Saleh «morning»: the application of «OPEC» decision to increase fiscal revenue

15/12/2016 0:00

Fill 50 percent of the budget deficit is assured in the event of the price of oil has increased $ 5

BAGHDAD / Alaa al - Taie

Detecting adviser financial affairs to the prime minister on the positive impact of the government's decision in support of the Organization of «OPEC» and reduce oil production and the consequent rise of oil prices and its impacts on the economic situation and investment in Iraq, pointing out that «step will contribute to raising the revenue of $ 5 billion per year for each additional $ 5 per barrel of oil, and the provision of 3-4 billion dollars to stop investing in new oil fields, which contributes to bridge the 2017 budget deficit by 50 percent ».

The chancellor said d. Saleh appearance in an interview with elaborately «morning»: The «increase in oil prices that followed the declaration of« OPEC »Resolution oil production cut globally, which will begin by 2017, will be reflected positively on Iraq so that the high price of a barrel of Iraqi oil a single dollar will contribute to the lifting of the oil our revenues billion and 250 million dollars a year, if the rate of oil exports 3.75 million barrels of all parts of Iraq without exception ».

Saleh pointed out that «« OPEC »decision will come into effect with the start of 2017, according to the law of the federal budget for next year, the Iraqi daily volume of exports of 3.75 million barrels will be reduced at a rate of 200 thousand barrels , and it will be the increase in oil revenues after the reduction billion dollars a year», he said , : It is «taking into consideration the difference between exports reduced 200 thousand barrels of oil and raise prices, the latter ( to raise oil prices) is more important than reducing production , which will reflect positively on the financial realities of Iraq and achieve win - win situation and raise revenues billion dollars
annually".


Hidden task

Revealed adviser financial affairs to the prime minister for what he called the «hidden job» related to oil investments , which includes two forms: «first investment; it is an investment to keep the production capacity of the fields, because it is also known to deteriorate fields per year 7 percent unless there are maintenance it or invest Mouawad, the second type of investment; it is in the new fields, which currently depend, and therefore the first type of existing investments and will provide budget 3-4 billion dollars annually due to the expansion of investment in new fields. »


Revenues and the budget deficit

Saleh continued, that «this matter will ease the burden on the federal budget, in addition to the rise in prices will be compensating for the reduction of production», stressing that «in case of price increases of $ 5 per barrel -hat that the price of the current barrel rate of $ 42 - it means higher revenue five billion dollars from the side, and add them 3-4 billion dollars due to halt investments in new oil fields, which means that the outcome of the implementation of «OPEC» decision to cut global output (8-9) billion dollars added to the Iraqi federal budget for 2017, which our admiration covers up to 50 percent of the federal budget deficit for next year 2017. »


The government 's position

Saleh praised the government 's stance in support of the Organization of «OPEC», adding that «there is the utmost importance to the improvement of oil prices and the lifting of the oil revenues that will contribute to reducing the deficit and cutting out external borrowing for consumer Lograd to the presence of real resources».

And on the benefits companies, Saleh stressed «Iraq 's commitment to pay all the dues to oil companies and that with the end of the year will not remain any arrears», as pointed out that «settling accounts period is usually three months if we consider that the year 4 classes was repaid three of them; the chapter fourth go around to the year that followed and called the period of scrutiny and accountable », adding that« improved oil prices , which reached $ 38 per barrel instead of $ 33, if without delay the payment of those dues and delivery difference and added value to the companies which led to relieve pressure ».


Resolution «OPEC»

It has seen oil prices rise after the decision «OPEC» cut production for the first time eight years ago, and pushed prices to rise in the international market by 8 percent, as the organization will cut 1.2 million barrels per day of output starting from next January and this amount constitutes 3 percent of production «OPEC» and will reduce the total move production of OPEC members to 32.5 million barrels a day.

The Prime Minister Haider al - Abadi said in an earlier news conference «support Iraq resolution« OPEC »reducing global oil production», stressing that « the survival of oil production in the current format that could affect economic development and investment in Iraq and producing countries other«, described Economists called the decision «strategic , especially after exposure to a fierce attack Iraq from terrorism and the need to rebuild and re - liberated cities Stability ».

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