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Re-examine contracts of oil licensing rounds
10/21/2015 0:00
To avoid sanctions and achieve the greatest benefit for Iraq
BAGHDAD - Omar Abdel-Latif
said the Commission on oil and energy and natural resources in the House of Representatives the possibility of modifying certain paragraphs of the contracts for the rounds of oil licensing during the next phase, especially with the rise in imports of firms from licensing rounds because of lower oil prices and higher contracts expenses, which necessitated re-considered and discussed a debate scientifically.
The head of the Committee Ares Abdullah in a statement singled out by the «morning» «The Commission has already spoken on the subject of oil licensing rounds, which led to the damage to Iraq since 2014 because of the fall in world oil prices which led to the aggravation of the problem and add new financial burdens on the current government whose entitlements international oil companies operating in the country ».
He added that the Commission and in cooperation with the Finance Committee regularly discusses possible solutions and then the agreement with the Oil Ministry to overcome this problem.
and between Abdullah that there are proposals to amend some paragraphs of contracts After approaching those companies and the Oil Ministry after the damage Iraq materially leading to the accumulation of amounts due to those companies and the lack of government from oil imports.
Parliamentary Finance Committee Parliamentary recommended at its meeting this week to form a sub-committee on the subject of oil licensing rounds headed by MP Haitham Ramadan al-Jubouri, and the membership of Messrs. Representatives Ahmed meat and Mohammed Tamim and Hossam punitive and Abdul-Jabbar al-Abadi and Faleh in force and Mr. Mohammad Javad financial advisor to the Committee.
For his part, said a member of the Committee on the block free Awad al-Awadi: that represented by the Ministry of Oil Government concluded three service contracts with international companies and four exploratory in 2009 and entered those contracts into force in 2010.
He said in a statement singled out by the (morning) that those contracts as its cons her positives to Iraq in terms of increasing oil production after missing 35-year-old technology and infrastructure of international oil and the service was needed to keep pace with progress in this area after he was Iraq of the first countries in the production and export.
He believed that those contracts were accompanied by a financial level of increase in expenditures problems, but these problems can be minimized by revising contracts, as well as the government during the past two years did not get rid of these problems paying dues companies resulting in added burdens additional maturity of those oil companies, which almost came to nineteen billion dollars.
He noted «that the maturity of the oil companies declined due to the payment of the current government amount reached $ 9 billion, although the figure is not a little but cross-licensing rounds production reached 3 million barrels a day and there ready to increase production while national production reached 170 000 barrels per day, noting that the Iraqi interest in maintaining these contracts and review them to increase production and maintain the infrastructure that has become very sophisticated, thanks to those giants.
He said al-Awadi, most notably it can be adjusted from paragraphs contracts is the additional contract costs, indicating the size of expenditures during 2015 totaled $ 15 billion and a half billion, and for reviewing contracts show the possibility of reducing the amount of two billion.
A member of the Committee should be aware of Parliament to these contracts, which requires Alastdavat officials and visit the provinces, warning of the existence of legal sockets and financial burden of international sanctions against Iraq in the event of cancellation of those contracts, called on the government that there is the need to be flexible to deal with these companies take the initiative to develop such contracts and make it serve the people.
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