The U.S. Treasury met with Iraqi officials in January to strengthen the IQD by allowing other currencies for deposits to enhance its global market position.
Highlights
🇺🇸 U.S. Treasury’s involvement in Iraq’s currency strategy.
🌍 Discussions held in Abu Dhabi for economic collaboration.
💼 Presence of major banks like JP Morgan Chase and Citibank.
💱 Agreement to support UAE Dirham and BRICS currencies.
🇪🇺 Inclusion of the Euro and Turkish Lira in financial plans.
🇮🇳 Indian Rupee and Chinese Yuan also approved for deposits.
📈 Aim to strengthen the Iraqi Dinar in the global market.
Key Insights
📅 The timing of the January meeting highlights a strategic push for Iraq’s economic stability.
🌐 Pairing the IQD with other strong currencies could create more trust among investors.
🏦 Involving prominent banks like JP Morgan Chase and Citibank signifies serious financial backing.
📊 The inclusion of currencies like the Euro and Turkish Lira indicates a diversified approach to currency management.
💼 The UAE Dirham and BRICS currencies’ acceptance suggests a shift towards non-Western economic alliances.
💵 Allowing multiple currencies for deposits enhances liquidity, making the Dinar more attractive.
🔗 Overall, these actions are crucial steps towards integrating Iraq into the global economy.
Iraq Prepares to Hand Over Kirkuk Oil Fields to BP for Development
Iraq is gearing up to transfer the management of its Kirkuk oil fields to British Petroleum (BP) for development and production enhancement. North Oil Company (NOC) has initiated a work plan aimed at maximizing production from the Kirkuk, Bai Hassan, Jambur, and Khabbaz fields before handing them over to BP. This move is part of a strategic agreement to boost the fields' output capacity.
Strategic Agreement with BP
A memorandum of understanding was signed by Iraq's Oil Minister Hayan Abdel Ghani and BP's CEO Murray Auchincloss, detailing the rehabilitation and development of the four oilfields under the North Oil Company in Kirkuk. This initiative is part of Iraq's broader effort to optimize its energy investments and increase oil production while exploring opportunities in gas and solar energy.
Profit-Sharing Model
The agreement between BP and Iraq will be based on a profit-sharing model. a structure designed to incentivize BP to enhance production levels while sharing the financial risks and rewards with the Iraqi government. This model is expected to be finalized by the end of the year, with both parties signing a confidentiality agreement before the data package for Kirkuk's fields and installations is handed over to BP.
Preparatory Activities by NOC
NOC is currently executing a drilling and rehabilitation plan, as well as well-activation activities without rigs, to speed up the preparation of well sites and complete each site within three weeks. The company is also laying pipelines and completing connections for wells in the Bai Hassan and Khabbaz oil fields to stabilize production levels and ensure all requirements for BP are met within the projected timeframe.
Economic Expert's Perspective
Economic expert Ali Khalil emphasized the importance of the contract between the Iraqi government and BP delivering tangible results in terms of increased production within a specific timeframe. Khalil noted that BP had a prior contract with NOC, and this new agreement must ensure that the British company achieves the desired outcomes for Iraq's oil sector.
Conclusion
Iraq's decision to hand over the Kirkuk oil fields to BP for development marks a significant step in the country's strategy to maximize its oil production and investment opportunities. The profit-sharing model agreed upon is expected to foster a mutually beneficial relationship between BP and the Iraqi government, driving economic growth and energy sector development in Iraq.
Shafaq News/ North Oil Company (NOC) has begun preparing oil wells in Kirkuk Governorate to ramp up production levels ahead of handing over the fields to British energy giant BP for development, a company source said on Friday.
The source told Shafaq News Agency, “NOC has initiated a work plan to maximize production from the Kirkuk, Bai Hassan, Jambur, and Khabbaz fields before transferring them to BP, which has been contracted to enhance their output.”
The source added that the company’s field division has been tasked with executing a drilling and rehabilitation plan this year, alongside well-activation activities without rigs. “The company aims to speed up the preparation of well sites, coordinating with the project division to complete each site within three weeks.”
In addition, the company is laying pipelines and completing connections for wells Bai Hassan 198 and 199, with a target to finish within a month. “Five well valves in the Khabbaz oil field are being connected, and damaged pipelines at the Shoraw station in Baba Dome are being repaired as part of the company’s efforts to stabilize production levels in northwest Avana, according to projected plans for the Kirkuk oil field.”
The source noted that NOC is expected to complete all requirements for BP within three weeks to a month. A meeting with BP representatives is scheduled to finalize the next steps for implementing the agreement aimed at boosting NOC’s production capacity.
Economic expert Ali Khalil told Shafaq News Agency, “The contract between the Iraqi government, through the Ministry of Oil, and BP must ensure that the British company delivers tangible results in terms of increased production within a specific timeframe.”
Khalil pointed out that BP had a prior contract with NOC, signed in 2013, valued at $100 million, which ended in January 2020. “The previous contract included 3D seismic studies of the reservoir, building on existing 2D data. Estimates suggest the Kirkuk field contains about nine billion barrels of recoverable oil,” he added.
On August 1, Prime Minister Mohammed Shia Al-Sudani oversaw the signing of a comprehensive oil memorandum of understanding between Iraq’s Ministry of Oil and BP to develop the Kirkuk fields for oil and gas production. Iraqi Deputy Prime Minister and Oil Minister Hayan Abdul-Ghani signed the agreement, while BP’s CEO Murray Auchincloss represented the British company.
The memorandum covers the rehabilitation and development of four NOC fields in Kirkuk—Kirkuk (Baba and Avana Domes), Bai Hassan, Jambur, and Khabbaz. It also opens the door for potential agreements on other fields or exploration blocks, with both parties seeking to maximize energy opportunities in the region to boost oil output and invest in gas and solar energy projects.
I assume everyone is excited as to what is happening...This is what we have been waiting for, for such a long time. All indicators are pointed to this week. Iraq is already done, I suppose. The QFS is activated. All is ready to go...All is lined up for this week.
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Tues. 10 Sept 2024 Wolverine
I assume everyone is excited as to what is happening,and hopefully by tomorrow I will be waking up with a rainbow next to my window.
There are certain things I cannot tell, as it is all confidential.
This is what we have been waiting for, for such a long time. All indicators are pointed to this week.
Iraq is already done, I suppose. The QFS is activated. All is ready to go.
Certain funds are liberated in Brazil. I have spoken to quite a lot of bondholders in Brazil they have confirmed that certain platforms are liberated.
The Pentecostal group is getting ready for this event, and every guest going to that event will get personal codes to activate their accounts, so they will have access to their funds. There are a lot of people going to Bogota and they will have a huge event there. The Pentecostal group that did not go to the event, like people like myself, will get their money in Mid-October, but I don’t care – I can wait.
I have been told that notifications may come out tonight, maybe midnight. They assured me they are coming through. They also told me, “Wolvie, get ready for that opera! We are going to give you a call to sing that opera with all your might! So it was an emotional call. We have all been through a lot together.
All is lined up for this week.
The German bonds and Dragon bonds will go first. If you have Dragon Bonds, you are absolutely blessed, and you may get paid tomorrow. It is a process. It does not mean just because you have not got it you will not get it.
The EBS might come at the time we get our blessing. We would probably go at nighttime with military escort so nothing can happen with us with military escort and do our exchange with a military escort. This may only be in America, not sure around the world.
Wait for notifications, they will tell you where you will have to go. All will be your notifications.
I’m very confident we will celebrate tomorrow! God bless you all…Wolverine
Iraq's Pursuit of Enhanced Economic and Investment Cooperation in 2024
In 2024, Iraq is demonstrating a strong commitment to enhancing its economic and investment cooperation with global partners, aiming to diversify its economy and reduce dependency on oil. The President of the Republic, Abdul Latif Jamal Rashid, affirmed Iraq's eagerness to strengthen such ties, underlining the country's readiness to provide a conducive environment for strategic development projects.
Iraq's Economic Context and Challenges
Iraq, one of the world's most oil-dependent nations, has been grappling with the volatility and rigidity of its oil-centric economy. Despite a gradual recovery from the dual shocks of the oil and COVID-19 crises, the country faces significant unemployment and economic challenges, especially among displaced individuals, returnees, and women job-seekers.
Seeking Diversification and Stability
Recognizing the need for economic diversification and stability, Iraq has been actively seeking partnerships to boost non-oil sectors and secure fiscal sustainability. Recent efforts have included discussions with the International Monetary Fund (IMF) on fiscal adjustments and strategies to enable private sector development.
Bilateral Cooperation and Investment Opportunities
Iraq has also been engaging in bilateral dialogues to explore investment opportunities and partnerships. A notable example is the Qatari-Iraqi Joint Committee for Economic and Trade Cooperation, which met in July 2024 to discuss avenues for cooperation, particularly in industry, infrastructure, renewable energy, and digital transformation.
Political and Economic Agendas
Iraq's Prime Minister, Mohammed Shia al-Sudani, has emphasized the importance of focusing on economic, educational, and people-to-people domains during his visit to the United States.
Despite domestic and external pressures, al-Sudani is navigating the country's political and economic agendas with a view to fostering comprehensive bilateral relations.
Conclusion
Iraq's initiatives in 2024 reflect a strategic shift towards economic diversification, investment in non-oil sectors, and the strengthening of bilateral relationships. This approach is expected to create a more resilient economy, attract foreign investment, and foster sustainable development in the face of global economic challenges.