Iraq’s parliament approved on Wednesday legal amendments provide for a discount price of crude oil sold to refiners increased by five percent in a bid to attract foreign investors to build new refineries.
At present, Iraq sells crude oil to refiners at a discount of one percent of the world price.
At present, Iraq sells crude oil to refiners at a discount of one percent of the world price.
Iraq acknowledged the new charge for a period of 50 years and will be a minimum of four dollars a barrel and a maximum of eight dollars.
Iraq and lacks the necessary investments in refining capacity for the production of fuels such as diesel and gasoline. Iraq has been forced since the US-led invasion in 2003 to purchase imported fuels to fill the widening gap between supply and demand.
Parliament also amended the 2007 law which regulates the work of the refiners to allow them to lease land to the refinery for 50 years with right of renewal.
Adnan al-Janabi, head of the oil and gas in the parliament that these amendments are important and will encourage foreign investors to start building and operating Msaverm own in Iraq.
The amendments will also help to remove red tape and obstacles that stand in the way of investors.
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