Sudani is really doing a remarkable job. ...This project [oil pipeline] he's getting ready to fund, if it's successful and he pulls this off, this is really going to change the landscape for Iraq, especially against other oil powerhouses in the region...This is going to be a pretty big move.
An RV and a revaluation is the same thing. People often confuse a reinstatement and a revaluation...they're two different things...Not only is a revaluation possible but Iraq has done it a few times already ...Iraq revalued their currency or I should say in this case devalued the currency, it went from 1,190 dinars, dropped down to 1450 then revalued up to 1,320 dinars. So when people say, 'Man the Iraqi dinar is never going to revalue.' I always go, 'What do you mean? It has revalued a few times already. As a matter of fact, several times over the past two decades.'
IRAQ IS PREPARING TO ESTABLISH A PROJECT THAT WILL CHANGE THE OIL MAP.. WILL IT AFFECT ENERGY PRODUCERS?
Iraq’s budget for the current year 2024 allocated an amount of up to 4.9 billion dollars to establish a pipeline extending from Basra in the far south of Iraq on the waters of the Gulf, to the city of Haditha, located in the far west of Iraq within the Anbar Governorate bordering Jordan and Syria, which means the return of life to the Iraq project – Jordan, which has been witnessing political opposition inside Baghdad for years, stipulates that Iraqi oil be exported through Jordan to the world via the Mediterranean, given that the project was essentially linked to extending the oil pipeline through two stages, the first to Haditha, which is the longest, and the second to enter neighboring Jordanian territory.
For years, the project has witnessed controversy regarding its economic feasibility, in addition to the opposition of political and armed forces and parties allied with Tehran, describing the project as allowing Iraqi oil to reach the Israeli occupation. However, the proposals presented by economists and oil experts confirm that opening a third export outlet to Iraq will change the waters of the Arabian Gulf and Turkey. It will give Iraq an advantage over Iran and Saudi Arabia in terms of export diversification, especially in times of military and political tensions in the Middle East.
Advisor to the Iraqi Ministry of Oil, Ahmed Al-Omar, said that the arrival of the pipeline to Haditha, western Iraq, means that Iraq can transport its oil not only through Jordanian territory and then Aqaba, but also through the Syrian port of Baniyas.
Al-Omar added, “The project will change the map of the oil industry and production in the region and give Iraq a great advantage over other oil neighbors.” By approving the amount allocated to start the project, according to the age, the government will begin work on the implementation phase, stressing that Iraqi companies will undertake work on it, and the pipeline will be implemented through the Iraqi Ministry of Industry as well.
STRATEGIC PROJECT
Director General of the Petroleum Projects Company, Ali Ward Hammoud, said, “The Basra-Haditha oil pipeline project is considered one of the most important strategic projects for the movement of oil in Iraq, and it strengthens the economy by enabling the country to export oil through new ports.”
He added, “The oil produced from the southern fields is exported through our ports and loading points overlooking the Gulf, which is the only outlet for most of Iraqi oil currently, and with the presence of geopolitical challenges in the region, the Ministry of Oil has taken it upon itself to diversify export outlets, as over the past decade it prepared a study.” “For the northern export system, with the help of the most important international consulting companies, and developing appropriate plans to develop new export outlets to serve the expansion of oil production in the country through the licensing rounds proposed by the ministry.”
He continued, “The Basra-Haditha pipeline falls within this trend. The size of the pipeline is 56 knots, and has a capacity to secure the export of two million and 250 thousand barrels per day. It will be manufactured by Iraqi hands, and the bulk of it will be manufactured by the Iron and Steel Company affiliated with the Ministry of Industry, and it provides new export outlets.” Iraqi oil is transported to European and North American countries, in line with the development road project and the government’s endeavor to make it a global energy corridor, in addition to its role in transporting goods between the East and the West.”
He confirmed that “there is an intention to connect the pipeline in the future to the port of Tartous on the Mediterranean Sea, after achieving appropriate security conditions in Syria, through a pipeline established for this purpose and linking the Haditha warehouse to the port of Tartous,” he said.
IRAQ TOWARDS NEW MARKETS
According to Iraqi political sources, the beginning of the project was in 1983, when the Iraqi and Jordanian sides agreed to extend a pipeline from Basra to the port of Aqaba on the Red Sea, passing through Jordanian territory. At the time, both sides demanded guarantees from the United States so that Israel would not target the pipeline.
The sources state that the government of Muhammad Shiaa al-Sudani seeks to start the project as soon as possible, because the pipeline represents a new type of outlet for Iraqi energy exports, specifically oil, and it also provides the opportunity for Iraqi oil to reach new markets in Europe, as well as sustainable and diversified economic gains and financial returns. In addition to participating and investing in international manufacturing sectors.
Although Iraq’s financial budget for the current year included the new pipeline project at an amount estimated at approximately 6.5 billion Iraqi dinars ($4.9 billion dollars),representatives from Basra Governorate confirmed that they would obstruct the project.
Member of the Iraqi Parliament, Hadi Al-Salami, stated, “What is strange about this project is that it was rejected by most of the Iraqi parties during the period of Mustafa Al-Kadhimi’s (previous) government, but the parties themselves currently agree to it,and we do not know what the reasons are, especially since information is scarce about it, and we do not know “The reasons for the government’s secrecy about it.”
(Mnt Goat – Why this change of heart about the project? Like a said before a “spigot” is now opened and it’s pouring now. That’s the difference. The global entities have now said that now is the time for Iraq to move ahead aggressively. This, as we can now see, is making all the difference in seeing more and more progress. Yes, it’s kind of spooky too in a way to see how there is secret hidden power structures that can influence things so quickly when they want to.)
Al-Salami explains, “Politicians and representatives in Iraq do not have sufficient information about the pipeline project, and we demand to know the economic feasibility of the project from the government’s point of view.”
The consultant in international transport economics, Ziad Al-Hashemi, pointed out that “the Basra-Aqaba pipeline project is a strategic project to raise the level of cooperation between Iraq, Jordan and Egypt, and to enhance the level of inter-relations, whether political, security or economic, and that the passage of the oil pipeline through a regional country like Jordan will not be exploited.” This pipeline is intended to put pressure on Iraq in the future, and this will ensure the smooth flow of Iraqi oil flows without obstacles.”
Al-Hashemi continues by saying, “The project raises fears that the pipeline will be exploited to supply the Israeli entity with Iraqi oil in response to supposed Western requirements or pressures.”
Al-Hashimi added, “One of the problems that the project may face is the refusal by some pivotal regional countries to hinder Iraq’s attempts to diversify Iraqi oil export outlets towards the West, in addition to the security pressures and stability problems that still constitute an obstacle to the completion and success of any Iraqi project, let alone About the possibilities of opening new outlets for corruption inside and outside Iraq due to the high construction costs.
In turn, oil expert Kovind Sherwani considered that “the Basra-Haditha oil pipeline project falls within the framework of the first phase of a project extending to the port of Aqaba in the Mediterranean, which will provide a new export outlet for Iraq.”
He continued, “We also believe that it is necessary to revive the Kirkuk-Ceyhan line, which used to transport up to 400,000 barrels per day, in addition to the investment possibility in transporting Nineveh and Salah al-Din oil, with a capacity that could reach one million barrels per day, which provides export outlets.” A mission for Iraq.”
Article: "DETAILS OF THE MEMORANDUM OF UNDERSTANDING SIGNED BETWEEN IRAQ AND HONEYWELL OF AMERICA"
Quote: “The memorandum that was signed aims to develop projects for developing refineries...noting that “raising the refinery capacity to 40 percent will add value to the crude oil produced and lead to raise financial returns and thus support the national economy.”Folks, they just told us they will be expanding their oil capacity...Iraq will also be selling these refined oil products to the rest of the middle east and probably Europe and the US.
How much more revenue will Iraq generate before they finally give us the new rate? ...Yes, there is a plan in place...all the signs are pointing now to much, much sooner than later. I certainly hope its June...
...the economic and financial advisor to the Prime Minister, Mazhar Muhammad Saleh, proposed an “unusual” idea to establish a sovereign wealth fund. ...Unlike the CBI reserves that are mandated by the IMF to cover the government expenses in time of emergencies, the SWF is more flexible and gives an additional pad of money for stability and security. This fund will also cut down the reliance on oil revenue and help them move more quickly out of the rentier economy. WOW!
DETAILS OF THE MEMORANDUM OF UNDERSTANDING SIGNED BETWEEN IRAQ AND HONEYWELL OF AMERICA
Today, Monday, the Ministry of Oil clarified the details of the memorandum of understanding signed with the American company Honeywell to develop refineries, and while it indicated the Prime Minister’s directive to prepare a study to establish a pipeline network adjacent to the development road, it revealed projects that will enter service soon related to raising refining capacity.
Al-Zobaie explained, “The memorandum that was signed aims to develop projects for developing refineries
and to meet what was directed by the Prime Minister regarding the refinery capacity reaching 40 percent of the production capacity of crude oil,” noting that “raising the refinery capacity to 40 percent will add value to the crude oil produced and lead to to raise financial returns and thus support the national economy.”
He pointed out that “7 projects were discussed regarding refineries, with a capacity of 70 thousand barrels for each project, in the governorates of Maysan, Dhi Qar, Muthanna, and Najaf Al-Ashraf, in addition to the third unit in the Al-Dawra, Haditha, and Qayyarah refineries.”
Iraqi PM Sudani has announced on Iraqi RV that before the end of the holiday, which was this Wed. 19, June, that the Iraqi citizens will have their new exchange rate, access to new ATM's and the lower denominations.
Question: Are all currencies going to float? IQD, dong...etc…? MarkZ: I would not look for much of a float because we are supposed to peg to assets...
Comment:
An intel guru...says Iraq is following Dr Shabibis plan to a T. MarkZ: They are.The plan was to increase the value, put lower denominations in circulation, and put the larger notes we hold in the banks for foreign reserves. Shabibi planned it all out and told us what would happen.
I do feel comfortable saying it has started…we are seeing movement…My understanding may be a little off as to how they are executing it...It’s been pretty quiet from Iraq sources over the weekend. They seem to finish things first over there and then tell us.