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

[yota691]

Iraq asks Turkey to resume the work of the North Oil Export Pipeline

2023.05.11 - 17:21

 

Baghdad - people  

Three sources told Reuters, on Thursday, that Iraq has sent an official request to Turkey to resume pumping oil exports through a pipeline extending from the Kurdistan region of Iraq in the north of the country to the Turkish port of Ceyhan, after a closure that lasted for nearly seven weeks.  

  

  

  

One of the three sources and an independent source in the oil sector said (May 11, 2023), "The request that was sent to the Turkish state energy company BOTAŞ came after traders who buy crude from the Kurdistan region signed contracts with the Iraqi government's Oil Marketing Company (SOMO) on Tuesday and Wednesday." After weeks of discussions.  

  

The Iraqi Oil Ministry and the Turkish Energy Ministry have not yet responded to Reuters requests for comment.  

  

Reuters  

[yota691]

Foreign oil companies cancel production expectations from Iraqi Kurdistan

2023.05.12 - 09:13

 

Baghdad - people  

Yesterday, Thursday, the Norwegian oil company "DNO" canceled its expectations for production in the Kurdistan region of Iraq after a halt to exports since March, which forced the company to stop production, with the continued interruption of oil pumping through the Turkish Ceyhan pipeline from the semi-autonomous region in the north of the country.  

  

  

  

Turkey stopped pumping 450,000 barrels per day of Iraqi crude through the Iraqi-Turkish pipeline from the border region of Fishkhabour to the Turkish port of Ceyhan on March 25 after the Paris-based International Chamber of Commerce issued a ruling in an arbitration case in favor of Iraq.  

  

Four days later, DNO announced the cessation of oil production from the Tawki and Bishkabir fields, which produced 107,000 barrels per day in total, in 2022.  

  

"Until exports are resumed and payments for previous and current oil sales are regular, DNO cannot provide any forecasts for Kurdistan's production for the full year," the Norwegian company said in a statement today, Thursday.  

  

On April 18, the company said that it expects total production from Kurdistan to be less than 100,000 barrels per day, which it had previously expected, after it announced recording production of 94.72 thousand barrels per day for the first quarter.  

  

DNO owns a 75 percent stake in the Tawke and Bishkabir fields, while its partner, Genel Energy, owns 25 percent.  

  

Baghdad and the Kurdistan Regional Government of Iraq signed a temporary agreement on the fourth of last April to resume oil exports from Turkey, but the two sides have not yet defined many aspects of the agreement.  

  

DNO production in Kurdistan represents about 80 percent of its net oil and gas production. The company also produces oil products in the North Sea and West Africa.  

  

The company's operating profits in the first quarter of the year fell to $155 million from $236 million a year earlier, with operating profits in Kurdistan falling by more than half to $63.2 million.  

  

But DNO maintained its plan to allocate 0.25 crowns ($0.0238) per share as a quarterly cash dividend in June.  

  

In turn, "Genel Energy" canceled its forecast for production in 2023, saying that it was no longer fit for announcement in light of the closure of the pipeline between Iraq and Turkey since March.  

  

The company, which focuses its activities on the Kurdistan region of Iraq, said it would issue new forecasts once the pipeline reopens and investment plans are confirmed.  

  

It also lowered its forecast for capital expenditures in 2023.  

  

Reuters  

[yota691]

Resumption of exporting the region's oil through the Turkish port of Ceyhan, starting next Saturday

• Time: 05/11/2023 22:13:21
•  
• Read: 2,808 times

  

{Local: Al-Furat News} The Ministry of Oil announced the resumption of exporting Iraqi Kurdistan's oil through the Turkish port of Ceyhan, starting next Saturday.

 

The ministry quoted in a statement, of which {Euphrates News} received a copy, of the Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul-Ghani, as saying, “The Iraqi Oil Marketing Company, SOMO, has informed the Turkish BOTAS company to resume export and loading operations, starting next Saturday.” .
Abdul-Ghani indicated, "The conclusion of contracts with international companies for the sale and marketing of crude oil from the Turkish port of Ceyhan has been completed, according to the mechanisms adopted by the Iraqi Oil Marketing Company, SOMO."

[yota691]

Baghdad solves the Kurdistan oil crisis: We concluded the first contracts and resumed exports within days

 

energy
   

Economy News - Baghdad
The Ministry of Oil announced the start of exporting the first batch of oil from the Kurdistan fields within a few days.

Basem Al-Abadi, Undersecretary for Extraction Affairs, said, "His ministry has prepared four draft contracts for the sale of Iraqi oil with international supplier companies," noting that "the Iraqi Marketing Company (SOMO) concluded the first contracts for the sale of oil from the Kurdistan region's oil fields with a foreign company."

Al-Abadi added, "The other three contracts will be signed before the start of pumping oil in the coming days," stressing, "the ministry's readiness to pump crude if the Turkish side completes the work of examining and examining the pipeline located on its side," according to the official newspaper.

He continued, "The process of marketing Kurdistan's oil is taking place in accordance with the contexts of the usual contracts concluded by the marketing company (SOMO) with foreign companies," pointing out that "the Ministry of Oil and the Turkish side have overcome the obstacles that were hindering the agreement to market Iraqi oil through the Turkish port of Ceyhan."

And at the end of last March, Iraq won a case for arbitration, which it filed with the Arbitral Tribunal of the International Chamber of Commerce, against Turkey regarding the export of crude oil from the Kurdistan region through the Turkish port of Ceyhan without referring to the Iraqi Oil Marketing Company "SOMO".

 

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Added 05/11/2023 - 8:28 AM

[yota691]

Kurdistan is stripped of its most important weapons

 18 hours ago

1,303

 

With the announcement of the total withdrawal of the most important international oil companies operating in the Kurdistan region, which manage about 80% of the region's exports, the economic crisis of the ruling family in northern Iraq is exacerbated, turning dreams into nightmares of huge debts.

And after the decision of the Paris court to stop the export of oil from the region to Turkey through the port of Ceyhan, it became necessary for Baghdad to supervise every drop of oil exported from the region, so that the decision overturned the largest agreement in the history of the region, which is the export of oil through Ceyhan for 50 years with low amounts.

Decline in economic influence

The leader in the coordination framework, Turki, confirms that oil smuggling from the Kurdistan region has decreased by 90% within months.

Al-Atbi said in a press interview seen by “Takadum”, that “oil smuggling from the Kurdistan region has been a source of concern for the federal government for years, as it is one of the biggest legal violations and the involvement of influential parties in the file.”

He added, "The Sudanese government's measures and pressure towards adherence to oil marketing standards through SOMO contributed to the decline of smuggling by 90%," noting that "the judicial decision to limit the export of oil through SOMO contributed to stopping smuggling."

He pointed out that "the stage requires knowing the fate of the money and seeking to expose those involved with the smuggling networks in front of the Iraqi public opinion."

In the past years, the region witnessed the smuggling of large quantities of oil from some fields under various pretexts involving influential parties in the region, to end as soon as the decision of the Paris Court was announced.

The 2022 oil revenues in Iraq exceeded $115 billion, according to preliminary figures issued by the Ministry of Oil, which is the highest since the significant decline in oil prices during the Covid-19 period.

Iraq, the second largest oil producer in the Organization of Petroleum Exporting Countries (OPEC), has huge reserves of black gold, which represents 90% of its revenues.

waking nightmares

And after the Norwegian oil company “DNO” announced the cancellation of its expectations for production in the region after the suspension of exports through the Ceyhan pipeline last March.

Turkey stopped pumping 450,000 barrels per day of Iraqi crude, through the Iraqi-Turkish pipeline from the “Fishkhabur” border area to the Turkish port of Ceyhan on March 25, after the International Chamber of Commerce issued a ruling in an arbitration case in favor of Iraq.

Four days later, DNO announced the cessation of oil production from the Tawki and Bishkebir fields, which produced a total of 107,000 barrels per day in 2022.

"Until exports are resumed and payments for previous and current oil sales are regular, DNO cannot provide any forecasts for Kurdistan's production for the full year," the Norwegian company said in a statement.

On April 18, the company said that it expects total production from Kurdistan to be below 100,000 barrels per day, which it had previously expected, after it announced recording production of 94,720 barrels per day for the first quarter.

[yota691]

An oil expert believes that there is American mediation behind the resumption of exporting Kurdistan's oil via Türkiye

Economy _Today, 14:29 |

    

 

Baghdad today - Baghdad

Oil expert Bahgat Ahmed confirmed today, Friday, that the decision to resume oil exports through the Turkish port of Ceyhan came as a surprise .

Ahmed said to (Baghdad Today), "The Turkish conditions for the appeal are harsh and difficult, and it is at the gate of the elections, which are crucial for the ruling party in Ankara, and therefore the decision to appeal came as a surprise, given the Turkish situation. "

He added, "In April, Iraq was desperate to resume oil exports to Turkey and was increasing its production from the southern fields," noting that "production increased to about 33,000 barrels per day. "

He pointed out that "there is political bargaining or international mediation through the United States of America, which led to the resumption of oil exports ."

Earlier, the Ministry of Oil confirmed the conclusion of SOMO Company, the first contract with an international company that purchases oil in the Kurdistan region, pending the resumption of exports soon .

 

 

[yota691]

A specialized expert: Doubts about the resumption of oil pumping through Türkiye

2023.05.12 - 14:57

 

Baghdad - people  

The economist and professor of economics at the University of Basra, Nabil Al-Marsoumi, said on Friday that there are doubts about the export of Iraqi oil through the Turkish line at the date set by the Federal Ministry of Oil.  

  

  

  

Al-Marsoumi mentioned in a post followed by "NAS" (May 12, 2023), that "the Ministry of Oil says that it will resume pumping oil from the fields of Kirkuk and Kurdistan via the Turkish pipeline next Saturday, after agreeing to settle the outstanding issues between Baghdad and Erbil."  

  

He added, "But it did not address the differences with Turkey, whether they still exist or have been settled. These differences revolve around three points:  

  

The first: is the fee for the passage of oil through the Turkish line, for which Baghdad used to pay 1.19 dollars per barrel, and then raised it after that by the regional government.  

  

The second: related to Turkey's demand that the region pay the fine imposed by the International Chamber of Commerce in Paris on Turkey instead.  

  

The third: revolves around the continued sale of Iraqi oil to Türkiye at reduced prices.  

  

He continued, "Which means that there are great doubts about the export of Iraqi oil through the Turkish line at the date set by the Federal Oil Ministry."  

  

Earlier, the Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul Ghani, announced that the Turkish authorities had been informed of the resumption of export operations from the northern port - the port of Ceyhan - as of next Saturday.  

  

And the Ministry of Oil stated in a statement, which “NAS” received a copy of, (May 11, 2023), that “the Iraqi Oil Marketing Company, SOMO, informed the Turkish company BOTAŞ to resume export and loading operations, as of Saturday, May 13.”  

  

The Minister of Oil indicated, according to the statement, that "the conclusion of contracts with international companies for the sale and marketing of crude oil from the Turkish port of Ceyhan has been completed, according to the mechanisms adopted by the Iraqi Oil Marketing Company SOMO."  

[yota691]

Iraq is awaiting Türkiye's response to resume oil exports and expects the process to be postponed

2023.05.13 - 08:32

 

Baghdad - people  

Iraqi Oil Minister Hayan Abdul-Ghani said on Friday that Iraq wants to resume oil exports via a pipeline from the Kurdistan region in northern Iraq to the Turkish port of Ceyhan as of Saturday, but is waiting for Turkey's approval.  

  

 

  

  

Turkey holds presidential elections on Sunday, a move some observers say could delay the resumption of oil flows. The Turkish Energy Ministry did not respond to a request for comment on a possible resumption of oil flows.  

  

Abdul-Ghani said that Iraq is ready to pump 485 thousand barrels per day, including 400 thousand barrels from the semi-autonomous Kurdistan region and between 75 thousand and 85 thousand from the Kirkuk oil fields.  

  

On March 25, Turkey stopped pumping 450 thousand barrels per day of northern oil exports through the pipeline (TADAWUL: 2360) after a ruling in an arbitration case issued by the International Chamber of Commerce.  

  

The Chamber of Commerce ordered Turkey to pay Baghdad $1.5 billion in compensation for allowing the Kurdistan Regional Government to illegally export oil from 2014 to 2018.  

  

Abdul-Ghani said that paying compensation is not up for discussion with Turkey, but sources told Reuters earlier that Turkey is seeking to negotiate such compensation and that it wants a final solution to other open arbitration cases before resuming the flows.  

  

Abdul Ghani added that the halt in oil flows in March coincided with a request made by Turkey to inspect the pipeline and storage tanks for any damage caused by the February 6 earthquake.  

  

He said that Iraq is waiting for a response from Türkiye regarding the completion of the inspection and maintenance processes.  

  

Iraq's request to resume oil flows, starting on Saturday, came to the Turkish energy company BOTAŞ, after dealers buying crude from the Kurdistan region signed new contracts with the Iraqi state oil marketing company (SOMO).  

  

Abdulghani said the KRG agreed to allow SOMO to market its crude oil and set prices in the same formula that SOMO uses for its oil. Three informed sources said that the proceeds of its export will be deposited in a bank account for the regional government with Citi Bank in the Emirates, and Baghdad will be able to conduct audits.  

  

SOMO also entered into contracts with buyers of KRG crude. One of the three sources said that the contracts concluded recently have a validity period of three months, but they do not cover the large debts owed by the Kurdistan Regional Government to commercial companies.  

  

Bassem Muhammad, Undersecretary of the Minister of Oil for Extractive Affairs, said that the issue of the debts of the Kurdistan Regional Government will be discussed with the region through the Ministries of Oil and Finance.  

  

He added that the Iraqi government is serious about reaching an agreement that satisfies both parties.  

  

A source said earlier that oil-producing countries in the region have asked the KRG to prioritize debt repayment and to make transparent and regular payments conditions for any new investments and maximum export flow once the pipeline resumes.  

  

Abdul-Ghani said that Iraq is working to address the problems facing international oil companies, which lead to delays in production and additional costs, such as long waiting times for issuing entry permits for employees and customs clearance procedures.  

  

Reuters  

[yota691]

Iraq confirms the completion of the procedures for resuming Kurdistan's oil exports: We await Türkiye's response

• SATURDAY, 05-13-2023, PM 2:45
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• KARRAR AL-ASADI
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• 124

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Today, Saturday, the Iraqi Ministry of Oil renewed its confirmation of the completion of all procedures related to the operations of resuming the export of Kurdistan region's oil through the Turkish port of Ceyhan, which has been suspended since March 25.

"The Iraqi side has completed all procedures related to the resumption of oil exports, and the Turkish authorities have been informed of this, and are awaiting their response," said the ministry's spokesman, Assem Jihad, in response to reporters' questions.

In addition, an informed Turkish official suggested, on Saturday, that his country would reject Baghdad's request to resume exporting Kurdistan's oil through the port of Ceyhan, which was suspended a month and a half ago.

And the US Bloomberg Agency reported that officials from Turkey, which is awaiting the (presidential) elections tomorrow, Sunday, have said that they want to negotiate a settlement of 1.5 billion dollars before reopening the pipeline and the port to Iraqi oil flows.

For his part, an Iraqi official told Bloomberg Agency that Turkey had informed Iraq that maintenance work at the port, to repair the damage caused by the recent earthquakes, is still continuing.

The federal government in Iraq and the Kurdistan Regional Government usually export about 450 thousand barrels per day of crude oil through the port of Ceyhan, which represents about 10% of the total production of Iraq, while most of the crude is exported from the southern ports on the Persian Gulf.

[yota691]

A Turkish official believes that his country will refuse to resume exporting Kurdistan's oil through Ceyhan

• SATURDAY, 05-13-2023, PM 2:15
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• KARRAR AL-ASADI
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• 236

http://non14.net/public/images/large/8-1683976504.jpg

Today, Saturday, an informed Turkish official suggested that his country rejected Baghdad's request to resume exporting Kurdistan's oil through the port of Ceyhan, which was suspended a month and a half ago.

Last Thursday, the Iraqi Oil Minister expressed optimism about the resumption of oil pumping during the weekend (Saturday), which raised the shares of some energy companies operating in northern Iraq, including "DNO" (DNO) and "Gulf Key Stone Petroleum" ( Gulf Keystone Petroleum).

And the pumping of oil shipments amounting to nearly half a million barrels per day - mostly from the Kurdistan region - has stopped since March 25.

Despite the decline in Brent futures contracts during the past month from the level of $ 76 a barrel due to concerns about the global economy, the suspension of flows through the port of Ceyhan reduced supplies to some importers in Europe.

This came after Turkey closed a pipeline extending to the port of Ceyhan from northern Iraq, as part of Ankara's response to an international arbitral tribunal ruling that condemned it to $1.5 billion for allowing the Kurdistan Regional Government to export oil through Ceyhan without obtaining Baghdad's approval.

And the US Bloomberg Agency reported that officials from Turkey, which is awaiting the (presidential) elections tomorrow, Sunday, have said that they want to negotiate a settlement of 1.5 billion dollars before reopening the pipeline and the port to Iraqi oil flows.

For his part, an Iraqi official told Bloomberg Agency that Turkey had informed Iraq that maintenance work at the port, to repair the damage caused by the recent earthquakes, is still continuing.

For his part, the CEO of "Genel" company, Paul Weir, said last Thursday that the continued closure of the pipeline between Iraq and Turkey is very disappointing, and despite the continued speculation about the timing of the resumption of exports, it is not possible to predict any certainty when exports will resume.

The federal government in Iraq and the Kurdistan Regional Government usually export about 450 thousand barrels per day of crude oil through the port of Ceyhan, which represents about 10% of the total production of Iraq, while most of the crude is exported from the southern ports on the Persian Gulf.

[yota691]

After settling the dispute with Arbil

Report: Baghdad is about to set a date with Ankara to resume oil exports via Ceyhan

2023.05.14 - 10:24

 

Baghdad - people   

A day before the most fateful Turkish elections in decades, Baghdad announced its readiness to re-export Iraqi oil through the Turkish port of Ceyhan after settling disputes with the Kurdistan Regional Government.  

  

 

  

The export of oil through Turkey had stopped during the past two months as a result of the arbitration decision that came in favor of Baghdad in its dispute with Erbil over the export of Kurdistan’s oil, without going through the official natural channels and through the official national company “SOMO”.  

  

According to the results of the arbitration, the Kurdistan government has become obligated to export oil through the federal government through the “SOMO” company, which paved the way for settling more disputes between Baghdad and Erbil, and what could later pave the way for the approval of the disputed oil and gas law between the two sides since 2007. .  

  

And at a time when Baghdad is awaiting the results of the Turkish elections with great interest, given the complex and ongoing nature of the files without solutions, and some of them have been going on for decades, such as the water file, and now the oil file, in addition to the issue of the “PKK”, Baghdad has not announced a position on any of the candidates. The contenders for the presidency in Turkey.  

  

The Iraqi Oil Minister, Hayan Abdul-Ghani, announced on Saturday that Iraq wants to resume oil exports through a pipeline from the Kurdistan region in northern Iraq to the Turkish port of Ceyhan, but is waiting for Turkey's approval.  

  

Abdul-Ghani said in a televised statement that Iraq is ready to pump 485 thousand barrels per day, including 400 thousand barrels from the Kurdistan region, and between 75 thousand and 85 thousand from the Kirkuk oil fields.  

  

For his part, the official spokesman for the Ministry of Oil, Assem Jihad, confirmed that "the Iraqi side has completed all procedures related to the operations of resuming oil exports, and the Turkish authorities have been informed of this, and we are awaiting their response." However, a Turkish official suggested that his country would reject Baghdad's request to resume exporting Kurdistan's oil through the port of Ceyhan, which was suspended a month and a half ago.  

  

And the US “Bloomberg” agency reported that officials from Turkey, which is awaiting the presidential elections on Sunday, said that they want to negotiate a settlement for the amount of $ 1.5 billion before reopening the pipeline and the port to the flow of Iraqi oil.  

  

For his part, an Iraqi official told Bloomberg that Turkey had informed Iraq that maintenance work at the port to repair the damage caused by the recent earthquakes is still continuing. Turkey had closed a pipeline extending to the port of Ceyhan from northern Iraq, as part of Ankara's response to an international arbitration ruling that condemned it to paying $1.5 billion for allowing the semi-autonomous Kurdistan Regional Government to export oil through Ceyhan without obtaining Baghdad's approval.  

  

Baghdad had brought the case against Turkey to the International Chamber of Commerce, based in Paris, as part of a broader attempt to curb the efforts of the Kurdistan Regional Government. The Kurdistan Democratic Party, led by Massoud Barzani, confirmed that the news circulating about Turkey's decision to stop exporting Iraqi oil through the port of Ceyhan is completely inaccurate and not realistic.  

  

"Stopping oil exports has nothing to do with the agreement of the regional government with Turkey, which was held earlier," Sharif Suleiman, a deputy in the Iraqi parliament for the "Kurdistan Democratic Party," said in a press statement. Suleiman explained that "the reason for stopping the export of oil through the port of Ceyhan is due to the existence of an international arbitration lawsuit filed by Iraq and won against Turkey," noting that "the Iraqi and Turkish sides reached an agreement on re-exporting oil through the port of Ceyhan." And he indicated that "there are logistical and tactical matters between the states of Iraq and Turkey related to the process of exporting oil through the port of Ceyhan, and it will be completed and the export process will resume very soon."  

  

Suleiman said, "The Iraqi Oil Ministry is following this file, and soon it will end and restore its oil export," stressing that "the oil export agreement between Baghdad and Erbil is important for all the Iraqi people, and a new starting point for a real partnership."  

  

Source: Middle East  

[6ly410]

 

[yota691]

Economist: Iraq loses one billion dollars a month due to the suspension of the region's oil exports

• Time: 05/14/2023 22:29:22
•  
• Read: 2,132 times

  

{Economic: Al Furat News} The economic expert, Nabil Al-Marsoumi, confirmed that Iraq lost one billion dollars a month due to the suspension of oil exports from the Kurdistan region through the Turkish port of Ceyhan.

 

Al-Marsumi said; For the program {Without Accusation} broadcast by Al-Furat TV channel this evening, Sunday, that: “500 thousand barrels per day of Kirkuk oil, and the region is currently suspended from exporting, and the Kurdistan region bears the financial consequences of exporting oil through the port of Ceyhan, not Turkey.” 
He added, "The region sells its oil to Turkey for less than 8 dollars," noting that "Iraq does not have surplus export capacity, and what is currently exported does not exceed 3 million and 300 thousand barrels of oil."
Al-Marsoumi continued, "Iraq is the only country that does not have a land outlet to export oil like other countries, and it committed a grave mistake by not diversifying its export outlets," pointing out that "Iraq lost one billion dollars a month due to stopping oil exports, and it is the second largest trading partner; but it is not good at using commercial paper."
And he added, "It is difficult today to build such a line because it takes years," suggesting "exporting oil by tankers from Kirkuk to Jordan through the Aqaba port to reduce losses from 100-150 thousand barrels." 
 Al-Marsoumi concluded, "The Aqaba crossing was evaluated politically, not technically, and the Baniyas line was subjected to great sabotage and needs billions of dollars. Iraq is the biggest loser in the process of stopping oil through Turkey, and all the damage to foreign companies will be borne by the Iraqi side, as it is included in the cost oil." 
The economist concluded by saying, "It is assumed that the Ministry of Oil will form a delegation to Turkey to negotiate the resumption of oil in exchange for rescheduling the court sums in the Paris Chamber and the loading and transit fees."

[yota691]

Waiting for an agreement with Türkiye.. The file of Kurdistan's oil exports is still pending
l 2 hours ago
Sky News Arabia - Abu Dhabi

More than a month after it stopped, the oil export file from northern Iraq to the port of Ceyhan in Turkey is still pending, pending the conclusion of an agreement with the Turkish government.

Days after statements by Iraqi Oil Minister Hayan Abdul-Ghani , in which he said that re-exports would start on May 13, which did not happen, officials in Erbil said that Iraq is still awaiting a response from Turkey regarding the request to resume exports.

In a statement on Sunday, the Prime Minister of the Kurdistan Region, Masrour Barzani, said , "The Kurdistan Regional Government has fulfilled all its obligations based on the agreement, and is awaiting a final agreement between the federal government and the Turkish government to resume exporting the Kurdistan Region's oil."

And after the Kurdistan region exported its oil through Turkey without returning to the Baghdad government, the federal government resorted to arbitration procedures with neighboring Turkey in 2014 at the International Chamber of Commerce in Paris.

This year, the arbitral tribunal issued its decision in favor of Baghdad , and this ruling led to the suspension of exports since the end of March, and also obliged Erbil, the capital of the Kurdistan region, to negotiate with the government in Baghdad.

The two parties reached an agreement to work together on this file, and according to the terms of the agreement between Baghdad and Erbil , oil sales from Kurdistan must pass through the Iraqi state oil company " SOMO ", and not exclusively through the local Kurdish authorities .

The agreement also provides for the deposit of Kurdish export revenues in an account run by the local authorities in Kurdistan and supervised by Baghdad.

The halt in exports during that period caused losses of about one billion dollars, according to what oil expert Kovind Sherwani told AFP, as oil has been the economic lung of the region for more than a decade, which used to export 475,000 barrels daily through the Turkish port of Ceyhan.

In early May, the Iraqi Oil Minister spoke about the reasons for the delay in resuming exports, referring in particular to the "tests conducted by the Turkish side of the pipelines" to avoid possible oil leaks after the devastating earthquake that struck Turkey in February.

On the other hand, there are still "fines" that Ankara must pay to the Iraqi authorities, according to the Minister of Oil.

An agreement signed in 1973 between Ankara and Baghdad to regulate the use of oil pipelines and exports set $1.19 for transportation fees per barrel via Ceyhan. But the Kurdistan region was paying "much more than this amount," according to the minister, adding, "So we believe that these extra sums are due to the Iraqi government."

And Agence France-Presse quoted a senior official in the Ministry of Oil, who preferred not to be identified, that the amount of fines that Turkey should pay may exceed 1.8 billion dollars.

And in late March, the Turkish Energy Minister, Fatih Donmez , denied that his country should pay $1.4 billion in compensation to Iraq, according to a statement reported by the official Turkish news agency, Anadolu.

[yota691]

Iraq is waiting for a final agreement with Türkiye to resume exporting Kurdistan's oil

energy

May 15, 2023

 

Losses from stopping exports amounted to about one billion dollars (Getty)

 

Iraq is still waiting for a "final agreement" with Turkey to resume exporting Kurdistan's oil , as announced by the autonomous region's government, more than a month after it stopped.

The announcement comes after days of speculation. Last week, Iraqi Oil Minister Hayan Abdul Ghani announced that re-exports would begin on May 13, before officials in Erbil indicated that Iraq was still awaiting a response from Turkey on the request to resume exports.

In a statement on Sunday evening, the Prime Minister of the Kurdistan Region, Masrour Barzani, said, "The Kurdistan Regional Government has fulfilled all its obligations based on the agreement, and is awaiting a final agreement between the federal government and the Turkish government to resume exporting the Kurdistan region's oil."

And after the Kurdistan region exported its oil through Turkey without returning to the Baghdad government, the federal government resorted to arbitration procedures with neighboring Turkey in 2014 at the International Chamber of Commerce in Paris.

 

This year, the arbitral tribunal issued its decision in favor of Baghdad. The ruling has led to a suspension of exports since the end of March. He also obliged Erbil, the capital of the Kurdistan region, to negotiate with the government in Baghdad.

The two parties reached an agreement to work together on this file. Under the terms of the agreement between Baghdad and Erbil, oil sales from Kurdistan must pass through the Iraqi state oil company (SOMO), and not exclusively through the local Kurdish authorities.

The agreement also provides for the deposit of Kurdish export revenues in an account run by the local authorities in Kurdistan and supervised by Baghdad.

The halt in exports during that period caused losses of about "one billion dollars," according to what the oil expert, Kovind Sherwani, told "Agence France Presse." For more than a decade, oil has represented the economic lung of the region, which used to export 475,000 barrels daily through the Turkish port of Ceyhan.

In early May, the Iraqi Oil Minister spoke about the reasons for the delay in the resumption of exports, referring in particular to the "tests conducted by the Turkish side of the pipelines" to avoid possible oil leaks after the devastating earthquake that struck Turkey in February.

On the other hand, there are still "fines" that Ankara must pay to the Iraqi authorities, according to the Minister of Oil.

 

An agreement signed in 1973 between Ankara and Baghdad to regulate the use of oil pipelines and exports set $1.19 for the amount of transportation fees per barrel through Ceyhan, but the Kurdistan region was paying “much more than this amount,” according to the minister, adding: “So we believe that these The extra money is returned to the Iraqi government.

A senior oil ministry official, who preferred not to be identified, said that the amount of fines that Turkey must pay could exceed $1.8 billion.

In late March, Turkish Energy Minister Fatih Donmez denied that his country should pay $1.4 billion in compensation to Iraq, according to a statement reported by the official Turkish news agency, Anadolu.

(AFP)

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[6ly410]

The region's oil obstructs the budget. Will the Sudanese agreements be dead letters?

• Today 19:45
• The region's oil obstructs the budget. Will Sudani's Agreements Be Dead Letters? | Information (almaalomah-me.translate.goog)

Information/private.

It is clear that many files will remain pending with the completion of the vote on the general budget, which was suspended due to several files that are not born of the moment, most notably the oil and gas law and reaching an agreement leading to the control of the national company SOMO after the major violations that took place from Kurdistan towards non-compliance with the decisions of the Federal Court and the demands of the Ministry of Oil that flooded.

According to politicians, the current situation is heading towards detente, especially after the decision of the Paris Court, which obligated Turkey not to continue receiving oil from the region in isolation from the supervision of the central government, in addition to the fact that the approval of the tripartite budget depends on several files, the most prominent of which is the delivery of oil and gas revenues to the central government to supervise the export from Sumo National Company. 

*Tentative agreement not announced!  

• The region's oil impedes the budget... Will the Sudanese agreements be a dead letter? 

 

And speaking of the agreement on resolving differences between the region and the central government between a member of the Parliamentary Finance Committee, Jamal Cougar, on Monday, the latest developments in the central government's meetings with Kurdistan regarding the oil export file through the national SOMO company, while stressing that the recent meetings resulted in finding solutions to all outstanding problems between the two parties.

Cougar says in an interview with Al-Maalouma agency, "The current government headed by Prime Minister Muhammad Shia'a Al-Sudani worked seriously and diligently to end the accumulated disputes between the region and the federal government," noting that "the differences were resolved through political agreements and the inclusion of all rights in Public budget".  

He added, "The government's meetings with Kurdistan regarding the oil export file through the national SOMO company have resulted in new developments regarding the latter's control of all export joints and revenues," pointing out that "all parties wish themselves the need to implement this agreement on the ground during the current period." .   

* The region's oil is obstructed again 

In addition, a member of the Parliamentary Oil and Energy Committee, Suhaila Al-Sultani, said in an interview with Al-Maalouma agency, that "there is a parliamentary move to add a paragraph in the general budget that includes obligating the region to hand over oil revenues to the central government," noting: "We are continuing to develop clear and explicit paragraphs to ensure Hand over oil export revenues to the central government.   

He added that "most of the political blocs are working to support and support the decisions of the Federal Court, which stipulated not to hand over the amounts of the region from the central government unless the region delivers oil and gas revenues," noting that " the decision of the Paris International Court, which obligated the region to stop smuggling oil abroad, came at the right time.

Regarding the completion of the amendments to the points of disagreement in the budget, Al-Sultani pointed out that "the House of Representatives seeks to come up with a specific formula for the budget in which the rights of all parties to the Iraqi people are equal after two years of not approving the general budget."

* The demands of the blocs impede the budget 

• The region's oil impedes the budget... Will the Sudanese agreements be a dead letter? 

 

In addition, a member of the House of Representatives, Thaer Al-Jubouri, revealed on Monday the existence of pending files that still hinder the adoption of the general budget law, while stressing that the continuation of some political blocs demanding more than their rights is still the most prominent obstacle to voting on the law officially.

Al-Jubouri said in an interview with the Information Agency that "the parliament is working to study and address the financial deficit of the budget in order to proceed to reduce it to proportions commensurate with the government program," noting that "there are still files that disrupts the adoption of the general budget law in the House of Representatives."

He adds that "the continuation of some political blocs demanding more than their rights is still the most prominent obstacle to voting on the law officially," pointing out that "the Finance Committee is still working during the meetings to dissolve the problems and disputes over the percentages and "as of some provinces."

The parliament's quest to approve the budget in conjunction with the work of the current government to end all the problems left by the previous caretaker government in order to start implementing the ministerial curriculum that depends on passing the budget, which faces many obstacles, remains a dead letter without voting on the draft budget officially under the dome of parliament.

[yota691]

The Presidency of the Kurdistan Region responds to the news of Nechirvan Barzani's "rejection" of a request by Al-Sudani about oil contracts

2023.05.15 - 22:12

 

Baghdad - Nas   

On Monday, the Presidency of the Kurdistan Region refuted reports of "a refusal by the President of the Region, Nechirvan Barzani," to the Prime Minister's request regarding the details of the region's oil contracts.  

  

  

  

The Presidency of the Kurdistan Region stated in a statement, which "NAS" received a copy of, (May 15, 2023), that "some news outlets in Iraq and the Kurdistan Region published news stating that at the end of last week, the President of the Kurdistan Region, Nechirvan Barzani, rejected a request for the Prime Minister of the federal government in a meeting between them About revealing the details of the Kurdistan region's oil contracts.  

  

The statement added; That "this news is entirely fabricated and far from the truth, and there was no meeting or request on this subject, and there is no ambiguity in the oil contracts of the Kurdistan region."  

[yota691]

Reuters: Kurdistan's oil exports fall into the whirlpool of Turkish election turmoil

2023.05.15 - 22:51

 

Baghdad - people  

Informed sources said that the oil operators in the Turkish port of Ceyhan did not receive any instructions to prepare for the resumption of exporting Kurdistan region's oil.  

 

  

Reuters said: "Iraqi government officials blame the Turkish elections for delaying the resumption of oil exports."  

  

The agency added, quoting the sources, "The Turkish oil pipeline operator (Botas) is still waiting for Ankara's order to resume oil exports."  

[yota691]

The Presidency of Kurdistan refutes news related to the disclosure of the region's oil contracts

2023-05-15 15:04

 

 

Shafaq News/ The Kurdistan Region Presidency refuted, on Monday, the news claiming that the President of the Region, Nechirvan Barzani, refused the Prime Minister's request regarding the details of the region's oil contracts.

 

 

 

And the Kurdistan Region Presidency mentioned in a statement received by Shafaq News agency; Some news outlets in Iraq and the Kurdistan Region published news stating that at the end of last week, the President of the Kurdistan Region, Nechirvan Barzani, rejected a request by the Prime Minister of the Federal Government in a meeting between them about revealing the details of the Kurdistan Region's oil contracts.

 

The statement added; This news is entirely fabricated and far from the truth, and there was no meeting or request on this subject, and there is no ambiguity in the oil contracts of the Kurdistan Region.

[yota691]

A specialist answers.. What are the available options to face the interruption of Kurdistan's oil exports?

2023.05.19 - 10:16

 

Baghdad - people  

On Friday, the economist and professor of economics at the University of Basra, Nabil Al-Marsoumi, explained the available options to face the interruption of Kurdistan region's oil exports.  

  

 

  

Al-Marsoumi stated in a post followed by “NAS” (May 19, 2023), that “in light of the Turkish BOTAS company’s disregard of the Iraqi request to resume exporting Kurdistan and Kirkuk oil via the Iraqi-Turkish line, and invoking flimsy arguments related to the line being damaged by the earthquake that Turkey was exposed to in the summer.” And the need to maintain it, which may extend to a few more months, causing severe damage to oil revenues by preventing about half a million barrels from being exported.  

  

He added, "There are limited options that Iraq can resort to if the Iraqi oil outage extends for a longer period, including:  

  

First: Directing the largest possible amount of Kurdistan and Kirkuk oil for local consumption by refining it in the Al-Sumoud refinery with a capacity of 140,000 barrels per day, the Kirkuk refinery with a refining capacity of 56,000 barrels per day, the al-Siniyah refinery with a capacity of 30,000 barrels per day, the Kasak refinery with a capacity of 20,000 barrels per day, and a modern refinery With a capacity of 16,000 barrels per day, and Qayyarah with a capacity of 10,000 barrels per day.  

  

Second: Enhancing the region's exports of crude oil to Turkey through tanks, as the Kurdish Kar company currently exports more than 40,000 barrels per day from the Khurmala field, and this amount can be increased, provided that it is included in the financial accounts in the 2023 budget.  

  

Third: The agreement with Jordan to increase the quantities of crude oil exported to it, especially since Jordan currently imports about 150,000 barrels per day, while Iraq's current exports to Jordan do not exceed 10,000 barrels per day.  

  

Fourth: In view of the low cost of exporting oil from Basra by sea to $1.35 per barrel, it is necessary to develop the export capacity of Iraqi oil from the south by sea to 6 million barrels by extending two marine pipelines with a capacity of 48 inches, rehabilitating the ports of Basra and al-Amiya, building an offshore platform, and making measuring devices.  

  

Fifth: It is very important to search for strategic solutions that increase the flexibility of exporting Iraqi oil by diversifying export outlets and subjecting these solutions to economic and technical evaluation away from the political side.  

[yota691]

The continued suspension of Kurdistan's oil exports to Turkey enters the sector with a dark tunnel

l 3 hours ago

Sky News Arabia - Abu Dhabi

•  

 

An oil field in the Kurdistan region

Oil production from the Kurdistan region of Iraq continued to decline, with no indications of resuming export pumping to the Turkish port of Ceyhan, after a continuous halt for nearly two months.

Turkey stopped northern Iraq's exports of 450,000 barrels per day, via the Iraqi-Turkish pipeline, on March 25, after an arbitration decision by the International Chamber of Commerce .

The Chamber ordered Turkey to pay compensation to Baghdad in the amount of $1.5 billion for the unlicensed exports carried out by the Kurdistan Regional Government of Iraq between 2014 and 2018.

It is estimated that the 59-day stoppage has cost the Kurdistan Regional Government more than $1.5 billion.

The halt, whose results were exacerbated by the limited storage capacity in the region, led to the halting of most of the region's production of 450,000 barrels per day within weeks.

Even the fields that continued to produce after the pipeline was stopped have now had to stop or reduce production. A spokesman for Genel Energy , which operates the Taq Taq field , said that the field is no longer producing and pumping to storage facilities, and the field was producing 4,500 tons. barrels per day previously.

A source familiar with the operations of the Khurmal field said that the field is currently producing about 50,000 barrels per day, which represents a decrease from 100,000 barrels per day a month ago and 135,000 barrels per day before the pipeline to Turkey stopped.

The Iraqi Oil Minister, Hayan Abdul-Ghani , said in the middle of this month that Iraq wants to resume oil exports through a pipeline from the Kurdistan region in northern Iraq to the Turkish port of Ceyhan , but it is waiting for Turkey's approval.

In turn, the Kurdistan Regional Government said in a previous statement that it "has fulfilled all its obligations based on the agreement, and is awaiting a final agreement between the federal government and the Turkish government to resume exporting Kurdistan's oil."

[yota691]

Iraq Oil Output Continues To Fall Amid Turkey Spat

By Alex Kimani - May 22, 2023, 11:30 AM CDT

Oil production in Iraq’s semi-autonomous Kurdistan Regional Government (KRG)-ruled region has continued to drop, extending a stoppage that has lasted nearly two months. Export flows to Türkiye's Ceyhan port show few signs of restarting months after Ankara halted Iraq’s 450,000 barrels per day (bpd) of exports through the Iraq-Türkiye pipeline on March 25 following an ICC ruling that Türkiye should pay Baghdad damages of $1.5 billion for unauthorized exports by the KRG.

The stoppage is estimated to have cost the KRG more than $1.5 billion, with fields that had continued producing are now offline or operating with reduced output. About 10 days ago, The Iraqi State Organization for Marketing of Oil notified the Turkish state energy company Petroleum Pipeline Corporation of resuming export and loading operations. Lat month, the Iraqi federal government and the Kurdish regional government signed an agreement to resume Kurdish oil exports via Türkiye. However, Türkiye continued to halt the oil flow, saying it wants to negotiate the arbitration before exports resume. Iraq's economy relies heavily on crude oil exports, with crude accounting for more than 90 percent of the country's revenues.

The delay in resumption of exports comes at a time when French oil and gas multinational TotalEnergies (NYSE:TTE) finally reached an agreement with the government of Iraq to start a long-delayed $27 billion energy project.

 

 

The two parties first struck the deal back in 2021 that would see Total build four oil, gas and renewables projects in southern Iraq over 25 years with an initial investment of $10 billion. Unfortunately the giant project was shelved amid disputes and squabbling between Iraqi politicians over terms of the deal.

However, last month Iraq agreed to a smaller 30% stake in the project, setting in motion a deal that could lure foreign investment back into the country. After years of instability, Iraq has been enjoying a period of relative stability, increasing the chances of foreign investors returning to the country.

"The government of Iraq confirmed the whole contract, no modification at all ... so that was for me more than good news," Total Chief Executive Patrick Pouyanne has told Reuters.

[yota691]

Oil production from Kurdistan has declined with the cessation of its export through Türkiye

• Time: 05/22/2023 21:36:46
•  
• Read: 2,769 times

  

{Economic: Al Furat News} Oil production from the Kurdistan region continued to decline, with no indications of resuming export pumping to the Turkish port of Ceyhan, after a continuous halt for nearly two months.

Turkey stopped northern Iraq's exports of 450,000 barrels per day through the Iraqi-Turkish pipeline on March 25, after an arbitration decision by the International Chamber of Commerce.

The chamber ordered Turkey to pay Baghdad $1.5 billion in compensation for unlicensed exports made by the Kurdistan Regional Government of Iraq between 2014 and 2018.

It is estimated that the 59-day stoppage has cost the KRG more than $1.5 billion.

The stoppage, whose results were exacerbated by the limited storage capacity in the region, led to the cessation of most of its production, amounting to 450,000 barrels per day, within weeks. Even fields that continued to produce after the pipeline stopped have now had to stop or cut production.

A spokesman for Genel Energy, which operates the Taq Taq field, said that the field is no longer producing and pumping to storage facilities. The field previously produced 4,500 barrels per day. While a source familiar with the operations of the Khormal field confirmed that the field is currently producing about 50 thousand barrels per day. This is down from 100,000 bpd a month ago and 135,000 bpd before the pipeline to Turkey stopped.

Iraq asked Turkey this month to resume pipeline pumping and loading operations at Ceyhan port on May 13.

An official in the Iraqi oil sector said that the Turkish company "Botas" for pipelines said that it needs more time to verify the technical feasibility of the pipeline before resuming pumping.

He added that the "BOTAŞ" company has not yet received instructions from the Turkish authorities, citing unofficial contacts with officials in the Turkish energy sector.

Regarding the expected date for the resumption of Iraqi oil exports via Turkey, the same official said: "We are talking about weeks, not days, as an expected time frame for the resumption of exports. This issue is now more political than technical," noting that Iraqi officials previously attributed the delay in resuming oil pumping to the elections. Turkey, which is scheduled to bring down the curtain next Sunday, in a second round to resolve the presidential race between current President Recep Tayyip Erdogan and opposition candidate Kemal Kilicdaroglu.