Economy| 08:38 – 31/05/2024
Baghdad – Mawazine News
The Prime Minister, Mohammed Shiaa Al-Sudani, stressed that the development road project means, according to the current market equations and the international trade movement, a link between the East and Europe through Iraqi and Turkish territories together.
Al-Sudani, during an interview conducted by the Anadolu Agency, he said: At the beginning, we must historically look at Iraq’s role in trade between the East and West for centuries, and I do not exaggerate if I say since prehistoric times, the land of Mesopotamia has been an easy trade corridor that commercial convoys prefer to follow its paths, stand and trade with its cities, cities and urban centers.
He stressed that the development path is the restoration of this mainly historical role, and the link between the port of Faw and the Turkish border, means, according to the current market equations and the international trade movement, a link between the East and Europe through the Iraqi and Turkish territory together.
The Prime Minister of Iraq explained that the region is witnessing conflicts and tensions that decline at one time and flamel at another time, and this pushes us to the need to focus efforts on projects of intertwining interests and overlap in benefit.
He added: “The development route will provide an opportunity for the emergence of industrial cities on both sides, which will be complementary to the trade passing through it, and later this year we will launch the first docks of the port of Faw, and the flow of goods through the development route will begin initially.”
He continued, saying: All indicators, economic readings and feasibility studies, say that this corridor is the least expensive and fastest among the rest of the corridors, we do not say that it is an alternative, but regional and international trade really needs the path of development, it is a link project and develops overlap in interests and the reasons for economic permanence.
Turkish Transport and Infrastructure Minister Abdulkader Uraloglu said, following President Erdogan’s visit to Iraq, that with the development route running, the volume of trade with Iraq will rise from $20 billion to $30-40 billion.
On the future of the volume of intra-trade between Turkey and Iraq, which is currently estimated at about 20 billion dollars, the Prime Minister of Iraq said: The increase in the volume of intra-trade with Turkey, can be expanded vertically, but we are seeking to expand Affi as well, in short, this is the role of the development road project and the projects attached to it.”
He added: “Expesces and history have proven that the progress of a country alone and in isolation from the neighborhood, is something that carries an unknown future on all possibilities and conflicts, so we focus on that increasing the capacity of exchange and actual partnership (with Turkey), is the guarantor of stability and deep long-term relations.”
He continued: In our relationship with the Turkish brothers, we also focused on one of the most promising sectors in investment and cooperation, which is the agricultural sector, and soon we will witness practical steps in this aspect, and the participation of Turkish companies.
On investments in Iraqi gas fields, the Prime Minister of Iraq, in his interview with Anatolia, said: “Gas investment is a strategic test for Iraq, and our national wealth must be optimally utilized in the service of our people and development plans.”
He added: The burning of gas cannot be continued, first from the waste of this wealth that can be used, and secondly from the environmental effects, we announced a special licensing round to invest gas fields.
He continued, “We plan to be satisfied within 3 years of domestic gas production, and Iraq is confidently stepping to be an important element in the gas market within 5 years and we will achieve self-sufficiency in this material to calculate electricity production.”
The prime minister of Iraq said: The specialists know that having a technological base for gas investment is at the same time the base for the widest petrochemical industries and this is what we seek.”
Regarding the potential partnerships in these investments, the Prime Minister of Iraq pointed out that the doors are open to every sober and competent company that wishes to participate in this sector, just as we welcome regional companies because they will expand the base of cooperation in other areas.”
He added: It is important to understand that gas investment means providing additional resources for development in Iraq, which are resources that can be invested in various promising economic rights, and these areas will be open to the participation of Turkish companies and the companies of other friendly countries.
Iraq’s current production of natural gas is about 2.7 billion cubic feet, and according to previous estimates, Iraq has a stock of 132 trillion cubic feet of gas, 700 billion cubic feet of which have been burned, as a result of the weak capacity to exploit it.
Regarding the flow of Iraqi oil, the Iraqi Prime Minister explained that stopping the pumping of Iraqi oil extracted from the fields of the Kurdistan Region of Iraq is undoubtedly a loss for Iraq, and at least it is an expected utility miss that can support development plans in the provinces of the region and strengthen the Iraqi economy in general.
He added: We have taken the initiative to find acceptable settlements, legal solutions and exits after a thorough legal study, but the matter is surrounded by a legal obligation, because the federal budget law requires calculating the cost of producing one barrel of oil in all fields to be within the national average of the cost of production, which is up to $8 a barrel, according to the Federal Ministry of Oil announced.
He continued: But the Ministry of Natural Resources in the Kurdistan Regional Government and within the contracts signed with the oil company operating there, the cost of production is calculated by up to $26 per barrel, and we have proposed that the budget law be amended, or agreements and contracts with these companies be amended.
The Prime Minister of Iraq continued, saying: From this point of view, companies stopped producing, the ban did not come from the federal government, and waiting to find a solution, and the companies refused to amend the contracts, while the regional government agreed.
He explained that for these reasons, more work is required to find a legal way out within the rights of Iraq and its people in its wealth first.
He added: “As for the transport of Basra oil through Turkish ports, it is subject to study and economic feasibility determination above all.”
Currently, Iraq’s oil production is about 4 million barrels per day, according to data from the Ministry of Oil and the Organization of the Petroleum Exporting Countries (OPEC), while about 25 million liters of gas oil, gasoline and white oil are imported daily, in addition to natural gas.
Iraq, according to previous statements to the Sudanese, intends to self-sufficiency in oil derivatives and stop imports, and save $3.2 billion.
