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

[yota691]

An upcoming meeting in order to resume exporting Kurdistan's oil via Türkiye

• Time: 06/15/2023 14:49:44
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• Read: 611 times

  

{Economic: Al Furat News} A Turkish delegation intends to meet with Iraqi officials in the oil sector in Baghdad on June 19 to discuss the resumption of oil exports from northern Iraq, according to what the Iraqi Undersecretary of Oil for Extraction Affairs, Basem Muhammad, told Reuters on Thursday.

 

He added, "The two parties reached an agreement that it is necessary to resume oil exports as soon as possible, and we are ready to pump 500,000 barrels of oil per day in the event of a resumption of pumping."

 

Turkey stopped exports amounting to 450 thousand barrels per day from northern Iraq through the Iraqi-Turkish pipeline on March 25 after the International Chamber of Commerce issued its ruling in an arbitration case.

[yota691]

Baghdad and Ankara are discussing the resumption of oil exports from northern Iraq

 

- 15-06-2023 12:13 PM - Number of readings: 2993

Officials from the Turkish and Iraqi sides hinted today, Thursday, that the file of resuming oil exports from northern Iraq will be discussed during the coming period.

"A Turkish delegation will meet with Iraqi oil officials in Baghdad on June 19 to discuss the resumption of oil exports from northern Iraq," Undersecretary of the Iraqi Oil Minister for Extractive Affairs Basem Muhammad told Reuters.

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. Officials in Erbil indicated that Iraq is still awaiting a response from Turkey regarding the request to resume exports.

Turkey had stopped Iraq's exports of 450,000 barrels per day through the oil pipeline that extends from the semi-autonomous Kurdistan region in northern Iraq to the Turkish port of Ceyhan on March 25.

[yota691]

Oil announces the date of the Iraqi-Turkish meeting to discuss the resumption of oil exports

2023.06.15 - 08:21

 

Baghdad - people  

Baghdad and Ankara have reached a date for a meeting to discuss the resumption of Iraqi oil exports from the Kurdistan region, which was halted on March 25 by an international decision.  

   

Iraq had won an arbitration case that it filed before the Arbitration Board of the International Chamber of Commerce in Paris against Ankara 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".  

  

The Undersecretary of the Ministry of Oil for Extraction Affairs, Bassem Muhammad Al-Abadi, said in a statement to the official newspaper, followed by “NAS” on Thursday (June 15, 2023), that it was agreed with Turkey to hold a meeting in Baghdad on the 19th of this month to discuss a mechanism for pumping crude oil back from the Kurdistan fields to Turkish port of Ceyhan.  

  

Al-Abadi added that the two parties had reached, during the past period, through the exchange of messages, the need to adhere to the resumption of exports as soon as possible, explaining that Ankara attributed the delay in resuming exports to the maintenance and examination work of the Turkish pipeline.  

  

And the Undersecretary for Extraction Affairs continued, that the export rate is stable at 3 million and 300 thousand barrels per day through the ports of Basra, in compliance with Iraq’s OPEC Plus determinants to support the balance of the price of a barrel in the global market, noting that the Ministry of Oil is ready to resume pumping oil through the Kurdistan region at a rate of 500 thousand barrels per day. .  

[yota691]

Oil announces the date of the Iraqi-Turkish meeting to discuss the resumption of oil exports

energy
   

Economy News _ Baghdad
Baghdad and Ankara have reached a date for a meeting to discuss the resumption of Iraqi oil exports from the Kurdistan region, which was halted on March 25 by an international decision.  

Iraq had won an arbitration case that it filed before the Arbitration Board of the International Chamber of Commerce in Paris against Ankara 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".  

The Undersecretary of the Ministry of Oil for Extraction Affairs, Basem Muhammad al-Abadi, said in an interview with the official newspaper, followed by "Al-Iqtisad News", that it was agreed with Turkey to hold a meeting in Baghdad on the 19th of this month to discuss a mechanism for re-pumping crude oil from the Kurdistan fields to the Turkish port of Ceyhan.  

Al-Abadi added that the two parties had reached, during the past period, through the exchange of messages, the need to adhere to the resumption of exports as soon as possible, explaining that Ankara attributed the delay in resuming exports to the maintenance and examination work of the Turkish pipeline.  

And the Undersecretary for Extraction Affairs continued, that the export rate is stable at 3 million and 300 thousand barrels per day through the ports of Basra, in compliance with Iraq’s OPEC Plus determinants to support the balance of the price of a barrel in the global market, noting that the Ministry of Oil is ready to resume pumping oil through the Kurdistan region at a rate of 500 thousand barrels per day. .  

 

 

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Views 47

Added 06/15/2023 - 8:44 AM

[6ly410]

New Iraqi budget law strengthens Baghdad's hand over Kurdistan region's oil sector

•  
• New Iraqi budget law strengthens Baghdad's hand over Kurdistan region's oil sector | S&P Global Commodity Insights (spglobal.com)
•  

 

HIGHLIGHTS

KRG funding contingent on giving 400,000 b/d to SOMO

Kurdish output still shut in by Iraq-Turkey pipeline spat

Oil and gas investments imperiled by politics

 

Already reeling from the months-long suspension of its crude exports, Iraq's semiautonomous Kurdistan region may see its lifeblood oil sector further hemmed in with the passage of the federal budget.w

 

The budget, passed June 12 following four days of late-night voting and

intense debates within Iraq's parliament -- including on controversial amendments decried by Kurdish officials -- calls for $152 billion in spending, allocated for the years 2023, 2024 and 2025.

For Kurdistan, it essentially locks in the region to handing over 400,000 b/d of its crude production to federal oil marketer SOMO, in order to receive its agreed 12.6% of federal funding. To many Kurds, it paves the way for Baghdad to take more control over the region's oil exports and budget and could complicate plans to revive shuttered crude production.

As it stands, the Kurdistan Regional Government has no way of pumping anywhere close to 400,000 b/d, with its lone pipeline outlet, to the Turkish port of Ceyhan, shuttered over a political and financial dispute between Baghdad and Ankara.

"Regardless of what is agreed in the budget and the shenanigans in Parliament, resumption of oil export via Ceyhan is key for the Kurdistan Region of Iraq's oil sector," said Shwan Zulal, managing director of London-based Carduchi Consulting. "Needless to say, Iraq is losing an enormous amount of revenues and the KRG's deficit is only growing while the dispute over oil exports is unresolved."

The KRG had previously independently marketed its crude until an international arbitration ruling in March said such sales via Ceyhan violated a bilateral agreement between Turkey and Iraq.

Turkish authorities subsequently closed the pipeline, and Kurdish production has cratered as a result -- from a typical level of about 450,000 b/d to just 22,000 b/d in April, according to SOMO data.

As a result, the Mediterranean market has been deprived of a typically robust supplier of sour crude, with operators in Kurdistan having to turn off the taps as crude storage facilities reached maximum capacity. A prolonged standoff could further imperil oil and gas investment, many companies have said.

 

OPEC cuts

 

By conditioning the KRG's share of the budget on supplying SOMO with 400,000 b/d of crude, even with the restart of exports, Kurdistan could be vulnerable to disruptions, such as field outages or attacks. The region's oil and gas operations have been targeted several times by drone and missile attacks over the past few years, in strikes mostly attributed to Iranian affiliated groups opposed to Kurdish autonomy.

Lawk Ghafuri, a political analyst and former head of foreign media affairs for the KRG, said future OPEC cuts could make it difficult for Kurdistan to meet its 400,000 b/d target.

Iraq, which has often accused the KRG of not sharing the load on the country's pledged OPEC quotas, in April agreed to a voluntary 211,000 b/d production cut on top of its existing 372,000 b/d reduction from October levels, as the producer bloc and its allies seek to boost oil prices. That limits Iraq to a quota of 4.21 million b/d. For May, SOMO reported the country's output at 3.955 million b/d, which means a full resumption of KRG production would likely put Iraq above its quota.

"If there are more cuts by OPEC in the future and the KRG would be responsible to do the cuts and if KRG can not supply 400,000 b/d to SOMO, then the KRG would have trouble getting its budget," Ghafuri said.

The federal Iraq oil ministry and SOMO did not respond to requests for comment.

In a statement June 13, KRG president Nechirvan Barzani said the way the budget was passed "does not serve the political process, the situation and the future of Iraq."

Oil and gas law

 

Efforts to draft a comprehensive oil and gas law that would govern the KRG's crude sales have long been stalled, with no prospect of resolution. For now, the budget will stand in for the oil and gas law, weakening the KRG's hand, by putting its financing in the hands of SOMO, said Bilal Wahab, a senior fellow at the Washington Institute for Near East Policy.

The budget sets "unhelpful precedents for the KRG" with the requirement to hand over its crude to SOMO, Wahab said, and will "fundamentally impact the KRG's ability to make financial decisions."

The budget also includes a clause allowing Baghdad to intervene in intra-Kurdish disputes over funding allocations. The ruling Kurdistan Democratic Party controls Erbil and Duhok provinces, while the Patriotic Union of Kurdistan governs Sulaimani province.

Barzani expressed worries that Baghdad could make further budget cuts to the Kurdistan region in the future. From 2014, Baghdad has regularly cut budget allocations to the KRG to pressure the region over its independent oil exports.

"There must be full assurance that the financial entitlements and wages of the Kurdistan Region employees will not be delayed or neglected for political reasons," Barzani said.

[horsesoldier]

A good forcefully applied criminal hand to keep these renegades in line is what's needed here.

This is what's known as sarcasm folks, so don't anyone get their panties in a knot.

[yota691]

Iraq and Turkey are in talks to resume oil exports from the Kurdistan Region

08:19 - 15/06/2023

It has been read 6602 times

 

 

 

Baghdad

and Ankara have set a date for a meeting to discuss the resumption of oil exports from the Kurdistan Region, which has been suspended since March 25, the Iraqi Deputy Oil Minister for Extraction Affairs said.

Iraqi Deputy Oil Minister Bassem Mohammed Abadi told Sabah newspaper that they have agreed to meet with the Turkish government on November 19 to discuss the resumption of oil exports from the Kurdistan Region through pipelines to the port of Ceyhan.

 In March this year,  crude oil exports from the Kurdistan Region through the port of Jayhan were suspended 

Exports of crude oil from the Kurdistan Region of Iraq (KRG) have been suspended after Iraq won a lawsuit at the International Court of Arbitration in Paris in March.

He said that in the past, through the exchange of messages between Ankara and Baghdad, the need to commit to the resumption of oil exports from the Kurdistan Region as soon as possible, Ankara attributed the delay to the repair and inspection of oil pipelines to Turkey.

Iraq's oil production is expected to be 3.5 million barrels per day, of which  400,000 barrels belong to Kurdistan

According to the Iraqi budget law for 2023, 2024 and 2025, the price of oil is set at $ 70 a barrel and oil exports are expected to be 3.5 million barrels per day, including 400,000 barrels from the semi-independent Kurdistan region.

The Ministry of Oil is ready to resume oil exports from the Kurdistan Region

The Iraqi Deputy Oil Minister for Extraction Affairs said the ministry is ready to resume oil exports through the Kurdistan Region of 500,000 barrels per day.

[yota691]

Two parliamentary proposals to export oil instead of the Ceyhan pipeline

The first  2023/06/18

 

 

 Baghdad: Rula Wathiq

The Oil, Gas and Natural Resources Committee in the House of Representatives put forward two proposals to implement them in the event that Turkey insists on preventing the export of oil through the Ceyhan pipeline. Committee member Ali al-Mashkour said, in an interview with "Al-Sabah":

 

The committee "suggested to Oil Minister Hayan Abdul-Ghani to export the Kurdistan region's oil share through the marketing company "SOMO" through the south." Al-Mashkoor added,

 

"The second proposal is to proceed with maintaining and maintaining the Iraq-Baniyas line, which passes through Syria, and exporting the oil extracted through it," noting that "Iraq will follow all diplomatic methods with Turkey in order to resume pumping oil through the Ceyhan line."

 

 And the deputy added, "In the event that Ankara insists on not implementing the decision of the International Arbitration Court and the continued closure of the oil pipeline, causing Iraq losses amounting to millions of dollars per day, it will proceed with the implementation of these two proposals."

[yota691]

Two parliamentary proposals to export oil instead of the Ceyhan line

• Time: 06/18/2023 00:24:47
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• Read: 2,847 times

  

{Local: Al Furat News} The Parliamentary Oil, Gas and Wealth Committee put forward two proposals to implement them in the event that Turkey insists on preventing the export of oil through the Ceyhan pipeline.

 

Committee member Ali Al-Mashkour said, in a press statement, that: "The committee proposed to the Minister of Oil, Hayan Abdul-Ghani, to export the share of the Kurdistan region's oil through the marketing company "SOMO" through the south."
He added, "The second proposal is to proceed with maintaining and maintaining the Iraq-Baniyas line that passes through Syria and exporting the oil extracted through it," noting that "Iraq is pursuing all diplomatic ways with Turkey in order to resume pumping oil through the Ceyhan line. 
" That "in the event that Ankara insists on not implementing the decision of the International Arbitration Court and the continued closure of the oil pipeline, causing losses amounting to millions of dollars per day for Iraq, it will proceed with the implementation of these two proposals."

[yota691]

Parliamentary Oil presents two alternative proposals to resume Kurdistan's oil exports

2023.06.18 - 09:20

 

Baghdad - Nas  

The Committee on Oil, Gas and Natural Resources in the House of Representatives put forward two proposals to implement them in the event that Turkey insists on preventing the export of oil through the Ceyhan pipeline.  

   

Committee member Ali al-Mashkour said, in a statement to the official newspaper, followed by “Nass” on Sunday (June 18, 2023), that the committee “suggested to Oil Minister Hayan Abdul Ghani to export the Kurdistan region’s oil share through the marketing company “SOMO” via the south.”  

  

Al-Mashkoor added, "The second proposal is to proceed with maintaining and maintaining the Iraq-Baniyas line, which passes through Syria, and exporting the oil extracted through it," noting that "Iraq will follow all diplomatic methods with Turkey in order to resume pumping oil through the Ceyhan line."  

  

And the deputy added, "In the event that Ankara insists on not implementing the decision of the International Arbitration Court and the continued closure of the oil pipeline, causing Iraq losses amounting to millions of dollars per day, it will proceed with the implementation of these two proposals."  

[yota691]

Today.. Iraqi-Turkish talks about resuming the region's oil exports

• Time: 06/19/2023 09:27:20
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• Read: 1,313 times

  

{Politics: Al-Furat News} Today, Monday, a meeting will be held between Iraq and Turkey to discuss the resumption of exporting the oil of the Kurdistan region, about three months after it was stopped.

 

Today, representatives of the energy sector in the governments of Turkey, Iraq and the Kurdistan region will meet to find a solution to the problem of stopping the export of oil from the Kurdistan region and Kirkuk through the Turkish port of Ceyhan, which has stopped since March 25.

The deputy head of the Parliamentary Oil and Gas Committee, Nehru Rwandzi, said today, Monday, that "the meeting will be held in Baghdad with the participation of representatives of the Turkish Ministry of Energy, the Ministry of Natural Resources of the Kurdistan Region, the Iraqi Marketing Company (SOMO) and the Iraqi Ministry of Oil."
The volume of exports amounted to about 400 thousand barrels of oil per day, in addition to stopping the export of between 75 thousand and 80 thousand barrels of Kirkuk oil, which was exported through the same pipeline.

The export halt followed the decision of the Paris-based International Chamber of Commerce (ICC) arbitration court.

Rwandzi added, "The main obstacle to resuming the export of Kurdistan region's oil is a complaint filed by Iraq against the export of Kurdistan region's oil through the Turkish port of Ceyhan from 2019 until the time the export stopped, as it demands compensation amounting to about two billion dollars."

The first complaint was against the export of Kurdistan's oil in the period (2016-2018), which demands that Turkey pay compensation to Iraq amounting to about $1.5 billion.
And stopping the export of oil from the Kurdistan region and Kirkuk causes a loss for the region and Iraq amounting to about one billion dollars per month, in addition to the loss of Turkey during the recent oil export cessation period, which exceeds 70 million dollars from the wages it receives for the passage of oil through its territory.

The deputy head of the Parliamentary Oil and Gas Committee revealed that Turkey is asking Iraq to withdraw its second lawsuit, in order to avoid paying compensation.

[yota691]

Iraq and Turkey discuss the resumption of Kurdistan's oil exports

 

June 19, 2023

Baghdad / Obelisk Al-Hadath: Two officials in the oil sector said that a technical delegation in the field of energy from Turkey met with Iraqi officials in the oil sector in Baghdad to discuss the resumption of oil exports from northern Iraq.

 

And the Iraqi Undersecretary of Oil for Extractive Affairs, Bassem Muhammad, had said before the meeting that the two parties had reached an agreement that it was necessary to resume oil exports as soon as possible, and we were ready to pump 500,000 barrels of oil per day in the event of resumption of pumping, according to Reuters.

 

Turkey stopped exports amounting to 450 thousand barrels per day from northern Iraq through the Iraqi-Turkish pipeline on March 25 after the International Chamber of Commerce issued its ruling in an arbitration case.

 

The Chamber ordered Turkey to pay $1.5 billion in compensation to Baghdad for the damages it suffered from the Kurdistan Regional Government of Iraq's export of oil without a permit from the government in Baghdad between 2014 and 2018.

Reuters calculations found that the 80-day outage has cost the KRG more than $2 billion.

 

The crude oil pipeline extends from the Kurdistan region in northern Iraq to the Turkish port of Ceyhan. The Kurdistan Regional Government began exporting crude independently of the Iraqi federal government in 2013, a move Baghdad deemed illegal.

 

Attempts to restart the pipeline were delayed by last month's Turkish presidential election and discussions between the Iraqi government's Oil Marketing Company (SOMO) and the KRG over an export deal that has now been reached.

[gregp]

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[Laid Back]

23 minutes ago, gregp said:

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Welcome Back gregp.

[gregp]

31 minutes ago, Laid Back said:

Welcome Back gregp.

Thanks for your help SB!👍🏻👍🏻

[yota691]

A legal expert reveals the details of the Paris court's decision and the possibility of Baghdad, Erbil and Ankara meeting to resume oil exports

Monday 19, June 2023 16:46 | Economical Number of readings: 587

Baghdad / NINA / - The legal expert, Counselor Salem Hawass, revealed the content of the decision of the Paris-based International Chamber of Commerce Arbitration Court, which was issued by the Arbitral Tribunal of the International Chamber of Commerce in Paris in favor of the federal government.

Hawass said in a statement, "This decision was issued after Iraq filed a lawsuit against Turkey for violating the provisions of the Iraqi-Turkish pipeline agreement signed in 1973, which stipulates that the Turkish government must comply with the instructions of the Iraqi side regarding the movement of exported crude oil to all storage and disposal centers and the station." final".

Hawass stressed, "The meeting, which will be held in Baghdad today with the participation of representatives of the Turkish Ministry of Energy, the Ministry of Natural Resources of the Kurdistan Region, the Iraqi Marketing Company (SOMO) and the Iraqi Ministry of Oil, is very important because it will achieve profits in addition to Turkey paying the amount of the judgment decision and the lawsuit with compensation, indicating," This meeting, if it yields results legally, will bring Iraq one and a half million dollars a day, and otherwise it will achieve a monthly loss of approximately 45 million dollars, as Iraq lost since the emergence of the legal problem and passing through the export cessation and until now with the differences in export imports before and after the decision.” Hawass indicated that “H Company

” KN Energy, which operates in the region and is headquartered in Dallas, Texas, had sent a letter to members of the US House of Representatives last year, in which it explained that stopping exports through the pipeline would lead to the collapse of the economy of the Kurdistan region of Iraq.

And he continued, "This decision coincided with the decision of the Federal Court in Case No. 59 / Federal / 2012 and its unification 110 / Federal / 2019 on 2/15/2022, which included the ruling on the unconstitutionality of the oil and gas law of the Kurdistan Regional Government No. (22) of 2007 and its cancellation."/ End8

[yota691]

Lengthy discussions are needed.. "Reuters" reveals the details of the meeting between Iraq and Turkey regarding Kurdistan's oil

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18:00  2023-06-19  72  Policy 0

 

Today, Monday, Reuters International Agency revealed Iraqi-Turkish talks regarding the resumption of oil exports through the port of Ceyhan, while indicating that the resumption of exports will need longer discussions and at higher political levels.

 

Reuters quoted officials in the Iraqi oil sector as saying that a Turkish technical delegation met with Iraqi oil officials in Baghdad today, Monday, to discuss the resumption of oil exports from northern Iraq.

 

An official close to the talks, who asked not to be named, revealed: “We are discussing all the technical aspects related to resuming oil exports, but the decision to resume pumping will not happen today, and we have to hold more meetings.”

 

The other oil official indicated that Turkey is ready to negotiate the amount of compensation as well as seek clarification of issues related to other open arbitration cases.

 

The other official said, "The decision to resume pumping oil needs talks at higher political levels, because the obstacles that prevent the resumption of oil exports are more political than technical."

 

Attempts to restart the pipeline were delayed by last month's Turkish presidential election and discussions between the Iraqi government's Oil Marketing Company (SOMO) and the Kurdistan Regional Government over an export deal that has now been reached.

 

Hopes for the resumption of work were raised when, on June 3, Turkish President Recep Tayyip Erdogan appointed Alp Arslan Bayraktar as Minister of Energy in his new five-year government.

[yota691]

Held in Baghdad.. revealed the details of a Turkish-Iraqi meeting on Kurdistan's oil

2023-06-19 09:54

Shafaq News/ Reuters revealed, on Monday, the details of a meeting held in the capital, Baghdad, between a technical delegation from the Turkish Ministry of Energy, and Iraqi officials in the oil sector.

 

 

The agency quoted, in a report translated by Shafaq News Agency, Iraqi officials, as saying, "The meeting witnessed the discussion of the resumption of oil exports from the Kurdistan Region through the Turkish port of Ceyhan."

 

"After this meeting, further talks are still needed in order to resume oil exports," the two officials added.

 

They indicated that "there are discussions in all technical aspects related to restarting oil exports, and that a decision to resume flows will not happen today, without holding more meetings."

 

For his part, another oil official told Reuters that "Turkey wants to negotiate the size of the damages it was ordered to pay in the arbitration ruling and also seeks to clarify other open arbitration cases."

 

Turkey stopped exporting 450,000 barrels per day from the Kurdistan Region through the Iraqi-Turkish pipeline on March 25, 2023, after the International Chamber of Commerce in Paris issued its ruling in favor of Baghdad in an arbitration case.

 

Iraq, which is the second largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), exports about 85% of its crude oil through ports in the south of the country, but the northern route through Turkey still represents about 0.5% of global oil supplies.

 

In early June, the Iraqi Oil Minister, Hayan Abdul-Ghani, confirmed that Iraq is still negotiating with the Turkish side to resume exporting Kurdistan Region's oil through the port of Ceyhan.

[yota691]

Officials from Baghdad and Ankara are discussing the resumption of oil exports from northern Iraq

 

Oil drums bearing the Iraqi flag

 June 19, 2023 05:50 PM

Mubasher: Two Iraqi officials in the oil sector said that a Turkish technical delegation concerned with energy met Iraqi oil officials in Baghdad today, Monday; To discuss the resumption of oil exports from northern Iraq .

 

An official close to the talks added, according to "Reuters": "We are discussing all technical aspects related to the resumption of oil exports, but the decision to restart pumping will not happen today, and we need to hold more meetings . "

 

The other oil official indicated that Turkey wants to negotiate the amount of compensation that the chamber's decision decided to pay, as well as seeking to clarify matters related to other open arbitration cases .

 

The other official said that the decision to resume oil pumping needs talks at higher political levels. Because the obstacles to resuming oil exports are more political than technical.

 

Last March, Turkey stopped exports of 450,000 barrels per day from northern Iraq through the Iraqi-Turkish pipeline. After the International Chamber of Commerce issued its ruling in an arbitration case .

 

Turkey's decision to suspend exports followed a ruling in which the International Chamber of Commerce obligated Turkey to pay $1.5 billion in compensation to Baghdad; This is in compensation for the damages incurred by the Kurdistan Regional Government of Iraq exporting oil without a permit from the government in Baghdad between 2014 and 2018 .

 

Attempts to restart the pipeline have been delayed; Because of the Turkish presidential elections last month and discussions between the government-affiliated Iraqi Oil Marketing Company (SOMO) and the KRG over an export deal that has now been reached .

 

The pipeline was also transporting about 75,000 barrels per day of federal crude from Iraq's Kirkuk oil fields .

[ametad]

This sounds like promising development 👍🏼

[yota691]

An expert reveals the reason for the failure of Iraq and Turkey's negotiations to resume oil exports

2023.06.20 - 14:14

  

Baghdad - people  

On Tuesday, Professor of Economics at the University of Basra, Nabil Al-Marsoumi, revealed the reason for the failure of Iraq and Turkey's negotiations to resume oil exports.  

 

Al-Marsoumi stated in a post followed by "NAS" (June 20, 2023), that "the tripartite negotiations between Iraq and Turkey, in the presence of a delegation from Kurdistan, failed to re-export Kurdistan and Kirkuk oil through the Iraqi-Turkish line to the port of Ceyhan. The dispute centered on the following issues:  

  

First: Iraq refused to pay the fees for transporting oil through the Iraqi-Turkish oil pipeline during the period of stopping oil pumping since last March 25, because the stoppage was not a result of an Iraqi decision, but rather an independent international decision.  

  

Second: There are Turkish claims about the amount of money that Iraq must pay as a result of exporting Iraqi oil through the Turkish port of Ceyhan.  

  

Third: Turkey called on Iraq to withdraw the lawsuit related to compensation during the period 2018-2022 in preparation for canceling the amount of the fine decided by the International Chamber of Commerce Court in Paris, amounting to 1.471 billion dollars. Iraq may agree to this paragraph, which requires a political decision."  

  

Al-Marsoumi added, "Turkey is betting on Iraq's need for more money to cover the large deficit in the 2023 budget, especially since Iraq loses about a billion dollars a month due to the stopping of oil pumping through Turkey. In return, Turkey also needs to pump Iraqi oil again because stopping it costs it about two billion dollars annually." .  

  

He continued, "Turkey is also keen for Turkey to be a safe and reliable corridor for oil and gas pipelines, in addition to the fact that Turkey is one of the signatories to (bypassing the energy regulation), of which the passage of oil and gas pipelines is the most important component."  

  

He explained, "However, Turkey is trying to pressure Iraq to obtain concessions, such as reducing the amount of interest on the balance of compensation established for Iraq, or Iraq's final waiver of the amount of compensation with the continuation of high fees for the passage of oil from Kurdistan as it is now."  

  

And he indicated, "Turkey may also wave to put pressure on Iraq by calling for laying another pipeline in Turkish territory dedicated to transporting the region's oil that is not subject to the current pipeline agreement with Iraq, especially after the political tension between the Kurdistan Democratic Party and the coordination framework related to the 2023 budget."  

  

  

Earlier, two Iraqi officials in the oil sector told Reuters that a Turkish technical delegation concerned with energy met Iraqi oil officials in Baghdad on Monday to discuss the resumption of oil exports from northern Iraq.  

  

"We are discussing all technical aspects related to the resumption of oil exports, but the decision to restart pumping will not happen on Monday, and we need to hold more meetings," said an official close to the talks, who requested anonymity.    

  

Turkey stopped exports amounting to 450 thousand barrels per day from northern Iraq through the Iraqi-Turkish pipeline (TADAWUL: 2360) on March 25, after the International Chamber of Commerce issued its ruling in an arbitration case.    

  

The other oil official indicated that Turkey is willing to negotiate the amount of compensation that the Chamber's decision ruled that it should pay, as well as seeking to clarify matters related to other open arbitration cases.    

  

Turkey's decision to suspend exports followed a ruling in which the International Chamber of Commerce ordered Turkey to pay Baghdad $1.5 billion in compensation for damages it suffered from the KRG's export of oil without a permit from the government in Baghdad between 2014 and 2018.    

  

The other official said, "The decision to resume pumping oil needs talks at higher political levels, because the obstacles that prevent the resumption of oil exports are more political than technical."    

  

Attempts to restart the pipeline were delayed by last month's Turkish presidential election and discussions between the Iraqi government's Oil Marketing Company (SOMO) and the KRG over an export deal that has now been reached.    

  

Hopes for a restart were raised when Turkish President Recep Tayyip Erdogan appointed Alp Arslan Bayraktar as energy minister on June 3 in his new five-year government.    

  

Reuters estimates found that the KRG lost more than $2 billion due to the 80-day pipeline shutdown, based on exports of 375,000 bpd and the KRG's historic price cuts against Brent crude.    

  

The pipeline was also carrying about 75,000 barrels per day of federal crude from Iraq's Kirkuk oil fields.   

[yota691]

Details of the first meeting to resume exporting Kurdistan's oil

 

energy
   

Economy News _ Baghdad
Negotiations held by Iraqi officials in the energy sector and a Turkish technical delegation in Baghdad did not achieve any breakthrough regarding the resumption of Kurdistan region's oil exports, according to the London-based Al-Arab newspaper.
The newspaper stated, "The failure of the meeting was expected, because the issue is not related to technical aspects, but rather a political issue, and therefore holding such meetings, according to observers, is useless and absurd."

 

The meeting came more than two months after the region's oil exports stopped through the Turkish port of Ceyhan, amid speculation that the matter would take a long time, as Turkey is trying to exploit the situation in order to put pressure on Baghdad regarding compensation that Ankara is supposed to pay.

 

An official close to the talks, who requested anonymity, said: "We are discussing all technical aspects related to the resumption of oil exports, but the decision to restart pumping will not happen today, and we need to hold more meetings."

Turkey stopped exports amounting to 450 thousand barrels per day from northern Iraq through the Iraqi-Turkish pipeline on March 25 after the International Chamber of Commerce issued its ruling in an arbitration case.

 

The other oil official indicated that Turkey is willing to negotiate the amount of compensation that the Chamber's decision ruled that it should pay, as well as seeking to clarify matters related to other open arbitration cases.

 

Turkey's decision to suspend exports followed a ruling in which the International Chamber of Commerce ordered Turkey to pay Baghdad $1.5 billion in compensation for damages caused by the Kurdistan Regional Government of Iraq's export of oil without a permit from the government in Baghdad between 2014 and 2018.

 

The other official said, "The decision to resume oil pumping needs talks at higher political levels because the obstacles to resuming oil exports are more political than technical."

Attempts to restart the pipeline were delayed by the Turkish presidential elections last month and discussions between the Iraqi government's Oil Marketing Company (SOMO) and the Kurdistan Regional Government over a recently reached export deal. However, current indications indicate that Turkey will not allow a quick return to pumping oil through its port.

 

Observers believe that the Turkish demands are not limited only to reducing the compensation that it must pay, but also to agreeing with the Baghdad government on privileges that were available to it through its direct dealings with the Kurdistan government.

 

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Added 06/20/2023 - 12:58 PM

[ametad]

It’s time to export the oil through the south, bypass Türkiye and let the international court settle completely through financial settlement. This will take time, the oil needs to export south. 

[yota691]

Parliamentary Oil reveals the reasons for the disruption of Kurdistan's oil exports and Ankara's conditions for resuming them

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02:32  2023-06-22  90  local 0

 

A member of the Parliamentary Oil and Energy Committee, Kazem Al-Touki, revealed this evening, Wednesday, the reasons for the disruption of Kurdistan region’s oil exports through Jahan, and we ask Turkey to resume oil.

Al-Touki said, in a television interview followed by Al-Mutalaa, this evening, Wednesday, that: “Turkey claimed technically that there was an injury to the Ceyhan pipeline due to the earthquake; but the truth is that Turkey’s decision to stop oil exports has a political aspect, especially after the decision of the International Tribunal to stop exporting the oil of the Kurdistan region.” ". 
And he added, "The government has asked more than once to send a Turkish delegation to discuss the issue, and Turkey was awaiting Iraq's budget, especially with regard to exports through Ceyhan, and the federal government is the main affected, not Kurdistan, from stopping exports."
Al-Touki added, "There is an item in the budget that obliges the Kurdistan region to pay its oil money since 2003 to the federal government, and Turkey wants Baghdad to give up the case filed by international courts as a condition for resuming oil exports," pointing out, "One of the alternative solutions to the Ceyhan line is the development of the Aqaba line." ".
And he added, "Basra's oil ports are operating at their full maximum export capacity, and Iraq cannot raise its production capacity due to the stoppage of the Ceyhan pipeline. Oil is now produced, but it is not exported, and Iraq pays the investing companies even with the stoppage of exports."
Al-Touki pointed out that "the port of Faw will provide export flexibility to Iraq to double what it exports today," adding, "The regions of Najaf, Anbar and Nineveh have the lion's share in the sixth licensing round, as they include exploratory patches for free gas, and Iraq needs from 6 to 7 thousand cubic meters of gas."
And he noted that "if it is referred to the licensing rounds for solid companies, according to the statement of the Prime Minister and the Minister of Oil, then Iraq needs two to three years to invest gas," revealing "a defect in the contracts of previous licensing rounds that led to the non-investment of associated gas, and the four previous licensing contracts are tainted." Lots of bugs."
Regarding the social benefits in Dhi Qar, the representative of the province explained that: “Each oil company is supposed to allocate annually 5 million dollars, which the company spends and recovers from the Ministry of Oil. She's the sergeant."
And he went on to say, "After 2015, these sums were transferred to local governments and until 2023, the affected areas request this company for 28 million dollars that have not been spent yet and argue. For example, if the cost of one school, according to Iraqi contracts, is one billion dinars, the company raises the value to one billion and 800 dinars, noting that they are the same standards." ". 
"We have a water project that covers more than 40,000 people. It was submitted 3 years ago to this company, and its cost is one billion and 900 million dinars, and its capacity is 400 cubic meters, and it refuses to work on it. To get rid of these problems, we asked the Prime Minister to transfer the sums of social benefits to oil projects according to Iraqi contracts." ".

[screwball]

9 hours ago, yota691 said:

t flexibility to Iraq to double what it exports today," adding,

Wow!