Bondlady’s Corner – Iraq Economic News and Points to Ponder Thursday Afternoon 3-14-24


Iraq Economic News and Points to Ponder Thursday Afternoon 3-14-24

Tlm724 Administrator Bondlady’s Corner

An Independent Representative Stresses The Need To Legislate The Oil And Gas Law

Information/Baghdad…  Member of the Parliamentary Oil and Gas Committee, Independent Representative Nazem Al-Shibli, stressed today, Wednesday, the necessity of passing the oil and gas law. Al-Shibli told Al-Maalouma,

 “The oil and gas law is the only solution to solve the outstanding problems between the federal government and the Kurdistan region, and its legislation will resolve all disputes between the two parties.”

 He added, “The House of Representatives has completed all sections of the law,  but the government has amendments and comments on some paragraphs of the prepared law.”  He pointed out  “the difficulty of resolving the problems with the region without the oil and gas law,” noting that  “11 amendments were made to the law.”

Since the first session of the Iraqi Council of Representatives, in 2005, the draft oil and gas law has remained locked away, as disagreements prevent its approval in its final form.

 After 18 years, he announced the formation of a committee to develop “a draft of the oil and gas law and present it to the government and the House of Representatives, according to what MP Firas Al-Muslimaoui revealed.  The representative stressed that “there is a real will in the House of Representatives to legislate the law.

Iraq exports an average of 3.3 million barrels of crude oil per day, and black gold constitutes more than 90 percent of the Iraqi treasury’s resources.”نائب-مستقل-يشدد-على-ضرورة-تشريع-قانون-النفط-والغاز

The oil and gas law collides with disputes between the central and regional governments

Information/Report:  There is still disagreement between Baghdad and Erbil over the oil file, which has remained an unresolved issue for more than two decades.

 If the oil and gas law is passed, it will   spark investments in the energy sector and   enhance revenues for the public treasury.

A stable national road map for the oil sector will also be developed,  attracting investments in oil and gas projects and  establishing a unified oil policy, allowing Iraq to effectively benefit from its hydrocarbon potential, including in the Kurdistan region. 

Previous parliaments had passed laws that address specific aspects of the oil industry, including the      Crude Oil Refining Investment Law No. (64) of 2007, the   Anti-Smuggling of Oil and Its Derivatives Law No. (41) of 2008, and the  National Oil Company Law No. (4) for the year 2018.

Those who follow attempts to pass the law will find that the real and main reason for obstructing the passage of the law is related to political differences between Baghdad and Erbil.

 A member of the Oil and Gas Committee, Bassem Ngemesh, confirmed this disagreement, and believed that these disagreements stand in the way of any attempt to pass the law under the dome of Parliament and obstruct the legislation of the strategic law. In an interview with Al-Maalouma, Naghimish said,

 “The law awaits understandings between Baghdad and Erbil to legislate the oil and gas law under the dome of the House of Representatives,” noting that  “passing the oil and gas law in the House of Representatives needs political consensus, which is what hinders voting on it until the moment.”

He explained that  “the law was transferred many times during previous parliamentary sessions and was not included in the current parliamentary laws and legislation.”  He pointed out, “The oil and gas law is still a matter of controversy and disagreement among political parties.”

 For his part, a member of the Parliamentary Oil and Gas Committee, Representative Adnan Al-Jabri, confirmed that the issue of approving the oil and gas law is still a prisoner of the disputes and the Kurdistan region’s oil export crisis. Al-Jabri told Al-Maalouma,

  “The law represents the management of oil wealth in general for the country and not just for the Kurdistan region, and it will include adding articles that serve the areas near the oil fields.”

 The Kurdish parties continue to obstruct the government in approving the oil and gas law, which a vote on within the corridors of Parliament has become a must, in order to end the violations and thefts carried out by the Kurdistan Regional Government in the oil smuggling file.

 In addition, Firas Al-Muslimaoui, representative of the State of Law parliamentary bloc, revealed the laws planned to be legislated in Parliament in the coming period. Al-Muslimaoui said,

  The priority of the Presidency of Parliament and the House of Representatives is to  legislate the laws sent by the government, and in the  second stage come the proposals of laws and committees.” He added, “Among the important laws that Parliament intends to legislate after its draft arrives is the oil and gas law,” stressing that  “there is a parliamentary and governmental will to legislate it in a way that preserves justice in the distribution of wealth.”

 The Oil and Gas Law in Iraq, which has been awaiting legislation in Parliament since 2005, stipulates that responsibility for managing the country’s oil fields must be entrusted to a national oil company, and  supervised by a federal council specialized in this subject. Ended / 25 ADقانون-النفط-والغاز-يصطدم-بالخلافات-بين-حكومتي-المركز-والاقلي

Experts Call For Investing Surplus Financial Revenues In Sustainable Development Projects

 Economical 03/14/2024   Baghdad: Hussein Thaghb Al-Tamimi  Specialists and economic experts unanimously agreed on the importance of investments witnessed in the oil and gas sector,

provided that they achieve integration with other sectors that need the surplus funds that come into the country as a result of exporting crude oil to global markets, where

the surplus financial revenues can be used in projects. Economic development that achieves sustainable development for Iraq and seriously multiplies its financial resources.

Economic expert Salwan Al-Nouri confirmed that investment in the oil and gas sector represents an important step on the path to improving economic performance, as it provides additional financial revenue that can be used in development projects in all regions of Iraq, where natural resources are available, and we can also create successful local industries from it. The surplus financial revenues received by the country. 

Al-Nouri pointed out thatany new investment represents an  expansion in production, an  increase in financial revenue, and a   decrease in foreign imports.

 Here, we can have bilateral partnerships with countries around the world and regional countries to create advanced projects that have a positive impact on the national economy, pointing to the possibility of cooperation with countries from which we import.

 Among them, we work investment partnerships for new projects inside Iraq, and thus the benefit is shared and long-term.  He pointed out that “the international reality and the events it is witnessing have a clear impact on the global economy, requiring us to build ideal relations with most countries importing crude oil, and from here we must begin building our relations with the oil markets, especially since Iraq is looking forward to expanding its production base.” And exploration.  

Economic affairs expert Aqeel Karam Al Hamad stressed that the expansion of oil and gas investment is extremely important, and we must have a clear vision to benefit from global experiences in this field, pointing to the necessity of having transformational industries to benefit from the oil and gas wealth available in the country.

Al Hamad pointed out that the expansion of oil and gas investment can activate other sectors with a sustainable development impact,

which requires us to   take a serious approach to developing the oil and gas industries, and     investing the financial surplus in achieving sustainable development for the country that Al Bari has bestowed many blessings that can be a center. He said that the country is in dire need of expansion in economic projects, and here local and international efforts can be invested to achieve progress, and

there is no harm in seeking assistance from international planning centers that draw the features of the sustainable development that the country seeks.

He explained that  “Iraq is one of the oil countries that has its weight in the international oil market, which enhances its position among countries that wish to strengthen their relations with Iraq.

The Ministry of Oil had announced an expected measure within next year’s plan 2024, which will contribute to resolving the gas crisis and reducing its imports, while It confirmed the existence of government interest and direction to increase gas production.

It is noteworthy that the advisor to the Ministry of Oil, Abdul Baqi Khalaf, said that “the government and the Ministry of Oil are interested in gas projects due to their

     importance in the energy industry in Iraq, and      reducing emissions at the same time,” pointing out that “according to the ministry’s plans drawn up next year 2024, no less than About 700 million cubic feet of gas in the projects of the second phase of Basra, NGL, the Halfaya 300 project, and the Nasiriyah project.  Khalaf explained,

“This quantity is equivalent to more than half of the gas currently released,” stressing that  “this will contribute to solving the gas crisis, and  it constitutes more than half of Iraq’s gas imports.”

He pointed out that the sixth round of gas projects and the government’s interest in the Mansouriya and Okaz fields reflect the state’s interest in increasing our gas production to reduce the demand gap for electricity that currently exists in the country, and thus things are moving towards increasing our gas capacity.

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Provoking Points to Ponder on Decisions 

Necessity relieves us from the embarrassment of choice.  – Vauvenargues

When you have to make a choice and don’t make it, that is in itself a choice.  – William James

A man without decision can never be said to belong to himself; he is as a wave of the sea, or a feather in the air which every breeze blows about.  – John Foster

Nothing is so exhausting as indecision, and nothing is so futile.  – Bertrand Russell

Not to decide is to decide.  – Harvey Cox

Decision is a sharp knife that cuts clean and straight; indecision, a dull one that hacks and tears and leaves ragged edges behind it.  – Gordon Graham