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Posted 1 hour ago
https://www.reuters.com/business/energy/iraq-set-reopen-own-pipeline-kurdish-talks-stall-2024-04-08/
Clarification by the Central Bank of Iraq - so I assume its a planed moved rather than a threat as posted on Kurdistan 24?:
https://shafaq.com/en/Economy/The-legal-basis-for-depositing-oil-revenues-in-the-US-Federal-Reserve-CBI-clarified
Shafaq News/ The Central Bank of Iraq (CBI) clarified on Monday the legal rationale behind depositing oil revenues in the US Federal Reserve.
Documents released by the bank and seen by Shafaq News agency state that "the legal basis for depositing oil revenues in the Federal Reserve Bank in New York under the IRAQ2 account instead of the Development Fund for Iraq (DFI) is linked to the expiration of Executive Order 13303 issued by the US President in March 2003. This order granted immunity to Iraqi funds deposited in the DFI account at that time. Furthermore, the protection of Iraqi funds provided by UN Security Council Resolution 1483 of 2003 ended with the issuance of UN Resolution 1956 at the close of 2010."
The documents elaborate, "Hence, the IRAQ2 account was established to receive proceeds from Iraqi crude oil exports, subsequently transferred to the Central Bank of Iraq's account at the Federal Reserve Bank within 24 hours to safeguard them from creditors' claims. These funds are categorized as belonging to the Iraqi government, derived from crude oil exports. This arrangement was formalized through a Memorandum of Understanding signed between the Iraqi Ministry of Finance and the Central Bank of Iraq on 2/6/2014, which serves as the legal framework for the IRAQ2 account as an alternative to the Development Fund for Iraq account."
The documents clarify, "Immunity granted by these documents is applicable solely to sovereign funds and does not extend to funds utilized for commercial purposes."
Addressing the third paragraph, the documents detail that "foreign reserves may be deposited with various external entities, central banks, and financial institutions, not limited to the Federal Reserve Bank. Interest rates vary based on investment category, duration, and the institution. Additionally, Orient, the contracted shipping company, transports dollar shipments from the Federal Reserve Bank to Baghdad International Airport, with insurance at $414,000 per shipment and transportation fees of $216,310 provided by the Legislative Affairs Department, Parliamentary Oversight Division."
Furthermore, they state, "Domestic transfer of oil sales revenues is impractical due to operational constraints, risking Iraq's financial operations if funds remain within the country. Closing the Federal Reserve Bank account could expose Iraq to international claims and hinder settlements in US dollars without an account at the Federal Reserve Bank or another American commercial bank."
Afternoon all.
Just seen the following publication.
https://english.aawsat.com/business/4904686-iraq-build-new-offshore-oil-export-pipeline-south
Capacity of 2 million barrels per day to make 5 million barrels per day from Basra by 2025.
Your thoughts are appreciated.
7.52 min video in link which gives additional information in the interview.
https://www.kurdistan24.net/en/story/34246-Iraqi-government-makes-false-statements-about-oil-export-resumption
GLA
Https://www.kurdistan24.net/en/story/34246-Iraqi-government-makes-false-statements-about-oil-export-resumption,-says-APIKUR-spox
ERBIL (Kurdistan24) – Myles B. Caggins III, the spokesperson for the Association of Petroleum Industry of Kurdistan (APIKUR), on Sunday told Kurdistan24 that “the central government of Iraq is playing games and they are making false statements in the media about the status of the resumption of exports of oil.”
“Last week in Washington, D.C. I met with Prime Minister Masrour Barzani and he announced that there have been 11 billion US dollars lost since the pipeline has been closed,” the spokesperson said.
He also revealed that the oil companies from APIKUR are ready to resume “full production and exports.”
"Iran is now exporting two million barrels of oil per day... The Kurdistan region was exporting 450,000 barrels per day through the Iraq-Turkey pipeline. That oil would go on global markets. Now Iran is filling that space with 2 million barrels per day and Iran oil is sanctioned and they're selling oil to China and North Korea and we need to have unsanctioned good oil from Kurdistan region going into the world markets,” he added while stressing, “Iraq and the central government should also want to have strong energy production in Kurdistan region because all of Iraq benefits when Kurdistan region is strong.”
Meanwhile, the APIKUR spokesperson underlined that if Iraqi Mohammed Shia' Al Sudani visits Washington, D.C. he needs to have “a deal with Erbil for two things one there needs to be a budget deal… the second thing is there needs to be an agreement between Baghdad or Erbil and international oil companies for the full production and export of oil.”