhammad Hassan, said in an interview with the Iraqi News Agency and followed by “Economy News”, that “the Indonesian Oil and Gas Company (Pertamina) will buy 10% of ExxonMobil’s share in the West Qurna 1 oil field in southern Iraq.”


He continued, by saying: “This is what was agreed upon between the joint parties, and its implementation is subject to the signing of the settlement agreement with the Basra Oil Company.”


Earlier, the Council of Ministers agreed that the National Oil Company would acquire ExxonMobil’s stake in the West Qurna/1 field.   Views 13   Added 08/02/2022 – 1:59 PM   Update 08/02/2022 – 2:52 PM


Qatar Signs An Agreement With The Gulf Cooperation Council Electricity Interconnection Authority To Supply Iraq With Energy


Energy         Economy News – translation   The Qatar Fund for Development (QFFD) signed an agreement with the Electricity Interconnection Authority of the Gulf Cooperation Council to develop the Gulf Electricity Interconnection System and link it to the southern Iraq network .


According to the Khaleej Times website, the agreement aims to contribute to covering part of the demand for electricity, in addition to improving the performance and stability of the electricity network in the southern region of Iraq through the construction and connection of a new 400 kV substation in the Wafra region in Kuwait. The Gulf electrical interconnection system and the Iraqi electricity network through the Al-Faw transformer station in southern Iraq .


Khalifa bin Jassim al-Kuwari, Director General of the Qatar Fund for Development, said: “Together, we seek, in partnership with the Electricity Interconnection Authority of the Cooperation Council for the Arab States of the Gulf, to deliver electricity to our brothers in southern Iraq, where electricity support will play a fundamental and pivotal role in strengthening and supporting vital basic sectors such as the health sector.


Which in turn will provide health services to a large number of patients, in addition to strengthening the education sector, and this initiative will have a pivotal role in economic development and infrastructure development .”


The CEO of the Gulf Electricity Interconnection Authority, Ahmed bin Ali Al-Ibrahim, said that the electrical connection has achieved economic savings for the Gulf Cooperation Council countries by about 3 billion dollars since the full operation of the project, while avoiding major interruptions in the Gulf networks since the start of operation in 2009, which has had a significant impact on The continuity of electricity and its significant impact on society and the economic and industrial sector in the countries of the Gulf Cooperation Council .


The project is being implemented by the GCC Electricity Interconnection Authority, which owns and operates the Gulf Electricity Interconnection Network, and is one of the most important infrastructure interconnection projects approved by the Gulf Cooperation Council.


Among the benefits achieved by the project are reducing the required reserves in each country, mutual coverage in case of emergency, benefiting from the surplus, and reducing the cost of producing electric power among the countries of the Gulf Cooperation Council .


In 2001, the Gulf Cooperation Council was established, and the interconnection project was completed in 2009 .


The authority considers that the signing of the interconnection agreement with the electricity grid in southern Iraq, which coincided with the Jeddah Summit for Security and Development on July 15, 2022, is one of the most important strategic projects in the Gulf Cooperation Council countries that will begin. Implementation works during this month, hoping to be completed in the summer of 2024 .

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