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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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    Approximately 8 billion dollars.. Iraq's losses due to the cessation of exporting the region's oil

    Rocky
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    Approximately 8 billion dollars.. Iraq's losses due to the cessation of exporting the region's oil Empty Approximately 8 billion dollars.. Iraq's losses due to the cessation of exporting the region's oil

    Post by Rocky Sun 11 Jun 2023, 4:11 am

    Approximately 8 billion dollars.. Iraq's losses due to the cessation of exporting the region's oil
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    Baghdad today - follow-up
    A number of experts and specialists in the field of energy expected that the continued suspension of Kurdistan's oil exports through the Turkish port of Ceyhan until the end of the current year (2023) would cause huge losses that the state treasury could incur, which may amount in total to nearly $8 billion. 
    Despite the statements made by Oil Minister Hayan Abdul-Ghani, last month, about the imminent resumption of oil exports; The problem still exists in light of the Turkish intransigence.
    Ankara is trying to obtain some concessions from the Iraqi side to reduce the size of its losses after the fine imposed on it by the International Chamber of Commerce in Paris, estimated at one billion and 471 million dollars, due to its violation of the agreement concluded between Iraq and Turkey in 1973.
    Turkey had violated the agreement by allowing oil to be received from the Kurdistan region since 2014, although the agreement concluded stipulated that the Iraqi Federal Oil Company "SOMO" would have absolute control over the flow of oil through the Iraqi-Turkish line. 

    pressure on Baghdad

    Hamza Al-Jawahiri, an expert in oil affairs, explained that Turkey is delaying the resumption of pumping Kurdistan's oil through the port of Ceyhan in an attempt to pressure Iraq to continue the agreement it signed with Kurdistan.
    Al-Jawahiri pointed out during press statements, followed by (Baghdad Today),  that Ankara is trying to obtain some gains from the Ankara government, such as granting illegal rights to Turkish companies that worked in oil extraction in the Kurdistan region, but he ruled out that the Iraqi side would bow to such pressures.
    Al-Jawahiri indicated that the Ankara government is trying to evade the fine imposed by the Paris court, which amounts to about one and a half billion dollars, by forcing Baghdad to concede this amount.

    OPEC + decisions

    Oil expert, Hamza Al-Jawahiry, revealed that there is a battle taking place in secret between Turkey and Iraq over Kurdistan's oil, in an attempt by both sides to obtain the largest amount of gains.
    Al-Jawahiri stated that Iraq possesses a large surplus of oil that it cannot export due to the decisions of OPEC +, noting that the quantity that is exported through the region via the Turkish pipeline is about half a million barrels per day, and Iraq is now planning to compensate this amount from the south.
    He stressed that Türkiye did not take this scenario into account. Given that it does not have accurate information about the reality of Iraqi oil production.
    Al-Jawahiry expected that Iraq would not be affected by the Turkish decisions, and that it would replace the quantities it was exporting through the Turkish line with other quantities exported from the south.
    And the International Energy Agency announced that Iraq's oil production has reached 3 million and 850 thousand barrels per day, and is expected to reach 4 million and 100 thousand barrels per day at the beginning of next year.

    expected losses

    Professor of Oil Economics at the University of Basra, Dr. Amjad Sabah, said in press statements, followed by (Baghdad Today), that the Turkish port of Ceyhan is the only outlet for Iraqi exports in the north, pointing out that stopping the export of Kurdistan's oil costs Iraq great losses.
    Sabah added that the amount of oil exports is estimated at 400,000 barrels from the northern fields of the region, and 80,000 barrels from the northern fields of Kirkuk, meaning that the oil whose export was stopped amounts to about 480,000 barrels per day.
    He added that the losses depend - also - on oil prices in the international market, pointing out that they are fluctuating prices, and he expected that the volume of losses resulting from the cessation of Kurdistan's oil exports until the end of this year would reach about 8 billion dollars.

    financial crisis

    The oil economics professor confirmed that the expected huge losses will constitute a huge burden on the Iraqi general budget, which suffers from a financial deficit in the first place.
    He also highlighted the damage incurred by the Kurdistan government from the halt in oil exports, pointing out that it is suffering from a severe financial crisis, in addition to its commitment to pay salaries to the region's employees within the framework of operating expenses.
    Sabah expected that the continued suspension of Kurdistan's oil exports would pose a major challenge to the regional government and the Baghdad government, noting that the Iraqi government was continuing negotiations with Turkey, but Ankara stipulated two basic conditions for the resumption of exports.
    The first condition includes that the Iraqi government waive the compensation amount, which is estimated at one billion and 471 million dollars, while the other condition revolves around selling oil at $19 a barrel, but the Iraqi Federal Oil Marketing Company "SOMO" did not agree to this price; Because it believes that it is not commensurate with the current international oil prices.
    The economist, Dr. Nabil Al-Marsoumi, had expected that Iraq would try to solve the crisis of stopping Kurdistan's oil by reviving 3 new lines. Including the old line with Syria, the old line with Saudi Arabia, and the operation of the Basra-Aqaba oil pipeline to transport one million barrels.
    He also highlighted the possibility of Iraq developing its export capacity across the sea in order to absorb the additional quantities of Iraqi exports to compensate for the continued suspension of Iraqi oil exports through the Turkish port of Ceyhan.
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