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

[6ly410]

The Washington Institute: The oil agreement between Baghdad and Erbil will not last more than 6 months

The Washington Institute: The Baghdad-Erbil Oil Agreement Will Not Last More Than 6 Months (economy-news.net)

 

Economy News-Baghdad

An article by a writer from the Washington Center for Studies talked about the oil agreement concluded between Baghdad and Erbil regarding the export of oil from Kurdistan through Turkey, and the agreement is likely to expire within 6 months.

Full text of the article:

by Michael Knights

Iraq's bloated 2023 budget has made room for the Kurds for a share of wealth this year, but preparing for the next opportunity to reach durable solutions is even more important.

On March 16, KRG Vice President Qubad Talabani spoke publicly about the new 2023 federal budget bill that includes provisions that allow Kurds to receive a per capita share of planned expenditures. It is true that the parliament has not yet ratified this law despite the passage of a full 3 months of this year, but the actual test will be its implementation, especially if the price of a barrel of oil globally approaches the level of $ 70, or less, expected in the budget. Assuming the KRG-Baghdad agreement succeeds, policymakers should think ahead about the technical and political challenges to its implementation, the unintended second-order effects, and the potential implications of broader understandings on federalism.

What has just been agreed?

The relevant budget items will allow the four provinces of the region to receive a share of federal expenditures. Unlike Iraq's other fifteen governorates — officially referred to as "provinces not organized into a region" — the region has its own parliament, government, and ministerial system, so most of its government functions are not serviced directly from the line ministries within the budget. Instead, the region has had to negotiate on more than one occasion a per capita share of the cost of services that federal ministries usually provide to the provinces (so-called "non-sovereign spending"). For its part, Baghdad has had to account for the various revenues generated by the region that are not usually generated by an "individual" province -- most notably revenues from the production of 400,000 barrels of oil per day. These gains were often cut from KRG allocations in the federal budget.

Over the past years, debates over these allocations and cuts have been mixed with broader questions associated with the principle of federalism: Does the region have the legal authority to explore and market oil? What should be the share of non-sovereign spending per capita in the absence of an official census? What percentage of the budget should be allocated to non-sovereign expenditures? The Government's approval of the current draft budget does not answer these questions definitively - it is simply an indication that temporary arrangements have been put in place again in order to open national coffers.

Indeed, each faction of Iraq has its own strong motivation to pass the budget as soon as possible. After a year-long bickering process after the 2021 parliamentary elections, the country remained without a budget in 2022, spending limited to paying salaries and pensions. As a result, investments were frozen at a time when oil prices were high, and federal reserves have now piled up at a whopping $115 billion. This year, all factions are eager to take advantage of the resulting budget that will be larger than usual, which is expected to include $152 billion in spending -- a full 50 percent of the 2021 budget. Thus, allocating a quota to the Kurds is affordable this year, and the KRG's spending needs can be met (albeit barely so) without focusing on other beneficiaries.

What is left to negotiate?

In practice, a lot of decisions still have to be made, Talabani pointed out. One of the most important outstanding issues is the marketing of the 400,<> barrels per day of oil produced by the Kurdistan Region of Iraq and the way to manage the revenues generated. In the past, Baghdad has devised overly complex schemes for the region to force it to hand over all or part of its oil exports to federal authorities at the port of Ceyhan on the Turkish coast, where the Iraq-Turkey pipeline ends. This time, however, Baghdad seems to be content with a more pragmatic approach. Under the terms of the current draft budget, the region would market its oil and deposit revenues in a bank account that federal officials could monitor. Baghdad will then deduct that amount from its monthly allocations to the region, transferring any surplus funds owed to the Kurds.

But this arrangement will only work for one year — perhaps only half a year in practice given that finalizing the budget could take a few more months. A more sustainable regime cannot be imposed until Iraq passes a federal oil and gas law, and possibly a revenue-sharing law as well. Only a legal settlement at this level may be sufficient to reconsider the February 2022 Federal Supreme Court ruling that KRG oil exports are unconstitutional, otherwise the KRG's 2007 oil and gas law and related investment contracts will remain illegitimate.

Baghdad, the KRG, and other oil-producing provinces should agree on a few more things if they hope to facilitate further progress on these issues after the 2023 budget agreement:

Revenues are shared according to a fixed formula. Besides determining the region's per capita share of non-sovereign expenditures, Baghdad should settle the debate over sovereign and non-sovereign expenditures. Thus, it must determine the size of the "candy bar" from which the territory will receive a piece. In order not to provoke resentment among non-Kurdish voters, it would be better for the government to include compensatory incentives in the executive ministry's projects in Iraq's oil-rich south for 2023 and 2024.

Gradual changes in oil marketing. For starters, the KRI has to market its oil to pay off its $3.5 billion in debts to traders, as Baghdad seems unwilling to bear these arrears. After the debt is repaid, a joint oil marketing arrangement could be reached along the lines of the application of the oft-asked proposal for the establishment of the Iraqi and Kurdish Oil Marketing Company (ISOMO).

Exclude existing contracts. Any change in international contracts – almost all of which are codified in the English Foreign Court Arbitration Act – would lead to many lawsuits that would damage Iraq's level of friendship with investors. Thus, it is necessary for any new oil and gas law to exclude existing contract clauses signed under the 2007 Kurdistan Oil and Gas Law.

Gradual changes to the governance of the sector. It is necessary to be lenient when managing the energy sector in the Kurdistan Region. If the proposed KRIC is established as a joint venture between the federal and Kurdish oil ministries, it should be given full local authority to approve annual plans and budgets for field development. This will require a future Federal Oil and Gas Council to create a cooperative mechanism that would allow Baghdad and Kurdistan to distribute production increases and decreases (e.g., in order to meet OPEC quotas).

Carry out economic reforms in the region. Despite the large share allocated to Kurdistan in the huge national budget, the region will hardly be able to balance its regional budget for this year. The situation is likely to be better in the coming years, so the KRG should prepare by undertaking economic reforms such as reducing subsidies, increasing efficiencies, and transferring public sector employees to the private sector.

The American Role

Twenty years after the U.S. invasion to topple Saddam Hussein's repressive regime, helping Iraq reach a lasting peace with the country's largest ethnic minority remains one of Washington's most significant achievements. The author of this article published an article in 20 titled "The Key Role of the United States in Resolving the Energy Dispute between Baghdad and Kurdistan" in which he outlined specific areas where the United States could provide technical assistance that could help settle in the energy sector, such as establishing the Kurdish Regional Oil Company, providing support during audits, committing to OPEC-approved production cuts, and mediating arbitration over the Iraqi-Turkish pipeline.

Politically, U.S.-led international actors are credited with resolving the issue after urging the KRI's main parties to show greater flexibility on local Kurdish issues and greater unity in their dealings with Baghdad. These efforts need to continue with the same intensity until the oil and gas law is ratified; inaction now could quickly lead to renewed discord among the Kurds that could eliminate the prospect of a historic agreement.

Views 119

Added 2023/04/12 - 8:31 PM

[thomas2553]

9 hours ago, keylime said:

I know that's right. Biden can't control his own bowels much less anything else.

Yep.  The sewage that pours outa his mouth is putrid!🤮

[keylime]

4 hours ago, screwball said:

jeez red down arrow....we must have someone that likes biden😂

Or likes his bowels!

[yota691]

Bloomberg: Kurdistan's oil exports have been halted, and Baghdad is trying, with Ankara and Erbil, to resume it

04/12/2023 - 23:22

 

Baghdad - people  

Bloomberg said today, Wednesday, that the Kurdistan region's oil is still being exported, and that Baghdad is trying with Ankara and Erbil to resume it.  

  

  

  

An Iraqi official said, according to the agency (April 12, 2023), that "oil exports from the Kurdistan region have been suspended, and Baghdad is in talks with Ankara to reopen the oil pipeline between the two countries."  

  

Turkish officials intend to "discuss the compensation imposed by the International Court of Arbitration on Ankara, amounting to one billion (500) million dollars.  

  

  Türkiye wants to solve this problem before resuming oil exports.  

  

The Iraqi official revealed that Baghdad is in talks with Ankara and the Ministry of Natural Resources to resume oil exports.  

  

Although Baghdad and the Kurdistan Region signed an agreement on oil export, some details of how the oil will be sold remain unresolved.  

  

According to the Iraqi official, Turkey says it is repairing the oil pipeline on both sides of the border.  

  

So far, the Turkish government has not clarified whether it is trying to reduce compensation, or wants to define a mechanism for paying compensation.  

[yota691]

What is the fate of the debts incurred by Kurdistan after the oil agreement? .. A parliamentarian answers

• Today 14:49

Information / Baghdad.. 
Member of Parliament, Muhammad Saadoun Al-Sudani, explained today, Thursday, the fate of the oil debts incurred by the Kurdistan government 18 years ago after the oil agreement between the region and the center, while he referred to the Baghdad-Erbil agreement that included a "basic point" related to export companies. 
Al-Sudani said in an interview with Al-Maalouma, that "the recent agreement between the central government and the Kurdistan region does not mean canceling what happened during the previous 18 years," noting that "Kurdistan's debts will remain fixed and a settlement will take place between Baghdad and Erbil." 
He added, "The debts incurred by the Kurdistan region in previous years as a result of continuing to export oil cannot be overcome in any possible way." 
Regarding the oil export companies, Al-Sudani explained that "one of the main points in this agreement is the legal effects of the companies that were contracting with the region," pointing out that "there are four companies in agreement with the region to import oil, and as a result these companies have legal obligations with the Kurdistan government." ". 
And between the member of the House of Representatives, that "the agreement made it clear the necessity of appointing and naming legal figures to intervene in this issue to solve the outstanding problems between the region and the four oil-exporting companies."
Last Tuesday, the Prime Minister, Muhammad Shia'a al-Sudani, signed a new agreement between the governments of Baghdad and Erbil regarding the export of oil from Kurdistan to Turkey. Ended / 25R

[yota691]

Iraq petitions a US court to enforce the arbitration award against Turkey in exporting oil

 2023/04/13

 

 512

 

Iraq has petitioned a US federal court to enforce an arbitration award against Turkey related to Iraqi oil exports via a pipeline to the port of Ceyhan, according to documents filed with the court.

Reuters reported that "the petition was submitted to the US District Court of Columbia, and the court is required to recognize the final ruling issued by the arbitral tribunal and confirm its enforcement," noting that "the arbitration decision prompted Turkey to stop the flow of oil, which is equivalent to about 0.5% of global supplies, on the pipeline to Turkish port of Ceyhan.

And she added, "The Iraqi federal government and the Kurdistan Regional Government signed an interim agreement last week that allows northern oil exports to resume via Turkey, but the flows have not started, according to shipping companies."

And it indicated that sources told it earlier that "Turkey wants to settle another issue covering the period from 2018 onwards, before reopening the pipeline."

Iraq said on March 25 that it had won the arbitration case. According to a source familiar with the case, Turkey was ordered to pay about $1.5 billion to Iraq before interest in a ruling covering the period from 2014-2018.

Three days later, the Turkish Energy Ministry stated that the International Criminal Court had also ordered Iraq to pay compensation to Ankara.

 

[6ly410]

Deputy: The debts incurred by the region cannot be exceeded

Deputy: The debts incurred by the region cannot be exceeded – Iraq News Network (aliraqnews.com)

Last Updated: April 13, 2023 - 3:04 PM

Baghdad / Iraq News Network - MP, Mohammed Al-Sudani, on Thursday, the fate of the oil debts incurred by the Kurdistan Government for 18 years after the oil agreement between the region and the center, while referring to the Baghdad and Erbil agreement included a "key point" for export companies. Al-Sudani said in a press interview that "the agreement that took place recently between the central government and the Kurdistan region does not mean the cancellation of what happened during the previous 18 years," noting that "Kurdistan's debts will remain stable and a settlement will be reached between Baghdad and Erbil." He added that "the debts incurred by the Kurdistan region in previous years as a result of continuing to export oil cannot be exceeded in any possible way." Regarding oil export companies, Al-Sudani explained that "one of the main points in this agreement is the legal effects of the companies that were contracting with the region," pointing out that "there are four companies that agree with the region to import oil, and as a result these companies have legal obligations with the Kurdistan government." The member of the House of Representatives said that "the agreement clarified the need to appoint and name legal figures to intervene in this issue to solve the outstanding problems between the region and the four oil-exporting companies."

[screwball]

2 hours ago, 6ly410 said:

Deputy: The debts incurred by the region cannot be exceeded

Deputy: The debts incurred by the region cannot be exceeded – Iraq News Network (aliraqnews.com)

Last Updated: April 13, 2023 - 3:04 PM

Baghdad / Iraq News Network - MP, Mohammed Al-Sudani, on Thursday, the fate of the oil debts incurred by the Kurdistan Government for 18 years after the oil agreement between the region and the center, while referring to the Baghdad and Erbil agreement included a "key point" for export companies. Al-Sudani said in a press interview that "the agreement that took place recently between the central government and the Kurdistan region does not mean the cancellation of what happened during the previous 18 years," noting that "Kurdistan's debts will remain stable and a settlement will be reached between Baghdad and Erbil." He added that "the debts incurred by the Kurdistan region in previous years as a result of continuing to export oil cannot be exceeded in any possible way." Regarding oil export companies, Al-Sudani explained that "one of the main points in this agreement is the legal effects of the companies that were contracting with the region," pointing out that "there are four companies that agree with the region to import oil, and as a result these companies have legal obligations with the Kurdistan government." The member of the House of Representatives said that "the agreement clarified the need to appoint and name legal figures to intervene in this issue to solve the outstanding problems between the region and the four oil-exporting companies."

debts will be wiped in a reset full of BS

[yota691]

Report: Turkey's procrastination in resuming Kurdistan's oil exports portends a crisis between Baghdad and Ankara

04/13/2023 - 16:05

 

Baghdad - Nas  

Turkey still has reservations about granting permission to resume Kurdistan region oil exports, despite Baghdad and Erbil reaching an agreement regarding it, amid the harbingers of a crisis between Iraq and Turkey related to dues and financial compensation between the two sides, according to a report by the London-based Al-Arab newspaper .  

  

  

  

The report, which was followed by "NAS", (April 13, 2023), quoted Iraqi political circles as saying that Turkey is trying to exploit the need of Iraq and the region located in the north of the country to resume oil exports through the port of Ceyhan, in order to bargain, especially after the issuance of a ruling in favor of Baghdad that imposes on Ankara paid financial compensation.  

  

These circles indicate that Turkey has revived financial demands in connection with a previous agreement dating back to the seventies of the last century, and it seems that it is seeking some kind of barter.  

  

Iraq had earlier submitted a petition to a US federal court to implement an arbitration ruling against Turkey related to its permission to export Kurdistan's oil over the past years without referring to the Iraqi Oil Marketing Company "SOMO".  

  

The arbitration ruling, which was issued by the International Chamber of Commerce in the French capital, Paris, last month, awarded Iraq compensation for exporting Iraqi oil without Baghdad’s permission throughout the period from 2014 to 2018.  

  

The Iraqi lawsuit against Turkey was based on its “violation of the provisions of the Iraqi-Turkish pipeline agreement signed in 1973,” which stipulates that Ankara must comply with the instructions of the Iraqi side regarding the movement of crude oil exported from Iraq to all storage and disposal centers and the final station.  

  

The Iraqi petition, submitted to the District Court for the District of Columbia, asked the court to "recognize, confirm and enforce the final award of the arbitral tribunal."  

  

The arbitration ruling prompted Turkey to stop the flow of oil, which equals about 0.5 percent of global supplies, in the pipeline to the Turkish port of Ceyhan.  

  

Iraq's federal government and the Kurdistan Regional Government signed an interim agreement last week allowing northern oil exports to resume via Turkey, but the flows have not started, according to shipping companies.  

  

Sources told Reuters earlier that Turkey wanted to settle another case, covering the period from 2018 onwards, before reopening the pipeline.  

  

Iraq announced on March 25 that it had won the arbitration case. According to a source familiar with the case, the ruling included an order for Turkey to pay about $1.5 billion to Iraq before calculating interest in a ruling covering the period from 2014 to 2018. Three days later, the Turkish Energy Ministry said that the International Chamber of Commerce had also ordered Iraq to pay compensation to Ankara.  

  

Experts believe that there are other motives behind Ankara's procrastination in resuming the flow of Kurdistan's oil, including waiting for the decision of the second session of the Arbitration Court, as Turkey hopes to reduce the percentage of financial fines that it must pay to the Iraqi side.  

  

Experts point out that the ongoing delay in the level of oil export through the port of Ceyhan, its financial cost will be borne by the federal government in Iraq, because according to the agreement with Erbil, the latter must deliver 400 thousand barrels of oil per day to Baghdad, which must send all financial dues to the region.  

  

Observers of Iraqi affairs say that matters should not reach the level of a real crisis, and that it is in their interest for the two parties to reach a satisfactory financial settlement.  

[yota691]

The fate of the oil issue and the situation of the Kurdistan Regional Government (KRG) will be revealed

03:11 - 14/04/2023

It has been read 6844 times

 

 

 

KUNDUZ, Iraq

(KUNA) -- The Iraqi government has told the Kurdistan Regional Government (KRG) to convince Turkey to resume oil exports, the head of the Kurdistan Regional Government (KRG) said on Wednesday. "If Iraq doesn't send money, they don't have a single dinar to pay the April salaries.

Warya Hussein in a message entitled "Why should the Kurdistan Regional Government collapse?" “Oil exports have been suspended for 20 days. Investment companies have no hope of resuming investment. Their revenues have dropped to zero. They are threatening to file complaints against the government if the situation continues They are also threatening the government.”

The Kurdistan Regional Government is now facing a complicated situation

"Turkey has told Iraq that it will not resume exports unless it is zeroed in compensation of $1.6 billion. Iraq has told the Kurdistan Region that it has reached an agreement and must pay the money back," he said "The Kurdistan Regional Government (KRG) is facing a difficult situation. If Iraq does not send money, they will not have a single dinar to pay the salaries of the employees in April," he said.

If this situation continues, it will be very difficult to sustain the government, it will collapse

"The party and non-protocol agreements made in previous cabinets have put the ninth cabinet and the prime minister in a very complicated and pressing situation. If this situation continues, it will be very difficult to continue the government," Hussein said The collapse is going on.”

Nuri al-Maliki, who was the Arab who put the oil sector in the region

"I ask myself, will the Kurdistan Regional Government collapse? If it collapses, who will benefit? Iraq, especially Nuri al-Maliki, who is an Arab, likes this situation "It is very important that the federal government has a strong role in the Kurdistan Region, but not to the extent that the Kurds lose their constitutional structure, parliament and government."

It is very important that the PUK and KDP reduce their pressure on the ninth cabinet

"I think it is very important that the PUK and PDK reduce their pressure on the ninth cabinet and first of all it is important to stop the difficult conflict that has bankrupted the government, at least reorganize their work in the government for the benefit of the people," he said "They should take responsibility for the joint cabinet until the next elections, then the nation will make its own decision."

[yota691]

Turkey has new conditions for the resumption of oil production in the Kurdistan Region.. Baghdad is silent

05:54 - 13/04/2023

Read 31468 times

 

 

 

 

Despite an agreement between Baghdad and Erbil to resume oil exports through Turkey, Ankara has refused to resume oil exports and has new conditions, including that Baghdad does not seek compensation in court, the US newspaper Al-Monitor reported. 

Turkey wants a promise from Baghdad that it will not demand further compensation

"Turkey wants a promise from Baghdad that it will not seek further compensation for the periods revealed by the Paris arbitration case," Bilal Wahab, a close associate at the Washington Institute for Middle East Policy, told Al-Monitor newspaper Thursday.

Iraq and Turkey have been involved in a legal dispute over the export of oil from the Kurdistan Region through Turkish export ports

"Iraq and Turkey have been involved in a legal dispute over the export of oil from the Kurdistan Region through Turkish export ports, as Baghdad says the agreement between Turkey and Kurdistan to sell oil without referring to Baghdad is illegal," the report said.

Iraq has sought international arbitration in Paris through the International Chamber of Commerce

"Iraq has sought international arbitration through the International Chamber of Commerce in Paris, where the Chamber imposed sanctions on Turkey for violating the agreement, then Baghdad and the Kurdistan Region agreed to resume exports on new conditions that Baghdad send the oil and supervise, but Ankara It did not allow exports to resume.”

The court ruled that and fined Turkey only $1.5 billion as an option

"This case allows the central government to control the entire issue of oil from the Kurdistan Region that goes to Turkey through the pipeline, and now wants to take back the right from Turkey to allow the passage of oil without Baghdad's consent "It is demanding $20-30 billion, but the court has decided that and only $1.5 billion as an option to punish Turkey, so Turkey has stopped exporting Kurdish oil since March 2023."

He added that due to the loss of oil revenues exported through the Turkish port by the Kurdistan Region and Baghdad, Turkey wants to put more pressure on both Baghdad and Erbil.

[yota691]

Israel may not get the oil in the wake of the agreement between Baghdad and the Kurds

By Simon Henderson , Bilal Wahab , Henry Romm

April 13, 2023

 

 

 

 

ABOUT THE AUTHORS

Simon Henderson

 

Simon Henderson is the Baker Fellow at The Washington Institute and director of the Institute's Gulf and Energy Policy Program, specializing in energy and conservative Arab states in the Persian Gulf.

 

Bilal Wahhab

 

Bilal Wahab is the Soref fellow at The Washington Institute.

 

Henry Romm

 

Henry Romm is a senior fellow at the Washington Institute for Near East Policy, specializing in Iran sanctions, economic and nuclear issues.

 

 

Brief analysis

After years of quiet and fairly profitable oil trade between the Kurds and Israel, the threat to that trade is now heightened by the messy legal disputes involving Baghdad and Turkey.

Over the past decade, Iraq has been one of Israel's main sources of crude oil imports. Although the Baghdad government does not diplomatically recognize Israel and years of tension with Ankara , Israel has been a major buyer of oil supplies pumped by the "Kurdistan region of Iraq" through southern Turkey to the Mediterranean port of Ceyhan. In turn, the production and sale of this oil helped the Kurdistan Region maintain partial independence from the Iraqi federal government.

However, the long-running energy disputes between Baghdad and the Kurdistan Regional Government came to a head last month when an international tribunal ruled in favor of Iraq in its dispute with Turkey . The case in question centered on Baghdad's claim - now verified - that Ankara violated a bilateral agreement by allowing oil from the "Kurdistan region" to pass to Ceyhan.

Israel's oil trade with the KRG has been successful in large part because of the favorable prices. The Kurds sold their oil at a price lower than the prevailing prices for Iraqi oil , enabling the traders involved to maintain large profit margins. While in the past these supplies met a large part of Israel's domestic energy needs , this situation changed when the country began developing its offshore reserves of natural gas , which it uses to generate electricity and exports to both Egypt and Jordan.

As a result, Israel re-exported some of the KRG's crude abroad. After these supplies are shipped from the port of Ceyhan, some of them are processed at refineries in Haifa and Ashdod, while others are offloaded south of Ashkelon on the Mediterranean and pumped through a pipeline that runs across the country to the Red Sea port of Eilat. From there, it is shipped to customers in Asia, including those with refineries in China and Taiwan. (This pipeline dates back to before the Iranian revolution in 1979, when the Shah supplied oil to Israel; it has since been reversed and is now operated by the Eurasian Pipeline Company, or EAPC . )

Although Israeli restrictions on reporting preclude disclosing a final tally of these transactions and pipeline operations, MEES energy newsletter estimated in January that Israeli imports of Kurdish crude oil had reached a record level. It reached 194,000 barrels per day, based on information from data intelligence firm Kepler. In the same month, it was reported that total crude oil exports from Eilat amounted to 195,000 barrels per day. However, these high numbers may be an exceptional case, as other reports indicate that the average for 2022 reached 70,000 barrels per day. However, even the lower number represents about 16 percent of all Kurdish exports.

An arbitration award can impair this trade in multiple ways. The immediate upshot is that oil supplies from the "Kurdistan region" to Turkey have not yet been restored. On April 11, Baghdad submitted a petition to the US Federal Court in Washington requesting the enforcement of the arbitration award against Turkey, which amounted to $ 1.5 billion with interest . However, Ankara is said to view this financial obligation as the KRG's responsibility.

In addition, the Kurds reached a tentative agreement allowing the Iraqi Oil Marketing Company ("SOMO") to market their oil. And on April 7, MEES called Israel a "certain loser" if SOMO could secure long-term control over Iraq's oil exports , since Baghdad considers trade with Israel illegal - a firm position reinforced by a new law. Anti-normalization was passed a year ago.

Given that Israel has an alternative supply of crude oil within reach, the country will not face an energy crisis because of this ruling - as some reports say that it imports oil from Azerbaijan and Russia - in addition to the Kurdistan Region of Iraq - to meet the current domestic demand of about 210,000  barrels a year. Today, . However, the gap and possible marketing changes may put an end to the commercial relationship that has been the basis for a quiet but important relationship between the Iraqi Kurds and Israel.

 

Simon Henderson is the Baker fellow and director of the Bernstein Program on Gulf Affairs and Energy Policy at The Washington Institute. Bilal Wahab is a Wagner Fellow at the Institute and founder of the Center for Development and Natural Resources at the American University of Iraq - Sulaymaniyah. Henry Romm is a senior fellow at the Institute.

[6ly410]

 

[T B]

HOLD ON! IM COMING!  GET EM JESUS!! SORRY MR TRUMP, HAD TO SAY YOUR SONG! OH I FEEL YOUR SPIRT IS GOING TO SPREAD ACROSS THE NATIONS LORD!  THANK YA JESUS!!!   BE BLESSED PEOPLE!  IM JUST A MAN!😀

[ametad]

If only some comedians would make a skit about this…

 

Turkey - closes pipeline 

 

Iraq - demands tons of $$ from Turkey for the oil that already went through

 

Turkey - conducts air strike on Iraqi airport 

 

Iraq - wants pipeline open 

 

Turkey - demands economic amnesty from the past in all respects of the pipeline 

 

Iraq - asks the United States to strengthen international judgement by Paris 

 

meanwhile - someone isn’t getting their oil deliveries 

 

You can’t make this kind of material up.

[yota691]

Reuters: Baghdad did not ask Turkey to resume the region's oil exports

2023.04.14 - 23:04

 

Baghdad - Nas  

On Friday, Reuters reported developments in the issue of halting the region's oil exports via Turkey.  

  

The agency said, quoting a source as saying, (April 14, 2023), that the company operating the pipeline did not receive any notice to resume exporting oil, and  Baghdad did not ask Turkey to resume exporting oil to the Kurdistan region .  

  

The source confirmed that Turkey wants to negotiate directly on the issue of compensation before resuming oil exports .  

[ametad]

ok, seriously though who is not getting their oil? And not contractually, or who gets a cut here and there in the process. But, where are the physical oil deliveries going? 
 

If global supply is only .5% Iraqi oil through Ceyhan, how much of the supply to Ceyhan is Iraqi oil?

 

What percentage of Iraqi oil is transferred through the Turkish port?

 

Are all shipments out of the Turkish port of Ceyhan stopped at this point? Perhaps it is just a reduction in global shipments.

 

Certainly this amount of oil can be shut off for a few years until this is settled. However, I would like to know how much of an impact it will have and to who.

[6ly410]

ERBIL — KRG crude exports are yet to resume after they were halted in late March due to a court ruling in France, pending Baghdad calling on Ankara to restart pipeline flows, according to a report by Reuters.

"Baghdad has yet to request Turkey reopens the pipeline," Reuters reported on Friday. "Pipeline operators have yet to receive any instruction to restart flows," citing sources familiar with the matter.

Reuters also reported that Iraq's state-owned oil marketing company SOMO is "waiting to finalise some technical issues essential to restarting flows with the KRG's ministry of natural resources," citing Iraqi oil officials.

Media reports also indicate that Turkey wants to negotiate the compensation of $1.5 billion it was ordered to pay Baghdad for KRG's "unauthorized oil exports".

A joint interim agreement to resume KRG cude exports was signed on April 4 in Baghdad between Erbil and the federal government of Iraq under the auspices of Prime Minister Masrour Barzani and his Iraqi counterpart Sudani.

KRG crude exports were suspended in late March after Iraq won an arbitration court case in France, which ruled that Turkey had breached a joint pipeline agreement (1973) with Baghdad by pumping Erbil's oil at the country's Ceyhan port. The verdict ruled that the KRG couldn't export its crude without consent from the federal government in Baghdad.

Erbil exported some 450,000 barrels of oil per day before the court ruling, which accounted for 0.5 percent of global oil supplies. Hallting the crude exports subsequently caused a surge in global oil prices. Oil firms operating in the Kurdistan Region have either ceased production or decreased output in the aftermath of the French court ruling, diverting it to storage tanks.

[6ly410]

ERBIL, Kurdistan Region - A prolonged stoppage of the flow of Kurdistan Region’s oil will shake investor confidence, an official from the United States Chamber of Commerce told Rudaw on Saturday.

“Anywhere in the world, from a US chamber standpoint, if there are actions that prevent businesses from operating in a sound way as they previously had, any sort of abrupt stoppage to that will inevitably cause an increase in investor uncertainty,” Anna Burress, manager of Middle East affairs at the US Chamber of Commerce, told Rudaw’s Diyar Kurda.

In March, a Paris-based arbitration court ruled in favour of Iraq against Turkey, regarding exports of Kurdistan Region oil through Turkey’s Ceyhan port.

The decision was followed by an immediate stoppage of Kurdish oil exports, which subsequently forced oil companies to halt their operations in the Kurdistan Region.

On April 4, the Kurdistan Regional Government (KRG) signed a deal with Baghdad that requires the KRG to sell its oil through the Iraqi State Organization for Marketing Oil (SOMO).

The oil is still not flowing, however, Burress called for a short-term resolution between Erbil, Baghdad and Ankara in order for normal operations to resume. “We also advocate for continued discussions between the parties to achieve a long term solution,” she said.

Erbil’s independent oil sector has long been a source of tension between the Kurdistan Region and federal Iraq with Baghdad insisting the state has sole power to market the country’s oil and the KRG arguing the constitution gives them the authority.

The KRG has lost around $550 million due to the halt in oil exports, according to Reuters.

 

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Shakhwan Abdullah reveals the content of his bilateral meeting with Al-Sudani

2023.04.16 - 14:32

 

Baghdad - people  

Shakhwan Abdullah, the second deputy speaker of the House of Representatives, revealed the details and content of his bilateral meeting with Prime Minister Muhammad Shia'a Al-Sudani.  

  

 

  

Abdullah said in an interview with the Kurdish Rudaw channel, followed by "NAS" (April 16, 2023), that "the meeting was bilateral, and the issues discussed were related to the agreement between Erbil and Baghdad."  

  

 "I told the Iraqi prime minister that you now have a moral and legal responsibility to send money for KRG salaries until the oil is returned," Abdullah said.  

  

 He continued, "The Iraqi government informed me that it is waiting for Turkey's response to resume oil exports from the Kurdistan region. An understanding has been reached, and the oil will be exported within two to three days, and they will talk with the Ministry of Oil and resume oil exports."  

 

 

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ERBIL, Kurdistan Region - Exports of Kurdistan Region’s oil are expected to resume in the next few days after being put on hold more than 20 days ago, a deputy leader of the Iraqi parliament told Rudaw on Sunday, citing a recent meeting with the Iraqi premier.

“He [Iraqi Prime Minister Mohammed Shia’ al-Sudani] said that they are trying to complete the administrative and technical procedures so that the oil can flow in the next one or two days,” Shakhawan Abdullah, the Iraqi parliament’s second deputy speaker, told Rudaw’s Sangar Abdulrahman.

In March, a Paris-based arbitration court ruled in favour of Iraq against Turkey, regarding exports of Kurdistan Region oil through Turkey’s Ceyhan port. The decision was followed by an immediate stoppage of Kurdish oil exports, which subsequently forced oil companies to halt their operations in the Kurdistan Region.

On April 4, Kurdistan Region Prime Minister Masrour Barzani and Sudani signed an agreement to resume the Region’s exports, but there is still no oil flowing through the pipeline to Turkey.

Abdullah said Baghdad had been awaiting a response from Ankara to resume the exports, noting that an agreement has now been reached and “there are no more obstacles.”

He also held Baghdad responsible for providing salaries for Kurdistan Region’s civil servants, as the pause in oil exports has hampered Erbil’s ability to do so.

“I told the prime minister ‘there is a moral and responsibility in front of you to send money for salaries until the oil flow is back,’” he said, adding that the premier said he will try to include the subject on the agenda of Tuesday’s cabinet meeting.

The Kurdistan Regional Government (KRG) is heavily reliant on revenues from its oil exports and an extended inability to sell its crude will severely impact its economy. The government has struggled for years to pay over a million civil servants on time and in full.

 

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ERBIL — Iraqi Minister of Construction and Housing Bangin Rekani announced on Sunday that technical issues hampering oil exports from the Kurdistan Region have been resolved, confirming there are no legal or technical obstacles to resume oil exports from the Region.

A technical agreement will be signed on Monday, and a letter will be sent to Turkey to resume oil exports from the Kurdistan Region. The move is expected to boost the region's economy and increase revenue for the Iraqi government, Rekani told Kurdistan 24.

The Iraqi Council of Ministers will discuss financial entitlements to the Kurdistan Region on Tuesday, the Iraqi minister added.

Baghdad has not allocated any budget to the Kurdistan Region for four months this year. However, the Iraqi federal government is committed to sending Erbil's share from the budget, even if it is in the form of loans. The budget bill needs approval before funds can be transferred, and the budget of the Kurdistan Region will be taken into account.

Earlier this month, Kurdistan Region PM Masrour Barzani and his Iraqi counterpart Mohammed Shia' al-Sudani oversaw the signing of a joint agreement between Erbil and Baghdad, which would allow the KRG to restart its crude oil exports after being stopped due to a court order in Paris.