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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Ammar Tohme: The recommendation has been repeatedly made by the Financial Control to amend the licen

    Rocky
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    • Post n°1

    Ammar Tohme: The recommendation has been repeatedly made by the Financial Control to amend the licen Empty Ammar Tohme: The recommendation has been repeatedly made by the Financial Control to amend the licen

    Post by Rocky Sun 16 May 2021, 7:15 am

    Ammar Tohme: The recommendation has been repeatedly made by the Financial Control to amend the licensing rounds according to the requirements of the national interest

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    Due to the importance of oil wealth and its great contribution to the formation of the majority of the state’s financial revenues and the need to inform the public opinion and the national elites, especially the specialized ones, about the clear imbalance and the great wasting of national wealth as a result of the contracts for licensing rounds. Below: - 1. The Board of Supreme Audit recommended to re-study oil licensing contracts by the legislative authority and amend their wording in light of the requirements of the national interest. 2. It is mentioned that there is no special law that regulates these contracts and that they are not subject to the Government Contract Law No. (87) for the year 2004 and the instructions for implementing contracts, as well as not being subject to the amended Investment Law No. (13) for the year 2006 that excluded investment in the fields of oil and gas extraction according to Article (29). ) from him . The Board of Supreme Audit called on the legislative authority to adapt the legal status to conclude these contracts. 3. By noting the table accompanying the above report, we find that the quantities of primary production are decreasing annually (and this decrease is hypothetical rather than realistic) and from 2010 to 2017, the amount of basic production decreased by (20) million barrels, and this means that these (20) million may not be It has actually decreased or has not decreased by this amount, and then it will be counted unless it actually decreases from this amount in the profits of foreign companies that are owed on each barrel of (1-2) dollars, while this basic production is what was actually reached by the energy of the field before the companies started. Foreign workers to work in it and did not make any effort in the quantities of those basic production !!. 4- The Audit Bureau recorded notes on the amendment made to the Rumaila field contract on 4/9/2014 by increasing the percentage of the decline factor (extinction) in stable production from (5%) per quarter to (7.5%). Adjusting the time period from (20) years to (25) years, decreasing the share of the government partner from 25% to (6%), and decreasing stable production at the rate of net production from (2.85) million barrels of oil and natural gas per day. To (2.1) million residents, and the amendment of the Rumaila contract with foreign companies included postponing the continuous production period for a period of seven years from the date 1/1/2016 to 31/12/2019 5. The Board of Supervision indicated that the contract concluded with the Zubair oil field did not mention Standard specifications for crude oil produced by the contractor and the measures taken in the event of oil production contrary to the required specifications. 6. The oil field contracts in Basra Governorate have fully delegated the powers of work to the foreign operator, which has led to the disruption of the capabilities of the national staff and their expertise in the operations of installing and operating equipment. Then the report recommends amending the contract to ensure that the national staff are more involved in the operations of installing equipment and operating. 7. The existence of a reservation on the quantities produced within the production of the Rumaila field for the year 2015 to exceed the specific specifications of crude oil approved by the Ministry of Oil, and the Bureau recommended that the amounts of the reserves produced quantities be deducted. 8. The Financial Control Report included a table for the year 2015 showing that Basra Oil Company employees make up 83% of the workforce in the Rumaila Operating Authority and their salaries are (18%) of the total salaries paid, while the number of contract employees with the two foreign companies is (14%) Of the workforce in the Rumaila Employment Authority, and their salaries constitute (52%) of the total salaries paid during that period. 9. The Oversight Bureau objected to foreign companies ’contracting with an expert to answer auditors’ reports in the amount of (286) thousand dollars, and justified its objection by the existence of an internal audit division within the body’s structure specialized in auditing and oversight work. 10. The suppliers and subcontractors do not provide a certificate of origin certified by the manufacturing or producing countries. 11. The foreign operator's failure to provide the Bureau of Financial Supervision with copies of the contracts it concluded with other contracting parties (the subcontractor) and copies of the initial disbursement of the amounts of those contracts that are recognized as costs recoverable. 12. The foreign operator of Al-Gharaf oil field did not provide details of the salary scale for local and foreign workers. 13. The Board of Supreme Audit indicated that the main centers and positions are still occupied by non-Iraqi workers in the Al Gharaf oil field. 14. The costs of oil production and the profit wages of the foreign operator were spent in the Garraf oil field despite the production not matching the standard specifications due to the high percentage of water and salt above the permissible limit and an amount of (36) million dollars for the period from 2013 to the end of 2016. 15th. The Bureau of Financial Supervision recommended holding the foreign operator responsible for not adhering to production plans and not achieving the peak production specified in the terms of the contract at (230) thousand barrels per day during a period not exceeding seven years, but the daily production rate did not exceed (100) thousand barrels per day after That time has passed. 16. The foreign employer did not provide the mechanism for appointing non-Iraqi workers and handing over salaries and their details, and no measures were taken to compel the foreign contractor to provide evidence of the validity of the total amounts included in the bills of recovered costs. 17. The foreign operator did not prepare accounting records and send their final accounts to the Registrar of Companies for statistical and legal purposes. 18. (46) million dollars were spent on renting an office for the foreign operator in Dubai, considering them as petroleum costs, noting that the contract does not allow payment of the costs of open offices outside Iraq. 19. Paragraph (1) of Attachment (3) of the contract has not been activated, which concerns the establishment of a joint operating company that contributes to reducing the costs of profitability paid to foreign companies and gives Dhi Qar Oil Company the power to impose its policy of preparing budgets on foreign operators. 20. The foreign contractor did not provide the Basra Oil Company with a certificate from an external auditor proving that the costs recorded by the foreign contractor in the production invoices represent the actual costs incurred by the foreign contractor. 22. The Office of Financial Supervision objected to the adoption of international commercial arbitration to settle disputes, as the Iraqi law in force did not include a text indicating the permissibility of the implementation of foreign arbitration provisions in Iraq and the non-accession of Iraq to international agreements for the implementation of foreign arbitration provisions to the extent of its date. For Iraqi arbitration and experts in the field of petroleum operations. 23. The presence of some equipment for wells located outside the roofs in the open due to insufficient storage, which exposes them to damage due to different weather conditions. 24. The Zubair Field Operating Authority did not provide the Supervisory Board with the details of the salaries disbursed to the employees of the operator, and it mentioned the total amount without mentioning the salary details, which makes verifying the correctness of the salaries disbursed by the operator to its workers difficult and impossible. 25. The foreign operator uses a financial system in recording and posting financial transactions that produces differences in amounts by (1) dollars because the outputs of this financial system do not include fractions, so the fractions are rounded to the nearest whole number !. 26. The same report recommends reviewing the mechanism for calculating the amount of the wage fee paid to companies and reducing the cost of producing a barrel, as foreign companies grant an amount ranging from (1-2) dollars for every barrel produced above the field's basic production level, not to mention the profits that are included in the oil costs, whose estimates depend to a large extent. On what those companies offer from account bills! 29. By noting the table accompanying the above report, we find that the quantities of primary production are decreasing annually (and this decrease is hypothetical rather than realistic) and from 2010 to 2017, the amount of basic production decreased by (20) million barrels, and this means that these (20) million may not be It has actually decreased or has not decreased by this amount, and then it will be counted unless it actually decreases from this amount in the profits of foreign companies that are owed on each barrel of (1-2) dollars, while this basic production is what was actually reached by the field energy before the companies started. Foreign workers to work in it and did not make any effort in the quantities of those basic production !!. 30. Some foreign companies opened offices outside Iraq in Dubai, and its operating costs from (2010) to (2017), which amounted to approximately $ 80 million, were included in the recovered oil costs paid by the Iraqi state to foreign companies. 31. The same report mentions that foreign companies contracted with private protection companies, noting that the contract provides for adequate guarding through the Iraqi armed forces within the area of ​​the contract, and the total sums spent on protection companies in the Zubair oil field were (263) million dollars for the period from 2010 to 2017. The Board of Supreme Audit described the response of the Zubair Oil Field Operating Commission on this subject as an answer that lacks legal basis 32. The approval of the Board of Supervision to grant access to the accounting and financial systems only through one subsystem, which includes the right to access only the invoices of payment by scanning. 33. The technical service contract for the Rumaila field has not been translated between the South Oil Company and the British and Chinese foreign companies, and the Rumaila Operating Authority has apologized for submitting a translated copy of the contract and its amendments, as stated in its e-mail dated 24/11/2016. 34.
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