Finance Launches Bonds Worth Two Trillion Dinars To Boost Investment And Provide Savings
Money and business Economy News – Baghdad The Ministry of Finance announced today, Wednesday, the launch of national bonds (first issue) for public subscription, with a total value of two trillion Iraqi dinars, for the period from February 10 to March 10, 2025.
The ministry said in a statement that the issuance of these bonds comes “as part of its plan to enhance local investment and provide savings tools for citizens and investors.”
According to the statement, the bonds are divided into two categories: The first bond is worth 500,000 dinars with an annual interest of 6%, and is due after two years, with interest paid every six months. The second bond is worth 1,000,000 dinars with an annual interest of 7.5%, and is due after four years, with interest paid every six months.
The statement indicated that the bonds are tradable on the Iraqi Stock Exchange, which provides a distinct investment opportunity for citizens and companies looking for stable financial instruments.
The bond offering comes based on Article 77 of the Federal General Budget Law No. (13) for the years 2023, 2024, and 2025, with the aim of supporting the national economy and enhancing confidence in the Iraqi financial system, according to the Finance Ministry statement. https://economy-news.net/content.php?id=52539
Parliamentary Finance Committee Discusses With US Delegation The File Of Contracts Of Foreign Oil Companies Operating In Kurdistan
Energy Economy News – Baghdad On Wednesday, the Finance Committee of the House of Representatives discussed with an American delegation the file of contracts of foreign oil companies operating in the Kurdistan Region of Iraq.
The media office of the head of the committee said in a statement, seen by “Al-Eqtisad News”, that “the head of the Finance Committee, Atwan Al-Atwani, received a delegation from the US Embassy headed by Julie Jones, the economic advisor to the embassy, and Chris Torres, advisor to the Iraqi Council of Representatives file in the political department.”
The statement added that “the meeting discussed the details of amending Article 12 of the Federal General Budget Law related to oil production and export, in addition to the financial challenges facing the country and preparations for preparing and approving the 2025 budget schedules.”
He continued, “The meeting discussed the file of contracts of foreign oil companies operating in the region, and some details related to oil production and export, within the framework of amending the general budget law that the Council of Representatives recently voted on, as a first step to resolve the oil disputes between Baghdad and Erbil and in line with the Iraqi constitution.”
Al-Atwani stressed, according to the statement, “the necessity for the region to commit to paying its financial dues to the central government in exchange for receiving its entitlements, including employee salaries and project financing, to end financial disputes,” renewing the Finance Committee’s keenness to “end all disputes and stop oil smuggling; due to its negative impact on the country’s financial stability.”
The statement explained that “the meeting witnessed a discussion of the timing of approving the budget schedules for the year 2025; with the aim of launching projects according to the specified timetable, with an emphasis on increasing non-oil revenues, reducing spending on non-essential projects, investing in service and educational projects, and supporting the private sector.”
https://economy-news.net/content.php?id=52551
IEA: Iraq Has 600,000 Barrels Of Oil Surplus Per Day
Energy Economy News – Baghdad The International Energy Agency revealed, on Wednesday, that Iraq has surplus capacity estimated at 600,000 barrels per day.
The agency stated, in a report reviewed by “Al-Eqtisad News”, that “the total spare capacity of OPEC amounts to about 5.3 million barrels per day, including 3.1 million barrels per day in the Kingdom of Saudi Arabia, 1.1 million barrels per day in the United Arab Emirates, 600 thousand barrels per day in Iraq, and 400 thousand barrels per day in Kuwait.”
The report added, “This total surplus is equivalent to about 5.1% of global oil demand, which the International Energy Agency expects to average about 104 million barrels per day in 2025.”
A few days ago, OPEC+, which includes OPEC, Russia and their allies, made production cuts, reducing output by about 6 million barrels per day in a series of steps since 2022 to support the market.
OPEC has reserves of oil called idle production that can be used in times of war or natural disasters.
https://economy-news.net/content.php?id=52533
Oil Prices Stabilize During Early Wednesday Trading
Economy | 05/02/2025 Mawazine News – Baghdad Oil prices steadied in early trade on Wednesday after volatile trading in the previous session as investors shrugged off the impact of Chinese tariffs on U.S. energy imports, although President Donald Trump’s renewed push to crack down on Iranian crude exports provided some support.
Markets move Brent crude futures were down 18 cents, or 0.24 percent, at $76.02 a barrel by 0210 GMT. US West Texas Intermediate crude lost 9 cents, or 0.12 percent, to $72.61, according to Reuters data.
WTI at one point fell 3 percent on Monday, its lowest since Dec. 31, after China announced tariffs on US imports of oil, liquefied natural gas and coal in retaliation for US tariffs on Chinese exports.
But prices rebounded after Trump reimposed his first-term “maximum pressure” campaign on Iran to curb its nuclear program, which has reduced Iranian crude exports to zero.
Analysts at Goldman Sachs said in a note on Tuesday that the impact of China’s retaliatory tariffs on energy prices would be limited “given that global supply and demand for these commodities will not be impacted by the Chinese tariffs.”
They added that both countries would be able to find alternative markets. Prices were also pressured by rising crude and fuel inventories in the United States, the world’s biggest oil consumer.
The American Petroleum Institute showed crude inventories rose by 5.03 million barrels in the week to Feb. 1. Ending January 31. It reported that gasoline stocks increased by 5.43 million barrels, and distillate stocks decreased by 6.98 million barrels. The official US government oil inventory data is scheduled to be issued on Wednesday evening. https://www.mawazin.net/Details.aspx?jimare=259375
BP Intends To Invest In The Oil Sector In Iraq
Economy | 05/02/2025 Mawazine News – Baghdad Reuters quoted a senior Iraqi oil official as saying that oil giant BP is expected to spend up to $25 billion over the life of a project to redevelop four oil fields in Kirkuk at a time when Baghdad is seeking to regain foreign investment.
If the deal is signed, a move the official expects to happen in the coming weeks, it would mark a major achievement for Iraq after years of production constrained by war. Iraq is OPEC’s second-largest oil producer after Saudi Arabia, with an average output of more than 4 million barrels per day.
BP will invest $20 billion to $25 billion under a profit-sharing agreement that will last for more than 25 years, the official said.
BP declined to comment on the Reuters report, but pointed to a statement last month saying BP and the Iraqi government had made significant progress toward reaching an agreement to support the operator of several Kirkuk oilfields in an integrated redevelopment project.
The potential BP deal would be the second major deal between Iraq and an international oil company in two years, following a deal in Basra with Total Energies, which was valued at around $27 billion.
BP’s deal would focus on rehabilitating facilities at four oilfields and developing natural gas to support Iraq’s domestic energy needs. The official said technical and economic negotiations were ongoing.
The deal is well underway, and final contracts could be signed in the first half of February, possibly by the end of this week.
The official said the deal would allow BP to increase crude oil production capacity from the four Kirkuk fields by 150,000 barrels per day, bringing total capacity to at least 450,000 barrels per day in two to three years. Current production is 300,000 barrels per day, according to three officials from the state-run National Oil Company. A profit-sharing model is under discussion that would allow BP to recover costs and start making a profit once production increases from current levels, the oil official said.
BP has a 50 percent stake in a joint venture that operates the giant Rumaila oil field in the south of the country, where it has been operating for a century. https://www.mawazin.net/Details.aspx?jimare=259381
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