Mawazin News

French report: Baghdad intends to sweep the world oil market

After years of political, security and economic chaos, Iraq is once again becoming the second-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) last September.

“Four years after his war against Da’ash, which has negatively affected part of its oil infrastructure in the north, Iraq is now restoring its economic status,” says a report by French newspaper Le Monde.

The report, written by Nabil Wakim and Eileen Saloon, said: “The goal of the new oil minister, Thamir al-Ghadhban, is to develop infrastructure and restructure the energy sector, which is full of corruption and mismanagement.”

Al-Ghadhban, according to the report, seeks to make his country produce five million barrels of oil per day in 2019, with 3.8 million barrels for export.

Attracting international companies

The authors noted that “OPEC considers that Iraq is in a period of recovery from the scourge of war, and stressed that in 2016, the Organization decided to reduce production to a large extent to raise oil prices, but did not comply with Mesopotamia to the demands of its partners under the pretext of their own circumstances.

“The new oil minister in Iraq, Thamir al-Ghadhban, told the Le Monde newspaper last November that” Iraq’s interest is to reach higher oil prices, “the

report quoted Ghadhban as saying.” What is important to us is getting a fair price for producers and consumers, stable ensures that the balance of our national budget, which is based about 90% of its revenues on oil. ” the

report noted that” may be a sharp decline in oil prices, which dropped to around $ sixty during the last month, serious consequences for Baghdad; the budget , which in the process are currently discussing In the parliament is estimated at 112 billion dollars from Allen And the estimated deficit of about 23 billion dollars, “according to an Iraqi source

The report added that” the new oil minister does not hide his intention to open the doors of Iraq to international companies to support the development of the country ”

The report also quoted the head of a French company in the sector “Iraq has started to open the way for international companies, especially with the presence of a government at the head of Iraq strongly supporting the petroleum industry.”

Financing of reconstruction

Le Monde report noted that “oil revenues are essential for a country like Iraq suffered decades of war and the impact of economic sanctions “He said.

Fifteen years after the US military intervention, Iraq finds itself in the process of financing the reconstruction process following the war it waged against Da’ash.

The report pointed out that with the United States imposing sanctions on Iranian oil, Iraq could use it to fill part of the demand for black gold, and could benefit from resuming the export of oil from the fields of Kirkuk to the port of Ceyhan (Turkey) through the pipeline crossing Iraqi Kurdistan.

According to the authors, the priority of Iraq’s new oil minister is mainly to develop infrastructure in the south, where most of the production capacity is concentrated, and the new minister is looking to diversify the export network with the extension of new pipelines. Source