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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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    The sale of foreign oil companies' stakes in the oil fields is welcomed by some and worried by other

    Rocky
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    The sale of foreign oil companies' stakes in the oil fields is welcomed by some and worried by other Empty The sale of foreign oil companies' stakes in the oil fields is welcomed by some and worried by other

    Post by Rocky Tue 17 Aug 2021, 7:43 am

    The sale of foreign oil companies' stakes in the oil fields is welcomed by some and worried by others





    New Morning - Follow up:
    Threats by some foreign oil companies that threatened to sell their stakes in the main oil fields in Iraq, raised the fear of the government and the Ministry of Oil in light of measures that might negatively affect Iraqi oil production, but it provoked different reactions among some specialists in the oil industry between welcome, rejection and concern from these step.
    There were many explanations for this step, between these companies reducing their businesses and restructuring their operations in light of the outbreak of the new Corona disease, which affected the oil industry and the disposal of fossil fuel assets and the tendency to invest in clean energy under pressure from shareholders or even focus on gas, similar to BP. And between the security conditions and the unattractive investment climate for international companies, according to what was announced by the Iraqi Oil Ministry, in addition to the increasing Chinese influence in the oil sector.
    During the past decade, large international oil companies, such as the American ExxonMobil, the British BP, the Anglo-Dutch Shell, the Russian Lukoil and some Chinese companies backed by the state, fought to gain a foothold in Iraq and work to develop oil fields in it, after these fields were closed to these companies for a long time. past periods.
    These companies were able, during the first and second licensing rounds that were offered by the Ministry of Oil in 2009 and 2010, to obtain contracts to develop the largest oil fields in Iraq and continued production from the country's main oil fields without any significant impact, so that these companies begin to think seriously during 2021 to get out of these fields oil.
    Oil Minister Ihsan Abdul-Jabbar described last July 4, when he was hosted by the House of Representatives, this step by companies that demanded to sell their shares, such as Lukoil and ExxonMobil, in the unattractive investment climate in Iraq.
    This is not the first time that foreign oil companies have left Iraq. The Dutch-British “Shell” company has previously withdrawn its investments from Iraq, and sold its share in the Majnoon oil field in Basra, in 2018, to turn into an operator and producer of gas associated with Iraqi oil fields.
    The US company ExxonMobil - the operator of the giant West Qurna 1 field in the south of the country - wants to sell its 32.7% stake, after this year it got rid of its 32% stake in the Bashiqa license in the Kurdistan Region of Iraq.
    ExxonMobil has filed an arbitration suit against the state-owned Basra Oil Company, over the giant American oil company's attempt to sell its stake in the West Qurna 1 field. An ExxonMobil spokeswoman said that the company entered into an agreement with third parties last January to sell its share, while Iraq seeks to acquire its share, as it did with Shell in the Majnoon oil field, or sell it to one of the American companies.
    Real investment with Western companies
    Iraqi Oil Minister Ihsan Abdul-Jabbar says in an interview that “real investment that produces real value for the country, develops society and people and raises the level of work ethics is what Western companies do.” He adds that "other companies are good at work, but they do not meet all these requirements," noting that "the ministry is trying to come up with the best companies capable of creating a social environment and good work and implement projects at the cheapest prices and the highest return."
    Expert: Illegal operations
    For his part, oil expert Hamza Al-Jawahiri says in an interview that "the real reason behind the withdrawal of oil companies from oil fields is a very large exaggeration of investment and operational costs."
    Al-Jawahiri adds that “companies are placing their employees in Dubai, and they travel on private and first-class planes and live in the most expensive hotels, and all of these costs are very high, in addition to these companies bring in consulting engineers who do not need them, and they receive large wages of up to $2000 per hour and remain for two and three months, and they get Lots of millions of dollars without any benefit from them.”
    He pointed out that “the specialists in oil policy made them follow up on the matter and object to the matter and raised their voices in refusal, so that the ministry began to reduce expenditures, and since the era of the former Oil Minister Jabbar Laibi and passed through Minister Thamer Al-Ghadban to the current minister and even reached the prevention of any excess amounts being spent.”
    Al-Jawahiri explained that “these companies and the ministry cannot talk about these side and large costs because they owe themselves, and therefore, the financial return on licensing contracts has become very small, approximately one dollar per barrel of oil produced, and this money was multiplied two and three times through these illegal operations.” When they were exaggerating the operational costs,” stressing that “these companies when they saw that what they were getting became unremunerative. For example, when a company like Exxon Mobil receives 250 thousand dollars a day, it does not mean anything to them, which is one of the largest oil companies in the world.”
    Al-Jawahiri pointed out that “the exit of these companies from the licensing rounds does not mean that they will leave Iraq permanently. Shell is currently investing in Basra gas, ExxonMobil is discussing to develop a petrochemical plant, and Total has signed contracts to develop 6 projects in addition to developing the Zubair field, in addition to the Russian companies that are present and want to invest in gas.”
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