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Video: Where has Iraq’s Oil Wealth gone?

From Al Jazeera. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Decades of plundering: Where has Iraq’s oil wealth gone?

Ranked as the fourth-biggest oil producer in the world, many would assume that Iraq has the financial resources to weather the pandemic.

But that is not the case – its fragile economy is struggling to cope and it may turn to the International Monetary Fund for assistance.

It has already devalued its currency by almost a fifth, enabling it to eke out more dinars for dollars. Ahmed Tabaqchali, the chief investment officer of AFC Iraq Fund, helps explain where all of Iraq’s money goes:

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Oil Exports Slightly Up for January

By John Lee.

Iraq’s Ministry of Oil has announced initial oil exports for January of 88,922,697 barrels, giving an average for the month of 2.868 million barrels per day (bpd), up from the 2.846 million bpd exported in December.

These exports from the oilfields in central and southern Iraq amounted to approximately 85,870,503 barrels, while exports from Kirkuk amounted to 3,052,194 barrels.

Revenues for the month were $4.739 billion at an average price of $53.294 per barrel.

December’s export figures can be found here.

(Source: Ministry of Oil)

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KRG to Resume Override Payments to Genel

By John Lee.

Genel Energy has received notice from the Kurdistan Regional Government (‘KRG’) that override payments, whereby Genel receives 4.5% of monthly Tawke gross field revenues, will resume with the January 2021 invoice, to be paid in February 2021. Assuming the prevailing oil price, this translates into over $5 million of additional cash proceeds on a monthly basis.

This is consistent with the communication received from the KRG as announced on 17 April, which stated that the override payments would be suspended for at least nine months, and also that in a scenario where the oil price recovers to c.$50/bbl, a review of the situation would take place immediately in respect of the outstanding receivable.

In line with this communication, the KRG has now also submitted a reconciliation model for repayment of the receivable relating to amounts owed for invoices for oil sales from November 2019 to February 2020 and the suspended override from March to December 2020. We will work through this submission and update the market when appropriate, as further discussions with the KRG take place.

(Source: Genel Energy)

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China “Set to Bail Out Iraq” with Oil Deal

By John Lee.

Iraq is reportedly poised to sign a multibillion-dollar contract with China’s ZhenHua Oil, in what Bloomberg describes as a bailout from Beijing.

Under the deal, Iraq’s cash-strapped government which will receive money upfront in exchange for long-term oil supplies.

Click here to read the full article.

(Source: Bloomberg)

The post China “Set to Bail Out Iraq” with Oil Deal first appeared on Iraq Business News.

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Iraq Increases Oil Exports in Oct

By John Lee.

Iraq’s Ministry of Oil has announced initial oil exports for September of 89,153,899 barrels, giving an average for the month of 2.876 million barrels per day (bpd), up from the 2.613 million bpd exported in September.

These exports from the oilfields in central and southern Iraq amounted to approximately 86,000,000 barrels, while exports from Kirkuk amounted to 2,867,637 barrels. Exports to Jordan were 263,058 barrels.

Revenues for the month were $3.431 billion at an average price of $38.48 per barrel.

September‘s export figures can be found here.

(Source: Ministry of Oil)

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Iraq announces Oil Export Data for Sept

By John Lee.

Iraq’s Ministry of Oil has announced initial oil exports for September of 78,388,619 barrels, giving an average for the month of 2.613 million barrels per day (bpd), slightly up from the 2.597 million bpd exported in August.

These exports from the oilfields in central and southern Iraq amounted to 75,000,000 barrels, while exports from Kirkuk amounted to 3,133,834 barrels. Exports to Jordan were 254,785 barrels.

Revenues for the month were $3.167 billion at an average price of $40.407 per barrel.

August’s export figures can be found here.

(Source: Ministry of Oil)

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Finalised Iraqi Oil Export Figures for August

By John Lee.

Iraq’s Ministry of Oil has announced finalised oil exports for August of 80,494,536 barrels, giving an average for the month of 2.597 million barrels per day (bpd), down from the 2.763 million bpd exported in July.

These exports from the oilfields in central and southern Iraq amounted to 77,505,136 barrels, while exports from Kirkuk amounted to 2,989,400 barrels.

Revenues for the month were $3.492 billion at an average price of $43.384 per barrel.

July’s export figures can be found here.

(Source: Ministry of Oil)

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Preliminary Oil Export Figures for August

By John Lee.

Iraq’s Ministry of Oil has announced preliminary oil exports for August of 80,494,536 barrels, giving an average for the month of 2.597 million barrels per day (bpd), down from the 2.763 million bpd exported in July.

These exports from the oilfields in central and southern Iraq amounted to 77,505,136 barrels, while exports from Kirkuk amounted to 2,989,400 barrels.

Revenues for the month were $3.517 billion at an average price of $43.693 per barrel.

July’s export figures can be found here.

(Source: Ministry of Oil)

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Iraq Loses $11bn in 4 Months as Oil Prices Plunge

From Middle East Monitor, under a Creative Commons licence. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Iraq has incurred around $11 billion in losses in four months due to the global drop in oil prices, the State Organisation for Marketing of Oil (SOMO) announced yesterday.

“Over the first four months of 2020, Iraq sold approximately 409,096,972 barrels of crude oil at an average price of nearly $38 per barrel, achieving around $15.4 million in revenue,” SOMO said in a statement.

The state-run organisation added that the country sold 423,284,489 barrels during the same period of 2019 at an average price of $62 per barrel. “Iraq achieved a total of $26.2 million in oil revenues in the first four months of 2019,” the organisation added.

Reuters recently reported that oil prices had fallen yesterday as investors were worried about a second wave of coronavirus infections. But it added that the new output cuts from Saudi Arabia had tempered worries about oversupply and limited price losses.

Global oil demand has slumped by about 30 per cent as the coronavirus pandemic has curtailed movement across the world, leading to growing inventories globally.

While crude futures have fallen more than 55 per cent this year because of the virus, prices have risen over the past two weeks, supported by a modest rebound in demand as some travel restrictions – which were imposed by governments to curb the spread of the virus – were eased.