Monday, March 11, 2024
Will The Decisions Of The Federal Court Affect The Form Of The Oil And Gas Law? .. A Foreign Report Reveals, 11 MARCH
Will The Decisions Of The Federal Court Affect The Form Of The Oil And Gas Law? .. A Foreign Report Reveals
Economy News – Baghdad A report by the American energy news site, Oil Price, indicated that discussions are still ongoing between the federal government in Baghdad and the Kurdistan Regional Government about drafting a draft oil and gas law at a time between the Federal Court’s decision that Baghdad should be responsible for marketing, and this may have some impact on companies’ contracts. International oil companies operating in the region.
The economic expert, Simon Watkins, mentions in his report that a series of legal decisions issued by the Federal Supreme Court on February 21 show the broad outlines on which the oil and gas law that the Baghdad government is working on will be built, which will likely bring about a change in the mechanisms of exporting oil from the fields of the Kurdistan region. The same applies to the working conditions of Western oil companies operating there.
The economic expert, Watkins, points out that the Federal Court recommended that the regional government hand over the export mechanisms and financial resources to the central government through the State Oil Marketing Company (SOMO), and even if there is another mechanism for export, the financial returns will be transferred to the central government and in return, The central federal government is responsible and obligated to pay the salaries of public sector employees in the region.
The expert points out that this context will be different from the previous payment budget for oil revenues agreed upon between the regional government and the central government of Baghdad, which dates back to November 2014.
The agreement stipulated that the regional government would export no less than 550 thousand barrels per day of the oil produced. From its fields through the oil marketing company SOMO. In return, Baghdad allocates 17% of the federal budget.
This agreement was later canceled through an understanding reached between the regional government and the new federal government that was formed in the August 2018 elections and was established in the 2019 budget law.
This requires that the federal government transfer sufficient amounts of budget amounts to pay the salaries of the region’s employees in addition to financial compensation.
Another, in exchange for the regional government handing over the export of no less than 250 thousand barrels per day through the oil marketing company SOMO. This agreement was also marred by some implementation failures.
The report notes that, according to the regional government, it has the authority, through Articles 112 and 115 of the Constitution, to manage oil and gas extraction operations from fields in the region that were not in production in 2005, the year that was written in the Constitution and voted on by referendum.
In addition, the territorial government insists that Paragraph 115 states that it has the authority and authorization to sell oil and gas and receive resources for what is exported. The regional government also highlights that the Constitution gives it priority, in the event of a dispute, to refer to the law of the region and governorates.
However, the central government and SOMO Oil Marketing Company insist that Article 111 of the Constitution stipulates that oil and gas are public wealth for all the people in the region and governorates.
The report states that Russian and Chinese oil companies operate in oil and gas fields in southern and northern Iraq in the Kurdistan region, in addition to Western oil companies.
On August 3 of last year, the new federal government under the authority of Prime Minister, Muhammad Shia al-Sudani, stated that the new unified oil law would govern the mechanisms of oil and gas production and investment in both federal Iraq and the Kurdistan region and would contribute to being a strong factor for unifying Iraq.
The Iraqi Oil Minister, Hayyan Abdul Ghani, had confirmed during his participation in the Al-Rafidain Forum in Baghdad last week that discussions on the oil and gas project would be held with the Kurdistan region.
Minister Abdul Ghani said, "We held more than one meeting to discuss this issue in Erbil and Baghdad to prepare a draft of the oil and gas law according to the federal government's agenda."
The minister added that a draft of the law had previously been prepared, but officials in the region asked to discuss the draft with all its provisions. The review of many of the basic provisions had been completed, but the discussions stopped due to the occurrence of several incidents.
Abdul Ghani said that the Ministry of Oil held discussions with the Kurdistan region to prepare a draft oil and gas law, and a draft was prepared for this purpose and submitted to the federal government in accordance with the country’s constitution. - https://economy-news.net/content.php?id=41344
"RV UPDATE" BY MILITIAMAN, 11 MARCH
Militia Man
They're not going to...build a country at 1310. The math doesn't work. I don't care how many times people try to figure that out. Think about it for a second...1310 dinars to buy a pencil but if you can buy 100 pencils for one dinar because the dinar is worth $3.00, $4.00 or more. How many pencils can you buy?
Think about that in bricks, steel, sewer systems, infrastructure, lighting, military operations, airplanes, guns and weapons, grocery stores at 1310 as opposed to 2, 3, 4 bucks. They specifically bring up and invoke 'previous eras' not me. I just report that...
Evening News with MarkZ. 03/11/2024
"RV UPDATE" BY SANDY INGRAM, 11 MARCH
Sandy Ingram
IMF's report on Iraq's economy. This is a critical report dealing with Iraq's...financial future...Iraq could easily be on the path to a higher exchange rate depending on how the country responds to the IMF recommendations...
Iraq's non-oil economy is expected to continue to its growth in 2024 after expanding by 6% in 2023. The IMF also reported Iraq's economy is projected to rebound in 2024...
Iraq needs more sustainable non-oil growth according to...the IMF mission.
OPEC Warns Of The Disappearance Of Oil: This Is What Its Repercussions Will Be, 11 MARCH
OPEC Warns Of The Disappearance Of Oil: This Is What Its Repercussions Will Be
Arab and international Economy News - follow up The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, warned of the repercussions of the disappearance of oil in the future.
Al-Ghais said in his article, “If oil disappeared tomorrow, there would be no jet fuel, gasoline, or diesel. Internal combustion engine cars, buses, and trucks would be stranded. Planes would stop, diesel-powered freight and passenger railways would stop, and people would not be able to travel.”
“Go to work, children will not be able to go to school, the shipping industry, which transports goods and passengers, will be devastated, there will be no point in calling emergency services, and the majority of ambulances, fire trucks, police cars, rescue helicopters and other emergency vehicles will be idle.”
He added: “Most phones and computers will also disappear because their plastic components are derived from oil, so it will be difficult to find a way to communicate with emergency services,” noting: “The construction sector will also stop, as diesel-powered vehicles will break down, and excavators, bulldozers, dump trucks, and cranes will remain.”
Cement mixers, vibrating rollers and compact cranes are out of service, and it will not be possible to build new homes or buildings or carry out vital maintenance work.”
He continued: “If oil disappears tomorrow, petroleum products will disappear with it, and this would affect the production of electric cars, and with supply chains disrupted, the structure of lithium batteries will also be affected, as the lithium battery consists of four parts, and the separators are microporous membranes, made Usually from petroleum-based polyethylene or polypropylene products, the petroleum-derived synthetic rubber used in car and bicycle tires will cease to exist.
Lawns, harvesters, balers, sprayers, and seeders will stop working, and the food containers needed for storage and preservation will not be available. Petroleum coal, a by-product of oil refining, is used as a feedstock in the manufacture of synthetic fertilizers, which are important in increasing crop productivity. This will likely result in food shortages.
He went on to say: “If oil disappears tomorrow, it will be catastrophic for health services everywhere, employees will lack the ability to move, and basic supplies will be stranded,” pointing out that “petroleum is an essential raw material for medicines, plastics, medical supplies, latex gloves, and pipes.”
Medical, medical syringes, adhesives, some bandages, antiseptics, hand sanitizers, cleaning supplies, prosthetics, artificial heart valves, resuscitation masks, stethoscopes, MRI scanners, insulin pens, injection bags, drug packaging, face masks, equipment Personal protection is largely derived from petroleum-based materials.”
He stated that "equipment used in medical research, such as microscopes, test tubes, and protective glasses, usually contains components derived from petroleum.
The chemical structure that produces aspirin begins with benzene derived from petroleum, where benzene is converted into phenol, which in turn is converted into salicylic acid, then... It is converted into acetylsalicylic acid, which the world knows as aspirin, and it is difficult to imagine a modern hospital without this group of essential petroleum products.” https://economy-news.net/content.php?id=41342
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