Oil giants departure from Iraq: blessing or curse?
Dinar Daily :: DINAR/IRAQ -- NEWS -- GURUS and DISCUSSIONS :: IRAQ and DINAR -- ARTICLE BASED INFORMATION and DISCUSSIONS
Page 1 of 1
Oil giants departure from Iraq: blessing or curse?

2021-07-06 04:23
Shafaq News / Iraqi Oil Minister Ihsan Abdul Jabbar stated that British Petroleum (BP) and Lukoil want to pull out of Iraqi energy projects because of the current investment environment, as OPEC's second-largest producer faces a mass exodus of global oil companies that want to exit unappealing contracts.
"Investing in oil licensing rounds is useless for international companies because the profits they make are very low compared to the services they provide," said Hamza al-Jawahiri, an oil expert, "the campaign against licensing rounds by some politicians is just a media hype intended to blackmail the ministry of oil."
"Companies operating in the oil fields do not get lucrative profits as they get an overall rate of 1 dollar and 8 cents for every barrel extracted. Thus, these international companies are not convinced of these figures because they want higher revenues," al-Jawahiri added.
The oil expert continued, "the companies were charging for production, development, and some expenses. However, now that charges are fixed, they can not manipulate them anymore. Therefore, their profits became less. That's why licensing contracts are 90% fair for Iraq and 10% for the companies."
"These companies' departure is better for Iraq because we now have the personnel that can replace the foreign workforce, and acquired the technology, training, and the work systems. So we are in a very good position now."
"The investment environment depends on many elements such as security, legislative stability, and the economic and banking ground, most of which are not available," said Mohammed Saleh al-Jawad, a professor of Petroleum Engineering at the Baghdad University.
"Foreign companies want to achieve a semi-peak production. However, given Iraq's unwillingness to raise the production to the point sought by foreign investors, what these companies obtain does not meet their ambitions."
"National companies can replace international companies for they have the capacity and technology to manage large oil fields, similar to what happened in the Majnoon oil field after Shell Oil Company left," al-Jawad said.
BP and Lukoil will join ExxonMobil, which is seeking to sell its stake in the southern oil field West Qurna/1.
BP is the main contractor in the Rumaila oil field, holding 38% of the shares along with CNPC's 37% stake. The rest is jointly owned between the state-owned Basra Oil Company, the General Petroleum Marketing Corporation, and its partners in a technical services contract ending in 2034.
The Rumaila Oil Field is the largest in the country, with about 1.5 million bpd of the country's production capacity of 5 million bpd and an estimated 17 billion barrels of remaining extractable oil.
Lukoil owns 75% of the shares of the huge West Qurna/2 field in the South. The remaining is owned by the state-owned North Oil Company.
In Iraq, international oil companies operate some of the largest fields in the country, for a fee per barrel pegged to production.
https://shafaq.com/en/Report/Oil-giants-departure-from-Iraq-blessing-or-curse
RamblerNash- GURU HUNTER
- Posts : 24114
Join date : 2015-02-19

» The Independent: secret document reveals the relationship between the invasion of Iraq and the oil giants
» IMF: Iraq’s Ambitions Crumble As Oil Giants Opt Out!
» Ijs is preparing to celebrate the imminent departure of Iraq from Chapter VII the Iraqis for complete national sovereignty and ownership of Iraq for its wealth and its economy. 2 Articles
» China oil giants prepare Iraq evacuation plans
» Iraq calls on Chinese giants to rebuild the country
» IMF: Iraq’s Ambitions Crumble As Oil Giants Opt Out!
» Ijs is preparing to celebrate the imminent departure of Iraq from Chapter VII the Iraqis for complete national sovereignty and ownership of Iraq for its wealth and its economy. 2 Articles
» China oil giants prepare Iraq evacuation plans
» Iraq calls on Chinese giants to rebuild the country
Dinar Daily :: DINAR/IRAQ -- NEWS -- GURUS and DISCUSSIONS :: IRAQ and DINAR -- ARTICLE BASED INFORMATION and DISCUSSIONS
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
» WHY IS ANYONE SPEAKING ABOUT THE MASTER'S TRUST WHEN IT IS A SCAM!?!?!?!
» Iraq paralysed by government stand-off as Moqtada al-Sadr unleashes protest
» Introducing myself...
» Nearly two years after launching the White Paper, what are the achievements?
» CHAT
» USD/IQD rate closes slightly lower in Baghdad
» CBI sells +240$ million in forex on Sunday
» Iraq without a budget for 2022
» Al-Nusairi: The Central Bank’s initiatives to revitalize the economy amounted to 18 trillion dinars and achieved their goals
» A new talk from Al-Kazemi's advisor regarding the budget
» The assets of the International Development Bank rise to 1.5 trillion dinars
» CBI sells +260$ million in forex on Sunday
» Parliamentary Finance: Write a paragraph to cancel payroll deductions in the budget
» New member
» USD/IQD exchange rates inch up in Baghdad on Saturday
» The Central Bank: We supported the economic sector with 18 trillion dinars
» The Central Bank sets the goal of its call to establish a sovereign fund
» Al-Maliki's leaks: a political boom looms over the Iraqi arena
» The Central Bank of Kuwait allows applications to establish digital banks
» Including Iraq ... the price of bitcoin in Arab currencies
» Fitch announces the credit rating of Iraqi Islamic banks
» Adelaide, South Australia Redemption?
» Countdown to US implosion begins after failure of Biden Mid-East trip
» What distractions are in "The Dinar RV"...How many wild goose chases did you fall for?
» After slashing four zeros, Iran releases new banknotes
» Presidential elections: no PUK-KDP agreement yet
» Al-Maliki: PMF members are "a whole nation of Jihadists"
» MP warns of strife following al-Maliki's leaked recordings
» USD/IQD closes slightly higher in Baghdad
» Iraq proposes the establishment of the Middle East Bank for Development and Integration
» Al-Kazemi: World Bank indicators confirm that Iraq has passed the economic crisis in a very short time
» Some of them are negative.. 4 effects of the decline of the euro on the Iraqi economy
» The Central Bank calls for the establishment of a sovereign fund to benefit from the financial abundance
» Our economy and stagflation in the global economy
» After an agreement to invest $27 billion in energy, France's Total withdraws from Iraq
» Experts: Turkey is preparing to cut 56 percent of the Tigris supply by building the Jazra Dam
» Al-Nusairi: Sustainable development in Iraq is achieved by strategic economic agreements with brotherly and friendly countries
» Euro reaches parity with dollar for the first time in 20 years
» Forex-US dollar notches in Baghdad