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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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    Why is there no European interest in licensing rounds in Iraq?

    Rocky
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    Why is there no European interest in licensing rounds in Iraq? Empty Why is there no European interest in licensing rounds in Iraq?

    Post by Rocky Fri 16 Aug 2024, 5:01 am

    Why is there no European interest in licensing rounds in Iraq?

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    Economy News - Baghdad
    [rtl]After 1990 - the year of the entry of the State of Kuwait - Iraq witnessed an economic blockade that affected the oil sector. After 2003, Baghdad began to open up to the world, as it began to receive international expertise.[/rtl]
    [rtl]Researcher and writer in the field of energy and economics, Dr. Bilal Al-Khalifa, believes that the qualitative leap witnessed by Baghdad occurred after 2009, starting with the launch of licensing rounds and the entry of major international companies, such as PetroChina, Shell, and Total Energy.[/rtl]
    [rtl]This came during Al Khalifa’s participation in an episode of the “Energy Insights” program, presented by Energy Platform Editorial Advisor, Energy Economics Expert Dr. Anas Al-Hajji, via the “X” platform (formerly Twitter), under the title “Iraq.. The Future of Energy Supplies between Opportunities and Challenges and the Role of the Gulf States.”[/rtl]
    [rtl]Al-Khalifa explained that the entry of international companies made Iraq keep pace with global development, and the ceiling of oil sector production rose, although it had not yet reached the goal that it had set at the beginning of the licensing rounds.[/rtl]
    [rtl]Despite this, according to the energy expert, he kept up with the latest global technologies and began to enter the competition, at a time when he faced many obstacles.[/rtl]
    [rtl]Oil and Gas Sector in Iraq[/rtl]
    [rtl]Researcher and writer in the field of energy and economics, Dr. Bilal Al-Khalifa, said that Iraq, in the licensing rounds that took place after 2009 and 2010, the first, second and third, focused on the extraction aspect, and the steps were good, but the country witnessed a slowdown in the field of gas.[/rtl]
    [rtl]He added: "It is known that 70% of Baghdad's gas needs are associated gas, and the state depends on extraction operations. Unfortunately, about a year ago, half of the extracted gas was being burned, but the leadership of the oil and gas sector noticed this and developed a plan to exploit all the gas produced."[/rtl]
    [rtl]Dr. Bilal Al Khalifa explained that the fifth and sixth licensing rounds focused on extraction in fields that contain gas in particular, such as fields that contain non-associated gas, and this is a very important point.[/rtl]
    [rtl]He continued: "The second point is that Iraq, like any oil-producing country, is negatively and positively affected by global and regional events, such as the Russian-Ukrainian war, the events in Gaza, and the events in the Red Sea, especially since more than 90% of the general budget revenues come from oil revenues."[/rtl]
    [rtl]Hence, according to Al-Khalifa, any rise or fall, as happened during the Corona pandemic, means that Baghdad will be greatly affected, and means a decline in the price of a barrel of Iraqi oil, especially since the regime in Baghdad is rentier, and depends primarily on the revenues of the oil and gas sector.[/rtl]
    [rtl]He pointed out that the recent interest was in exploiting associated gas, in addition to focusing in the fifth and sixth licensing rounds on gas fields more, such as the Akkas field in Anbar, and the contract with Total Energy for the Artawi field, to exploit 300 million standard cubic feet of gas.[/rtl]
    [rtl]Dr. Bilal Al Khalifa pointed out that the aim of this agreement was to ensure that no associated gas is burned, and thus the country can reduce the cost and stop wasting public money and the burden on the general budget, related to importing gas from abroad.[/rtl]
    [rtl]Why are global companies not interested in licensing rounds?[/rtl]
    [rtl]During the episode, he asked energy expert Dr. Bilal Al Khalifa why there is no global interest, particularly from Western companies, in Iraq’s licensing rounds.[/rtl]
    [rtl]Al-Hajji said: “The West is now trying to get rid of Russian oil and gas. Even Israel is currently trying to convince Europe to import Israeli gas. However, when the licensing rounds were launched, there was no interest from Western companies. What is the reason?”[/rtl]
    [rtl]Dr. Bilal Al Khalifa responded by saying that the reluctance to participate in these rounds has many reasons, the most important of which is that the fields included in the recent rounds, whether the fifth round supplement or the sixth licensing round, were not gaseous par excellence, as they were joint fields, and if they were gaseous, their size was not encouraging, as the large fields were within the first licensing rounds.[/rtl]
    [rtl]The second reason, according to Al-Khalifa, is that the Iraqi government made the contracts in the first and second licensing rounds service contracts, but made the gas contracts production-sharing contracts to encourage companies, but unfortunately this was not an incentive for companies, adding: “Why do companies participate in fields in which they operate under licensing round contracts?”[/rtl]
    [rtl]He stressed that the third point, which is of great importance, is the security aspect, as it is known that capital is cowardly, and the events that occurred in recent years, such as the war against ISIS, and the possibility of its return as well, could be a major reason for investment companies’ reluctance to enter.[/rtl]
    [rtl]Dr. Bilal Al-Khalifa pointed out that a year or two ago, there were attempts by some companies to exit the oil and gas sector in Iraq, such as Shell and other companies, and this was a bad indicator for this sector.[/rtl]
    [rtl]To view the latest news, follow us on Telegram[/rtl]
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