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Türkiye announces the date for resuming the export of Kurdistan region’s oil via the Ceyhan line


yota691
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BEN VAN HEUVELEN AND MOHAMMED HUSSEIN OF IRAQ OIL REPORT
TUESDAY, APRIL 4TH, 2023
     

Iraqi Prime Minister Mohammed Shia al-Sudani and Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani confirmed Tuesday that they have agreed on a framework deal for temporarily restarting northern exports.

Crude oil flows of nearly half a million barrels per day are still offline as the two sides figure out the practical details of how to implement the deal, but a formal signing ceremony in Baghdad signaled a high level of political will to push it forward.

"It is the responsibility of the relevant technical authorities to implement the agreement immediately and find legal ways to do so," Sudani said in a statement Tuesday.

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During the joint press conference... Prime Minister

: We welcome the Prime Minister of the Regional Government and his accompanying delegation on their visit to sponsor and supervise the signing of the interim axis of the agreement of the Federal Ministry of Oil and the Ministry of Natural Resources for the resumption of oil exports from the region and Kirkuk.

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Under the patronage of the Prime Minister

President of the Kurdistan Regional Government of Iraq

On Tuesday, a temporary agreement was signed in Baghdad between the Federal Ministry of Oil and the Ministry of Natural Resources in the regional government, under which the export of crude oil abroad from the region and from Kirkuk province will resume.

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Today I signed an agreement with Prime Minister Mohamed Shia’ Al Sudani that lays foundations for a new era of robust, lasting cooperation between Erbil and Baghdad.

During my meeting in Baghdad, I thanked the Prime Minister for his leadership and pivotal role in brokering renewed cooperation between us. This pact serves the interests of the whole country, including the Kurdistan Region. We also agreed that we now have a framework for a draft budget law and, in the near future, discussions can begin on a new federal oil and gas law.

The recent disruptions to oil exports from the Kurdistan Region have hurt the country as a whole. This agreement brings much needed revenues. Our position has always been to work with Iraq for a deal that respects our rights under the Constitution. The Prime Minister’s personal stake gives this understanding impetus and traction.

As of today, our relationship with Baghdad is strengthened and we can embark on a new era of trust and cooperation. As Prime Minister Al Sudani said, we must now focus on the opportunities between Baghdad and Erbil, and arrangements that benefit all the Iraqi people.

I thank President Masoud Barzani for his role and interventions and President Nechirvan Barzani for his support. I have also thanked the technical delegation from both sides for their dedication and hard work over the last couple of weeks.

 

Masrour Barzani

04 Apr 2023
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On 3/26/2023 at 3:26 AM, 6ly410 said:

 

The regional government affirms its firm position not to give up the constitutional rights of the Kurdistan people

92852022_%D9%83%D8%B1%D8%AF%D8%B3%D8%AA%


08:07 – 25/03/2023

Baghdad - Mawazine News
The Ministry of Natural Resources in the Kurdistan government confirmed today, Saturday, that the
regional government affirms its firm position not to give up the constitutional rights of the Kurdistan people.

The ministry stated in a statement, a copy of which Mawazine News received, that “the
Kurdistan Regional Government has conducted, in recent months, continuous dialogues and negotiations with the
federal government, the latest of which was on the budget and oil and gas files, stressing that” the two sides
had reached a preliminary agreement and understanding at that time. Good under the umbrella of the constitution and the
constitutional rights and entitlements of the Kurdistan region.”

The statement added, "The President of the Kurdistan Regional Government is in constant contact with the
federal prime minister, pointing out that after his recent visit to the Kurdistan region,
the importance of solving problems based on the constitution was emphasized."

He continued, "The French court's decision in favor of the Iraqi government against Turkey will not
hinder our relations with the Baghdad government," noting that "in this context, we will visit Baghdad for
dialogue and resolving related issues."

And he pointed out that "the Kurdistan Regional Government confirms its firm position not to
give up the constitutional rights of the Kurdish people, as it renews its coordination with Baghdad with the aim of
reaching a radical, legal and constitutional solution in this regard." Ended 29/M99

all for show it had to be done this way

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19 minutes ago, 6ly410 said:

Watch: Excerpts from the press conference held by Prime Minister Mohamed Shia al-Sudani with the President of the Kurdistan Regional Government (KRG) regarding the signing of the interim agreement to resume oil exports from the region. #الحكومة_العراقية

 

Edited by screwball
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16 minutes ago, NMP2017 said:

I wonder how long until the Iraq government decides to put them under guardianship or "take them over for their own good"...as they have done to others...that's what corrupt governments do to those that don't do as they are told...

Perfect example look what they're doing to Trump. I know... not hijacking or playing politics but damn...

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3 hours ago, BETTYBOOP said:

Anybody think that if they pass the budget they would RV  , even if the hcl is not passed. Could they do that with this temporary agreement in place? Or did I read somewhere the hcl is in the budget? Thanks 6ly410 for all these articles. 

It appears after reading these articles that the HCL may very well be in the budget, or at least the same bones of the HCL, so when they pass the budget, they may as well pass the HCL because the budget addresses paying all citizens just as the HCL will. 

Same head. Different hairdo.

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3 hours ago, keylime said:

It appears after reading these articles that the HCL may very well be in the budget, or at least the same bones of the HCL, so when they pass the budget, they may as well pass the HCL because the budget addresses paying all citizens just as the HCL will. 

Same head. Different hairdo.

And RV it too.....Just a thought.....

Hopefully April-May is when we see a rate increase....

Finally.............👋

 

 

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Iraq  2023/04/05
...
 

 

 Baghdad: morning


The President of the Republic, Dr. Abd al-Latif Jamal Rashid, praised the agreement signed in Baghdad to resume oil exports from the Kurdistan region of Iraq, which was announced by Prime Minister Muhammad Shia al-Sudani on Tuesday, in the presence of the head of the regional government, Masrour Barzani.

 

A statement by the Presidency of the Republic stated that the President of the Republic, Dr. Abdul Latif Jamal Rashid, received yesterday, Tuesday, at the Baghdad Palace, the President of the Kurdistan Regional Government, Masrour Barzani, and his accompanying delegation.

 

And while the President of the Republic praised the agreement to resume oil exports from the Kurdistan region, he appreciated the efforts of the negotiating teams in the federal government and the regional government, in a way that strengthens relations to serve national interests. 

 

The statement added that the importance of expediting the approval of the budget law was emphasized because of its impact on the lives of citizens and in a manner that contributes to the rehabilitation of infrastructure, provision of necessary services and building strategic projects. During the meeting, political, security and economic issues in the country were discussed, and the need to support The government implements its program to meet the needs of citizens.

 

A statement by the media office of the Prime Minister stated earlier on Tuesday that Prime Minister Muhammad Shia al-Sudani and the President of the Kurdistan Regional Government of Iraq signed a "temporary agreement" to resume oil exports from the region.

 

The statement stated that, under the auspices of Al-Sudani and Barzani, a "temporary agreement" was signed in Baghdad between the Federal Ministry of Oil and the Ministry of Natural Resources in the regional government, according to which the export of crude oil abroad from the region and from Kirkuk governorate will resume.

 

Al-Sudani had met Barzani and his accompanying delegation before signing the agreement, where they discussed the importance of strengthening cooperation between the federal government and the Kurdistan Regional Government of Iraq in various fields.

During the meeting, and following the signing of the agreement, the Prime Minister indicated the serious desire of the federal government and the Kurdistan Regional Government of Iraq to confront all inherited problems and obstacles that did not reach solutions, in a professional spirit that advances the interest of the Iraqi people in the Kurdistan region and the rest of the provinces. 

 

Al-Sudani said during the joint press conference he held with the President of the Kurdistan Regional Government of Iraq: "We welcome the brother, the head of the regional government and his accompanying delegation, in their visit to sponsor and supervise the signing of the temporary axis of the agreement of the Federal Ministry of Oil and the Ministry of Natural Resources in order to resume exporting oil from the region and from Kirkuk."

 

He added, "There have been negotiations over the past days following the decision of the International Arbitration Court, which stopped the export of the region's oil, which causes severe damage to Iraq's total oil revenues."

 

He stressed that "the damage does not only fall on the region, but also on the total oil revenues established in the federal budget for the three years, as approved by the Council of Ministers, which will cast a shadow over the deficit rate, which will rise significantly, so it was necessary to agree and reach this understanding and start." to implement it,” noting that “it is the responsibility of the direct technical authorities, immediately, to implement the agreement and find legal ways for this matter.” 

 

The Prime Minister stated that "the agreement confirms the serious and sincere desire of the federal government and the Kurdistan Regional Government to confront all the problems and obstacles that we inherited for years and were postponed, and we did not reach solutions," noting that "a merit awaits us, which is the legislation of the oil and gas law that will address all potentialities." The imbalance that accompanied this file since the adoption of the Iraqi constitution.

 

Al-Sudani appreciated "the efforts of the negotiating teams in the Iraqi government and the Kurdistan Regional Government for the professional and responsible negotiations that took place, and we hope they will do well in immediately implementing the agreement." He added, "This agreement will pave the way for the passage of the budget law and the texts it contains, which were the outcome of a dialogue between the federal government and the regional government, which dealt with all files, including the oil and gas file."

 

 And he continued, "There are pending files and contracts concluded years ago. Now we have before us a new reality in which there is political will, and the interest of all Iraqis requires that we proceed and deal with these files in accordance with the spirit of the constitution and the public interest," and pointed out that "any delay in export will clearly affect the total revenues." In the budget for the year 2023, on which we designed the total expenditures and the operational and investment budget, and therefore the deficit will rise and cause severe harm.

 

Al-Sudani stressed during the joint press conference that "this is the wealth of the people, and we must remove all obstacles, and resume exports to collect revenues for the public treasury and cover our needs in accordance with what is decreed in the budget law, and therefore everyone must abide by and implement this agreement."

 

For his part, the President of the Kurdistan Regional Government said: "This agreement is for all Iraqis and will be a basis for the budget, and even the oil and gas law because it will be implemented in an exact manner," and indicated that "re-exporting oil in the Kurdistan region will be beneficial to everyone and that we will seek a comprehensive and good agreement between the government Federalism and the regional government without leaving any aspect of our constitutional rights, but we seek to strengthen the relationship between the region and the federal government.

 

And he continued, "I thank Prime Minister Muhammad Shia'a al-Suwadani because he really works as prime minister for all Iraqis."

 

In addition, the Deputy Speaker of Parliament, Shakhwan Abdullah Ahmed, blessed the agreement reached by the federal government with the Kurdistan Regional Government regarding the oil file, stressing that the agreement concluded between the two parties will pave the way for dealing with outstanding issues and files between Baghdad and Erbil within the framework of the constitution.

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A research paper that monitors the secrets of Turkish accounts after winning Baghdad to international arbitration
 

Baghdad - people  

A research paper published by the Emirates Center for Policy reviewed the secrets of Turkish calculations after the issuance of the international arbitration decision in favor of Iraq in the case of exporting oil from the Kurdistan region.  

  

 

  

The paper, which was followed by "NAS", (April 5, 2023), indicated that days after announcing the decision of the international arbitration panel, a statement was issued by the Turkish Foreign Ministry, which considered that the case is not related to Turkey as much as it is a reflection of the conflict between the Iraqi federal government and the Kurdistan Regional Government. In an indication that Turkey is not about to act as if it lost the case or that it has to pay compensation, the statement indicated that Turkey has spent billions of dollars to maintain the pipeline, and that the arbitral tribunal rejected four of the five claims submitted by Iraq, and even ruled that Iraq should compensate Turkey. .  

  

According to the center, the Turkish position appears to be governed by several considerations, the most important of which are:  

  

a. political consideration Turkey does not prefer to choose between Baghdad and Erbil, on the grounds that it has broad interests with both sides, and it is also aware that the balances have changed, especially after the crisis of the independence referendum in Kurdistan, and in a way that may result in more presence of Baghdad instead of managing a completely separate relationship with the region.  

  

B. security consideration; Turkey does not want to lose the "Kurdistan Democratic Party" as a regional Kurdish ally in the framework of its conflict with the Kurdistan Workers' Party (PKK), as through this alliance it obtained facilities for deployment and military action, and ensured the division of the regional "Kurdish front", instead of uniting against it. At the same time, Turkey is aware that Tehran's axis in Baghdad plays a key role in facilitating the activity of the PKK in Iraqi territory, and therefore reaching a settlement with it in this regard remains necessary.  

  

c. the economic consideration, which may be more important in this case; Turkey itself built the pipeline in the Kurdistan region, financed it, and connected it to the Iraqi-Turkish pipeline, in exchange for paying its price from the region's oil exports, and through special discounts for Turkey in the prices of oil exported to it from the region. This happened within the framework of Ankara's endeavor to become a mainstay in the energy trade between the Middle East, the Caucasus and Europe. That is, Turkey, even while downplaying the conflict as an internal one between Baghdad and Erbil, played a key role in shaping the region's energy policies by providing the main export outlet that guarantees the flow of rents to the Kurdistan government. Reports also indicate that Turkey has granted a license to construct a new warehouse system in the port of Ceyhan, and a pipeline that extends from the region and parallels the Iraqi-Turkish pipeline to reach the port of Ceyhan, in other words, a parallel infrastructure that allows it and the region to avoid using the Iraqi-Turkish pipeline, and thus The exclusive authority of the Federal Oil Ministry over it. But the problem here is that the construction of this infrastructure will take more than one year, and will entail large financial expenditures that may be difficult to secure in light of the uncertainty that characterizes the economic situation in Turkey, and the change in financial priorities after the earthquake that hit it, as well as the situation of the Kurdistan region, its oil policy, and its relationship with Baghdad.  

  

The paper concluded that Turkey may find it better to encourage a new arrangement between Baghdad and Erbil that would allow the resumption of oil exports from the region and grant Baghdad some privileges in supervision and control.  

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Controversy in Kurdistan after the 'loss of oil paper' in favor of the Baghdad government
 

Baghdad - people  

Kurdish political circles and other opposition described the loss of the Iraqi Kurdistan region and the oil card in favor of the federal government in Baghdad as a logical result of the shaky internal situation in the region due to the conflicts between the two poles of Kurdistan's democratic rule and the Patriotic Union, and their control over oil revenues for the authority without the oil policies having public support due to the spread of Corruption in the sector.  

  

 

  

These circles considered that the success of the federal government in Baghdad in controlling oil and preventing the region from exporting it except through the state SOMO company will have dire repercussions on the region's goals and its independence from the center, which is the main demand of the Kurds after 2003, as the former minister in the regional government Dilshad Abdul Rahman wrote: There is no Kurdistan oil anymore, and the fields in the region have turned into the ownership of the provinces, just like the Basra and Kirkuk fields, and it has become a tributary to the Iraqi federal budget.  

  

Kurdish activists hold political leaders responsible for this situation for their failure to resolve the issue in previous periods, while others talk about a significant decline in the level of trust in institutions within the region due to repeated failures in administration and governance. And at a time when the circles of the Democratic Party celebrated what it considered an achievement after the signing of the oil resumption agreement, starting with Prime Minister Masrour Barzani, his deputy from the Union, Qubad Talabani, pointed out that the step came late and wrote on his Facebook page: Although this step was supposed to be taken before And with our approval, not after the issuance of international court decisions, but now we also consider it a correct step in order to resume the export of the Kurdistan region's oil and to address the problems radically.  

  

And Qubad Talabani continued: “The Kurdistan Region has been subjected, and for nearly the past 10 years, to great losses, the economic development and a large number of projects have stopped, and the distribution of salaries has stopped, and the Kurdistan Region has spent a long period without a budget due to the lack of clarity of vision about imports, and all this has led to a decrease in the percentage of citizens’ confidence in institutions.” .  

  

It is not known what share the Kurds will receive from the region's oil revenues, according to the agreement that was signed on Tuesday, while the Kurdish representatives are preparing to fight the budget battle after "all the eggs are in Baghdad's basket."  

  

The Kurds met the central government's seizure of the region's oil and preventing its export via Turkey with a cold statement that does not amount to the importance of this step and its impact on the region, which confirms the state of weakness that the region has become, according to observers.  

  

And the regional government confirmed in a statement, "It is on its firm position not to give up the constitutional rights of the Kurdistan people, it renews its coordination with Baghdad with the aim of reaching a radical, legal and constitutional solution in this regard."  

  

Baghdad won the decision of the International Commercial Arbitration Court in Paris on the issue of exporting oil from the Kurdistan region via Turkey, which necessarily means that the Iraqi Oil Marketing Company SOMO is the only party authorized to manage export operations through the Turkish port of Ceyhan.  

  

On Tuesday, the Iraqi government and the Kurdistan authorities signed an agreement allowing the immediate resumption of the region's oil exports to Turkey, in a "temporary" settlement to a long dispute between the two parties.  

  

Iraqi Prime Minister Muhammad Shia’ al-Sudani said during a joint press conference with the head of the regional government, Masrour Barzani, following the signing of the agreement, “We appreciate the efforts of the two parties, the federal government and the Kurdistan region, for the professional and responsible negotiations that took place, and we hope for them well, and we hope that they will immediately start implementing the agreement.” ".  

  

Later, Barzani said in a tweet that this agreement is "temporary" because it will allow the resumption of exporting the region's oil until the Iraqi parliament votes on the oil and gas law, "but it is a vital step to end the long dispute between Baghdad and Erbil."  

  

The agreement, which was signed in the presence of Al-Sudani and Barzani, states that Kurdistan’s oil sales will be conducted through the Iraqi Oil Marketing Company, Sumer, which means that Erbil will no longer manage the oil file alone.  

  

It also stipulates that the total revenues of oil exported from the fields of the region be deposited in a bank account of the regional government with the Central Bank of Iraq or one of the banks accredited by the Central Bank.  

  

According to the text of the agreement, and pending approval of the budget or the oil and gas law, a temporary committee of four members will be formed from the Ministry of Oil, the Oil Marketing Company and the Ministry of Natural Resources in the region, whose task is to negotiate the sale of the region’s oil according to the sales mechanisms of SOMO, provided that the final beneficiary is known.  

  

The file of the region's oil constitutes an obstacle in the relations between Baghdad and Erbil at a time when the Iraqi government adopted in its budget for the next three years the average selling price of a barrel of oil at $70.  

  

The Baghdad government has always looked at the Kurdistan government, which used to export the region's oil without returning to the central government, thus depriving it of its resources.  

  

The dispute between Baghdad and Erbil reached its climax ten days ago when Turkey stopped importing Kurdistan's oil.  

  

On March 25, Turkey stopped importing oil from the Kurdistan region, following the decision of the arbitral tribunal at the International Chamber of Commerce in Paris, which ruled in favor of Iraq in its dispute with Turkey over oil exports from its northern region.  

  

The dispute between the central government and the regional government over the oil file dates back to 2014, when Baghdad filed a lawsuit against Turkey before the arbitral tribunal, objecting to Ankara's declaration of exporting the oil of the Iraqi Kurdistan region to global markets without the permission of the Iraqi government.  

  

Despite Baghdad's opposition, Erbil was exporting the region's oil via Türkiye. The region's export rate is about 450,000 barrels per day.  

  

According to oil expert Yassar al-Maliki, the agreement "gives Baghdad the ability to view the oil sector in Iraqi Kurdistan, even if the matter is currently related to sales only."  

  

He added that the agreement, in return, gives Erbil the ability to "increase its income by ceasing to grant large discounts" in its sales, as it used to do previously.  

  

In principle, according to the agreement, Erbil must hand over part of its oil production to Baghdad, which in return must pay the salaries of public servants in the region.  

  

"Nas News + Al Arab Newspaper"  

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