Major energy companies are withdrawing from the region

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[size=52]Major energy companies are withdrawing from the region[/size]

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Baghdad: Huda Al-Azzawi

The American company, “Baker Hughes”, the global giant in the field of oil field services, announced its withdrawal from work in the Kurdistan region of Iraq, in compliance with the decision of the Federal Supreme Court and the instructions of the Ministry of Oil regarding the production and export of oil and work in the region, and the company’s mentioned move opened the door wide to speculation and expectations of the withdrawal of international companies. Major American "Halliburton" and "Schlumberger" to join Hughes Company.
The economist, Nabil Al-Marsoumi, said in an exclusive interview: "There are 57 contracts between international companies and the Kurdistan region since 2005 until now, and dozens of those companies are small and medium, and few of them are giant companies."
And he indicated that "the dispute now has become a sharp and radical dispute between the region and the center after the decision of the Ministry of Oil to place the oil companies operating in the region that did not cut their relationship with the region within the (black list) and to terminate their contracts, so the American company (Baker Hughes) for oil services announced its compliance with the decision of the Federal Court. And its withdrawal from work in the region, especially since it has a large business in southern Iraq, specifically in the fields (Gharf and Nasiriyah) at a cost of 370 million dollars, and it also has large contracts with the federal government, and it is one of the most important oil services companies in the world, and this is the first oil company Major withdraws from the region.”
Al-Marsoumi expected “the withdrawal of the American companies (Halliburton) and (Schlumberger) in the coming days,” noting that “the withdrawal of the American company (Baker Hughes) for oil services, although it is one company, but it will certainly affect oil production in the region, it does not only need To companies to extract oil, but to companies that provide logistical support in terms of drilling and fertilization.”
The economic expert pointed out that "most foreign companies that have work in Iraq, especially those that have large businesses in southern and central Iraq, will end their business in the region for fear of their interests."
In line with the expectations of the expert al-Marsawy, a member of the Parliamentary Economy and Industry Committee, Representative Soran Omar, said in an interview: “It is expected that we will witness other withdrawals of international companies from the region that have major projects in southern Iraq, which preferred their interests with the federal government in a legal manner over problems and disputes.” between the region and the center.
With regard to the extent to which the withdrawal of US companies contributed to the Kurdistan Regional Government’s response to the decision of the Federal Court and the authorities of the Ministry of Oil, he stated that “all talks and negotiations so far are about positions and not about the region’s entitlement or the problems between it and the center, especially with regard to oil and gas, and it was necessary to Solve the problem since the beginning of the Federal Court issued its decision to cancel the oil and gas law in the Kurdistan region.”
Regarding the economic effects of the withdrawal of companies from the region, Omar saw that “the withdrawal of foreign companies operating in the Kurdistan region will greatly affect the regional government in economic terms, especially since 90% of the revenues of the regional government come from oil imports, and therefore the withdrawal of these companies will stop the export of Oil, and this means ending the region economically, and we hope that this will not happen and that we will not reach this point.”
He added, "I believe that international companies are not in their interest to fight this battle with the Federal Court," noting that "the only solution to this problem is the issuance of (the oil and gas law) in the Federal House of Representatives."

 Editing: Muhammad Al-Ansari
Disclaimer: All published articles represent the opinion of its authors only[/size]
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