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Iraq is heading for the issuance of treasury bonds worth $ 12 billion to reassure foreign oil companies
3/3/2015
BAGHDAD / Ibrahim Saleh / Anatolia:
Iraqi Oil Minister Adel Abdul-Mahdi, said that his ministry will ask the government to issue treasury bonds (Treasury) worth $ 12 billion broadcast reassuring foreign oil companies that will reach their dues by the end of this year to 27 billion dollars.
He said Finance Minister Hoshyar Zebari on Thursday, said that the Iraqi Central Bank's foreign exchange reserves fell to reach $ 68 billion is due to the financial crisis plaguing the country, which means the decline of about $ 9.7 billion from the level at the end of 2013, a decline of 12.5%. He said Abdul-Mahdi, in a press statement, obtained by Anatolia, a copy of it, that monitor the budget to repay foreign oil companies hardly covers dues accumulated from last year 2014 of up to $ 9 billion, indicating that the problems that emerged after the formation of the government Tmthelta accumulation of dues companies and the collapse of oil prices. He predicted the IMF last month, that the deficit in the Iraqi budget is increasing to 6.1% in the current year, up from 4.9% last year.
He said Iraq's oil minister, that the benefits of foreign companies during 2014 have accumulated about $ 9 billion, indicating that the dues for 2015 estimated at up to $ 4.5 billion for each chapter of the four seasons of the year, or about $ 18 billion.
And this recognizes the Iraqi Oil Ministry, receivables accumulated, while said last January, it is the city for foreign companies "entrepreneurship" (which holds the development and maintenance of oil fields in the country) operations of any sums of money, and that the relationship with those good companies and trusting, what led to the work programs and budgets for the year 2015, according to the comprehensive development plans for all oil fields in the country without any reduction, noting that the amounts actually received by these companies (arrears), had been agreed upon receipt of equivalent crude oil.
Iraq relies on oil imports to finance 95% of the budget, the country produces about 2.5 million barrels per day, with expectations to increase production to 4 million barrels per day.
He denied Abdul-Mahdi, according to the statement, allegations talked about the ministry negotiate agreements to convert development of oil fields in previous years to decades or post it to negotiate the granting of new oil patches on the basis of participation contracts.
Since 2009, Iraq entered into service with global energy companies to develop oil fields in decades after years of stagnation due to the embargo and war.
He said Iraq's oil minister, said that the talk about joint ventures did not exceed the founding companies of the government stake in partnership with national companies or foreign in all business related to the development and marketing of oil, citing the example of a Basra Gas Company, where government partner retains 51% of the shares of the company and maintains Shell and Mitsubishi to 49% of the shares.
The Iraqi government relies on oil contracts to raise the country's output of crude to around 8 million barrels per day in the next few years.
Said Abdul-Mahdi, according to the statement, that he was making some adjustments to some of the companies decades before the formation of the current government, where the peak of production and the proportion of government partner to 5% instead of 25% reduced rates and extended the time periods for decades.
He added that the ministry negotiation companies are now in the direction of the return of the government partner's share of between 20 to 25%, as well as to discuss the production programs and rates peak periods execution of contracts, etc., not to mention improve motivation among companies on the one hand, and reduce the financial burden on the state of the other.
The work in Iraq is currently about 17 global investment company and from different nationalities (American, British, Italian, Russian, Malaysian and Chinese) to develop producing oil fields and explored, and that under the contracts in the first licensing rounds and the second, third, fourth, and is obliged to invest their money to raise production capacity, that the government is committed to to pay 50% of the funds disbursed annually, supplemented by earnings at a rate of $ 1.5 for each extra barrel.
And spent companies during the past two years, about $ 43 billion, the government must pay $ 21.5 billion, in addition to 5.5 billion profit, so the total owed $ 27 billion, and these investments have contributed to an increase of production of about one million barrels, was built huge facilities enjoy all luxury items where lives of thousands of foreign experts.
He said Iraq's oil minister, according to the statement, that there are proposals to link corporate profitability by oil prices and not just a lump sum for each additional barrel, and so are their profitability with high oil prices and fall with the price declines, A second proposal, linking profitability by reducing costs to prevent the accumulation of dues to companies.
It is expected that international oil companies contracting continue to implement their investment plans to invest about $ 87 billion until 2016, that is to invest $ 27 billion in the current year and 60 billion next year.
The total investment by international oil companies in Iraq has reached $ 17 billion in 2011 and 2012, the government paid them nearly ten billion over the amounts of oil, and thus the total investment over the period of six years (2011 2016) about $ 147 billion.
And has made Iraq's oil exports rose slightly last February to a record 2.597 million barrels per day compared to the export of 2,560 last January.
Iraq seeks to raise its oil exports by adding 550 thousand barrels per day after the recent agreement between the central government and the region of northern Iraq.
Iraq is facing an economic crisis that forced him to reduce the size of the financial budget as a result of lower oil prices to below $ 50 a barrel and start a policy of austerity, while the Ministry of Finance announced last month that it would increase taxes on some of the services provided.
Oil prices have lost more than 50% of its value since the middle of 2014 until the end of January last, with prices close to the lowest level in 6 years.
Iraqi Council of Representatives approved the end of last month for the 2015 budget of the country after reducing expenses by about 4 trillion Iraqi dinars ($ 3.43 billion) to reach 119 trillion Iraqi dinars ($ 102 billion) and a deficit of 25 trillion dinars ($ 21.4 billion).
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3/3/2015
BAGHDAD / Ibrahim Saleh / Anatolia:
Iraqi Oil Minister Adel Abdul-Mahdi, said that his ministry will ask the government to issue treasury bonds (Treasury) worth $ 12 billion broadcast reassuring foreign oil companies that will reach their dues by the end of this year to 27 billion dollars.
He said Finance Minister Hoshyar Zebari on Thursday, said that the Iraqi Central Bank's foreign exchange reserves fell to reach $ 68 billion is due to the financial crisis plaguing the country, which means the decline of about $ 9.7 billion from the level at the end of 2013, a decline of 12.5%. He said Abdul-Mahdi, in a press statement, obtained by Anatolia, a copy of it, that monitor the budget to repay foreign oil companies hardly covers dues accumulated from last year 2014 of up to $ 9 billion, indicating that the problems that emerged after the formation of the government Tmthelta accumulation of dues companies and the collapse of oil prices. He predicted the IMF last month, that the deficit in the Iraqi budget is increasing to 6.1% in the current year, up from 4.9% last year.
He said Iraq's oil minister, that the benefits of foreign companies during 2014 have accumulated about $ 9 billion, indicating that the dues for 2015 estimated at up to $ 4.5 billion for each chapter of the four seasons of the year, or about $ 18 billion.
And this recognizes the Iraqi Oil Ministry, receivables accumulated, while said last January, it is the city for foreign companies "entrepreneurship" (which holds the development and maintenance of oil fields in the country) operations of any sums of money, and that the relationship with those good companies and trusting, what led to the work programs and budgets for the year 2015, according to the comprehensive development plans for all oil fields in the country without any reduction, noting that the amounts actually received by these companies (arrears), had been agreed upon receipt of equivalent crude oil.
Iraq relies on oil imports to finance 95% of the budget, the country produces about 2.5 million barrels per day, with expectations to increase production to 4 million barrels per day.
He denied Abdul-Mahdi, according to the statement, allegations talked about the ministry negotiate agreements to convert development of oil fields in previous years to decades or post it to negotiate the granting of new oil patches on the basis of participation contracts.
Since 2009, Iraq entered into service with global energy companies to develop oil fields in decades after years of stagnation due to the embargo and war.
He said Iraq's oil minister, said that the talk about joint ventures did not exceed the founding companies of the government stake in partnership with national companies or foreign in all business related to the development and marketing of oil, citing the example of a Basra Gas Company, where government partner retains 51% of the shares of the company and maintains Shell and Mitsubishi to 49% of the shares.
The Iraqi government relies on oil contracts to raise the country's output of crude to around 8 million barrels per day in the next few years.
Said Abdul-Mahdi, according to the statement, that he was making some adjustments to some of the companies decades before the formation of the current government, where the peak of production and the proportion of government partner to 5% instead of 25% reduced rates and extended the time periods for decades.
He added that the ministry negotiation companies are now in the direction of the return of the government partner's share of between 20 to 25%, as well as to discuss the production programs and rates peak periods execution of contracts, etc., not to mention improve motivation among companies on the one hand, and reduce the financial burden on the state of the other.
The work in Iraq is currently about 17 global investment company and from different nationalities (American, British, Italian, Russian, Malaysian and Chinese) to develop producing oil fields and explored, and that under the contracts in the first licensing rounds and the second, third, fourth, and is obliged to invest their money to raise production capacity, that the government is committed to to pay 50% of the funds disbursed annually, supplemented by earnings at a rate of $ 1.5 for each extra barrel.
And spent companies during the past two years, about $ 43 billion, the government must pay $ 21.5 billion, in addition to 5.5 billion profit, so the total owed $ 27 billion, and these investments have contributed to an increase of production of about one million barrels, was built huge facilities enjoy all luxury items where lives of thousands of foreign experts.
He said Iraq's oil minister, according to the statement, that there are proposals to link corporate profitability by oil prices and not just a lump sum for each additional barrel, and so are their profitability with high oil prices and fall with the price declines, A second proposal, linking profitability by reducing costs to prevent the accumulation of dues to companies.
It is expected that international oil companies contracting continue to implement their investment plans to invest about $ 87 billion until 2016, that is to invest $ 27 billion in the current year and 60 billion next year.
The total investment by international oil companies in Iraq has reached $ 17 billion in 2011 and 2012, the government paid them nearly ten billion over the amounts of oil, and thus the total investment over the period of six years (2011 2016) about $ 147 billion.
And has made Iraq's oil exports rose slightly last February to a record 2.597 million barrels per day compared to the export of 2,560 last January.
Iraq seeks to raise its oil exports by adding 550 thousand barrels per day after the recent agreement between the central government and the region of northern Iraq.
Iraq is facing an economic crisis that forced him to reduce the size of the financial budget as a result of lower oil prices to below $ 50 a barrel and start a policy of austerity, while the Ministry of Finance announced last month that it would increase taxes on some of the services provided.
Oil prices have lost more than 50% of its value since the middle of 2014 until the end of January last, with prices close to the lowest level in 6 years.
Iraqi Council of Representatives approved the end of last month for the 2015 budget of the country after reducing expenses by about 4 trillion Iraqi dinars ($ 3.43 billion) to reach 119 trillion Iraqi dinars ($ 102 billion) and a deficit of 25 trillion dinars ($ 21.4 billion).
[You must be registered and logged in to see this link.]
