Kurdistan warns of oil production stopped due to lack of funding

[yota691]

Kurdistan warns of oil production stopped due to lack of funding

Thursday 11-06-2015 | 3:05:02

 

 

 

 

 

Kurdish-mm AM / PM in oil

Twilight News / warned the Minister of Natural Resources in the Kurdistan Regional Government drastically, Thursday, stopped oil production in the region due to lack of appropriate financial support.

Hawrami said in his speech at the Iraqi oil conference held in the British capital London, and followed up Twilight News, the urgent need for economic conditions stable, adding that the ministry can not ask the oil producing companies to grant months extra each time so that they can secure the necessary money her .

 Hawrami said that his ministry need money for companies operating in the field of oil production, and in the end, but the projects will stop because companies have limited possibilities to be able to produce oil without charge.

Hawrami said that if Baghdad that the ministry could not be granted the necessary funds, it has to allow them to find a better coordination between them and the oil companies formula.

 

[new york kevin]

Really, I am not surprised since they scrapped the HCL/HCA to rewrite it immediately and then pass it into law two seconds after it is written and agreed to. They should all federalize so that each get the portion of the oil profits they deserve according to the law. They can become the United States of Iraq. Like the UAE, but different.

Bagdad, Kurdistan, Anbar, GOI, get your stuff together, stop fighting along 2000 year old theological lines,,cause oil is not the only thing that flows down hill!

[Wiljor]

"Hawrami said that if Baghdad that the ministry could not be granted the necessary funds, it has to allow them to find a better coordination between them and the oil companies"

Simple, make the currency worth more, give it purchasing power and problem solved. Obviously easier said then done :-(

Good morning Yota and thanks for all you do.

[Boozer]

No PAY No Play...... Get your azz in gear and get this thing moving

[Sellous]

 I would love to hear from Adam on this battle going on. Obviously, they are not tra la la arm in arm and the agreement is not settled.  Adam has not really addressed this issue.  Or; maybe  anyone take on this.  Maybe fill in the blanks, what happened that the HCA was close to being HCL , congrats was in order, and oops, not even close.

 I guess I missed something.

[sandfly]

THANKS

[jg1]

but what are you going to eat if you don't pump oil

if I was a camel I would start getting worried right about now. Camel steaks anyone

[Theseus]

... what happened that the HCA was close to being HCL... 

 

 

Really, I am not surprised since they scrapped the HCL/HCA to rewrite it immediately .....

Okay the HCA was an agreement between the federal government of Iraq and ONE of its states. The HCL is an agreement between the federal government and ALL of its states. See the difference yet? Everyone who thinks the HCA is the HCL has this confused, the HCA is not the HCL and never will be. It will be part of the HCL only when referring to the Kurdish state.

 

Let's try to put this into perspective. Here is an example Let's say Washington made an agreement to do such-and-such for all 50 states and North Dakota happened to be a special circumstance. Now the United States has several regions, the Midwest, East Coast, West Coast and the South. North Dakota let's say controlled the Midwest with its own government but remained as a member to the United States. So now Washington has to treat them with kid gloves. Now Washington comes to an agreement with North Dakota and that region but the entire such and such deal is not for the entire United States it only pertains to North Dakota's region. The other three regions of the United States do not get any benefit from the deal Washington made with North Dakota because Washington has not got to them yet. When Washington eventually gets around to the other 3 regions, it will include the special deal it made with North Dakota but not until there is a deal for all the regions of the United States.

 

People who see the HCA are seeing it for all of Iraq when its not it only pertains to Kurdish region, to this point, and not to all of the other regions of Iraq. When all of the oil producing regions of Iraq have reached a deal then that deal will benefit every single citizen of Iraq. This deal is called the HCL or Iraqi's Oil and Gas Law.

 

The HCA is not, never has been nor will it ever be the HCL. Why?

 

Because when one claims the HCA is the HCL, that all of the oil produced in the Kurdish region will benefit all of Iraqis and the benefits of other regions that produces oil in Iraq will not go to the benefit of all Iraqi citizens. The HCL is in the current Iraqi Constitution. That particular article of the Iraqi Constitution states that oil produced in ALL regions, not the Kurdish region or a single region but ALL, of Iraq will go to benefit all citizens of Iraq. This isn't a tomato/tahmahto argument this is an apple and oranges argument. The caveat here is in the end, when the HCL becomes law and is implemented, that the oil produced in the Kurdish region will play a part in the overall benefit of all the Iraqi citizens. The HCA is due to the fact that the Kurdish region is semi autonomous but still belongs to Iraq. In order for Iraq to keep the region that is the largest producer of oil in Iraq under its auspices a deal had to be made in order for the Kurdish region's government to maintain an influx of currency in order to govern itself.

 

And that in a nutshell is what the HCA is - to keep the largest producer of oil in Iraq in the money while the whole of Iraq will eventually benefit from said production and sales of oil.

 

The HCL  will be a law that covers all production,sales of oil and governmental functions related to the processing and exportation of oil for the entire country of Iraq including creating a permanent Iraqi Oil Ministry to oversee the red tape. The current Oil Ministry of Iraq was created a long time ago and will be recreated when the full HCL law goes into effect. There is more to the HCL than just paying its citizens money from the Sales of Oil. It deals with a whole part of the Iraqi government that has not even been formed yet which is why it is a contentious issue in Iraq. Now some will say well Iraq already has an Oil Minister and an Oil Ministry. Yes it does but if you go back, its only temporary until the HCL law is passed. In addition the current Oil Ministry was not created by Sadam but it still runs under the rules Sadam created.

 

So there is more to the HCL than the sale of oil but that is what most people associate the HCL with. 

[Theseus]

This is why people who claim the HCA is the HCL are confused. Because eventually the proceeds of the sales of oil from the Kurdish region will go towards the benefit of all Iraqis.  However the HCA deals with only the part of the proceeds to be given to the semi-autonomous Kurdish government. Nothing more and nothing less.

[Theseus]

 I would love to hear from Adam on this battle going on. Obviously, they are not tra la la arm in arm and the agreement is not settled.  Adam has not really addressed this issue.  Or; maybe  anyone take on this.  Maybe fill in the blanks, what happened that the HCA was close to being HCL , congrats was in order, and oops, not even close.

 I guess I missed something.

A committee was formed to review the HCL draft at the beginning of 2015 (or end of 2014). There is a whole separate draft for the HCL law that was tabled by Maliki many times. The Iraqi Oil and Gas draft can be found in English in pdf form by doing a google search. In a previous post I have even linked the draft. When (and if) you read the draft you will understand that the HCA is only a precursor to getting the HCL law passed in Iraq. It's checking off a bullet point. The HCA was to hash out the part of the HCL law that related to the Kurds and only the Kurds because the Kurds are part of Iraq but they govern themselves. Then the HCL was to be passed with the tenets of the HCA included and voila! one step closer to there being an RV.

The HCA agreement is settled. Its the implementation of the settlement that is the difficult part. Saying something is not settled means the agreement was never completed when it was. The disagreement comes from the implementation of said agreement and is why there is consternation now over the HCA. Abadi himself said the agreement is done and the Kurds have said the agreement is done. They both agreed the HCA is not to change, to a point, and the HCA is to be bound by Iraqi law. Since Baghdad is not fulfilling their part of the HCA agreement, by not paying the Kurds what is owed to the Kurds, is why there is a strike on the production of oil in the largest oil producing region in Iraq at this time. Let's forget about HCL for a moment and look at this. If Baghdad cannot keep its word on paying the Kurds on an agreement set up between the two of them, how in the world do you think Baghdad would respond when it must pay its citizenry what they are owed from the proceeds of the exportation of oil? Look at it from our own governmental perspective. If Washinton can not keep its word to a particular state, do you think it would be able to keep the same agreement to its citizenry? I will answer for you, no and no. 

[Theseus]

"Hawrami said that if Baghdad that the ministry could not be granted the necessary funds, it has to allow them to find a better coordination between them and the oil companies"

Simple, make the currency worth more, give it purchasing power and problem solved. Obviously easier said then done :-(

Good morning Yota and thanks for all you do.

Even if you made the currency worth more, that doesn't take care of the issue of payment. Coordination deals with payment. Having the necessary funds is another issue entirely. If you don't have enough money in your checking account to cover the check you wrote, how do you honor the check. You transfer the necessary funds from another account you don't increase the value of the money you have on hand. Iraq has the necessary funds to honor the check. They did not allocate those funds to the correct account, in this case the ministirial account. This is a logistical issue due to lack of coordination to get the funds to the right place. Increasing the value will not solve this issue because even if you increased the value of the currency but don't have the amount to honor the check in the account, a dime changed to a dollar won't fix that because the value of the product also increases the same. What you are saying "just increase the value of the currency" is that magically the product's value remains the same. It doesn't. If the product cost 50 cents in today's currency and you increase the value of the currency, the product does not continue to be 50 cents. If this were the case candy bars would still be a nickel and gas would still be 15 cents a gallon.

[Palmtree1970]

Totally agree with you Theseus