Kuwaiti exploration operations in the Al-Nawakhtha field and its negative effects on the Iraqi econo

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[size=52]Kuwaiti exploration operations in the Al-Nawakhtha field and its negative effects on the Iraqi economy[/size]

[size=45]Economic expert, Rahim Al-Ali, believes that Kuwait’s exploration operations in the Al-Nawakhtha oil field will lead to several negative effects on the Iraqi economy.[/size]
[size=45]“If exploration operations extract oil from reservoirs extending under Iraqi territory, this could reduce Iraq’s oil reserves and lead to a potential loss of oil revenues on which Iraq depends to a large extent,” Al-Ali said.[/size]
[size=45]“Such operations may lead to increased tensions between the two countries, which could negatively affect trade and economic relations between them,” he added, noting that “political tensions could also lead to negative effects on foreign investments in both countries.”[/size]
[size=45]He added, "If exploration operations lead to unsustainable competition for oil resources, this could lead to disruptions in oil production in the region, which would affect the stability of oil markets and lead to fluctuations in oil prices."[/size]
[size=45]He explains that “the exploration operations may have negative environmental impacts affecting border areas, which adds additional costs to the Iraqi government to manage potential environmental impacts.”[/size]
[size=45]The economic specialist stresses that “it is important to reach clear understandings and agreements between Iraq and Kuwait to ensure that exploration operations are carried out in a manner that respects the rights and sovereignty of the two countries, and ensures a fair distribution of resources.”[/size]
[size=45]For his part, the economic expert, Diaa Al-Mohsen, explains that “after the Kuwaitis realized the extent of their loss at Mubarak Port, they resorted to attempts to harm Iraq economically by drilling in the Al-Nawakhtha field.”[/size]
[size=45]He added, “The Grand Faw Port shattered the Kuwaitis’ hopes for Mubarak Port and greatly harmed their economy, so Kuwait resorted to other ways to harm Iraq,” noting that “exploration in the Al-Nawakhtha field represents a violation of Iraq’s sovereignty and the government must act immediately to stop it.”[/size]
[size=45]He continued, "The Iraqi government respects the rights of the Kuwaiti neighbor, but it will not remain silent about the stealthy plundering of the country's wealth by the Kuwaiti side," noting that "Kuwait's provocation of Iraq may cost them a lot economically, and even politically, and they must deal with the spirit of a neighboring state."[/size]
[size=45]Earlier, Kuwait announced offering the Al-Nawakhtha field for investment after companies installed towers for the purpose of production, even though it is located within Iraqi territorial waters.[/size]
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