The province is negotiating on future oil sales worth billions of dollars and confirms: Baghdad learning

History of edits:: 2017/2/28 20:16 30 visits readable

{Baghdad: Euphrates News} entered into the Kurdistan region of new agreements to borrow three billion dollars of commercial companies and the Russian state oil company Rosneft {} to ensure future oil sales.

Said Ashti Hawrami, Minister of Natural Resources in the Kurdistan Regional Government, a press statement, "The new deals have been hammered in recent weeks, and also negotiates the region to allow for periods ranging from three to five years to repay the debt."

He added, "This supports our economic independence but it is important to realize that not only can be achieved by oil revenues and the rise in crude prices, but we also need to move forward with our reforms and economic."

"We learned a lot from the oil price shock and the costs of fighting Daesh and the burden of some 1.8 million refugees have come to our land, the need for reform - we have a lot of debt that should be dealt with."

Hawrami declined to disclose the names of commercial companies, but market sources indicated in the past that {firms Vitol, and Btraku, and Glencore, and Trafigura} buy Kurdish oil. According to Reuters.

He noted that "the agreements as a hedge against falling oil prices for several years, usually the duration of previous agreements with trade companies between six months and 12 months," noting that he "is positive also for traders because they do not have to renegotiate their contracts every six months."

He pointed out that "This reinforces our financial position, it means that we can push world oil dues operating in Kurdistan more regularly and some money we can invest in our infrastructure to expand its oil."

The Minister of Natural Resources in the province, "we want this year to avoid a repetition of this, and I am confident that we will be better, we know the needs of producers and their plans, and we give priority to not to delay again."

He believed that the "entry of Rosneft {} In addition to the commercial companies of the oil market is a good thing for the Kurdish region because it provides for Erbil first final consumer, large oil and open up new markets, the company is Russian has refineries in Germany and India."

He expressed the hope that "Rosneft agreement become a pioneering work opens the door to other major companies," adding that Rosneft is also considering exploration blocks in Kurdistan.

And relations between Baghdad and Erbil, the minister said that "relations with Baghdad are improving," he said. "We did not hear any negative comments to them after the agreement with Rosneft, and they know we sell our oil, and in fact if we helped each other rather than block progress will be able to all of us to get better prices, while buyers will be able to request exaggerated cuts. "

He noted "the fact that the Arbil sell at the moment some of the oil in favor of Baghdad from the northern Kirkuk field evidence of improved relations," adding "in fact gave us Baghdad share what of the oil to be exported, so we have an agreement we respect both of us, and our genuine cooperation and we hope to build on that." .

He noted that "the existing pipelines Kurdistan could move a little more than 650 thousand barrels per day of exports, although there is a need for more investment to increase this capacity to one million barrels per day, including an update of the pumping stations."

He said he "must increase pipe capacity by the end of the year, but increased production will not start until next year," he said. "We must bear in mind the demand and supply, tell me to what level will the price of oil, and I tell you when we can reach to produce one million barrels per day, investment is depleted in the past two years because of the collapse in oil prices and Daesh attacks. "

Kurdistan plans to launch about 20 concession area for exploration to investors, and between Hawrami "territory regained some concession areas from investors after it became clear that they did not conduct explorations remember, without mentioning the names of those companies."

And abandoned some of the operators of the blocks after I felt disappointed about Akchwadtha including US giant Exxon Mobil Corp. for the production of oil, which pulled out of the three regions of six during the last year.

Hawrami said that "this is not a setback."

"The Exxon decided to continue to work in three patches while the reserves were not possible in the other three simply enough for them. These patches may fit other companies, and we look forward now to be assigned to others." .anthy