Reuters: BP's deal with Iraq will be based on profit-sharing model
An agreement with BP to develop oil and gas fields in Kirkuk will be based on a profit-sharing model, and a final deal is expected by the end of this year, two oil ministry officials told Reuters.
Iraq and BP signed a preliminary agreement this month to develop four oil and gas fields in the Kirkuk region of northern Iraq, an area where BP estimates about nine billion barrels of oil could be extracted.
The two officials said the ministry and BP, which is returning to the region after an absence of about five years, are expected to sign an agreement, the terms of which will not be disclosed, this week under which Iraq will hand over a data package for the four Kirkuk fields and their facilities.
The two officials spoke on condition of anonymity because they were not authorized to speak to the press.
BP has not yet responded to a request for comment.
BP withdrew from the area in late 2019 after a service contract signed in 2013 expired without reaching an agreement to expand the field. link
PARLIAMENTARY INTEGRITY COMMITTEE PREPARES TO QUESTION THE GOVERNOR OF THE CENTRAL BANK OF IRAQ
Member of the Parliamentary Integrity Committee, Hadi Al-Salami, revealed on Thursday that his committee has been following up for more than a year on the file of ending the assignment of the Governor of the Central Bank, Ali Al-Alaq, from his position.
Mnt Goat: Oops they did it again… You see, Alaq can’t reveille the entire plan to the committee as they would see a huge spur of corruption later is selling and buying dinar. Its called insider trading…. Get it?
CENTRAL BANK GOVERNOR’S RESIGNATION: ADMISSION OF FAILURE OR ESCAPE FROM THE REPERCUSSIONS OF THE FINANCIAL CRISIS? The Governor of the Central Bank of Iraq, Ali Al-Alaq, submitted a request to relieve him of his post to Prime Minister Mohammed Al-Sudani, amid a series of issues and problems in the financial and banking sector in Iraq, which include the failure to control the dollar exchange rate on the black market.
Mnt Goat: Remember that the GOI has not yet accepted his resignation. Alaq does not want to leave the CBI as he feels he is doing a great job but his plan takes time but they are getting impatient. Then the Feds stepped in…..
😊 AFTER SANCTIONS.. A NEW AMERICAN STEP TOWARDS IRAQI BANKS The United States of America did not stop at punishing some Iraqi private banks by preventing them from participating in the currency auction held by the Central Bank of Iraq daily to sell the dollar, but the US Treasury Department recently returned and informed it of the need to merge and close some of those banks, thus deciding their fate after many suspicions had been raised about them.
Mnt Goat: Yes, yet another reason why the US Treasury and Feds have set up shop in the CBI. They are going to reorganize the entire banking system in Iraq. Literally almost start from scratch!
AN EXPECTED MEETING IN NEW YORK. Al-Alaq said that “there will be meetings with the Federal Bank and the US Treasury Department at the end of August to review all aspects related to foreign transfer operations and discuss sanctions on some banks
THE CENTRAL BANK OF IRAQ HAS PLACED ZAIN IRAQ ISLAMIC BANK UNDER GUARDIANSHIP, in a move that reflects the bank’s unsound practices and unsatisfactory management performance, threatening the independence and integrity of the Iraqi banking system.
Mnt Goat: Oops they did it again… Yes, yet another reason why the US Treasury and Feds have set up shop in the CBI. They are going to reorganize the entire banking system in Iraq. Literally almost start from scratch!1
TRADE BANK OF IRAQ INVITES EXCHANGE COMPANIES TO PARTICIPATE IN THE DOLLAR SELLING WINDOW It is noteworthy that the Central Bank of Iraq decided on July 4, 2024 to start selling dollars to travelers, exclusively through corporate and banking outlets at international airports.
😊 RAFIDAIN ANNOUNCES THE IMPLEMENTATION OF THE COMPREHENSIVE BANKING SYSTEM IN 37 BRANCHES The media office of Rafidain Bank stated in a statement received by the Iraqi News Agency (INA), that “in implementation of the government program to move from paper transactions to electronic ones to provide the best services to citizens, the comprehensive banking system was applied.
Mnt Goat: Opps, here it is again the “digital transformation! You think it’s important? You think the Feds and US Treasury are pushing this to combat corruption?
DUE TO FINANCIAL VIOLATIONS, A REPRESENTATIVE DEMANDS THAT SUDANESE TERMINATE THE ASSIGNMENT OF GOVERNOR OF THE CENTRAL BANK Today, Monday, member of the Parliamentary Integrity Committee, Hadi Al-Salami, called on the Prime Minister to end the assignment of the Governor of the Central Bank, Ali Al-Alaq, stressing that he will direct oral questions to the Governor of the Central Bank.
Mnt Goat: Oops they did it again…
😊 GOVERNMENT ADVISOR: INCREASED EXPORT CAPACITY BOOSTS CURRENCY VALUE financial advisor to the Prime Minister, Dr. Mazhar Mohammed Saleh, stated that the global currency rates are determined in two main ways: floating and fixed prices, indicating that there are many local and international factors that control the strength of the currency, such as supply and demand, interest rates, inflation, growth in the local economy, trade balance, and others.
😊 A NEW EPISODE OF THE ECONOMY IN A WEEK PROGRAM. AGAIN ABOUT THE PROJECT TO REMOVE ZEROS FROM THE IRAQI DINAR AND ALSO ISSUE A NEW CURRENCY A training film for the Iraqi citizens on the project to delete the zeros is broadcast throughout Iraq. You can watch the film and get more info HERE.
Mnt Goat: Oops they did it again…
😊 CENTRAL BANK PREPARES FOR NEW TALKS WITH THE FEDERAL RESERVE : CANCELLATION OF ELECTRONIC APPLICATION FOR TRAVELERS’ DOLLARS TO PREVENT FRAUD In response to what Al-Zaman published on its front page in previous issues, the Central Bank obligated banks to ensure that the process of purchasing dollars and depositing dinars must be done in person by the beneficiary exclusively.
😊 CENTRAL BANK GOVERNOR PARTICIPATES IN A WORKSHOP SPECIALIZED IN ELECTRONIC PAYMENT The Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, participated in a specialized workshop on accelerating the transition to electronic payment......TO BE CONTINUED
Al-Nujaba: The truce is over and the option of striking American bases in Iraq is now available
The Al-Nujaba Movement - one of the Iraqi factions involved in the so-called "Islamic Resistance in Iraq" - considered on Tuesday that the truce that was aimed at giving the government time to negotiate the withdrawal of US forces from the country has ended, and the options of targeting military bases have become available.
“The resistance factions in Iraq have ended this truce, and therefore all options are available to the resistance forces to target all American bases inside Iraq,” Haider al-Lami, a member of the political council of the al-Nujaba movement, told The National.
Al-Lami considered that there was "procrastination and delay" by America regarding the withdrawal of its forces during the talks with the Iraqi government.
"There will be a response in the coming days that may target more than one place, not necessarily in Iraq, Syria and Israel," added Al-Lami, who warned after the Babylon strike that such a move was under consideration.
He said that some forces will remain in the Kurdistan Region until September 2026 to supervise counter-terrorism operations in Syria. The situation there is different from Iraq, as ISIS is stronger in Syria and has strongholds. link
US PRESSURES PUSH THE CENTRAL BANK OF IRAQ TO CLOSE AND MERGE TROUBLED BANKS An informed source revealed that the US Treasury and the US Federal Reserve have asked the Central Bank of Iraq to take urgent and strict measures to merge the banks restricted from using the US dollar.
Mnt Goat: Oops they did it again… Yes, yet another reason why the US Treasury and Feds have set up shop in the CBI. They are going to reorganize the entire banking system in Iraq. Literally almost start from scratch!
😊 US TREASURY TAKES CONTROL OF IRAQ’S CENTRAL BANK TO COMBAT MONEY LAUNDERING Three informed sources close to the political and parliamentary decision-making process in Baghdad revealed extremely dangerous information confirming that the US Treasury Department has taken a permanent headquarters in the Central Bank of Iraq building.
Mnt Goat: Oops they did it again… Yes, yet another reason why the US Treasury and Feds have set up shop in the CBI. They are going to reorganize the entire banking system in Iraq. Literally almost start from scratch!
PARLIAMENT RETURNS THE OIL AND GAS LAW TO THE GOVERNMENT: IT MUST ADD PARAGRAPHS THAT KEEP PACE WITH GLOBAL DEVELOPMENTS
after amending paragraphs in it and reaching political consensus on it.
Mnt Goat: Oops they did it again… If you had half a brain and been reading the articles on this matter you can clearly see that Kurdistan needs the money they make stealing oil as all oil revenue is supposed to go to the general Federal fund in Baghdad. The HCL would finally make this illegal. Oh.. but the 2005 Iraqi Constitution already makes it illegal but it also mandated a referendum to clarify it.
😊 AL-SUDANI REVEALS PART OF HIS FIVE-YEAR PLAN 2024-2028: SERVICES AND DEVELOPMENT Prime Minister Mohammed Shia Al-Sudani launched the five-year national development plan (2024-2028), during a ceremony held today.
Mnt Goat: we will learn more about this in the coming weeks. We don’t need this fully implemented to get the RV.
😊 AL-ALAQ: THE FINANCIAL SITUATION IN IRAQ IS GOING ACCORDING TO PLAN The Governor of the Central Bank, Ali Al-Alaq, confirmed the stability of the financial situation in Iraq.
Mnt Goat: This is where the Alaq and the Feds butt heads…..
😊 IRAQ RAISES ITS GOLD HOLDINGS TO MORE THAN 148 TONS after it was 145.7 tons, which represents 10.02% of its total other reserves. Iraq advanced one rank to reach 29th place globally out of 100 countries included in the table, after it was ranked 30th.
Mnt Goat: Oops they did it again… There is a reason for raising its holdings in so much GOLD. Did you figure it out yet? You will in today’s Newsletter.
Shafaq News/ Iraq will share profits with BP (BP.L), from developing its giant Kirkuk oil and gas fields, two officials said on Tuesday, as the country moves away from low-margin service contracts to speed up production growth and lure back Western majors.
Several oil majors, including BP, in recent years turned to other countries offering better terms. They complained the traditional oil service contracts in Iraq that paid a flat rate for every barrel of oil produced after reimbursing costs, prevented them benefiting from rising oil prices.
Iraq and BP, which is returning after a nearly five-year absence, signed a preliminary agreement earlier this month to develop four oil and gas fields in northern Iraq's Kirkuk. BP has estimated the Kirkuk field holds about 9 billion barrels of recoverable oil.
The two oil ministry officials told Reuters the contracts with BP to develop the Kirkuk, Bai Hasan, Jambour and Khabbaz fields would be on a profit-sharing model.
BP declined to comment beyond its Aug. 1 statement on the preliminary deal.
Speaking on condition of anonymity because they were not authorised to speak to the press, the officials said the oil ministry and BP were expected to sign a confidentiality agreement this week, after which Iraq will hand over the data package for Kirkuk's four fields and installations.
A final agreement is expected by the end of this year, the officials added. BP had said it expected negotiations over the preliminary agreement to be complete early in 2025.
BP and the Iraqi oil ministry signed in 2013 a letter of intent to study developing Kirkuk.
That deal was put on hold in 2014 when the Iraqi military collapsed in the face of Islamic State's advance in northern and western Iraq, allowing the Kurdish Regional Government (KRG) to take control of the Kirkuk region.
Baghdad regained full control of the deposit from the KRG in 2017 after a failed Kurdish independence referendum, at which point BP resumed its studies on the field.
But in late 2019, BP pulled out of the oilfield after its 2013 service contract expired with no agreement on the field's expansion.
Iraq, the second biggest producer in the Organization of the Petroleum Exporting Countries behind the group's de facto leader Saudi Arabia, has the capacity to produce almost 5 million barrels per day.
Kirkuk was discovered in 1927 and marks the birthplace of Iraq's oil industry. Its fields produce about 245,000 barrels per day, the officials said.
BP said earlier this month that rehabilitating existing facilities, building new ones, where needed, and other measures could stabilise production and reverse decline at Kirkuk.
