Shatha Khalil *
The Iraqi Ministry of Oil has been keen to promote the rehabilitation and development of the tanker companies and to resume its national activity to export of crude oil to all parts of the world after a halt for three-decades.
The ministry recently completed the loading of the first oil tanker called “Baghdad” with crude oil and leaving southern export ports heading to the United States.
Oil Minister Jabbar al-Luaibi said the ministry plans to build a national fleet to transport oil and oil derivatives in favor of companies contracting with the Iraqi oil marketing company “Sumo”.
Al-Luaibi added that the ministry has made important steps in transforming this company into a winner after the decline and discontinuation of its maritime activity in the past decades because of wars and difficult economic conditions, pointing to its efforts to provide more support to the company, thus contributing to elevate it to the ranks of solid international companies.
The director general of the company Hussein Allawi said that this step comes under the direction of Oil Minister Jabbar Ali Al-Aluaibi to restore the activity of the Iraqi tankers company in the transfer of crude and oil derivatives to all parts of the world and a step for the progressive construction of this sector as it will transport crude oil to international ports by the operation of 4 giant carriers, and to be added 3 other carriers in the near future and will carry the Iraqi flag as it roams the world.
Allawi added that the company will load the tanker named “Basra” after the departure of the tanker, “Baghdad”, which carries two million barrels of crude oil in favor of a company that contracts with the oil marketing company.
He pointed out that the company has signed several cooperation agreements with the Arab Shipping Company, including transport and joint cooperation, and the training of national capacities by 600 trainees to run the tanker fleet in the coming period, pointing out that the company plans to build an integrated fleet of giant tankers to be the national carrier of oil and its derivatives.
The spokesman of the Ministry of Oil Assem Jihad said that the company has recently received the certificate of quality (ISO), which is an important step of the ministry to revitalize the company and turn it from loser to winner through activating its activities in the transfer of oil derivatives and crude oil, pointing out that Iraq is the second largest producer Of oil in the Organization of Petroleum Exporting Countries “OPEC” after Saudi Arabia, with a capacity of 4.8 million barrels per day.
In the context of the planning, achievements and development of the ministry, new contracts were signed in the initials, on June 4, 2018 for the rehabilitation of oil fields and the border exploration spots with two Chinese companies, and three other contracts with the UAE Company. Al-Luaibi stressed that the ministry has ambitious plans to develop these fields and the border exploration spots. The ministry will work on developing the remaining five border fields in the near future, adding that it is hoped that the production rate of the six fields will reach 500 thousand barrels per day in the future.
Al-Allaibi said that the ministry hopes the companies signing the contracts to develop the necessary plans for the development of production rates and increase it in accordance with the specified time periods in addition to the implementation of service projects for areas surrounding the fields and exploration patches, relying on the employment of Iraqi workers by not less than 95%
The Director General of the Department of Contracts and Licenses of Petroleum Abdul-Mahdi Al-Amidi said that the ministry signed with the Chinese company (GEO-JADE) two contracts for the development of exploration patches and fields in the (Naft Khana) in Diyala province and (Huweiza) in Maysan province, in addition to the signing of a contract with the company (UEG) to develop the exploratory patches , fields of (Sinbad ) in the province of Basra, adding that the ministry will present the six contracts signed with companies to the Energy Committee in the Council of Ministers for the view and ratification.
A representative of GEO-JADE of China, Henry Soo, expressed the company’s readiness to work with the Ministry of Oil and abide by the terms of the contract and implement them to achieve the common interests of both parties.
In the presence of the ministry’s agents for extraction, liquidation and distribution, a number of general managers, ministry officials, the inspector general’s office and the media, the ministry signed another contract with the representative of Shankwei Company (UEG), which expressed the company’s readiness to develop working relations with the ministry in new fields.
The Ministry of Oil is keen to develop oil fields and rehabilitate the working cadres and conclude contracts with the firm companies to increase the production and upgrading of the oil sector at the appropriate level of the volume of wealth in Iraq, especially after the exposure of the oil fields and refineries in the north and west to sabotage and complete destruction after the control of the terrorist organization ISIS on it since June 2014, and freed them from its fist, on the last December 10.
Iraq is the second largest producer of oil in the Organization of Petroleum Exporting Countries, “OPEC” after Saudi Arabia, with a capacity of 4.8 million barrels per day.
Economic Studies Unit
Rawabet Center for Research and Strategic Studies