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Https://www.rudaw.net/english/middleeast/iraq/141220232

Think you're getting BOPD (average sales per day) and total monthly sales mixed up? Still, even on the current average sales monthly costs are covered with a small profit, and Baghdad are loosing big bucks.

About time the Kurdistan side realised that taking the IOC's along with them will strengthen their negotiating position, if I were them I would be making alternative route to market plans to scare the bejeebers out of Baghdad.

Hilarious, one post and straight in there. tell us another one about the Christmas Elf. (Filtered of course).

From IR.

Press release will be issued as soon as AIX Registrar processes all the votes. Likely Monday morning, before Astana close.

Second, what does it mean for the Iraqi Oil Ministry to sign an agreement with Crescent Petroleum to invest in three oil and gas fields in Diyala and Basra provinces and start implementing it from November 15, 2023? Because this company operates in the Kurdistan Region and has contracts, which before the decisions of the Federal Court and the Paris Court of Arbitration were warned not to work with the Kurdistan Regional Government. Or is the gas and oil agreement different? Because Crescent Petroleum has come to the Kurdistan Region in the same light of the Kurdistan Regional Government's oil and gas law and the PSC production sharing contract, it continues to expand its operations and increase gas production and even export it to areas under Baghdad.

height

If the signing and publication of the new agreements of the fifth round and the sixth round does not attract the attention of international oil and gas companies to invest in Iraq, then what other changes should be made to come to international companies to invest in Iraq.

The daily losses of the suspension of oil exports for the past nine months reaches about $ 9 billion for all parties, but several questions arise why the Iraqi government is not ready to receive half of the $ 80, even if the oil exports According to the 2023 Iraqi budget, the Iraqi government should have received $28 million a day.

The second question is why the oil companies are willing to sell oil at $33-39 a barrel but are not willing to sell it at a price close to Brent, which is $80 these days Or what is the truth?

The third question is why Turkey initially did not allow the export of oil on the pretext of repairing the damage caused by the earthquake in North Kurdistan. Now it says that they have officially notified the Iraqi government. That Turkey should have paid compensation as stated in the Paris court decision? Or the game is such that every time a party and a problem arises to continue to stop the export of oil from the Kurdistan Region.

Finally, the content of the Iraqi contracts has changed, so Crescent Petroleum and Total Energy are investing. We can say that the changes are similar to the contracts in the Kurdistan Region, but with different names and lower rates In content, the production sharing contracts are PSC and similar to those in the Kurdistan Region, but they are different in title.

Another aspect of these contracts depends on the time to sign and implement them, because before the agreement between Erbil and Baghdad on the issue of energy and the settlement of the Iraqi oil and gas law, it will certainly affect the negotiations, and vice versa.

: Fifth Plus and Sixth Round Gas and Oil Contracts by Provinces and Types.

Fifth Plus and Sixth Round Gas and Oil Contracts by Province and Type.

Source: Mess Magazine, No. 40, October 6, 2023 and proposed contracts for the fifth, five plus and sixth rounds.

The fate of the Kurdistan Region's oil contracts between Baghdad's demands and the companies

On November 5, Kurdistan Oil Industry Companies (Epicor) reiterated their demand to protect their contractual rights, which they have repeated officially and unofficially. This development comes at a time when a delegation from the Iraqi Oil Ministry visited Erbil recently "We are close to an agreement and we emphasize the export of oil from the Kurdistan Region from the port of Jayhan, but some things need to be changed, especially the contracts, and that will be resolved during this period," he said.

In fact, the problems have not been resolved for more than eight months and 10 days. All companies have started selling oil domestically at half the price of oil traded in the world markets Most of all, it has conveyed to the Kurdistan Regional Government and the people.

Constitutionally, the Iraqi constitution deals with two articles on oil and gas, namely Article 111 and Article 112, which do not mention how to manage and formulate the country's oil and natural resources policy, but it is left to the enactment of oil and gas laws Two decades later, it is still unclear when it will be released. It is likely to be issued when a party's supremacy and objectives in the law are fully achieved.

Now, all eyes are on the decision of the Iraqi government and the oil ministry on how to amend the oil agreements between companies and the Kurdistan Regional Government, while according to the April 2023 agreement between Erbil and Baghdad, this issue should fall after oil exports.

The Kurdistan Region signed oil and gas contracts in the light of the August 6, 2007 Oil and Gas Law, which the Federal Court declared unconstitutional on February

First, are the agreements legal and amended or illegal and renewed? If they are legal and amended, what will happen to the Federal Court's decision that declared them unconstitutional and illegal?

30 oil and gas fields in new contracts in Iraq

Iraq worked with local companies and service contracts for nearly 15 years, but could not not only increase oil production and not waste accompanying gas, but now most of the wells need development work known as Enhance Oil Recovery. After nearly 18 years, attempts by major oil companies to invest in the sector in the fifth round of contracts were implemented in some ways, such as contracts with Crescent Petroleum and Total, but this failed to bring investment to new fields. Therefore, the form of the contracts has been amended to be more investment-attractive and take the form of a PSC production sharing contract.

Now, it has completely revised the 2018 oil and gas contract model and wants to attract international oil and gas companies to invest in 11 gas fields, three oil fields in the sixth round and 11 oil fields and five oil and gas fields in the five-plus round.

The amendments to the provisions of the two new oil production methods, the EDPC or the DPC, include the fields explored and 2D seismic data prepared, even test wells. For example, of the 30 new oil and gas blocks and fields that are ready to be given to investors, only seven need to be explored, while when the Kurdistan Region signed oil and gas contracts in 2004-2012, there was no 2D seismic and tested wells Regions and the possibility of oil contracts were signed, so now 48% of the revenue goes to the Kurdistan Regional Government and 52% for investment and operational expenses and profits from the capital invested.

What is now seen in the oil and gas sector is that the Sudanese cabinet has facilitated the signing of contracts, surpassing the stage of the previous two cabinets. Especially the energy contracts that have been signed, whether it is the signing of Total, Crescent Petroleum or the approval of the departure of Exxon Mobil and the expansion of Chinese and Russian companies Meetings and traffic, one official project has just been launched.

Also, if we look at the data in Table 1, it is clear that the gas fields prepared for the sixth round are located in central and northern Iraqi provinces, some of which are disputed areas under Article 140 of the constitution and the Kurdistan Regional Government "Most of the contracts signed are in areas that are not disputed," he said

Https://www.rudaw.net/sorani/opinion/071220232

oil and gas contracts in Iraq and the fate of the Kurdistan Regional Government contract

23 minutes ago

Mahmoud Baban

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Preliminary

The Iraqi Oil Ministry is scheduled to announce the winners of the five-plus and sixth rounds of oil and gas contracts for 30 fields in February The French have reached a historic agreement, and the Gulf countries, especially Saudi Aramco, are calling for changes to the contracts.

In fact, the five-plus round refers to the oil and gas fields that failed to attract companies to invest in the Iraqi oil and gas industry in 2018, but what has changed this time is the content of EDPC's "exploration, development and production contracts What is the DPC that is expected to attract investors for 30 gas and oil fields in Iraq?

The launch of DPC Total Energy's development and production contract in the Ratawi field to produce 60,000 barrels of oil per day has attracted the attention of investors, especially after reducing the "minimum labor commitment and minimum labor costs by the investor company. Also, the royalty reduction in EDPC contracts, which was previously set at 25%, is expected to be significantly reduced in this round. This is despite the change in the production sharing contracts, which increased commercial production as a percentage of oil production levels, instead of the 10,000 barrels set in the previous contracts. Finally, after deducting investment, operating and royalty expenses, companies can receive different percentages of profits from the sale of oil or gas.

These lines take us back to the title and the nature of the KRG's contracts with international oil and gas companies, but if there is a difference in the rates, it depends on investment risk, availability of data and information than the Kurdistan Region has done in the early two decades.

Habshan: ADVFN again, food for though?

"Might be reading to much into this but it's interesting nontheless.

In February last year the Federal Supreme Court issued a clearly politically motivated ruling declaring the PSC's illegal and threatening to pursue the traders that bought Kurdish oil through the courts and blacklist them etc etc.

That ruling was issued under the tenure of the caretaker government of Mustafa al-Kadhimi and his now thoroughly discredited oil minister Ihsan Abdul-Jabbar Ismail.

Then yesterday we had this - "Court Rejects Challenge to Iraq-KRG Oil Deals. After several hearings, the Court rejected Awadi's complaint, removing legal obstacles to the Oil Ministry's transactions with companies investing in the Kurdistan Region."

Today we have this from Shafaq News - "FSC invalidates instructions issued during former PM al-Kadhimi's government period. The Supreme Federal Court, on Wednesday, declared the invalidity of instructions issued during the daily caretaker period by the previous government led by Mustafa al-Kadhimi."

Is this the FSC and ICG backpedalling and trying to extracate themselves from the corner they painted themselves into."

From Habshan ADVFN https://www.apikur.uk/publications/apikur-prepared-to-meet-implement-solutions-to-resume-exports/

December 5, 2023

Key Points:

Seeking prompt resumption of oil exports, APIKUR calls for mutually agreeable solutions that uphold that uphold its member companies’ rights.

APIKUR companies remain ready to meet with stakeholders and implement solutions.

APIKUR is aware of reports of recent meetings between officials from the Government of Iraq (GoI) and the Kurdistan Regional Government (KRG) and representatives of International Oil Companies (IOCs). However, APIKUR member companies—which represent the majority of the oil produced by IOCs in Kurdistan—have neither been included in these meetings nor been invited to participate in any future meetings between the KRG and GoI.

APIKUR member companies remain confident that their existing contracts are legally binding and enforceable; however, we believe concrete solutions can be implemented immediately that will satisfy all parties, protect the contractual rights of the IOCs and enable the resumption of oil exports from the Kurdistan Region of Iraq.

APIKUR remains ready to engage with all parties to progress these solutions for the benefit of all Iraqis.

“Sanctity of contracts and clearly defined methods of past and future payments are essential for the resumption of full oil production and export by APIKUR member companies,” said Myles B. Caggins III, APIKUR spokesman. “APIKUR members are ready to meet with GoI and KRG officials; continued delays only harm the economic livelihood of all Iraqis.”

@KurdistanWatch

Court Rejects Challenge to Iraq-KRG Oil Deals: The Federal Court rejected a complaint against an agreement between the Iraqi oil ministry and UAE's Naft Hilal and Dana Gas. MP Oday Awadi called for cancelling the contract with companies also working with the KRG, calling it illegal. He also stated buying gas from the companies violates the Oil Ministry's laws. After several hearings, the Court rejected Awadi's complaint, removing legal obstacles to the Oil Ministry's transactions with companies investing in the Kurdistan Region

The main sticking point is Baghdad going on and on like a demented Dalek about the contracts having to comply with Iraq state law, and the IOC's saying "Stuffu". It looks like all parties have agreed to fight about the fines etc separate from the pipeline being sorted. Would be nice to get a resolution before Christmas but I'm thinking January before some kind of face saving deal is found, APIKUR have offered to sell direct to SOMO, but Baghdad have forced themselves into a corner with some superbly inept manoeuvring.

So maybe room for manoeuvre, but it's whether they will do that for a Kurd based company.

From ADVFN:

In July TOTAL signed a $27 billion deal with the ICG after sticking to their guns and forcing the ICG to back down:-

OILPRICE.com 20th July 23.

"Ultimately, Iraq had to go back to the drawing board several times to reach into its own pockets and dish out even more favorable terms. Iraq eventually settled on hanging onto just 30% of the project, with TotalEnergies grabbing 45% (and QatarEnergy getting a 25% stake).

The revenue-sharing scheme will see 25% of the revenue from each barrel going to Iraq as a royalty, and 75% back to stakeholders.

Chinese, Indians, Russians, French to some extent, all investing in Iraq, where there was a oil and profit there will always be companies looking to invest, it's more a question of how much, and Iraq noods a lot of investment!!!

Https://nasdaq.com/articles/iraq-to-discuss-kurdistan-oil-contract-modification-in-december How do we feel about this? 🤔

I can see the contract now "Clause 37b, overall trousering costs", be a thing of beauty 🥰 I'm anticipating some sparring still, but getting to sit at the same table is a big move.

Seems to be "Chang to our contracts or else", yet again, see who has the biggest gahoolies.

At last they are going to talk to the IOC's. First round maybe but about time.

https://www.nasdaq.com/articles/iraq-to-discuss-kurdistan-oil-contract-modification-in-december