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Increasing Iraq's oil profits with the survival of the complexities of infrastructure
On: Sat 31/12/2011 6:15
□ Translation: Ali Abd al-Khaliq
was announced numbers of Iraqi oil exports and profits for the month of November 2011, where figures showed an increase in profits this month after a two-month volatility. Prices rose with the Iraqi crude exports which led to a rise in Iraqi revenues for the past month, though the Iraqi production remains unchanged because of limitations in addition to the infrastructure that Iraq had no problems in the payment of foreign companies responsible for the increases profits.
As reported recently, the oil exports to Iraq have escalated in T 2 after landing over the past two months. In Iraq, I 2 was shipped an average of 2.13 million barrels per day compared with 2.08 million barrels per month v 1, and 2.10 million barrels in September. The price of a barrel of Iraqi crude from 104.43 dollars in T 1 to 106.59 dollars in the v 1. And that was the highest price since July, when Iraq was selling its oil at 108.80 dollars a barrel. As a result of these two factors, revenues rose as well. Iraq has gain of $ 6.833 billion in the month of v 2 is higher than the 6.742 billion in T 1, and 6.619 billion dollars in September. Exports recovered because the Iraqi oil industry did not face any terrorist attacks or significant service problems or weather, as happened in previous months. As oil prices remained above $ 100 a barrel for most of the year, because of Arab Spring and unrest in Syria and Libya, and that the recent bombings in Baghdad has scared the oil markets has led to maintain high prices. The figures for each v 2 in the extension of the annual rate. For the first eleven months of 2011, the rate was 2.16 million barrels per day, which is more than 1.89 million for the year 2010. The weighted average rate of $ 104.85 a barrel, compared with 75.62 dollars in the last year. Finally, Iraq exceeded its profits last year. In 2010 the profit amounted to 4.352 billion per month, compared with $ 6.893 billion dollars and won a total of 52.227 billion dollars for the whole year. Over Iraq that amount in August of this year, where he achieved 75.832 billion dollars, and in the way to achieve the overall profit of nearly $ 82.5 billion for 2011.
The increases in the oil industry as a result of the return of foreign oil companies to Iraq, but is still limited because of the service institutions of Iraq. In 2009, the Ministry of Oil two rounds of auctions, which opened some of the great oil fields in the country to foreign investment. Recently, Deputy Prime Minister Hussein al-Shahristani is responsible for energy affairs that he hoped to reach oil production as a result to 3.4 million barrels per day by the end of 2012 and that exports of up to 2 barrels per day. Issued and the International Energy Agency recently reported estimates of Iraq's readiness to add 1.87 million barrels of production per year from 2010 to 2016. It would be possible if what has been the completion of infrastructure projects on the agenda of the government. More importantly, the completion of three new ports in Basra with new pipes, and old that are maintained. The first of these ports is scheduled for completion in January, but Iraq has a poor reputation for meeting deadlines. The first operation can increase the energy rate of 900,000 barrels per day of Basra, which includes the majority of the country's oil. So it is important to complete these plans.
with all this, all things are not going well with foreign companies. The New York Times recently reported on the non-receipt of Exxon Mobil, Shell dues for work in the West Qurna 1, where the two companies worth nearly $ 50 million for two years of work. And said an official at Shell that the reason is due to the red wax. Other companies received some dues, but also require large sums. BP BP and China National Petroleum Corporation who are also jointly run the Rumaila field in Basra, took all of three payments in the form of oil since Maes 2011 to but it is still worth more than a billion dollars.
even though the companies will not leave Iraq because of the payments, the issue can lead to the complexity of the relationship between the parties and make the companies are calling for the Iraqi government on better terms as long as the current situation facing such difficulties. The companies signed agreements technical services with the Oil Ministry in favor of the government and the corporate profits are limited, where companies have agreed to these agreements because Iraq has huge reserves did not reach the hands due to wars and international sanctions.
with the growing Iraqi oil industry in 2011, the infrastructure hinder further expansion in this area. Fortunately for Iraq, the turmoil in the region has kept prices high. However, the oil industry needs billions of dollars to invest in drilling and pipelines, ports, warehouses and storage ... Etc., in order to fulfill the dreams of Iraq to be the biggest player in the global oil market. The problem lies in the lack of government capacity to deal with such large projects, which impede the transaction of any other development in the country. The bureaucracy of government departments, causing delays in payment for foreign companies, and if it does not address these issues, Iraq may not be up never to achieve his dreams.
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