Oil Minister: Iraq paid dues international oil companies

[yota691]

03/04/2015 14:35

Oil Minister: Iraq paid dues international oil companies

 

 

 

Iraqi Oil Minister Adel Abdul-Mahdi stressed that Iraq paid dues for international oil companies, and among that Iraq's oil production reached 3.3 million barrels per day, welcomed the Iranian nuclear deal and the lifting of sanctions, indicating that it will re-balance the global oil market.

BAGHDAD / obelisk announced Iraqi Oil Minister Adel Abdul-Mahdi, the Sabbath, that Baghdad had paid dues for international oil companies, and was able to solve the problem to allocate funds from the budget of up to about $ 12 billion, and issued treasury bonds of the same amount, pointing out that the dues companies for 2014 amounted to nine billion dollars paid all in 2015, and that the amounts to be paid in each quarter of 2015 amounting to four billion dollars, to be paid the last quarter of the current year dues at the beginning of next year.

In an interview with reporters at the Iraqi Embassy in Paris in the presence of the Iraqi ambassador Fred Yassin, Abdel-Mahdi said in response to a question from the newspaper "life" as published Friday and I followed, "obelisk" the message sent by the ministry to international oil companies, "We asked them to cut costs that do not impact on production. "

He pointed out that Iraq's oil production reached 3.3 million barrels per day, pointing out not to accurate information about the Kurdistan production, and said, "I'm not quite sure of its size, because we do not get accurate information, but we know that what comes from the Turkish port of Ceyhan up to about 400 thousand barrels per day, and if we have increased about 125 to 130 thousand barrels per day for domestic consumption in Kurdistan, Iraq's total production shall be between 3.7 and 3.8 million barrels per day. "

He announced the signing of a memorandum of understanding with the French Ministry of Industry, "Total" committed under which participate in the construction of a petrochemical plant in the south of the country.

Asked about the impact of falling oil prices in the production target of Iraq, said, "We are aiming to reach production to 12 million barrels per day, after seven years, but we have reduced this goal last year to 9 million barrels per day, with the extension of the period sometimes for some companies to 15 years to reach the goal ".

Abdul-Mahdi stressed that Iraq negotiates international companies, and there is a mutual ideas to improve the contracts.And partnership contracts for adoption in production with companies, he replied, "such contracts supported in Kurdistan (...), we do not need to participate in the production, but to give the elements to attract and encourage companies, and may not change the service contracts but Ndmnha some additional items incentives for companies to work when the price of oil rises or when it drops, to be more flexible contracts. "

He pointed out that the "war against Daash affect the oil situation, since March 2014 production ceased in Kirkuk, Baiji refinery and disrupted after June, but now came back Kirkuk oilfields to work 600 thousand barrels per day (...). Daash enjoyed several fields such as Guiarh and Ajil and Klaas, and attacked the baker field. I have visited the region last month, found that the oil industry was very impressed, and the pipeline network between Kirkuk and Baghdad sometimes affected as a result of the status quo, and shortly before liberation field baker and Ajil (. ..), however gradually restore calm, installations can be repaired and re-work the Baiji refinery fully. "

And an agreement with the Kurdistan Regional Government in December (December) the past, and a complaint Kurds that they do not receive the agreed funds, said Abdul-Mahdi, "the first phase with the Kurdistan Regional Government, was to rebuild confidence that the central government gets from the region of 550 thousand barrels of oil in return to pay him $ 450 million. "

He added, "The second phase was agreed that the pay per month for the Kurdistan 17 percent of the budget (...). Goes in good shape with some obstacles, but the rate of what has been exported from Ceyhan totaled thousand barrels per day, in the beginning, the Kurdistan give government about a third of this amount, and the rest exported, but finally we have two-thirds of this amount and issue a third. "

And the Iraqi stance of policy in the production, "OPEC," he said, "It is premature to announce our position, this is based on our analysis of the market." Asked about Iran's influence back in the oil market, he replied, "We would be happy if there was an agreement between Iran and the six countries on the nuclear issue (...). More Iranian oil in the market will affect the prices, but the satisfaction of the region give hope may affect the balance the market ".

French President Francois Hollande met with Abdul-Mahdi, who chaired the meeting of the French - Iraqi Joint Committee held its meeting in Paris.

 

 

 

 

[sgtsanders]

hmmm...... .37 cents. I'll take it.

[sandfly]

THANKS

[unirod]

More Iranian oil on the market could mean $20 a barrel for oil. Now how can Iraq welcome that prospect? A stupid oil minister....IMO

[yota691]

Iraq's debts to oil companies

 

04/05/2015 14:35:00

     

Iraq's debts to oil companies

 

In an interview with Dr. Adel Abdul-Mahdi, conducted by the Iraqi Oil Report published in the thirtieth of March, eating Ben Lando, editor, this subject that has raised a lot of controversy and also carry a lot of misunderstanding, and with great regret, some have tried to discredit former talk to Dr. Adil Abdul-Mahdi, with a news agency in order that it seems as if negligence by the previous administration of the oil, as some have tried to take advantage of these statements, through distortion, to appeal against the service contracts and suggests that they forfeit the rights of the people which is the cause of the calamities facing Iraq now, and probably is the reason Financial Bozmth and budget deficits. 
Most of the contents of this distortion is to suggest, directly or indirectly, that these contracts, service contracts, is not valid and that the alternative of the fittest is the production sharing contracts, in an article for the pharmaceutical and visual artist and novelist, do not know what the oil and economy relationship, began to curse the oil policy and the contents of the contracts as if they are the cause of Iraq's economic crisis and not a single Iraqi economy and Rieith. It started so far as to discover that the new savior who came riding a white horse coming from the mountains of Kurdistan, is the finance minister in the federal government, which is tired of negotiating with international banks to save money, and cited, but carved out a part of an article written by Issam Chalabi, a former minister of oil, which not liking him all types of contracts with international companies because of intellectual and ideological background, she does not know that Chalabi himself is that service contracts lesser of evils, they are the best types of oil contracts now, despite his rejection of the principle of contracting with major international companies to develop the fields, he wants to be the development nationally pure, and I personally respect his opinion, despite intense conservatory on how the application of this vision. 
It is well known, as stipulated in the contract, the state pays cost to develop fields in full through the deduction of 50% of the oil produced during the quarter period, any three-month production, to repay cost development, and this percentage is called with oil cost in the production sharing contracts, because all types of contracts containing the clause, but the deduction rate vary from contract to another, if I told percentage longer repayment period, and if the increased ratio fell short repayment period, taking into account the volume of oil product when adopting repayment rate for the benefit of both parties. 
foregoing understand that commissioned the development of 17 oil fields currently being developed at the same time, must be paid by the state by estimating the size of the development projects done every three months, and so payment is made ​​at the end of three months. If we knew that commissioned the full field development of 17 fields is estimated at $ 200 billion, according to the global costs and feasibility studies approved time of signing the contract, we find that the state should pay almost 4 billion and $ 500 million every three months, and so are the annual development up to $ 18 billion cost due Pay per year for companies. 
Of course, depends pay this money at the completion of the development processes in the fields after reaching the ultimate goal of development, probably after about four or five years from now, or stop increasing production at any given time in the event of accepted companies modifying contracts and change ceilings final production, rather than access to 9 million barrels, and this is the current ceiling, to assume that they stop at the ceiling of the production of six million barrels and expire after five years, is also a period, and so will be the payments much lower than the 4 billion every three months. 
When asked Oil Minister by the IOR, Araki Oil Report, for dues companies, which is a dues for last year is estimated at $ 9 billion, supplemented by dues for this year, which is estimated at $ 18 billion, which is the size of large funds Bdil large deficits in the Iraqi budget for 2015 ? 
Through answer the minister is clear that it has already been paid $ 3 billion this year, and that benefits the current year, which is estimated at $ 18 billion, will not pay the whole of this year because, quarter or quarters Alokhirn of the year to be paid during 2016. Thus, it will be owed money to be paid this year is the $ 6 billion is added a sum of six months, which is 9 billion, totals will be the $ 15 billion up to, but what would be provided and the Ministry of Finance, a $ 12 billion budget allocations, Valmtbaka will be up to 3 billion, will be paid through what you would get the state from issuing new bonds, and so I found companies that dues are already available, and will get a satisfied in the words of the minister. 
foregoing understand that there is not a waste of public money, and there is no corruption, there is no ill-oil contracts, not bad management contracts, but falling oil prices Bdil lack of an alternative that flows into the budget money offer is who created the crisis, the money that we see today is spent in vain, corrupt and spoilers who do not know how to employ the funds to create opportunities for work, and profits add to the country's economic power, in short do not know anything about development, all I know ministers quotas and bodies that are no longer independent is the disbursement of funds to the parties or the Mavyatem corruption and disregard for public money and the people. 
return to the main theme, but if Iraq was amended contracts to pay less, would last longer development period, while Iraq needs to increase production to provide more funds to meet the needs, but it seems that the increase in the present time has become a subject of controversy for several reasons, including the sharp drop in oil prices and other factors in the way and with a significant impact on oil markets such as the return Iran to produce higher than the current production, an increase of a million and a half million barrels a day can be increased in the future, so some find that the Iraq rethink old his policy, or current, which depends principle speed up production, but there are finds that continuing this policy may create a situation better for Iraq from the negotiating within OPEC, despite OPEC turned into Saudi tool Gulf with more political dimensions, including economic to achieve the highest benefit through the imposition of the optimal price on world markets. 
For these reasons and others found the Oil Ministry that it review its oil policy and contractual to achieve the highest benefit, but the path is very narrow and full of bumpy and traps that can be installed by the middle of the road, especially the weakness of Iraq's negotiating front with long experience negotiating companies and reap the best profits to the owners of the legitimate right of the oil account. 
Unfortunately, the decline in oil prices came time is appropriate, in sync with the war on terrorism and the problem of displaced people, but do not synchronize these cases to a hair of crisis, the real crisis lies the management of public money, as we have said, not oil or dues companies for development operations, because these operations really very expensive, as the reward companies and cost of production was almost negligible compared to the high development costs. 
to the fact that Iraq Rei country depends basically on oil revenues benefited weak people of this relationship to lay the blame on the oil and not on the management of public money, which is far from the oil, and followed them dupes and Kulailoa knowledge to be raised a fuss is justified at all against the best achievement of Iraq since the fall of the former regime, and yet, that is his conception of the service contracts and put into the application. 
We recognize the fact that Lula Iraqi fields to develop what the proceeds of Iraq amounted to more than a hundred billion dollars a year a year ago, and when the employees' salaries have risen, and because the state acted in this extravagance Babviac, and have been able Iraq generally Next terrorism stand behind the border, and have been able to victories on the battlefield. 
In the same interview, the minister spoke about another subject represented an amendment to the contract, and this is a subject very seriously, despite the fact that the minister explicitly said it will not change the content of the contracts as service contracts, but he sought to improve conditions through negotiations with companies, has given too narrow for this supposed adjustment path, and this is what needs to be another pause to talk about him, study well, but unfortunately, the minister did not give us enough time to voice their opinions, as yesterday announced that the Commissioners with the oil companies have already begun. 
What progress do not means that the contracts are optimal, but it certainly is the best among all development contracts at the level of the whole world until now, no long-term contracts the best ones there at all, and has been credited exclusively to provide this flow of large fiscal and flux on Iraq, but if Iraq were able to improve the conditions and aspiring his minister, it will be an object of admiration. Hamza Jeweler / Baghdad PUKmedia