Wednesday Afternoon Iraq Economy News Highlights 6-22-22
Wednesday Afternoon Iraq Economy News Highlights 6-22-22
Shell: Increased Gas Production In Iraq Depends On Three Oil Fields
Posted On2022-06-22 By Sotaliraq The Chairman of the Board of Directors of the Shell Group of Companies in Iraq and the UAE, Ali Al-Janabi, said that Shell's joint venture plans to obtain Iraqi gas to intensify its operations depend on three southern oil fields that reach their peak production level to allow the joint venture to process more associated gas.
He added in a press statement, that "under the contract with the Iraqi government, the Basra Gas Company is supposed to increase the current gas processing capacity from about 1 billion cubic feet per day to 2 billion cubic feet per day by processing gas from West Qurna 1 and Rumaila." Al-Zubayr is in southern Iraq.
Al-Janabi explained that "BGC (Basra Gas Company) is currently working to start operating two crews, each with a capacity of 200 million cubic feet per day by the second half of next year, two new crews out of five that are supposed to be built to reach 2 billion cubic feet. / day".
He continued, "We are conducting a number of studies at the moment to look at Crew 3, but a few of them are related to the type of infrastructure required, and a few are actually related to the primary production and primary production that is available today to support from those three fields."
BGC is a 25-year joint venture that includes the state-owned South Gas Company with a 51% stake, Shell with 44% and Mitsubishi Corp. with 5
Al-Janabi wondered, is it possible for the estimated oil fields to reach the agreed-upon peak level? And in what time frame? “If not, we will need to look at other potential areas, and this is part of the contract. There is no point in setting up the capacity today and leaving it idle.”
Oil Minister Ihsan Ismail said on June 19 that Iraq hopes to increase its oil production capacity to 8 million barrels per day in the year 2027. He previously gave various timetables for reaching this goal, which depends in part on agreements with international oil companies about Peak levels for the fields in which they work mainly in southern Iraq.
Iraq, with a production capacity of 5 million barrels per day, mainly produces associated gas from oil, and the Basrah Gas Company processes about 30% of the gas produced in Iraq.
However, Iraq remains the world's second largest gas flaring country after Russia, according to the World Bank. LINK
Sumo: We Received Positive Responses From European Companies To Import Iraqi Oil
Energy Economy News-Baghdad Today, Wednesday, the National Oil Marketing Company (SOMO) of the Ministry of Oil announced a movement to increase Iraqi oil sales in the European market, while indicating Iraq's ability to cover the needs of this market.
The director of the company, Alaa Khader Al-Yasiri, told the Iraqi News Agency that "SOMO has valid contracts for oil supply with European companies with a total quantity of about 600,000 barrels per day of Basra Medium, Basra Heavy and Kirkuk crude oil," noting that "these companies possess liquidation capacities. A total of about 60% of the total liquidation capacity in the continent of Europe.”
He added that "Sumo Company is constantly searching for available opportunities for marketing and approaching European companies that do not have contracts with them," noting that "it has recently received a number of positive responses from some companies that may lead to new contracts and lead to an increase in Iraqi oil sales in the European market." .
He pointed out that "Iraq is able to cover the European market," noting that "the current situation in this market requires companies to find suitable oils that are not subject to international sanctions, as Basra crude oil is considered one of those suitable oils."
He continued, "The acidic average of Basra oil can feed European refineries, despite the difference in some quality specifications from the oils consumed in those refineries currently, which to some extent constitutes an obstacle to European buyers' complete dependence on Iraqi oil."
He stressed, "In terms of the level of demand for crude oil in the European market, the total quantities received for this market of medium-sour oils reached 2.5 million barrels per day, and in light of the political tensions that afflict Europe, which may affect the supply of crude oil in the market."
The European Union may have a deficit of up to one million barrels per day of medium-sour crude oil, and this is an opportunity for Iraqi oil away from the Asian market, as it is the most promising market in the long term, which achieves a greater return for the Iraqi round and ensures the stability of demand for Iraqi oils.
Al-Yasiri pointed out that "Iraq is committed to the decisions of the Organization of Petroleum Exporting Countries, which always aims to strive for the stability of global oil markets and the balance of supply and demand," noting that "any quantities that are allocated to a specific market are within the agreed production ceiling."
And he indicated that "the Oil Marketing Company adopts a mechanism for the official price announced for all markets in selling quantities of oil, and this price is determined for each market and for each type of oil on a monthly basis according to the data and variables of the global oil markets, and this is a continuous context in which to work." https://economy-news.net/content.php?id=28605
Intelligence Agency: Thwarting Oil Theft Operations At 12 Sites In Different Governorates
Baghdad-conscious Today, Wednesday, the Federal Intelligence and Investigations Agency announced that it had thwarted oil theft operations at 12 locations in different governorates.
A statement by the agency, received by the Iraqi News Agency (INA), stated that "the Federal Intelligence and Investigation Agency continues its proactive operations to reduce cases of smuggling oil and its derivatives in various cities of the country, which has effectively contributed to undermining those operations, through a series of qualitative strikes directed by the agency in recent times. Last".
The statement added that "according to accurate intelligence information and in separate operations, a force from the intelligence agency was able to seize (12) oil sites that are used to trade and unofficially recycle oil and its derivatives," noting that "inside the sites, wheels and oil tanks of various sizes containing a product were found. Oil of unknown quantity and quality in the governorates of Baghdad, Kirkuk, Basra, Salah al-Din and Anbar.
He pointed out that "the intelligence agency was also able to seize (45) wheels with their drivers that were intended for illegal trading and recycling of oil and its derivatives within the governorates of Basra, Baghdad, Kirkuk, Salah al-Din, Nineveh, Diyala, Babylon and Holy Karbala," noting that "the seizures were dealt with fundamentally and handed over to the authorities." concerned and take the necessary measures to complete the investigation papers. https://www.ina.iq/159086--12-.html
Experts Put Limited Options In Front Of Iraq For Its Water Salvation
Posted On2022-06-22 By Sotaliraq Voice of America" radio warned of the narrow window available to Iraq to get out of its water crisis, after it became one of the most countries in the world suffering from drought, desertification and the shrinking of its water resources, while until the sixties of the last century, it was experiencing an abundance of water that turns into floods.
Voice of America” quoted environmental expert Azzam Allwash, who studies at the American University in Iraq (in Sulaymaniyah), as saying that the Iraqi farmer “was used to having an abundance of water, not a lack of water. The entire water management structure in Iraq was designed at a time when flooding was the norm. But by agreeing with Turkey on the operational bases of some dams, it is possible to actually stop using the artificial lakes that were established with the aim of controlling floods, and thus provide more water for Iraqi farmers and cities to use.”
Allwash, the founder of the environmental organization Nature Iraq, which helped revitalize the marshes in southern Iraq, explained that "the Tigris and Euphrates rivers flooded Iraq for centuries, which led to the renewal of its agricultural lands that were green, but the floods stopped in 1968 after the construction of dams. Its sources in Turkey are for the purposes of producing electricity,” noting that Iran has redirected the courses of the Tigris River because of its need for water as well.
Allwash warned that Iraq's population is constantly increasing, and therefore its water consumption is also increasing, in light of the challenges of climate change as well.
And the Iraqi Ministry of Water Resources concluded in a shocking report last December that the continuation of the phenomenon of water loss from the Tigris and Euphrates rivers, which are the backbone of fresh water resources in Iraq, could cause the country to turn into a “land without rivers by the year 2040.”
The report pointed out that the Iraqi Minister of Water, Mahdi al-Hamdani, indicated that he is still awaiting negotiations on water resources with his Turkish and Iranian counterparts, while the United Nations urges the three neighboring countries to reach understandings to share water in a fair manner.
The report stated that the United Nations agencies recently launched an appeal to work to protect Iraq from desertification and drought, but pointed out that analysts consider that there are obstacles related to the water concerns of Turkey and Iran in addition to the challenges of climate change.
The report quoted Tobias von Losau, a researcher at the Dutch Clingendael Institute for International Relations, as saying that the Shatt al-Arab waterway, where the Tigris and Euphrates meet, may “dry up sooner or later,” warning that there is only a “small window to prevent this from happening.”
Von Losau pointed out that the water projects in southeastern Turkey have had a particularly significant impact, as “the flow of water to Iraq has decreased by 30-40% since the end of the 1970s, and this trend continues until now, and that climate change and environmental degradation contribute to Accelerate the pace of this, explaining that Iraq will witness more droughts, water shortages, sandstorms and dust storms.
Von Losau said there are "limited options for Iraq," as it can act on local water management and push more aggressively for agrarian reform, crop selection and irrigation technology development.
The report concluded by noting that the United Nations lists Iraq among the top five countries most affected by climate change around the world, with increased salinity and loss of arable lands, lack of rain, long heat waves and dust storms LINK
The Minister Of Oil Sends An Urgent Telegram Regarding The Confirmation Of Contracts
Article at link https://baghdadtoday.news/ar/news/193023/A
Basra Gas Reveals To (Baghdad Today) The Expected Gas Export Revenues At The End Of This Year,
Article at link https://baghdadtoday.news/ar/news/193038/A
Baghdad Calls On The Governments Of All Countries Of The World To Facilitate Granting Entry Visas To Iraqi Traders
Shafaq News/ The head of the Baghdad Chamber of Commerce, Firas Al-Hamdani, called on Wednesday, the governments of all countries of the world to facilitate the procedures for granting entry visas to Iraqi traders in order to enhance trade exchange.
This came in his speech during his participation in the international economic conference held by the TRAPP Foundation in Turkey to support the global economy and ways to develop and enhance it "towards great and distinguished economic and commercial prospects."
During his speech at the international conference, Al-Hamdani said, "The Baghdad Chamber of Commerce has a major role in restoring economic confidence between Iraq, Turkey and the rest of the world, and has contributed and is still contributing to the development of commercial and economic relations, and they are determined to support trade exchange and overcome obstacles and difficulties facing the Iraqi merchant."
Al-Hamdani called on "the governments of all countries to facilitate the procedures for the entry of merchants into their countries and to grant them entry visas with a simplified work mechanism," calling on "the world's merchants to visit Iraq and invest in all economic, commercial and tourism fields." LINK
Parliamentary Finance: The Financial Distribution Of Food Security Was Negative And Far From Its Content
Politician Last Update 06/22/2022 | 11:01 AM Information / Baghdad..Member of Parliamentary Finance Committee Jamal Kougar confirmed, on Wednesday, that the financial distribution in the law was negative and far from the main content and objectives of the law, noting that what was allocated for food does not exceed 25% of the original amount.
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Cougar said in a statement to / the information /, that “the title of the emergency food support law is not consistent with its content, and what was allocated for food does not exceed 25% of the original amount,” noting that “what it included in paragraphs was negative and contrary to the compelling reasons that called for passing it to the intention of the legislation.”
He added that "the financial distribution in the law was allocated 8 trillion and 500 billion for the regions, while the budget for the year 2021 was 2 trillion, and the Finance Committee added another 2 trillion and became 4 trillion, and what the Minister of Finance requested from the allocation within the new law are 5 trillion."
Cougar explained, "Parliament allocated another amount, which became 8 trillion and 500 billion dinars," noting that "it would have been better to make large allocations for trade to buy wheat, barley and oils to secure a whole year, especially since the Russian-Ukrainian war is still going on, and all international reports confirm that the world is coming." on a global food crisis.” https://almaalomah.me/2022/06/22/604812/