KRG SEALS 61 ILLEGAL OIL REFINERIES

[Wiljor]

Iraq, April 30, 2017 

At least 61 oil refineries have ended their operations in the Kurdistan Region after new government regulations took effect last year, which have severely restricted private companies’ access to crude oil, according to a report from the Ministry of Natural Resources.

 

The closed refineries were running their operations without authorisation, the report said.

 

“The ministry has ordered to shut down all but 21 refineries which are currently needed to secure the domestic demand for fuel,” said lawmaker Dilshad Shaaban who is also a member of the parliament’s natural resources’ committee.

 

Shaaban said most of the refineries that had been shut down lacked many of the standard requirements to operate a modern refinery station.

 

According to the ministry’s report, there are still 129 unauthorised refineries in the Region which will also be adressed in the near future.

 

“Many of these refineries are associated with influential people and officials and the fact that they still receive crude oil supports this claim,” said Ghalib Muhammad who is the head of energy committee at the provincial council in Sulaimani.

 

The Kurdistan Regional Government (KRG) in November last year signed an agreement with the UK-based Ernst and Young, one of the largest professional and financial firms in the world, to audit the region’s oil and gas processes.

 

The government hopes new regulations will help increase transparency in the oil industry which has frequently been described by opposition parties as 'corrupted.”

 

“I have invested around $2 million in my refinery here, but we haven’t received any crude for the past two years,” said Pshtiwan Abdulqadir who joined the lucrative business in 2009.

 

“The private refinery installations around here have a value of nearly 1 billion but everything stands still and the owners have suffered great losses over the past year,” Abdulqadir said of a number of private oil refineries outside Erbil city.

rudaw

http://iraqdailyjournal.com/story-z15204817

[presence]

This is a great article that shows another level in which corruption is being monitored and re-distributed. The decrease in production output would normally have a positive impact in the supply and demand curve regarding the price of oil (and gas)  but it's  unknown what proportion of the numbers involved were legitimate or not. The auditing being done and that which is already completed will certainly put a stop to the 'old west ways' of theft throughout all of the oil fields. New flow monitors and tamper-proof meters are going to finally show what this country is capable of legitimately producing. Go RV!!!

[Rockymtnhi]

At current prices oil output can't even cover the budget.  Doesn't matter if oil doubles.  It wont pay the bills.  In order to rv they need to substantially reduce the currency supply.  Is this being done?  I hope so.  Would love to see the rv.  

[yusofsabri]

sounds like oil agreement is being implemented

[ggdog60]

Thanks, Wiljor

[tigergorzow]

Iraqi Govt Recommences Operation at Kirkuk's Old Oil Refineries

 

It has plans to construct three more

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Basnews English

01/05/2017 - 20:17

Iraq

 

 

 

ERBIL— The Iraqi government has already launched the operation at an old oil refinery in Kirkuk and is expected to develop two more refineries before operating them for provision of fuel for Kirkuk province.

BasNews has learned that Baghdad also intends to construct three more refineries.

Mohammed Khurshid, Kurdistan Democratic Party (KDP) chief in Kirkuk, told BasNews the new refineries will be constructed in Kirkuk while Baghdad is indebted to Kirkuk.

Since 2013 Baghdad has not provided Kirkuk with petro-dollar quota and has cut the budget and allowances of the province.

In exchange for selling a barrel of oil, the oil producing provinces will receive one dollar that has to be spent for the residents of the province.  

 

http://www.basnews.com/index.php/en/news/iraq/347102

[ChuckFinley]

Thanks Wiljor, interested to see how this plays out.  

[ChuckFinley]

17 hours ago, yusofsabri said:

sounds like oil agreement is being implemented

Sure does . No illegal wells.    ,

[Artitech]

Yes oil prices as of last Friday are more than the cost of production! If remember right, Iraq has their 2017 budget based on at least oil being $45.00 a barrel! JMHO 

[ChuckFinley]

1 hour ago, Artitech said:

Yes oil prices as of last Friday are more than the cost of production! If remember right, Iraq has their 2017 budget based on at least oil being $45.00 a barrel! JMHO 

I believe you are correct. It may have been adjusted. Mind is not as sharpe as it used to be.  

[Rockymtnhi]

No doubt some govt officials have been cashing in for themselves for years with their own outlaw refineries and wells.  Lord knows they skim enough money to afford to do that.  Shut em down and keep it away from the criminals in the govt who would steal it.  Then divert that oil and money to the govt to do some good for their people like building  sorely needed infrastructure and paving the way for more industry and jobs.  

 

[Wiljor]

Many more to be closed down in the future

Iraq, May 2, 2017  Kurdistan Regional Government (KRG) has 61 illegal oil refineries since the approval of new regulations last year, said the Ministry of Natural Resources. All the sealed refineries were unauthorized by the KRG, according to ministry’s statement which also revealed that there are 129 more refineries which will need to be closed as they are illegal as well. Many of the closed ones and the ones to be closed fall short of modern refinery operation standards, said Dilshad Shaaban, member of the parliamentary committee for natural resources. basnews http://iraqdailyjournal.com/story-z15215102

[Rockymtnhi]

Don't you know the govt officials have built these wells/refineries to line their pockets with the money they scimmed/stold   from the peoples trough.  They should be water boarded in public and their plunder returned to the public coffers.  

Edited May 3, 2017 by Rockymtnhi