Zebari: We intend to sell oil to pay pre-conversion contracts for foreign companies to participate Service

[Markinsa]

Zebari: We intend to sell oil to pay pre-conversion contracts for foreign companies to participate Service

03/26/2015 06:34

Finance Minister Hoshiyar Zebari said Aovernmth plans to manage emergency funds through sales of oil reserves in advance and payment system for the first time and begin economic reforms to amend the oil contracts with major Western companies. 



And between Zebari in a press statement, "It has not yet determined the details of the quantities and value of these sales, known in the oil industry pre-funding but Iraq needs liquidity to fund its military campaign against al Daash To compensate for revenue lost because of falling world oil prices." 



Zebari said that "Baghdad also plans to change the way it manages its exploration and production contracts with oil companies such as Royal Dutch Shell, BP and Exxon Mobil." 



With this shift will move Iraq for the first time to the production sharing contracts under which the proceeds are split adopt a percentage of the services that you get under which oil companies on a specific fee contracts. 



The Iraqi service contracts entered into when oil prices were high, and the mean drop in global oil prices that Baghdad is now paid to the companies much more than if they were operating production sharing contracts. 



Zebari said that "the amended contracts in Iraq will know the name of [revenue-sharing contracts."

 

[siberian_shaddow]

Much appreciated Mark, wouldn't they have to have a complete hcl agreement and signed, before they start doing prodution sharing contracts.

Edited March 26, 2015 by siberian_shaddow

[sandfly]

THANKS

[yota691]

Finance Minister: Order submitted oil sale

Under section: economic Dated: March 26, 2015

 BAGHDAD / News Network Iraq said Finance Minister Hoshiyar Zibarialeom, said that his government plans to manage emergency funds through sales of oil reserves payment system in advance for the first time and begin economic reforms to amend the oil contracts with major Western companies. Among Zebari said in a press statement: "It is not yet quantities details and the value of these sales, known in the oil industry pre-funding but Iraq needs liquidity to fund its military campaign against al Daash To compensate for revenue lost because of falling global oil prices are determined. " Zebari said that "Baghdad also plans to change the way it manages Contracts for exploration and production with oil companies such as Royal Dutch Shell, BP and Exxon Mobil. " With this shift will move Iraq for the first time to adopt a production-sharing contracts under which the division of revenue is a percentage of the services that you get under which oil companies on a specific fee contracts. The Iraqi service contracts concluded when oil prices were high, and the mean drop in global oil prices that Baghdad is now paid to the companies much more than if they were operating production sharing contracts. Zebari said that "the amended contracts will know in Iraq on behalf of [revenue-sharing contracts]." Such a banned engagements in many of oil-producing countries because the Patriots consider the abandonment of the wealth of a sovereign foreign companies, but Zebari said that "Iraq should seize the opportunity afforded by the Daash crisis for reform." He said the Minister of Finance "It's better now for us to adopt the contracts of production sharing, we negotiate with all international oil companies, the federal government began to realize through the factual circumstances that revenue sharing is the best. " He explained, "You can not build the private sector and bring in foreign investment with the adoption of an authoritarian socialist laws of old." Zebari said "this crisis despite the odds which Nlaekayaa security-related and financial aspects led us really to a lot of new ideas, and became the logo is that it is essential that the reform, but it will economically fail. "The corruption and excessive spending in times of the rise of oil prices and financial mismanagement have all contributed to the economic crisis triggered by the takeover of the organization of the Islamic state on parts of Iraq and the collapse of oil prices. And that "Iraq will not put pressure on the Arab Gulf countries, OPEC members such as Saudi Arabia to cut production to support oil prices," stressing "must reform ourselves and should not rely on the goodwill of others In the Arab world, things are not going that way. " The Finance Minister Hoshyar Zebari said earlier this month that "Iraq is considering bond issue worth five billion dollars through the bank Citibank and Deutsche Bank to assist in the budget deficit to cover." He cited "monthly bill worth three billion dollars, facing the Iraqi government in order to meet the needs of its population of 32 million," as a sign of extreme centralization and lack of private investment.

[yota691]

Zebari: We intend to sell oil to pay pre-conversion contracts for foreign companies to participate Service
Wednesday, March 25 / March 2015 23:25

 

[Follow-where]

Finance Minister Hoshiyar Zebari said on Wednesday that his government plans to manage emergency funds through sales of oil reserves in advance and payment system for the first time and begin economic reforms to amend the oil contracts with major Western companies.

And between Zebari in a press statement, "It has not yet determined the details of the quantities and value of these sales, known in the oil industry pre-funding but Iraq needs liquidity to fund its military campaign against al Daash To compensate for revenue lost because of falling world oil prices."

Zebari said that "Baghdad also plans to change the way it manages its exploration and production contracts with oil companies such as Royal Dutch Shell, BP and Exxon Mobil."

With this shift will move Iraq for the first time to the production sharing contracts under which the proceeds are split adopt a percentage of the services that you get under which oil companies on a specific fee contracts.

The Iraqi service contracts entered into when oil prices were high, and the mean drop in global oil prices that Baghdad is now paid to the companies much more than if they were operating production sharing contracts.

Zebari said that "the amended contracts in Iraq will know the name of [revenue-sharing contracts."

Such contracts are prohibited in many oil-producing countries because they consider the abandonment of national sovereign wealth to foreign companies, but Zebari said that "Iraq should seize the opportunity presented by the crisis Daash for reform."

The Minister of Finance "It's better now for us to rely production sharing contracts, and we are negotiating with all international oil companies, the federal government began to realize through the factual circumstances that revenue sharing is the best."

He explained, "You can not build the private sector and bring in foreign investment with the adoption of an authoritarian socialist laws of old."

Zebari said that "the crisis in spite of the difficulties that Nlaekayaa security-related and financial aspects led us really to a lot of new ideas, and became the logo is that it is essential that the reform, but it will fail economically." The corruption and excessive spending in times of the rise in oil prices and financial mismanagement have all contributed to the economic crisis triggered by the organization of the Islamic state takeover of the zones in Iraq and the collapse of oil prices.

And that "Iraq will not put pressure on the Arab Gulf countries, OPEC members such as Saudi Arabia to cut production to support oil prices," stressing "must reform ourselves and should not rely on the goodwill of others in the Arab world, things are not going that way."

The Finance Minister Hoshyar Zebari said earlier this month that "Iraq is considering issuing bonds worth five billion dollars through the bank Citi Bank and Deutsche Bank to help cover the budget deficit."

He cited "a monthly bill worth three billion dollars, facing the Iraqi government in order to meet the needs of its population of 32 million," as a sign of extreme centralization and lack of investment Alkhash.anthy

[Big_J]

JUST DO IT!

[Markinsa]

Much appreciated Mark, wouldn't they have to have a complete hcl agreement and signed, before they start doing prodution sharing contracts.

 

I don't know.  These articles sound like they want to start selling Oil Futures. 

 

DEFINITION OF 'FUTURES CONTRACT'

A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash.

INVESTOPEDIA EXPLAINS 'FUTURES CONTRACT'

The terms "futures contract" and "futures" refer to essentially the same thing. For example, you might hear somebody say they bought "oil futures", which means the same thing as "oil futures contract". If you want to get really specific, you could say that a futures contract refers only to the specific characteristics of the underlying asset, while "futures" is more general and can also refer to the overall market as in: "He's a futures trader."

[blueskyline]

and begin economic reforms

[millionaire in training]

Definitely a promising move on their part........ We'll see.

[yota691]

The financial crisis pushing Iraq to sell oil reserves and production contracts for review

 

28-03-2015 01:23 PM

 

Free -

Iraqi government revealed that it plans to sell quantities of oil reserves on prepay, and this is the first time that the resort where Iraq's oil reserves within the funds in an emergency management procedures. 
He said Finance Minister Hoshyar Zebari, said the government is planning oil sales of reserves, will also begin reforms economic modifying oil contracts with major Western companies. Zebari said the agency, told Reuters, he has not yet quantities details and the value of these sales, known in the oil industry pre-funding is determined, but Iraq needs liquidity to fund its military campaign against al Daash terrorist To compensate for the revenues from oil, which fell losses by insecurity and low oil prices in global markets. Zebari said that Baghdad also plans to change the way it manages its exploration and production with oil companies such as Royal Dutch Shell, BP, Exxon decades, you'll learn the amended contracts on behalf of the revenue-sharing contracts. With this shift will move Iraq for the first time to adoption of production-sharing contracts under which the division of revenue is a percentage of the services that you get under which oil companies on a specific fee contracts. The Iraqi minister announced that he intends to take many actions, including the imposition of taxes on imports of cars and cards of mobile phones and provide two billion dollars by reducing bonuses Government employees who earn big salaries and collect $ 1.8 billion using SDRs for Iraq from the International Monetary Fund. If these steps have enabled the government to meet its obligations and increased oil production more will be public finances of the state in the event of a lot better in a few years. Adel Abdul-Mahdi: the budget is currently experiencing Many of pressure because of lower oil prices and the Iraqi service contracts entered into when oil prices were high, but after a drop in prices since last June at $ 50 a barrel, Baghdad became paid for companies more than if they were operating production sharing contracts. Such contracts are banned in many oil-producing countries because the Patriots consider the abandonment of the wealth of a sovereign foreign companies, but the Iraqi Minister of Finance said that Iraq should seize the opportunity for reform. "It is better for us now to rely contracts for production sharing, and we are negotiating with all international oil companies. The federal government has begun to realize through the factual circumstances that revenue sharing is the best. " He received Hoshyar Zebari, who took office in the government of Haider al-Abadi last October, the parliament's approval on the national budget and an agreement with the Kurdistan region on oil revenues after years of wrangling. Zebari said "You can not build the private sector and bring in foreign investment with the adoption of an authoritarian socialist laws of old."Earlier this month, Zebari also said that Iraq is considering bond issue worth five billion dollars through the bank City Bank Deutsche Bank to help the budget deficit cover . He pointed out that the Iraqi government needs $ 3 billion a month to meet the needs of a population of 32 million people. Hoshyar Zebari: it is better for us now to rely contracts sharing of oil production and has a hard Iraqi oil reserves, according to earlier reports, about 112 billion barrels, making it the the second largest oil reservoir in the world after Saudi Arabia, while energy experts expect that the Iraqi reserves than in the Gulf states if stabilized the situation and began to complete the research and exploration in areas where the geological survey the whole has not been. The Iraqi parliament passed at the end of last January, the general budget USD 105 billion on the basis of $ 56 a barrel and a projected deficit of about $ 22 billion. He Iraqi Oil Minister Adel Abdul-Mahdi, that the production process suffers many shortcomings and Budget under stress because of lower oil prices, adding that oil today is the basis for the fight against terrorism, which is part Preparations of providing money and fuel for the battle, stressing the importance of continuing to perpetuate oil production. Iraq currently earns about $ 50 billion a year from oil exports. If oil prices stabilized, the production growth rate of only 50 percent Cedar additional revenues of approximately $ 25 billion, enough to cover the deficit in the budget fully. The Iraqi government announced that it would take austerity measures package to put pressure on public spending, noting that the financial crisis need to procedures may be harsh, but kept on the support system so as not to open a new front social tensions. It was Iraq that will be issued treasury bonds worth $ 12 billion, to pay part of the accumulated dues to foreign oil companies operating in the country, which is expected to reach $ 27 billion by the end of this year. He said the Iraqi Oil Ministry earlier, it was agreed to launch treasury bonds during a joint meeting between the Ministry of Oil and Ministry of Finance and the Central Bank of Iraq. The Iraq faces an economic crisis that forced him to reduce the financial size of the budget and start the austerity policy as a result of lower oil prices, as announced The Ministry of Finance last month that it would increase taxes on some of the services provided. and threw the security disturbances and control the organization of radical Daash the oil fields in Kirkuk, a shadow over the struggling Iraqi economy, in addition to the decline in oil revenues due to lower prices, and entered Iraq in a severe financial crisis.

[Big_J]

["Fred"]

You haven't heard smoking gives you cancer? Just don't inhale Big J. Happy Saturday morning to everyone.

[zzztop]

I don't know guys, you don't want to rush into it.  I think you should discuss it and print articles about it for 10-15 years first then appoint a committee to study it for at least another 5.

[justchecking123]

Futures contracts, apparently.

[unirod]

Correct me if I'm wrong. But is this not the same contract structure the Kurd's have been using with big international oil?

[magawatt]

Monetising oil still in the ground.

That's what will make this thing work!

[magawatt]

Monetising their oil now is the best thing they can do. Get their money now and build a sustainable future. They might have 30 years of oil reserves; but long before they run out of oil it will only be used to make things stop sqeeking and making garbage bags.

[yota691]

Iraq will sell crude oil on prepay

Baghdad-Iraq-Presse -29 March / March: Finance Minister Hoshyar Zebari revealed the quest for the Iraqi government to sell quantities of oil reserves on prepay.

 

Zebari said, in a press statement, on Saturday evening, that "the government is planning to sales of oil reserves, will also begin economic reforms to amend the oil contracts with major Western companies."

"We have not yet quantities details and the value of these sales, known in the oil industry pre-funding is determined, but Iraq is in need of liquidity to fund its military campaign against al Daash terrorist To compensate for the revenues from oil, which fell due to insecurity and low price of crude oil in the world market losses."

 

Zebari pointed out that "Baghdad also plans to change the way it manages its exploration and production contracts with oil companies (such as Royal Dutch Shell, BP, Exxon), you'll learn the amended contracts on behalf of the revenue-sharing contracts."

 

With this shift will move Iraq for the first time to adopt a production-sharing contracts, under which the division of revenues is a percentage of the services that you get under which oil companies on a specific fee contracts.

 

Iraq seeks to raise its oil exports by adding 550 thousand barrels per day after the recent agreement between the central government and the Kurdistan region.

 

This is the first procedure of its kind to be resorted to when Iraq's oil reserves, within the funds in an emergency management procedures, as a result of the fiscal deficit, due to lower oil prices to below $ 50 a barrel and start Altakecv.anthy policy (1)

[justchecking123]

Not sure about a revalued currency but...IF...Iraq becomes a player among market speculators buying and selling futures contracts, their HAS to be someone/something at each end of the zero sum transaction. They have to have risk management in place to even think about this ie actual speculators.

[10 YEARS LATER]

Man O Man . . . that is some Flare Pit in the Oil Field. Thats allot of Natural Gas in that Oil ! Thats allot of Oil under foot !!!