Iraq is considering granting oil-producing provinces share of revenues
20-12-2014 02:04 PM
The Iraqi government announced that it is negotiating with the oil-producing provinces to develop a fair formula in the distribution of oil revenues, but observers warn of a dangerous step, which they say threatens to ignite conflicts between the provinces on the centers of power and administrative boundaries.
He said Iraqi Oil Minister Adel Abdul Mahdi, the Iraqi government is negotiating with provincial representatives oil producers, especially Basra, in search of a more equitable distribution of oil revenues. This came during a celebration over 5 years to sign an agreement with the companies BP and British PetroChina Chinese to revive the production of the Rumaila field in Basra province, which not less proven reserves of about 20 billion barrels. and as Chairman BP Iraq branch Michael Townshend returns obtained by Iraq from the field by about $ 180 billion over the past five years. He said that $ 75 billion of those revenues would not have been possible without the investment of $ 5 billion to develop the giant field.It produces Basra province, about 80 percent of Iraq's oil production, but did not see that the development of infrastructure mentioned in her house, destroyed by successive wars, which have long demanded access to a share of the oil produced from its territory returns. Iraq has suffered from a severe financial crisis due to falling oil prices and rising costs of the war against Daash, in addition to the rampant corruption in the joints of the state. The government is trying to increase oil exports at any price to cover its financial needs, has entered into an agreement with the Kurdistan region to export 550 thousand barrels of Kirkuk fields and fields of the region to end disputes with the government of Erbil. The International Monetary Fund estimates the price of a barrel of oil needed to balance revenues and expenditures in the Iraqi budget in the current year by about $ 109 a barrel at the time of moving the price of Brent crude at around $ 60 a barrel now. The government has taken the beginning of this year, a decision to allow allocation of five dollars instead of one dollar for each barrel to keep producing, but the decision has not been implemented due to lack of approval of the current year's budget. It warns observers from the seriousness of the decision, saying it threatens to divide Iraq because it makes the provinces are competing for influence centers and administrative boundaries. It also pays provincial non-producing claim the extraction of oil from their regions, to achieve a balanced growth between the provinces of Iraq, which threatens the cohesion of the national oil industry and hits and unity. It seems that Basra will not only benefit from the five dollars for every barrel, but will be prompted to participate active role in negotiating with foreign companies, and operation of a large number of sons work in companies. It also escalate demands to participate in all of the studies and plans that aim to develop the oil industry. Supports Basra 8 provinces oil producer in those demands. Analysts say that granting provinces percentage of oil revenues would increase the political, economic and social influence, through increasing its capacity to consumer and investment spending and funding for the implementation of development projects. It can enhance their ability to make independent decisions without Back to the central authorities in Baghdad. Observers fear get messy in the oil industry because the provincial activities need constant coordination between the provinces on Enterprise correlated.
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20-12-2014 02:04 PM
The Iraqi government announced that it is negotiating with the oil-producing provinces to develop a fair formula in the distribution of oil revenues, but observers warn of a dangerous step, which they say threatens to ignite conflicts between the provinces on the centers of power and administrative boundaries.
He said Iraqi Oil Minister Adel Abdul Mahdi, the Iraqi government is negotiating with provincial representatives oil producers, especially Basra, in search of a more equitable distribution of oil revenues. This came during a celebration over 5 years to sign an agreement with the companies BP and British PetroChina Chinese to revive the production of the Rumaila field in Basra province, which not less proven reserves of about 20 billion barrels. and as Chairman BP Iraq branch Michael Townshend returns obtained by Iraq from the field by about $ 180 billion over the past five years. He said that $ 75 billion of those revenues would not have been possible without the investment of $ 5 billion to develop the giant field.It produces Basra province, about 80 percent of Iraq's oil production, but did not see that the development of infrastructure mentioned in her house, destroyed by successive wars, which have long demanded access to a share of the oil produced from its territory returns. Iraq has suffered from a severe financial crisis due to falling oil prices and rising costs of the war against Daash, in addition to the rampant corruption in the joints of the state. The government is trying to increase oil exports at any price to cover its financial needs, has entered into an agreement with the Kurdistan region to export 550 thousand barrels of Kirkuk fields and fields of the region to end disputes with the government of Erbil. The International Monetary Fund estimates the price of a barrel of oil needed to balance revenues and expenditures in the Iraqi budget in the current year by about $ 109 a barrel at the time of moving the price of Brent crude at around $ 60 a barrel now. The government has taken the beginning of this year, a decision to allow allocation of five dollars instead of one dollar for each barrel to keep producing, but the decision has not been implemented due to lack of approval of the current year's budget. It warns observers from the seriousness of the decision, saying it threatens to divide Iraq because it makes the provinces are competing for influence centers and administrative boundaries. It also pays provincial non-producing claim the extraction of oil from their regions, to achieve a balanced growth between the provinces of Iraq, which threatens the cohesion of the national oil industry and hits and unity. It seems that Basra will not only benefit from the five dollars for every barrel, but will be prompted to participate active role in negotiating with foreign companies, and operation of a large number of sons work in companies. It also escalate demands to participate in all of the studies and plans that aim to develop the oil industry. Supports Basra 8 provinces oil producer in those demands. Analysts say that granting provinces percentage of oil revenues would increase the political, economic and social influence, through increasing its capacity to consumer and investment spending and funding for the implementation of development projects. It can enhance their ability to make independent decisions without Back to the central authorities in Baghdad. Observers fear get messy in the oil industry because the provincial activities need constant coordination between the provinces on Enterprise correlated.
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