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Like we have any choice in the matter........
Sorry Foodies went bananas at the Postie, the other 'analysis' stuff is really interesting and much better than the other frenzied ramps or doom and gloom.
Belgrano, very clear and concise 'State of play' outline there, much appreciated.
All these questions are already out there and being discussed, that's one of the reasons why they have had multiple meetings without an outcome, even though they are all now uncomfortable enough to want a solution, the possibilities will be put forward, it's more a case of if the IOC's will accept amended terms or stick it out for full compliance to contracts.
Last one before supper, it's all about whe pays the back money and if APIKUR agrees to the change (They're in record say they're happy to deliver straight to SOMO). I get the impression it's agreed to get the oil flowing and sort the outstanding fines etc later.
https://www.iraqinews.com/iraq/baghdad-hopes-to-reach-agreement-with-iraqi-kurdistan-to-resume-oil-exports/
Baghdad (IraqiNews.com) – The Iraqi Minister of Oil, Hayan Abdul-Ghani, said on Tuesday that he is optimistic about a possible agreement with the Kurdistan Regional Government (KRG) to resume oil exports in the coming days.
Abdul-Ghani mentioned in a statement that oil production sharing contracts concluded with the KRG are unacceptable. He added that he proposed to the KRG and foreign oil companies operating in Iraqi Kurdistan to change the current contracts to profit-sharing contracts.
Crude oil may start flowing from northern Iraq to Turkey again this week after Baghdad said it had reached an understanding with Ankara after oil exports stopped for more than seven months.
Turkey said last month that the pipeline was ready to start operations, but Iraq confirmed that it had not received any official notification about the pipeline.
A senior energy advisor told Reuters that Baghdad was waiting for the outstanding financial and technical issues to be resolved before resuming oil exports.
Turkey stopped oil flows of 450,000 barrels per day through the oil pipeline in northern Iraq leading to the Turkish port of Ceyhan on March 25, two days after a ruling issued by the International Chamber of Commerce (ICC).
The ICC ordered Ankara to pay compensation of $1.5 billion to Baghdad for the unauthorized oil exports by the KRG.
What about profit-sharing contracts?
In a profit-sharing contract, because the government itself owns all oil production, there is no such thing as property. In previous federal contracts, companies received up to 50% of production for expenditure, and if we calculate the same or 40% as the region, the amount they receive is higher than in the partnership contract They receive it from the production in the region, and then the oil left over after deducting the expenditure becomes a profit and must be distributed between the government and the companies.
According to available information, the government does not share in the profits of companies such as the region. Instead, however, companies pay taxes to the government on their profits, which can replace the state-owned company's share, so even if the profit rate is lower than in production joint ventures in the region, it will be the same.
Therefore, we conclude that this is only used as a legitimate trick, otherwise there is no difference between the two types of contracts. Just as in marriage, the relationship becomes halal in a few words, so the contracts are legitimized by changing the names of the contracts from sharing in production to sharing in profit
Been doing a lot of digging and posting today, will ease up tomorrow! Don't know who Yadgar Sadiq Galali is, seems to be a commentator for them.
https://www.roonbeen.org/2023/11/14/%d8%ac%db%8c%d8%a7%d9%88%d8%a7%d8%b2%db%8c-%d9%86%db%8e%d9%88%d8%a7%d9%86-%da%af%d8%b1%db%8e%d8%a8%db%95%d8%b3%d8%aa%db%8c-%d9%87%d8%a7%d9%88%d8%a8%db%95%d8%b4%db%8c-%d9%84%db%95-%d8%a8%db%95%d8%b1/?fbclid=IwAR37YnJz5hrI8U9H5JQfxkQX-vE3Jx3yqEHk0jnBRlQB13ZghCZzBpj2g6E
"sharing contract and a profit-sharing contract is only name, not content"
We have a project to bring the contracts of the Kurdistan Region into line with the law as allowed by the Iraqi constitution... The Oil Ministry has signed contracts with a number of companies on the basis of profit sharing, not production sharing,” he said.
This statement that we will not get the contracts is the same thing that we have heard since the enactment of the oil and gas law in 2007, because the oil contracts were made on the basis of that law.
Last year, the law was ruled unconstitutional by the Federal Court.
Now, after two days of discussions, they have come to the conclusion that the problem can only be solved by changing the name and keeping the content.
Instead of sharing production, they are sharing profits, which does not change the content of the contracts and the oil companies agree to it.
how are you
In production sharing contracts, the government receives 10% of the total production for the property, then the remaining 40% to 45% (varies from contract to contract) goes to the companies' expenses A mathematical equation (R =
accumulated revenue X / accumulated cost Y) that this profit is between 70 to 85% for the region and 30 to 15% for the companies (explained in detail in several other articles). 20 to 25% of the profits go to Kipco (KRG).
That is, the government receives 10% of production + 70% of all profits + 20 to 25% of corporate profits
Solarflare, you beat me to it, it's down to the carving up of the biscuit shares stage now.
Rudraw 5 hours ago.
The Prime Minister reaffirmed the Kurdistan Region's readiness to resume oil exports within the framework of a common understanding to meet the financial and technical requirements of the export process, within the framework of constitutional principles and contracts, and respect for authority and the constitutional rights of all parties and finding appropriate solutions to ensure the reasonable cost of production and transportation of oil in the Kurdistan Region, which is allocated in the federal budget.”
On Sunday, November 12, 2023, Miles Caggins, spokesman for the Kurdistan Oil Industry Association (Epicur), told Rudaw that the Iraqi oil minister will visit Erbil and meet with Kurdistan Regional Government officials to resolve the oil issue. "We are seeing important meetings between the Iraqi oil minister and Kurdistan
The Kurdistan Regional Government (KRG) has suspended oil exports for 235 days, costing Iraq more than $7 billion.
Energy analyst Shuan Zulal told the 12:00 bulletin that Iraq's response to the oil companies' contracts will be a major reason for the resumption of oil exports, because the oil companies are not ready to resume production and exports without deciding the fate of their contracts The companies can file a complaint and the court will probably decide in favor of the companies.
Shuan Zulal, stressed that the Iraqi government does not put pressure on companies because it knows it will be harmful and companies take the complaint to court will not be in the interest of Iraq.
The energy analyst said that there are two solutions to the problems between the Iraqi government and the Kurdistan Regional Government and oil companies, one is to issue an oil and gas law and solve the problem by law Pay off his debts, but this is not the basic solution and is 'pinning'
On Sunday, Hayan Abdul Ghani, led by a high-level delegation from his ministry, arrived in Erbil and met with Prime Minister Masrour Barzani
Mostly reiteration but still a read...
The Iraqi Oil Ministry delegation continues to meet with Kurdistan Regional Government (KRG) officials in Erbil to find a solution to the problems facing the production and export of oil from the Kurdistan Regional Government (KRG) oil fields.
The head of the Energy and Natural Resources Committee of the fifth session of the Kurdistan Parliament says that the repayment of $ 1 billion in debts and the cost of extracting and exporting oil are major obstacles in the negotiations between Erbil and Baghdad.
"The problems between the Kurdistan Regional Government (KRG) and the Iraqi government regarding oil exports are big. Iraq wants Kurdistan Regional Government (KRG) oil," Ali Hama Salih, chairman of the Kurdistan Regional Government (KRG) Energy and Natural Resources Committee, told Rudaw "It should be exported again, but in the way it wants. The Kurdistan Region should do the same."
"One of the biggest problems is paying the $1 billion that oil companies are demanding for oil production this year. Iraq has not yet been able to repay the money. The cost of oil production is another problem," he said The Kurdistan Region and what Iraq has demanded.”
According to Ali Hama Saleh, the pipeline fee is high and Iraq is not willing to pay $9 per barrel, while it pays about $1.20 per barrel.
"The oil and gas companies want to work with the Iraqi government. If they find a way to benefit from an agreement with the Iraqi government, they will agree with the Iraqi government without hesitation," he said Kurdistan will be completed.
Https://www.kurdistan24.net/en/story/33146-KRG-had-%E2%80%98good-understanding%E2%80%99-with-Iraq-oil-officials,-says-PM-Barzani
ERBIL (Kurdistan 24) – The Kurdistan Regional Government (KRG) has recently had a good understanding with the Iraqi federal oil officials regarding the outstanding issues, Prime Minister Masrour Barzani said on Tuesday.
A delegation from Iraq’s Ministry of Oil, headed by Minister Hayyan Abdul Ghani and several oil directors, including those from the state oil company, met with Kurdistan Region officials on Monday to discuss the resumption of halted oil exports from the Kurdish region as well as payment issues to oil companies.
“We reached a good understanding in our discussions and they decided to go back to Baghdad to discuss it with their colleagues prior to making a final decision on the recommendations,” Barzani told reporters in Erbil.
“I am hopeful that there will be good outcomes and positive news for the people [out of the discussions],” he added.
The oil export from the Kurdistan Region has been halted since March 25 at the request of Baghdad after Iraq claimed victory against Turkey at the International Arbitration Court in Paris.
“There is a prospect for resuming the oil export,” Barzani said, stressing the Kurdistan Region’s constitutional rights must be protected.
Right, I'm off to see if I can de-mice my car 🐭
Sounds like they are trying to carve an agreement between themselves after hearing APIKUR's demands, back to Baghdad to check if the details thrashed out over the weekend are acceptable to the Big Cheese and Turkey, then..... Will APIKUR sign the deal. It's always just around the corner, 'till it's suddenly behind you, holding on to my fistfull of shares....
Sorry it's a bit fragmented, antique phone playing up 🙄
We have a project to bring these contracts into line with the law as allowed by the Iraqi constitution. As you know, within the fifth round of operating licenses, the Ministry of Oil has signed contracts with a number of companies on the basis of profit sharing, not production sharing. With God's help, we agreed to adjust the contracts in this way. In addition, oil exports through the Iraqi-Turkish oil pipeline were discussed. Many points were agreed upon. Some issues need to be resolved and explained. We received explanations from the brothers in the Kurdistan Region about the nature of the contracts. We will investigate and analyze these contracts with the aim of resuming oil exports. We are very serious about accelerating the process of oil production and export. As everyone knows, the federal budget law requires the Kurdistan Region to deliver 400,000 barrels of oil per day, which is exported through the Iraqi-Turkish oil pipeline; Because the Iraqi state budget mainly depends on oil exports, we have lost this amount during this period. We will return to Baghdad to investigate these contracts and analyze them. God willing, we will reach an agreement on oil exports in the coming days.
Rudaw: The Kurdistan Regional Government may not have any problems with the review of oil contracts, but the companies have problems. Are you talking to the companies to resolve this issue?
Hayan Abdulghani: We discussed with the brothers of the Kurdistan Region, especially the Ministry of Natural Resources, we agreed on a joint meeting between the Federal Ministry of Oil and the Ministry of Natural Resources and representatives of foreign companies operating in the region. Relying on God, both sides will agree on a mechanism to discuss the issue of companies and reach a solution that will satisfy everyone.
Rudaw: The companies operating in the Kurdistan Region say that the Kurdistan Regional Government owes them $1 billion in production during this period. Who should pay that money? In addition to demanding another $3 billion, which the Kurdistan Regional Government has already sold oil, how will they solve this? He has paid for oil and received money. This is one of the problems and how will you solve this issue?
Hayan Abdulghani: The Kurdistan Regional Government (KRG) brothers presented the debts and demands of foreign companies operating in the Kurdistan Region.
Rudaw: Are you optimistic that oil exports will resume soon?
Hayan Abdul Ghani: With God's help, we are optimistic. All the atmosphere we have seen in the talks has been positive. Both sides insist that oil exports should resume as soon as possible
Rudaw
Iraqi Oil Minister reveals the contents of their meetings on Kurdistan oil
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Interview with Hayyan Abdul Ghani, Iraqi Oil Minister
Interview with Hayyan Abdul Ghani, Iraqi Oil Minister
Marking Hayan Abdulghani Kurdistan oil exports
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Rudaw Digital
Hayyan Abdul Ghani explains the contents of the meetings of the Iraqi Oil Ministry's high-level delegation in Erbil over the past two days.
The aim of the delegation's visit is to resolve issues with the Ministry of Natural Resources in order to resume exports and oil production in the Kurdistan Region.
Kurdistan Regional Government (KRG) oil exports have been suspended since March 25 following a ruling by the International Court of Arbitration in Paris following a complaint filed by Iraq against Turkey.
The Iraqi oil minister told Rudaw that he had held an extensive meeting with the Ministry of Natural Resources, senior officials and technical advisors to discuss the nature of the oil contracts signed with extractive companies.
“As you know, contracts are production sharing, but for us as the federal government, according to the constitution, we cannot deal with such contracts in this way The nature of these contracts was explained to the Ministry of Oil with the federal government department, the regional government department and the companies department.”
The Kurdistan Regional Government (KRG) has suspended oil exports for 235 days, causing a loss of more than $7 billion in Iraqi revenue.
Interview with Iraqi Oil Minister Hayyan Abdul Ghani
Rudaw: Mr. Minister, how was your two-day stay in Erbil and your meeting with the Kurdistan Regional Government (KRG) to resume oil exports?
Hayan Abdulghani: In the name of God, we are now in Erbil province in the Kurdistan Region, led by a high-level delegation of the Ministry of Oil, which includes two agents, a number of directors general and a number of former employees Resumption of Iraqi oil exports and oil production in the Kurdistan Region. In the past two days, a series of meetings have been held, the first meeting was with Mr. Masrour Barzani, explained all the issues related to oil. Then we had an extensive meeting with the Ministry of Natural Resources, senior employees of the ministry and a number of technical advisors, in which all aspects of this issue were discussed Such contracts cannot be treated in this way, so changes to the example of contracts were discussed, along with the introduction of the economic model of these contracts. The Ministry of Natural Resources gave a full explanation to the Federal Ministry of Oil. The nature of these contracts was clarified to the Ministry of Oil with the federal government department, the regional government department an
Interview with Iraqi Oil Minister Hayyan Abdul Ghani
Rudaw: Mr. Minister, how was your two-day stay in Erbil and your meeting with the Kurdistan Regional Government (KRG) to resume oil exports?
Hayan Abdulghani: In the name of God, we are now in Erbil province in the Kurdistan Region, led by a high-level delegation of the Ministry of Oil, which includes two agents, a number of directors general and a number of former employees Resumption of Iraqi oil exports and oil production in the Kurdistan Region. In the past two days, a series of meetings have been held, the first meeting was with Mr. Masrour Barzani, explained all the issues related to oil. Then we had an extensive meeting with the Ministry of Natural Resources, senior employees of the ministry and a number of technical advisors, in which all aspects of this issue were discussed Such contracts cannot be treated in this way, so changes to the example of contracts were discussed, along with the introduction of the economic model of these contracts. The Ministry of Natural Resources gave a full explanation to the Federal Ministry of Oil. The nature of these contracts was clarified to the Ministry of Oil with the federal government department, the regional government department and the corporate department.
We have a project to bring these contracts into line with the law as allowed by the Iraqi constitution. As you know, within the fifth round of operating licenses, the Ministry of Oil has signed contracts with a number of companies on the basis of profit sharing, not production sharing. With God's help, we agreed to adjust the contracts in this way. In addition, oil exports through the Iraqi-Turkish oil pipeline were discussed. Many points were agreed upon. Some issues need to be resolved and explained. We received explanations from the brothers in the Kurdistan Region about the nature of the contracts. We will investigate and analyze these contracts with the aim of resuming oil exports. We are very serious about accelerating the process of oil production and export. As everyone knows, the federal budget law requires the Kurdistan Region to deliver 400,000 barrels of oil per day, which is exported through the Iraqi-Turkish oil pipeline; Because the Iraqi state budget mainly depends on oil exports, we have lost this amount during this period. We will return to Baghdad to investigate these contracts and analyze them. God willing, we will reach an agreement on oil exports in the coming days.
Hayyan Abdul Ghani explains the contents of the meetings of the Iraqi Oil Ministry's high-level delegation in Erbil over the past two days.
The aim of the delegation's visit is to resolve issues with the Ministry of Natural Resources in order to resume exports and oil production in the Kurdistan Region.
Kurdistan Regional Government (KRG) oil exports have been suspended since March 25 following a ruling by the International Court of Arbitration in Paris following a complaint filed by Iraq against Turkey.
The Iraqi oil minister told Rudaw that he had held an extensive meeting with the Ministry of Natural Resources, senior officials and technical advisors to discuss the nature of the oil contracts signed with extractive companies.
“As you know, contracts are production sharing, but for us as the federal government, according to the constitution, we cannot deal with such contracts in this way The nature of these contracts was explained to the Ministry of Oil with the federal government department, the regional government department and the companies department.”
The Kurdistan Regional Government (KRG) has suspended oil exports for 235 days, causing a loss of more than $7 billion in Iraqi revenue.
Didn't last long, but at end they said they are very encouraged by the developments and voiced optimism of pipeline opening, no quibble words about contracts 🤔