Academy offers several options for optimal investment of crude oil

Academy offers several options for optimal investment of crude oil

 

5/29/2017 1:39

BAGHDAD / Imad Emirate of
Iraq at this stage , standing in front of several options for how to exploit its oil wealth to achieve the welfare of the community for being - according Baanat- has proven oil reserves and the potential to make it the top countries of the world as an annual international demand for oil is increasing. Academic Dr. Abdul Sattar Abdul - Jabbar Musa between "morning" that there is a fierce debate and differences of current relate to actively exploration, drilling, production and international marketing, explaining that the oil and gas law is still the focus of controversy as it is not passed so far disrupts the process of reform in this vital sector is important the Iraqi economy and its future investments and makes it vulnerable to the jurisprudence because of the absence of a law regulating
it.
Iraq has an enormous wealth of crude oil and natural gas can provide a high level of luxury, but that wealth has not exploited according to this standard, since oil and extracted the discovery of international and domestic reasons, have seized control of monopoly companies that wealth in general since the early twentieth century until a decade seventies of that century, and after the control of the state drained by the destructive wars that wealth.
Moussa continued some of the possible alternatives for the management of the oil sector could be the public sector in which the government controls the exploration, drilling, production and marketing activities management system format, it is possible in any effective rental of private foreign companies to provide a service in that area , as applicable in most of the Arab Gulf states .
He alluded to the possibility of adopting the franchise system and also this system was prevalent in most oil -producing countries until the seventies of the twentieth century and in Iraq until 1972 , as this contract includes the granting of a foreign company or more contracts for the extraction of crude oil and become a contract belong to that company can dispose of it either for sale or liquidation and the company paid a rent which is a fixed amount for each barrel of product as well as paying tax on profits.
Moussa pointed to the possibility of the adoption of participation contracts as well as under this system holds the company or a group of foreign companies to provide the necessary financing to complete the exploration and extraction , including the infrastructure necessary to do so, and then the extracted from the crude oil quantities are divided into the first two quantities called the cost of oil and go to foreign ownership to the company to cover its costs and often determine the upper limits of this amount by 40 percent and the remainder is called profit , which is divided between foreign companies and countries owning oil agreed rates , as well as for the royal countries on oil Return profit taxes and the proceeds from the total production, the state may find the owner is also a trading partner in the contract and provide the share capital and receives the same percentage of cost oil and profit oil.
And Musa the possibility of adopting contractor contracts or service under which the owner of the state oil to give foreign companies a specific part of activities in the oil sector with carrying burdens and risks to meet the share agreed in the events that made up later, adding that in many cases , the oil - exporting state based on that economic base ( base ratio of oil reserves to production), and adopt this method of extraction in many of the oil companies in the world, which is to be that the quantities extracted from the oil does not exceed 10 percent of the oil reserves.

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