Home
After the decision to compensate the region for the costs of producing and transporting oil...an expert reveals financial damages and disparities
Economy | Today, 23:12 |
Baghdad today - Baghdad
Today, Tuesday (November 5, 2024), economic expert Nabil Al-Marsoumi revealed financial damages and disparities in favor of Kurdistan as a result of amending Article (12/Second/C) of the 2023 budget, which indicates equalizing the costs of producing and transporting the region’s oil with its counterpart produced in the Ministry’s fields. Federal oil.
Al-Marsoumi wrote on the “Facebook” platform, followed by “Baghdad Today,” that
“the new amendment includes assigning a consulting body to determine the costs in each of Kurdistan’s oil fields, but the Ministry of Finance will pay $16 to Kurdistan as an advance for the cost of production and transportation that will be delivered to SOMO.” "It will be settled later." He added:
"It is known that the cost of production and transportation of oil produced by the
Federal Ministry of Oil amounts to $6.9 per barrel, while the
region demands about $32.9 per barrel, distributed as follows: Oil production cost = $24.32 per barrel, and oil transportation cost = $8.59 per barrel."
Earlier today, Tuesday (November 5, 2024), the Council of Ministers approved a proposal to amend Article (12/Second/C) of the Tripartite Budget Law No. (13 of 2023) regarding the oil of the Kurdistan region.
The amendment to the proposal included, according to what was stated in the Council’s decision, according to a statement from the Prime Minister’s Office, received by “Baghdad Today”, that
“the Federal Ministry of Finance shall assume the responsibility of compensating the Kurdistan Regional Government of Iraq from sovereign expenditures for production and transportation costs, for the quantities of oil produced in the region that are received from Before the Oil Marketing Company (SOMO), or the Federal Ministry of Oil in accordance with paragraphs (a) and (b) of this clause, provided that the fair estimated costs of production and transportation for each field are calculated separately, by a specialized international technical advisory body, determined by the Federal Ministry of Oil. In agreement with the Ministry of Natural Resources in the region, within (60) days from the entry into force of this law, and in the event of failure to agree within the aforementioned period, the Federal Council of Ministers shall determine the aforementioned advisory body.” The statement continued,
“The consultant mentioned in the previous paragraph submits the estimated production and transportation cost to the Ministries of Oil, the Federal Ministry of Finance, and the Kurdistan Regional Government of Iraq, and
it is approved for the purposes of this law, and the calculation of the aforementioned compensation is based on the mentioned cost per barrel multiplied by the number of barrels received in accordance with paragraphs (A). ) and (b), of this clause, and the Federal Ministry of Finance shall pay the amounts to the regional government.” The statement also indicated
“immediately starting to deliver the oil produced in the region to the Oil Marketing Company (SOMO) or the Federal Ministry of Oil in accordance with paragraphs (a) and (b) of this clause, and the costs of production and transportation will be compensated by the Federal Ministry of Finance as an advance, at a rate (16) dollars per barrel, to be settled later after the completion of the specialized technical consultant mentioned above, and retroactively from the date of commencing delivery under this amendment.
[You must be registered and logged in to see this link.]
Economy | Today, 23:12 |
Baghdad today - Baghdad
Today, Tuesday (November 5, 2024), economic expert Nabil Al-Marsoumi revealed financial damages and disparities in favor of Kurdistan as a result of amending Article (12/Second/C) of the 2023 budget, which indicates equalizing the costs of producing and transporting the region’s oil with its counterpart produced in the Ministry’s fields. Federal oil.
Al-Marsoumi wrote on the “Facebook” platform, followed by “Baghdad Today,” that
“the new amendment includes assigning a consulting body to determine the costs in each of Kurdistan’s oil fields, but the Ministry of Finance will pay $16 to Kurdistan as an advance for the cost of production and transportation that will be delivered to SOMO.” "It will be settled later." He added:
"It is known that the cost of production and transportation of oil produced by the
Federal Ministry of Oil amounts to $6.9 per barrel, while the
region demands about $32.9 per barrel, distributed as follows: Oil production cost = $24.32 per barrel, and oil transportation cost = $8.59 per barrel."
Earlier today, Tuesday (November 5, 2024), the Council of Ministers approved a proposal to amend Article (12/Second/C) of the Tripartite Budget Law No. (13 of 2023) regarding the oil of the Kurdistan region.
The amendment to the proposal included, according to what was stated in the Council’s decision, according to a statement from the Prime Minister’s Office, received by “Baghdad Today”, that
“the Federal Ministry of Finance shall assume the responsibility of compensating the Kurdistan Regional Government of Iraq from sovereign expenditures for production and transportation costs, for the quantities of oil produced in the region that are received from Before the Oil Marketing Company (SOMO), or the Federal Ministry of Oil in accordance with paragraphs (a) and (b) of this clause, provided that the fair estimated costs of production and transportation for each field are calculated separately, by a specialized international technical advisory body, determined by the Federal Ministry of Oil. In agreement with the Ministry of Natural Resources in the region, within (60) days from the entry into force of this law, and in the event of failure to agree within the aforementioned period, the Federal Council of Ministers shall determine the aforementioned advisory body.” The statement continued,
“The consultant mentioned in the previous paragraph submits the estimated production and transportation cost to the Ministries of Oil, the Federal Ministry of Finance, and the Kurdistan Regional Government of Iraq, and
it is approved for the purposes of this law, and the calculation of the aforementioned compensation is based on the mentioned cost per barrel multiplied by the number of barrels received in accordance with paragraphs (A). ) and (b), of this clause, and the Federal Ministry of Finance shall pay the amounts to the regional government.” The statement also indicated
“immediately starting to deliver the oil produced in the region to the Oil Marketing Company (SOMO) or the Federal Ministry of Oil in accordance with paragraphs (a) and (b) of this clause, and the costs of production and transportation will be compensated by the Federal Ministry of Finance as an advance, at a rate (16) dollars per barrel, to be settled later after the completion of the specialized technical consultant mentioned above, and retroactively from the date of commencing delivery under this amendment.
[You must be registered and logged in to see this link.]
