Iraq Economic News and Points To Ponder Saturday Morning 8-30-25
The Return Of American Companies To Iraq: Guarantees Of Transparency And Security Balance The Risks Of Corruption And Chinese Influence.
Baghdad Today – Baghdad Economic expert Nabil Al-Marsoumi commented on Friday (August 29, 2025) on the return of giant American companies to work in Iraq after years of withdrawal, considering it a step that indicates an improvement in the investment climate.
Al-Marsoumi said in a post on his Facebook account, followed by Baghdad Today, that the return of the American company "Chevron" from the Nasiriyah field in Dhi Qar Governorate comes after a previous wave of withdrawals by a number of major foreign companies.
These withdrawals were due to the growing risks of corruption, a lack of experience in public administration, a weak ability to absorb the flow of aid funds, in addition to sectarian issues and a lack of political will to combat corruption.
Al-Marsoumi explained that massive embezzlement, fraudulent procurement, money laundering, oil smuggling, and widespread bureaucratic bribery have led to a flight of investment and the country's position at the bottom of international corruption rankings, hindering effective state-building and service delivery.
On the other hand, the return of American companies is linked to several factors, most notably the US desire to counterbalance China's massive influence in the Iraqi oil and gas sector.
The guarantees provided by the Iraqi government regarding transparency, contract stability, and
security also served as an important incentive. According to Al-Marsoumi,
Chevron's return came after Baghdad agreed to three conditions presented by the American companies:
"consistency," which guarantees the completion of the facilities associated with the projects;
"security," which includes employee safety and sound business and legal practices; and
"procedural facilitation," which ensures the deal remains intact regardless of any future government changes.
The new contract stipulates that the company will receive a share of the project's revenues
after production begins, reflecting a new model that Iraq is seeking to adopt to attract major investors. https://baghdadtoday.news/282045-.html
Achieving Self-Sufficiency In Refined Gasoline.. Oil: Opening Of The (FCC) Unit In The Basra Refinery Soon.
Yesterday, 13:44 Baghdad - INA - Hassan Al-Fawaz The Ministry of Oil revealed on Friday the
imminent opening of the FCC unit at the Basra refinery, confirming that Iraq will achieve self-sufficiency in refined gasoline, while hinting at the possibility of reducing petroleum product prices.
The Undersecretary of the Ministry of Oil for Distribution Affairs, Ali Maaraj, told the Iraqi News Agency (INA):
"The oil refineries have currently reached a state of sufficiency in kerosene and gas oil," noting that
"the coming days will witness the opening of the (FCC) unit in the Basra refinery, and Iraq will reach the stage of self-sufficiency in improved gasoline and export of gas oil."
He pointed out that "Iraq currently imports quantities of gasoline, and it is certain that when national refineries achieve self-sufficiency, this will be reflected in the prices of petroleum products andy | 09:07 - 08/29/2025 Mawazine News - Follow-up Oil prices fell, heading towards a monthly loss in August, amid concerns about a global supply glut, along with escalating geopolitical tensions, led by US moves to end the war in Ukraine.
Brent crude for November delivery traded near $68 a barrel, losing about 5% of its value during the month, while West Texas Intermediate crude fell towards $64.
This decline is driven by investor concerns that global supplies will exceed demand levels in the coming quarters, which could lead to a resurgence of oil inventories.
https://www.mawazin.net/Details.aspx?jimare=265888
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