Moscow announces its position on the project to export Iraqi gas to Europe via Turkey

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Moscow announces its position on the project to export Iraqi gas to Europe via Turkey

2022.05.12 - 11:32

 

Baghdad - people  

The Russian ambassador to Iraq, Elbrus Kutrashev, announced on Thursday his country's position on exporting gas from the Kurdistan region to Turkey and Europe instead of Russia, as presented by the recent round of talks with Kurdistan Regional Government Prime Minister Masrour Barzani in Dubai.  

  

 

Kocherev said, during an interview with our colleague "Preston Othman", followed by "NAS" (12 May 2022), that "of course, we have no objection, and it is the sovereign right of the Iraqi authorities, including the Kurdistan Regional Government, to do what they want to do with its gas, Russia does not have the right to stand by or support it, we have many partners and markets in the world, and if the Europeans decide to change their gas sources, this is their decision and they bear the consequences."  

In response to a question about whether Russia supports the plan to export natural gas to the Kurdistan Regional Government, Kocherev stressed, "If they want to support us, we are ready to support it, but as I said, Russia has nothing to do with it and we don't even have the right to think about it."  

He added, "I am aware of the news and rumors that are being spread in the media about us, which we claim to oppose, but this is not true, politically we have no problem and commercially it can help Russian companies in laying gas pipelines and delivering it to the markets if those Russian companies see an economic interest in that." This depends on their technical and economic assessment, because the political ban does not exist."  

[Officiallytook]

Silk roads almost back... Horizons looking closer and closer

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Significant changes in the global oil market and the Ministry of Oil “hiding” information from public opinion.. 70% of Iraqi oil exports are at risk

2022-05-14

Yas Iraq: Baghdad

 

The Ministry of Oil is hiding from public opinion and the political and specialized circles in general, major changes taking place on the global oil markets, as information indicates major changes in the market shares of oil around the world, which will lead to Iraq losing about 70% of its oil exports to Asia, with a European desire to withdraw these Quantities, but the Ministry of Oil does not reveal to the public, parliament and public opinion, whether there are plans for how to market these quantities of oil to Europe, which is a new market for which Iraq is not accustomed to marketing large quantities, as two-thirds of its exports were going to Asian markets.

And the S&P Global Commodity Insights platform quoted officials in the Iraqi Oil Marketing Company (SOMO), that Iraq is redirecting crude flows from its primary customer base in Asia to refineries in Europe, where officials indicate that “there is greater European interest for us now that after That China and India buy more Russian oil.”

"We are now seeing adjustments in our traditional crude flows. Refineries in northwest Europe are looking more at our crudes," the official added, stressing the similarities in quality between Iraqi crude and Russian Urals crude.

Europe is particularly dependent on Russian oil and was importing about 2.7 million barrels per day of crude oil and another 1.5 million barrels of products, mostly diesel, before the invasion of Ukraine.

On May 4, the European Union said it intended to phase out Russian oil imports by the end of the year. But due to self-sanctions, some European refiners and independent traders have already reduced seaborne flows of Russian Urals crude, heavy fuel oil, gas oil and naphtha to the region.

The average Iraqi crude oil exports to Europe amounted to 528 thousand barrels per day so far in 2022, compared to 439,000 barrels per day and 431,000 barrels per day in 2021 and 2020, respectively, which means that 16% of Iraq’s oil exports went to Europe this year.

Iraq exports 3.3 million barrels per day, of which 2.3 million barrels per day go to China and India, but with the largest Asian buyers starting to go towards buying Russian oil, 70% of Iraq's oil exports are at risk.

It is unknown whether the loading of these quantities of Iraqi oil will go smoothly to Europe instead of Asia, especially since the Kirkuk pipeline to the Turkish port of Ceyhan, closest to Europe, has a capacity of only 100,000 barrels, or 4% of the total quantities that must be exported to Europe, which means that the loading will be through ports and sea ports, but the ships this time will head west, after they used to go east towards the Asian market with these loads.

So far, the Ministry of Oil has not announced any plans on how to market these quantities to Europe, and whether European demand for Iraqi oil is equal to what the Asian markets will leave without buying Iraqi oil.

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Iraq storms the European market to compensate for Russian oil

energy
Editor
   

Economy News-Baghdad

Officials at the Iraqi Oil Marketing Company (SOMO) confirmed today, Saturday, that Iraq is redirecting crude flows from its primary customer base in Asia to refineries in Europe and may soon be able to provide more volumes with the modernization of the loading port .

 

" There is more European interest in us now that China and India are buying more Russian oil, " one of the officials told S&P Global Commodity Insights .

This is a small change in policy for Iraq, which in recent years has allocated about 70% of its oil to Asian buyers, supporting the push of the second-largest producer in the Organization of the Petroleum Exporting Countries to prioritize sales in the most lucrative market .

 

But countries such as China and India have renewed their appetite for Russian oil, which has been trading at record low prices since the invasion of Ukraine .

Meanwhile, Europe, which was the largest buyer of Russian crude, is looking for alternatives . According to Shafak News.

 

"We are now seeing adjustments in our traditional crude flows. Refineries in northwest Europe are looking more at our crudes," the official added, stressing the similarities in quality between Iraqi crude and Russian Urals crude .

 

European oil traders echoed these comments, saying that Iraq's medium-grade Basra had emerged as the preferred crude for refineries in the Mediterranean and Northwest Europe that had shifted from the Russian Urals .

 

A crude oil trader said: “Crude oil like Iraq’s Basra Medium and Basra Heavy is entering Europe well, but in Asia it is being replaced by the Urals, and Chinese demand is not very strong. ”

 

A second crude oil trader said, "Basra crudes will probably benefit from punishing Russian crude ."

Both Basra Heavy and Basra Medium are loaded from the country's southern oil export terminals and single-point marinas in the Persian Gulf .

 

Dealers said Basra Medium and Basra Heavy's official selling prices to Europe for June were down $1.90 a month on a monthly basis, making them more attractive and a spillover effect of the significant drop in the value of the Urals since the invasion of Ukraine .

 

Europe is particularly dependent on Russian oil and was importing about 2.7 million barrels per day of crude oil and another 1.5 million barrels of products, mostly diesel, before the invasion of Ukraine .

 

On May 4, the European Union said it intended to phase out Russian oil imports into the trading bloc by the end of the year. But due to self-sanctions, some European refiners and independent traders have already reduced seaborne flows of Russian Urals crude, heavy fuel oil, gas oil and naphtha to the region .

 

Iraq expects more of its crude to flow to Europe in the coming months, as refineries look to make up for the shortfall in Russia .

 

SOMO officials said volumes could be boosted with one-point repairs at the Basra port that are due in June and, when completed, would add 100,000 barrels per day of export capacity .

 

Officials said current exports from Basra were set at 3.27 million barrels per day

Refineries in Europe are often complex and dependent on a diet of raw materials such as the Russian Urals, Iraq's Basra Medium, Basra Heavy, and Saudi Arabia Light.

Iraq's crude oil exports to Europe have averaged 528,000 bpd so far in 2022 compared to 439,000 bpd and 431,000 bpd in 2021 and 2020, respectively, according to data from commodity intelligence firm Kpler.

 

The Russian Urals are classified as medium pH, with a specific gravity of about 31-32 API with a sulfur content of 1.7% .

 

This makes it very similar in quality to other medium sour crudes such as Basra Medium, Saudi Arabian Medium, Al Arabiya Heavy, Iranian Heavy, Brazilian Meru and Omani Crude Blends.

 

 

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Added 05/14/2022 - 10:20 AM