Iraqi Oil Ministry, A New Step Forward

Iraqi Oil Ministry, A New Step Forward

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Shatha Khalil *
Oil Ministry and its Minister Jabbar Ali Hussein Laibi are keen on the development of ambitious plans and programs to develop oil and gas resources in Iraq, and its development by keeping up with developments and changes in the oil and gas industry in the world, and the development of plans and programs for the years 2017,2018,2019,2020 of the sectors of extraction, filtering and drilling, the gas industry and the distribution of oil and vocational education and training.

The minister stressed on the need to pay attention to the preparation of qualified scientific personnel, and the agreements and contracts with countries and international companies should include special provisions for the training of workers in the oil sector, and the development of it.

He also stressed on the development of ambitious plans to upgrade infrastructure, and activate the investment sector in the growth and development process to achieve the optimal investment of oil wealth, and the development of the oil sector and its development, stressing that the ministry and thanks to the efforts of workers in the Iraqi oil sector succeeded in achieving unprecedented increases in the production and export and meet the needs of the citizens of oil products across Iraq, and to make extraordinary efforts to meet the needs of displaced families and citizens in the liberated areas.

And al- Laibi stressed the ministry ‘s keenness on the restructuring of the National Oil Company due to its importance in the development of oil industry in the country, and said that the ministry has paid great attention to the restructuring of the national oil company and activating it, indicating that the company law has not abolished it but annexed it to the Ministry of Oil in 1986 and that the draft of the resolution was sent to the House of Representatives included the restructuring of the national oil company, in order to restructure the work of the Ministry and the national oil company and organize it in line with increased production and export rates, and the development of infrastructure and develop of the efficiency and performance to be one of the leading companies in the region and the world.

He added that the ministry is working to establish firms of national gas and national refineries, in a move aimed at regulating the management of oil and gas wealth in Iraq and determine the tasks and responsibilities of each party, pointing out that the National Oil Company was founded in 1962.

Al- Laibi pointed out that specialized teams have been formed to directly implement projects service in the province of Basra in southern Iraq, and said that the ministry is determined to implement a number of service projects, the first is the establishment of a tourist town in the “al-Mufti”, and a project to rehabilitate the al-Ashar river, archaeological Clock of Basra, Antique, and build a typical school.

He pointed out that “al-Mufti project” includes the construction of the coast site on the Shatt al – Arab over an area of 85 Acres, in addition to a water city carried out on an area of 38 Acres that it includes a water and tourist resort to entertain families and a water museum . The project also includes a zoo area of more than 52 Acres, as well as for the establishment of sports city with a closed playground for football, and an athlete Olympic swimming pool , sports and leisure facilities and restaurants on an area of more than 15 Acres.

The Deputy minister for distribution of petroleum products Mutasim Akram Hassan was keen during the last two years to make extraordinary efforts to organize a basic plan to achieve the goals of the company with the support of national economic goals, in the oil sector of distribution, transport, storage and sale of products and the management and operation of sales outlets, its affiliates and supervise the outlets that managed by the private sector, to secure the needs of citizens and public and private sector, in addition to supporting the liberated areas, and restore stability as well as on the implementation of export contracts, so as to achieve the approved plans in achieving the goals of the ministry by axes.

Given the excellence of work in the ministry with regard to the distribution of petroleum products, despite the challenges experienced by the country, and thanks to the directives of the Minister of Oil and its Deputy minister for distribution Mutasim Akram Hassan for all joints of the ministry, and the attempt to improve the work in order to provide better services to all civil, military and civil institutions at the level of the citizen, the minister has praised the efforts made by the deputy minister for distribution Mutasim Akram Hassan.

Despite the large loss caused by the Baiji refinery that it is estimated at 45% of the domestic production capacity , the company for the distribution of petroleum products managed , thanks to the directives of the oil minister, and Deputy Minister Mutasim Akram Hassan , to secure and provide a deficit that happened since the exit of Baiji refinery from the service , as it did not get any crisis, thanks to the development of a solid policy of operations to maximize resources and reduce expenses, and provide petroleum products for all the public and private sectors and government agencies, support the security forces and to the popular crowd facing terrorism and restore stability to the liberated areas
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This valuation coincided also by the secretary general of the Organization of Petroleum Exporting Parkindro on 18/04/2017, presented a book of thanks and appreciation No. 754, to the Deputy minister for distribution Mutasim Akram Hassan, in recognition of his efforts and achievements in the distribution of petroleum products, in support of all provinces ,support the security forces and the popular crowd and displaced persons and the liberated areas, the following are the most important efforts made by the company in the country’s service: –

The first axis: the company for the distribution of national products is making great efforts to secure the consumer need and provide it from white petroleum products to all the provinces, including the liberated regions and districts in the hot provinces: “Anbar, Salahuddin, Nineveh” with flexibly and without delay despite the loss of production capacity of the Baiji refinery, which form 45% of the production capacity of the refineries, as well as the security situation is unstable in the hot provinces.

The second Axis:
– Support for the security forces and the popular crowd; it has been formed a central committee to support the crowd in the company, and sub – committees in all bodies and its affiliates, and to follow up directly by the Director – General, as the expense was up to two hundred one dozen million Iraqi dinars. The company brought aid requirements of operations sectors to the most troops of the popular crowd since the start of liberation operations while continuing to provide assistance and logistical requirements to maintain the momentum of the battles and the rehabilitation and reconstruction of distribution outlets, and the distribution of petroleum products for public and private sectors.

– support the central government in the face of terrorism and restore stability, as the company is aware of the importance of fuel in the durability of the joints of life, and see that one of the first duties is the fight against terrorism, and to prevent smuggling in all its forms, and to fight the corrupt and corruption, and secure access of petroleum products for the districts and provinces, and deliver products to the sectors of operations of the security forces of the crowd forces to continue war against Daesh, and securing petroleum products for the displaced families in the camps and the liberated areas, and rehabilitation of distribution outlets, and operation of civil stations in the liberated areas, and coordination with the Ministry of Displacement and migration for the purpose of securing free amounts for families and service departments in the liberated areas and to provide the moral and material support for the relief of families, and coordination with the security authorities to obtain approvals for the passing of tankers loaded with oil derivatives to the liberated areas.

– In Anbar province , families have been secured economically and security; where the rehabilitation of 16 government stations were carried out and secured with oil derivatives, and has re-operated gas plants in coordination with the packing company, and the opening of 47 of the civil stations.

– in Nineveh province , the rehabilitation of 16 of the government stations has been carried out, and reopening of 28 of the civil stations was accomplished , and the re – run 8 of gas plants in coordination with the packing company, and the rehabilitation yard for oil and gas.

– In Salah al- Din province, the rehabilitation of 13 government stations has been carried out, and re – opening 46 of the civil stations, and re – operation of 16 gas plants in coordination with the packing company, and the rehabilitation of 13 yard for oil and gas.

– The supply of petroleum products for the displaced people who are in the provinces of Kurdistan Region
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The third Axis: The ministry has worked to support the investment, under the guidance of the Minister of Oil Laibi, and worked to improve the distribution outlets to be in decent and cultural level, and encouraged investors and investment for the success of specialized projects, in the development of government distribution outlets, and the exploitation of empty spaces for washing and lubrication, and a coffee shop to provide better services and directing investors to conduct business on the development of their outlets .

Fourth Axis: support the national economy projects in the field of construction, and the establishment of development and service projects such as cement and sugar plants, and investment projects, companies of licensing rounds, which have a significant role in providing job opportunities for young people in the field of petroleum products needed by the projects.

Axis V: in the field of support of electric power generation, which includes support for the supply of power stations, and support the supply of generators of all kinds, the distribution company of petroleum products distributed terminals which distributes gas oil and fuel oil since 2012 until 2016.

Also supplied quantities of fuel oil for power plants through payment on credit, with total debt stood in favor of the distribution company of petroleum products 5,118 five trillion and one hundred and eighteen billion Iraqi dinars, and 8 trillion Iraqi dinars for the benefit of the Oil Ministry, except for amounts due to the Mid and Maysan oil companies during the years 2015-2016.

The ministry contracted with a civil tanker companies to transport petroleum products to the provinces: “Baghdad and the south, and the Middle Euphrates”
and supported and provided generator fuel of all types: residential generators, and government departments, the generators of private sector, and generators of the displaced.

Axis VI: Support for religious tourism, the distribution company of petroleum products is keen to the supplement of the the tourism sector and religious projects , conducted by the holy sites body in the provinces , with the petroleum products, and all they need for the success of the projects in it , the company also provided to the project of Najaf airport all needs of oil derivatives.

The ministry directs the national oil companies to double the maximum efforts to achieve the goals and future plans despite the economic, financial and security challenges, stressing that Iraq is the victor in the end thanks to the sincere efforts of his sons.

The Secretary-General of the Organization of Petroleum Exporting Parkindro, said the Iraqi oil industry is among the region’s leading industries, citing the contribution of Iraq’s active role in the founding of the Organization of Petroleum Exporting Countries and the embrace of Baghdad for the first meeting before the join of other countries to it to be a hard number in the global energy balance.

 

Unit of Economic Studies 

Rawabet Center for Research and Strategic Studies