Sea of ​​Science (range): Politics aborted oil and gas law .. and the old formula is no longer feasible

26/03/2017 (00:01 pm)

Baghdad / Zahra al-Jassem

Energy is linked to the Iraqi file , according to some, the stability of the country, and the fact that the sector is almost the only source of wealth, public Valmoisnat totally dependent on the financial its returns, which calls for intensified efforts to upgrade it, and address what is going on industry problems. Taking this sector needs, to effective management and strong government, what is also necessary, in the current circumstances, the serious pursuit of the enactment of the oil and gas law , which Rkinth the political pressure on the shelves of parliament for years, and the establishment of adequate reservoirs to keep crude under the oversupply of it in the international market, as well as to the necessity of activating the Turkish Ceyhan line, if the liberation of Mosul Daesh, and review the licensing rounds which showed a decline in oil prices fragile decades.

These files and other important, open the "long" with a member of the Parliamentary Committee on Energy and Oil Minister in the transitional government (2005) , Ibrahim Bahr al- Ulum in this dialogue.

* How do you see oil - producing countries agreement (OPEC) to cut production, is it appropriate at the present time?

- OPEC agreement to reduce production, had an impact on oil prices in the market, through the marked increase in prices over the past three months, and the agreement had weighed on the market variables, although the production of countries that fall, constitutes only about a third of the production Global. The agreement came late and that it is the welfare of everyone, and the lesson lies in the continuation and the commitment of States producing their quotas. It is noted in this context, that Iraq has become a point of balance in the organization and an influential player, it will increase its impact by its production and export and increase its reserves and political relations with the countries.

* Do you adhere to the ceiling specified OPEC means investment stop in the new oil fields, especially if the long - term agreement for more than a year?

- No, does not mean investment stopped, the decision to OPEC this time differs from its previous resolutions, as they have not focused on reducing production ceilings, but the reduction depends quantities of export only, and the reduction , which included Iraq and other countries, on the reduction of export rates, while production remains free, this is useful for Iraq as the domestic consumption absorbs continue to invest in new fields. It must be the oil ministry to think hard to develop the giant field east of Baghdad on the stages of small fields in the rest of the provinces, especially the Middle Euphrates fields, and Iraq must remain down for a review of the commitment of the members of OPEC quotas, and adjusted if necessary, and push for the promotion of national investment.

Ado about counters .. and licensing contracts

* much ado about the subject counters, you could smuggle 100 thousand barrels per day, though it is subject to high control and surveillance patrol counters.?

- This is a very important issue, where this confusion remained chasing the ministry for years, despite all the measures sought by the development of measurement and calibration in the export ports services, and under the supervision of the relevant committees and involve close parties of international companies specialized, has directed the Oil Ministry last week, call open to members of the oil and energy Committee in Parliament, to visit export ports in Basra, field and direct access, the ministry 's actions in this regard, and this is a positive step to explain the realities of things and defend the reputation of Iraq and its sector oil and to respond to reports and complaints raised in the media, the Committee received some Nha, the most important step, we are in the process of thinking to submit legislative proposal on measurements of transfer of ownership of crude oil, gas and petroleum products law, we hope that this legislation will be proposed, able to fill the gaps and maintain the oil and gas and petroleum products from any manipulation of wealth.

* Is there any intention in the future to change the format of contracts concluded in the licensing rounds to direct investment formula?

- There is no doubt that the formula that concluded the contracts are not ideal, Iraq has signed a strategic error when the oldest to sign service contracts for the rehabilitation and development of oil and gas contracts for wholesale within a very short period of time, he offered Iraq nearly half of its oil reserves in a period of time not exceeding six months. We were opposed to this method, let us in a direct conversation with the former prime minister after the first licensing round on June 30 , 2009, to deliberate in the licensing rounds and only field Rumaila giant, having been referred to the company (British BP), to get to know first, on gaps in these contracts during a specified period of time, and the reform of its items before proceeding to put the other fields, but the political will was heading to the contrary to what we put forward, have discovered the disadvantages of such contracts (standard) when oil prices decline, and the pant that the benefits that the government paid to companies not linked to prices, and they discovered that the rates Finalize The maximum production fields, which was one of the points of competition, were not realistic, so they had to re - negotiate again in the years 2013-2014 and changed many of the terms of contracts, but the change was not too in favor of Iraq.

* Reports indicate that the oil licensing companies, have aggravated the environmental pollution problem in Basra, what are your recommendations in this regard, and do you see this?

- It is natural that aggravated environmental pollution is simple to cause a problem, the more oil production has increased increasing environmental pollution because of the increasing associated gas production , which burns more than half of it now, in the hope fully invested in the coming years, pollution is not limited to air but on the ground and human, and the participation of Iraq at a conference of climate change, it would impose an obligation on it to reduce gas greenhouse emissions in the next two decades, and years ago I was on a visit to the field of Rumaila and facilities, and there was a disaster , not economic, but contaminated land environmental disaster, because of the large lakes of contaminated and produced from the oil wells of water, for N recently learned that the company 's workforce was able to deal with it.

* Throughout the 13 - year budget of the Ministry of Oil, it is the largest among ministries, but so far, is not set up enough oil tanks .. Why?

- Yes , Iraq is still suffering a shortage of storage capacity, and this one of the required issues in the restoration of infrastructure, after the destruction of FAO tanks in the Iraq war - Iran, she left Iraq is suffering from a severe shortage, has storage capacity improved two years ago, where he completed some reservoirs after foot - dragging and the problem facing officials when the download stops for reasons of air, the companies have to stop production , the ministry bore production ceased as outside the framework of the contract costs, so the availability of infrastructure of the ministry 's responsibilities, especially that Iraq needs a storage capacity of not less than 40 - 50 million barrels, calling for a To think seriously about building investment tanks outside Iraq for the storage of Iraqi oil as is customary in other producing countries.

Enactment of the oil and gas law has become a necessity

* What are the most important obstacles that prevent the adoption of the oil and gas law, and whether can see the light in this parliamentary session?

- political obstacles prevented that, and lost Iraq historic opportunity not to pass the law , which was approved by the Cabinet in February 2007, it has undergone political debates wasted provide a legal and administrative framework of the oil wealth, I do not think that the law as old, has become feasible now, you may need to dismantle law to basic joints, and work on them without relying on the old version. The idea follows the draft oil and gas law in which the joints of three: the first organization of the relationship between the center and the region and producing provinces, and the second national investment in the oil sector organization, and the third foreign investment organization. With respect to the first joint, there is a proposed law to be discussed at the Oil Committee on the Federal Council of the policies of the oil and gas, the second joint and on the Council of Ministers approved in its last meeting, the draft law of the National Oil Company and the pending arrival, and if the Commission succeeded in passing laws, it means good steps can be achieved in this regard.

* Do you have information about the possibility of running Kirkuk line - Nineveh - Ceyhan , Turkey , if the liberation of Mosul, and what will be the situation in Kirkuk, note that there is an agreement between the center and the region on the export of 150 thousand barrels per day, through the Kurdistan pipeline to Ceyhan and revenue sharing equally?

- The Ministry of Oil has the potential to rehabilitate crude oil pipeline Kirkuk - Nineveh - Ceyhan, although it may require for quite some time. After the war, the ministry is supposed technical cadres, conducting field surveys to identify the possibility of operation thereof, and therefore available to Iraq last export port for crude oil. The multiplicity of ports policy, is one of the important strategies of the ministry, either with regard to the agreements that took place in conditions of war experienced in the region can be adapted.