Oil Exports of Iraq in the Half of 2016: The oil ministry of Iraq stated that the total export of crude oil in the first half of 2016 reached 592 million barrels. The economists believe that it’s a big economical achievement obtained by Iraq in the last two years.
The overall export of oil was increased by 20% than the last oil export in the international market. Report also stated that many international and multinational companies bought the Iraqi crude oil in 2016 and some new oil contracts were also signed by the government with international companies. Recently, Iraq is exporting its crude oil to the 34 international companies of different countries. The total number of companies will increase by 30% by the end of this year according to the oil ministry of Iraq.
The total income generated from this oil trade in the international market was $17.7 billion. The revenue generated by Iraq government from the oil trade as compare to the previous year is 15%. Iraq is aim to enhance its oil trade in the international market by stabilizing its price as well. The Saudi and Iran competition in the international market and their tension is creating problems for Iraq that is struggling to rebuild its ruined country. Iraq is totally depending on its oil export and critical international situation is continually creating issues for Iraq and its economy.
Few years ago, it was hard to make investment in the Iraq oil industry for an international company. Tough rules and regulations were big hurdle for an international firm to start any kind of business in the country. Contrary to this, the situation is completely different today. The central government of Iraq has passed a resolution to provide special authorities to the governor of every province to enter into any contract with the any international company with prior notification to the government.
These special powers are sure way to enhance the oil export in the international market. Now governor of any province is free to sign any oil contract with the any international firm without permission of central government. These soft business conditions have attracted hundreds of international companies to do business with Iraq. That’s the reason; we are looking many international companies are signing new contracts with the Iraq administration to buy crude oil in the international market.
Many other companies are also entering into contract with the Iraq government to explore new oil fields. Some media reports are only focusing on bad happening in Iraq but don’t highlight the better things being happened in Iraq. The tension in Iraq is only towards northern area of the country but south is safe where 98% oil fields are located.