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The Future of Iraq’s Oil Is Russian


yota691
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Iraq, November 8, 2017 

Between February 2017 and mid-October, Rosneft signed a number of deals with the Kurdish Regional Government (KRG) that established for it, and by extension for Russia, a major position as both an investor and stakeholder in the Kurdish Region of Iraq (KRI)’s hydrocarbon resources and infrastructure.

The move was interpreted, especially by the KRG, as implicit support for the KRG in its bid for independence, especially in light of the latest deal signed following the reassertion of Iraq’s federal control over Kirkuk and other disputed territories. While there is an element of truth to this thinking, the deals are part of a wider geopolitical positioning for Russia as a major gas supplier to Europe and as an emerging power in the Middle East.

The deals provide Rosneft, and by extension Russia, effective control of the KRG’s Oil & Gas infrastructure, and a controlling stake in the region’s finances in more ways than one.

Within the oil space it has established this in three ways. The first was by providing USD 1.5bn in financing via forward oil sales payable over 3-5 years. This would be payable in kind from the KRG’s exports, until recently at about 550,000-600,000 barrels per day (bbl/d). However, the loss of the Kirkuk fields takes away about 430,000 bbl/d of production or eventually about half of the KRG’s exports.

This leaves the KRG with a tiny revenue stream after payments to International Oil Companies (IOC)’s, from which to make payments on forward oil sales of up USD 3.5 bn including Rosneft’s USD 1.5bn. A complicating factor is the repayment of other KRG debt, estimated at over USD 21bn by end of 2017, which will have to be factored into debt payment sustainability.

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http://iraqdailyjournal.com/story-z16179597

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  • yota691 changed the title to Russian company pays $ 1.3 billion to Kurdistan for oil supplies in 2017
 
Tuesday, November 14,
 
 
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Alsumaria News / Baghdad
announced that Rosneft , Russia, Tuesday, it paid $ 1.3 billion for the Kurdistan Regional Government in 2017 advance payments for oil supplies with announcing a jump in net profit in the third quarter of this year. 

The results of the largest oil producer in the work of Russia 's net profit jumped 80 percent year on year in the third quarter to 47 billion rubles ($ 792 million) , supported by the rise in crude prices, but it came below expectations in the poll for Reuters .

 

 


Analysts polled by Reuters had expected Rosneft to make a third-quarter net profit of 66 billion rubles. 

The company's sales between July and September rose to 1.5 trillion rubles from 1.22 trillion rubles, in line with the survey results. 

EBITDA increased to 371 billion rubles in the third quarter from 292 billion rubles, against expectations of 356.3 billion rubles.

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KRG-Rosneft Agreement Still Valid: Spokesperson

 

Basnews English

16/11/2017 - 23:24

 
 
KRG-Rosneft Agreement Still Valid: Spokesperson
 

ERBIL — The agreement between Kurdistan Regional Government (KRG) and Russian giant oil company, Rosneft, is still valid even though Erbil’s oil revenues face a huge slash, a spokesperson said.

“Rosneft has an agreement with the Kurdistan Region to invest $3 billion in the energy sector ,” KRG’s Spokesperson Safeen Dizayi told BasNews on Thursday.

The official pointed out that half of the oilfields previously under the control of the KRG are now seized by Baghdad, which has decreased Erbil’s oil revenues by 50%.

Concerning Baghdad’s attempt to downsize KRG’s share from the federal budget, Dizayi said that such a small share will fall far short of the expenses on public servants’ wages.

“They [the Iraqi government] have allocated 340 billion Dinar monthly, which cannot meet the expenses of even one province in the Kurdistan Region.”

Dizayi further explained that 850 billion Dinar is needed to cover public servants’ wages only.

 

http://www.basnews.com/index.php/en/economy/kurdistan/393403

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http://www.rudaw.net/english/kurdistan/051220175.

 

Iraqi PM receives Russian energy minister in Baghdad

By Rudaw 18 minutes ago
Iraqi prime Minister Haider al-Abadi [R] meets with the Russian energy minister Alexander Novak in Baghdad on December 5, 2017. Photo: Iraqi PM office
Iraqi prime Minister Haider al-Abadi [R] meets with the Russian energy minister Alexander Novak in Baghdad on December 5, 2017. Photo: Iraqi PM office.
 
ERBIL, Kurdistan Region – Iraqi Prime Minister Haider al-Abadi received the Russian energy minister Alexander Novak in Baghdad on Tuesday.
 
The two discussed developing their bilateral relations in the fields of energy, the economy, commerce, oil, and electricity, according to a statement from Abadi’s office.
 
They also discussed ways to expand involvement of Russian companies in reconstruction and investment projects in Iraq.
 
Iraq’s Foreign Minister Ibrahim Jaafari visited Russia in October and met with his Russian counterpart. Among topics they discussed where Kurdistan’s independence vote and KRG’s oil deals.
 
Russia says it supports the territorial integrity of Iraq, but also stresses the need to respect the constitutional rights of the Kurdish population.
 
Baghdad says it should have control of KRG’s oil exports.
 
Russian oil and gas companies such as Gazprom and Rosneft have a presence in the Kurdistan Region.
 
Rosneft signed a number of contracts with the KRG regarding oil and gasexports to international markets as well oil production at five sites in the Kurdistan Region. The deals are worth billions of dollars.
 
It signed a contract with the KRG worth $1 billion just a week before the Iraqi-opposed referendum and an oil production contract for the five blocks two days after the fall of oil-rich Kirkuk to Iraqi forces.
 
Russian energy minister Novak told Rudaw in June that their companies are willing to expand their work in the Kurdistan Region.
 
"We have a very good relation with Kurdistan,” Novak said then. “We want to grow this relation, particularly with regard to energy. Many companies who are currently working there are willing to grow their cooperation with Kurdistan like Gazprom, Rosneft, Lukoil, and other foreign companies.”
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  • yota691 changed the title to Ministry of Oil responds to the Russian President on the Kurdistan region
Editorial date: 2017/12/15 0:05 • 902 times read
Ministry of Oil responds to the Russian President on the Kurdistan region
(Baghdad: Al-Furat News) The Iraqi Oil Ministry responded to Russian President Vladimir Putin's statements on the investment of Rosneft in the Kurdistan region without the approval of Baghdad.

A spokesman for the ministry, Assem Jihad, said on Thursday that the ministry is adhering to its "rejection of all oil transactions without the approval of the Baghdad government" in response to Putin, who pointed out that there is no intention of Russia to withdraw the company, "Rosneft" oil from the Kurdistan region. 
Jihad said that "Russian Energy Minister Alexander Novak assured the Iraqi government during his visit to Baghdad earlier this month that any contract or agreement is carried out anywhere in Iraq will be after reference to the Iraqi government." 
The Russian minister said in a tweet on his site, "Twitter" after his visit to Baghdad that "the Iraqi government has no objection to the operations of Russian oil companies in the Kurdistan region of Iraq," He 
strongly denied the statements, asserting that his consistent position is that " , And any deal that is not approved by Baghdad is illegal and the companies will bear the consequences of the consequences. "
The spokesman for the Ministry of Oil that "the region continues to export oil, and that the problems related to this aspect has not been resolved." 
According to jihad, Erbil city of a lot of money for oil companies, including $ 2 billion for Turkish companies, and other funds to companies second, as he put it. End

 
 
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Oil expert Walid Khadduri: So Horami stole Iraq's oil with Barzani's knowledge

 

 Since 2017-12-17 at 13:46 (Baghdad time)

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Follow up of Mawazine News

The oil expert and oil expert Walid Khadduri revealed how the Minister of Natural Resources, Ashti Hawrami, stole the oil of Iraq with the knowledge and expertise of the Kurdistan Region President Massoud Barzani. He stressed that the Iraqi Oil Ministry does not have to approve or accept the contracts concluded by the government of the region and exceeded 50 contracts, .

Hawrami fled with the Black Fund for oil information of the region, while the forces and forces in the region refuse to try to prevent the disclosure of the secrets it possesses.

"The chairman of the Industry and Energy Committee of the Kurdistan Regional Parliament, Sherko Jawdat, is trying to question the Minister of Natural Resources in the region, Ashti Hawrami, but from the (Iraqi) Minister of Natural Resources," Khadduri, one of the leading energy analysts, wrote in an article in Al-Hayat newspaper. Without success, because of his disappearance for about two months abroad.Horami left Erbil after the referendum to an unknown destination.

Goodt announced that they would launch a campaign "to restore the Minister of Natural Resources to the region." "If the Minister of Wealth is prevented from returning, he will organize a campaign to return him and inform the Interpol and the outside parties," he said.

"Hawrami escaped with the Black Box for the region's oil information," Jawdat said.

According to press sources in the region last week, Hawrami returned to Erbil after spending 65 days outside Iraq on official leave on the basis of the decision of the Prime Minister of the Territory, Nigervan Barzani. "If Hawrami really returns to the region, will he accept his interrogation under the parliament?"

Among the questions and interrogations that can be raised by the parliamentary committee, according to Khadduri is "how to draw oil laws, especially how the oil laws were drafted so that the ministry can conclude international agreements with international oil companies without consulting the Federal Oil Ministry or inform agreements."

"And then ask them to bear the financial fees owed to companies and then how to agree with international oil companies without the draft agreements, even the Parliament of the region."

"According to the Kurdistan Oil and Gas Act of 2007, there is no need to obtain parliamentary approval of agreements with international oil companies." According to the law in which Hawrami played an important role in drafting it, the production sharing agreements adopted by the region, For oil and gas works with foreign companies with the ministry, subject only to the approval of (Regional Council for Oil and Gas), which consists of the Prime Minister and Vice-Minister of Planning and Financial and Natural Resources of the region.

He expressed his surprise that "the totality of international agreements and local oil for the region is contracted with the consent of members of the executive authority of the region only without legislation by the Parliament of the region, and of course without the knowledge of the federal authorities."

"But in the absence of consultation and taking the approvals of the Federal Oil Ministry and the regional parliament, where is the transparency and control over the more than 50 agreements, which means tens of billions of dollars?"

"These agreements include, especially the controversial ones, the contract signed by the ministry last September ahead of the referendum with the Russian company Rosneft, and Rosneft paid in advance about $ 1.3 billion to the region for oil supplies it was intending to buy from the Erbil government."

US Ambassador to Baghdad Douglas Allen Sulliman told the media last week that Washington was worried about oil contracts signed by the region with international oil companies. He said that the contracts and oil sales concluded by the Iraqi Ministry of Oil with international companies have been a great deal of transparency and expressed concern about the individual oil contracts carried out by the Government of the Territory with international oil companies.There ended 29 /

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  • yota691 changed the title to Baghdad does not abide by the contracts of the company Ross Oil signed in Kurdistan

Mehdi Alalak

The Secretariat of the Council of Ministers confirmed that the government of Baghdad in the solution of the contracts of Russia's Russian oil company with the Kurdistan region.

The Secretary-General of the Council of Ministers Mahdi Al-Alaq said that Baghdad does not recognize any obligation of those resulting from the contracts signed by the company Ross Oil with the Kurdistan region of Iraq.

The Russian company announced last February that it had signed an agreement with the Kurdistan region to buy crude oil.

 
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  • yota691 changed the title to Report: Iraq calls for activating economic and investment cooperation with Russia
 

According to media reports that Russian companies are looking anxiously investment in the Kurdistan region after the referendum on 25 September last, while the central government is trying to stimulate economic and investment cooperation with Russia, specifically in the field of reconstruction.
The newspaper “Life” a Russian report, published on Sunday, saying that the contracts of “Russian oil” with the Iraqi authorities in Baghdad, and its investment agreements with Kurdish parties at risk, and billions of dollars at stake, especially that the company signed contracts with the government Kurdistan region to invest about 3 billion dollars in the energy sector, at a time when the Iraqi authorities confirm that all the deals concluded by Erbil without the approval of Baghdad is illegal.
The report added that the Russian company delivered in November last year about $ 1.3 billion to the Kurdish government, under the contract as advance payments on oil supplies, used by the region to pay the debts of foreign companies operating on its territory, and will invest the remaining funds in infrastructure projects and the development of five oil fields .
As confirmed by the central government in Baghdad more than once, it is in the solution of the oil contract concluded by the Kurdistan Regional Government with “Ross Oil”, calling on the company to negotiate with the Iraqi authorities.
On the other hand, Ambassador of Iraq to Russia, Haidar Mansour Hadi al-Athari, that “the embassy is currently working on an investment conference in Moscow to encourage Russian companies, to enter Iraq and participate in reconstruction,” and that “Russian companies play an important role in the reconstruction In Iraq, especially as the country thinks of a post-urging, pointing out that “relations with Russia for more than 72 years, as the majority of the infrastructure and electric stations, roads and bridges in Iraq, Russia.”
The Russian Ambassador to Iraq Maxim Maximov, said earlier that “new prospects have emerged in front of Russian companies to work in Iraq, primarily the domestic gas sector,” indicating the interest of Russian companies to enter a number of projects in this sector.
Russian companies such as Gazprom Oil and Lukoil are contributing significantly to the Iraqi oil sector, he said, pointing out that Russian investments in this field reach 10 billion dollars, and that companies do not intend to stop at this limit only, And is interested in strengthening cooperation with Iraq.

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  • yota691 changed the title to Baghdad invites Rosneft to discuss its contracts in the Kurdistan region

Baghdad invites Rosneft to discuss its contracts in the Kurdistan region

 From 2018-02-02 at 19:08 (Baghdad time)
%D8%A8%D8%A6%D8%B1%20%D9%86%D9%81%D8%B7%

Follow up of Mawazine News

 The Federal Oil Ministry, a request to the company "Rosneft" to send a delegation to the capital Baghdad to discuss oil contracts concluded by the company with the Kurdistan region, according to the site, "Atlantic Council."

According to the site, the Iraqi Oil Ministry asked the Russian oil company to send during the month a delegation to Baghdad to discuss the contracts with the chop with Kurdistan, and to re-export Kirkuk oil through the pipeline carrier Kurdistan - Ceyhan to the world markets as that 60% of that share The pipe belongs to the company.

And on the oil differences between the government of the Territory and the federal government, is scheduled to visit Oil Minister Jabbar al-Luaibi in March next year Erbil, the capital of Kurdistan.

The Secretary-General of the Council of Ministers Mahdi Alalak announced last week that Baghdad in the solution of the contracts signed by Russian company Rosneft with the Kurdistan region.

Al-Alaq said in a press statement that Baghdad is in a solution to the obligations arising from the contracts signed by the Russian company Rosneft with the Kurdistan region of Iraq.

He added, "The Iraqi government to resolve any obligations arising from this agreement signed between the Russian company and the territorial government."

"Companies may have caused embarrassment to themselves before embarrassing others, and we hope that the problems will be solved correctly," he said.

It is worth mentioning that Russian company Rosneft has signed a series of oil contracts with the Kurdistan region, which paid billions of dollars to Erbil.

is over

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Release date: 2018/2/2 20:07 • 40 times read
Baghdad calls for [Rosneft] and the oil minister to visit Erbil
{International: Euphrates News} The Federal Oil Ministry, a request to the company {Rosneft} to send a delegation to the capital Baghdad to discuss oil contracts concluded by the company with the Kurdistan region.
The site of {AtlanticClean} today that "the Federal Oil Ministry asked the Russian oil company to send during the month a delegation to Baghdad to discuss the company's contracts with the Kurdistan region, and to re-export Kirkuk oil through the pipeline carrier (Kurdistan - Ceyhan) Global markets, because 60 percent of the stake is owned by the company. " 
On oil disputes between the government of the Territory and the federal government, it is scheduled to visit Oil Minister Jabbar al-Allaibi during the month of March next Erbil and discuss the issue of oil export Kirkuk. 
Oil Minister Jabbar al-Allaibi said earlier he would seek clarifications from Russia's major oil firm Rosneft over contracts it signed with the Kurdistan region. 
Al-Allaibi said in Baghdad that Rosneft confirmed that these contracts are preliminary and not prepared for implementation.
Rosneft has agreed to control the main oil pipeline in Kurdistan, boosting investment in the region
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  • yota691 changed the title to Baghdad declares not to be responsible for the contracts of Kurdistan oil and bear the material and legal consequences

Baghdad declares not to be responsible for the contracts of Kurdistan oil and bear the material and legal consequences

Readers

 

 

8
Baghdad declares not to be responsible for the contracts of Kurdistan oil and bear the material and legal consequences

 

06-02-2018 02:56 PM

 

The Euphrates -

 

The federal government has declared no responsibility for any contracts entered into by the Kurdistan government with regard to oil fields or other and that Erbil bears all the material and legal consequences. 

He said, "Saad al-Hadithi," a spokesman for the Prime Minister's Office, "Haider al-Abadi said in a press statement that" was confirmed in the last meeting, which brought together Prime Minister Haider al-Abadi and the head of the government of the region, Najran Barzani, on a set of principles to solve the problems between Baghdad and Erbil on the issue of oil exports from fields In the region, "noting that the file is sovereign and subject to the authority of the federal government and must be received by the Iraqi oil marketing company Sumo of the Iraqi Ministry of Oil. 

He added that the federal government is not responsible for any oil contracts were or investment concluded by the Government of the Territory during the previous periods without the knowledge of Baghdad and bear the territorial government all the material and legal consequences, pointing out that "any contract concluded must be subject to the federal government and the Iraqi Ministry of Oil and their diligence and knowledge and Work outside this framework, has no Shan in it. 

He pointed out the presence of technical committees and specialized teams consisting of the oil company Sumo of the Ministry of Oil and the Energy Committee in the Council of Ministers and some concerned authorities in the Government of the region, and its work will be limited to activate the agreement reached between the two governments and translated on the ground during the coming period. Explaining that the prevailing atmosphere today between the federal government and the region is much better than it was in the past before the referendum as well as a significant change in the positions of the region in terms of the Constitution and respect the decision of the Federal Court on the referendum. 

He added that this change is positive for the better is in the right direction, but we are waiting for the positions and principles announced by the region and understandings reached in previous meetings with Prime Minister Abbadi by giving powers to the technical committees to do its work properly and resolve the joint files between the parties. 

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Kurdistan

Russia, Iraq reach agreement on Russian investment in Kurdistan

2 hours ago

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Russia, Iraq reach agreement on Russian investment in Kurdistan
Workers stand next to a logo of Russia's Rosneft oil company at the central processing facility of the Rosneft-owned Priobskoye oil field outside the West Siberian city of Nefteyugansk, Russia, Aug. 4, 2016. (Photo: Reuters/Sergei Karpukhin)
 

ERBIL, Kurdistan Region (Kurdistan 24) – Russia’s Deputy Foreign Minister on Saturday said his country had reached a deal with the Iraqi government to support the work of Russian companies in the Kurdistan Region.

Mikhail Bogdanov, the Russian Deputy Foreign Minister and Special Presidential Envoy for the Middle East, stated that the Iraqi government had expressed its readiness to lift restrictions affecting Russian companies due to disputes between Erbil and Baghdad.

According to Bogdanov, the Iraqi government would help the Russian oil companies in Iraq resolve operational issues created due to the restrictions Baghdad imposed on the Kurdistan Region following an independence referendum last September.

Bogdanov reiterated Moscow’s stance on supporting the work of Russian firms in Kurdistan, adding that “Russian companies will continue operating in Iraq and the autonomous Kurdistan Region.”

“All the operational problems created due to the restricting measures imposed on Erbil have been resolved in one way or another in coordination with the Iraqi federal authorities,” Bogdanov explained.

He also noted that Iraq was aware of the difficulties foreign businesses working in the country faced.

A few major Russian oil firms are currently operating in the Kurdistan Region, including Rosneft, Gazprom, and Lukoil.

During an annual end-of-year press conference in late 2017, Russian President Vladimir Putin said his country shared important, long-term relations with the Kurds.

“Our relations with Kurdistan and the Kurds are historical, long-term, and good and [we share] a good trust,” Putin told reporters.

“Our companies, especially Rosneft, are working in the [Kurdistan Region],” the Russian President continued. “We believe this will benefit Iraq, Kurdistan, and, in particular, it benefits the Russian economy.”

Editing by Karzan Sulaivany

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  • yota691 changed the title to Barzani: Kurdistan is open to Russia and looks forward to concluding contracts with "Ross Oil"

Barzani: Kurdistan is open to Russia and looks forward to concluding contracts with "Ross Oil"

Published: 18.02.2018 | 18:36 GMT |

Barzani: Kurdistan is open to Russia and looks forward to concluding contracts with
Reuters / Azad Lashkari
Prime Minister of the Kurdistan Region of Iraq, Nechirvan Barzani
 
241
 

The Prime Minister of the Kurdistan region of Iraq, Nezhirvan Barzani, told the "Sputnik" Russian, that the territorial government is open to Russia and is considering the possibility of new contracts with the company "Rosneft".

Barzani said: "We have a contract with Ross Oil .. We continue our economic cooperation with the company, and we are pleased that Russian companies are working effectively in the Kurdistan region ... We are looking for the possibility of new contracts, but has not been agreed on yet."

In this context, "Sputnik" quoted the head of the Finance and Economic Affairs Committee of the Parliament of Kurdistan of Iraq, Izzat Saber, that the volume of contracts, "Ross Oil" with the local government of the region, exceeded $ 3 billion.

The tension that erupted between Baghdad and Erbil after the Kurdistan region referendum on independence from Iraq on September 25 last, to the announcement of Baghdad's objection to the conclusion of the Kurdistan region, a contract with Russian company "Russian oil" in October 2017, without obtaining its approval.

Deputy Foreign Minister Mikhail Bogdanov told Sputnik earlier in February that the Iraqi authorities are helping Russian oil companies operating in the country to resolve all operational issues arising from the restrictions on self-rule in the Kurdistan region.

Source: Sputnik

Ali al-Khatibah

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  • yota691 changed the title to The Ministry of Oil: No objection to the work of Rosneft Kirkuk fields
 
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 energy


Economy News _ Baghdad

Oil Ministry said on Wednesday that it did not mind the work of Rosneft Kirkuk oil fields.

A statement by the ministry said Oil Minister Jabbar al-Allaibi, seen by "Economy News", not to "the reluctance of the ministry in the event that the company wants to expand the scope of its work in all fields of the province of Kirkuk after coordination and agreement with the company.


Views 18   Date Added 02/28/2018
 

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Foreign Minister Ibrahim al-Jaafari said in Moscow on Wednesday that Baghdad was ready to work with any company interested in supporting the country in response to a question about Russia’s Rosneft activities.
“We do not close the door to any company that wants to help us,” he told a news conference in Moscow on a report in the Russian media that Igor Sechin, director of oil giant Rosneft, may visit Iraq.
The oil minister, Jabbar Ali al-Allaibi, said that the doors of the ministry are open to the international oil companies to participate in and contribute to investment projects for the rehabilitation of oil pipelines, the establishment of refineries, gas investment and rehabilitation of infrastructure, during a meeting with Vice President and Regional Director of Russian company Rosneft “Didier Kasimiro” .
The minister said that the ministry will not object to the company’s desire to expand its work in all fields of the province of Kirkuk, after coordination and agreement with British company BP.
Al-Allaibi pointed out that all contracts and agreements in Iraqi territory must be carried out through the federal government and the Ministry of Oil and that all countries and international companies should respect and do not deviate from it.
Rosneft has contracts in the Kurdistan region, where a controversial referendum on the region’s independence sparked tensions with Baghdad.

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Iraq's foreign minister yesterday called on Turkish businesspeople and investors to actively participate in the reconstruction of the country's economy, which is recovering from a nearly nine-year U.S.-led invasion that ended in 2011. In an exclusive interview with Anadolu Agency (AA), Ibrahim al-Jaafari recalled that in 2014-2015 the trade turnover between Iraq and Turkey amounted to $18 billion. The volume fell to $12 billion recently.

Jaafari said he hoped the volume would return to the previous level and even surpass it, blaming terrorism in the country for the reduction in trade. "Now we are seeking to increase investments from Turkey and other countries, because we believe that economic cooperation helps bridge gaps between the countries. ... Turkey is actively involved in the reconstruction of Iraq's economy. There are a lot of Turkish companies in Iraq."

He paid tribute to 300 employees of Turkish companies who lost their lives in terrorist attacks in Iraq. The country has been rocked by frequent bombings by Daesh terrorists since 2014.

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'Rosneft key to fixing Iraqi Kurdistan oil flows'

Date

3/6/2018 3:18:33 AM
 
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(MENAFN - Gulf Times) Russian state oil company Rosneft has emerged with an important role in talks between Iraq's government and Iraqi Kurdistan on resuming full oil exports from the semi-autonomous region, two industry sources said. 
The central government took charge of half of the oil fields that were under Iraqi Kurdistan's control last October, soon after the northern region voted for independence in a referendum opposed by Baghdad. 
Exports, via Turkey, were halved. 
Prime Minister Haider al-Abadi said on February 27 that an agreement had been reached at talks with the Kurdistan Regional Government (KRG), based in the city of Erbil, for full oil exports to resume soon. 
But he gave no more detail of when exports would resume and said some differences would have to be resolved later. 
The two sides are at odds over payment of Iraqi Kurdistan's debts and the transfer of funds to the region from the national budget. 
The two industry sources, who are involved in the talks, said the KRG has told Baghdad it is ready to resume full exports and transfer the funds raised to the Iraqi government on two conditions — that some oil is kept for local refining and Baghdad pays pumping tariffs to Rosneft. 
The Russian oil major took over ownership of the region's export oil and gas pipelines last year and agreed to provide it with over $2bn in loans, but the deal is not recognised by Baghdad, which says independent Kurdish oil exports are illegal. 
'Erbil offered a quick-fix solution and has written to Baghdad but has yet to hear a final answer, one of the sources said, requesting anonymity because the talks are not public. 
'In the long run, we need to agree on budget transfers and debts to find a long-lasting compromise over exports, the source added. 
Rosneft declined to comment. 
Moscow did not oppose the referendum, which the US and the European Union urged the KRG to postpone. 
Rosneft's role in the talks underlines its growing international role under chief executive Igor Sechin, an ally of President Vladimir Putin, despite Western sanctions on Russia over its role in the Ukraine conflict. 
Rosneft's role was discussed by one of the company's vice presidents, Didier Casimiro, during a visit to Baghdad in February and by Iraqi Foreign Minister Ibrahim al-Jafari in talks in Moscow last month, the industry sources said. 
Jafari said Iraq was not closing the door on any foreign oil company, and Iraq's oil minister has said Baghdad has no problem with Rosneft operating in the Kurdistan region. 
KRG spokesman Safeen Dizayee said no 'concrete agreement was in place yet but he was hopeful Baghdad would agree to the KRG-proposed plan, which included proposals on Rosneft and local refining. 
He declined further comment. 
Sources in Iraqi Kurdistan say Baghdad's takeover of half the oilfields near the Kirkuk area had cost the region nearly $3bn in lost revenues. 
The KRG also says Baghdad owes it billions of dollars in unpaid transfers from the state budget. 
Since the fall of dictator Saddam Hussein in 2003, Kurdistan has traditionally been allocated 17% of the federal budget after sovereign expenses but the regional government says it has not been receiving that amount. 
The federal government says it stopped the transfer of funds after Iraqi Kurdistan began independent oil exports which Baghdad says are illegal. 
The dispute has been complicated by the 2018 budget, approved by the national parliament on Saturday in a vote boycotted by Kurdish parties. 

http://menafn.com/1096547430/Rosneft-key-to-fixing-Iraqi-Kurdistan-oil-flows

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  • yota691 changed the title to A Russian energy delegation arrives in Baghdad
Editorial Date: 2018/4/8 18:41 • 146 times read
A Russian energy delegation arrives in Baghdad
Russian Deputy Energy Minister Kiril Moldetov, accompanied by representatives of giant oil and gas companies, arrived in Baghdad on Sunday for important meetings with the Oil Ministry leadership to overcome all obstacles faced by Russian companies operating in Iraq.
The Iraqi ambassador to Moscow, Haidar Mansour Hadi, said in a press statement, today, "Baghdad arrives today a delegation of Russian official headed by Deputy Minister of Energy Kirill Moldetov accompanied by representatives of oil and gas giants, to hold important meetings with the leadership of the Ministry of Oil to overcome all obstacles Which are faced by companies operating in Iraq, such as {LockOil}, {Gazprom}, Bash Naft »and {Rosneft}. 
This is the third visit of the Russian Deputy Minister of Energy to Baghdad since the beginning of this year, to emphasize the seriousness of the Iraqi and Russian sides to find solutions to all obstacles and problems faced by Russian companies, according to the Iraqi ambassador to Russia.
Hadi explained that the visits are "in accordance with the directives of Prime Minister Haider Abadi in a meeting he held with Russian Energy Minister Alexander Novak in Baghdad in December, which directed the formation of a joint committee between the Iraqi oil and energy ministries, at the level of agents when the latter asked support the Prime Minister in finding a solution to the problems faced by Russian companies operating in Iraq. " 
Hadi stressed that "the Iraqi Embassy in Moscow is working to follow the results of these visits and provide the necessary support to ensure its success." 
The spokesman for the Ministry of Oil Asim Jihad said in November last, that "Baghdad is not interested in the contract between the Kurdistan Regional Government and the company," Rosneft) and do not know the Ministry of Oil what the details, "stressing that" any contract concluded outside the federal government and the Ministry of Oil is illegal".
The statements came after the Jihad warned the oil ministry of all countries and international oil companies from contracting or agreement with the Kurdistan region without reference to the federal government, hours after the announcement of the Russian company Rosneft to start the implementation of agreements to divide the products of five oil blocks in the territory of the region. 
The size of the contracts of "Rosneft" with the Kurdistan Regional Government more than three billion dollars, according to the Chairman of the Committee on Finance and Economic Affairs in the Parliament of Kurdistan, Izzat Saber. 
The tension between Baghdad and Erbil, following the Kurdistan region's referendum on its independence from Iraq on September 25, led to the launch of military operations to impose law and security in the disputed areas, where Baghdad regained control of those areas, particularly Kirkuk, oil-rich in October Last one. Finished
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19 minutes ago, yota691 said:

Hadi stressed that "the Iraqi Embassy in Moscow is working to follow the results of these visits and provide the necessary support system" rel="">support to ensure its success." 

 

Yes, of course comrade... 

 

21 minutes ago, yota691 said:

The spokesman for the Ministry of Oil Asim Jihad said in November last, that "Baghdad is not interested in the contract between the Kurdistan Regional Government and the company," Rosneft) and do not know the Ministry of Oil what the details, "stressing that" any contract concluded outside the federal government and the Ministry of Oil is illegal".

 

The Russians are trying to own Iraq's oil:  Badra oil field situated in the Wasit Province of eastern Iraq is estimated to hold reserves of about three billion barrels of crude oil. The Iraqi oil field stretches about 16km long and six kilometres wide. The field is operated by Gazprom Neft, which also owns 30% stake in the project in partnership with Korean Gas (KOGAS, 

Gazprom Neft  is the fourth largest oil producer in Russia and ranked third according to refining throughput. It is a subsidiary of Gazprom, which owns about 96% of its shares.

 

http://www.gazprom-neft.com/

 

Thanks Yota.

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  • 2 weeks later...

LONDON, April 19 (Reuters) - Last October, at the height of a political crisis in Iraq’s Kurdistan region, a letter arrived at the Iraqi oil ministry in Baghdad from Igor Sechin, head of Kremlin oil major Rosneft. 

The Baghdad government was showing a “lack of constructive position and interest” about Rosneft’s offer to develop southern Iraqi oilfields, Sechin wrote in the letter, a copy of which was seen by Reuters. 

Kurdistan, a region of about 6 million people in northern Iraq, had just tried and failed to break away from the rest of the country. Baghdad had dismissed the Sept. 25 independence referendum and sent in troops to seize control of key oilfields - Kurdistan’s main source of income. 

Now Sechin, one of the closest allies of President Vladimir Putin, said that given Baghdad’s reluctance to work with Rosneft, his firm would instead do business with the Kurdistan Regional Government (KRG), which showed “a higher interest in expanding strategic cooperation”. 

Global powers including the United States and European Union, which had previously expressed sympathy with the Kurdish independence drive, would eventually reassure Baghdad they recognised its sovereignty over the whole of Iraq, including Kurdistan. 

But there was no hint of such conciliation in Sechin’s letter. Rosneft had pledged to invest billions of dollars in Kurdistan to the anger of the Baghdad government. Now, instead of backing off, it was doubling down. 

And Sechin held a stronger hand than many Iraqi officials realised, according to seven sources familiar with the matter. Days before, Rosneft had taken over ownership of landlocked Kurdistan’s oil export pipelines to Turkey from the KRG in return for $1.8 billion.

The aim of the deal for Rosneft was not only commercial, but to cement Russia’s political influence in Iraq and the Middle East, according to the Rosneft, oil industry, Kurdish and Iraqi government sources. 

Control of the pipelines has given Rosneft a central role in ongoing talks between the KRG and Baghdad aimed at resuming full oil exports, which were disrupted by the referendum and Iraqi seizure of oilfields, said the sources. 

Kurdistan has large oil reserves - possibly a third of Iraq’s total - and its exports are vital to both the regional and national economies. 

In a sign of Rosneft’s influence, Kurdish officials have said they will not restart oil flows and transfer funds raised to the Iraqi government unless pipeline transit fees are paid to the Russian oil major, according to three industry sources in Erbil and Baghdad.

Iraqi oil minister Jabar al-Luaibi effectively recognised the firm’s growing role in Kurdistan when he met Sechin’s right-hand man Didier Casimiro in Baghdad this month and said he was ready to cooperate with Rosneft “in renovating pipelines”. 

Rosneft, Sechin, the Kremlin and the Iraq’s prime minister’s office did not respond to requests for comment on this story. Sechin and the Kremlin have repeatedly said Rosneft’s projects are purely commercial, not political.

The Iraqi oil ministry declined to comment on any political aspects of the Rosneft deal.

FROM CARACAS TO NEW DELHI

Rosneft’s actions in Kurdistan, a region long allied to the United States, provide an insight into how the Kremlin uses Rosneft - and its bold chief executive - as an instrument of Russian foreign policy across the world, from Erbil to Caracas and New Delhi, the sources said. 

Many countries, including Italy and France, have used their oil majors as tools of foreign policy, but Moscow’s use of Rosneft in this way has increased significantly over the past two decades under Putin’s rule.

For Kurdistan, Russia’s growing influence represents a sharp geopolitical reversal. The region has been closely aligned to the United States since the toppling of Saddam Hussein during the U.S.-led invasion of Iraq in 2003.

Amos Hochstein, who served as the U.S. Special Energy Envoy in the Obama administration, said while Rosneft and other Russian state firms sought to make profits, they also acted as a political entities when necessary.

“They report directly to President Putin. Not every transaction that they do is political. But when Putin wants to perform a political transaction, they will definitely do it,” he told Reuters. “Russia doesn’t have a lot of tools to exercise political influence, and energy is the most efficient one”.

Baghdad, which does not recognise the deal for the pipelines, has found itself in a difficult situation.

The Iraqi government’s finances have been strained by its battle with Islamic State so it has little money to build new pipelines from Kurdistan, while it is loath to significantly disrupt the region’s oil flows, which it is banking on to deliver much-needed revenue.

 

‘SECOND FOREIGN MINISTER’

The role played by Rosneft in furthering Kremlin foreign policy is not unique to Iraq and has also played out in other parts of the world, according to the Rosneft and industry sources.

“Sechin behaves like a second Russian foreign minister. Or to put it differently, he represents the economic might behind Russian foreign policies,” said one of the industry sources, an acquaintance of the Rosneft boss. “Very often these policies are about poking the Americans right in the eye.”

In Venezuela, Rosneft lent around $6 billion to support the government. The company could end up owning large Texan refineries, currently belonging to Venezuelan state oil firm PDVSA, because the plants are collateral against the debt.

In India, Rosneft invested $13 billion in a refinery – an abnormally high price for an oil processing complex – as it sought to outbid Saudi firm Aramco and boost Russian ties with the country, traditionally allied with the United States. 

Sechin said earlier this year in a rare interview with Frankfurter Allgemeine Zeitung he was confident that both Venezuela and Kurdistan would repay their debts in full and denied the deals were political. 

Asked if he saw himself as a politician, the 57-year-old responded: “It is a difficult question. It often feels like I have already lived several different lives.

“I think the right word is a manager.”

Born in St Petersburg, he was sent in the 1980s to act as a military interpreter in Mozambique and Angola, where Moscow and Washington were fighting proxy wars. 

Putin, who had known Sechin since the early 1990s in St Petersburg, took him to Moscow when he rose to power. Sechin helped him nationalise much of the Russian oil industry and was appointed Rosneft CEO in 2012. 

MOSCOW MEETING 

The Kurds have long argued that as an autonomous region of Iraq they have the authority to make agreements with foreign companies about pumping oil in their territory. In 2014, they started independent oil exports via Turkey. 

Iraq’s central government, however, says any Kurdish deals with overseas firms, or to export oil from Kurdistan, are illegal without Baghdad’s blessing.

Russia was the only major world power that did not oppose the referendum, saying it understood Kurdish aspirations for independence. The United States, EU, Turkey and Iran all urged Erbil to cancel or postpone the vote in the weeks before it.

As U.S. State Secretary Rex Tillerson unsuccessfully tried to negotiate a delay to the independence vote, Sechin was busy negotiating the pipelines deal. 

In the days following the referendum, Kurdish officials including natural resources minister Ashti Hawrami were flown to Moscow to meet Rosneft executives and Russian foreign ministry officials, according to two of the sources.

 
On Oct. 20, at the peak of the post-referendum chaos when Iraqi Shiite militia backed by Iranian troops ousted Kurdish Peshmerga forces from Kirkuk oilfields, Sechin closed the deal.

Rosneft paid the last tranche of the $1.8 billion deal sum to Erbil, the sources said. Rosneft and Sechin, both subject to Western sanctions over Russia’s annexation of Crimea, have never disclosed how much the company paid for the pipelines.

 

https://lta.reuters.com/article/marketsNews/idLTAL5N1RI4NL?rpc=401&

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  • yota691 changed the title to Close to Putin and the Russian oil giant running back to Baghdad and heading to Kurdistan

Close to Putin and the Russian oil giant running back to Baghdad and heading to Kurdistan

Close to Putin and the Russian oil giant running back to Baghdad and heading to Kurdistan



 Twilight News    
 6 hours ago

In October, at the height of the political crisis in the Kurdistan region, a letter to the Iraqi Ministry of Oil in Baghdad arrived from Igor Sechin, President of Rosneft. 
In a letter to Reuters, Sechin wrote that the Baghdad government was showing "a lack of constructive attitude and interest" in Rosneft's offer to develop fields in southern Iraq. 
Kurdistan, home to some six million people in northern Iraq, had sought to break away from the rest of the country but the attempt failed. Baghdad rejected the September 25 independence referendum and sent troops to control important oil fields, the region's main source of income. 
Now that he is reluctant to work with Rosneft, Sechin, a close ally of Russian President Vladimir Putin, says the company will cooperate with the Kurdistan Regional Government (KRG), which has shown "greater interest in expanding strategic cooperation."
The international forces, including the United States and the European Union, which has expressed sympathy in the past with the Kurdistan Independence Campaign, the government of Baghdad, the recognition of sovereignty over the entire territory of Iraq, including Kurdistan. 
But Sechin's speech did not refer to such a recognition. Rosneft has pledged to invest billions of dollars in Kurdistan, which has angered the Baghdad government and is now, and instead of retreating, clinging to its position. 
Seven sources told Reuters that Sechin's position was stronger than Iraqi officials thought. A few days ago Rosneft acquired oil pipelines to Turkey from the Kurdistan government for $ 1.8 billion. The aim of the deal was not only commercial, but to strengthen Russia's political influence in Iraq and the Middle East, according to sources in Rosneft, the oil industry and the Kurdish and Iraqi governments.
The sources pointed out that the control of pipelines gave Rosneft a pivotal role in the ongoing talks between the government of Kurdistan and Baghdad to resume full oil exports, which were disrupted by the referendum and control of Iraq fields. 
The Kurdistan Region has huge oil reserves, which may be one-third of Iraq's total, and its exports are vital to the local economy and Iraq as a whole. 
In an indication of Rosneft's influence, three sources in the sector in Arbil and Baghdad said Korda officials said they would not start pumping oil and transferring money to the Iraqi government unless they pay a fee for the pipeline to the major Russian oil company. 
Iraqi Oil Minister Jabbar al-Allaibi acknowledged the role of the growing company in Kurdistan when he met with Didier Kasimiro, the right hand of Sischen, in Baghdad this month and said he was ready to cooperate with Rosneft in "renewing the pipes."
Sutton, the Kremlin, the Office of the Prime Minister of Iraq and Rosneft did not respond to requests for comment on the report. The Kremlin has repeatedly said Rosneft's projects are purely commercial and not political. 
The Iraqi Oil Ministry declined to comment on any political aspects of the Rosneft deal. 
From Caracas to New Delhi , 
sources said Rosneft movements in Kurdistan , which connects Old alliance in the United States shows how the Kremlin exploits Rosneft, and its chief executive Miqdaam, as an instrument of foreign policy around the world, from Erbil to Caracas and New Delhi said. 
Many countries, including Italy and France, have been using oil majors as a tool in foreign policy, but Moscow's exploitation of Rosneft has increased dramatically in the last two decades under Putin.
For Kurdistan, the growing Russian influence has a sharp geopolitical shift. The region has been linked to a close alliance with Washington since Saddam Hussein was ousted during the 2003 US-led invasion. 
Amos Hochstein, who served as energy envoy to the administration of former US President Barack Obama, said that while Rosneft and other Russian oil companies were seeking to make profits, As political entities when necessary. 
"Putin is directly following Putin, not all deals are political, but when Putin wants to conclude a political deal, of course, Russia does not have many tools to exert its political influence and energy most effectively," he told Reuters. 
Baghdad, which does not recognize the pipeline deal, has found itself in a difficult situation.
The government faces financial difficulties because of the war on the organization of the Islamic state and has only small amounts to build new pipelines from Kurdistan, while do not want to disrupt the oil flows from the region to rely on to generate revenues are in dire need.

The 
role of Rosneft in supporting the Kremlin's foreign policy is not limited to Iraq. Russia has resorted to it elsewhere in the world, according to Rosneft, and industry sources. 
"He will act as a second foreign minister or, in other words, he represents the economic power behind Russian foreign policy," said a source in the sector. 
In Venezuela, Rosneft offered loans of about $ 6 billion to support the government. The company may eventually own the Texan refineries currently owned by the National Oil Company because they guarantee the debt. 
In India, Rosneft invested $ 13 billion in a refinery, an exaggerated price for an oil complex, seeking to overcome a Saudi Aramco offer and strengthen Russia's ties with a traditional ally of the United States.
In a rare interview with Frankfurter Allgemeine Zeitung, Sechin said this year he was confident Venezuela and Kurdistan would pay their debts in full and denied the deals were political. 
"This is a difficult question, I always feel that I have lived more than a life, I think the right word is a manager," said 57-year-old Sechin, 57. 
He was born in St. Petersburg and worked in the 1980s as a military interpreter in Mozambique and Angola, where Moscow and Washington fought proxy wars. 
Putin knew about Sechin in the 1990s in St. Petersburg and took him to Moscow where his star emerged. Sechin helped him nationalize a large sector of the Russian oil industry and was appointed chief executive of Rosneft in 2012.

Moscow meeting 
Kurds have long defended the right of the region to sign agreements with foreign companies in relation to pumping oil from its territory as a semi-independent region. In 2014, independent oil exports began through Turkey. 
However, the central government in Iraq says that deals Kurds with foreign companies or export of oil from Kurdistan is contrary to the law without obtaining the approval of Baghdad. 
Russia was the only major global force that did not oppose the Kurdistan independence referendum, saying it understood the aspirations of the Kurds for independence. The United States, the European Union, Turkey and Iran urged the provincial government to cancel or postpone the vote. 
While US Secretary of State Rex Tillerson tried unsuccessfully to negotiate a postponement of the vote, he would be engaged in negotiations over the pipeline deal.
In the days following the referendum, Cord officials, including Minister of Natural Resources Ashti Hawrami, went to Moscow to meet with Rosneft executives and Russian Foreign Ministry officials, according to two sources. 
On October 20, at the height of the chaos that followed the referendum, Sean would have struck the deal. 
The sources said Rosneft paid the final installment of Erbil's $ 1.8 billion deal. Rosneft and Sechin, both under sanctions for Russia's annexation of Crimea, did not disclose how much the company had paid for the pipeline.

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  • yota691 changed the title to The Future of Iraq’s Oil Is Russian

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