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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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    Newspaper: Massive corruption discourages Western oil companies to work in Iraq

    Rocky
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    Newspaper: Massive corruption discourages Western oil companies to work in Iraq Empty Newspaper: Massive corruption discourages Western oil companies to work in Iraq

    Post by Rocky Fri 14 Jul 2023, 9:56 am

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    Newspaper: Massive corruption discourages Western oil companies to work in Iraq

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    14:09  2023-07-14  63  Arab and international reports 0



    A London newspaper saw today, Friday, that the massive scale of corruption does not encourage Western oil companies to work in Iraq, while it indicated that Iran can threaten any Western oil company in Iraq whose work is linked to America.
    The London-based Al-Arab newspaper said in a report, followed by Al-Muttala, that "this goal can be easily achieved, and it may be a prelude to increasing Iraqi oil production to 13 million barrels per day."
    Iraq is the owner of the largest undeveloped discovered fields in the world. And the Energy Information Administration determined that the country has 145 billion barrels of proven crude oil reserves, or about 18 percent of the total reserves of the Middle East, and the fifth largest reserves in the world.
    The newspaper does not rule out that "these numbers are much more than expected. In October 2010, the Iraqi Oil Ministry raised its own data on proven reserves to 143 billion barrels."
    The Ministry of Oil had stated that Iraq's undiscovered resources amounted to about 215 billion barrels, but the International Energy Agency confirmed that reserves throughout Iraq, including the Kurdistan region, amount to about 246 billion barrels (of crude oil and natural gas liquids).
    In 2013, Iraq launched the National Integrated Energy Strategy, which set a production target of 13 million barrels per day by 2017, before the number decreased to ten million barrels per day, and then decreased to 9 million barrels per day in 2020.
    Some see the committee's plan to increase production to 5 million barrels per day as a prelude to reaching those numbers.
    Iraqi Oil Minister Hayan Abdul-Ghani stated that Iraq's oil production capacity currently stands at 5.4 million barrels per day, although it still produces between 4.3 and 4.5 million barrels per day in general.
    The aspirations of the authorities in Iraq collide with many obstacles, including those related to corruption and internal and regional political influences.
    Transparency International believes that massive embezzlement, procurement fraud, money laundering, oil smuggling, bribery, and pervasive bureaucracy... are all elements that have led Iraq to be classified among the most corrupt countries in the world.
    The massive scale of corruption discourages major Western companies from engaging in the extraction of Iraqi oil. In June 2021, British oil giant BP said it was preparing a plan to transform its operations in the giant Rumaila oil field in Iraq into a self-contained company.
    The obstacles led to the British oil company Shell's announcement of its withdrawal from the giant Majnoon oil field in Iraq in 2017, and from the giant West Qurna 1 oil field in 2018, in a move similar to the American Exxon Mobil's announcement of its exit from the West Qurna 1 project and before that its exit from the West Qurna 1 project. Shared sea water supply.
    ExxonMobil's withdrawal from the water project is an example of the reasons why major Western companies see that work in Iraq is threatened by many risks.
    Economic researcher Simon Watkins believes, in an article on the American Oil Price website, that ExxonMobil's problem lies in the fact that the "risk-to-reward ratio" set by the Iraqi Oil Ministry was not balanced, and that the Iraqi government did not do what was necessary to provide the conditions for success for what was agreed upon. , especially with regard to protecting the project and preventing the multiplicity of decision-making bodies.
    The protections are not limited to employees, but also the integrity of the essential business and legal practices included in the agreement, and that any transaction must continue as set out in the agreement, regardless of any change in the Iraqi government.
    Western companies faced obstacles in several projects in southern Iraq related to approving contracts for service work, such as building new pipelines, drilling wells, obtaining visas for workers and customs clearance for vital technical equipment.
    It also suffers from the absence of an effective legal structure related to establishing, monitoring and managing business agreements, which would make the interfering company face a large number of problems in the future.
    Ambiguity dominates the future of agreements concluded with Iraqi governments, as many prominent politicians opposed to Prime Minister Mohammed Shia al-Sudani are not inclined to support decisions related to the oil and gas industry that were set by the previous administration.
    Watkins points out that the most dangerous is seeking to link the work of Western companies in Iraq with the United States, which threatens the future of any agreement if Iran decides to portray any of the companies involved in this field as an agent of Washington.
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