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Kurdish Oil Exports Stay Halted as Iraq Negotiates With Turkey
Kadhim Ajrash and Khalid Al-Ansary, Bloomberg News
Excess fluid sits on the rim of a barrel of oil based lubricant at Rock Oil Ltd.'s factory in Warrington, U.K., on Monday, March 13, 2017. Oil declined after Saudi Arabia told OPEC it raised production back above 10 million barrels a day in February, reversing about a third of the cuts it made the previous month. Photographer: Chris Ratcliffe/Bloomberg
Excess fluid sits on the rim of a barrel of oil based lubricant at Rock Oil Ltd.'s factory in Warrington, U.K., on Monday, March 13, 2017. Oil declined after Saudi Arabia told OPEC it raised production back above 10 million barrels a day in February, reversing about a third of the cuts it made the previous month. Photographer: Chris Ratcliffe/Bloomberg , Bloomberg
(Bloomberg) -- Oil exports from the Kurdistan region of Iraq remain halted as Baghdad negotiates with Turkey’s government in an attempt to reopen a pipeline linking the two countries, said an Iraqi official.
Ankara was ordered last month to pay Iraq $1.5 billion in net compensation by an international business tribunal for allowing crude from Kurdistan to be exported without Baghdad’s consent. Turkey hasn’t commented on the amount, but officials from the country said they want to negotiate the settlement.
In the meantime, a pipeline that ordinarily moves 400,000 barrels a day from northern Iraq to the Mediterranean port of Ceyhan is shut.
Baghdad is engaged in talks with Ankara, along with parallel negotiations with the Kurdistan Regional Government’s Ministry of Natural Resources, the Iraqi official said, asking not to be named because the information was private. The regional and federal governments of Iraq signed an agreement aimed at reopening the pipeline earlier this month, but some details of how oil from the semi-autonomous region will be sold are unresolved.
While the crude flows are halted, Turkey has said it is carrying out maintenance work on a stretch of pipeline on its side of the border, along with some oil-storage tanks, according to the Iraqi official.
The Turkish government hasn’t yet elaborated on whether it is seeking to reduce the $1.5 billion compensation award, or determine a mechanism for how to make the payments.
--With assistance from Verity Ratcliffe.
©2023 Bloomberg L.P.
https://twitter.com/111notout1/status/1644256746183983104?s=61&t=EEAJRmerpfLiAmForyb8Dw
Thanks Doctor - once first tanker departs we have de fact exports restarted
HTTPS://twitter.com/111notout1/status/1644256746183983104?s=61&t=EEAJRmerpfLiAmForyb8Dw
2nd tanker at loading berth.
BAGHDAD ORDERED TO COMPENSATE TURKEY FOR CRUDE EXPORTS FROM NORTHERN IRAQ
PM:07:31:28/03/2023
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SULAIMANI — The International Chamber of Commerce (ICC) ordered Iraq to pay compensation to Turkey for several violations concerning a longstanding international arbitration case regarding crude oil exports from Iraq's Kurdish Regional Government (KRG), Turkey’s Energy Ministry said Tuesday (March 28) in a statement.
The statement came after reports claimed that Iraq halted crude exports Saturday from the KRG's northern Kirkuk fields after Iraq won an arbitration case against Turkey.
"At this stage of the (arbitration) case, members of the Arbitral Tribunal have rejected four of the five claims Iraq has put forward," the ministry said, adding that the majority of Turkey’s demands were accepted.
"They ordered Iraq to pay compensation to Turkey for these violations," it said.
The ministry said the issue was "a reflection of a years-long dispute" between the Iraqi central government and KRG about sharing oil revenues.
"Turkey has always respected the unity and territorial integrity of Iraq and has been working relentlessly for the political and economic stability of both Iraq and the KRG government," it said.
Despite instability in the region, the ministry said Turkey has undertaken billions of dollars in expenditures to keep the Iraq-Türkiye Oil Pipeline System operational since 1973, which also helped maintain stability in global oil markets.
"It has conducted intensive diplomacy with both parties and relevant countries to arrive at an amicable settlement of the dispute," it said.
The ministry expressed readiness to fulfill the requirements of international law and to make any contribution to the permanent settlement of the conflict between Iraq’s central government and the KRG.
With its proven oil reserves of approximately 145 billion barrels, Iraq is the fifth-largest producer in the world and the second-biggest OPEC producer with a daily production of more than 4.5 million barrels. The country has been in a deadlock for years due to the misuse of resources and the unfair distribution of oil revenues.
(NRT Digital Media/AA)
Looking good visit came less than 24 hours after announcing resolution to long standing oil dispute. Looks like they’re close to signatures.
Al-Sudani meets Kurdish leader Barzani in his first visit to Erbil as PM
Kurdistan
Mohammed Shia Al-Sudani
2023-03-14 14:10
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Shafaq News/ Iraqi Prime Minister, Mohammed Shia al-Sudani, on Tuesday met with Kurdish leader Masoud Barzani at the latter's headquarters near the capital city of the Kurdistan region, Erbil.
Marking his first while in office, Prime Minister al-Sudani embarked on an official visit to the Kurdistan region of Iraq this morning. The visit came less than 24 hours after announcing a resolution of a long-standing oil dispute between Baghdad and Erbil.
Prime Minister al-Sudani was flanked by the ministers of foreign affairs, interior, planning, immigration and displacement, the head of the Border crossing authority, the cabinet's secretary, the head of the National Security Agency, and a number of advisers.
According to a statement by his media office, al-Sudani attended a lunch held by the Kurdish leader in his honor. A slew of Kurdish officials, party leaders, and representatives of various ethnic groups also attended the event.
The Prime Minister reiterated his government's commitment to engaging with all political forces and achieving greater understanding, which will reflect positively on public service delivery, according to the statement.
Barzani expressed his satisfaction with the government's reform efforts, as well as his support for the government's program, which includes initiatives aimed at improving the economic and developmental situation in Iraq, the statement added.
Baghdad, Erbil reach comprehensive agreement
Amr Salem March 14, 2023 254 2 min
Baghdad, Erbil reach comprehensive agreement
The Iraqi Prime Minister Mohammed Shia Al-Sudani. Photo: Reuters
Baghdad (IraqiNews.com) – The Iraqi Prime Minister, Mohammed Shia Al-Sudani, announced on Monday that a comprehensive agreement had been reached on the outstanding issues between Baghdad and the Kurdistan region.
Al-Sudani, during a press conference, said that the understandings between Baghdad and Erbil were on clear points, noting that if any disagreements between Baghdad and Erbil took place, there is a committee that submits its recommendations to the Prime Minister.
“For the first time, the total revenues of the oil produced in Kurdistan are deposited in a bank account controlled by the federal administration,” Al-Sudani explained.
Al-Sudani added that the understandings between Baghdad and Erbil confirm that the two parties are moving forward to approve the oil and gas law.
The oil and gas law in Iraq, which has been stagnant in the Iraqi Parliament since 2005 due to disagreements with the Kurdish political forces, stipulates that the management of Iraq’s oil fields must be entrusted to a national oil company supervised by a specialized federal council.
This means that Baghdad is responsible for oil in Kurdistan, which Erbil rejects, and considers it a measure that violates the constitution.
The outstanding issues between Baghdad and Erbil are among the major problems the successive Iraqi governments face.
The major outstanding issues between Baghdad and Erbil are the salaries of employees in Kurdistan Regional Government (KRG), security coordination in disputed areas, and a mechanism for exporting oil from fields in the Kurdistan region.
[Talks resume Monday]
The regional government announces reaching a preliminary agreement with Baghdad regarding the oil file.
(NAS News: Feb 24 2023)
"On Friday, the Kurdistan Regional Government announced that it had reached a preliminary agreement with Baghdad regarding the oil file, while indicating that the talks would resume next Monday.
The head of the representative of the Kurdistan Regional Government in Baghdad, Faris Issa, said in a statement to the media affiliated with the Presidency of the Government, followed by "NAS", (February 24, 2023), that "the delegation of the regional government will visit Baghdad on Monday (February 27, 2023), and will remain until Thursday to continue the talks.
Issa confirmed, "The government delegation will meet with the Iraqi Oil Ministry, and a preliminary agreement has been reached on the oil and gas law," adding that "the previous meetings were very positive and reached a solution."
hTtps://www.nasnews.com/view.php?cat=102678
KRG Delegation to Resume Budget Talks in BaghdadERBIL — A delegation from the Kurdistan Regional Government (KRG) is set to return to the Iraqi capital on Thursday to follow up on recent discussions on the crux of outstanding problems between the two, notably Erbil's share of the federal budget and details of a hydrocarbons law in the making.The decision to send another delegation to Baghdad was made yesterday during the weekly meeting of the KRG Council of Ministers, hoping that federal government officials would respond in kind to Erbil's goodwill and seriousness to find enduring solutions which would help both parties avoid this persistent need for conflict resolution.During Wednesday's meeting of government ministers, Prime Minister Masrour Barzani reaffirmed his commitment to find concrete solutions while cautioning that failure to do so would hurt the interests of the country moving forward: "We are ready for all kinds of coordination and cooperating with the federal government to resolve our issues. If they remain unresolved, they will harm the interests of all Iraqi citizens."Erbil and Baghdad on Sunday formed a joint committee to prepare details of a potential hydrocarbons law, which will determine the rights and responsibilities of both sides. They have also reached a preliminary agreement on the upcoming federal budget bill.Relations between Erbil and the federal government of Iraq turned sour after Baghdad cut Erbil's share of the federal budget in 2014. The relationship has often been tested, and complicated by persistent violations of the country's constitution, which enshrines Kurdistan Region's financial entitlements.
Erbil, Baghdad Resume Dialogue in Push for Lasting Solutions
ERBIL — The Kurdistan Regional Government (KRG) is sending another delegation to the Iraqi capital today to solidify the progress recently made, and find concrete solutions to problems that have been upsetting bilateral ties in recent years, including for Erbil's share of the federal budget.
"We as the KRG delegation are set to return to Baghdad on Sunday to follow up on recent talks on outstanding problems between Erbil and Baghdad," the Head of KRG Diwan Omed Sabah said in a Facebook post.
We have decided to continue this series of dialogue until we reach a solution that serves the interests of both sides."
Discussions will cover a range of long-running disputes, notably details of the upcoming federal budget bill and a potential hydrocarbons law. The two sides have reached a preliminary agreement on the federal budget, in which the rights and responsibilities of both parties have been determined, KRG Spokesperson Jotiar Adil said in a news conference last week.
However, it remains to be seen how preliminary agreements on critical issues will translate into action, and how recent positive developments in relations between the two will shape bilateral ties in the future as both parties continue to stress the need for closer coordination and continued cooperation.
Michael Knights
@Mikeknightsiraq
(Twitter Feb 16 2023)
" If true, this is a pretty standard temporary deal but still progress - lots of devil in the detail - of the break Kurdish allocation, the deduction, and the auditing. "
hTtps://twitter.com/Mikeknightsiraq/status/1626319114624020489
964 English
@964English
(Twitter Feb 16 2023)
" Exclusive??: The #Iraqi Government and the #Kurdistan Regional Government (KRG) are close to an interim deal on energy exports & budget entitlements, a source close to Baghdad-Erbil talks told +964.
The deal rests on 3 main pillars. Here we go??: "
hTtps://twitter.com/964English/status/1626225340367659008
" 1- Kurdistan Region will receive 14% of the federal budget, with its oil and non-oil revenues subtracted
from the 14% share.
2- KRG will open a bank account for its oil and gas revenue, and Baghdad will have access to it for auditing and accounting purposes.
3- A joint auditing body will monitor Kurdish oil sales. The interim agreement will remain in place until a
bill passes through the federal and Kurdistan parliaments to settle the issue definitively. "
hTtps://twitter.com/964English/status/1626225348898881540
KRG Delegation to Return to Baghdad for Follow-up Budget Talks: Official
ERBIL — Delegates from the Kurdistan Regional Government (KRG) will hold another round of meetings with federal authorities in Baghdad on Sunday on outstanding problems between the two, namely the upcoming budget bill.
"During our recent visit to Baghdad, we met with ministries of finance, oil, and planning, and the KRG delegation is set to visit Baghdad again on Sunday to continue these discussions," KRG Spokesperson Jotiar Adil said in a news conference on Thursday.
He also stressed that the two sides have reached a preliminary agreement on Iraq's federal budget bill for 2023, in which the rights and responsibilities of both parties have been determined. There are certain budget details to be discussed in this upcoming round of talks, Adil added.
A KRG delegation was in Baghdad this Saturday to discuss the specifics of the federal budget bill for the year and a potential hydrocarbons law, which will largely clear confusion between the two on their rights and responsibilities.
This KRG cabinet is looking to negotiate a lasting solution within the framework of the Iraqi constitution to outstanding problems, notably Erbil's share of the federal budget, to ensure a stable and predictable relationship with Baghdad.
Recently, Iraqi Prime Minister Mohammed Shia' al-Sudani in an interview with the Saudi Asharq Al-awsat newspaper stressed that they had "reached an agreement with the Kurdistan Region on managing the oil sector, and also on budget shares."
However, it remains to be seen how these preliminary agreements translate into action, and how these recent positive developments in relations between the two will shape bilateral ties in the future.
Al-Sudani announces a draft of the oil and gas law and sets its date.
(Shafaq News Feb 07 2023)
" The Prime Minister, Muhammad Shia' al-Sudani revealed, on Tuesday evening, that there is a draft of the oil and gas law that is being reviewed between Baghdad and Erbil to prepare it and then approve it.
Al-Sudani said during the weekly press conference, which was attended by Shafaq News Agency, "The oil and gas law is one of the government's obligations, and there is a draft law being circulated between the Federal Ministry of Oil and the Ministry of Natural Resources in Kurdistan Region." "
hTtps://shafaq.com/ar/%D8%B3%DB%8C%D8%A7%D8%B3%D8%A9/%D8%A7%D9%84%D8%B3%D9%88%D8%AF%D8%A7%D9%86%D9%8A-%D9%8A%D8%B9%D9%84%D9%86-%D9%85%D8%B3%D9%88%D8%AF%D8%A9-%D9%84%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%A7%D9%84%D9%86%D9%81%D8%B7-%D9%88%D8%A7%D9%84%D8%BA%D8%A7%D8%B2-%D9%88%D9%8A%D8%AD%D8%AF%D8%AF-%D9%85%D9%88%D8%B9%D8%AF%D9%87%D8%A7
US Congress Urges Erbil, Baghdad to Resolve Disputes for the Good of the People
ERBIL — Chairman of the US Congressional Committee on Foreign Affairs Michael McCaul in a letter this week urged Secretary of State Antony Blinken to "press" both Erbil and Baghdad to resolve their long-running disputes for the good of the country and benefit of their peoples.
"Officials in Baghdad and the federally recognized Kurdistan region must both make concrete commitments to work together to constructively advance a permanent, mutually acceptable, settlement of the longstanding dispute related to the disposition of Iraq's natural resources," McCaul said in the letter.
Iraqi unity and solidarity, demonstrated through transparently administered federal budget transfers to the Kurdistan Regional Government, will send a strong message of deterrence to Iran in the face of its repeated missile and drone attacks that violate Iraqi sovereignty and have killed civilians."
The US congressman also voiced concern about the recent Federal Supreme Court decision ruling federal budget transfers to Erbil unconstitutional, which authorities in Erbil hope doesn't upset recent attempts to reach a solution.
"I am concerned the recent Federal Supreme Court decision regarding the federal budget allocation suggests this unresolved constitutional dispute may continue to undermine prospects for reconciliation between Baghdad and the federally recognized Kurdistan region and further threaten confidence at a time of severe hardship for many Iraqis," McCaul noted.
"I urge you to press leaders in Baghdad and the Kurdistan region to make the political decisions necessary to protect Iraq's sovereignty, fulfill Iraqi's potential, and benefit of the Iraqi people."
Erbil and Baghdad have often been at loggerheads in recent years over control of oil sales and federal budget allocations. Relations became especially strained when Baghdad cut Erbil's share from the federal budget in 2014, after which the Kurdistan Regional Government (KRG) has mostly relied on local revenues with sporadic payments from the federal government.
From Advfn.
KRG delegation meets with officeholders in Iraq's oil ministry
A delegation from the Kurdistan Regional Government (KRG) on Tuesday met with officials in Iraq's federal oil ministry to discuss cooperation in energy administration.
KRG's media department said that the meeting exchanged views on the coordination between Kurdistan's ministry of natural resources and Iraq's oil ministry in a bid to find a formula that organizes their bilateral ties in accordance with the constitution and the new cabinet's government program.
Over the past few days, KRG's ministerial delegation has held a series of meetings with senior officeholders and politicians in the Iraqi capital city over a set of contention points, including the federal budget and hydrocarbons bills.
From Advfn
Incoming Takeover
Just noticed …they have Binned Celicourt…..in the past couple of weeks and taken on …FTIconsulting.
.
About Ben
Ben Brewerton is a Senior Managing Director in the Energy & Natural Resources sector within the Strategic Communications segment at FTI Consulting. He is based in London.
Ben joined FTI Consulting in 2006 and has spent over 25 years as a strategic communications advisor. Since 2004, he has focused on the energy and natural resources sector, where he has extensive initial public offering (IPO) and merger and acquisition experience.
Ben's current clients include Seplat Petroleum, Topaz Marine, Quadrise Fuels, Toro Gold, ACWA Power and Simec Atlantis Energy. He is leading the FTI Consulting team currently advising Faroe Petroleum on its defense of a hostile offer from Norwegian independent, DNO.
In 2014, Ben advised Heritage Oil on its acquisition by Al Mirqab Capital, Caracal Energy on its acquisition by Glencore, Mediterranean Oil & Gas on its acquisition by Rockhopper and the consortium of founding shareholders on their acquisition of Eurasian Natural Resources Corporation (ENRC). He advised Seplat Petroleum on its 2014 IPO, the first London/Lagos dual listing, and advised Caracal Energy on its London listing in 2013. Previously, he worked with Star Energy on its acquisition by Petronas in 2008, PetroChina on the formation of its refining joint venture with INEOS in 2011 and Heritage Oil on its acquisition of OML30 in Nigeria in 2012
In mining, Ben advised Polyus Gold on its premium listing in London in 2012, Central African Mining and Exploration Company on its offer for Katanga Mining and its sale to ENRC, NordGold on its attempted IPO and subsequent global depositary receipts listing, and Severstal Resources on its hostile takeover of Celtic Resources.
Mentions sarsang atrush and Shaiken being possibly the world’s 3 Rd largest oil field.
The Kurdistan Oil PSC Contracts – What is Going to Become of Them?
Posted on July 18, 2022 by Editorial Staff in Exclusive, Oil & Gas
The Kurdistan Oil PSC Contracts
An oil refinery in Iraqi Kurdistan. Photo: AFP
Sheri Laizer | Exclusive to Ekurd.net
Iraq’s Federal Supreme Court has ruled the Sarsang PSC contract illegal concerning HKN Energy – and that is Ross Perot’s Company. [1] But meanwhile the KRG elite’s efforts continue – particularly in the territory under the control of the Barzani-dominated KDP.
According to a statement on July 7 reproduced in the ISHM bulletin of 7-14 July 2022, “Iraq’s Oil Minister, Ihsan Abdul-Jabbar Ismail, said that his government was serious about enforcing a recent court decision against four foreign oil companies operating in the Kurdistan region. The day before, news reports said that an Iraqi court in Baghdad ruled that the contracts between the Kurdistan region’s government and Western Zagros, DNO, HKN Energy, and Genel Energy were void. The court reportedly found the contracts in question to be in violation of the February 15 ruling by the Federal Supreme Court against oil operations in the Kurdistan region.
In an exclusive interview with AP, Ismail, said that Baghdad’s plans to bring Kurdistan’s oil operations under its control will expand to reach a total of 17 companies and he would present the companies with three options: canceling the contracts, requesting waivers from Baghdad, or agreeing to transfer the deals from the KRG Natural Resources Ministry to Iraq’s federal Oil Ministry. Ismail said his approach first involves giving the companies a warning that they are “working in the smuggling of oil,” and “If they are a respectful company they will listen to us.” Should the companies refuse to cooperate, the minister said Baghdad would seek to enforce the court decisions through “the law and banks.” [2]
The Kurdistan Oil PSC Contracts
Iraqi Kurdistan oil map. Atrush field. Photo: Provided by Sheri Laizer
Of current importance therefore and worth watching next is the fate of the following fields:
The Sarsang field under the blacklisted HKN Energy=Ross Perot.
The Atrush field is now Taqa (Abu Dhabi National Energy Company) /ShaMaran (Lundin of Sweden) who bought out Alex Cranberg’s GEP Aspect Energy and kept the name.
Shaikan field, is GKP (KDP PUK/ UAE and UK elite). They own 95% of GKP, and that’s why they are paying themselves a dividend of 11% this year.
When, and if, ShaMaran use GEP to buy Sarsang, that would mean the elite of the KDP would own Sarsang, Atrush and Shaikan.
This is big money if those three oil fields should become one and it would amount to the world’s third largest oil field.
A recent public statement by ShaMaran itself read:
Shamaran Announces Sarsang Acquisition Progress
VANCOUVER, BC, July 12, 2022 /CNW/ – ShaMaran Petroleum Corp. (“ShaMaran” o
The wells are at Kirkuk which has been a contention for a long while.
Looks like the Kurds are getting control of what the constitution says is theirs before any future development.