Iraq is preparing to establish a project that will change the oil map.. Will it affect energy producers?
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Iraq's budget for the current year 2024 allocated an amount of up to 4.9 billion dollars to establish a pipeline extending from Basra in the far south of Iraq on the waters of the Gulf, to the city of Haditha, located in the far west of Iraq within the Anbar Governorate bordering Jordan and Syria, which means the return of life to the Iraq project - Jordan, which has been witnessing political opposition inside Baghdad for years, stipulates that Iraqi oil be exported through Jordan to the world via the Mediterranean, given that the project was essentially linked to extending the oil pipeline through two stages, the first to Haditha, which is the longest, and the second to enter neighboring Jordanian territory.
For years, the project has witnessed controversy regarding its economic feasibility, in addition to the opposition of political and armed forces and parties allied with Tehran, describing the project as allowing Iraqi oil to reach the Israeli occupation. However, the proposals presented by economists and oil experts confirm that opening a third export outlet to Iraq will change the waters of the Arabian Gulf and Turkey. It will give Iraq an advantage over Iran and Saudi Arabia in terms of export diversification, especially in times of military and political tensions in the Middle East.
Advisor to the Iraqi Ministry of Oil, Ahmed Al-Omar, said that the arrival of the pipeline to Haditha, western Iraq, means that Iraq can transport its oil not only through Jordanian territory and then Aqaba, but also through the Syrian port of Baniyas. Al-Omar added, “The project will change the map of the oil industry and production in the region and give Iraq a great advantage over other oil neighbors.” By approving the amount allocated to start the project, according to the age, the government will begin work on the implementation phase, stressing that Iraqi companies will undertake work on it, and the pipeline will be implemented through the Iraqi Ministry of Industry as well.
Strategic project
Director General of the Petroleum Projects Company, Ali Ward Hammoud, said, “The Basra-Haditha oil pipeline project is considered one of the most important strategic projects for the movement of oil in Iraq, and it strengthens the economy by enabling the country to export oil through new ports.”
He added, “The oil produced from the southern fields is exported through our ports and loading points overlooking the Gulf, which is the only outlet for most of Iraqi oil currently, and with the presence of geopolitical challenges in the region, the Ministry of Oil has taken it upon itself to diversify export outlets, as over the past decade it prepared a study.” “For the northern export system, with the help of the most important international consulting companies, and developing appropriate plans to develop new export outlets to serve the expansion of oil production in the country through the licensing rounds proposed by the ministry.”
He continued, "The Basra-Haditha pipeline falls within this trend. The size of the pipeline is 56 knots, and has a capacity to secure the export of two million and 250 thousand barrels per day. It will be manufactured by Iraqi hands, and the bulk of it will be manufactured by the Iron and Steel Company affiliated with the Ministry of Industry, and it provides new export outlets." Iraqi oil is transported to European and North American countries, in line with the development road project and the government’s endeavor to make it a global energy corridor, in addition to its role in transporting goods between the East and the West.”
He confirmed that “there is an intention to connect the pipeline in the future to the port of Tartous on the Mediterranean Sea, after achieving appropriate security conditions in Syria, through a pipeline established for this purpose and linking the Haditha warehouse to the port of Tartous,” he said.
Iraq towards new markets
According to Iraqi political sources, the beginning of the project was in 1983, when the Iraqi and Jordanian sides agreed to extend a pipeline from Basra to the port of Aqaba on the Red Sea, passing through Jordanian territory. At the time, both sides demanded guarantees from the United States so that Israel would not target the pipeline.
The sources state that the government of Muhammad Shiaa al-Sudani seeks to start the project as soon as possible, because the pipeline represents a new type of outlet for Iraqi energy exports, specifically oil, and it also provides the opportunity for Iraqi oil to reach new markets in Europe, as well as sustainable and diversified economic gains and financial returns. In addition to participating and investing in international manufacturing sectors.
Although Iraq's financial budget for the current year included the new pipeline project at an amount estimated at approximately 6.5 billion Iraqi dinars ($4.9 billion), representatives from Basra Governorate confirmed that they would obstruct the project.
Member of the Iraqi Parliament, Hadi Al-Salami, stated, “What is strange about this project is that it was rejected by most of the Iraqi parties during the period of Mustafa Al-Kadhimi’s (previous) government, but the parties themselves currently agree to it, and we do not know what the reasons are, especially since information is scarce about it, and we do not know “The reasons for the government’s secrecy about it.”
Al-Salami explains, “Politicians and representatives in Iraq do not have sufficient information about the pipeline project, and we demand to know the economic feasibility of the project from the government’s point of view.”
The consultant in international transport economics, Ziad Al-Hashemi, pointed out that “the Basra-Aqaba pipeline project is a strategic project to raise the level of cooperation between Iraq, Jordan and Egypt, and to enhance the level of inter-relations, whether political, security or economic, and that the passage of the oil pipeline through a regional country like Jordan will not be exploited.” This pipeline is intended to put pressure on Iraq in the future, and this will ensure the smooth flow of Iraqi oil flows without obstacles.”
Al-Hashemi continues by saying, “The project raises fears that the pipeline will be exploited to supply the Israeli entity with Iraqi oil in response to supposed Western requirements or pressures.”
Al-Hashimi added, “One of the problems that the project may face is the refusal by some pivotal regional countries to hinder Iraq’s attempts to diversify Iraqi oil export outlets towards the West, in addition to the security pressures and stability problems that still constitute an obstacle to the completion and success of any Iraqi project, let alone About the possibilities of opening new outlets for corruption inside and outside Iraq due to the high construction costs.
In turn, oil expert Kovind Sherwani considered that “the Basra-Haditha oil pipeline project falls within the framework of the first phase of a project extending to the port of Aqaba in the Mediterranean, which will provide a new export outlet for Iraq.”
He continued, "We also believe that it is necessary to revive the Kirkuk-Ceyhan line, which used to transport up to 400,000 barrels per day, in addition to the investment possibility in transporting Nineveh and Salah al-Din oil, with a capacity that could reach one million barrels per day, which provides export outlets." A mission for Iraq.”
Al-Sudani: The Iraqi government is following a new approach aimed at activating the private sector
Prime Minister Muhammad Shiaa Al-Sudani confirmed today, Saturday, that his government is following a new approach in its program aimed at activating the private sector in Iraq and achieving equality between it and the public sector in rights and social security.
This came during his meeting today with a number of young graduates from Dhi Qar Governorate, as part of his sovereignty’s communication with the youth, following up on their demands and listening to their vision, according to a statement issued by the Iraqi government.
At the beginning of the meeting, Al-Sudani touched on the fact that Dhi Qar possesses the elements of economic advancement, human resources and investment opportunities that go beyond its borders, stressing that the government guarantees the right to peaceful demonstration and the protection of demonstrators on the path of communicating demands and publicizing rights, in a way that does not negatively affect the work of projects and civil services.
He pointed out that the government is following a new approach in its program aimed at activating the private sector, to create more basic job opportunities in the continuation of economic development and advancement and efforts to attract investments, as well as working towards achieving equality with the public sector in rights, social security, distribution of residential lands, and others.
The Iraqi Prime Minister asked the young graduates to present their vision and demands, and propose solutions, especially with regard to comments regarding youth employment offices. In order to contribute to supporting the stability of the governorate and creating sustainable and productive development, attracting employment requests and cooperating in meeting them between public and private sector institutions and investment projects.
Al-Sudani directed the provision of a special program from the “Riyada” initiative to care and support youth, allocated to Dhi Qar Governorate, in proportion to the population ratios. In order to grant loans to emerging, small and medium enterprises, as well as directing government banks to grant operational loans, and giving priority to young people, graduates, qualified people, and certificate holders.
Iraq and Ukraine agree to hold a joint committee in Baghdad during 2024
Deputy Prime Minister and Foreign Minister Fuad Hussein met on Saturday with his Ukrainian counterpart, Dmytro Kuleba, on the sidelines of the peace summit in Ukraine, which is being held at the Brukenstock Resort in the Swiss city of Lucerne.
A statement from the ministry, a copy of which was received by Al-Furat News, said: “During the meeting, the two sides held in-depth talks on ways to enhance efforts to bring peace to Ukraine and end the war.”
Hussein stressed "the importance of promoting and giving priority to diplomatic solutions and constructive dialogue between the conflicting parties, by strengthening international mediation and relying on peace initiatives supported by all parties, including the United Nations," reviewing "the latest developments in the situation and challenges facing achieving lasting peace, including: "These are the humanitarian and economic crises resulting from the war."
He stressed "Iraq's firm and supportive position for peace," stressing that "Iraq seeks to strengthen its efforts in cooperation with the international community and both Russia and Ukraine to achieve stability and peace in the region."
In another axis, Fouad Hussein and Dimitro Kuliba discussed ways to strengthen bilateral relations between Iraq and Ukraine, with a focus on expanding cooperation in the economic and political fields. The two parties also agreed to hold the joint committee between the two countries in Baghdad during the year 2024.
Iraq withdraws its signature from the final statement of the "Ukraine Conference"
Iraq and Jordan left the list of countries that signed the joint statement after the Swiss conference on Ukraine, and as a result the number of supporters of the document decreased to 77 out of 91 participants, according to the list of countries that signed the conference published on the website of the Swiss Federal Council.
Thus, the number of countries that participated in the conference and did not sign the statement increased from 12 to 14 countries.
Previously, it was known that the document was not signed by Brazil, India, South Africa, the United Arab Emirates and Saudi Arabia. As well as Armenia, Bahrain, Indonesia, Libya, Mexico and Thailand.
Western media reported on Sunday that the final statement of the Swiss conference stressed the necessity of dialogue between all parties to end the conflict in Ukraine.
A French agency stated, quoting the text of the document: “We believe that achieving peace requires participation and dialogue between all parties.”
The organizers published the list of countries that signed the final statement on the screens of the press center in Bürgenstock.
It is worth noting that US President Joe Biden, Chinese President Xi Jinping, Brazilian President Luiz Inacio Lula da Silva, and leaders of many other countries to Switzerland did not attend, and some participants in the event, such as US Vice President Kamala Harris and German Chancellor Olaf Scholz, left early. .
Al-Maliki reveals the most prominent laws that will be passed after the Eid al-Adha holiday
Member of the Parliamentary Legal Committee, Raed Al-Maliki, reviewed today, Saturday, the laws that will be read after the end of the legislative recess of the House of Representatives.
Al-Maliki said in a press interview, “There are laws that will be voted on and laws that will be read for the first time at the beginning of the second legislative term, which will begin on July 9.”
He added, "The service and retirement law for members of the Popular Mobilization Forces will be given a first reading, and we will proceed with the legislation fully during the second legislative term."
Al-Maliki pointed out, “The Oil and Gas Law and the Federal Supreme Court Law are basic laws and at the same time they are controversial laws, so I do not think they will be advanced during the second legislative term unless the government completes them.”
Regarding the Civil Service Law, a member of the Parliamentary Legal Committee explained that “there was a hosting for the Director General of the Legal Department of the General Secretariat of the Council of Ministers,” while he stated that “the Civil Service Law has been amended and is being reviewed through a committee,” adding, “But we are in the House of Representatives.” We are determined to put pressure on the government to send him in the second legislative term.”
Al-Maliki pointed out, "There is an amendment related to the Personal Status Law, and the amendment is fundamental and important. It will be read for the first time at the beginning of the second semester."
As for the general amnesty law, Al-Maliki stated that “there is no movement on it, unless a new speaker of the House of Representatives comes, since the issue is politically controversial and has preceded,” noting that his committee “presented a law replacing custodial penalties with a financial fine, but it was stopped.”
He concluded by saying, "We must give a chance to sentenced prisoners whose survival we believe will not benefit them, society, or their families."
Venezuelan Minister: We are close to producing one million barrels of oil per day
this was in Iraq's news
Venezuelan Oil Minister, Pedro Telechia, announced that his country is close to producing one million barrels of oil per day for the first time in more than five years.
“We can officially say that we have exceeded 950,000 barrels per day this month,” Telechia said during an official event in the capital, Caracas, adding, “We are very close to producing one million barrels.”
Oil production peaked in 2008 with 3.5 million barrels per day, but declined years later due to strict US sanctions.
Last month, Washington re-imposed sanctions on Caracas six months after easing them, in response to "the government's continued repression of opponents before the July elections."
However, Spanish energy giant Repsol has received permission from the United States to continue operating in Venezuela.
The Venezuelan Oil Minister said last month that he was optimistic that Venezuelan oil production would reach one million barrels per day soon, for reasons including the agreement with Repsol.
Telechia is also the president of the Venezuelan oil giant Petroleos de Venezuela (Pedivesa).
Venezuela's production reached 910,000 barrels per day by the end of May, according to the Organization of the Petroleum Exporting Countries (OPEC).
The country's production fell to less than one million barrels per day in 2019 when the United States imposed sanctions following the re-election of President Nicolas Maduro a year ago.
By 2020, the number was less than 400 thousand barrels.
Barham Salih meets Bagheri in Sulaymaniyah
Former President of the Republic, Barham Salih, met with Acting Iranian Foreign Minister Ali Bagheri, in Sulaymaniyah.
Acting Iranian Foreign Minister Ali Bagheri arrived in Sulaymaniyah Governorate this evening and laid a wreath on the tomb of the late President Jalal Talabani.
Bagheri arrived in Baghdad yesterday morning, Thursday, and held discussions with Foreign Minister Fouad Hussein, and met with Prime Minister Muhammad Shiaa al-Sudani, President of the Republic Abdul Latif Jamal Rashid, President of the Supreme Judicial Council Faiq Zaidan, and a number of officials and political figures.
The Prime Minister renews his pledge on Eid Al-Adha to fulfill the terms of the government program
INA Prime Minister Muhammad Shiaa Al-Sudani renewed the pledge on Eid Al-Adha to fulfill the terms of the government program.
The Prime Minister’s Media Office stated in a statement received by the Iraqi News Agency (INA), today, Sunday, that “the Prime Minister extended his best congratulations and blessings to the honorable Iraqi people on the occasion of the blessed Eid Al-Adha, coupled with sincere prayers to the Creator, the Almighty, to repeat this occasion. Our people in all parts of Mesopotamia and the peoples of the Arab and Islamic worlds, with more abundance of goodness and the blessing of security and stability, and may He bestow His victory and mercy upon our people in patient Gaza, and repel aggression from them.”
He added, "I turn to the Almighty to accept the good deeds of those who made the Hajj to His Sacred House, and to return our Iraqi pilgrims safely, winning God’s forgiveness and satisfaction, and enjoying the abundance of His mercy. He is the best Lord and Helper.”
During his congratulations on Eid Al-Adha, the Prime Minister renewed the bond of responsibility and covenant with the Iraqi people. With all its categories and sects, to continue working and diligently, and to exert efforts and energies, to achieve all the components of the government program, which is a realistic extrapolation of the people’s demands and aspirations, and an actual and field response to confront all the challenges and difficulties that stand in its way,
while affirming the continuation of responsibility towards the sovereignty of Iraq, and extending The hand of the law, liberating and developing the economy, bringing about progress and development, creating creative opportunities, and combating all social ills, and corruption in every corner it hides.
Eid Mubarak and acceptable work, and may the days of the Iraqis last in joy and happiness, and Iraq may last in pride and strength in the shadow of its honorable sons and family.
Al-Araji to the American Ambassador: The paths of the Sudanese government enjoy support from various political forces
National Security Advisor Qasim Al-Araji confirmed today, Sunday, to the US Ambassador to Baghdad, Alina Romanowski, that the paths of the government of Prime Minister Muhammad Shia Al-Sudani enjoy support from various political forces.
A statement from the National Security Advisory received by Mawazine News stated, “Al-Araji received Romanowski, and during the meeting they discussed the overall political and security situation at the international and regional levels, as well as the continuation of cooperation between the two countries, to enhance security and stability in the region and the world.”
The statement added, "During the meeting, the importance of following up on the memorandums of understanding that were signed between the two countries during Sudan's recent visit to Washington was emphasized."
Al-Araji stressed that "the Sudanese government is continuing to implement the paragraphs of its government program, and that its paths and paragraphs enjoy political support from various Iraqi political forces, to advance the country and achieve the aspirations of the people."
Reducing inflation in Iraq's economic budget
Economic inflation poses a major challenge to the Iraqi economy, as it negatively affects the country's financial and economic stability. Confronting this problem requires following a set of successful and integrated solutions that contribute to reducing inflation rates and promoting economic growth. Among these solutions :
1. Monetary and financial policies :
Monetary and fiscal policies are among the most important tools that can be used to control inflation, as the Central Bank of Iraq can implement a contractionary monetary policy by raising interest rates, which reduces the money supply and limits consumer and investment spending, and this measure can help reduce inflationary pressure, In addition, the government can take real action in reducing unnecessary public spending and directing resources towards productive investments that promote sustainable economic growth .
2. Enhancing local production :
Excessive reliance on imports increases exposure to imported inflation, so enhancing local production is considered a strategic solution. This can be achieved through real steps by the government in which it adopts support for the agricultural and industrial sectors and encourages investment in small and medium enterprises. By improving local production, Iraq can reduce Its reliance on imported goods, which contributes to achieving price stability .
Basic factors
3. Improving infrastructure :
Strong infrastructure is considered one of the basic factors that enhance productivity and reduce economic costs. The government can encourage investors to invest in infrastructure development by building roads and bridges, modernizing the electricity and water network, and improving transportation and communications systems. This encouragement must be accompanied by real steps and facilities for investors in order to attract them. To engage in these investments because they will help reduce production and distribution costs, which contributes to reducing the final prices of goods and services and thus reducing inflation rates .
4. Reform of the tax system :
The tax system plays an important role in achieving social justice and stimulating economic growth. Iraq can improve the tax system by expanding the tax base, improving collection mechanisms, working to establish sound rules and laws that help reduce tax evasion and increasing government revenues, and working to take deterrent measures to eliminate rampant corruption. In tax institutions and departments, this can allow the government to finance development projects without the need to increase debt or print more money, which helps in combating inflation .
5. Strengthening political and security stability :
Political stability
Political and security stability directly affects the economy, and Iraq can attract more domestic and foreign investments by improving the security and political environment. These new investments will contribute to creating new job opportunities and increasing productivity, which helps achieve economic stability and reduce inflation rates .
6. Supporting technology and innovation :
Technology and innovation are considered effective tools in enhancing economic efficiency. The Iraqi government can support research and development and adopt modern technologies in various economic sectors, and work to embrace scientific competencies and innovators in various fields and provide moral and financial support to them to implement their innovations and employ them in the service of state institutions. This can It contributes to improving productivity and reducing production costs, which leads to lowering final prices and reducing inflation .
Conclusion :
Confronting inflation in Iraq's budget requires adopting a set of integrated policies and procedures, by applying these six solutions above, and this will contribute to reducing inflation rates and achieving sustainable economic stability .
These solutions require serious cooperation and coordination between various ministries, government institutions and the private sector to ensure the achievement of the desired results to reduce inflation and move the Iraqi economy forward .
Researcher and economist
More than 100 suspended laws in the Iraqi Parliament
Member of the Parliamentary Legal Committee, Muhammad Anouz, revealed on Sunday that the Iraqi Parliament is suffering from the disruption of more than 100 laws, including important laws that were withdrawn by the government to make amendments to them.
Anouz told Shafaq News Agency, “Among the suspended laws are the Flag Service Law, the National Oil Company Law, and the Federal Civil Service Law, in addition to many other laws.” He added, "These laws were withdrawn in an official letter by the government with the aim of amending them."
Anouz explained that "other important laws that suffer from obstruction in the House of Representatives are halted for political and technical reasons, including the General Amnesty Law and the Federal Court Law."
He expressed his hope that "these laws will be passed during the next legislative term.
Despite the lack of written agreements for this verbal agreement, which occurred between Henry Kissinger, the US Secretary of State and the National Security Advisor during the era of the US President, and the US Secretary of the Treasury, in addition to the US Secretary of Defense, on the part of the United States, and King Faisal bin Abdulaziz Al Saud, on the Saudi side. However, some information indicates that this agreement was conditional on a period between the two parties lasting for 50 years, ending this year .
This information is reinforced by the major move of the BRICS group , which “coincidentally at the same time as the end of the hypothetical agreement” was announced by the economic ministers of the countries affiliated with this group, including Saudi Arabia, the Emirates, and Egypt, that they are in the final stages of separating oil trade from the US dollar.
This information does not necessarily mean that there will be a direct decoupling between oil sales and the dollar, but there is a strong trend, especially with the expansion of the BRICS group to include the largest economic countries such as China, India, Russia and Brazil, in addition to the Arab countries with the largest economy in the region, which are Saudi Arabia and the United Arab Emirates. And Egypt .
In the midst of these major geopolitical and economic changes taking place in the world, where is Iraq's strategy regarding these moves?
Is Iraq aware of the extent of trade cooperation that takes place between the major oil exporting countries, such as Saudi Arabia, Russia, and the Emirates, and the largest oil importing countries, namely China and India, which import 85 percent of Iraqi oil ?
Has anyone in the economic management system wondered the reason that prompted the group not to invite Iraq to join, despite the discussions taking place between the group and other countries such as Turkey, Iran, and the rest of the countries of the region ?
Has Iraq begun to work on analyzing the expected threats, challenges, or impositions, whether to join the group or choose the opposite camp?
Questions that need to be answered with in-depth analysis and discussions between political and economic elites to come up with a clear vision about the future of oil and the future of geopolitical and economic relations, instead of focusing on an oil pipeline project that will not be implemented neither in 2024 nor in any future year due to the lack of financial allocations for it .
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