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

[3n1]

6 minutes ago, CSM (R) Thack said:

Is anyone really surprised!?!?!🤦🏻

 

not in the least.....its the thieves cash cow ...... cheers

[screwball]

7 hours ago, CSM (R) Thack said:

Is anyone really surprised!?!?!🤦🏻

dont care really it wont affect we want......it will happen with or without

[horsesoldier]

21 hours ago, CSM (R) Thack said:

Is anyone really surprised!?!?!🤦🏻

After 20 years of riding this roller coaster 🎢 of Hell, if there are those out there that ARE surprised, they've been living under a great big freaking rock.

[yota691]

"Complicated discussions".. Türkiye is blackmailing Baghdad: There will be no oil export unless the US litigation is halted

Today, 16:15

 

Al-Ghad Press / translation 

Sources said that it is not expected to resume Iraqi oil flows to Turkey before October, when Turkish President Recep Tayyip Erdogan is likely to visit Baghdad, after the postponement of the visit that was scheduled for last August. 

 

Turkey halted oil export flows from northern Iraq on March 25, after an arbitration ruling by the International Chamber of Commerce ordered Ankara to pay Baghdad $1.5 billion in compensation for unauthorized exports by the KRG between 2014 and 2018 .

 

In April, Iraq petitioned a US federal court to enforce the ICC arbitration award. The sources said that the lack of progress in resolving this lawsuit was one of the reasons behind the postponement of Erdogan's visit in August .

 

A senior Turkish official said that Erdogan still intends to visit Baghdad and "wants to sign an agreement," but "so far, the concrete steps expected by Iraq have not been taken," which led to slow progress, according to a Reuters report translated by "Al-Ghad Press." . 

 

The source added that one of the steps that Ankara is seeking is to stop the US litigation, and as a result, Erdogan's visit is scheduled to take place in October .

 

Another source, an official at the Iraqi Foreign Ministry, said, "Until now, we have not received a specific timetable from Ankara regarding the expected date of the Turkish president's visit to Baghdad ."

 

" That could be the end of this month, or more likely in October, depending on the successful development of talks on energy issues that require longer than expected due to multiple thorny issues ."

 

An Iraqi oil official familiar with the talks said that energy officials in Baghdad and Ankara were "having complex discussions" and that resuming flows was "the most difficult issue," adding that it was "unlikely" to resume flows this month .

 

Two Iraqi oil officials who shut down the talks said Turkey had also sought a compromise to minimize damages to be paid to Iraq under the ICC arbitration.

 

Iraqi sources said earlier that Turkey wanted Iraq to drop a second arbitration case on exports covering the period from 2018 onwards .

 

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

 

Two informed sources said that the Kurdistan Regional Government has lost nearly $4 billion since oil flows to the Turkish port of Ceyhan stopped through a pipeline.

 

[yota691]

Iraq’s oil exports through Turkey will not resume before October

• Amr Salem
•  September 5, 2023
•  1446
•  

Workers walk through the Taq Taq oil field in Erbil, in the Kurdistan region of Iraq. Photo: Reuters

Baghdad (IraqiNews.com) – Oil exports from northern Iraq through the Turkish port of Ceyhan are not expected to resume before October 2023.

 

The resumption of oil flows will likely coincide with the visit of the Turkish President, Recep Tayyip Erdogan, to Baghdad after the trip scheduled for August was postponed, according to Reuters.

 

Turkey stopped Iraq’s exports of 450,000 barrels per day through the oil pipeline that extends from the Kurdistan region of Iraq to the Turkish port of Ceyhan on March 25.

The halt of oil exports from the Kurdistan region of Iraq cost the Kurdistan Regional Government (KRG) billions of dollars.

 

Turkey’s decision to suspend oil exports followed an arbitration decision issued by the International Chamber of Commerce (ICC) in Paris.

 

The decision obliged Turkey to pay Baghdad $1.5 billion in compensation for damages caused by the KRG’s export of oil without permission from the federal government in Baghdad between 2014 and 2018.

 

The KRG began exporting crude oil independently in 2013, a step Baghdad considered illegal.

 

Last month, the Iraqi Minister of Oil, Hayan Abdul-Ghani, met in the Turkish capital, Ankara, with the Turkish Minister of Energy and Natural Resources, Alparslan Bayraktar, and highlighted the importance of the oil pipeline between Iraq and Turkey.

 

The two officials emphasized the need to resume crude oil flows after finishing the rehabilitation processes, which the Turkish side described as necessary after the earthquake that struck Turkey last February.

[yota691]

Will Iraq face economic conditions for exporting oil through the port of Ceyhan? An oil expert explains

• Time: 09/07/2023 12:30:49
•  
• Read: 1,794 times

  

{Economical Euphrates News} The oil expert, Ali Nehme, explained today, Thursday, the conditions facing Iraq in importing gas through the pipeline extending to the port of Ceyhan without the approval of the federal government.

Nehme told {Euphrates News}: "Regarding Russian gas, Iraq is working to diversify gas sources to bypass the issue of US sanctions on Iran that impede the cash transfer of Iran's cash entitlements for importing gas from it," noting that "it may face some obstacles as a result of the conditions set by Turkey for re-export." Oil from the port of Ceyhan after Iraq won the international arbitration decision regarding the export of the region's oil through the Iraqi line extending to the port of Ceyhan without the approval of the federal government. 

He added, "This may lead to Turkey imposing a set of conditions that impede the import of gas from Russia, according to fair economic foundations." 

Opinions were divided in Iraq, between those who considered that the country had won politically after winning an international decision related to the export of the oil of the Kurdistan region, and was able to impose its prestige and legitimacy at the political level, and those who believed that this profit was offset by financial loss and economic damage estimated at about one billion dollars per month, due to the delay in the appeal. Oil flows amid a financial deficit in Iraq's annual budget, estimated at $50 billion.

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".

As a result of the decision, the export of Kurdistan's oil, amounting to 480,000 barrels per day, stopped on March 25, and the stopped flows represent only about 0.5% of the global oil supply, without resuming until today, as indicators of damage and financial losses amounted to more than one billion dollars per month. At $33 million per day, by calculating the average price per barrel at $70, according to oil experts.

This comes at a time when Iraq has been seeking for years to increase its daily production of oil, and Baghdad relies on crude oil exports to build its general annual budgets.

According to the draft budget law 2023, Iraq must export 3,500,000 barrels per day, of which 400,000 barrels are from the region, at a price of $70 per barrel, and most of it is exported from the Turkish port through the pipeline that extends from Kirkuk in the north of the country to Ceyhan. in Turkey.

Because of the export cessation, the region lost half of its monthly revenues, as a result of which its economic crises worsened, and it also caused a "big problem" for its employees, according to a previous statement by the region's Finance Minister, Awat Sheikh Janab.

And the cessation of Kurdistan's oil exports prompted several foreign companies, including American and Canadian, operating in the region to stop issuing its forecasts about production.

The Norwegian oil company “DNO” canceled its expectations for production in the region, as did the company “Genel Energy”, as it canceled its expectations for production in 2023, saying that it is no longer fit for advertisement in light of the closure of the pipeline between Iraq. and Turkey.

From.. Raghad Dahham

[yota691]

Parliamentary oil: The government has taken measures to ensure the disposal of the quantities of oil produced in the region

Economy

13:34 - 2023-09-07

The Parliamentary Oil Committee confirmed that the government has taken measures to ensure the disposal of the quantities of oil produced in the region.
A member of the committee, Kazem Al-Tuki, said that the export of oil, after it stopped via Turkish territory, the oil of the Kurdistan Region, it was agreed to transfer it to refineries, as well as export it to Jordan, which commissions a process through tanks towards Amman. 
He added that the government measures that followed the suspension of oil exports through Turkey, according to which the region's oil quantities amounting to four hundred thousand barrels per day were drained, in addition to the continuation of export according to the OPEC agreement through Basra. 
And he indicated that the issue of stopping exports through Turkish territory was not a technical issue, but rather a purely political one, after judicial decisions that stopped exports through Turkey. 

[ametad]

I’m loving this, good to hear that there are other options being presented in the northern region for exports. 

[yota691]

Report: The resumption of exporting "Ceyhan Oil" awaits Erdogan's visit to Baghdad

 

•  Yesterday, 10:04
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•  348

 

The Hellenic Shipping News website, which specializes in maritime shipping news, reported that Iraqi oil flows to Turkey are not expected to resume before October, as Turkish President Recep Tayyip Erdogan is likely to visit Baghdad, after postponing the visit that was scheduled for last August.

The Cyprus-based website quoted, in a report, informed sources as saying, “Turkey had stopped oil export flows from Iraqi Kurdistan on March 25, after a decision by the International Chamber of Commerce court ordered Ankara to pay compensation to Baghdad worth $1.5 billion for... Exports by the Kurdistan Regional Government between 2014 and 2018.”

The report also indicated that “in April, Iraq submitted a petition to a US federal court to implement the arbitration decision issued by the International Chamber of Commerce.”

According to the same informed sources, “the lack of progress in settling this lawsuit was one of the reasons behind postponing Erdogan’s visit in August.”

The report quoted a prominent Turkish official as saying, “Erdogan still intends to visit Baghdad and “wants to sign an agreement,” but “so far the expected concrete steps have not been taken by Iraq,” which has led to slow progress on this file.”

According to the same source, one of the steps that Ankara hopes to take is to stop the American litigation procedures, and as a result, Erdogan’s visit is scheduled to take place in October.

The report also quoted another official source in the Iraqi Foreign Ministry as saying, “So far we have not received a specific timetable from Ankara regarding the expected date of the Turkish President’s arrival in Baghdad.”

But the Iraqi official said, “The visit may take place at the end of this month, or most likely in October, depending on the success of developments related to the talks on energy issues, which require a longer time than expected due to multiple thorny issues.”

For his part, an Iraqi oil official familiar with the talks said that energy officials in Baghdad and Ankara are “holding complex discussions” and that resuming oil flows is “the most difficult issue,” adding that it is “unlikely” to resume flows this month.

Two Iraqi oil officials familiar with the talks said that Turkey is also trying to reach a settlement in order to limit the damage represented by paying Iraq under international court arbitration.

The report indicated that Iraqi sources had previously said that Turkey wants Iraq to drop a second arbitration case regarding exports covering the period from 2018 onwards.

The report noted that the Turkish Ministry of Energy did not respond to the news site’s requests for comment.

The report also mentioned that two informed sources recently said that the Kurdistan Regional Government has lost about $4 billion since oil flows to the Turkish port of Ceyhan via pipeline stopped.

[yota691]

Turkey "turns the tables" on Iraq.. Baghdad is demanding more than $3 billion in compensation to Ankara

Politics |Today, 13:57 |

    

 

Baghdad today - Erbil 

Oil expert Kovind Sherwani confirmed today, Saturday (September 9, 2023), that the decision of the International Arbitration Court in Paris obligated Turkey to pay compensation to Iraq with a fine of one billion and 400 million dollars.

 

Sherwani told "Baghdad Today", "The Turkish government initially announced its commitment to the decision and stopped the export of oil through the Turkish port of Ceyhan, but it issued a statement in which it confirmed that the court's decision included five items in favor of Ankara."

 

He added, "According to the decision and provisions published by Turkey, there are compensations that Iraq must pay to the Turkish government amounting to more than 950 million dollars."

 

He pointed out that "all visits by Turkish officials did not lead to an agreement and settlement for the purpose of resuming oil exports," adding, "The cessation causes harm to the three parties, Baghdad, Ankara, and the Kurdistan region."

 

While Sherwani pointed out that “the issue of the oil dispute will not be resolved through the courts because it will take a long time and we will need money and expenses to be borne by all parties,” he stressed that “the solution is to sit at the negotiating table and solve the crisis radically.”  

 

The Kurdistan Region oil file was transferred between the Iraqi government and the Turkish government, from the courts of Paris to the courts of the United States of America. Baghdad and Ankara filed lawsuits against each other in American courts.

 

Iraq demands that Turkey pay a fine of (two billion and 400 million) dollars, for violating the agreement signed with it in 1973. For its part, Turkey has other accounts and is demanding compensation from Baghdad in the amount of (950 million) dollars .

 

On this basis, the Turkish government filed a lawsuit against the Iraqi government before an American court, demanding that Baghdad pay it compensation amounting to $956 million, refusing to pay any compensation to Iraq . 

 

According to a report by the "Middle East Eye" website, based in the British capital, London, about the problems between Turkey and Iraq regarding the export of Kurdistan region's oil through the port of Ceyhan, the Turkish government filed a lawsuit against the Iraqi government before the District Court of Columbia in the American capital, Washington, according to which it refuses to pay any compensation to Iraq, Baghdad demands compensation amounting to $956 million.  

 

It is noteworthy that Iraq has not paid part of the fees for transporting oil through Turkish territory since the 1990s. The international arbitration panel set an interest rate on this debt, which increases successively whenever Iraq delays payment . 

 

Turkey says, according to the report, that with the interest rate set by the International Arbitration Tribunal in Paris calculated for the amounts that each of the two countries must pay to the other, the amount that Iraq must pay to it becomes greater than what it must pay to Iraq . 

 

In this regard, the report believes that Iraq will receive compensation amounting to $2.6 billion after calculating interest, while Turkey will receive $3.5 billion, meaning that Ankara will gain $919 million for the difference between the two informants for the period preceding the international arbitration panel’s decision, in addition to $37.7 million.

 

Dollars in interest after the Authority’s decision, bringing the total to $956 million .

 

The export of oil from the Kurdistan region through the Turkish port of Ceyhan to abroad was halted on March 25, in response to a decision issued by the international arbitration panel in Paris based on a lawsuit filed by the Iraqi authorities against Turkey.

 

The report indicated that Iraq did not inform the Turkish authorities of the matter, despite efforts made to discuss how to take action following the International Chamber of Commerce’s decision, a decision that accuses Turkey of violating its agreement with Baghdad and practicing oil trade in isolation from Baghdad and directly with the Kurdistan Regional Government between 2014 and 2018 .

 

According to the British website, after the Iraqi move, angry Turkish officials promised that Iraq would pay the price for this action during their private talks, so last August 31, they took a step in this direction and filed a lawsuit in an American court, demanding compensation .

Following the decision of the Arbitration Court in Paris on March 25, Turkey suspended oil exports to the Kurdistan Region, which constitute 0.5% of the world’s total oil exports. 

 

The British website wrote, “Turkey wants Iraq to withdraw the second lawsuit before the Arbitration Court in Paris regarding the period after 2018, in order to reach common ground regarding the court’s decision, as Ankara called on Iraq to find a payment system that satisfies both the governments of Baghdad and Erbil.” .

 

 

[ametad]

Ultimately, I don’t see any solution here that detaches Iraq from Imperial Control. For this to be a radical solution it would need to have a resolution within the old Ottoman Empire that is recognized by the International community. But, if they are asking the International Courts of France and America to solve their problems then ultimately they are still under firm control of the Imperial British Colonialism brought into the region during WWI. 
 

However, given the current circumstances if Iraq can agree with its neighbors on how to export their nationalized oil products; that would be good. Wether it goes north or south may be a reflection of the regional stability and independence. Where as, if the oil exports to the south it could symbolize a strong independent national state of Iraq. Where as, if the exports north through Turkey within the Nationalized SOMO it could represent both a unified Iraq and a region with internationally recognized independent regions in cooperation. Thus, export through the north is desirable.

 

We will see what time brings. 

[ametad]

Perhaps this oil and gas law can be legislated in Bagdad while maintaining peace within Kirkuk and exporting oil to the North through Turkey all while utilizing the SOMO nationalized oil company of Iraq.
 

Seems like a big ask, but looks like they are sending it!! 
 

time will tell…

[yota691]

Shaddad: Türkiye went to the American courts to evade paying Iraq's debts

• Time: 09/09/2023 23:17:58
•  
• Read: 3,731 times

  

{Politics: Al-Furat News} A member of the Parliamentary Oil and Gas Committee, Ali Shaddad, confirmed that Turkey had filed a lawsuit against Iraq in the American courts to evade paying Iraq’s debt.

 

Shaddad said {to Al-Furat News} that: “The decision of the International Court in Paris gave Iraq the right to owe Turkey $1.5 billion in debts that must be paid.”

He pointed out, "Turkey refused to pay its debts and went on to file a lawsuit against the federal government in American courts stating that it had lost huge sums of money due to the cessation of oil export operations through the port of Ceyhan."

Shaddad explained, "The reason for filing this lawsuit lies in the nature of Turkish contracts with the Kurdistan Regional Government. There are losses, as Turkey claims, and the federal government is not concerned with these losses."

An international arbitration panel obligated Turkey to pay $1.5 billion to Iraq in exchange for exporting oil from Iraqi Kurdistan through the port of Ceyhan between the years 2014-2018 without Baghdad’s approval.

Following the decision of the Paris Arbitration Court on March 25, Turkey suspended oil exports to the Kurdistan Region, which constitute 0.5% of the world's total oil exports.

Turkey filed a lawsuit in the District Court of Columbia in the United States and said that Iraq must pay Turkey ($956 million), because the decision of the Arbitration Court in Paris did not only impose an amount of ($1.4 billion) as compensation for the benefit of Baghdad, and in the issue of reducing the capacity of the pipeline.

 

The transport tax imposed a $500 million fine on Iraq, as Iraq has not paid part of the fees for transporting oil through Turkish territory since the 1990s. 

The international arbitration panel set an interest rate on this debt, which increases successively whenever Iraq delays payment.

[yota691]

Experts: The Paris court’s decision is a pressure card on Ankara

The first  09/10/2023

 

 

  Baghdad: Huda Al-Azzawi 

 

Observers and specialists in international law have indicated that the best pressure card that Iraq can wave against Ankara is to demand the implementation of the decision of the International Dispute Tribunal in Paris to force it to implement a $1.4 billion fine to be paid, in order to achieve a policy of pre-emptive deterrence and stop the bombing of lands, violations of Iraqi sovereignty, and cutting off water.

 

Political affairs analyst, Omar Al-Nasser, stated in an interview with “Al-Sabah” that “Iraq was able to achieve one of the qualitative achievements and gains as a first step of future steps that will gradually follow to extract rights from all countries that contributed to weakening Iraq, its influence and its position in the region by activating the resort to International official forums, as Iraq won the ruling issued by the Commercial Disputes Court in Paris to impose a fine on Ankara worth approximately one billion and 400 million dollars.

 

He explained that "the decision came due to the illegality of Turkey's export of Iraqi oil through the Kurdistan region without Baghdad's approval, and it is a natural result to stop disdaining the internal political decision and violating Iraqi sovereignty," noting that "there is another lawsuit that Iraq may win in the coming days," stressing that " The issue is not only material, but it has importance from a moral standpoint and the country’s international reputation among the countries of the world.”

 

Al-Nasser noted that “Erdogan’s decision to postpone or cancel his visit to Iraq comes from his strong desire to obtain a written guarantee confirming that the international court’s fine imposed on Ankara will not be activated, which has become an excellent card that Baghdad holds and can invest in times of need for the purpose of obtaining future political gains, and a pressure card.” A real response to the blatant Turkish attacks related to violating Iraqi sovereignty, cutting off river water, etc.

 

For his part, the specialist in law and international relations, Dr. Haider Kadhim Al-Quraishi, pointed out that “Iraqi-Turkish relations are governed by several factors and variables that have determined the nature of the relationship between the two countries for decades, and Turkey has great elements of pressure on Iraq, perhaps foremost among which is the issue of water and the military presence.”

 

Al-Qurayshi stated in an interview with “Al-Sabah” that “Turkey, as a result of several factors, interfered in Iraqi affairs for a long time, which affected the status and sovereignty of Iraq, and here the question began: Does Iraq have means to deter Turkey’s repeated interventions?” He answered: “Certainly Iraq has means.” It is important to achieve a policy of deterrence whenever there is a political decision to activate it, foremost of which is trade, the issue of the Kurdistan Workers’ Party, and the export of oil.”

 

He pointed out that "there are other new means of pressure that can be added to the elements of deterrence if they are to be used for purposes related to the water quota, the military presence, and the continuous bombing of Iraqi lands, namely the insistence on implementing the decision of the International Disputes Court that was issued recently to fine Turkey one and a half billion dollars." As a result of its breach of its obligations related to the implementation of the 1973 agreement regarding the provisions of the pipeline agreement between the two countries.”

 

He explained that "the case began in 2014 at the end of Nouri al-Maliki's government through a lawsuit filed in the Commercial Court of the International Chamber of Commerce in the Paris Club for creditors, which was filed by the SOMO company as a result of Turkey's failure to adhere to the issue of exporting oil through the aforementioned company, and its exporting oil for the period from 2014." To 2018 directly from the Kurdistan region without informing the central government.”

 

Al-Quraishi raised a question about the possibility of using this card by bargaining for other files, and said: “It seems that Turkey preempted Iraq in this matter, and began to bargain on several issues, the first of which is the water issue and linking it to the political aspect. The other issue is Turkey’s pressure to postpone Erdogan’s visit to Baghdad until after... Iraq should give up on this issue.” He pointed out that “the most dangerous thing about the matter is that the recent federal budget allowed the Turkish authorities to pressure or challenge the decision and the lack of its effects when it authorized, in one of the budget articles, the region to export quantities of oil directly to Turkey outside the (SOMO) share.”

 

Edited by: Muhammad Al-Ansari

[yota691]

Kurdistan achieves more than 2 trillion dinars from the sale of 41.2 million barrels, and Baghdad owes 924 billion to Erbil.

Economy _Today, 12:40 |

    

 

Baghdad today - Baghdad 

Economic expert Nabil Al-Marsoumi revealed today, Sunday (September 10, 2023), that the revenues achieved in the Kurdistan region during the first half of 2023 amounted to 2.315 trillion dinars, while he indicated that Baghdad owes Erbil an amount of 924 billion dinars.

 

Al-Marsoumi wrote in a blog post on his personal account on the Facebook platform, followed by “Baghdad Today,” that “the oil revenues of the Kurdistan region during the first quarter of 2023 amounted to $2.2 billion according to the Deloitte report, while oil revenues during the second quarter of 2023 were $226 million.”

 

He added, "The total oil revenues during the first half of 2023 amounted to 2.426 billion dollars, which is equivalent to 3.128 trillion dinars, while the non-oil revenues during the first half of 2023 were 1.848 trillion dinars, while the total public revenues during the first half of 2023 were 4.976 trillion dinars." The region’s total production during the first half of 2023 is 41.2 million barrels.”

 

Al-Marsoumi added, "Under the 2023 budget law, Baghdad pays the region $10 for the costs of producing, transporting, and marketing each barrel of crude oil produced, meaning it pays $412 million, equivalent to 535.6 billion dinars, from sovereign expenditures and not from the region's net share."

 

He continued, “Under the Financial Management Law, the region receives 50% of non-oil revenues, equivalent to 924 billion dinars during the first half of 2023, and when all of that is subtracted from the region’s total revenues, the net public revenues achieved by the region in the first half of 2023 will equal 2 trillion and 315 million dinars.” Pointing out that “the response to the numbers is in numbers and not as so-and-so said!!.” According to his expression.

 

 

[yota691]

Kurdish politicians: There is no return to the mistrust between Baghdad and Erbil

Iraq  09/11/2023

 

 

 Sulaymaniyah: Karim Al-Ansari

prevailed in some Kurdish political circles in the language of understanding in an attempt to bring the government’s discourse with the federal government to a central region in which the relationship would avoid returning to the “lack of trust” box, as the outstanding issues accumulate between the two sides despite the promises of the Sudanese government to deal with them gradually on the one hand, and promises The regional government responded, on the other hand.

Member of the Kurdistan Federation, Shirwan Mirza, said: “There is a different interpretation between the two parties regarding Article 29 of the General Federal Budget Law, and among the controversial issues between the two sides are non-oil revenues, which also constitute an element of the dispute.”

In his interview with Al-Sabah, Mirza added, “If these issues are not resolved, the crisis will remain stagnant without significant progress.”

Member of the Kurdistan Democratic Party, Abdul Salam Barwari, said: “The region has not yet delivered its oil imports,” noting that “the region notifies SOMO of the amount of oil it gives it, but the latter takes 85 thousand barrels instead of 450 thousand barrels, so we do not have it.” Oil imports. Berwari explained in an interview with “Al-Sabah” that “non-oil imports are covered by Article 30 of the Administration and Finance Law, which indicates that 50 percent of taxes and fees remain for the region from the border crossings, and all fines and local imports are like the rest of the governorates, but the federal government requests that they be handed over all of them so that the region can receive them.” His share after this process,” indicating that “Article 25/Fifth of the Administration and Finance Law says, “If the region or governorate delays sending imports to the federal government, then they will be deducted from its share,” and this is the problem.”

Political affairs observer Burhan Yassin warned of the depth and seriousness of the crisis by saying: “It is difficult to predict its results, as the solutions now are only half-measures and not a comprehensive and conclusive solution.”

Yassin stated in an interview with “Al-Sabah” that “what happened recently does not end the problem of salaries, or rather the Kurdistan region’s entitlements in light of the budget,” considering that “what happened merely pushed the problem forward or for an indefinite period.
”
 Yassin continued by saying, “There are two commitments to the region, the first to Turkey through the agreement for a period of fifty years to supply oil starting in 2013, and the second to Baghdad through the constitution, and this is a serious contradiction and contradiction between the two commitments, in addition to the complexity of the file of Turkey’s relations with Iraq in general.”

Political affairs researcher Yassin Aziz considered the current crisis to be “the most complex and most severe crisis between the two parties. Despite the instability of the relationship between Erbil and Baghdad for years, this time is considered the most developed and dangerous, as the state of mistrust between the two parties has reached its peak.”

 In his interview with Al-Sabah, Aziz said: “The crisis created a great embarrassment for the regional government, which was unable to pay the salaries of its employees after being deprived of its strongest financial weapon, which is oil, since the decision of the International Arbitration Court in Paris in mid-March last year, stopping the export of oil through Turkish territory.”

[yota691]

Why The Oil Outage In Iraqi Kurdistan Continues

By ZeroHedge - Sep 10, 2023, 4:00 PM CDT

• Oil flows from Iraqi Kurdistan to Turkey remain disrupted.
• The future of Kurdistan's oil exports is extremely nuanced and depends on the interests of all actors, including global and regional major powers.
• Adherence to the interim agreement with Baghdad will likely determine the future of the petroleum sector in Kurdistan.

Join Our Community

In the coming weeks, Kurdistan's oil and gas sector faces a pivotal moment that could reshape the region's geopolitical landscape. Since March 25, 2023, the Kurdistan Regional Government (KRG) and the Iraqi federal government have struggled to resume oil exports from Kurdistan, following a ruling by the International Chamber of Commerce (ICC) arbitration court. This impasse has significant implications for the KRG's economy and administration, leaving the path forward shrouded in uncertainty.

 

In 2007, a new chapter began for Kurdistan when its regional parliament approved the production of the region's oil and gas resources. Subsequently, the Ministry of Natural Resources was established to oversee these valuable assets. However, tensions escalated between Baghdad and Erbil due to Kurdistan's independent oil and gas exports via the Kurdistan pipeline, connected to the Turkish pipeline leading to the Ceyhan port on the Mediterranean Sea.

 

This led Baghdad to sever the KRG's share of the federal budget and initiate legal proceedings against Turkey, ultimately culminating in the suspension of oil supplies on March 25, 2023.

 

Five months after oil shipments from Kurdistan were halted, at the start of September 2023, despite a quick agreement between the KRG and the Iraqi federal government and both sides' hopeful positive remarks on quickly restarting the export process, the trilateral or bilateral meetings between the parties in this dossier not only failed to reach a new agreement to resolve the disputes but also pushed a real trilateral solution further out of reach.

 

 

In light of this, it is evident that the future of Kurdistan's oil exports is extremely nuanced and depends on the interests of all actors, including global and regional major powers.

 

To be candid, the fate of Kurdistan’s oil is primarily shaped by regional and international interests rather than the local government’s needs. The two major parties leading the Kurdistan regional government are no longer the sole major participants in Kurdistan's oil destiny. As local party battles have intensified over the last several months, a lack of oil revenue has driven them farther apart, diminishing their ability to stand up to foreign interests in decisions about Kurdistan's oil.

 

Below are a number of key points to consider in Iraqi Kurdistan’s oil exports:

 

Politicking in the Kurdish Region: The divide among the main Kurdish parties, especially those within the KRG, makes it easier for external factors to undermine the constitutionally granted autonomy of the territory. Uniting the largest Kurdish parties may serve the region's interests in passing the ongoing state's hydrocarbon law.

 

Compliance with Commitments by Erbil and Baghdad: Adherence to the interim agreement, especially regarding budget legislation and the formation of a federal hydrocarbon law, will likely determine the future of the petroleum sector in Kurdistan. Any deviations from the agreement could force radical choices.

 

The Presence of Kurdistan Oil in Global Markets: The timing and feasibility of Kurdistan's oil production resumption and access to international buyers now depend on Baghdad and Ankara. Cooperation among Kurdish parties may influence Baghdad's decision to support exports, while domestic usage of Kurdistan's oil could raise financial and administrative challenges.

 

The KRG's Readiness for Resuming or Maintaining Oil Production: The KRG should be aware that oil-exporting governments with higher export capacities tend to have more influence in international politics. If the KRG's role in global energy security continues to be marginalized, it could impact international partners' willingness to invest in the region, potentially accelerating the decline of the territory's oil industry.

 

Global Powers’ Interests in Kurdistan’s Oil Flow: The interests of global powers, notably the United States and Russia, in the region's oil and gas industry will be influential. Convincing these nations that Kurdish oil and gas pose no threat to their interests is a key international strategy for Kurdish leaders.

 

International Market Factors: Future shifts in the international oil market's balance could impact the decision to restart Kurdistan's oil production, potentially driven by significant changes in oil prices or global market dynamics.

 

Kurdish and Iraqi Opposition Roles: The reactions of Kurdish and Iraqi opposition groups to the Baghdad-Erbil oil accord and potential challenges in the federal supreme court could temporarily halt oil production.

 

Europe’s Energy Security and Access to Natural Gas Sources: Europe's gas market balance may hold significance for the future of Kurdistan’s oil industry, depending on Europe's natural gas demand in the coming years.

 

IOCs Interests between Erbil and Baghdad: How oil firms in Kurdistan respond to contracts with the KRG if the Iraqi federal government offers them direct engagement with Baghdad may impact the industry's dynamics and lead to potential conflicts.

 

Turkish Interests: The possibility of returning to independent oil exports for Turkey may influence the financial attractiveness of different agreements for Ankara.

 

Possible scenarios for Kurdistan's oil and gas industry vary widely, from a resumption of exports under the Erbil-Baghdad deal to a continued halt in oil flow with increased pressure from Baghdad.

 

The outcome depends on the intricate interplay of these factors, and the future of Kurdistan's oil sector remains deeply uncertain.

 

By Shahriar Sheikhlar for Oilprice.com

[yota691]

Kurdistan is stuck between the faltering negotiations between Baghdad and Ankara. The region’s oil is in danger

2023-09-13 03:49

Shafaq News/ Relations between Baghdad and Erbil continue to deteriorate, as the besieged oil industry in the Kurdistan Region has become “caught” in the power struggle, as it is already suffering from neighboring Turkey’s refusal to reopen the port of Ceyhan to Iraqi crude oil exports.

 

This came in a report prepared by the American website (S&P Global Commodit Insights), viewed by Shafaq News Agency, which included the latest what it described as the “attacks and accusations” taking place between Baghdad and Erbil, stating that the other side is not adhering to the budget agreement, according to which the Kurdistan Regional Government is required to “Delivering 400,000 barrels per day of its crude oil production to the Iraqi state marketing company SOMO for this, to obtain its share of federal funding.”

 

But with the closure of Ceyhan port, and while Baghdad and Ankara work to resolve a diplomatic and legal dispute over the pipeline linking the port to the fields of northern Iraq, including most of Kurdistan's fields, the regional government has only provided between 50,000 and 60,000 barrels per day, and in August, Kurdish officials said that the quantities increased to 85,000 barrels per day, according to the report.

 

The prolonged conflict, according to the report, could lead to Baghdad putting pressure on Erbil financially, as it did in the past during previous disputes over Kurdistan’s sovereignty, according to the American report.

 

The American report indicated, "This may affect the ability of the regional government to pay dues to international oil companies operating in the region, which has already warned that political instability and the prolonged closure of the port of Ceyhan may cause its future investments in the upstream field to dry up."

 

In early August, Chevron and its partner Genel said they would give up their SARTA license in Kurdistan.

 

In this regard, Standard & Poor’s Global Commodity Insights analysts said in a note last August: “Remaining investors are suffering from a lack of payment, as well as legal uncertainty regarding the future treatment of their contracts.”

 

The KRG had previously marketed its crude independently, but in the past year and a half it was ordered to cede control of its oil sector to Baghdad, which issued an Iraqi Supreme Court ruling in February 2022 that oil sales in Erbil were illegal.

 

This, coupled with a separate arbitration ruling by an international tribunal in March that essentially blocks KRG access to the port of Ceyhan, has made the KRG dependent on the budget agreement to provide the funds needed to pay government salaries and provide services.

 

The worsening conflict between Baghdad and Erbil comes at a time when talks between Turkey and Iraq regarding the resumption of crude oil exports from the port of Ceyhan appear to be at a dead end.

[yota691]

Turkey appeals against arbitration ruling on Iraq and Kurdistan oil exports

Turkish energy minister says Ankara has to protect its interests as Iraq isn't seeking an amicable solution to the arbitration dispute over Kurdistan oil exports

 

A pipeline in the newly opened section of the Zubair oil refinery, southwest of Basra in southern Iraq, on 3 March 2016 (AFP)

By Ragip Soylu in Ankara

Published date: 15 September 2023 06:59 BST | Last update: 7 hours 40 mins ago

 

Turkey has filed an application to the International Chamber of Commerce against Iraq to overturn an arbitration ruling which struck Ankara with a net $1.4bn in damages in relation to crude oil exports from the Kurdistan region, a senior Turkish official told journalists on Thursday. 

 

“We are saying that we can have an amicable solution for this issue, but the Iraqi side continues to take legal action,” Alparslan Bayraktar, the Turkish energy minister, said. “But from the legal perspective, we need to control and we need to take care of our own interests. We will file in Paris court for a set-aside case.”

 

It isn't immediately clear whether Turkey is trying to cancel the whole ruling or is seeking a partial overturn. 

 

In April, Iraq launched an enforcement action against Turkey at the US District Court for the District of Columbia to collect an award which claims Turkey had breached its contract by directly trading oil with the Kurdish Regional Government (KRG) between 2014 and 2018.

 

Turkey argued at the US court last week that Iraq should pay Ankara a net sum of $956m in damages after interest rate calculations on an arbitration ruling that initially granted a net sum of $1.4bn to Baghdad.

 

The ICC awarded $1.9bn to Iraq but also awarded more than $500m to Turkey for its counterclaims of low capacity at the pipeline and unpaid transportation fees going back to the 1990s. All awards are subject to pending interest rates.

 

The motion said Turkey has already sent a letter to Iraq, on 28 August, recalling the ICC decisions on interest, providing the calculations and demanding the prompt payment of $956m. Iraq had not responded to the letter, according to the motion.

 

After the ICC ruling, Ankara stopped the oil flow at the Iraq-Turkey pipeline, which produces about 0.5 percent of global supply. Ankara cited the need for repairs because of corrosion and damage following the devastating 6 February earthquakes that hit southern Turkey.

 

Bayraktar said Turkey had to put a force majeure in place because the earthquake affected the six provinces the pipeline passes through, adding that 40 days after the quake a flood damaged the domestic Turkish oil pipeline, causing spilling.

 

“It was a warning signal for us,” he said. "So we said, like, 'We need to check everything, we have already checked the Ceyhan facility for storage tanks and also loading operations, but we decided to check all the pipeline, 650 kilometres, two pipelines, all the way from [Iraq] to Ceyhan.” 

 

Bayraktar added that an independent surveyor has been working on the inspections and is preparing a report to be used in the future if Iraq also sues Ankara for placing a force majeure  on the oil flow. 

 

Turkish and Iraqi officials had been negotiating a deal to end the stalemate.

Turkey wants Baghdad to withdraw a second ICC court case regarding the period after 2018, and find mutual ground to work out the award. Ankara also asked Iraq to find a payment system that could satisfy both the KRG and Baghdad.

[yota691]

Türkiye: Ceyhan line with Iraq is ready for operation soon

• Time: 09/15/2023 13:48:48
•  
• Read: 1,066 times

  

{Economic: Al-Furat News} The Turkish Minister of Energy, Alp Arslan Bayraktar, announced that the Kirkuk-Ceyhan oil pipeline will be “technically” ready for operation soon.

Bayraktar said in a press statement, while he was in the capital, Ankara, yesterday, Thursday, that the inspection of the oil pipeline between Iraq and Turkey has been completed, and the pipeline will be ready “technically” for operation soon. 

The Turkish Minister stated that the earthquake of last February 6, and then the floods, destroyed the oil pipeline, announcing the start of work to detect the damage and build the pipeline.

Arslan Bayraktar confirmed, "Discussions with Iraq are continuing on this issue." 

He added: "As two neighboring countries, we should sit together and reach an amicable solution." 

The Turkish minister did not specify the timing of the start of the resumption of oil exports. 

The export of oil from the Kurdistan region through the Turkish port of Ceyhan to abroad was halted on March 25, in response to a decision issued by the international arbitration panel in Paris based on a lawsuit filed by the Iraqi authorities against Turkey.

The Turkish government had filed a lawsuit against the Iraqi government before an American court, demanding that Baghdad pay it compensation amounting to $956 million, refusing to pay any compensation to Iraq. 

[yota691]

Türkiye is examining the oil pipeline with Kurdistan

Economical  09/16/2023

 

 

 Johannesburg: AFP

Turkish Energy Minister Alp Arslan Bayraktar announced yesterday, Friday, the completion of inspection of the oil pipeline from the Kurdistan region to the port of Ceyhan, stressing that the line will be “technically” ready for operation soon. 

 

Bayrakdar said in a press statement: “As of today, an independent survey company has completed its work and is now preparing the report,” while he did not mention a date for the resumption of oil flows through this line. Turkey had stopped flows through the pipeline located in the Kurdistan region, on March 25, after a ruling in an arbitration case issued by the International Chamber of Commerce ordered Ankara to pay compensation to Baghdad, due to the export of oil through the Kurdistan region without referring to the federal government between... Years 2014 and 2018.

It is noteworthy that the Kurdistan Region Oil Industry Association announced late last August that stopping exports to the Turkish port of Ceyhan had cost producers and the Iraqi government losses of about $4 billion, as producers in the region were forced to reduce production since stopping the flow of oil through the pipeline
.

[yota691]

A Turkish government delegation visits Baghdad to resume oil exports through Ceyhan

• Time: 09/16/2023 22:01:05
•  
• Read: 3,549 times

  

{Local: Al-Furat News} A member of the Parliamentary Oil and Gas Committee revealed today, Saturday, that a Turkish government delegation will visit Baghdad early next month to discuss the resumption of oil exports from the Kurdistan region.

 

Sabah Sobhi said in a press statement, “A Turkish delegation is scheduled to visit Baghdad early next month to discuss the resumption of oil exports from the Kurdistan region via the Turkish-Iraqi oil pipeline.”
Sobhi added, "Turkey has shown some flexibility, and it is expected that obstacles to the process will be removed before Turkish President Recep Tayyip Erdogan arrives in Iraq."
Turkish Energy Minister Alp Arslan Bayraktar said on Friday that the technical problems in the oil pipeline between Turkey and Iraq have been resolved and that oil exports are ready to resume.

 

 

[yota691]

Members of Congress urge Biden to pressure to restore Kurdistan's oil exports

Yesterday, 20:00

 

Al-Ghad Press/Baghdad 

Three members of the US Congress sent a letter to President Joe Biden, seen by Reuters, in which they said that there was a need for a new American approach that would facilitate the reopening of the pipeline between the semi-autonomous Kurdistan region in northern Iraq and Turkey.

The pipeline contributes about 0.5 percent of global oil supplies, and has been closed since last March.

Two informed sources told Reuters that the losses to the Kurdistan Regional Government amounted to about four billion dollars in lost exports.

Turkey stopped oil exports through the northern Iraq-Turkey pipeline this year, after a ruling issued by the International Chamber of Commerce, which ordered Ankara to pay compensation to Baghdad for exports from the Kurdistan Regional Government, which took place without the approval of the federal government in Baghdad, between 2014 and 2018.

The resumption of these oil flows will benefit the United States, in light of the OPEC+ group reducing global oil supplies and rising prices.

The letter, signed by three members of the Foreign Affairs Committee of the House of Representatives on Monday, stated that the Kurdistan Regional Government is one of the United States’ reliable partners in the Middle East region.

The letter added that the closure of the pipeline caused the Iraqi region to lose most of its revenues, noting that the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, warned this month in a letter to Biden that the economic drain on the region could lead to its collapse.

 

[yota691]

Parliamentary Oil: Federal Court decisions are binding on everyone

 

money and business
   

Economy News _ Baghdad
The Parliamentary Oil and Gas Committee considered, on Thursday, that the region is the first loser in the process of stopping the export of oil through Turkey, and it has no choice but to abide by the decisions of the Federal Court.

 

A member of the committee, Bassem Al-Gharibawi, said in an interview with “Al-Sabah” followed by “Al-Iqtisad News” that negotiations are still continuing between Iraq and the Turkish side, especially in the export of oil, noting that the Turkish side is still procrastinating on the grounds of the occurrence of earthquakes and the necessity of maintaining the pipeline, and this matter will hinder Export process.

 

He pointed out that the Turkish side does not wish to pay the amounts imposed on it by the International Court, amounting to one billion and 500 million dollars, and these are fines imposed on it, indicating the existence of unannounced agreements between the region and Turkey regarding the export of oil as well as the issue of oil export prices.

 

Al-Gharibawi pointed to the Federal Court’s decision that restricted the export of oil to the instructions of the Federal Ministry of Oil, represented by the oil company “SOMO,” stressing that these restrictions, which the region refuses to implement, hinder the process of exporting oil.

 

He explained that the region is the first to lose in this matter because the federal government is able to compensate for these quantities, adding that the only solution is to submit to the decisions of the federal government and the constitution, which approved the quotas from north to south.

 

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Views 51

Added 09/21/2023 - 11:35 AM

[yota691]

Anticipation of a US decision against Türkiye requiring it to pay $602 million to Iraq

2023-09-30 06:18

 

 

Shafaq News / On Saturday, the "Iraq Oil Report" website revealed a new development related to Iraqi Kurdistan Region's oil exports to the Turkish port of Ceyhan.

 

The website stated in news translated by Shafaq News Agency, “Iraq is moving forward with its attempt to enforce a major arbitration award against Turkey, in order for an American court to issue a ruling worth $601.9 million in favor of Iraq.”

 

He explained, "The new Iraqi move is a sign that Baghdad and Ankara do not seem to be close to the type of diplomatic agreement necessary to reopen the Kurdistan Region's oil export pipeline, via Turkey, despite a wave of technical talks in mid-September, which were... "We are moving towards resuming export operations."

 

This comes days after American assurances to continue working with all concerned parties to reopen the oil pipeline between Iraq and Turkey in the near future.

 

On September 15, the Turkish Minister of Energy, Alp Arslan Bayrakdar, announced that the inspection of the oil pipeline from the Kurdistan Region to the port of Ceyhan had been completed, and he also confirmed that the line would be “technically” ready for operation soon.

 

Turkey had stopped flows through the pipeline located in the Kurdistan Region, on March 25, after a ruling in an arbitration case issued by the International Chamber of Commerce ordered Ankara to pay compensation to Baghdad, due to the export of oil through the Kurdistan Region without referring to the federal government between... Years 2014 and 2018.

 

After that decision, Turkey began maintenance work on the pipeline that passes through a seismically active area, which it says was damaged by floods resulting from the devastating earthquake that struck the southern region on February 6.

 

It is noteworthy that the Kurdistan Region Oil Industry Association announced late last August that stopping exports to the Turkish port of Ceyhan had cost producers and the Iraqi government losses of about 4 billion dollars, as producers in the region were forced to reduce production since stopping the flow of oil through the pipeline.