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Yes Iraq – Baghdad
The oil expert, Furat Al-Mousawi, talked about the advantages that will be provided by the Iraq oil agreement with China, which will be through the sale of oil through prepayment, and while noting that the required amount from Iraq does not exceed 5% of the general output, he stressed that the agreement will not mortgage Iraqi oil as well. Rumored.
“The process of selling oil according to prepayment is a new experience in the world and in OPEC oil in particular,” said Furat Al-Mousawi, in a televised interview, indicating that “the process will provide Iraq with financial liquidity that will help in supplementing the public financial budget.”
Mousawi added, “The beneficiary party on the other side is the Chinese company that will benefit through the quantities of oil that will be taken at once for a year, and then the agreement will be for four years, which is better than the monthly quantities for the global market.”
He continued, “The positive thing for the Iraqi side is that Iraq does not bear the monthly price difference if it occurs, but rather it is borne by the beneficiary company,” noting that “the amount that Iraq will pay to the company is 4 million of crude oil per month, at a rate of 130 thousand barrels per day, which is A percentage representing less than 5% of the exported Iraqi oil, and does not affect the policy of reducing production in OPEC.
The oil expert added, “Iraq will start next month to raise oil production,” noting that “the process of selling oil to China is not entered as a kind of loan, and it is not as is rumored in the street that the deal is a subject to Iraqi oil, but the quantity is very small and yields benefits.” Country finances. ”
Furat Al-Moussawi stressed that “the current reality of Iraq does not have any alternative to oil to support its economy,” noting that “Iraq does not have any other alternatives except by selling it in this way, especially with non-oil imports not contributing significantly to general imports.”
On the investment of gas associated with oil, Moussawi said, “Iraq is ranked 11th in natural gas reserves in the world, and there is a government tendency for years to invest gas, and it recently started in Basra, but the problem is the slow progress in this field of investment, which needs a will Real and appropriate political environment.
For the first time, Iraq, the second largest oil exporter in OPEC, begins exporting crude to China, so that it will be pre-paid, which Bloomberg said that the deal was concluded between “Sumo”, the Iraqi oil company, and the Chinese company, “Chenhua Oil,” a subsidiary of “Akbar A China defense contractor, according to Bloomberg.
The Iraqi News Agency “Conscious” quoted the General Manager of “SOMO”, Alaa Al-Yasiri, as saying that it is an intermediary company and not the owner of oil, and all revenues go to the account of the Ministry of Finance with the Central Bank.
According to a previous Bloomberg report, the “rare” deal would be to pay China more than two billion dollars in advance for 48 million barrels of oil, which will be supplied during July 2021 through June 2022.
Iraq renews its call to abide by the reduction?
For his part, Iraqi Oil Minister Ihsan Abdul-Jabbar affirmed, today, Monday, the keenness of the oil-producing countries in (OPEC) and their allies to maintain the balance and stability of the global oil market, calling that this be through commitment to production reduction plans, to face the repercussions of the Corona epidemic.
A statement by the Ministry of Points stated that this came during his participation in the Ministerial Meeting for Monitoring Production (Jmmc) emanating from the Petroleum Exporting Countries (OPEC), and in the ministerial meeting of OPEC members, and through the television circuit.
Oil Minister Ihsan Abdul-Jabbar Ismail said, according to the statement, that the meetings aim to follow up on the developments of the oil market, and to review the technical reports prepared by the relevant authorities in the organization, in order to develop the necessary recommendations for the plans of the organization and the countries allied with it.
Ismail confirmed that the OPEC agreement to reduce production has contributed to reducing the repercussions and impact of the Corona virus on the stability and prices of crude oil in global markets.
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