Parliamentary efforts to oblige the oil ministry to amend the licensing rounds

November 23rd, 2015

After the low prices and high costs
BAGHDAD - Osama success:
It announced the Commission on oil and energy parliamentary, for the collection of signatures to add an article in the draft financial budget law of 2016 required the Ministry of Oil to amend the licensing rounds with foreign oil companies operating in Iraq, while the parliamentary economic stated that "the oil minister confirmed that the licensing rounds now cost the state large sums of money after drop in world oil prices. "
He said the Commission on oil and energy parliamentary member Ibrahim Bahr al-Ulum that "90% of oil imports in the subject fields for service contracts with foreign companies operating in entitlements constitute a burden on the state budget with lower oil prices that have not been modified and revised."
Bahr al-Ulum told the '' morning new '' He added that "the Commission proposed to add a clause in the budget is needed and the Oil Ministry to speed up the move and improve its terms with the companies," he said, adding he was "collecting 150 signatures of MPs to put this added in the budget as well as Asthsalh support of all blocs to respond to this demand. "
And between Bahr al-Ulum that "this additive comes after Article 29 of the Budget Law, which states (the federal government and the Oil Ministry in reviewing contracts committed in the oil licensing rounds, with the assistance of houses specialized consultancy and re-negotiate with the oil companies working to amend the terms of contracts in order to preserve the country's economic interests The pay increase production and reduce costs.
And the creation of a new mechanism for the recovery of costs that fit with oil prices and work to stop the wasteful burning associated with oil) gas. "
For her part, member of the Committee of Economy and Investment parliamentary Najiba Najib told the '' morning new '' that "the oil minister said that the budget bill does not involve sending any amount of the Kurdistan region because the federal government did not receive him any amount of oil after June 20015," indicating that " Abdul-Mahdi said the government is waiting for the arrival of a delegation from the Kurdistan region to resolve that problem. "
Najib said that "the oil minister also stressed that the licensing rounds now cost the state large sums of money after the fall in world oil prices."
And to that emphasized economic expert on behalf of Jamil Antoine that "the Iraqi oil licensing rounds contracts contain technical, economic and other loopholes, noting that" the solution lies approval of oil and gas law.
Antoine said the newspaper '' the morning of the new '' that "oil licensing rounds that took place in 2006 and beyond contracts were not under the law because the oil and gas law, lawmakers did not proceed so far, but came certain Kajthadat".
The student, the need for approval of oil and gas law to solve a lot of problems between Baghdad and Arbil, and the central government, companies, and this is the best solution and the best as well as follow-up and re-study contracts well. "
Antoine and the "existence of gaps permeated decades of technical and economic terms and that it was possible to be the best, depending on Iraqi expertise," explaining that "the contracts have not been studied nearly accurate and did not involve people with competence and some of them have been on the wheel."
The oil minister Adel Abdul Mahdi, has revealed in 30 of last March for the loss of the state more than $ 14 billion in compensation for foreign companies operating in Iraq is the result of disruptions bear responsibility. "