The Cabinet 9th Regular Session, decisions included

INA - BAGHDAD

The Cabinet held the 9th Regular Session on Tuesday, chaired by Prime Minister Muhammed S. Al-Sudani.

During the session, the general situation in the country was discussed, along with various service, economic, and social files. Additionally, topics listed on the agenda were deliberated, and necessary decisions were made regarding them, according to a statement by the PM Media Office, received by the Iraqi News Agency - INA.

The statement included, "In an effort to support our brothers in Palestine and in solidarity with them due to the harsh conditions they face from the war waged by Zionist occupation forces, the Cabinet voted to launch an official public campaign to send food and aid to the Palestinian people, especially flour, as the holy month of Ramadan approaches."

Additionally, the Cabinet approved the Finance Ministry's actions to allocate and fund the costs of supplying diesel oil to the State of Palestine, as organized according to Cabinet Resolution (23640), with the Oil Ministry to specify the amount later.

To improve Iraqi airports conditions and develop and rehabilitate infrastructure and services, approval was given for the Ministry Of Transportation's proposal dated February 27, 2024, regarding maintenance and rehabilitation work, exempt from the contracting methods stipulated in the Government Contract Execution Instructions (2 of 2014).

Based on the Federal Budget Law the Cabinet approved the following:
1. Financial allocations for 2024 and 2025 for the investment and credit accounts of the Iraqi-Chinese agreement projects are adopted.
2. The release of funding for the aforementioned projects will be from the Finance Ministry, with the approval of the Prime Minister, based on a recommendation from the Diwani Order Committee (23995 of 2023), upon request from the implementing entity, and the committee may return any surplus funded amounts to the investment account.

In the energy sector, the Cabinet made several important decisions as follows:

First: Approval of the Energy Ministerial Council's recommendation (24004 of 2024) regarding an exemption for the import of materials for the Fluid Catalytic Cracking (FCC) project at the Basra refinery, as follows:
The exemption allows for the entry of chemical materials and telecommunications equipment for the FCC project at the Basra refinery, managed by the South Refineries Company, from the required import licenses and customs clearance upon arrival at the ports. The import license and required documents will be completed later. This exemption aims to ensure the rapid progress of the project and reduce costs caused by delays due to these procedures.

Second: Approval of the Energy Ministerial Council's recommendation (24009 of 2024) as follows:
Approval of a final settlement between the Ministry of Oil/Basra Oil Company and Petrofac, reducing the amount for the project of building the second Central Processing Facility (CPF2) in the Majnoon Oil Field, concluded on November 6, 2023, to $27,500,000 from $30 million.

Third: Approval of the Energy Ministerial Council's recommendation (24005 of 2024) regarding a memorandum of understanding for utilizing flared gas to produce electricity in Iraq through the national electricity distribution network, as follows:
Approval to authorize the Deputy Minister of Oil for Gas Affairs to sign a memorandum of understanding with the American company (GE) for utilizing flared gas to produce electricity in Iraq. Additionally, directing the Ministry of Electricity to sign a similar memorandum for establishing stations related to flared gas.

Fourth: The Ministerial Economic Council's recommendation (24049 of 2024) to adjust the prices of products from the Qayyarah refinery was approved as follows:
1. The official price for heavy fuel oil is set at 300 dinars per liter, and the commercial price at 350 dinars per liter.
2. The mixed products' official price is 250 dinars per liter, with a commercial price of 300 dinars per liter.
3. The official price for S125 asphalt product is 250,000 dinars per ton, and the commercial price is 300,000 dinars per ton.
4. The official price for 40/50 asphalt product is 300,000 dinars per ton, with a commercial price of 350,000 dinars per ton.
5. All governmental entities and industrial development licensed factories approved by the Ministry of Oil for items 1 to 4 above are included, with a review of prices to be conducted after 6 months from the issuance date of this decision.

Fifth: Recommendations from the meeting regarding Al-Faw Refinery investment project, held on February 17, 2024, were approved as follows:
1. Completion of investment procedures for Al-Faw Refinery project, with Iraq holding a 20% share in the project as agreed between the Ministry of Oil and the investing company, to be included in the contract signed by both parties.
2. The Ministry of Finance will own the mentioned share.
3. The Ministry of Finance authorizes the Ministry of Oil / South Refineries Company to sign as the first party on its behalf.
4. An agreement will be made between the Ministry of Finance and the South Refineries Company to sign a suitable fee contract for managing the Ministry of Finance's share in the project.
5. The Ministry of Finance will take the necessary legal actions to register the entire port project and allocate the necessary land for the refinery project and its future expansions according to maps approved by the international consultancy for Al-Faw Port project.
6. The project will be subject to the provisions of the Refineries Investment Law (No. 64 of 2007) as amended and instructions issued for its implementation.
7. The price of crude oil supplied to meet the project's needs will be in accordance with Article 5 of the law mentioned in item 6.