112 billion barrels of oil .. Battle for control of Iraq's wealth

by **Rocky** Wed 27 Nov 2019, 8:27 am

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112 billion barrels of oil .. Battle for control of Iraq's wealth

by Rocky Wed 27 Nov 2019, 8:27 am

[size=47]112 billion barrels of oil .. Battle for control of Iraq's wealth[/size]

[You must be registered and logged in to see this link.]The writer believes that the drift of Iraq into chaos to become a failed state is inevitable, and expected to drag with China (European)
The Spanish newspaper Poblico reported on Saturday the ongoing protests in Iraq against what it called the corrupt politicians who govern the country, saying that millions of Iraqis live in extreme poverty, without drinking water or electricity, even though they are walking on a sea of black gold.
According to the reporter Armanian Nathanin - in a report published in the newspaper - the oil revenues entered into the budget of Iraq between 2003 and 2018 about $ 850 billion, and wondered about the fate of the huge reserves of Iraqi oil, which is the second largest oil reserves in the world after the US invasion of the country in 2003.
The writer explains in this regard that the political crisis in Iraq, as well as the internal and regional dimensions, add to the international crisis, that is, the battle for control of about 112 billion barrels of oil. In addition, China has become the first country to import Iraqi crude since 2003.

Big Difficulties
The author noted that the United States has failed to turn the Iraqi oil industry into national companies, having been state-owned since 1972. The six major private companies Which controls about 15% of global market production, such as BP, Royal Dutch Shell, ExxonMobil and Chevron; are struggling to monopolize this production, while the majority of the governments of the producing countries (mostly members of OPEC) - which has 85% of production - To privatize the industry.
In addition, Washington succeeded in getting Saudi Arabia to sell part of its oil to Standard Oil of California and Texas Oil Company, which founded Aramco in 1933 to exploit its reserves. As for Iraq, the regime cannot even ignore the power, memory and heritage of the Arab nationalist movement that has ruled the country for decades.
At the auction held in April 2018, no member of the Big Six won the tender. Moreover, a large number of companies, such as ExxonMobil, Total, Russia's Zarobizneft and Lukoil, did not take part in it until they reached secret agreements with corrupt Iraqi leaders.

Iraq also awarded three tenders to the UAE-based Crescent Petroleum, two tenders to China's Geo-gad and a block for the Hong Kong-based United Energy Group, as well as other tenders for Italy's ENI and France's Total.
The writer pointed out that security concerns, political instability and division in the ruling coalition could lead to disruption of Iraqi oil production, pointing out that the Kurdistan region of Iraq - which includes about 40% of Iraqi oil - is currently exporting half a million barrels per day in isolation from the central government, and the situation Security in the country is very fragile. Dozens of armed groups, some of them self-employed, continue to control their oil fields and transport routes.

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She pointed out that the protests reached the city of Basra, the center of the oil industry in the country, where Iraq sends from the port of the city 90% of its oil exports, or about 3.5 million barrels per day.
Moreover, the dilapidated infrastructure of refineries, pipelines and facilities in the port of Basra makes it impossible for Iraq to achieve its goal of exporting nine million barrels in 2020.
Water shortages could also cause conflict with Turkey and Iran, two countries that share important rivers with Iraq. Moreover, Tehran is not interested in increasing Iraqi production, not only because it will reduce prices, but also because it will occupy its traditional markets.

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Iraq was the first country in the region to sign an agreement with Beijing to join the Silk Road Project (Getty Images)

China 's role
and pointed out thatwriter of three weeks beforeoutbreakprotests, visited Iraqi Prime Minister Adel Abdul MahdiChina, accompanieddelegation consisting of 55 members, to becomefirst country inregionsignagreement with Beijing to join the mega Silk Road.

For its part, China received long-term concessions and discounts on Iranian oil sales under a bilateral agreement for the next 25 years, having lost investment in South Sudan, the Democratic Republic of the Congo, Zimbabwe and Libya, where it had to evacuate 35,000 workers on the eve of the NATO attack. NATO) on this country.
Because of US President Donald Trump's sanctions against Tehran, China has returned to Iraq, aware of the great dangers it faces with the United States and Iran, a country whose leaders have repeatedly said: "If Trump does not allow us to export our oil, no one can do it in the Gulf." .
Iraq is a well-known country for China. In the 1980s, the China Petroleum Engineering and Construction Company was already operating in the country, although it had to leave in the 1990s because of UN Security Council sanctions against the Iraqi people, with a vote approved by China itself. . After Beijing returned home in 2007, it had to look for other formulas to gain a place in the US-controlled country and a battleground between regional powers.
In 2008, the China Petroleum Engineering and Construction Company was the first foreign company to get an oil contract in Iraq, investing about 2 million euros in the Ahdab field, which houses about 100 million barrels. Since 2014, China is the largest foreign investor in Iraq.

After that, bilateral trade between the two countries exceeded the value of $ 30 billion in oil. China, which imports 70% of the total 610 million tons of crude oil it consumes, has made Iraq the fourth source after Russia, Saudi Arabia and Angola.

In Basra, specifically in the Majnoon oil field, China will generate between eight and nine billion dollars in profits annually.

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China National Petroleum Corporation contributed to the development of Iraqi oil fields (Reuters)

Chinese tactics
The author points to amnesty for about 80% of the $ 805 billion debt that Saddam Hussein's regime contracted with Beijing, joining the UN initiative for the International Compact with Iraq, and promising a $ 6.5 million grant for social spending, such as public health and education. , Merge with the government organization to market Iraqi oil in order to protect its efforts across the country, offering more favorable terms than its competitors' conditions and accepting the most stringent tax conditions as well as giving away big profits in return for not losing this market.
In addition, the author pointed to other Chinese tactics, most notably compliance with the laws of the Iraqi government, and avoid interference in its internal affairs, and guided the principle of economic pragmatism, and focus on less explored and more stable areas, where other companies can not settle down, and buy corporate acquisitions Others such as Sinopec, which owns the third largest refinery in the world, and Addax Petroleum Oil and Gas, which operates in Iraqi Kurdistan, and establish energy cooperation with other companies, in order to increase their chances of winning projects.
As a result, the Chinese oil company PetroChina has joined Exxon to implement infrastructure projects. In this context, China National Petroleum Corporation has partnered with BP to develop the Rumaila oil field, the largest in Iraq by 17 billion barrels.

In addition, the China National Offshore Oil Corporation (CNOOC) has partnered with the Turkish Petroleum Corporation to control 67% of Maysan Oil Company's participation.
It presented itself as a mediator in the conflict between Baghdad and the Kurdistan region of Iraq in relation to the crisis of oil areas, and ensure that the region exports about 550 thousand barrels per day from its region, and Kirkuk through the Iraqi Oil Marketing Company (SOMO). In return, Baghdad will allocate 17% of the federal budget to the Kurds. In this case, should Baghdad or the provinces be controlled? It seems that the failure of the Kurdish separation is temporarily leaning in favor of Baghdad.
Other tactics include launching the Silk Road Initiative with significant investments in Iraq's infrastructure and protecting some 12,000 workers from attacks in fortified camps.

In fact, during ISIS attacks, the Chinese in Iraq suffered no casualties. Beijing then donated an estimated $ 10 million in humanitarian aid to the victims of the organization.

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Given the impossibility of political leaders in Iraq to divide wealth among poor citizens, coupled with the inevitable conflict between Iran's interests in Iraq and what US imperialism calls, it seems that Iraq is drifting into anarchy into another failed state. To drag with it China.
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