Iraq economy to see growth as stability returns to country

[6ly410]

https://www.verdict.co.uk/iraq-economy-stability-growth/

 

Reaching a speedy conclusion on negotiations to form a new government is the top priority for a country emerging from years of instability.

After a tough year of recession, growth is set to return to Iraq’s economy. Backed by increased oil revenues thanks to the rise in global oil prices, and in spite of the stalling of talks with the Kurdish Regional Government (KRG) in Erbil over restarting the oil export pipeline from Kirkuk to Turkey, Iraq’s economy has finally turned the corner in 2018.

The conclusive hobbling of the Islamic State in Iraq and Syria (ISIS) has allowed Baghdad to get back to the business of repairing its damaged infrastructure, including another pipeline from Kirkuk to refineries and power plants in the south, and drawing up clear reconstruction plans.

Reconstruction plans a sign of stability in Iraq economy

Baghdad’s launch in May of a $35bn reconstruction plan for areas previously under the control of Isis, supported by the EU and UN, signalled that the gears of government are once again turning in the right direction.

Indeed, it is a sign of the country’s new-found relative stability that the biggest source of disruption this year, both actual and potential, has been the ongoing parliamentary election.

Both the outcome, with the ascendance as kingmaker of populist Shia cleric Muqtada al-Sadr, and the prospect of protracted negotiations on the formation of the government have the potential to disrupt or at least delay the execution of important legislation.

Iraq economy growth in spite of political wrangling

The implementation of a vital new petroleum law passed in March that sets the scene for better relations between the Iraqi government and international oil companies could well be among the casualties of prolonged political wrangling.

The stabilisation of Iraq’s economy and public finances are nevertheless a source of great relief to investors and prospective contractors, lending weight to the supposition that Iraq will ultimately deliver on its pipeline of projects across the oil and gas, power, transport and construction sectors.

Edited July 3, 2018 by 6ly410

[6ly410]

14 minutes ago, 6ly410 said:

The implementation of a vital new petroleum law passed in March that sets the scene for better relations between the Iraqi government and international oil companies 

mhh

Edited July 3, 2018 by 6ly410

[6ly410]

[js214]

15 minutes ago, 6ly410 said:

HCL?  Are they pussyfooting the news and chopping it to puree?   the more things change, the more they stink 

[6ly410]

I find this really interesting... thoughts anyone?

[Christoph]

It's time to get Iraq fully back to business. The push is already coming, they just need to get on with it and hopefully this caretaker gov't can make some headway. 

 

[miquel]

10 minutes ago, Christoph said:

It's time to get Iraq fully back to business. The push is already coming, they just need to get on with it and hopefully this caretaker gov't can make some headway. 

 

My spidey senses have always told me, once the HCL is signed into law, we are off to the races. The rest is hocus pocus smoke and mirrors, drama queens and political waste product.

[6ly410]

Petroleum law..

[ChuckFinley]

Two things i like - Stability and HCL.

[6ly410]

Alright.. now this is some exciting news... NEW petroleum law passed in March.......now considering all the banking activity......champagne tonight 🥂 

[steveh12]

WTF 🙄

[CSM (R) Thack]

34 minutes ago, miquel said:

My spidey senses have always told me, once the HCL is signed into law, we are off to the races. The rest is hocus pocus smoke and mirrors, drama queens and political waste product.

 

32 minutes ago, 6ly410 said:

Petroleum law..

 

23 minutes ago, ChuckFinley said:

Two things i like - Stability and HCL.

👍👍🤞🤞sounds good!

[Pitcher]

Throw in some ice cream and you got the perfect trifecta for me Chuck.  

 

Hope you you have a great 4th with your family!!🍦

[js214]

1 hour ago, 6ly410 said:

I find this really interesting... thoughts anyone?

Really would like to see Adams take on this .. is this saying they are one and the same ? Passed or just framework laid out .. 

[js214]

49 minutes ago, ChuckFinley said:

Two things i like - Stability and HCL.

and cold hard cash without champagne splashing

[3n1]

1 hour ago, 6ly410 said:

I find this really interesting... thoughts anyone?

 

 

1 hour ago, 6ly410 said:

1 hour ago, 6ly410 said:

The implementation of a vital new petroleum law passed in March that sets the scene for better relations between the Iraqi government and international oil companies 

 

I remember them forming and passing the " national oil company " back in march , seemingly nothing was much different on the surface so we kept on the path ...

 

The Iraqi parliament voted March 5 on the National Oil Company draft law, which regulates oil production and exports and fairly distributes its revenues to the different regions of Iraq.

The clauses of the law stipulate that a percentage of oil imports be divided to Iraqis residing in the country as well as the Kurds in Iraq's Kurdistan Region if authorities in the region agree on delivering the oil production from their fields to the Oil Marketing Company (SOMO).

Historically, the law forming the Iraq National Oil Company was first issued in 1964 in order to develop oil production from exploration and drilling for oil and natural hydrocarbons to the manufacturing of products. Oil was nationalized in 1972, and foreign company investing was excluded. In April 1987, Iraq decided to merge the company with the Ministry of Oil. SOMO has continued to run the oil transfer and sales operations since its founding in 1998.

On March 5, Iraqi Minister of Oil Jabbar al-Luaibi described the vote on the draft law as “a historic decision.” In fact, according to oil expert and general director of the Iraqi Oil Ministry Hamza al-Jawahiri, who participated in drafting the law, “It will allow Iraq to develop fields, refineries and production plants through the efforts of local companies owned by the state. This would guarantee full sovereignty over the wealth of resources and give Iraq independence from relying on the services of foreign companies.”

On the administrative and organizational levels, Jawahiri said, “The decision will reduce the burdens imposed on the Ministry of Oil, especially in terms of extraction projects that have previously drained the ministry’s efforts. This is why it was necessary to boost the work of the ministry by bringing back the National Oil Company, which was suspended under the administration of late President Saddam Hussein.”

Jawahiri pointed out another major benefit of the project. “The ministry and SOMO will not coincide with the oil company, which will independently exercise its work. So when the company faces obstacles in times of crises and conflicts like freezing its movable and immovable assets through international judicial provisions, the ministry and SOMO would not be affected. This is important since SOMO’s marketing is vital for Iraq’s economy and must be kept far from the issues of the national company," he said.

When it comes to the expected benefits from passing the draft law for the company, member of the parliamentarian oil and energy committee Zaher al-Abadi told Al-Monitor, “The draft law will place the oil production from extraction to exports and manufacturing in Iraqi hands, provided that the company is run from a professional and modern perspective.” Abadi added, “The Iraqi staff is capable of achieving that after having been marginalized since 2003 when foreign companies received all the opportunities.”

Abadi confirmed that the project "will be an achievement in terms of improving income per capita. The Iraqi people will have a 10% share of the oil revenue.” He said that citizens' shares will be placed in a bank account. But Jawahiri does not believe this will benefit Iraqi citizens; he thinks that “the decision to guarantee the citizen’s share is nothing but a political and electoral campaign. By doing so, the parliament is being reckless with funds because it is making the company responsible for public funds, which is actually one of the sovereign tasks of the ministries.”

Jawahiri justifies his point of view by asking, “In what ways would granting citizens a share with a value that at best would barely reach $50 per year help, knowing that this would lead to reducing the capital needed for the company to invest in developing its techniques and work?”

He also criticized the company’s suggestion when it comes to the partnership with Iraqi Kurdistan. He said, “It’s strange that the project has completely ignored the issue of oil in the region or the way the company would be handling former and current oil contracts signed by the region. It is as if the region is not part of Iraq, which conflicts with the constitution.” He pointed out that “the details regarding the oil contracts of the region and the exploration and drilling operations should be clearly stated in the law.” According to Jawahiri, this probably explains the “reason why the Kurdish components voted for the establishment of the company.”

Jawahiri said that any possible amendment to the law that would put Iraqi Kurdistan outside the scope of the company’s work would "beat the point of the project to control all of Iraq’s oil.”

Ministry of Oil spokesman Assem Jihad told Al-Monitor that the national company is "independent and has a separate administrative board; therefore, it is not involved in the administrative routine and political disputes. The ministry’s task is planning and follow-up.”

Jihad added, “The project allows [the people to benefit] from the Iraqi experience and [provides] jobs for the unemployed.” He remarked upon the project's "importance in the oil market to improve and [rise] up to the level of international refineries, and to attract techniques and advanced excavation and production methods."

The company’s project must be kept far from political, sectarian and national disputes, and it must enjoy complete independence that would allow it to occupy an advanced position among big international companies. Apart from the company’s economic importance, the project also has a moral value. Iraq, which is fifth in global oil reserves, is in dire need of a national company that has high technical and administrative capacities and can stay abreast of developments and techniques, away from the government’s routine — just like Saudi Aramco, for instance.

https://www.al-monitor.com/pulse/originals/2018/03/iraq-national-oil-company-economy.html

[ChuckFinley]

51 minutes ago, Pitcher said:

Throw in some ice cream and you got the perfect trifecta for me Chuck.  

 

Hope you you have a great 4th with your family!!🍦

Done deal my friend. 

[10 YEARS LATER]

Alright, I'm probably off base here; Doesn't the above article and quite a read; ( much appreciated 3n1 ) with the amount of info contained therein, give you the impression this should satisfy their HCL requirements ? What am I missing here ? 

Edited July 4, 2018 by 10 YEARS LATER

[3n1]

57 minutes ago, 10 YEARS LATER said:

What am I missing here ? 

 

IDK man , it's like trying to view it all thru a kaleidoscope, i liked the forming of the national oil company back in march especially the talk of oil revenue percentages to the citizens thought it may have been movement most were waiting on and it may have been its just imo iraq needed everything and years were squandered and wasted with maliki's dictatorship and others bent on destroying the fledgling iraqi form of democracy its way more than i can take in and comprehend thats for sure, most of the time i'm just trying to stay rational and managing / liv'in life we're all simply following along to wherever this winds up , one thing's for sure the horses are still on the track ...... cheers and all the best       

[navira]

I dont follow the hcl...it has nothing to do with the rv...it never will be. 

[ChuckFinley]

10 hours ago, CSM (R) Thackrey said:

 

 

👍👍🤞🤞sounds good!

Thanks CSM.  

[ChuckFinley]

9 hours ago, js214 said:

and cold hard cash without champagne splashing

Hmmmmmm - Yes 

[10 YEARS LATER]

8 hours ago, 3n1 said:

 

IDK man , it's like trying to view it all thru a kaleidoscope, i liked the forming of the national oil company back in march especially the talk of oil revenue percentages to the citizens thought it may have been movement most were waiting on and it may have been its just imo iraq needed everything and years were squandered and wasted with maliki's dictatorship and others bent on destroying the fledgling iraqi form of democracy its way more than i can take in and comprehend thats for sure, most of the time i'm just trying to stay rational and managing / liv'in life we're all simply following along to wherever this winds up , one thing's for sure the horses are still on the track ...... cheers and all the best       

 

Youve summed up IMO the way many of us feel 3n1. Well, here’s to the END of the Horse Race 🐎-“Soon “.  Enjoy the 4th and thank you for your thoughts on this subject.

[6ly410]

...let’s go rate change 

Edited July 4, 2018 by 6ly410

[Laid Back]

3in1, thanks for posting "the national oil company"........ Could this be the HCL with a different name?

 

The clauses of the law stipulate that a percentage of oil imports be divided to Iraqis residing in the country as well as the Kurds in Iraq's Kurdistan Region if authorities in the region agree on delivering the oil production from their fields to the Oil Marketing Company (SOMO).

 

 

Abadi confirmed that the project "will be an achievement in terms of improving income per capita. The Iraqi people will have a 10% share of the oil revenue.” 

 

Go national oil company

Go profit sharing

Go RV