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The financial crisis pushing Iraq to sell oil reserves and production contracts for review
28-03-2015
Iraqi government revealed that it plans to sell quantities of oil reserves on prepay, and this is the first time that the resort where Iraq's oil reserves within the funds in an emergency management procedures.
He said Finance Minister Hoshyar Zebari, said the government is planning oil sales of reserves, will also begin reforms economic modifying oil contracts with major Western companies. Zebari said the agency, told Reuters, he has not yet quantities details and the value of these sales, known in the oil industry pre-funding is determined, but Iraq needs liquidity to fund its military campaign against al Daash terrorist To compensate for the revenues from oil, which fell losses by insecurity and low oil prices in global markets. Zebari said that Baghdad also plans to change the way it manages its exploration and production with oil companies such as Royal Dutch Shell, BP, Exxon decades, you'll learn the amended contracts on behalf of the revenue-sharing contracts. With this shift will move Iraq for the first time to adoption of production-sharing contracts under which the division of revenue is a percentage of the services that you get under which oil companies on a specific fee contracts. The Iraqi minister announced that he intends to take many actions, including the imposition of taxes on imports of cars and cards of mobile phones and provide two billion dollars by reducing bonuses Government employees who earn big salaries and collect $ 1.8 billion using SDRs for Iraq from the International Monetary Fund. If these steps have enabled the government to meet its obligations and increased oil production more will be public finances of the state in the event of a lot better in a few years. Adel Abdul-Mahdi: the budget is currently experiencing Many of pressure because of lower oil prices and the Iraqi service contracts entered into when oil prices were high, but after a drop in prices since last June at $ 50 a barrel, Baghdad became paid for companies more than if they were operating production sharing contracts. Such contracts are banned in many oil-producing countries because the Patriots consider the abandonment of the wealth of a sovereign foreign companies, but the Iraqi Minister of Finance said that Iraq should seize the opportunity for reform. "It is better for us now to rely contracts for production sharing, and we are negotiating with all international oil companies. The federal government has begun to realize through the factual circumstances that revenue sharing is the best. " He received Hoshyar Zebari, who took office in the government of Haider al-Abadi last October, the parliament's approval on the national budget and an agreement with the Kurdistan region on oil revenues after years of wrangling. Zebari said "You can not build the private sector and bring in foreign investment with the adoption of an authoritarian socialist laws of old."Earlier this month, Zebari also said that Iraq is considering bond issue worth five billion dollars through the bank City Bank Deutsche Bank to help the budget deficit cover . He pointed out that the Iraqi government needs $ 3 billion a month to meet the needs of a population of 32 million people. Hoshyar Zebari: it is better for us now to rely contracts sharing of oil production and has a hard Iraqi oil reserves, according to earlier reports, about 112 billion barrels, making it the the second largest oil reservoir in the world after Saudi Arabia, while energy experts expect that the Iraqi reserves than in the Gulf states if stabilized the situation and began to complete the research and exploration in areas where the geological survey the whole has not been. The Iraqi parliament passed at the end of last January, the general budget USD 105 billion on the basis of $ 56 a barrel and a projected deficit of about $ 22 billion. He Iraqi Oil Minister Adel Abdul-Mahdi, that the production process suffers many shortcomings and Budget under stress because of lower oil prices, adding that oil today is the basis for the fight against terrorism, which is part Preparations of providing money and fuel for the battle, stressing the importance of continuing to perpetuate oil production. Iraq currently earns about $ 50 billion a year from oil exports. If oil prices stabilized, the production growth rate of only 50 percent Cedar additional revenues of approximately $ 25 billion, enough to cover the deficit in the budget fully. The Iraqi government announced that it would take austerity measures package to put pressure on public spending, noting that the financial crisis need to procedures may be harsh, but kept on the support system so as not to open a new front social tensions. It was Iraq that will be issued treasury bonds worth $ 12 billion, to pay part of the accumulated dues to foreign oil companies operating in the country, which is expected to reach $ 27 billion by the end of this year. He said the Iraqi Oil Ministry earlier, it was agreed to launch treasury bonds during a joint meeting between the Ministry of Oil and Ministry of Finance and the Central Bank of Iraq. The Iraq faces an economic crisis that forced him to reduce the financial size of the budget and start the austerity policy as a result of lower oil prices, as announced The Ministry of Finance last month that it would increase taxes on some of the services provided. and threw the security disturbances and control the organization of radical Daash the oil fields in Kirkuk, a shadow over the struggling Iraqi economy, in addition to the decline in oil revenues due to lower prices, and entered Iraq in a severe financial crisis.
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28-03-2015
Iraqi government revealed that it plans to sell quantities of oil reserves on prepay, and this is the first time that the resort where Iraq's oil reserves within the funds in an emergency management procedures.
He said Finance Minister Hoshyar Zebari, said the government is planning oil sales of reserves, will also begin reforms economic modifying oil contracts with major Western companies. Zebari said the agency, told Reuters, he has not yet quantities details and the value of these sales, known in the oil industry pre-funding is determined, but Iraq needs liquidity to fund its military campaign against al Daash terrorist To compensate for the revenues from oil, which fell losses by insecurity and low oil prices in global markets. Zebari said that Baghdad also plans to change the way it manages its exploration and production with oil companies such as Royal Dutch Shell, BP, Exxon decades, you'll learn the amended contracts on behalf of the revenue-sharing contracts. With this shift will move Iraq for the first time to adoption of production-sharing contracts under which the division of revenue is a percentage of the services that you get under which oil companies on a specific fee contracts. The Iraqi minister announced that he intends to take many actions, including the imposition of taxes on imports of cars and cards of mobile phones and provide two billion dollars by reducing bonuses Government employees who earn big salaries and collect $ 1.8 billion using SDRs for Iraq from the International Monetary Fund. If these steps have enabled the government to meet its obligations and increased oil production more will be public finances of the state in the event of a lot better in a few years. Adel Abdul-Mahdi: the budget is currently experiencing Many of pressure because of lower oil prices and the Iraqi service contracts entered into when oil prices were high, but after a drop in prices since last June at $ 50 a barrel, Baghdad became paid for companies more than if they were operating production sharing contracts. Such contracts are banned in many oil-producing countries because the Patriots consider the abandonment of the wealth of a sovereign foreign companies, but the Iraqi Minister of Finance said that Iraq should seize the opportunity for reform. "It is better for us now to rely contracts for production sharing, and we are negotiating with all international oil companies. The federal government has begun to realize through the factual circumstances that revenue sharing is the best. " He received Hoshyar Zebari, who took office in the government of Haider al-Abadi last October, the parliament's approval on the national budget and an agreement with the Kurdistan region on oil revenues after years of wrangling. Zebari said "You can not build the private sector and bring in foreign investment with the adoption of an authoritarian socialist laws of old."Earlier this month, Zebari also said that Iraq is considering bond issue worth five billion dollars through the bank City Bank Deutsche Bank to help the budget deficit cover . He pointed out that the Iraqi government needs $ 3 billion a month to meet the needs of a population of 32 million people. Hoshyar Zebari: it is better for us now to rely contracts sharing of oil production and has a hard Iraqi oil reserves, according to earlier reports, about 112 billion barrels, making it the the second largest oil reservoir in the world after Saudi Arabia, while energy experts expect that the Iraqi reserves than in the Gulf states if stabilized the situation and began to complete the research and exploration in areas where the geological survey the whole has not been. The Iraqi parliament passed at the end of last January, the general budget USD 105 billion on the basis of $ 56 a barrel and a projected deficit of about $ 22 billion. He Iraqi Oil Minister Adel Abdul-Mahdi, that the production process suffers many shortcomings and Budget under stress because of lower oil prices, adding that oil today is the basis for the fight against terrorism, which is part Preparations of providing money and fuel for the battle, stressing the importance of continuing to perpetuate oil production. Iraq currently earns about $ 50 billion a year from oil exports. If oil prices stabilized, the production growth rate of only 50 percent Cedar additional revenues of approximately $ 25 billion, enough to cover the deficit in the budget fully. The Iraqi government announced that it would take austerity measures package to put pressure on public spending, noting that the financial crisis need to procedures may be harsh, but kept on the support system so as not to open a new front social tensions. It was Iraq that will be issued treasury bonds worth $ 12 billion, to pay part of the accumulated dues to foreign oil companies operating in the country, which is expected to reach $ 27 billion by the end of this year. He said the Iraqi Oil Ministry earlier, it was agreed to launch treasury bonds during a joint meeting between the Ministry of Oil and Ministry of Finance and the Central Bank of Iraq. The Iraq faces an economic crisis that forced him to reduce the financial size of the budget and start the austerity policy as a result of lower oil prices, as announced The Ministry of Finance last month that it would increase taxes on some of the services provided. and threw the security disturbances and control the organization of radical Daash the oil fields in Kirkuk, a shadow over the struggling Iraqi economy, in addition to the decline in oil revenues due to lower prices, and entered Iraq in a severe financial crisis.
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