Iraq reveals its plan to compensate the oilfield companies for the losses of reducing production

by **claud39** Sun Mar 14, 2021 1:27 pm

Iraq reveals its plan to compensate the oilfield companies for the losses of reducing production

3/14/2021

Economy News - Baghdad

The Ministry of Oil announced that it had reached understandings with the companies operating the oil fields to compensate them with the production quantities after reducing production, while confirming that it did not receive the quantities of crude exported from the Kurdistan region.

Undersecretary Hamid Yunus Al-Zobaei said in a statement reported by the official news agency and seen by Al-Iktissad News, "After the drop in oil prices, the export quantities were determined by OPEC and turned into quotas," pointing out that "Iraq is the second largest oil producer in OPEC after Saudi Arabia And it has a primary position in terms of influencing the decision and determining the policies that are based on an economic base that is beneficial to the country. "

He added, "Iraq played in the past year a big role with OPEC in controlling global oil prices and creating balances between producers and consumers, whether with OPEC or OPEC Plus, and the effect was evident through the rise in oil prices that exceeded $ 65 a barrel."

He continued, "This role is important and is calculated for Iraq through its position in OPEC, as well as for the purpose of providing much-needed financial resources," noting that "there are understandings with companies operating the oil fields to go in the future by compensating them with productive quantities and not going to the issue of fines."

On the region’s oil, Al-Zobai said, “The center has not yet received any quantity of oil exported by the Kurdistan region,” stressing that “there are understandings between the center and the region in the hope of reaching a bilateral agreement that serves the country's interest in general.”

On clean energy, Al-Zobaie pointed out, "The decline in the world's use of oil and the trend towards producing clean energies through solar cells and wind, does not mean that oil will be dispensed with in the future." Production in every country. "

He continued, "For example, Iraq has a large solar energy. This energy may not be available in other countries, as well as wind is not found in Iraq and is found in other countries, which means that clean energy will not replace oil in the future, although it is important from the point of view." Economic power generation. "

He pointed out that "oil has flexibility in terms of uses, transportation and other matters, as it remains until now the first energy in terms of uses in the countries of the world."

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