تقييم السياسات الاستثمارية في قطاع النفط والغاز العراق حالة دراسية

Rp-Evaluation of investment policies in the oil and gas sector - Iraq, a case study .pdf

The research concluded that the oil policy in Iraq has undergone major changes, as the beginning of the exploitation of wealth in Iraq dates back to the twenties of the last century through the concession contracts of oil companies, as the limited production and benefits were the main factor that made the oil sector stagnant until Law No. 80 of 1961, which excluded most of the unexploited lands under the concession of oil companies and constituted about 95% of the area of Iraq, but the issuance of the law to nationalize the Iraq Petroleum Company in the early seventies after its positive transition to exploit the oil wealth by the National Oil Company or the situation did not go well that Iraq’s entry into futile wars and the sanctions and economic damages that followed, then the occupation of the country in 2003 limited all the material and human capabilities of the oil sector, which led to a major decline. After changing the defunct regime and implementing the democratic system in Iraq, the focus and interest returned to setting an oil policy that achieves the greatest benefits and advantages for the country from this wealth. Therefore, investment was made through licensing rounds, and despite the negatives that accompanied it, it is the appropriate investment pattern currently in Iraq, and in order to orientate an oil policy, it requires expansion. Exploiting the current oil fields, not to mention that they are successful in Iraq in leading future explorations and adopting a dynamic oil policy.
In terms of relying on foreign companies and developing the Iraqi National Oil Company, it is also necessary to pay attention to the gas wealth and not waste it, because it represents a great loss for the country. Accordingly, the gas industry must be developed in addition to developing the petrochemical refining industry and reducing the import of petroleum derivatives. Among the priorities of the oil policy are expanding export outlets with neighboring countries and following a successful marketing policy to deal with various countries of the world in a way that achieves the greatest economic benefits from the oil wealth in Iraq.
The factors affecting attracting foreign and local investments to any economy have multiplied, and this depends on the integration of a group of interconnected factors, as some of these factors are economic or marketing, while others are related to the investment environment, the availability of qualified workers, and the ability to use advanced technology, in addition to the legal and legislative climate and factors related to providing a security climate for investments. This is not achieved except through a competitive environment that provides incentives and facilities in a way that exceeds those provided in other countries.
Iraqi oil, by virtue of its huge reserves, future production and expected volume of exports to the world, will play an important role in Iraq’s foreseeable future and on the global oil scene. The establishment of these huge investment projects is what will qualify it to lead the oil exporting countries over the next two decades. This can only be achieved with the effective participation of international oil companies, pumping the required capital, expertise and technology into balanced agreements that do not increase the burden on Iraq. Rather, companies must aim to achieve a balanced policy between profits and the construction process to complete horizontal and vertical projects at the same time for the oil industry. The study also showed that the Iraqi economy suffers from a set of structural imbalances such as the imbalance of the production structure, the occupation of the financial resources structure and the structure of foreign trade, etc., in addition to poverty, unemployment, inflation, the spread of corruption, the collapse of infrastructure and others. It depends primarily on oil.