Oil issues in Iraq’s agreement with the IMF
Oil issues in Iraq’s agreement with the IMF
8/14/2016 0:00
Ahmed Musa translation – Khalid Qasim
provide the International Monetary Fund within the latter its agreement with Iraq a loan of 5.34 billion dollars , it focuses on the implementation of economic and financial policies to help the country deal with falling oil prices and ensuring debt sustainability.
And include the Convention, in regards to the oil sector, specific obligations on Iraq must fulfill them and relate to three aspects are arrears of international oil companies, as it confirms the IMF on the continued implementation of the oil investment was financed mainly from the accumulation of arrears of international oil companies. Thus Iraq has accumulated more than $ 3.5 billion by the end of December 2015 , the arrears of those companies belonging to the licensing contracts, and increased the amount to 4.67 billion dollars by the end of last March. Payment of arrears as the oil ministry paid all arrears from last year to the Basra Gas Company, amounting to $ 204 million, it is assumed that it had paid arrears of this year until the end of last May, amounting to $ 140 million and paid the remainder of the amount of gas purchases for the current year and $ 700 million, and used $ 145 million at least of its investment budget for the current year to fund investment reducing gas flare project the company. In order to facilitate the implementation of the sharing of the budget agreement, consider the governments of Iraq and the Kurdistan region into account the receipt of the net amounts received by the province from oil exports, which made the last government plans to audited by international auditing companies with effect from 1 July. exploration areas awarded four exploration areas in the fourth round of licenses in 2012, and work was continuing in three of them during the first half of this year. No progress was made in the eighth region (provinces of Diyala and Wasit) mentioned period due to the security situation and the factor «Daash» which impact on activity in Diyala. Unlike the eighth region, ninth region has made remarkable progress. The past April signing of an agreement for sales of oil export between SOMO and a consortium company composed of Kuwait Energy Company 60 percent, and Dragon Oil Holdings Ltd. , 30 percent, and the institution of public oil Egyptian 10 percent. It is worth mentioning that the first exploratory well ninth region a «rainbow 1» may dig in March 2014, it led to a large Bchehri September and December oil explorations of the same year. the two companies began Russia ‘s Lukoil and Inpex of Japan drilled the first exploration well to them during the last region of the tenth of April. While Russian Bachinvt company and its partner Premier Oil UK completed the same month field surveys seismic region 12 as part of the geological exploration approved by the Ministry of Oil and start experimental drilling at the end of the current year ‘s program. Associated gas amounted gas production associated with 2628 million cubic feet per day during the first five months of the year current: 84 percent of it from the southern oil fields , while the remainder comes from the North oil company fields. Of that total , there are 1714 million cubic feet burn , representing 65 percent of the total gas production associated with . Thanks to the new exports of gas condensate and liquid gas to the joint venture «Basra Gas Company» which increased processed gas from 400 million cubic feet to 600 million feet cubic between June 2013 and the time of writing the report. the Undersecretary of the Ministry of oil for the gas industry Hamid Younis that the gas sector has become self – sufficient in the production of liquid gas , the productivity of 5,000 tons and exported quantities of condensed gas card can be used as a raw material in the petrochemical industry, in addition to the growth of designer dry gas production for electric power generators in the country, reaching a dry gas production in mid-May 1100 million cubic feet per day.
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