Iraq signs agreement with ExxonMobil for exit from West Qurna 1 field, PetroChina to take over, 12 NOV

Iraq signs agreement with ExxonMobil for exit from West Qurna 1 field, PetroChina to take over

Shafaq News/ The Iraqi Ministry of Oil confirmed on Saturday the finalization of a settlement agreement with ExxonMobil, paving the way for the American energy giant's departure from the West Qurna 1 oil field. Simultaneously, the ministry announced that Chinese company PetroChina would assume the field's leading operator role.

Hassan Muhammad, deputy Basra Oil Co. manager in charge of oilfields and licensing rounds affairs, revealed that the settlement agreement underwent scrutiny by the Ministry of Oil and the Basra Oil Company. It was determined that PetroChina would become the primary operator of the West Qurna 1 field. As a result, the Chinese company will now hold the largest share in the field after ExxonMobil's departure.

ExxonMobil, which previously owned a 22.7% stake in the West Qurna 1 oil field with a capacity of 550,000 barrels per day, has now concluded a "sale agreement" to transfer its share to the state-run Basra Oil Company. 

The sale agreement encompasses financial matters, and a commitment has been made to address the tax issue associated with ExxonMobil's share in additional negotiations.

Regarding the unresolved tax matter, the Iraqi official stated that two options are under consideration: reaching a settlement agreement on the tax or resorting to arbitration.

Notably, the preceding year, the state-owned oil and gas firm Pertamina acquired 10% of ExxonMobil's share in the West Qurna 1 oil field, increasing its stake to 20%. Concurrently, the Basra Oil Company purchased 22.7% of the field's share.

According to officials from the Basra Oil Company, with ExxonMobil's exit from West Qurna 1, the company will no longer have a presence in the Iraqi energy sector.

https://shafaq.com/en/Economy/Iraq-signs-agreement-with-ExxonMobil-for-exit-from-West-Qurna-1-field-PetroChina-to-take-over

Dinar RV Breaking News🔥CBI & US Enhance Iraq Banks Balances in Global Cu...

"RV UPDATE" BY CLARE, 12 NOV

 Clare

  Article:  "Intensive Iraqi-American meetings in the Emirates result in important decisions regarding external transfers of the dollar”  

Quote: "The official Iraqi News Agency quoted a government source as saying that intensive meetings took place during the past few days in Abu Dhabi between a delegation from the Central Bank of Iraq and the American side responsible for foreign transfer operations to cover imports, indicating that the negotiations culminated in a number of decisions and mechanisms that contribute to facilitating procedures. Regarding external transfers related to imports through the foreign currency sales window."

Article: " Central Bank: Inflation rates in Iraq are low and their percentage is acceptable compared to countries in the region"

Article:  "Economist: It is not possible to mint an Iraqi coin currently, and inflation is a thousand times high ”

Article:  "Misdemeanor Integrity Court: Iraq has come a long way to get off the money laundering blacklist"

Iraq signs $257m loan deal with JPM, GE to upgrade power plants, 12 nov

Iraq signs $257m loan deal with JPM, GE to upgrade power plants

Shafaq News/ Iraq's Finance Minister, Dr. Taif Sami, signed a $257 million loan agreement with JP Morgan Chase and General Electric (GE) on Sunday to upgrade the country's power plants.

The loan will be used to fund the fifth phase of the annual maintenance program (PUP5/B), which will cover 11 power plants across Iraq. 

The program, according to Iraqi officials, is expected to improve the efficiency of the plants and increase electricity production.

The electricity infrastructure in Iraq has suffered from inadequate maintenance since the 1980s.

Power outages are part of daily life in Iraq, but older generations can vividly recall a bygone era before the 1980s, when Iraq boasted one of the most developed energy sectors in the region. 

The loan is guaranteed by the U.S. Export-Import Bank (EXIM).

The agreement is the latest in a series of loan deals that Iraq has signed with international lenders, including Siemens and TotalEnergies, over the past few months in a bid to raise funds to finance infrastructure projects and other economic development initiatives.

Following the eight-year-long war with Iran, the decline in oil revenue reduced the Iraqi government's spending on public services. The 1990 Gulf War, coupled with the sanctions that followed, devastated state infrastructure, particularly the electric grid and water networks. By the end of the 1990s, most Iraqis did not have consistent access to electricity or water

"This loan will help to close the gap between supply and demand for electricity in Iraq," Sami said at the signing ceremony. "It will also help to improve the quality of life for Iraqis." 

Despite Iraq's natural wealth, decades of conflict and corruption have limited the country's infrastructure, prompting over-reliance on Iran for energy provisions. While previous Iraqi governments have struggled to attract foreign investments, Iraq's complex political system has proven resistant to crises, and the nation's current state of relative peace has catalyzed a shift.

Recently, the sector has focused on new gas-capture and power-generation efforts—including projects in the just-signed $27 billion deal with France’s TotalEnergies, which the Biden administration welcomed.

https://shafaq.com/en/Economy/Iraq-signs-257m-loan-deal-with-JPM-GE-to-upgrade-power-plants

Experts expects a breakthrough as Baghdad-Erbil oil talks progress, 12 nov

Experts expects a breakthrough as Baghdad-Erbil oil talks progress

Shafaq News/ Experts are optimistic about the prospects for an agreement between Baghdad and Erbil on the oil file for the Kurdistan Region.

Speaking to Shafaq News Agency, Kurdish oil expert Gorfed Sherwani said that the visit of the Federal Minister of Oil to Erbil on Sunday reflects the seriousness of the Iraqi government.

"The visit shows that the two sides are ready to discuss the tactical, administrative, and financial aspects of resuming oil exports from the region," Sherwani said.

He added that the main disagreement between the two sides is over the vision for the oil law. The Kurdish government wants to maintain its autonomy, while the federal government wants more control.

"The Constitution guarantees a clear role for the federal government, the regions, and the oil-producing provinces," Sherwani said. "We hope that this will be taken into account in the distribution of responsibilities for managing the oil file."

Sherwani also said that the estimates for the cost of oil production in the region vary. The federal government estimates that it costs $12 per barrel to produce oil and $7 per barrel to transport it. The Kurdistan Regional Government estimates that it costs $24 per barrel to produce oil and $8 per barrel to transport it.

"These figures are realistic and are in line with what is paid to foreign companies that sign a contract with the Federal Ministry of Oil," Sherwani said.

https://shafaq.com/en/Economy/Experts-expects-a-breakthrough-as-Baghdad-Erbil-oil-talks-progress

Iraqi Dinar🔥Final Value Of Iraqi Dinar Between $3.22/4.25 Today🔥IQD hold...

"RV UPDATE" BY MARKZ, 12 NOV

 MarkZ  

  [via PDK]    “The seventh Ambassadors conference confirms the increase in Iraq’s effectiveness regionally and internationally”   Leaders from different regions got together to talk about their progress. This was a especially fruitful conference in Iraq.

  The earliest we expected things was Friday evening… The most probable time is Saturday. But there is nothing yet.  Iraq is embracing alternative currencies like the Indian Rupee and the Chinese Yuan. Euro ect…Many interesting things happening in Iraq that points to an ”International Currency”.  This means a new rate. 

 Iraq is now selling gold to banks and that is good news….  They are doing everything they need to do and are making solid progress toward this Rv…

but, stay grounded. We know we are close…we are hopeful…but, manage your expectations...But everything seems to be pointing to an announcement in the next day or so.