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"SOMO" informs international companies not to buy crude oil from Kurdistan


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"SOMO" warns of legal and punitive measures against buyers of oil from the Kurdistan region
 

Baghdad - people  

The Iraqi Oil Marketing Company (SOMO) has threatened new legal measures against buyers of crude oil from the Kurdistan region, according to a letter dated August 23 seen by Reuters.  

  

 

The speech is the latest in a series of moves by the Iraqi Oil Ministry to try to control oil revenues from the Kurdistan region.  

  

The letter stated, "Strict legal action will be taken against all concerned parties, in order to prevent the loading of those illegal shipments coming from Iraq, including but not limited to shipments coming from the Kurdistan region.  

“The Iraqi Federal Ministry of Oil and SOMO as its subsidiary reserves the right to take all legal action against any dealer or buyer of smuggled crude oil who is proven to have specifically loaded Iraqi oil from Turkey’s Ceyhan Oil Terminal, without the express endorsement of SOMO.”  

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In the latest move to implement the Federal Court's decision, SOMO threatens to take firm legal action against any deal to sell Kurdistan oil without official permission from Baghdad.
Thursday 08/25/2022
 
 

Baghdad warns companies against "smuggling" oil through Ceyhan port in particular

Baghdad warns companies against "smuggling" oil through Ceyhan port in particular

BAGHDAD - The state-owned Iraqi Oil Marketing Company (SOMO) has threatened new legal action against buyers of crude oil from the semi-autonomous Kurdistan region, according to a letter dated August 23.
The letter is the latest in a series of moves by the Iraqi Oil Ministry to try to control oil revenues from the Kurdistan region.
And the message, which was quoted by Reuters news agency, excerpts from, stated that "firm legal measures will be taken against all concerned parties, in order to prevent the loading of those illegal shipments coming from Iraq, including but not limited to shipments coming from the Kurdistan region."
"The Iraqi Federal Ministry of Oil and SOMO as its subsidiary reserve the right to take all legal measures against any dealer or buyer of smuggled crude oil who is proven to have loaded Iraqi oil from Turkey's Ceyhan Oil Terminal, specifically, without express endorsement from SOMO," SOMO added.
This move mimics a similar move by the Iraqi Oil Ministry in 2014 to prevent ships carrying crude from the Kurdistan region from unloading cargo at foreign ports.
A ruling by Iraq's Federal Supreme Court in February considered the legal foundations for the oil and gas sector in the Kurdistan region unconstitutional.
The Kurdistan Regional Government has repeatedly rejected the ruling. The region's prime minister last month described its decision as a "political" and unconstitutional ruling.
Iraq made several attempts to implement the Federal Court ruling. He summoned many companies operating in Kurdistan to commercial court sessions, which were repeatedly postponed, and introduced a policy to blacklist oil field service companies if they did not withdraw from the Kurdistan region.
The oil dispute between the two parties was renewed at the peak of prices and at a time when Iraq was seeking to increase its production and develop the oil infrastructure.
In May, the Iraqi Oil Ministry asked oil and gas companies operating in the Kurdistan region to sign new contracts with "SOMO" instead of the regional government.
Prior to that, Oil Minister Ihsan Abdul-Jabbar said that the Oil Ministry would start implementing the Federal Court ruling after talks with the KRG failed.
The oil file and the management of oil wealth is considered one of the most prominent outstanding issues between Baghdad and Erbil for years, and the events of 2017 reflected the state of tension between the two parties, forcing the federal government to send military forces that regained control of the oil fields in Kirkuk and forced the Kurdish forces to leave after a referendum on the independence of the Kurdish region The majority voted for secession.

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So they're getting their fair share, yet they want more? If this ain't the sign of crookedness lol... but anyway I see they're tackling reconstruction of the rest of these cities that got destroyed so I guess that's a good sign, I imagine once everyone/where is up and running they will make the switch on the currency... but what do I know...this is Iraq

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 2022-08-26 08:54
 

Shafaq News/ The Ministry of Natural Resources in the Kurdistan Regional Government described, on Friday, the threat of the Federal Oil Marketing Company "SOMO" to pursue buyers of the region's oil as "part of the political conflict" in the country.

And the Kurdistan Ministry considered, in a statement today, that "the (SOMO) message contains misleading information."

Natural Resources said, "The (SOMO) company will impede the ongoing dialogues between Erbil and Baghdad," with regard to the oil file.

The ministry confirmed the continuation of the production and sale of crude oil.

SOMO threatened new legal measures against buyers of crude oil from the region, according to a letter dated August 23.

The letter is the latest in a series of moves by the Iraqi Oil Ministry to try to control oil revenues from the region.

A ruling issued by the Federal Supreme Court of Iraq in February considered the legal foundations for the oil and gas sector in the Kurdistan Region unconstitutional. The regional government has repeatedly rejected the ruling.

And the letter from (SOMO) company stated that "firm legal measures will be taken against all concerned parties, in order to prevent the loading of those illegal shipments coming from Iraq, including but not limited to shipments coming from the Kurdistan Region."

"The Iraqi Federal Ministry of Oil and SOMO as its subsidiary reserve the right to take all legal actions against any dealer or buyer of smuggled crude oil who is proven to have loaded Iraqi oil from Turkey's Ceyhan Oil Terminal, specifically, without SOMO's express endorsement," the letter added.

This move mimics a similar move by the Iraqi Oil Ministry in 2014 to prevent ships carrying crude from the region from unloading cargo at foreign ports.

Iraq made several attempts to implement the court's ruling issued in February. He summoned many companies operating in Kurdistan to commercial court sessions, which were repeatedly postponed, and introduced a policy to blacklist oil field service companies if they did not withdraw from the Kurdistan region.

The latest blacklisted oilfield services companies are Weatherford International and Dubai-based OilServe, according to a source familiar with the matter.

A Weatherford spokesperson commented, "Weatherford has a long and rich history of operations in Iraq, which supports its role as an important player in the global energy economy. We remain committed to the region and continue to operate without interruption and in full compliance with all domestic and international laws." Oilserve did not respond to a request. to comment.

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ERBIL — The Kurdistan Regional Government (KRG) has "strongly" condemned a letter recently issued by Iraq's State Oil Marketing Organization (SOMO) that threatens "legal action" against buyers of crude oil produced in the Kurdistan Region.

The KRG said SOMO’s letter "is nothing more than another drip in a stream of disinformation published by federally-owned state organisation as part of a political fight, a fight which sadly includes an attempt by certain parties in Baghdad to undermine the Federal Constitution of Iraq."

It is also intended to undermine the continuing good-faith dialogue between Erbil and Baghdad, which seeks to and agree a plan for the future management of Iraq’s energy resources and revenues in line with the Federal Constitution.

Below is the full statement by the KRG:

The Kurdistan Regional Government strongly condemns the letter issued on August 23, 2022, by Iraq’s State Oil Marketing Organization (SOMO) that threatens legal action against buyers and traders of crude oil produced in the Kurdistan Region.

SOMO’s letter is nothing more than another drip in a stream of disinformation published by federally-owned state organisation as part of a political fight, a fight which sadly includes an attempt by certain parties in Baghdad to undermine the Federal Constitution of Iraq. The letter is also intended to undermine the continuing good-faith dialogue between the Kurdistan Regional Government and the Federal Government. That dialogue seeks to and agree a plan for the future management of Iraq’s energy resources and revenues in line with the Federal Constitution.

SOMO’s letter relies on a politically motivated opinion by a panel of lawyers pretending to be the “Federal Supreme Court of Iraq”.

But there is no Federal Supreme Court and there is no binding decision. This is because the Federal Supreme Court has not yet been formed in accordance with the Federal Constitution. The panel in Baghdad therefore is not the FSC and the opinions of the panel of pretenders’ carry no legal weight in Iraq or elsewhere. To suggest otherwise, as SOMO and others in Baghdad do, is to further a deception. It is a deception that undermines the Federal Constitution and threatens the republic. This political assault on the Federal Constitution is motivated by a desire to return Iraq to the centralisation of unconstrained power from a horrific past era.

Article 92(2) of the Constitution requires that the Iraqi Council of Representatives enact a law – by a two-thirds majority – to determine the workings of the Federal Supreme Court. No such law has been enacted. Iraq therefore does not have a constitutionally established Federal Supreme Court. The panel of lawyers that issued the 15 February 2022 opinion has no constitutional authority to do so.

The Kurdistan Regional Government has neither acquiesced nor stood aside. On 15 February 2022, the day of the so-called Federal Supreme Court decision, the Government issued a statement describing the decision as unjust, unconstitutional, and illegitimate.

On 28 February 2022, a joint statement was issued from Kurdistan Region Presidency, from the Kurdistan Region Parliament, and from the Judicial Council of the Kurdistan Region of Iraq. The statement was supported by KRG’s Prime Minister. The statement described the so-called Federal Supreme Court decision as unconstitutional and called for the establishment of a legitimate Federal Supreme Court in accordance with Article 92 of the Constitution. Similar statements followed in March.

On 4 June 2022, the Judicial Council of the Kurdistan Region of Iraq issued a further statement setting out that Iraq does not have a constitutionally established Federal Supreme Court, that the body that issued the 15 February 2022 decision had no authority to do so, that the management of all of the oil and gas fields of the Kurdistan Region fell within the exclusive jurisdiction of the Government, and that Kurdistan Oil and Gas Law was fully in accordance with the provisions of the Federal Constitution. The Judicial Council is an independent body made up of leading jurists in the Kurdistan Region.

On 5 June 2022, the Kurdistan Regional Government started proceedings before the courts of the Kurdistan Region against Federal Minister of Oil. It seeks a comprehensive declaration of the constitutionality of the Kurdistan Oil and Gas Law and related matters and of the illegitimacy of opinion of the panel pretending to be the Federal Supreme Court.

Neither SOMO nor any other spokesman in Baghdad has even attempted to justify the legitimacy the of the so called Federal Supreme Court. This is because the Federal Supreme Court is obviously illegitimate. This inconvenience is understood in Iraq, but perhaps less understood outside of Iraq. Given the fatal weaknesses in Baghdad’s institutions, and the fatal weakness in Baghdad’s arguments, Baghdad’s strategy is to create a story to create market uncertainty outside of Iraq in respect of the Kurdistan Region. The statements and threats from Baghdad should be understood as such and should be dismissed. The truth is found clearly and unequivocally in the Federal Constitution and the hope of the Iraqi people that Iraq remains a truly federal republic.
The rights of the Kurdistan Region to develop and produce hydrocarbon resources within the boundaries of the Region continues as provided by the Federal Constitution and Kurdistan law. Oil produced in the Kurdistan Region continues to be produced, to be shipped, to be sold, to be refined, and to be consumed. Investment interest remains and production is expected to increase.

The Kurdistan Regional Government remains fully committed to the process of mediation and dialogue to resolve outstanding differences with the Federal Government on the management of oil and gas in Iraq. Those differences, like any other differences of opinion, must be resolved in accordance with the Federal Constitution and the constitutional rights of the people of the Kurdistan Region and all of Iraq. Until that time, the Kurdistan Regional Government will continue to take vigorous steps to defend those rights.

26 Aug 2022
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Kurdistan government: Our oil production has not been affected by Baghdad's attempts to control its revenues
 

Baghdad - people  

On Friday, the Kurdistan Regional Government confirmed that its oil production and trade were not affected by Baghdad's attempts to control its oil revenues.  

  

 

The government said in a statement, (August 26, 2022), "Oil is still being produced, shipped, sold, refined and consumed in the Kurdistan region. There is still interest in investment and it is expected to increase production ."  

  

The Kurdistan region produces about 450 thousand barrels per day of crude, mostly for export .  

  

Iraq has sought several times to implement a ruling issued in February by its Federal Supreme Court that the legal foundations of the oil and gas sector in the Kurdistan region are unconstitutional .  

  

In the latest move, the Iraqi Oil Marketing Company (SOMO) said in a letter that it will prevent the loading of illegal shipments from Iraq, including those from the Kurdistan region .  

  

It added that it would take legal measures against traders or buyers of Iraqi oil without obtaining its consent .  

  

In its statement on Friday, the Kurdistan Regional Government condemned this message, which it said undermines the dialogue between its government in Erbil and Baghdad .  

  

The statement reiterated the Kurdistan Regional Government's rejection of the Supreme Court's decision, saying that it does not recognize the legitimacy of the court .  

  

The statement stated that the differences between the Kurdistan Regional Government and the federal government "must be resolved in accordance with the federal constitution and the constitutional rights of the people of the Kurdistan region and all of Iraq."  

  

Until then, she added, "the Kurdistan Regional Government will continue to take resolute steps to defend these rights."  

 

  

 

  

  

  

"Reuters"  

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August 28, 2022
 
 
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On Sunday, a member of the Patriotic Union of Kurdistan, Muhammad Al-Haj Omar, confirmed that his party does not have a single employee in the Ministry of Natural Resources in the Kurdistan Regional Government.

Al-Hajj Omar said that "the management of the oil file in the regional government is confined to the hands of the Kurdistan Democratic Party, specifically to the head of the Kurdistan Regional Government, Masrour Barzani."

He added that "the National Union has no involvement in managing the oil file at all, but on the contrary, we are with a comprehensive dialogue with the federal government to end the problems in this file in accordance with the constitutional mechanisms in place."

Al-Hajj Omar pointed out that “regarding natural gas, we refused to export it earlier, and we believe that signing contracts with companies for a long-term period harms the economy of Kurdistan and the wealth of citizens.”

The Patriotic Union of Kurdistan refuses to export natural gas from the Kurdistan region of Iraq, especially since the largest proportion of gas is located in Sulaymaniyah.

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(Document) Iraqi National Oil Company directs companies operating in the region to abide by the decisions of the Federal Court
3621.jpg
 
   

Economy News _ Baghdad

The Iraqi National Oil Company (NOC) has directed oil companies operating in the Kurdistan Region to implement the decisions of the Federal Supreme Court No. 59 of 2012.
The decision included the submission of a pledge not to work in oil projects located within the Kurdistan region contrary to the decisions of the Federal Court, and in the event of existing contracts or projects, your companies pledge to terminate them within a period of (three months) from the date of notification of this decision.
The document, obtained by "Economy News", added that if the companies do not comply with the decisions, the company will be blacklisted and attended to deal with them.

 

3623.jpeg


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Added 28/08/2022 - 2:23 PM
Updated 2022/08/28 - 6:50 PM

 
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Union: The file of the Kurdistan Oil Administration is in the hands of this body

Union: The file of the Kurdistan Oil Administration is in the hands of this body

Information/Sulaymaniyah...
Patriotic Union of Kurdistan (PUK) member Mohammed al-Haj Omar confirmed on Sunday that his party does not have a single employee in the Ministry of Natural Resources in the Kurdistan Regional Government.

 

Haj Omar told Al-Maalouma that "the management of the oil file in the KRG is confined to the KDP, specifically to the President of the Kurdistan Regional Government Masrour Barzani."
He added that "the National Union has no involvement in the management of the oil file at all, but on the contrary we are in favor of a comprehensive dialogue with the federal government to end the problems with this file in accordance with the constitutional mechanisms followed."
"Regarding natural gas, we have previously refused to export it, and we believe that signing contracts with companies for a long term harms Kurdistan's economy and the wealth of citizens," Haj Omar said.
The PUK refuses to export natural gas from the Kurdistan Region of Iraq, especially since the largest proportion of the gas lies in Sulaymaniyah. End/25 GS

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The US Consulate in Erbil calls for 'respect' of the Kurdistan region's oil contracts
 

Baghdad - people  

The US Consulate in Erbil called, on Wednesday, to respect the oil contracts in the Kurdistan region.  

 

  

  

The consulate stated in a statement, published on its official page, on “Facebook”, and followed by “Nas” (August 31, 2022), “We support reforms that improve efficiency and sustainability in the electricity sector, as well as efforts to reduce greenhouse gas emissions in the electricity sector.” oil and gas".  

  

She noted, "We support the Kurdistan Regional Government's dialogue with the Government of Iraq on hydrocarbons, and we agree on the need to respect the current oil contracts."

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Oil companies operating in Kurdistan seek US help over Baghdad-Erbil dispute
 

Baghdad - people  

Oil companies operating in Iraq's Kurdistan region have asked the United States to help defuse tension between Iraq's central government and the autonomous region, three sources said and a letter seen by Reuters showed.  

  

  

The sources stated that the matter requires intervention to ensure the continued flow of oil from northern Iraq to Turkey, so that Ankara does not have to increase its oil imports from Iran and Russia.  

  

She said the Kurdistan region's economy is vulnerable to collapse if it loses its oil revenues.  

  

The atmosphere was tense in February when the Iraqi Federal Court ruled that a law regulating the oil sector in Kurdistan was unconstitutional.  

  

In the wake of the ruling, the federal government, which had long opposed allowing the KRG to independently export oil, intensified its efforts to control oil export revenues from Erbil, the regional capital.  

  

Prior to the ruling, according to a copy of the letter seen by Reuters, Dallas-based HKN Energy wrote to US ambassadors in Baghdad and Ankara in January seeking mediation in another 2014 case related to the Iraq-Turkey pipeline.  

  

Baghdad accuses Turkey of violating the agreement on the pipeline by allowing Kurdistan's exports, which it considers illegal, to pass through the pipeline to the Turkish port of Ceyhan.  

  

The Turkish Energy Ministry did not respond to a request for comment.  

  

The last hearing in the case was held in Paris in July, and the International Chamber of Commerce will issue a final decision in the coming months, according to the Iraqi Oil Ministry.  

  

It is still not clear what steps Turkey might take if a ruling is issued in favor of Iraq, which is likely, according to three sources with direct knowledge of the matter.  

  

At least one other oil company has made high-level contacts with four governments directly or indirectly involved, urging them to intervene, a representative of the company, who requested anonymity, told Reuters.  

  

Other companies operating in Iraqi Kurdistan, such as Genel Energy and Chevron, declined to comment on the arbitration case, and DNO and Gulf Keystone did not respond so far to a request for comment.   

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How will stopping Kurdistan's oil to Turkey affect the region's economy?
 

Baghdad - people  

A Reuters report highlighted the implications if the flow of Kurdistan's oil to Turkey stopped, noting that this would negatively affect the region's economy.   

  

  

And the agency said in a report followed by "NAS" (September 2, 2022): " Any stop to the flow of oil through the pipeline connecting Iraq and Turkey would lead to the collapse of Kurdistan's economy in addition to pushing Turkey to obtain more crude from Iran and Russia, according to a letter (( HKN) to representatives of the United States.  

Neither the Kurdistan Ministry of Natural Resources nor the Oil Ministry in Baghdad responded to a request for comment.  

  

And the pipeline between Iraq and Turkey can pump up to 900,000 barrels per day, representing approximately one percent of the total daily global demand, from both the Iraqi Oil Marketing Company (SOMO) and the government of Iraqi Kurdistan.  

  

However, 500 thousand barrels are being pumped from the fields in northern Iraq, which will find it difficult to increase supplies unless there are new investments.  

  

Analysts expect companies to withdraw from Kurdistan if conditions do not improve. Many foreign companies have already lost interest.  

  

These companies were introduced to Kurdistan during the era of former President Saddam Hussein, when the region was seen as more stable and secure than the rest of Iraq.  

  

As security deteriorated, the few remaining companies, mostly small and medium-sized ones, also sought a US role to help deter attacks on energy infrastructure as well as enhance security in general.  

  

According to people with direct knowledge of the matter, the companies backed letters sent by members of Congress to Secretary of State Anthony Blinken in August. The sources requested anonymity due to the sensitivity of the matter.  

  

The letters demanded high-level consultations between Erbil and Baghdad to secure the stability of Kurdistan and stave off Iranian interference in Iraq.  

  

American interest waned  

US State Department spokesman Ned Price said on August 16 that the differences between Baghdad and Erbil are differences between the two sides, but that the United States could encourage dialogue.  

  

In July, the US State Department summoned the American legal consultancy firm (Vinson & Elkins), which represents the Iraqi Oil Ministry in Baghdad, to provide a briefing in Washington regarding the dispute over the Iraq-Turkey pipeline. According to an informed source, two more briefings are likely to be given in Baghdad and Washington.  

  

James Loftis, partner in Vinson & Elkins, said, "Baghdad will certainly welcome any US statements by the leadership of Iraqi Kurdistan that it must abide by the Iraqi constitutional measures related to the oil sector in Iraq."  

  

The US State Department declined to comment, but industry experts do not recommend US intervention or rule out that it would work if it did.  

  

"The United States has withdrawn its hand from Iraq over the past decade. Any pressure from Washington or others will not resolve the differences between Baghdad and the Kurds," said Raad al-Qadri, managing director of energy, climate and sustainability at Eurasia Group.  

  

A Kurdish official told Reuters in August that the Kurdistan government had asked the United States to support its defense capabilities, but said it was not counting on that because the United States' top priority is to revive the nuclear deal with Iran.  

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Source : Al-Nahar Al-Arabi
The Baghdad and Erbil conflicts are a major factor in the decline of the oil sector in the Kurdistan Region of Iraq.
The Baghdad and Erbil conflicts are a major factor in the decline of the oil sector in the Kurdistan Region of Iraq.
 
In what may constitute a qualitative change for the economic, social, and even political conditions in the Kurdistan region, “resolute” investigations and media reports indicated the “deterioration” that may affect the oil sector in the Kurdistan region in the foreseeable future, due to the security, legal and logistical difficulties that the sector suffers from. Investments are steadily declining, as a result of the political and legal conflict between the regional government and its central counterpart, which may force the ruling authorities in the region to resort to new strategic political and economic options, to compensate for the dwindling financial resources.
 
In details, the region's oil production has fallen by half because the decline in investments prevents the addition of new explorations, or the development of existing fields, which are currently suffering from the effects of mistrust in the region's oil sector. 
 
According to a report by "Reuters", the Kurdistan region's production was more than 550,000 barrels of oil on a daily basis, about 85 percent of which is exported through the Turkish port of Ceyhan, where sales of the exported quantities constitute nearly 90 percent of the public treasury's resources. However, the current path of the factors surrounding the process of oil production and export in the region indicates that this amount will be only about half (240 thousand barrels) by the year 2027, and features of this are beginning to appear now, as the quantities of production do not currently exceed 450 thousand barrels, according to official figures.  
 
There has been a political and legal dispute for years between the regional government and its central counterpart, due to different interpretations of the Iraqi constitution, which did not clearly regulate the rights of exploration and extraction between the various authorities in the country, as the central government claims that the constitution stipulates that oil and gas are the collective property of all the Iraqi people. Consequently, the central government has exclusive authority to extract and export oil derivatives in various regions of the country, including the Kurdistan region. 
 
The Kurdistan Regional Government insists that Articles 111-112 of the Iraqi constitution grant the regional authorities clear rights to explore and invest in any oil fields after 2005, and consequently it exercises a clear constitutional right. The constitutional / federalism of the region, especially with regard to the decision of the Iraqi Federal Court issued a few months ago, which stipulated the “illegitimacy” of all contracts concluded by the region’s government with international oil companies, demanding the region’s government to hand over all fields and tools to the central authorities. 
 
%D8%AD%D9%82%D9%84%20%D8%A3%D8%AA%D8%B1%
 
unfavorable struggles
The researcher specializing in oil affairs, Hemin Salmani, explained to An-Nahar Al-Arabi that the oil sector is similar to its banking counterpart, as trust is the essence of the ability to possess sustainable development. He said: "It is true that the Kurdistan region has a general security and development significance that is superior to that of the rest of Iraq, which has contributed to many international oil companies overlooking some details of the differences between the central government and its counterpart in the region, but the decision of the Federal Court, and dozens of lawsuits and political moves The economic and economic practices that the central government has practiced since that time have created a collective sense that the sector will suffer from growing conflicts in the coming years.”
 
He added: "Consequently, the investments will not be in a safe and sustainable environment, especially since the Iraqi central government has an added value in terms of political and legal legitimacy, in addition to its huge oil wealth that is many times that of the Kurdistan region, and thus leads to that the major international companies be more compliant with the requirements of the central authority. 
 
However, the local government in the Kurdistan region has announced, since its formation nearly four years ago, that it seeks to restructure the economy in the region, with a desire to diversify sectors and economic resources, benefiting from the experiences of a number of countries in the region, especially the countries of the Arab Gulf region. 
 
diversification of sources
Official information indicates that the regional government plans to develop the industrial, tourism and agricultural sectors in the region, and gradually dispense with the quality of the rentier oil economy, to create an economic capacity and a network of investment interests that serve the political situation of the region. 
 
%D8%B2%D8%B1%D8%B1%D8%A7%D8%B9%D8%A9.jpe
 
The expert in development economics, Noaman Hamawandi, revealed to “Al-Nahar Al-Arabi” that restructuring the economy in the Kurdistan region is a mandatory option for the regional authorities, as “the region’s reserves of oil wealth do not exceed 3 percent of what Iraq has, and therefore the oil sector is not a sustainable strategic sector.” In the region, it can only have a role in establishing the primary infrastructure, and then moving to the development of other sectors.” 
 
Hamawandi adds: "The whole issue is that the non-oil sectors are showing their results very slowly, especially in an environment such as the Kurdistan region, which does not have a history and social classes in the field of industrial and tourism sectors, while the traditional agricultural environment that was in the countryside has disintegrated. Reconstructing all of that requires To educational, social and cultural development efforts that have accumulated for decades, at a time when there are severe unrest surrounding public life in the region.
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Somo: The region insists on refusing to implement the decision to deliver oil, and there are no negotiations at the moment
  
{Economic: Al Furat News} The National Oil Marketing Company {SOMO} announced that the Kurdistan region of Egypt refused to implement the Federal Court's decision regarding the export of oil.

SOMO Director General Alaa Al-Yasiri said in a press statement: "There are no negotiations at the present time, as the regional government has officially announced its rejection of the Federal Court's decision altogether."
On February 15, the Federal Supreme Court issued a ruling declaring the unconstitutionality of the Oil and Gas Law of the Kurdistan Regional Government, issued in 2007, and its abolition for violating the provisions of constitutional articles, as well as obligating the region to hand over oil production to the federal government.
It is noteworthy that the Kurdistan region has started selling 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, as well as the disputes with Baghdad that prompted the latter to stop paying the salaries of the region’s employees.
The federal government says the National Oil Company (SOMO) is the only entity authorized to sell Iraqi crude oil.
Baghdad and Erbil relied on the constitution, and with the Iraqi oil and gas law remaining trapped in the drafting stage due to differences, this left room for maneuver in the interpretations of the constitutional articles.

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SOMO: KRG insists on refusing to implement federal court decision on oil and gas export

SOMO: KRG Insists on Refusing to Implement Federal Court Decision on Oil and Gas Export – Iraq News Network (aliraqnews.com)

SOMO: KRG insists on refusing to implement federal court decision on oil and gas export
Last Update: 11 September 2022 - 11:10 am

Baghdad/Iraq News Network - The Oil Marketing Company (SOMO) said on Sunday that the Kurdistan Region is determined to refuse to apply the decision of the Federal Court on the export of oil.The company's general manager Alaa Khudair al-Yasiri said in an interview with the official newspaper, that "the Kurdistan region still refuses to apply the decision of the Federal Court and exports its oil illegally." A responsible Kurd said today that the KRG exports one million barrels of oil per day through the Turkish port of Ceyhan, mostly to Israel except for smuggling 500,000 barrels of oil per day through tankers

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ULAIMANI (ESTA) — The Kurdistan Region insists to reject the Iraqi Federal Supreme Court ruling, deeming the Region’s oil business illegal said the Director of SOMO on Sunday.

Head of Iraqi state-owned organization for marketing oil (SOMO) Alaa al-Yassiri told a semi-official newspaper that the Kurdistan Region is still insisting on not abiding by the Federal Court ruling.

“The Region keep exporting oil illegally,” al-Yassiri said, adding, “We have no negotiation with the Region because they clearly reject the ruling.”

Authorities in Iraq, Oil Ministry, have made fresh attempts since early 2022 to control the Kurdistan Region’s oil revenue, where they developing oil and gas resources independently of the federal government.

In 2007 the Kurdistan Regional Government (KRG) enacted its own law that established the directives by which the region would administer them.

In February, Iraq’s federal court deemed the oil and gas law regulating the oil industry in Kurdistan unconstitutional and demanded that the (KRG) hand over their crude supplies. But repeatedly rejected.

Iraq has made several bids to enforce the February court ruling. It has summoned several firms operating in the Kurdistan region to commercial court sittings, which have been repeatedly postponed, and introduced a policy to blacklist oilfield service firms if they did not withdraw from the Kurdistan region.

The latest blacklisted oilfield services firms include Weatherford International and Dubai-based OIL SERV, according to SOMO.

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energy
   

Economy News-Baghdad


A report by the British "Middle East Eye" website revealed , on Thursday, that there is enormous American pressure towards the Baghdad government to stop the Federal Supreme Court's decision to prevent the Kurdistan government from selling oil, indicating that America fears the suspension of dozens of its companies in the region in conjunction with a global fuel crisis .

According to the report, "The United States urged Baghdad not to implement a court ruling forcing the Kurdistan region to hand over oil extracted from its territory to the federal authorities, warning that this could lead to an "exacerbation of an economic crisis" in Iraq ."

Barbara Leaf, the State Department's top diplomat for Middle East affairs, said: "Washington is very concerned - that rushing to implement this decision may risk driving US companies out of Iraq, and others outside of Iraq ."

She added, "It would be a shocking vote of no confidence in the business environment in Iraq and, frankly, could produce broader economic repercussions beyond the Kurdish region of Iraq ."

Leaf stressed that she "shares US concerns with leaders in Baghdad and Erbil that pursuing the court's ruling would exacerbate the country's economic problems while it does. The country is already dealing with a political crisis ."

It is noteworthy that the ruling, stated that "all oil contracts in the Kurdistan region are void, including agreements for exploration, extraction, export and sales. The dispute over oil sales escalated this summer after a commercial court in Baghdad canceled contracts between the Kurdish government and foreign energy companies ."

Leaf continued, "The United States has not taken any legal position on the Iraqi court ruling, and moving forward now in the midst of an ongoing crisis over government formation would simply risk some kind of widening economic crisis, and that is the last thing the Iraqi people need."

 
 

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Added 09/15/2022 - 2:21 PM
Update 09/15/2022 - 2:46 PM
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Great pressure from Washington on Baghdad to stop the Federal Court's decision to prevent the Kurdistan government from selling oil, this was revealed by a British report that confirmed that if implemented, dozens of American companies operating in the region would stop working in conjunction with a global fuel crisis.
 

According to the British report, the United States urged Baghdad not to implement a court ruling forcing Kurdistan to hand over oil extracted from its lands to the central authorities, warning that this might exacerbate an economic crisis in Iraq.
 
 
 
 
 

Barbara Leaf, the top diplomat for Middle East affairs at the US State Department, expressed Washington's concern that rushing to implement this decision could risk driving American companies out of Iraq and others, while threatening at the same time from a shocking vote of distrust in the business environment in Iraq and could result in Broader economic ramifications beyond the Kurdish region of Iraq.

The dispute over oil sales escalated this summer after a Baghdad court canceled contracts between the Kurdistan government and foreign energy companies, including agreements for exploration, extraction, export and sales.
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America is the last country to take economic advice from.

America needs to stay out of the Iraq internal affairs and if they have all that extra time on their hands they could do something about the crisis at the border….

Just my opinion of course….

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tell them buddy, usa needs to clean up its on yard before they tell neighbors what to do! just saying , thats whats wrong all these years already, to many crooks here and everywhere , clean the swamp MR PRESIDENT  TRUMP!   WERE WAITING!

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British report: America presses Baghdad to cancel the decision of the judiciary to stop the export of Kurdistan oil

1000475-e4454c20-49ce-43fc-a14f-407123d5
Baghdad/Nina/ The report of the British website "Middle East eye" revealed on Thursday the existence of enormous American pressure towards the Baghdad government to stop the decision of the Federal Supreme Court to prevent the Kurdistan government from selling oil, indicating that the United States fears the suspension of dozens of its companies in the region in conjunction with a global fuel crisis. According to the report, "The United States urged Baghdad not to implement a court ruling forcing the Kurdistan region to hand over oil extracted from its territory to federal authorities, warning that this could lead to "exacerbation of an economic crisis" in Iraq

. Leaf, senior Middle East diplomat at the US State Department, said Washington is deeply concerned that rushing to implement this resolution could risk driving US companies out of Iraq, and other companies outside Iraq.
"It would be a shocking vote on distrust of Iraq's business environment and, frankly, could have broader economic repercussions beyond the Kurdish region of Iraq," she added.
Lev stressed that she "shares the concerns of the United States with leaders in Baghdad and Erbil that pursuing the court's ruling would exacerbate the country's economic problems while that happens. The country is already dealing with a political crisis."

It is noteworthy that the ruling stated, "All oil contracts in the Kurdistan region are void, including exploration, extraction, export and sales agreements."
The dispute over oil sales escalated this summer after a commercial court in Baghdad annulled contracts between the Kurdish government and foreign energy companies.
"The United States has not taken any legal position on the Iraqi court's ruling, and moving forward now in the midst of an ongoing crisis over the formation of the government would simply risk some sort of deepening economic crisis, and that's the last thing the Iraqi people need," Lev said.
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