Economic expert Sirwan Abdel Rahman confirmed today, Friday (June 21, 2024), that the measures of the government and the central bank will contribute to reducing the price of the dollar again.
Abdul Rahman said in an interview with “Baghdad Today”, “The Central Bank’s measures reduced the chances of speculators and currency traders who wanted to exploit the crisis and raise the price of the dollar to more than 200 thousand dinars.”
He added, “The current price of the dollar is 145 thousand dinars, and if the Central Bank’s measures continue, especially in the issue of emphasizing the transfer of dollars except to those entitled to them, the price will fall in the parallel market and stabilize in the coming weeks at 140 thousand dinars.”
Since Eid al-Adha, the exchange rates of the dollar against the Iraqi dinar have risen until they exceeded 147 thousand dinars for every 100 dollars, after being below 145 thousand dinars during the past weeks.
Prime Minister’s adviser on oversight and integrity Moayed Al-Saadi confirmed on Friday that Iraq’s recovered funds were deposited at the Central Bank, pointing to the existence of a comprehensive plan to combat corruption and recover smuggled funds.
Al-Saadi said, according to the official agency, that “Prime Minister Mohammed Shia Al-Sudani paid great attention and daily follow-up to anti-corruption measures, and worked in various directions,” pointing out that “teams have been formed to receive, follow up, disclose and refer news and reports of corruption to the Integrity and Public Prosecution Authority for the purpose of holding violators accountable, prosecuting them and recovering funds.”
He added that “among the trends that have been focused on is the periodic evaluation through the semi-annual and annual reports through the regulatory bodies that follow up the actions of ministries and governorates in the field of combating corruption on a daily basis, as well as the issue of digital transformation and the procedures of the unified storage system for the purpose of controlling and following up funds and knowing their movement of balances,” noting that “all these measures are in the fight against corruption.”
Oil companies around the world last year burned the largest amount of natural gas associated with oil production in five years, a World Bank report confirmed.
With only six years to achieve the World Bank’s goal of stopping the automatic burning of gas associated with oil production, companies burned an estimated 148 billion cubic meters of gas in 2023, up seven percent from 2022 despite crude oil production rising only 1 percent during the same period.
Natural gas is usually produced by oil exploration, and some companies choose to burn this gas instead of seize and store it, due to the fact that providing the necessary infrastructure to deal with it is not commercially feasible.
Growth in gas burning has erased the impact of cuts made in 2021 and 2022, the World Bank’s Global Monitoring Automatic Gas Incuration Report said, adding that “global efforts to reduce spontaneous gas burning associated with oil production are not sustainable and urgent action is needed.”
Cancelling the practice would reduce at least 381 million tonnes of CO2 equivalent from harmful emissions to the atmosphere.
Nine major oil-producing countries account for 75 percent of gas burning and 46 percent of oil production.
These countries are Russia, Iran, Iraq, the United States, Venezuela, Algeria, Libya, Nigeria and Mexico, according to the order of the quantities of burned gas.
Algeria and Venezuela have reduced spontaneous burning but these gains have been eroded by Iran, Russia, the United States, Libya and other countries, the report said.
The World Bank, in collaboration with the Colorado School of Mines in the United States, was based on satellite data to calculate spontaneous incineration data.
Prime Minister’s Advisor Madhar Mohammed Saleh confirmed on Monday that Iraq has ranked a distinguished position with international groups that follow the best banking compliance systems, making it safe from any international financial risks, denying the existence of cash problems. Saleh said, according to the official agency, and followed by “Mil, that “the mechanisms of cash issuance are one of the exclusive competencies of the Central Bank of Iraq because it is the issuing bank based on its Law No. 56 of 2004,” noting that “what is published here and there about problems in cash liquidity is far from the firm institutional basis of the monetary authority in Iraq, which is one of the most important authorities concerned with the issues of availability of cash and the stability of the payment system, which adds the sustainability of the stability of transactions in the national economy.” He added, “Managing cash, building the cash foundation and controlling the country’s liquidity levels is subject to the principle of a long-term scheme consistent with the achievement of the operational objectives of monetary policy in order to achieve the intermediate goals of stability, sustainable economic growth and the determination of long-term cash flows.” Saleh indicated that “Iraq has occupied a distinguished rank among the international financial groups that follow the best international banking compliance systems, which makes our country safe from any international financial risks,” pointing out that “Iraq is an essential pillar in regional and international financial cooperation institutions in the scope of combating money laundering, crime and terrorism funds.”
He pointed out that “Iraq recently received a clear positive praise in its strong anti-money laundering policies at the Financial Action Organization conference for the Middle East and North Africa region held in the Kingdom of Bahrain, a certificate from the international financial community confirming the solidity of the financial and banking system in Iraq with the principles of compliance and the integrity of financial and banking operations.”
The list of the most developed Arab countries for oil pipelines shows that the region has projects that put it at the forefront of the continuous global expansion of crude transmission lines aimed at promoting export or meeting domestic demand.
The length of the oil pipeline projects under construction globally until May 2024 is 11,000 kilometers, while the proposed oil pipelines reach the volume of 22.7 thousand kilometers.
The Arabian Gulf is among the most important areas witnessing oil pipeline construction projects globally, in light of the leading role it plays in the global market with huge reserves of crude.
The Energy Research Unit monitors a list of the most developed Arab countries for oil pipelines, which comes with the implementation of many of them exploratory projects to increase their crude production to maintain its international presence and increase the country’s resources.
Iraq
With the top of the list globally, Iraq is at the top of the list of the most developed Arab countries for oil pipelines, according to data issued by the specialized platform Global Energy Monitor.
The oil pipeline projects – proposed and under construction – reach 3.83 thousand kilometers, divided between 75 kilometers under construction and 3.756 thousand kilometers proposed.
The Iraqi Ministry of Oil plans to implement a third offshore pipeline project to export Iraqi crude from the Faw warehouses of the Basra Oil Company to the Al-Faw oil port with a capacity of up to two million barrels per day, according to statements quoted by local media from the general manager of the Basra Oil Company Bassem Al-Shamkhani.
The $416.9 million offshore export pipeline project is scheduled to be implemented during 2024 and 2025, to be implemented by the Dutch company Royal Boscalis.
This comes as the country implements plans to increase its oil production to 8 million barrels per day by 2027, contributing to Iraq top the list of the most developed Arab countries for oil pipelines.
It is noteworthy that Iraq has about 15 oil transport lines with a length of 2.09 thousand miles, and 10 lines with a length of 1.53 thousand miles to transport oil derivatives, according to data issued by the Organization of Arab Petroleum Exporting Countries (OAPEC).
* (Mile = 1.6 kilometers).
Syria
Although Syria is not one of the major oil producing and exporting countries, it came up with the list of the most developed Arab countries for oil pipelines, and the fifth globally.
The length of the oil pipelines Syria is seeking to develop is 2.14,000 kilometers, but they are all still proposed and have not been moved to the implementation phase so far.
Syria’s oil production fell to 15,000 bpd in 2023, compared to 385,000 bpd in 2011, according to statements made in December by Oil and Mineral Resources Minister Firas Kaddour.
The war in Syria and the tensions it has suffered since 2011 in the energy sector have greatly affected, as the country confirms that international companies in the field of exploration and exploration have completely stopped working, as international institutions have refrained from providing any funding.
Syria has 9 crude oil transport lines with a length of 1876 miles, and 7 611-mile lines to transport oil derivatives, according to OAPEC figures.
Jordan
Jordan came in the list of the most developed Arab countries for oil pipelines with a length of 557 kilometers, but is in the stage of proposed projects.
Among the proposed pipes, the agreement signed between Iraq and Jordan comes to extend a pipeline to transport Iraqi crude oil from Basra to the export ports in the port of Aqaba on the Red Sea coast, at an investment cost of up to $18 billion.
The Iraqi oil pipeline is scheduled to extend from the city of Najaf and along the Saudi border to Aqaba, with the aim of transporting about one million barrels of oil to cover Jordan’s needs of Iraqi crude and transport the remaining quantities of Aqaba by ship to Egypt and other countries.
Jordan relies on import to provide its oil needs, with the country recently offering 11 exploration areas for crude oil to international oil search companies with the aim of increasing crude production and reducing the import bill.
Sultanate of Oman
Oman ranked as the list of the most developed Arab countries for oil pipelines, and ranked 20th globally with the size of projects up to 440 kilometers, but it is still proposed projects.
Oman aims to increase its oil production to 700,000 barrels per day before 2030, with its transformation into a global oil storage center, which is the Ras Madat station, which includes the implementation of pipelines.
It is noteworthy that the storage capacity of the Ras Marz station located in the Special Economic Zone at Duqm is up to 200 million barrels, with the capacity in the first phase to be 25 million barrels of oil.
The first phase of the station includes the construction of tanks with an estimated capacity of 6 million barrels, the establishment of floating platforms for the import and export of oil and undersea pipelines with a length of 7 kilometers, and 3.5 kilometers on the ground, to receive and export oil.
In August 2022, the Omani Ministry of Energy and Minerals signed an agreement with the Oman Tank Company (OTCO) that includes the development, construction and operation of a new pipeline for the transport, storage and export of Omani crude oil from Ras Mawaz Crude Oil Terminal in the Special Economic Zone at Duqm.
Libya
Libya came in the list of the most developed Arab countries for oil pipelines by about 169 kilometers, divided between lines under construction of 100 kilometers, and proposed lines with a length of 69 kilometers.
On May 18, 2024, Libya succeeded in operating the main oil line of the North Hamada field, which will transfer the production of the field to the port of Melleta through the el-Fil field line.
According to the National Oil Corporation data, the filling of the line began gradually by 2,000 barrels per day until reaching 25,000 barrels per day, after which it begins pumping in the direction of the Melleta complex.
According to OAPEC, Libya has about 31 crude oil transport lines 3.48 thousand miles long, and 5 lines with a length of 185 miles to transport oil derivatives.
Saudi Arabia
Saudi Arabia came as the list of the most developed Arab countries for oil pipelines with a volume of up to 86 kilometers, according to figures released by Global Energy Monitor.
The Kingdom is the most Arab country with crude pipelines until the end of 2022 with a number of 36 lines with a length of 3.14 thousand miles, and a diameter between 10 and 56 inches.
In the same context, Saudi Arabia has 7 lines to transport oil derivatives, and 24 natural gas transmission lines, according to the statistical report issued by the Organization of Arab Petroleum Exporting Countries (OAPEC).
The Ministry of Oil explained today, Monday, the details of the memorandum of understanding signed with the American company Honeywell for the development of refineries, and while referring to the Prime Minister’s guidance to prepare a study to establish a pipeline network adjacent to the development path, it revealed projects that will soon enter service for raising refining capacity.
“There is a memorandum of understanding signed by the Minister of Oil under the auspices of the Prime Minister with the Prime Minister with Honeywell, one of the large specialized companies with extensive business in all activities,” said Hamid Al-Zoubaie, referring to “a workshop with the company on the activities of refinery activity.”
Al-Zubei explained that “the memorandum signed aims to develop projects for the development of refineries and meet what was directed by the Prime Minister on the arrival of liquidation capacity to 40 percent of the production capacities of crude oil,” noting that “the increase in refinery capacities to 40 percent will add value to the crude oil produced and lead to raising financial returns and thus be supportive of the national economy.”
He pointed out that “7 projects were discussed with regard to refineries and a capacity of 70 thousand barrels for each project in the governorates of Maysan, Dhi Qar, Muthanna and Najaf, as well as the third unit in the refineries of Al-Dura, Hadith and Al-Qayyarah.”
He pointed out that “the ministry’s plan was presented and discussed extensively with Honeywell through the workshop, and it is hoped that a full vision will be provided by the company on the process of developing the refineries with the capabilities offered within the next two weeks.”
He added, “Honeywell, is known for its expertise and technical and technological capabilities and is important for gaining and transferring expertise for national landers and facility development,” stressing that “after completing the preparation of projects, the implementation mechanism and the time periods for their completion will be determined.”
He noted that “the Prime Minister paid great attention to the liquidation sector through the development and raising the capabilities of refineries for its great economic importance,” noting that “great achievements have been made in the liquidation sector during the last short period represented in the completion of the fourth unit in the South Refinery, which added 70,000 barrels refining capacities, as well as the unit of the elimb in the same southern refineries, which will be opened very soon, where it added about 1200 cubic meters of high-octane gasoline, as well as the completion of the Azmra unit in the Dura refinery and the rehabilitation of the North refinery in a record time, which added a refining capacity of about 150 thousand barrels.”
He continued: “Over the next few days, the LCR unit in the North Refinery will enter service and will add up to 3,000,000 liters of high-octane gasoline, as well as the CCRU in the North refinery has also been operational,” stressing that “all these projects have been completed in very short periods.”
He continued, “The upcoming projects, which will enter service soon, will be a contributing factor in raising refining capacities and filling the local consumer need for some products, including the FCC unit in the southern refineries, as it is hoped that they will be completed in the first half of next year, as they will add a production of high-octene gasoline by 4,000 cubic meters to 4,000,000 cubic liters, as well as we have projects of refinery energy addition in a modern refinery, during the current quarter of this year, by adding 20,000 barrels.”
He pointed out that “the Prime Minister directed the Ministry of Oil to prepare a study that includes the establishment of a pipeline network adjacent to the development path that meets all the future strategic plans of the Ministry of Oil from the fields to the transport process, in order to facilitate the process of transporting crude oil and gas between the north and the south as well as export ports.”
Security Advisor to Prime Minister Khalid Al-Yaqoubi: We listened to the hearing of the candidate for the website of the United States Ambassador to Iraq
🔹Yaqoubi: The session included a clear lack of understanding of the new recovering Iraq and interference in its internal affairs and the abuse of its neighbors
🔹Yaqoubi: The candidate must be aware of a clear fact that the sentence of what she spoke does not fit the tasks of her new work
🔹Yaqoubi: The task of the prospective candidate is specific to clear international agreements and treaties
🔹Yaqoubi: We look forward to a performance that enhances the good relationship between the two countries, especially as we are close to bilateral relations that preserve the great sacrifices that were made to victory over terrorism.
Iraq’s budget for the current year 2024 allocated an amount of $4.9 billion to establish a pipeline that extends from Basra in the far south of Iraq on the waters of the Gulf, to a city of Hadithi, located in the far west of Iraq within the Anbar border province with Jordan and Syria, which means the return of life to the Iraq-Jordan project, which has been witnessing political opposition inside Baghdad for years, and the export of Iraqi oil through Jordan to the world through the Mediterranean, considering that the project was mainly related to the construction of the oil pipeline through two stages, the first to Haditha, which is the longest, and the second to enter the neighboring Jordanian territory.
The project has for years witnessed controversy over economic feasibility, along with opposition from political and armed forces and parties allied to Tehran, describing the project as allowing Iraqi oil to reach the Israeli occupation, but the proposals provided by oil economists and experts confirm that opening a third export outlet for Iraq other than the waters of the Arabian Gulf and Turkey will give Iraq an advantage over Iran and Saudi Arabia in terms of export diversity, especially in times of military and political tensions in the Middle East.
Iraqi Oil Ministry adviser Ahmed Al-Omar said that the arrival of the pipe to Hadith, western Iraq, means the possibility that Iraq will transport its oil not only through Jordanian territory and then Aqaba, but also through the Syrian port of Baniyas. Al-Omar added that “the project will change the map of the oil industry and its production in the region and give Iraq a great advantage over other oil neighbors.” By approving the amount allocated for the start of the project, according to age, the government will start working on the implementation phase, stressing that Iraqi companies will work on it, and the pipe will be implemented through the Iraqi Ministry of Industry as well.
a strategic project
The Director General of the Oil Projects Company, Ali Ward Hammoud, said, “The Oil Pipeline Project in Hara is considered one of the most important strategic projects of the oil movement in Iraq, and it enhances the economy by enabling the country to export oil through new outlets.”
He added that “oil produced from the southern fields is exported through our ports and loading points overlooking the Gulf, which is the only outlet for most Iraqi oil currently, and with the presence of geopolitical challenges in the region, the Ministry of Oil has taken it upon itself to diversify the export outlets, as it has prepared during the past decade a study of the northern export system with the help of the most important international consulting companies and develop appropriate plans to develop new export outlets to serve the expansion of oil production in the country through licensing rounds offered by the Ministry.”
He continued that “a modern Basra pipe falls within this trend, and the size of the tube is 56 knots, and a card that provides the export of two million and 250 thousand barrels per day, and it will be manufactured by Iraqi hands, and the bulk of it will be made by the Iron and Steel Company of the Ministry of Industry. It provides new export outlets for Iraqi oil to the countries of Europe and North America, in line with the development road project and the government’s endeavor to make it a corridor for global energy, in addition to its role in transporting goods between East and West.”
He stressed that “there is an intention to connect the pipeline in the future to the port of Tartus on the Mediterranean, after the achievement of the appropriate security conditions in Syria, through a pipeline that is established for this purpose and connects a modern warehouse to the port of Tartus,” according to him.
Iraq towards new markets
According to Iraqi political sources, the beginning of the project was in 1983, when the Iraqi and Jordanian sides agreed to extend a pipeline from Basra to the port of Aqaba on the Red Sea, passing through Jordanian territory. At the time, the two sides demanded guarantees by the United States so that Israel should not target the pipe.
The sources state that the Sudanese government of Mohamed Shiaa is seeking to start the project as soon as possible, because the pipe represents a new type of Iraqi energy export outlet, specifically oil, and it also offers the opportunity for Iraqi oil to reach new markets in Europe, as well as economic gains and sustainable and diversified financial returns, in addition to participation and investment in international manufacturing sectors.
Although the financial budget of Iraq for this year included the new pipeline project with an estimated amount of 6.5 billion Iraqi dinars ($4.9 billion), the deputies of Basra Governorate confirmed that they would obstruct the project.
A member of the Iraqi Council of Representatives, Hadi Al-Salami, said that “the strange thing in this project is that he was rejected by most Iraqi parties during the period of Mustafa Al-Kadhimi’s (previous) government, but the parties themselves currently agree with it, and we do not know what the reasons, especially that the information is scarce about it, and we do not know the reasons for the government’s secrecrecy on it.”
Al-Salami explains that “politicians and deputies in Iraq do not have enough information about the pipe project, and we are demanding to know the economic feasibility of the project from the point of view of the government.”
The consultant in the international transport economy Ziad Al-Hashemi pointed out that “the Basra-Aqaba pipeline project is a strategic project to raise the level of cooperation between Iraq, Jordan and Egypt, and enhance the level of inter-regional relations, whether political, security and economic, and that the passage of the oil pipeline through a regional state such as Jordan, will not exploit this pipe to pressure Iraq in the future, and this ensures the smooth flows of Iraqi oil flows without hinderance.”
Al-Hashemi continues by saying that “the project raises fears of exploiting the line in the Israeli entity’s repliement of Iraqi oil in response to assumed Western requirements or pressures.”
Al-Hashemi added that “one of the problems that may face the project is the rejection by some regional pivotal countries to hinder Iraq’s attempts to diversify Iraqi oil export ports to the West, in addition to security pressures and problems in stability, which are still an obstacle to the completion and success of any Iraqi project, not to mention the possibility of opening new outlets for corruption inside and outside Iraq because of the high cost of construction.”
In turn, oil expert Kovnd Shirwani considered that “the modern Basra oil pipeline project falls within the framework of the first phase of a project that extends to the port of Aqaba in the Mediterranean, which will provide a new export outlet for Iraq.”
He continued that “we also believe that it is necessary to revive the Kirkuk-Ceyhan line, which was transporting up to 400,000 barrels per day, in addition to an investment possibility in the transport of Nineveh and Salahuddin oil and a card that could reach up to one million barrels per day, which provides important export outlets to Iraq.”
{Economical: Al-Furat News} The total sales of the Central Bank of Iraq from the hard currency of the US dollar with which the auction opened last week amounted to more than $1 billion.
Last week, the Central Bank sold 1 billion, $378 million, $407 billion and for the auction for the 5 days, 758 million, and $877 million, and $81, up from last week, which was $1 billion, 115 million,99,000, and $967.
The highest dollar sales were for Wednesday, with sales of 280 million and 112 thousand, and $188, while the lowest sales were for Sunday, with sales of 269 million, 320 thousand and $104.
Put that overseas remittance sales last week amounted to one billion, 264 million, 25 thousand and $407, an increase of 91% compared to cash sales of $114 million, 860,000 dollars.*.
While sales went in the form of cash and remittances abroad to finance foreign trade, while the sale price of the amounts of documentary credits and international settlements for electronic cards was 1310 dinars per dollar, and the sale of remittance amounts abroad was 1310 dinars per dollar, while the cash sale price was 1305 dinars per dollar.
Shafaq News / Tracy Jacobson, U.S. President Joe Biden’s candidate for U.S. Ambassador to Iraq, gave her opening address to the Senate Foreign Relations Committee. In her speech, Jacobson expressed her gratitude to President Biden and the Secretary of State for their confidence in her candidacy for this vital position.
Jacobson, who has more than 30 years of experience at the State Department, confirmed that she will work closely with the commission to advance U.S. interests in Iraq.
“If my appointment is confirmed, my top priority will be to protect U.S. citizens and strengthen our bilateral partnership to support our common strategies and interests,” she said.
She referred to her previous experience as a U.S. ambassador to Turkmenistan, Tajikistan and Kosovo, as well as as a list of business at the United States Embassy in Ethiopia, stressing that these experiences made her more qualified to promote American interests in Iraq.
On security, Jacobson stressed the importance of strengthening the stability, security and sovereignty of Iraq, pointing out that ISIS remains a threat in the region.
She added: “Our military provides vital support to the Iraqi and Peshmerga security forces in the Kurdistan Region. Ten years after our troops returned to Iraq to fight ISIS, it is time for our military to move to a new role. I will ensure that any transition from Operation Inherent Resolve to a bilateral security arrangement is geared towards defeating ISIS and ensuring Iraq’s security.”
Jacobson also stressed the importance of Iraq strengthening its relations with its neighbors, noting the positive steps taken by the Sudanese prime minister in this direction.
Jacobson noted that having economic development, and a government capable of providing services to its people, reduces the attraction of terrorism and also reduces the influence of Iran-allied militias that pose a significant threat to the country’s future.
“Iran is a malicious representative of Iraq and destabilizing the region and we recognize that the main threat to Iraq is the militias allied with Iran,” she said.
Jacobson also confirmed that it will continue to support Treasury measures to modernize Iraq’s banking system, and stressed that it will not “allow Iran to use the supplied “gas” to operate the terminals as a weapon against Iraq.
On the other hand, Jacobson warned of “Iran’s evil intentions and its continued role in disturbing the security situation in the region,” stressing that “Iran-backed militias pose a great danger to Iraq’s stability, and that they will work with all available political means to counter this threat and limit Iranian influence.”
In the context of supporting Iraq, Jacobson announced its commitment to strengthening vital sectors such as energy and banks, with the aim of achieving Iraq’s independence and protecting it from external interference, and linking it to the global system to achieve sustainable development and promote economic stability.
It should be noted that this opening speech comes ahead of the vote to appoint Jacobson as the United States’s ambassador to Iraq, which represents a new strategic step in U.S. foreign policy towards the Middle East.
Jacobson concluded her speech by emphasizing her commitment to protecting American interests and working for the stability and security of Iraq if its appointment is confirmed.
On January 26, 2024, U.S. President Joe Biden announced his intention to nominate Tracy Ann Jacobson, for the post of Ambassador Extraordinary and Plenipotentiary of the United States of America to the Republic of Iraq, instead of Alina Romansky.
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