An international expert: we need to negotiate each field

4/11/2015 0:00

BAGHDAD - Hussein al-Tamimi Tgb
Said the international energy expert Mustafa Abdul-Hussein: It is because of the fall in oil prices since the middle of last year's crisis and for the day and the lack of clear expectations regarding the return of prices to the price levels fair to both sides of the market equation producers and consumers beyond what it is at the same time not exceeding or up prices to levels seen before landing and Pat this affair impossible by speculation the current market.

He said in a statement to «morning«: that the oil ministry called for a re-evaluation of licensing and negotiation rounds decades on the development of a new foundation that will build a realistic relationship guarantee the interest of both parties, and the Ministry of so right at the spot of the investment policy pursued by the producing countries while reducing the number of projects or reduce their costs.

He said he must be formed Mohlh negotiating teams from all disciplines and from the relevant departments, absorbing the principles of sustainable development and its application to ensure control of the fields given tours according to the latest the findings of global applications in the oil industry and non-renewable energy.

And Abdel Hussein, the importance of the negotiating team sits down and puts the eye monument decline in global crude prices and rates of low-yielding, if not the losses that would be a sector that continued corporate policies without worrying about costs and spending unjustified In some joints work especially operational aspects and exhaustion caused so policy budget national.

It must be qualitative negotiate with each field player by age, inventory, and style of a technical management and record company that manages the field, and to avoid beginning a mistake when given fields at once, not gradually.

Abdul-Hussein pointed to the need for studies on the failures and achievements of each field within a period of five years following the tours, and exit strategies comparable and comprehensive to distinguish between the bid effort and failure, and that the standards for review in line with global applications, and between placed he may so they can be the formation of national companies to manage all field enters with foreign side in partnerships of a certain type, for a limited period and the conditions being agreed upon expires deliver a full field of national staff after training hard work and for a period not exceeding one year ten, and do not mind a return call to restructure and revive the Iraqi National Oil Company of supervision by law established in light of the mid-sixties of the last century and amendments to fit one century
and twentieth centuries.

Abdul-Hussein said: It is important to rely on what is called in the literature of energy Key Performance Indicator or KPI, which means having control and strictly follow the ongoing operations on deposits and facilities field, and the requirement of good performance and achievement of exchange amounts (ie, the existence of a technical reference methodology Systematic duty to ascertain the extent of the successes and failures), so to be agreed upon between the parties. And require the Iraqi experience the need to provide Rates prices of its own compared to other countries oil neighborliness through the use of a foreign team consultant represented by specialized companies and the duty to provide information and criteria minute prevailing in the region about costs and prices to hold a specific job and ensure transparency in this regard.

He called for a mechanism to impose on the companies commitment prices real prevailing below the current amplification and under the pretext of security aspects, which has long been used as a pretext despite safety available in the oil sector of southern Iraq, which is similar to a reasonable situation in the rest of the regional countries borders.

It is also necessary reservation to the receipt of some of the techniques in charge in the extraction sector, where Iraq states easily distinguished extractions and limited costs (away from this wasteful stainless interpretation technically).

He stressed the importance that they can be used while achieving the required fields ages interference technique binding. And on the proportion of Iraqis working (Uma-called local content), ie the ratio specified 80 to 85 percent of total workers, the issue is not related to the quantity (and this fatal error), but the ability to enforce the resolution (of responsibility and leadership).

The years have passed without the provision of strict schedules based on the Iraqi side evacuated the role of the president during a training methods receipt serious. He stressed Abdul-Hussein on the need to re-objectivity of numbers for peak productivity card and identification ranges and realistic than those which took place on the basis of the tours away from the hype that did not take into account the prospects for the market, in addition to chronic problems in Iraq's oil industry, which calls for an unprecedented effort to resolve. There are some amendments to the fields to extend the contract period instead of reduced (through the review of the technical service contracts were rarely there, such as those extended our contracts to override a period of 20 years).

Abdul-Hussein and follow what ensuing consequences such as reducing the national partner's share up to 5 percent instead of 25 percent, as it should be negotiated on the duration of the contract and not to reach the depletion stage at the hands of foreign contractors. There are several affairs may seem small but it has become one of the priorities such as reducing the number of operating offices have associated with their projects companies in Iraq in order to reduce costs unnecessarily distributed to many capitals, and to devote full effort service for the Iraqi project, and not wasteful asked to provide many of the software Software that can be indispensable (there is apprehension that some of them are bought with money Iraq but used in other locations of the globe).

He said that this requires the requirement of availability of expertise of the foreign staff for at least ten years, and not to bring in new Mtainin built their experience at the expense of the country, is how opportunity should restrict the Iraqi side, and reduce the bookings and travel costs for an end to the highest and lowest her, it should also be a review of foreign workers' salaries and make them approach what it is at the regional neighboring countries, and should be on foreign workers having a professional and international certificates before entering the country, that is not given to them in Iraq at the expense of local elements, and to determine the number and there is a fear of giving them a qualifying experience for a year spent in Iraq to be trained in foreign projects, and mechanisms of development of the local staff not wasteful, regardless of the huge amounts of money abroad Aivadat open training centers and the development of local quality.