The oil dispute puts Baghdad in front of “big” legal problems.. Billions of compensation for Erbil (details)

horsesoldier · April 17, 2022

7 hours ago, WheresmyRV? said:

Things are finally starting to look good with the HCL but one must ask how much longer are they going to talk and discuss this?

Hard to say how much longer they'll drag this through the weeds...these folks have cornered the market on Hot Air.

Rochester · April 18, 2022

Why now? Why did it take so long, to get to court? Most of the economy in Iraq, revolves around oil. Time was of the essence, long ago. Why the delay? And why now? This could have been settled in court, long, long ago. It could have been settled in two weeks, twenty years ago. But it wasn't. They delayed it, for decades. Why is that? Why the delay, of so, so long? 🕙

I don't know, but I'll guess: The government of Iraq finally have enough of the corruption rounded up, enough political unity to pass it and form a government and pass the oil law, the American forces are gone, this means any new oil law can be enforced at the business end of a gun, the Kurds don't have Uncle Sam protecting them anymore, so they are backed into a corner and have no choice now, but to cooperate. They were "made an offer they couldn't refuse" as Marlon Brando might put it. 🐴

Some combination of events such as these, have taken place. All this convinced the Iraqi to allow the courts to "rule" on the oil law....because the deal on oil is already essentially done. 🤝

In a sense, the Kurds were right, when they said this was a political ruling. Of course it was. It has nothing to do with actual law or respecting the Constitution. What actually happened was: The Shiites and Sunnis in the main political factions must both have agreed together beforehand, on enough things regarding oil, to support a court ruling. Everything is political and ethnic based tradeoffs, in Iraq. The rule of law means nothing. Force means things happen in countries like Iraq. The court in Iraq means nothing. It can't enforce anything. It's for show, 🎪 for making nice for the outside world. Iraq everything is about enforcing your will, on others, via consensus or brute force. Then adding the fluffiness of legality.

The fact that the elite of Iraq has allowed the Courts to play their role, pretend the Courts are the ones that have power over this, pretending as if the Iraqi elite actually respects it's own laws, is all a complete fraud. The Kurds are right about that. It's all about politics, not law. 🏛️

Even though the Kurds are right about that, it's also where the Kurds lose. I mean by that: Even though it's all about politics, this ruling by the Iraqi courts, it means enough of the Iraqi elite have bought into a common set of governing rules about oil, agreements, they can all live with, in order to give it the official seal of pretend approval, of the courts. The courts were told what to do, how to rule, once the agreement was made. That's why it took two weeks. If Iraq was actually a functioning democracy, it would have taken two weeks, not twenty years.

It took that long, for the brutality to settle down, for enough to be done that we can now have peace and prosperity. So now we make nice.🕊️

The court ruling? It's all for show, but it tells us, the deal on oil, is already largely done. The rest will be imposed on the Kurds, or else. And they know it.

So this is all good for us, in my opinion. Very, very good.

I doubt if any of us who work, will still be in our jobs, come Fall.

🎰

screwball · April 18, 2022

its all part of the GCR and move to asset backed currency.....wont be long now...sooon!!!!

Edited April 18, 2022 by screwball

NoviceInvestor · April 19, 2022

16 hours ago, screwball said:

its all part of the GCR and move to asset backed currency.....wont be long now...sooon!!!!

I love your optimism 🙂

yota691 · April 19, 2022

Legal Expert: Kurdistan Is Not Legally Authorized To Export Oil Outside Iraq

04/18/2022

87

Earth News/ Legal expert Salem Hawass confirmed today, Monday, that the Kurdistan region is not legally authorized to export oil outside Iraq.
Hawass said, in an interview with "Earth News", that "the actions of the Kurdistan region by exporting oil and its derivatives and other resources outside Iraq are (illegal)," noting that "the countries that deal with him in importing and assisting him in exporting to other countries are legally and internationally responsible."
Hawass added, “The Federal Supreme Court’s decision No. 59/Federal 2022 and its Unified 110/Federal/2019 dated 2/15/2022, which includes the unconstitutionality of the Oil and Gas Law of the Kurdistan Region, is binding on all authorities, including the authorities of the Region, as such a matter and this have previously occurred.” Acting under the government of al-Maliki when it asked the Turkish government to end the (illegal acceptance) of oil imports from the region and not to harm the relations between the two countries, and that the unauthorized import of oil into its lands is illegal.”
The legal expert asked, “Does Turkey have to (stop the import) of unauthorized oil from the central government, or should the Kurdistan region (stop its export) for violating the provisions of the constitution and the decision of the Federal Supreme Court?”
Hawass added, "The central government and the Federal Oil Ministry are required to submit an arbitration request against the Turkish Republic, other countries, and companies responsible for operating and laying oil pipelines before the competent International Chamber of Commerce, or to obtain authorization from the Ministry of Oil. Federal Court.

6ly410 · April 20, 2022

ULAIMANI— The Kurdistan Regional Government (KRG) is working to increase its natural gas production and hoping to export it via Turkey with the support of Baghdad.

An advisor to the president of the Kurdistan Region, Bewar Khnsi, told the Voice of America (VOA) website today (April 20) that the KRG needs the Iraqi government's support to export its surplus of natural gas in the future.

He added that Turkey is the "best and shortest route" for the natural gas export.

Khnsi said that the Kurdistan Region needs stability so that with the help of Baghdad, the International Oil Companies (IOCs) operating in the region could increase natural gas production.

In March, KRG Premier Minister Masrour Barzani said he was confident the Kurdistan Region would become a net exporter of gas in the near future. He said this could help make up for part of the shortfall brought on by the war in Ukraine.

In February, the Iraqi Federal Court issued a verdict saying the independent sale of the region's oil and gas is unconstitutional. A decision rejected by the KRG.

Since then, Erbil and Baghdad have held talks on the outcome of the Iraqi federal court's decision.

(NRT Digital Media)

6ly410 · April 30, 2022

We will not issue without a central agreement.. The Union calls for observing the constitution in the Iraqi oil file

Posted 6 seconds ago

https://iraqakhbar-com.translate.goog/3570504?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

news source /Baghdad today

News source / Baghdad todBaghdad today - Kurdistan

Today, Saturday, the Patriotic Union of Kurdistan renewed its categorical refusal to export gas from the Kurdistan region abroad without an agreement with Baghdad.

The leader of the Union, Ghiath al-Sorji, said in a statement to (Baghdad Today) that "the region is not a state, and we see that there is no transparency in declaring oil exports, so how do we proceed with the gas export project."

He stressed that “the Federal Court prevented the region from exporting its oil, so do we go to correct the mistake by mistake,” adding that “they are in general with the export of these wealth to strengthen the region’s economy, but taking into account the constitutional and legal aspect, in agreement with the federal government in order to prevent the waste of those wealth that belongs to everyone. Sons of the Iraqi people according to the constitution.”

And he indicated that "the natural gas in the region is located in areas with influence of the Patriotic Union of Kurdistan, so the presidency of the Union announced yesterday its rejection of any attempt to head the region by concluding external agreements on the export of gas abroad or any natural wealth without understanding with the federal government."

He explained that "the region exports oil without the agreement with Baghdad, which caused a waste of that wealth by selling it at less than international prices, and therefore the federal government is concerned with concluding the agreements

6ly410 · April 30, 2022

political news https://1-al--iraqinews-com.translate.goog/archives/257966?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_enc=1

Al-Bajari: Kurdistan exports about 650,000 barrels of oil per day

April 30, 2022 1 Views

conscious / follow

Today, Saturday, the head of my country's national bloc, Zahra Al-Bajari, confirmed that the Kurdistan region exports about 650 thousand barrels of oil per day, while noting that the sums of these quantities have not been delivered to the federal government.

Al-Bajari said in an interview that was reported by (the Iraqi Media News Agency / INA) that “despite the Federal Court’s issuance of its decision to cancel the Oil and Gas Law in the Kurdistan Region, as well as the approval of the 2021 budget law, which obligated the Kurdistan Regional Government to deliver a quantity of 250 thousand barrels per day to the federal government.” Stressing that "the presidencies in the Kurdistan region expressed their rejection of the decision, and the Kurdistan region still has not delivered oil to the federal government and has exported oil so far."

She added that "as for the exported quantities, it is not known exactly, but the sources of shipping at the loading docks in Turkey recorded an average of 430 to 450 thousand barrels per day," noting that "the quantities that are exported or that are transported through tankers across the border are unknown, but from observation The movement of tanks is expected to have a quantity of 200,000 barrels per day, and thus the quantity exported from the Kurdistan region is 650,000 barrels per day, which are unconstitutional quantities.”

And she indicated that "the amount of approximately 650,000 barrels per day is transported or loaded in Turkey or through tankers, but its revenues have not been delivered to the federal government

screwball · May 1, 2022

On 4/19/2022 at 12:56 PM, NoviceInvestor said:

I love your optimism 🙂

russia has already starter, ruble now asset backed and gold backed. Russia now selling oil and gas for ruble...no more petrol dollar ist started

yota691 · May 1, 2022

The Death of Oil Federalism? Implications of a New Iraqi Court Ruling

by Bilal Wahab

Feb 18, 2022

Also available in

العربية

ABOUT THE AUTHORS

Bilal Wahab

Bilal Wahab is the Nathan and Esther K. Wagner fellow at The Washington Institute.

Brief Analysis

The legal decision and its political fallout are threatening some of the country’s key interests, including its aspirations toward federalism, its relations with Turkey, and its ability to attract sorely needed international investment.

On February 15, the Iraqi Federal Supreme Court (FSC) decreed that the natural resource law passed by the Kurdistan Regional Government (KRG) in 2007 is unconstitutional, potentially upending the region’s oil and gas industry. Ruling that KRG oil exports and contracts with international oil companies are illegal, the court granted the federal government the right to annul such contracts, claim ownership of KRG oil, and hold Erbil liable for past oil revenues against budget allocations received from Baghdad.

In addition to hurting the KRG’s energy industry, the FSC ruling could limit federal Iraq’s too—indeed, the very concept of oil federalism is at risk. The decision also complicates the ongoing government formation process, and may even invite backlash against a judiciary that has maintained widespread respect among Iraqis.

Implications for Politics and Government Formation

Its legal soundness notwithstanding, the ruling has already sent shockwaves among the various actors maneuvering through Iraq’s volatile government formation period. The Kurdistan Democratic Party (KDP), which dominates the KRG’s energy industry and policy, believes that the FSC’s decision on a matter filed ten years ago is politically motivated—namely, an attempt to punish the Kurds for joining up with Muqtada al-Sadr, who aspires to lead a majoritarian government that would sideline his main Shia Muslim rivals. These rivals are led by former prime minister Nouri al-Maliki and have aligned with pro-Iran militias—an association that grants them significant sway over the so-called deep state, not to mention the militia drones that have been used to attack the KRG at times. Although KDP officials see Iran’s fingerprints on the FSC ruling, they are also disappointed that Sadr and speaker of parliament Mohammed al-Halbousi—the third pillar in their coalition—have done little to stop the court’s actions or the drone attacks.

Whether influenced by Tehran or not, the FSC’s foray into political questions has opened it up to criticism. Although the court previously ratified the election results—to the chagrin of Sadr’s rivals, who suffered substantial losses—it also set a two-thirds majority quorum requirement to select the next president, giving the minority a strong veto power. The oil decree could also derail Sadr’s plans if it spurs the KDP to change its mind about his coalition or his top candidate for prime minister, the incumbent Mustafa al-Kadhimi, whom the KRG has accused of failing to withdraw the case before the court ruled on it.

Meanwhile, the KDP remains estranged from its longtime partner-slash-rival in the KRG, the Patriotic Union of Kurdistan (PUK). Rather than unite and take a renewed shot at kingmaking in Iraq’s fractured politics, the KDP has used its alliance with Sadr and Halbousi to sideline the PUK. Before the FSC ruling shocked the Kurds, the KDP had been busy expending tremendous political capital to deny senior PUK figure Barham Salih a second term as president. The KRG now fears there is more blowback to come from Baghdad, including court orders affecting its control over borders and foreign representatives.

Energy Implications

The country’s petroleum industry cannot afford to ignore the FSC’s decision. To be sure, Iraq’s oil exports are not slated to change anytime soon—Turkey still allows Kurdish oil to flow to international markets, and Kadhimi has already stated that he is in no rush to implement the ruling. Moreover, oil firms with significant sunk costs and stakes in the KRG, such as Genel Energy and DNO, will almost certainly stay put.

Yet firms on their way out (e.g., Exxon) likely feel vindicated by the decision, while firms with a foot in the door (e.g., Chevron) may now be skeptical about investing further. Other ripple effects may soon become evident—companies with a stake in both federal Iraq and the KRG (e.g., Gazprom and Total) could find themselves in a precarious position; Citibank may cease processing KRG payments to oil firms; the U.S. International Development Finance Corporation might pause capital investments into Iraqi energy projects; Baghdad and Erbil may find it more difficult to cooperate on boosting their natural gas sectors, increasing power generation, and weaning the country off of overpriced Iranian supplies; and efforts to attract further international investment may be stymied given the latest evidence that the country’s energy policy is still in the making.

Another potential victim is Iraq-Turkey relations. There would not be a KRG oil industry without Turkish patronage—Ankara has allowed the Kurds to export oil via the Iraq-Turkey Pipeline since 2014, reaching an average of 430,000 barrels per day in 2021. Baghdad has taken Ankara to arbitration over this issue at the International Chamber of Commerce, seeking $24 billion in compensation. After years of delays, a conclusive hearing is set for July. The FSC ruling bolsters Baghdad’s chances of winning that arbitration, but such an outcome could sour its diplomatic and trade relations with Turkey, which have improved under Kadhimi’s watch. For its part, Ankara may view the ruling as sufficient cause to rebalance its relations back in the KRG’s favor, including increased cooperation on Kurdish gas exports.

Whither Oil Federalism?

When formulating Iraq’s post-Saddam constitution, the drafters enshrined the principles of oil federalism with two main goals in mind: staving off the reemergence of another central dictatorship, and ensuring that the country’s breadwinner industry served the public interest and remained accountable to the people. The charter called for a new oil and gas law that enshrines shared hydrocarbon management between federal, regional, and local governments.

In practice, however, Iraq still has two bifurcated energy industries—Baghdad has reverted to its old habits of centralization, the KRG is semi-autonomous after a failed shot at full independence, and neither side has taken serious action on the oil law, opting instead for temporary handshake deals. Erbil invested in building facts on the ground and reveling in the legitimacy conferred by dozens of international oil firms voting with their feet and capital. Rather than putting its energy policy on solid legal and budgetary ground, the KRG sought to evade federal reach by selling oil to traders and Israeli refineries at a discount and borrowing billions from Vitol and Rosneft.

Hence, it came as little surprise when many Iraqis outside the KRG greeted the FSC ruling with approval. Ironically, the decision also triggered noticeable schadenfreude inside the KRG, where residents have come to realize that their leaders’ questionable oil practices were fueling corruption more than jobs and public services. Meanwhile, oil nationalism now prevails in Baghdad, feeding patronage politics as the suffering public rises in protest.

Policy Recommendations

Despite tipping the scales in Baghdad’s favor, the FSC ruling does not help the government achieve a workable resolution to a complex problem, and federal authorities still cannot afford to let the KRG oil industry collapse. A more constructive ruling would have mandated the passage of an energy law within a set timeframe. Leaders on both sides have called for dialogue and mediation, but they need to keep in mind that other international events are competing fiercely for U.S. attention.

In recent months, Washington has advised its Kurdish allies to put aside their fixation on petty politics and grudges in order to find unity of purpose around forming the next government. It has not pressured them on this front, however, and U.S. officials will likely view the legal dispute over petroleum management as an internal matter. The last time Washington seriously mediated an oil deal between Erbil and Baghdad was 2008. The Biden administration has been more invested in curbing the country’s dependence on Iranian gas and environmentally damaging practices such as burning diesel for power generation and flaring.

One silver lining is that the FSC ruling has jolted some officials in Erbil and Baghdad to refocus on finding a lasting legal solution to their energy management disputes. The federal cabinet has tasked the Oil Ministry with seeking more foreign and local expertise on the issue, while the KRG has signaled that it could pass a new natural resource law. Any dialogue on these matters would be technically heavy, giving the United States an opportunity to play a deep and constructive role in ensuring that oil keeps flowing to markets—and that revenues flow to the Iraqi public rather than militias and corrupt officials.

Realistically, such dialogue will still take months or years to produce a new law, so in the interim, Washington should urge Baghdad and Erbil to reassure international oil companies. U.S. banks have a large footprint in Iraq as well and would welcome clarity about the FSC ruling. Washington may also need to rebuild trust between Erbil and Baghdad regarding their mutual interest in achieving cheaper power generation and less pollution by developing their gas sectors and connecting their power grids.

yota691 · May 1, 2022

We will not issue without a central agreement.. The Union calls for observing the constitution in the Iraqi oil file

984 Economie 04/30/2022 17:36 Baghdad today - Kurdistan Today, Saturday, the Patriotic Union of Kurdistan renewed its categorical refusal to export gas from the Kurdistan region abroad without an agreement with Baghdad. The leader of the Union, Ghiath al-Sorji, said in a statement to (Baghdad Today) that "the region is not a state, and we see that there is no transparency in declaring oil exports, so how do we proceed with the gas export project." He stressed that "the Federal Court prevented the region from exporting its oil, so should we go to correct the mistake by mistake," adding that "they are in general with the export of these wealth to strengthen the region's economy, but taking into account the constitutional and legal aspect, in agreement with the federal government in order to prevent the waste of those wealth that belongs to everyone Sons of the Iraqi people according to the constitution. And he indicated that "the natural gas in the region is located in areas with influence of the Patriotic Union of Kurdistan, so the presidency of the Union announced yesterday its rejection of any attempt to head the region by concluding external agreements on the export of gas abroad or any natural wealth without understanding with the federal government." He explained that "the region exports oil without the agreement with Baghdad, which caused a waste of that wealth by selling it at less than international prices, and therefore the federal government is concerned with concluding the agreements."

yota691 · May 8, 2022

The Iraqi Oil Minister directs unprecedented criticism of Erbil

energy

Baghdad

Mohamed Ali

May 08, 2022

The Iraqi minister accused Erbil of selling oil at lower prices (Getty)

Iraqi Oil Minister Ihsan Abdul-Jabbar confirmed that no understandings have been reached regarding unifying the oil policy between the federal government in Baghdad and the Kurdistan Regional Government , warning that the remaining option is to go to implement the previous Federal Court decision, which ruled that the procedures for the regional government regarding the oil export mechanism were unconstitutional. .

Abdul-Jabbar said, on the sidelines of a meeting of the Opinion Committee at the Ministry of Oil, which was held in Baghdad yesterday evening, Saturday, that the management of oil operations in the Kurdistan region "is incorrect, as it is incorrect that the sale is at prices much lower than the prices of the Iraqi Oil Holding Company" SOMO.

The Iraqi minister revealed that the total oil revenues from the region do not exceed 50 percent of the region's total budget allocated to it annually by Baghdad.

The Iraqi minister added, in unprecedented statements indicating a new escalation of differences, that "there is no country in the whole world that has two policies for energy management, and the effects of this difference are negative in dealing with OPEC, in addition to the fact that the multiplicity of destinations is also incorrect."

Abdul-Jabbar continued, "More than 75 days of discussion and initiatives, all Baghdad's attempts, flexibility in dealing with the region, and the desire to bridge confidence have not achieved any result. We are going towards the literal implementation of the Federal Court's decision regarding the region's oil."

The opinion panel meeting - the fourth session 2022 The most important statement of the Minister of Oil regarding the decision of the Federal Court regarding the region's oil.

Posted by the Media Office of the Minister of Oil, Ihsan Abdul-Jabbar On Saturday, May 7, 2022

And in the middle of last February, the Federal Supreme Court of Iraq ruled unconstitutional the oil and gas law followed in Erbil, independent of Baghdad, and obligated the Kurdistan Region to subject oil production in the region to the control of the Iraqi state in Baghdad, including export, production and exploration operations.

The Iraqi minister added that "the Ministry of Oil and the Board of Directors of the National Oil Company should prepare to face the upcoming challenges in implementing the Federal Court's decision," noting that "starting to implement the provisions of the decision does not mean cutting off the dialogue, and we welcome the officials of the oil file in the region, if they wish to open the discussion." one more time".

And Abdul-Jabbar stated that "the country's main resource is the Ministry of Oil, and it must be away from mood and political interference, in order to prevent the country's economic system from collapsing."

Baghdad options to deal with the file

While politicians and observers question the possibility of the authorities in Erbil complying with the ruling of the Supreme Court in Iraq, Ahmed Al-Sheikhly, an expert in energy and economic affairs in Iraq, said that Baghdad has several options to deal with the Kurdistan region’s oil file in the event the latter insists on refusing to implement The latest Federal Court decision.

Al-Sheikhly added, to Al-Araby Al-Jadeed, that among those options is freezing the payment of the region’s share of the annual financial budget, or moving to seize the region’s bank accounts in a number of regional and international banks through which oil funds are deposited, and imposing sanctions on operating oil companies. region and prosecute them on the grounds that they act in violation of the federal state authorities.”

He considered that these measures are unlikely to be resorted to by Baghdad now, as it is counting on the continuation of dialogues, and that resorting to them also means a political escalation, especially in the midst of the race to form a government and the need of the two competing camps in Baghdad for the Kurdish blocs to prevail in Parliament.

Al-Sheikhli expected that the crisis would be carried over until after the formation of the new government, and an agreement similar to the 2019 agreement might be reached, which stipulated that Erbil hand over revenues of 250 thousand barrels per day to Baghdad, which did not hold later also due to differences over checking the names and numbers of the region’s employees and accusing Baghdad Erbil. Exaggerated numbers of civil servants, as well as the Peshmerga forces.

Yesterday, Saturday, the technical advisor to the Iraqi government, Haitham al-Jubouri, expected the price of a barrel of oil in the current year 2022 budget to be around $70 a barrel, speaking of his country’s government’s endeavor to adopt what he described as a “safe price” for oil in the state’s financial budget, not the current prices based on The crisis of the Russian-Ukrainian war.

He stressed in statements to the official state television that "the government and parliament do not have the right to waive the decision of the Federal Court regarding the management of the region's wealth, and the latter must implement it and not discuss its merits or its application or not."

He considered that "the budget will not be a solution to the differences between Baghdad and the region, because its paragraphs are not fully applied, and the budget cannot be legislated without implementing the decision of the Federal Court or enacting a law in this regard (the region's oil)."

yota691 · May 8, 2022

Minister of Oil: The revenues generated from oil in the region do not exceed 50 percent of the sales value

2022-05-07 11:51

Shafaq News/ On Saturday, Federal Oil Minister Ihsan Abdul Jabbar Ismail expressed his rejection of the policy pursued by the Kurdistan Regional Government in managing the oil and gas file, describing it as "incorrect" and the state budget incurred significant financial losses.

Ismail said in an interview during a meeting of the opinion body in the ministry, followed by Shafak News Agency, that "the court's decision 59 of 2012 and decision 110 of 2019 are important because it is not true what is happening in the management of oil activity in the region that the cost of a barrel is 50 percent of the global selling cost."

He added that "what is currently sold at a price of 50 dollars per barrel in the Kurdistan Region," noting that "the net revenues that reach the region do not in any case exceed 50 percent of the value of the oil sold. in the region."

The minister also indicated that "there is no country in the world that has two energy policies, as all countries of the world have a unified policy, and it is not reasonable for a country that produces oil and gas with two policies, part of which is imported, and the other part gives initiatives to export," stressing that "it does not exist in all countries." the world ".

He added that this matter, "we found its negative effects by dealing with OPEC when Iraq was unable to adhere to the limitations of OPEC due to the region's lack of commitment, and this indicates that the Iraqi oil policy is not integrated," noting that "the lack of revenues derived from oil and gas with the presence of two energy policies in a country." One is incorrect, as the multiplicity of orientations in managing the file is incorrect. The current matter cannot continue in this way, because the energy file must be managed with one thought and integration.

The minister went on to say, "The Federal Court's decision came to explain the provisions of the constitution, and they are clear to us with regard to the energy industry, and this file cannot be managed on the basis of political mood," stressing that "an energy file cannot be formulated on the basis of trends. Political, as the energy file is a very profitable file, and it affects the foreign policy of the state, and the file of the contracting states, producers or consumers, but it is not subject to the whims of internal political trends.

Ismail went on to say, "Oil is a profitable, commercial industry that adopts the highest standards of work. Regardless of the provisions of the constitution, matters are clear, and the Federal Court's decision cut this issue off, and came in line with the correct standards in managing the energy file, which must be unified."

The minister also said, "We do not believe in holding the authorities at the center, and even our policy in the ministry does not believe in that, and that the companies are authorized to engage in oil activity, meaning that the ministry does not interfere with the activity of the Basra Oil Company or the National, and we even assured the region that the Kurdistan Oil Company will have very expanded powers ".

He added that "there is no desire for Baghdad or the Ministry of Oil to impose control over the decision, but rather Baghdad wants to regulate the oil activity and turn it into a real, transparent commercial activity that guarantees all parties their rights and is managed by a federal state-owned company, and its revenues and sale proceeds go to an account owned by the Ministry of Finance that works on Securing the region’s revenues in case the Ministry of Finance is unable to implement it.

The minister stated that "despite all these attempts and flexibility in dealing with the region, we did not get a result, and that more than 75 days of discussion and initiatives that came out of Baghdad or the Oil Ministry had no result," noting that "the opinion body in the Ministry of Oil and the Council of Ministers. The management of the National Oil Company will put it in the picture, and it seems that we are going to implement the literal application of the provisions of the Federal Court's decision."

He added, "The issue is not easy, although we have informed the region that we are ready to put in place clear work mechanisms that satisfy all parties and guarantee their rights and manage the oil activity with a standard management and a highly profitable strategy that guarantees the safety of revenues and the unity of countries towards energy."

He explained, "The result was negative, although we opened a discussion, but we are still going around in the same circle as there is mistrust, and therefore we are going to implement the provisions of the court's decision, although this will lead to internal and external challenges."

He added in his clarification that "with regard to the external challenges, they lie in the energy file and what are the implications of implementing this decision, and also that the National Oil Company (SOMO) must play its role in reducing the size of the impact on the international market," saying that "many arrows will be directed to the Ministry of Oil, and many external challenges that the Ministry of Oil will face in implementing the decision of the Federal Court.

The minister stressed that "the Ministry of Oil is responsible for its management, and the National Oil Company will manage the energy file internally in accordance with the provisions of the Federal Court's decision, and this matter leads to protecting energy security in the federal state, and returning the situation as it is."

On Tuesday (February 15, 2022) the Federal Court issued a decision that the oil and gas law of the Kurdistan Regional Government was unconstitutional, with its obligation to hand over all oil production from oil fields in the region and other areas from which the Kurdistan Ministry of Natural Resources extracted oil and handed it over to the federal government represented by the Federal Ministry of Oil And enabling it to use its constitutional powers regarding oil exploration, extraction and export.

The President of Kurdistan Region, Nechirvan Barzani, described the decision as "unconstitutional" and was based on a law of the time of the former regime, and stressed the regional government that "such an unconstitutional decision cannot be accepted."

The Kurdistan Regional Government considered the decision of the Federal Court on the oil and gas law in the region, on Tuesday, as "unconstitutional", stressing that it cannot be accepted.

And the Kurdistan Region began to sell its oil in isolation from the federal government, after a stifling financial crisis as a result of the collapse of oil prices during the ISIS invasion of areas in Iraq, in addition to the disputes with Baghdad that prompted the latter to stop paying the salaries of the region’s employees.

Baghdad says its national oil company, SOMO, is the only one authorized to sell Iraqi crude oil, but each side claims the constitution is on its side. Since the Iraqi oil and gas law remained imprisoned in the drafting stage due to differences, there was room for maneuver.

The oil file is one of the most prominent outstanding issues between Baghdad and Erbil.

Baghdad used to pay 453 billion Iraqi dinars per month (about $380 million) as salaries to the employees of the Kurdistan Region, but it stopped them after the region conducted the independence referendum on its part, and because of what Baghdad said that the region was not committed to handing over its oil in accordance with the terms of the federal budget.

After several rounds of political negotiations, the region was obligated, according to an agreement with the government in Baghdad, to hand over 250 thousand crude barrels per day of crude oil produced from its fields to the state-owned company SOMO, and hand over the revenues to the federal public treasury.

yota691 · May 8, 2022

Federal interpreted the provisions of the Constitution

Minister Ihsan Abdul-Jabbar on the 'politics' of the Kurdistan region's oil: incorrect

2022.05.07 - 19:47

Baghdad - people

On Saturday, Oil Minister Ihsan Abdul-Jabbar spoke about the decision of the Federal Court on the oil of the Kurdistan region, while noting that the management of oil activity in the region is "incorrect".

Abdul Jabbar said during the meeting of the Ministry’s opinion board, which was followed by “Nas” (May 7, 2022), that “the management of the oil activity in the region is incorrect, as it is incorrect that the sale be at prices much lower than the prices of SOMO oil,” noting that “the revenues The net amount that goes to the region’s budget does not exceed 50 percent of the value of the oil sold.”

And the minister added, "There is no country in the whole world that has two energy management policies, and this difference has negative effects on dealing with OPEC, in addition to the fact that the multiplicity of destinations is also incorrect," noting that "the Federal Court's decision regarding the region's oil came as an explanation of the provisions of the constitution, as The political mood cannot be a pioneer in the oil industry, as the oil file is very profitable and is affected by the state's foreign policy with the interacting countries."

He added, "More than (75) days of discussion and initiatives, all Baghdad's attempts, flexibility in dealing with the region, and the desire to bridge confidence have not achieved any result," noting that "we are going towards the literal application of the Federal Court's decision regarding the region's oil."

Abdul Jabbar continued, "The Ministry of Oil and the Board of Directors of the National Oil Company must prepare to face the upcoming challenges in implementing the decision, and many arrows will go to the Ministry of Oil," explaining that "the Iraqi National Oil Company will be responsible for managing the energy file internally, and the Ministry of Oil will be responsible for dealing with With the Ministry of Finance and international and foreign bodies.

The minister stated, "It seems that historical experiences have led to a rift in trust between the center and partners in the region, but we are not responsible for this problem, and we have tried to be as flexible as possible," noting that "starting to implement the provisions of the decision does not mean cutting off The dialogue, and we welcome the officials of the oil file in the region, if they wish to open the discussion again.”

And Abdul-Jabbar stated, "The main resource for the country is the Ministry of Oil, and it should be far from the mood and political interference, in order to prevent the collapse of the country's economic system," stressing that "the decision of the Federal Court came in an explanation of the provisions of the constitution and in line with the correct standards for managing the energy file, and its application will lead to the protection of Energy security in the federal state and return things to the normal course.

He continued: "We do not know what the legal basis is for one part of the country to export energy while another part of the country needs it, and this does not exist even in the old federal states," noting that "it is not fair that there is a duplicitous dealing in The same country, and all proceeds from the oil produced must go to the general budget."

Abdul Jabbar said, "Commercial activity is the basis for managing the energy file, not the desire to control the decision, and we have assured the region more than once that Baghdad has no desire to control oil activity in the Kurdistan region, but the government wants to regulate oil activity and turn it into a commercial activity." Real, clear and transparent, and we seek to lay the foundations of a strong federal state that manages its entire oil activity with a scientific standard management to achieve the highest returns in the most sustainable and lowest cost, and this is the main objective of the Iraqi National Oil Company.

The Kurdistan Regional Government announced, earlier, the continuation of negotiations with Baghdad to reach an agreement on the oil and gas file, noting that the radical solution to this file lies in the adoption of the federal oil and gas law.

A statement issued by the regional government, followed by "Nass" (April 13, 2022), said that "the Council of Ministers of the Kurdistan Region held its regular session today, Wednesday, April 13, 2022, headed by Prime Minister Masrour Barzani and in the presence of Deputy Prime Minister Qubad Talabani, and discussed a number of issues. listed on its agenda.

He added, "At the beginning of the meeting, the Deputy Prime Minister briefed about the visit of the Kurdistan Regional Government delegation to Greece and its participation in the Delphi Economic Forum and its meetings with senior Greek officials, and indicated that the Greek government expressed its willingness to cooperate with the Kurdistan Region in various fields, especially in In the tourism and investment fields, he said, "A high-ranking Greek delegation is scheduled to visit the Kurdistan Region to work on consolidating relations."

And he continued, "In the first axis of the meeting, the Minister of the Region for Negotiations with the Federal Government, Khaled Shwani, touched on the visit of the delegation of the Kurdistan Regional Government to Baghdad this week and its meeting with the Federal Ministry of Oil."

He continued, "After discussions and deliberations, the Council of Ministers commended the delegation and directed it to continue negotiations. It also stressed the constitutional rights and powers of the Kurdistan Region and its defense within the framework of the Iraqi constitution. In light of this, the Kurdistan Regional Government will continue to negotiate with Baghdad to reach an agreement on the oil and gas file." In the public interest, while meetings and negotiations are still going on, and no final agreement has been reached.

The statement added, "As the Kurdistan Regional Government considers that the radical solution to this issue lies in approving the federal oil and gas law as stipulated in the constitution, it renews its legal obligations towards the oil companies operating in the region, until a final agreement is reached in the light of the constitution in a way that protects the rights of all parties and achieves the highest benefit for the people.

In the second paragraph of the meeting’s agenda, the Council of Ministers discussed, according to the statement, the follow-up to the work mechanism within the joints of the Kurdistan Regional Government to improve government work, enhance coordination between ministries and government institutions, end red tape, follow up on ministries’ demands and needs and address them to develop public services provided to citizens and meet their demands and needs.

In the third paragraph of the agenda, the Council of Ministers approved the draft (the system of the trade name and commercial registry in the Kurdistan region) in light of Law No. (14) of 2021, which aims to reorganize the procedures for obtaining trade names and registration in the commercial registry and identifying the concerned party. The Ministry of Trade and Industry of the regional government, which will provide facilities to merchants and business owners in addition to benefiting from information technology and granting unique numbers to merchants in order to facilitate the conduct of transactions, reduce red tape and encourage commercial activity, according to the statement.

He pointed out that "in another part of the meeting, the Council of Ministers decided to approve (the new bill for the Ministry of Municipalities and Tourism in the Kurdistan Region), which was submitted by the Minister of Municipalities and Tourism Sasan Awni. According to the reasons for preparing the bill, the new law aims to make the ministry able To respond to the process of developing and expanding cities and towns in the region, and to meet the demands and needs of citizens.

And he indicated, "The draft law includes organizing the new structure of the ministry in departments, directorates, municipal and tourist institutions in governorates, independent departments, districts and sub-districts, at the level of the ministry's goals and activities, taking advantage of ten years of experience during the implementation of the current law, and it was decided that the project would be referred to Kurdistan Parliament to legislate it.”

The statement concluded by saying, "After that, the Council of Ministers approved the proposal of the Minister of Agriculture and Water Resources, Bekard Talabani, regarding raising fees, taxes and customs on importing livestock during the month of Ramadan due to the high prices of red meat in the region's markets."

yota691 · May 8, 2022

'Reservation of proceeds and freezing of the budget'

An economist lists the details of 5 options for Baghdad to deal with the oil of the Kurdistan region

2022.05.08 - 11:33

Baghdad - people

On Sunday, Professor of Economics at Basra University, Nabil Al-Marsoumi, put forward options that he said are available to Baghdad to deal with the Kurdistan region's oil file in the event that the latter insists on implementing the court's decision.

Al-Marsoumi said in his blog post, followed by "Nass" (May 5, 2022): "After the Federal Supreme Court in Iraq ruled that Kurdistan is illegal to produce and export oil and gas independently of the central government in Baghdad, and after the Kurdistan Region refused to implement the court's decision, The options available to the Iraqi government are: The first of these is the resumption of the lawsuit filed by the Oil Ministry at the International Chamber of Commerce in Paris against Turkey, which since 2014 has allowed Kurdistan to export its oil in isolation from the Iraqi central government by linking Kurdish pipelines to the Iraqi-Turkish line in the Kurdish town of Fishkhabur, which enabled the region to sell its oil And retaining its revenues without the authorization of the Iraqi Ministry of Oil, which Baghdad considered an illegal practice, prompting the Iraqi Oil Marketing Company (SOMO) on behalf of the Ministry of Oil to resort to international arbitration and file a lawsuit against the Turkish government represented by the state-owned pipeline operator BOTAŞ. , indicating that "Any ruling against Turkey will lead to obligating it to follow Baghdad’s instructions regarding marketing all Iraqi oil and loading it in Ceyhan. The court’s decision may open the door for Iraq to claim compensation, and it is known that this pipeline currently transports about 500,000 barrels per day, including 400,000 barrels per day of Kurdistan oil and 100,000 barrels per day. barrels per day of Kirkuk crude.

He added that "the second option is to seize the funds of Kurdistan's oil revenues, which are in international banks, which will put the regional government in a more difficult financial situation than it is."

As for the third option, according to the economist, it is: "Stop sending any money to Kurdistan from the general budget until the Federal Court's decision is implemented."

Al-Marsoumi also indicated that "the fourth option is towards entering into direct negotiations with foreign companies operating in the region for the purpose of reviewing the contracts signed between them and the region and amending them in the interest of both parties, provided that the Ministry of Oil, through one of its companies, manage these contracts, and if the companies refuse, it is possible Demanding Western and Arab countries that have companies operating in the Kurdistan region to implement legal measures against these companies, which may cause urgent losses to the shares of these companies in the global stock exchange.

And the fifth option, according to the economics professor: "Prosecuting companies that are currently working on laying a pipeline to transport gas from Kurdistan to Europe via Turkey for inconsistent with the decision of the Federal Court that canceled the Oil and Gas Law of 2007 in Kurdistan."

And Oil Minister Ihsan Abdul-Jabbar spoke, earlier, about the decision of the Federal Court on the oil of the Kurdistan region, while noting that the management of oil activity in the region is “incorrect.”