| 2007: Iraq can produce eight million barrels of oil daily, according to the new oil law |
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7/27/07 Baghdad - (KUNA) -- An expert prominent international oil that Iraq could access to the oil production capacity of up to eight million barrels of oil a day if used contracts participation provided for in the oil and gas and new expected to be shown on the Iraqi parliament to vote soon. وقال.He said the international expert Dr. Fadel Chalabi, in a letter sent to the House of Representatives in response to an inquiry by the First Deputy House Speaker Sheikh Khalid al-Attiya earlier that "contracts" enshrined in the law that could help Iraq in achieving the production level up to between six to eight million barrels of oil per day. .He added that the contracts are long-term commercial contracts between the foreign investor and the government in the oil sector, without prejudice to the sovereignty of the government on oil resources and ensure control over the export and investment decisions and the right to veto decisions taken by the company in this regard. .He explained that the contracts are reversing decades of oil concessions that had been nationalized in the 1970s of the last century and a long contract depends on the agreement of the parties. .He pointed out that oil companies benefit from these contracts by ensuring the detention of crude oil reserves for a long time to help them stabilize their financial position, which is more important than profit, which is achieved per barrel receive royalty payments from production. .However, Chalabi added that the detention of the reserve benefit companies, but he would not harm the interests of Iraq as long as oil does not affect the value of the product under the barrel global prices. .He added that the key principles of the contracts shall bear the risk of foreign investor capital in oil exploration and find new fields or develop fields left without development since 1980 as contracts provided for foreign investors to start recovering the funds disbursed in the form of crude oil at world prices prevailing calculated at the time production. ام.Not one batch full with not more than 40% of the production in each quarter of the year. .And between Chalabi said that according to these contracts is the right of a foreign investor to achieve a profit on its investment and be in the form of a portion of production after deducting costs and quantities of oil Chalabi explained that this ratio determined by agreement between the parties and the ratio of government between 60 to 90% of the remaining production. .The expert pointed out that investors in accordance with these contracts will be restricted government approval for all investment decisions and productivity are also subject to the laws of the foreign investor tax Iraqi. .And on the extent of Iraq's need for such contracts Chalabi said that Iraq possesses very significant potential reserves of oil under the ground could be up production to between six and eight million barrels of oil per day until the end of this century. .He added that Iraq arrived in energy production amounted to four million barrels per day as the Iraqi-Iranian war, it could not reach the ceiling of the Joint eight million barrels. .And, if the objective is to return Iraq to the level of energy production in the period before the war there was no need for contracts where possible national oil company alone, using contract services access to that level of energy production, although the destruction of the oil fields. .He added if the objective is to reach a production of 6 to eight million barrels a day, the national oil company can not alone raise the production capacity to the required level through the use of service contracts must therefore rely on contracts. .It should be noted that the contracts are one of the most important obstacles to the passage of the law of oil and gas de****e the fact that the text of the new law does not impose such a pattern of contracts while it imposed a moratorium could be determined by the government in certain situations. -Attiyah was asked Chalabi about the nature of the contracts mentioned in the oil and gas disagreed around a lot of MPs between rejecting and supporter and the usefulness of these contracts for Iraq marsadiraq.com |