Kurdistan Oil & Gas Development

[Anthea]

Increases in gas production

The Sharjah-based Dana Gas company said in a statement on Wednesday that natural gas production in their operations in Kurdistan have jumped by 50% since 2018, an important development which could contribute further to cleaner electricity generation in the region

Alongside Crescent Petroleum, the natural gas company Dana Gas, which operates in the Khor Mor and Chemchemal gas fields in Sulaimani province on behalf of Pearl Consortium, produced 452 million cubic feet of gas per day (MMscf/d) by the end of 2021, compared to 305 MMscf/d in 2018. The companies together produced 16,000 barrels of condensate and 1,000 tonnes of liquefied petroleum gas (LPG) per day.

They have been operating in the Kurdistan Region since the Kurdistan Regional Government (KRG) began producing oil and gas independently of Baghdad in 2007, and selling independently in 2013.

“The production milestone is the culmination of numerous process improvements at the Khor Mor gas plant, including a bypass project completed in 2020 as well as a debottlenecking programme earlier in 2018,” the company said in a statement on Wednesday. “Together, the process improvements have grown the production by 50% from 305 MMscf/d in 2018.”

Dana Gas said earlier this month that its share of collections from the sale of Condensate, LPG and gas in the Kurdistan region rose by 80% to $184 million in 2021, compared to $102 million in 2020.

“Despite the challenges the whole world has faced over the past two years, we are proud to have continued delivering uninterrupted supply of clean-burning natural gas to support the KRI economy and enable a healthy recovery,” Majid Jafar, the CEO of Crescent Petroleum and board managing director of Dana Gas, said in the press release. “Meanwhile our major expansion plans at the Khor Mor and Chemchemal fields to target 1 billion cubic feet per day in the coming few years will enable improved services across the region for years to come.”

Jafar's comments come after Kurdistan Region Prime Minister Masrour Barzani said in October that his cabinet has increased gas production over the last two years, and that a key goal on his agenda was to double this in his remaining two years in office.

Speaking at the Middle East Research Institute (MERI) forum in Erbil, the prime minister said he wanted to make use of all the natural resources available in the Kurdistan Region, including natural gas. “My ambition is really to provide gas for the households. My plan is to build petrochemicals so that we can actually be clients and buyers of our own gas and natural resources, and then process it. That would be much more beneficial to the people of Kurdistan and for the excess gas and the natural resources that we have to be able to export it to outside,” he added.

Under the current expansion phase known as KM250, supported by the US, Dana Gas which has a 35% interest in Pearl Petroleum aims to increase natural gas production to 700MMscf/d by April 2023. “The KM250 Gas Expansion Project is supported by a $250 million financing agreement for 7 years with the US International Development Finance Corporation (DFC) which was announced in September 2021,” the company said.

Dana Gas was involved in a financial dispute with KRG for several years, but the issue over accusations that the government had underpaid it for gas production was finally settled in 2017 with the KRG agreeing to pay a final settlement of $2.24 billion to the company.

The company has said that the current phase which was halted for a year due to the COVID-19 pandemic will be followed by a new project, KM500, which aims to increase gas production to 1 billion cubic feet per day, to meet the rising demand for electricity in the Region.

The KRG has struggled with economic complications over recent years and has struggled to pay the oil companies operating in the Kurdistan Region. However, it has managed to provide regular payments to companies in recent months as the economic impact of COVID-19 lessens and oil prices increase.

In August, the KRG’s Minister of Natural Resources Kamal Atroshi issued a decree giving companies working in the petroleum industry in the Kurdistan Region 18 months to put a complete end to gas flaring; a toxic byproduct of crude oil production, and a move that would end the environmentally damaging practice.

https://www.rudaw.net/english/kurdistan/12012022

[Anthea]

Oil flow in Kirkuk-Ceyhan pipeline

ANKARA, Jan 19 (Reuters) - The flow of crude oil through the Kirkuk-Ceyhan pipeline has resumed, after it was halted on Tuesday due to a blast near the pipeline in the southeastern Turkish province of Kahramanmaras, officials said on Wednesday

The explosion, which a senior security source later said was due to a falling power pylon and not an attack, caused the pipeline near Kahramanmaras to catch fire. The incident has added to global supply concerns and helped drive global crude prices to seven-year highs.

Turkey's state pipeline operator Botas said earlier the fire had been extinguished and oil flows would resume within an hour, after "all necessary measures have been taken by Botas teams".

The pipeline carries crude oil from Iraq's Kurdistan region for export from Turkey's port of Ceyhan.

Another source in the Kurdistan region said the blast had no effect on overall monthly export volumes.

"Oil was stored upstream and can be fully released now that pipeline is back online," the person said.

Kurdish crude exports averaged 10 million barrels per month between October and December, Refinitiv Eikon shipping data showed. So far, 5.2 million barrels have been loaded in January.

The cargoes mainly head to refineries in Mediterranean countries such as Croatia, Greece, Italy and Spain, the data shows.

Brent crude futures were up 0.35% to $87.82 a barrel by 0745 GMT, adding to the previous session's jump of 1.2%. The benchmark contract climbed to as much as $89.05, its highest since Oct. 13, 2014.

https://www.reuters.com/business/energy ... 022-01-19/

[Anthea]

Decision against Kurdish oil

The head of the Kurdistan Democratic Party (KDP) said late on Tuesday that the Iraqi federal court's ruling against the Kurdistan Region’s oil and gas industry is "completely political”.

"The decision of the Iraqi Federal Supreme Court regarding the oil and gas of the Kurdistan Region is a completely political decision and contradicts the Iraqi federal constitution, which is aimed at opposing the Kurdistan Region and is against the Iraqi federal system,” Masoud Barzani said in a statement.

Barzani's comments follow the federal court's ruling earlier in the day that the oil and gas law regulating the oil sector in the Kurdistan Region is unconstitutional.

The court reviewed cases brought against the export of oil from the Kurdistan Region to foreign countries without prior approval from the federal government. The Iraqi oil ministry has previously filed cases against the Kurdistan Regional Government (KRG), both in 2012 and in 2019, for exporting oil without approval from the federal government.

The KRG passed its own oil and gas law in 2007, enabling it to administer and develop its own oil and gas resources.

The lack of federal oil and gas legislation has been a strong point of contention between Erbil and Baghdad since the current Iraqi constitution was approved in 2005. According to the constitution, it is the responsibility of both the federal and regional governments to develop oil and gas resources.

Such legislation exists, but is yet to pass parliament. The law has been pending since 2005 and every election, parties promise to vote on it.

The KRG exported a total of nearly 80 million barrels of crude oil in the first half of 2021, collecting a net $1.7 billion, according to audited data published by the KRG in November. The majority of these exports were made to Turkey.

https://www.rudaw.net/english/kurdistan/150220223

[Anthea]

Iraq’s decision on oil/gas

The heads of the Kurdistan Region’s presidency, government, parliament and Judicial Court convened on Monday, discussing the recent decision by Iraq’s top court against the Region’s oil and gas law. They rejected the ruling, claiming it undermines the federal system

Iraq’s Federal Supreme Court on February 15 found the Oil and Gas Law of the Kurdistan Regional Government No. (22) of 2007 to be “unconstitutional,” and therefore struck down the legal basis for the independence of the Kurdistan Region’s oil and gas sector. The decision has been condemned by Kurdistan Region’s ruling parties as well as top officials

The Monday meeting “reiterated that the Iraqi Federal Court ruling is unacceptable, emphasizing that the Kurdistan Region will continue to exercise its constitutional rights, and not relinquishing its lawful rights and powers,” read a statement from the joint meeting, published by the Region’s presidency.

President Nechirvan Barzani, PM Masrour Barzani, and Speaker of Parliament Rewaz Fayaq as well as their deputies and the head of the Judicial Council attended the meeting.

The statement also read that the Kurdistan Region will “exhaust all available legal means in order to safeguard Kurdistan Region’s constitutional powers and rights,” backing it up with six reasons. One of the points claimed that the court’s decision “led to stripping the regions of a constitutional power while granting it to the federal authorities, which is inconsistent with the Federal Court’s power, as it is a retreat from the principles of the federal system.”

“The Kurdistan Region believes that this ruling, not only undermines the constitution and the federal system, it also fails to be impartial, and is driven by special interests, especially at a time when Iraq is moving through a critical political stage; and while the political parties are engaged in talks to reach an understanding and to find a way to break the political deadlock, this ruling clearly exacerbates the conditions even further,” said another.

The ruling by the Iraqi court comes as political parties in Iraq continue the process of forming a new government following the country’s October 10 parliamentary elections.

President Barzani received the US ambassador to Iraq on February 16, discussing pressing issues, especially the ruling by Iraq’s federal court, according to a statement by the Kurdish leader’s office without mentioning if the US diplomat commented on the ruling.

https://www.rudaw.net/english/kurdistan/280220222

[Anthea]

Russia reaffirms interest in Kurdish oil

While Russia's invasion of neighboring Ukraine continues, a top Russian official told Rudaw on Monday that the country has invested up to $14 billion in Iraq and the Kurdistan Region, mainly focusing on the energy sector

Asked about the situation in Ukraine, Russian Ambassador to Iraq Elbrus Kutrashev told Rudaw's Rebaz Ali that it was a "big drama," adding that "Ukraine is a friendly brother state for Russians." Kutrashev also said that ethnic Ukrainians and Russians are one people, with the same origins and an almost identical language.

His country’s investments are "mostly" dedicated to Russia's projects in southern Iraq, and partly in the Kurdistan Region, the ambassador said. He added that "at least $2 billion" of the total $14 billion investment has been allocated to the Kurdistan Region, mostly centered on the oil and gas sector.

Lukoil, Gazprom Neft, and Rosneft are some of the major Russian oil and gas companies operating in Iraq and the Kurdistan Region.

The Kurdistan Regional Government (KRG) signed contracts with giant Russian oil and gas firms in 2014 and 2017 to work in several oilfields across the Region, implementing geological exploration programs and exporting crude oil.

Moscow and the Kurdistan Region enjoy good relations, especially in the energy sector. In December, the Russian presidential envoy to the Middle East met with Kurdish officials in Erbil where both sides advocated for stronger ties.

Kurtashev noted that Iraq's security situation was a core deterrent to foreign investment, mentioning that potential foreign investors would have to allocate 20 to 25 percent of their budgets on providing security, should they choose to invest in the country.

Proportional to the security situation in Iraq, Kutrashev stated that the number of employees of Russian origin in Iraq is "quite big, and they are a good example of our serious will to work in this country and develop bilateral cooperation," adding that thousands of Russians used to live in Iraq during the Soviet Union era.

Enthusiasm was expressed by the ambassador as he discussed potential cooperation with all forms of Iraqi society, including the government, despite skimming over the resurfacing struggles with forming a government through every election cycle.

https://www.rudaw.net/english/world/010320221

[Anthea]

Erbil willing to negotiate oil, gas law

Erbil is willing to conduct negotiations with Baghdad on the issue of oil and gas extraction from the Kurdistan Region, but they are yet to make any progress, an advisor to the Prime Minister of the Kurdistan Regional Government (KRG) told Rudaw on Wednesday

“We are willing to engage in talks with the central government regarding this matter, because we believe it is depriving the people of Kurdistan from their entitled rights,” Bewar Khinsi, Advisor to Prime Minister Masrour Barzani told Rudaw’s Hemin Baban.

The advisor also stressed upon the catastrophic implications that would be inflicted on the Kurdistan Region if they are rendered unable to generate income from the oil and gas industry given that “90 percent of the entire income of Iraq depends on oil.”

The Iraqi Federal Supreme Court ruled against the Kurdistan Region’s oil and gas law in mid-February, claiming that it was “unconstitutional”, hence striking down the independence of the Kurdistan Region’s oil and gas sector and putting its industry in jeopardy.

Khinsi also emphasized that the decision made by the Iraqi top court against the Kurdistan Region’s oil and gas law was a political one.

With regards to the expected timing of the negotiations, Khinsi said that the KRG is currently waiting for a response from the government in Baghdad, while expressing his doubts that they will take place before the formation of a new Iraqi cabinet.

In a press conference on March 3, PM Barzani stated that according to article 111 of the Iraqi constitution, the oil and gas of Iraq is a property of the whole country, which includes the Kurdistan Region, its cities, and its provinces.

Kurdistan’s oil and gas law complies with all the provisions of the constitution, PM Barzani said, reiterating that the “so-called” Iraqi Federal Court’s decision is “against” Iraq’s constitution as “it is a change in the constitutional articles.”

The KRG passed its oil and gas law in 2007, enabling it to administer and develop its own oil and gas resources.

The KRG exported a total of nearly 80 million barrels of crude oil in the first half of 2021, collecting a net $1.7 billion.

https://www.rudaw.net/english/kurdistan/10032022

[Anthea]

Iraqi Court's actions illegal
Wladimir van Wilgenburg

ERBIL (Kurdistan 24) – The Iraqi Federal Supreme Court (FSC) has no authority to issue summonses to international oil companies (IOCs) that operate in the Kurdistan Region, the Kurdistan Regional Government's (KRG) Ministry of Natural Resources (MNR) said in a statement on Monday

"Those IOCs - which include Addax, DNO, Genel, Gulf Keystone, HKN, Shamaran, and WesternZagros - operate in the Kurdistan Region in accordance with the Kurdistan Region's Oil and Gas Law (No. 22 of 2007), which was issued by the Kurdistan Regional Government in accordance with its powers under the Constitution of Iraq," the MNR said.

"These court summonses are the latest in a series of illegal actions taken by the Minister of Oil and his staff under the current caretaker government in Baghdad," it added. "These illegal actions are apparently based upon a ruling by a court in Baghdad that calls itself the 'Federal Supreme Court.'"

The MNR said that these cases came after the "so-called 'Federal Supreme Court' issued a politically motivated decision on 15 February 2022, which purported to declare the 2007 Oil and Gas Law void."

In that February ruling, the FSC had contentiously ruled that the Kurdistan Region's oil and gas deals were "unconstitutional."

"No court in Baghdad has the authority to make such a declaration," the MNR said.

On Feb. 28, just two weeks after the FSC ruling, the Kurdistan Region's four presidents – Prime Minister Masrour Barzani, President Nechirvan Barzani, Parliament Speaker Rewaz Faiq, and Head of the Cassation Court Abdul-Jabbar Aziz Hassan – issued a six-point statement rejecting the FSC ruling.

The meeting said that "the decision of the Federal Supreme Court is unacceptable, and that the Kurdistan Region will continue to exercise its constitutional rights and will not give up in any way its constitutional rights and entitlements, and will take all legal and constitutional measures in order to protect those rights."

Moreover, on June 4, the Kurdistan Region's Judicial Council issued a statement upholding the validity of the 2007 Oil and Gas Law.

The judiciary said the management of oil and gas affairs is not one of the "exclusive authorities" of the federal government per Article 110 of the constitution.

Read More: Kurdistan Region judiciary rules KRG oil, gas dossier 'constitutional'

"The Council noted that Article 92(2) of the Constitution of Iraq requires that the Iraqi Council of Representatives pass a law to establish an Iraqi Federal Supreme Court. No such law has ever been enacted. Iraq, therefore, does not have a constitutionally established Federal Supreme Court," the MNR said.

Moreover, the MNR also said that the court that issued the Feb. 15 ruling purporting to invalidate the 2007 Oil and Gas Law has no constitutional authority to do such a thing.

"On the contrary, the issuance of the 2007 Oil and Gas Law was entirely authorised under the Constitution of Iraq. As such, legally, the Oil and Gas Law remains in full force," the MNR declared.

On June 2, the KRG filed a criminal complaint against the Director-General in the Baghdad Ministry of Oil, accusing him of abusing his power and position by intimidating and harassing the IOCs working in the Kurdistan Region.

Moreover, on June 5, the Erbil Court of Investigation ruled that the lawsuits filed in the Al Karkh commercial court against the IOCs must be brought to the Erbil Court to be examined as evidence in this criminal complaint.

Also, on June 5, the KRG's Minister of Natural Resources filed a civil suit against the Baghdad Minister of Oil.

"In the view of the Kurdistan Regional Government, the Minister is liable under applicable civil law provisions for sending emails and letters with the intention of intimidating the IOCs and interfering with the contractual rights of the IOCs and the Kurdistan Regional Government," the MNR concluded.

https://www.kurdistan24.net/en/story/28 ... -Resources

[Anthea]

Click Image to Enlarge:


Three billion dollars in oil revenue

The Kurdistan Region has pocketed over three billion dollars in the first three months of 2022 from oil revenue, according to the Kurdistan Regional Government’s (KRG) media and information department, reaching a net income of over one billion dollars

The data from the KRG stated that the Region had exported over 34.3 million barrels of oil since the start of the year, at the average price of 85.4 dollars per barrel.

The total revenue for the first three months of 2022 was estimated to be over three billion dollars, while the net income, following the repayment of debts to oil companies, operation costs, and pipeline costs, was placed at over 1.3 billion dollars.

The KRG exported a total of nearly 80 million barrels of crude oil in the first half of 2021, collecting a net $1.7 billion, from a total revenue of 4.1 billion dollars.

Iraq’s oil ministry claimed on Monday that US energy giants Schlumberger, Baker Hughes, and Halliburton had informed them of their decision to stop tendering for projects in the Kurdistan Region, adding that this comes in compliance with the Iraqi top court’s decision to outlaw the Region’s oil and gas law. It is unclear what effect this will have on the Region’s future revenue.

The Iraqi Federal Supreme Court in February found the Kurdistan Region’s oil and gas law to be “unconstitutional,” therefore striking down the legal basis for the independence of the Region’s oil and gas sector. The KRG responded to the decision, saying that the court’s ruling is not only “unconstitutional” but also “unjust.”

According to the KRG’s annual report audited by Deloitte, over 152 million barrels of oil were exported throughout 2021 via the Kurdistan Export Pipeline. Sold at an average $59.459 per barrel, the Region’s oil made a revenue of nine billion dollars, with a net income of 3.965 billion dollars.

https://www.rudaw.net/english/kurdistan/070720221

[Anthea]

Will Kurdistan resume oil export

The United States on Monday urged Ankara and Baghdad to allow the resumption of Kurdistan Region’s exportation of oil through Turkey

The Paris-based International Chamber of Commerce (ICC) arbitration court ruled on Thursday that Turkey had breached a 1973 pipeline agreement between Iraq and Turkey that obliges the Turkish government to abide by instructions issued by Iraq regarding the transport of crude oil exported from Iraq. In 2014, the Kurdistan Regional Government (KRG) began using the pipeline to send its crude to Turkey’s Ceyhan port, to the ire of Baghdad.

Following the decision, Turkey informed Iraq that Ankara would no longer allow KRG crude to be loaded onto ships at Ceyhan port without permission from Baghdad.

Vedant Patel, US State Department Principal Deputy Spokesperson, told Rudaw’s Diyar Kurda during a press briefing late Monday that Washington has “urged the governments of Turkey and Iraq to resume the flow of oil through the Iraq-Turkey pipeline, and disruptions to global energy supply would not serve anyone’s interest.”

“We also understand that the Kurdistan Regional Government is in discussion with the government of Iraq to find a mutual, acceptable path forward on related budget and hydrocarbon issues as was discussed during the February US-Iraq Higher Coordinating Committee in Washington,” he added.

The spokesperson also said that the US continues to urge Erbil and Baghdad to resolve their budget and hydrocarbon issues.

Under the ICC court ruling, the Iraqi government, via the State Oil Marketing Organization (SOMO), is the only party in charge of the management of export operations through Turkey’s Ceyhan port related to Iraqi oil, according to a statement from Iraq’s Ministry of Oil on Saturday.

A delegation visited Baghdad following the ruling but the outcome of the discussions remains unclear.

Reacting to the verdict, the KRG’s Ministry of Natural Resources said it will not affect ongoing talks with the federal government, adding that they have reached a preliminary agreement on budget, oil and gas issues and will continue to pursue the matter until a constitutional solution is reached.

The Kurdish government is heavily reliant on its revenues and an inability to sell its crude will severely impact its already struggling economy. The government has failed for years to pay its over a million civil servants on time and in full.

The production of around 450,000 barrels of oil per day in the Kurdistan Region has been jeopardized as a halt in exports has forced international oil companies (IOCs) operating in the region to store produce rather than allow it to flow to the pipeline – an inadequate measure as storage capacity is limited.

https://www.rudaw.net/english/kurdistan/270320233

[Anthea]

Oil exports halt

The halt of oil exports by the Kurdistan Regional Government (KRG) and the possibility for production to cease present a serious risk to the economy of the Region as the exports are the crucial lifeline of its economy, a London-based oil and energy expert said Monday

The International Chamber of Commerce in Paris decided on Thursday in favor of the Iraqi government against Turkey in regards to KRG’s oil exports through Turkey’s Ceyhan port, placing Iraq’s State Oil Marketing Organization (SOMO) as the only party in charge of the management of export operations through the port, Baghdad announced.

“If the production stops, it is going to be a huge blow to KRG economy and therefore these has to be a solution between Baghdad and Erbil on how these exports can continue,” Mehmet Ogutcu, an oil expert and chairman of London Energy Club, told Rudaw’s Shahyan Tahseen.

The production of around 450,000 barrels of oil per day in the Kurdistan Region has been jeopardized as a halt in exports has forced international oil companies (IOCs) operating in the region to store produce rather than allow it to flow to the pipeline – an inadequate measure as storage capacity is limited.

“It is not going to affect the world oil market significantly, but it will have a huge impact on the KRG economy because this is the only revenue that it relies on unless it gets compensation or a share from Baghdad … this has to be solved very, very quickly,” Ogutcu stressed. “There is a lot of work to be done between Erbil and Baghdad.”

An assistant to Kurdistan Region Prime Minister Masrour Barzani on Sunday said that the halt of independent oil exports by the KRG is temporary and that it is expected to resume once an agreement is struck with Baghdad.

“It is true that oil exports have been halted, but this is a temporary situation because we have good relations with the Iraqi government,” Rebaz Hamlan said.

The arbitration court ruled that Ankara had breached a 1973 pipeline agreement between Iraq and Turkey that obliges the Turkish government to abide by instructions issued by Iraq regarding the transport of crude oil exported from Iraq. In 2014, the KRG began using the pipeline to send its crude to Turkey’s Ceyhan port, to the ire of Baghdad.

According to the arbitration court ruling, Turkey must pay a penalty of $1.4 billion to Iraq.

“The big issue is how KRG oil will continue to flow to Ceyhan [in Turkey] and the international market and how the payment will be made back to Erbil rather than going to Baghdad and then coming from Baghdad to Erbil,” Ogutcu continued, saying a solution to the issue has to be found urgently.

The KRG is heavily reliant on oil revenues and an inability to sell its crude will severely impact its economy. The government has found hardships for years to pay its over a million civil servants on time and in full.

“The failure to find a solution is a disaster for the KRG,” Ogutcu emphasized.

https://www.rudaw.net/english/kurdistan/270320232

[Anthea]

Should Kurdistan’s oil be sold by Iraq

Iraq’s national oil company should sell the Kurdistan Region’s oil and all revenue should be deposited into one common treasury, the head of the Patriotic Union of Kurdistan (PUK) said on Sunday

PUK leader Bafel Talabani said that following the ruling by the Paris arbitration court against the Kurdistan Region’s oil exports, “it is time to make the right decision”.

“SOMO Company should sell the Kurdistan Region’s oil and the total oil revenue across Iraq be deposited into one treasury,” Talabani said in his statement.

Oil firms operating in the Kurdistan Region have stopped production or reduced output and diverted it into storage after a Paris arbitration court late March ruled that Turkey had violated an agreement with Iraq by allowing the Region to begin independent oil exports in 2014.

Representatives from the Kurdistan Regional Government (KRG) have met with the federal government and an agreement on the resumption of oil exports through the Iraq-Turkey pipeline is expected to be announced soon, a source in Iraq’s state-owned oil firm said on Sunday.

The details of the deal have not been made public, but a well-informed source told Rudaw that other meetings will be needed to clarify the KRG’s contracts with international oil companies (IOCs) as well as finding new buyers for the oil at the Turkish port. The agreement is expected to provide stability for the IOCs and buyers.

The SOMO source added that “many” issues were agreed upon by Erbil and Baghdad in the latest agreement.

Rudaw understands that the agreement consists of joint oil exports by the KRG’s Ministry of Natural Resources and SOMO. The revenue from the exports will be stored in an account managed by the KRG under the observation of the federal government in Iraq, the source added.

Talabani added in his statement that Baghdad and Erbil should agree to decide the Kurdistan Region’s share of the federal budget in the budget law, the Region’s employee salaries and stipends be guaranteed, and the system of fuel, kerosene, and gas of the Kurdistan Region be linked to Iraq.

The KRG started exporting oil independent of Baghdad in 2014. Following the war against Islamic State (ISIS) in 2014 and disputes with Baghdad over the KRG’s oil sales, with a shortage of cash, the government took temporary austerity measures to reduce the salaries of higher-earning employees in June 2020. Those earning more than 300,000 Iraqi dinars per month were hit with a 21 percent pay cut.

The Region has experienced several waves of protests over the years due to delayed salaries and austerity measures, which are directly blamed on the KRG and its independent oil sales as many of the Region’s contracts with international oil companies signed in the early stages were signed with prepayment schemes, and the Kurdistan Region owes a large amount of money to those companies. This has made the region unable to pocket over 50 percent of its oil revenues at any point throughout the past eight years.

https://www.rudaw.net/english/business/020420231

[Anthea]

Foreign oil contracts in Kurdistan

This comes after Baghdad and Erbil earlier reached a deal to restore oil exports to Turkey through the Iraqi-Turkey line after halting it for almost a wee

The oil agreement that was concluded on Tuesday between Baghdad and Erbil will not affect the contracts of foreign companies operating in the Iraqi Kurdistan region, Sputnik said, citing a member of the Kurdistan Democratic Party (KDP) bloc in the Iraqi parliament.

Responding to a question about whether foreign oil companies in Kurdistan will receive guarantees from the agreement, Amanji Harki said responded, "Yes, for sure. The only thing that will change is that the sale will be through the SOMO company, and nothing else will change with regard to contracts, the way companies treat you, welcome you, etc."

Harki also indicated that the two oil and gas budget laws will be adopted within 2-3 months.

“The first step will be a permanent agreement on the budget law, which makes the agreement reached yesterday effective, and after the budget law is approved, the oil and gas law will be developed and put to a vote in parliament, so we are talking about a time frame of 2-3 months," he said.

On Tuesday, the Iraqi government and Erbil signed an agreement stipulating that Baghdad assumes full supervision over the export of oil from the Iraqi Kurdistan region's fields, which allows the resumption of oil exports again through the Turkish port of Ceyhan; the Iraqi-Turkish pipeline.

Oil from the Iraqi Kurdistan Region will be sold and exported through Iraqi state-owned firm SOMO, and sales returns will be deposited in Baghdad's central bank under Erbil's control, while the Iraqi government will have access to the account and auditing authority.

Last week, exports of nearly 450,000 barrels per day to Turkey have been stopped due to a ruling by a Paris Court of Arbitration that Ankara violated a bilateral treaty with Baghdad by allowing Iraqi Kurdistan to launch independent oil exports in 2014.

Reuters reported earlier that Baghdad and Erbil finalized an agreement on Tuesday to restore oil flow into the Iraq-Turkey pipeline. Prime Minister of Iraq's Kurdistan Region Masrour Barzani then went to Baghdad and formalized the deal with Iraqi Prime Minister Mohammad Al-Sudani.

"Everyone must abide by this agreement and implement it," Al-Sudani said in a joint press conference with Barzani, adding that the agreement was temporary until the budget bill is approved by the parliament.

The bill "will cover all obligations and solve all problems," the Iraqi PM concluded.

https://english.almayadeen.net/news/eco ... ted-by-bag

[Anthea]

Erbil-Baghdad oil deal

The United States said on Thursday that it welcomes a recent agreement between Erbil and Baghdad regarding Kurdistan Region’s oil exports to the global markets through Turkey

“We welcome the agreement between the central government and the Kurdistan Regional Government on the export of oil through the Iraq-Turkey pipeline. This outcome is the result of the hard work of Iraqi leaders for putting the needs of Iraqi citizens first,” US Department of State Principal Deputy Spokesperson Vedant Patel told reporters during a press briefing.

Kurdistan Region Prime Minister Masrour Barzani and Iraqi Prime Minister Mohammed Shia’ al-Sudani on Tuesday signed an agreement to resume the Region’s oil exports to Turkey more than ten days after it was halted following a ruling by a Paris-based arbitration court.

The International Chamber of Commerce (ICC) ruled on March 23 that Turkey had breached a 1973 pipeline agreement that obliges the Turkish government to abide by instructions issued by Iraq regarding the transport of crude oil exported from Iraq. Turkey informed Iraqi authorities that it would not allow the KRG’s oil to be loaded onto ships at Ceyhan port without permission from Baghdad.

Oil firms in the Kurdistan Region halted production or reduced output after the ruling, with some storing oil.

The KRG exported some 400,000 barrels of crude per day to global markets through Turkey before the court ruling. The Iraqi government also exported about 75,000 barrels of Kirkuk oil per day through the same pipeline.

https://www.rudaw.net/english/kurdistan/060420232

[Anthea]

Resuming oil exports

ERBIL (Kurdistan 24) – Kurdistan Region oil exports will resume to the Turkish port of Ceyhan, according to a new deal struck between Erbil and Baghdad on Tuesday

The deal was announced in a joint press conference by the Kurdistan Region Prime Minister Masrour Barzani and Iraqi Premier, Mohammad Shia’ Al-Sudani, in Baghdad.

“This is an important deal for the people of the Kurdistan Region and Iraq,” PM Barzani said. He extended his congratulations to the people of Kurdistan and the whole country.

The agreement should serve as a “basis” for future understandings and cooperation between the two governments, the Kurdish premier said.

“We have sought to reach a deal with Baghdad without conceding our constitutional rights,” he added and extended his appreciation to Kurdistan Democratic Party (KDP) President Masoud Barzani, Kurdistan Region President Nechirvan Barzani, and the KRG delegation for all their efforts leading to the final agreement.

The Kurdish premier also thanked Al-Sudani for his cooperation.

The deal is “temporary” until a hydrocarbon bill is passed in the Iraqi parliament, PM Barzani said, adding he was “certain” it would be implemented this time.

The agreement, in accordance with the Iraqi constitution, will go into effect immediately, PM Al-Sudani said.

"We have secured a deal that respects our rights under the constitution and puts the country on a stronger footing," Barzani wrote in a tweet following the meeting.

"I commend my friend @mohamedshia for his leadership and commitment to a new collaborative era between Erbil and Baghdad," he added.

It has been ten days since the Kurdistan Region’s oil exports were stopped by Ankara, following a ruling by the Paris-based International Court of Arbitration in favor of Bagdad.

https://www.kurdistan24.net/en/story/31 ... ts-reached

[Anthea]

Kurdish oil exports resolved

ERBIL (Kurdistan 24) – Technical issues that had hampered the resumption of the Kurdistan Region’s oil exports since late March have now been resolved, paving the way for restarting the process in the coming days, an Iraqi member of parliament told Kurdistan 24

Erbil and Baghdad had negotiated the technical issues related to marketing, pricing, and the destination of the crude oil, following a temporary agreement they struck on April 4 to resume the Kurdistan Region oil exports.

Those issues have been “resolved” and the Iraqi Ministry of Oil will officially request Turkey to resume the Kurdish oil exports in the coming days, Nahro Rawanduzi, the deputy chair of the House of Representatives oil and gas committee, told Kurdistan 24 on Monday.

Ankara halted the 450,000 barrels per day of Kurdish export on March 25 at the request of Baghdad after the Paris-based International Court of Arbitration of the ICC – the International Court of Chamber – ruled that Turkey had violated an aspect of the 1973 pipeline agreement, awarding Iraq $1.5bn for the damages it had endured as the result of the breach.

The Erbil-Baghdad deal has been widely welcomed internationally and domestically, hailing the agreement as a pathway to overcoming the decade-old energy disputes.

Although the agreement is temporary, Kurdistan Region Prime Minister Masrour Barzani hoped its guiding principles will be reflected in the budget and hydrocarbon laws in the future.

The halt of Kurdish oil export, constituting 0.5 of the global supply, raised the prices of the commodity by nearly 5%. The halt also coincided with the 1.16 million bpd output cut by Iraq and other OPEC+ members.

https://www.kurdistan24.net/en/story/31 ... s-Iraqi-MP