Iraqi oil ministry posts $1 billion revenue increase

A ship connects to the Basra Oil Terminal off the Iraqi coast. [Atef Hassan/Reuters]

A ship connects to the Basra Oil Terminal off the Iraqi coast. [Atef Hassan/Reuters]

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Iraqi oil officials said exports increased during the month of July, yielding a billion dollar windfall for the country.

Revenues from oil sold on world markets "went up during July by more than $1 billion in comparison to the previous month", Ministry of Oil spokesperson Assem Jihad told Mawtani.

Jihad said the increase in revenue resulted from the high volume of oil exports, from 72 million barrels in June to 77 million barrels in July.

He added that oil revenues topped $6.5 billion in June, or an average of $90 per barrel, while profits jumped to $7.5 billion -- an average of $97 per barrel -- in July.

According to Jihad, exports from Iraq's three oil-exporting ports -- Basra, Khor al-Umaya and the floating port – account for 90 % of the total Iraqi oil exports.

Oil exports from Iraq's northern oilfields are transported via pipeline to the Turkish port of Ceyhan on the Mediterranean Sea, while other exports travel to Jordan by tanker trucks.

Jihad said it is likely there will be a fresh increase in oil exports "during the next few months of this year, which in turn will be reflected in increased financial revenues".

The oil ministry "is planning to increase oil production this year to an average of 3 million barrels a day, with an average daily export of 2.6 million barrels", he said.

Oil revenues to help boost development projects

Faisal Abdullah, director of the media office for the deputy prime minister for energy affairs, said increasing oil revenues have great economic importance.

"Any increase in revenues generated by selling oil means increasing the volume of funds in state coffers," he said.

Abdullah told Mawtani, "The accumulation of these increases will contribute towards improving the monthly income of citizens, and strengthen government efforts to achieve national development through the execution of more infrastructure projects in various economic and service sectors."

He said he believes these revenues will steadily increase when international investment companies complete their work developing Iraqi oilfields, which will increase Iraq's oil production capacity.

Uday Awwad, a member of the parliamentary energy committee, said he considers the past month's increase in oil revenues "an indication that the oil industry in the country is on track towards gradual development".

Awwad told Mawtani that the government should focus efforts "on reinforcing [Iraq's] export capacity by rehabilitating and modernising strategic pipelines carrying oil across neighbouring countries and re-commissioning ones that were halted".

He said it will also be important to build additional oil ports "to absorb the growth in production".

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    محسن

    2012-9-8

    Oil is the most important thing in Iraq. Thus, we must exploit it well. This can only be achieved through the joint efforts of the different sects of the people in a more effective and efficient way. It is the best solution and the way out of many crises suffered by the Iraqi people. Thus, specialized foreign parties must invest in oil. However, there are some fears from some political parties in Iraq, due to the lack of confidence between the political parties operating in the Iraqi political arena. This is in addition to fearing that the foreign companies would control the oil market or the Iraqi economy and thus influence political decision-making. Besides, the security conditions are not stable in the oil-producing provinces which are currently going through a continuous security crisis. Thus, the competent authorities must do their utmost in order to develop the oil wealth quickly to keep up pace with the other countries. Thus, the Iraqi Government must open a new page with oil, its refining and processing. It must limit its crude exports because when refined or processed, we produce many derivatives from oil, which leads to increasing its price and the manpower. The latter will provide many job opportunities for the Iraqi youth. Therefore, the oil production and the revenues of the Iraqi State will grow more than ever before and Iraq will become among the countries which control oil.

  • كمال جبران

    2012-9-8

    Oil wealth has a particular importance for the Iraqi people. The latter have the right to invest it and use it freely. It is an indication of its sovereignty. Thus, we must pay further attention to it and work on developing it. The State and the Government must assume their role in order to exploit this wealth for the benefit of the Iraqi citizens. This is in order to pave the way for the doors of stability and to develop their country, Iraq.

  • عامر صادق

    2012-9-8

    No one can ignore that oil in Iraq has a magic effect on the political, social and economic conditions and changes. Thus, the competent authorities must work on activating the importance of oil in Iraq. They have to do their best and try hard to solve the crises and problems in the oil field. This is in order to anticipate the future of the oil sector and its role in the economic development in Iraq. Oil is considered an important source of financial and monetary revenues, given its important impact on the economic conditions of Iraq. Thus, it will play an important role in the reconstruction of Iraq. The available data and studies show that oil will remain influential in this century in guiding the Iraqi economy. Oil is among the most influential economic factors on the future of society, economy and the State. Thus, the competent authorities must take interest in the oil policy through providing it with the most modern equipments in the developed world in order to keep abreast with the latest technology in the whole world. In fact, not taking an interest in oil and not using modern technological equipment make Iraq lag behind. This would sadden us because such a wealth would put Iraq at the forefront of the world and make it one of the most economically developed countries. This will not come out of nothing. However, all the competent units must join efforts.

  • صباح هادي

    2012-9-8

    In Iraq, oil represents a booming economy and all countries envy Iraqi because God blessed and bequeathed it with this great blessing. Thus, Iraqis must thank God and be grateful to Him. They must pray to Him to sustain this blessing and make them think about means to modernize it and exploit it to develop their country and move it forwards. The country will then keep pace with the other developed countries in the world. Through exploiting oil, Iraq can launch investment projects which would bring together all the sects of the Iraqi people and give its unemployed youth new job opportunities. Thus, thanks to oil, Iraq can easily and effectively control the unemployment problem. Indeed, through solving the unemployment problem, we can have sound minds which manage these projects.

  • قاصد حمود

    2012-9-8

    Undoubtedly, oil plays an important role in the Arab world in general, and especially in Iraq. In fact, oil directly affects the economy of any country, especially Iraq. Thus, we must take further interest in it through increasing oil production rates. In so doing, the Iraqi people can improve their living standards.

  • نزار فائز

    2012-9-3

    There is no doubt that the Iraqi oil is one of the most important beneficial factors for the Iraqi economy which is strongly influenced by the extent of productivity of the Iraqi oil. This gives us the right to call on the Iraqi Government to take further interest in the oil sector and reflect this in the form of positions and real job opportunities for the struggling Iraqi youth.

  • جوهر الياس

    2012-9-3

    Oil is considered as one of the most important Iraqi products as it is responsible for increasing the economic income of the Iraqi State. Everyone knows that Iraq is one of the most important world’s oil producing countries. Everyone is also aware of the extreme importance of the Iraqi oil for the world countries and for Iraq itself, given that its economy relies mainly on Iraqi oil and this has a considerable impact on the economy of Iraq. Of course, the modern oil projects may open new horizons in front of Iraqis so that they could start new works. Thus, this represents an opportunity for the Iraqi Government to provide new job opportunities for the youth who are currently suffering from unemployment. Indeed, the work is certainly very important for Iraqis as it will prevent people with weak souls from joining terrorist movements and extremist groups so that everyone will become an effective member of society and have a hope in life. However, if the country comprises a huge unemployment rate among the youth, this will bring about major dissensions which can destroy the State and thwart its hope to achieve any modern renaissance or modern scientific or technological development. In fact, achieving a renaissance and development requires a giant economic boom. Thus, Iraq must restore its economic strength and become a giant modern state once again which is able to achieve a major renaissance.

  • مازن الحيدري

    2012-9-3

    Oil is considered as one of the most important pillars of the Iraqi economy since it represents a large percentage of the Iraqi income. It is a vital commodity that affected and is still affecting the reconstruction of Iraq. In fact, the latter represents the world’s second largest oil reserve after Saudi Arabia. Therefore, we have to ensure the optimal exploitation of this oil in order to achieve the required revenues. In addition, the oil production cost in its fields cannot be compared to its revenues given that the Iraqi oil fields are located on the land. Thus, we have to increase the production capacity in order to develop the process of producing oil in Iraq.

  • فاروق عدلي

    2012-9-3

    In a country such as Iraq, which is a very big oil-producing country, and which owns a large number of large oil reserves, there should be care for these huge privileges, to increase the job offers for the Iraqi young men. More projects can be created to include large amounts of manpower and jobs. This should reduce unemployment in Iraq, and allow it to move forward towards the development and progress which Iraq deserves. Unemployment has a bad impact on development and advancement, not only economically, but also from the social point of view, because the extremist groups make use of the disappointed youth who suffer from unemployment and involve them in criminal acts, and they easily influence their minds quickly.

  • زهير

    2012-9-3

    Oil enjoys a major importance in the Iraqi economy, for it depends on the oil sector to a large extent, because Iraq has got big oil reserves, and it is the largest reservoir of oil in the world after the Kingdom of Saudi Arabia. Consequently, the Iraqi citizen must feel the results of this huge resource reflected on his conditions and the standard of living, and in the form of advanced services.

  • نور الدين عبدالله

    2012-9-3

    Oil is one of the most important economic resources in Iraq. Petrol is found in huge quantities inside Iraqi territory. The Iraqi government can use the income from oil exports - which is very high - in reconstructing Iraq and rebuilding factories, universities and hospitals, which will help in one way or another to solve the crisis of unemployment and the lack of job opportunities for the graduates and the youths. Using the Iraqi oil export income correctly in developing the resources and sectors of the state is a big step forward, and it will result in providing more job opportunities for the unemployed youths, using their energies, their powers and their abilities for the benefit of their country. Hence, the standard of living will rise and prosperity will overwhelm the whole Iraqi society. It will also lead to growth in the country's economy. Then, we can all witness the return of Iraq and see it join again in the race of competition among the economies of the countries of the world. It will develop and improve its services, and once again restore its ancient glory, its great civilization and its greatness. Each person who works for the Iraqi government is required to protect and maintain the Iraqi oil income, defy and confront any greediness of other selfish officials, to help Iraqis witness and feel the results of these incomes and the their effects on their own life and on society. This will show and reflect itself in providing job opportunities, in raising the standard of living, in developing and improving the society, and in looking forward to a better future and a respectable life.

  • رقيب نوري

    2012-9-2

    Oil is considered a very important resource for Iraq. It is the first resource to increase the income per person in Iraq. Yet, this has to be done based on fair distribution by the central government, the establishment of new projects of oil and its derivatives, the employment of the Iraqi youth, and provision of job opportunities. The oil resource will enable Iraq to stand on its feet again and to walk towards the real development which will provide work and good opportunities for the youth as well as good investment projects offering job opportunities for the young Iraqis. Accordingly, these resources will be employed in the right place where they should be used. Oil plays a major role in the stability of the conditions in Iraq through the effort of the Iraqi Government to justly distribute the oil resources and to have mechanisms to achieve this and to avoid…

  • قادر علي

    2012-9-2

    All the Iraqis are required to close the page of the past, work on building their country and leave all the disagreements between them for a better future for the Iraqis who suffered the eruption of the Iraqi war. They were suffering from the oppression by the former regime, which suppressed them and terrified their hearts. The Iraqis did not know other meanings of real democracy and any Iraqi who speaks 0f politics is doomed to prison or death. The Iraqis suffered from the lack of security. However, the Iraqi Government is working on improving the security situation as soon as possible. The Iraqis must forget what happened in the past and forget their disagreements with the government. They have to work and cooperate in order to build the future of their homes. Iraq is a great State and it has many riches that can change the future of all Iraqis into something better. All of the true Iraqis should cooperate with the government in order to solve many of the problems in Iraq such as terrorism, which needs many solutions to improve the security situation and restore its security. The government must work on operating the oil sector, which stopped for so many years. I wish that Iraq would be in a better condition.

  • خالد ارشد

    2012-9-2

    Oil is one of the most important natural resources which Allah has granted to Iraq and Iraqis. Therefore, the Iraqi economy is largely based on the Iraqi-produced oil. As a matter of fact, working in this field provides job opportunities for a lot of Iraqis. This should impel the Government to give up importing foreign manpower and exploit its own human resources.

  • فريد حاتم

    2012-9-2

    Perhaps one of the most important foundations of a strong state is the possession of oil resources. In fact, this makes these countries the coveted goal of a lot of the world nations. If we talk about the existence of oil in our great country, Iraq, we have to talk about its role in providing job opportunities for the youth given that oil is exploited in various projects. Therefore, it increases not only the income of the individuals but also the national income. Oil also plays an important role in increasing the living standards and providing services whether individual or public services through the provision of the financial resources which are needed to provide these services. Consequently, Iraqis will enjoy better living conditions. As a matter of fact, we can say that oil is a wealth!!

  • صباح عادل

    2012-9-2

    Oil is one of the most important economic resources in any country. Iraq is one of the most important Arab countries in terms of oil fields. Indeed, the presence of oil reserves affects all the economic fields such as employment, the rising of living standards and the increase of the gross national product. In short, oil is a real source of wealth. The State should exploit oil in order to achieve growth and prosperity.

  • ابو شريف الاردني

    2012-8-22

    Iraq, the old historical nation, is one of the firmly established major countries and the old-ancient civilization countries. This is a rich country that has natural fortunes and all human and financial potentialities. We must optimize concerning Iraq’s future despite all the difficulties. Iraq is a country that is able to develop and pass a better and higher level. Iraq can develop and progress despite all the challenges, terrorism, violence, extremism, and sectarian riot. It must cross over these difficulties through the unity of efforts towards a better future and modern civilian life. Safety and settlement must return to Iraq, the sister Arab country. This is a great nation, as all Iraqi national powers must unite for a better tomorrow for Iraq. The comprehensive progress must be achieved for Iraq. This very important country in the reign must return to its leadership, economical progress, advancement, and modernism. The newly coming Iraq has a brilliant future due to the efforts of Iraq’s sons to surpass this crisis and cooperate in order to overcome all appearances of violence, terrorism and retardation. Modern Iraq must come back and face all challenges and mazes. There must be a comprehensive economical progress for Iraq in order to develop, progress and step giant steps towards development, cultural, economical, and social progress as well as to cross the war disasters and return to progress in all fields. Progress is very important for the sister country of Iraq as it should regain its position in the Middle East and it should regain its status in the world as well. We are all full of hope and optimism, and dream of a better future for Iraq.

  • khalid

    2012-8-22

    what we will get from the hncreasing income in iraq only hunger and kill this the truth only recent politicians increase their incone by increase the stollen money all of them are theifs

  • فيصل رشيد عياش ألدليمي

    2012-8-21

    We pray to God Almighty that this will lead to the employment of the new graduates of the Iraqi Oil Institute and the reemployment of the former Iraqi cadres to train the new young employees for the best of Iraq. May God give success to all those who are working for the best interest of the people of Iraq!

  • عباس عزيز

    2012-8-20

    Goodness is coming, Iraq. God willing, it will come by the will of patriotic, sincere people. I just hope that Iraqis abandon the pessimistic view.