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The OPEC + agreement is on the table of experts


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The OPEC + agreement is on the table of experts

Monday 23rd November 2020 81

The OPEC + agreement is on the table of experts

 
  Baghdad: Hussein Thahab - Shukran Al-Fatlawi
 


The Iraqi Alliance for Transparency in Extractive Industries organized the fourth economic forum to discuss the (OPEC Plus) agreement, its impact on oil revenues, and important economic axes with the participation of a large number of experts in the public and private sectors. The word of the alliance was delivered by Majid Abu Kallal and said: “Since the establishment of the alliance we have been We are working to develop transparency in all sectors, especially the oil industries,
 as the vision of the coalition stems from the optimal investment of extractive industries to achieve development and strengthen democracy.

He added that "the coalition has been a person for years, and there are problems that confuse the economic scene, including corruption and the lack of actual direction to achieve a multiplicity of resources. We expected the country to go through financial hardship in the future, but the Corona pandemic accelerated that."
 He pointed out that "the presence of experts in economic affairs in the forum comes to discuss the reality of the challenges facing the economy and work to convert them into job opportunities, as happens in developed economies."
Advisor to the Prime Minister Kazem al-Sahlani affirmed that “Iraq's joining the transparency initiative puts the country on the right track to invest its oil resources,” pointing out that “reliance on oil in managing Iraq is not correct and economic problems cannot be ignored, as the country has suffered from corruption and poor distribution of wealth What led to the presence of 12 percent of the souls of the country live in slums. ”
 Sahlani pointed out that "there are 6 thousand projects that have been suspended for years and need 136 trillion dinars to return them," stressing that "the private sector has a valuable economy task," indicating that "the white paper can be adopted as a basis for economic reform."
As for the oil expert, Falah al-Amiri, he said: “I do not find the oil agreement (OPEC Plus) positive, and the Iraqi negotiator must have a greater role in reducing the percentage of the reduction imposed on oil production, because the situation in Iraq is different from the countries of the world, as there are obligations with the companies of licensing tours. To which the government must pay whatever the percentage 
Reduction ”.
 He warned that "the global crisis continues and we will not get out of it until next year, which requires engineering public finances, especially since Iraq is unable to go to war." 
Price ”.
 The economic expert, Abd al-Rahman al-Mashhadani, said: “Reducing production by 1.61 million barrels carries a significant negative impact on the country, especially as the commitment has inflicted great losses on the country, which led to thinking about alternatives that achieve revenues that compensate for the lack of oil revenues.
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Economy News - Baghdad

The Parliamentary Finance Committee called on the International Financial Alliance to work on excluding Iraq from the OPEC Plus agreement due to the financial crisis that the country is currently experiencing, after the decline in oil prices.

The OPEC Plus agreement, signed between OPEC and non-OPEC producers, such as Russia and Azerbaijan, includes three stages, and currently in the second stage, which includes reducing 18% of the countries' production, and then the third stage, which includes a 14% reduction.

A member of the Parliamentary Finance Committee, Ahmed Al-Hajji, said in his speech to "Al-Eqtisad News", that the Parliamentary Finance Committee demanded through the international financial coalition that was formed to support Iraq, to approach OPEC and its members, with the exception of Iraq from the OPEC Plus agreement due to the financial crisis.

He added that Iraq has not yet invested in this issue, and approaches the concerned authorities and activates diplomacy, stressing that excluding Iraq will increase its financial revenues and contribute to solving the problem of salaries.

During the visit of Prime Minister Mustafa Al-Kazemi to London, an international financial alliance was formed, which includes the International Monetary Fund, the World Bank, the European Bank and the seven industrialized countries, in addition to the Ministry of Finance, the Central Bank and the Finance Committee from Iraq.

The head of the Sumo company, Alaa Al-Mousawi, said that the OPEC Plus agreement has an economic benefit, because instead of selling 3.5 million barrels per day at $ 17, he will sell 3 million barrels at $ 40.

He added that the Kurdistan region did not abide by the OPEC Plus agreement, and it is issued independently, and this is what affected Iraq in front of OPEC Plus, as it appeared that it was not committed to 600 thousand barrels per day.

He noted that Iraq is sending a message to OPEC, explaining to him that the Kurdistan region is exporting oil independently, far from SOMO.

Meanwhile, former Oil Minister Ibrahim Bahr al-Ulum said that Iraq would lose $ 21 billion due to its commitment to the two-year OPEC Plus agreement .

Al-Ulum added that Iraq will pay oil companies money for every barrel produced or not, and the Ministry of Oil will pay $ 750 million for the cost of extracting oil that we did not produce because of OPEC Plus .

He noted that reducing oil production will lead to a reduction in gas production associated with production, and will affect the production of gas supplied to gas stations and liquid gas that is used for cooking, which will lead to importing them from outside Iraq, and the Halfaya gas investment project and the expansion of Qurna gas and a number of other projects will stop. .

And science showed that Iraq's production is supposed to reach 5 million barrels per day during the year 2022, and it is possible that we will lose 10 billion dollars during the next two years, due to our commitment to OPEC's decision, which will lead to the suspension of most of the projects in addition to disrupting the national effort to develop national fields due to the inability to do so .

He noted that after the implementation of the OPEC Plus agreement, we will face a problem of returning the oil fields to their previous production, in addition to the difficulty of recovering the customers that we lost because of our commitment to OPEC Plus .

He stressed that Iraq's commitment to the OPEC Plus agreement curbed investment in its oil fields and this will lead to problems in the future, indicating that the previous government was supposed to work to exclude Iraq from OPEC Plus’s commitment through bilateral negotiations with influential countries in OPEC .

He explained that Iraq made a mistake twice, the first in the government of Haider al-Abadi and the second with the government of Adel Abdul Mahdi, because Iraq's shares for 26 years were invested by several OPEC countries, especially after the economic blockade on Iraq.

 

 

 

 
Number of observations 78   Date of addendum 11/24/2020
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