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

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Erbil, Kurdistan Region - An agreement with the Kurdistan Regional Government (KRG) on the resumption of oil exports through the Iraq-Turkey pipeline is expected to be announced soon, a source in Iraq’s state-owned oil firm said as Kurdish oil exports have been halted for over a week. 

Oil firms operating in the Kurdistan Region have stopped production or reduced output and diverted it into storage after a Paris arbitration court late March ruled that Turkey had violated an agreement with Iraq by allowing the Kurdistan Region to begin independent oil exports in 2014. 

“Our discussions are ongoing and we will announce the agreement as soon as possible,” the State Oil Marketing Organization (SOMO) source told Rudaw. 

Following the ruling, Erbil and Baghdad intensifiednegotiations to resume oil flowing into the pipeline, and both sides reached a preliminary agreement on Friday which would see oil flowing to Turkey’s Mediterranean port of Ceyhan again. 

The details of the deal have not been made public, but a well-informed source told Rudaw that other meetings will be needed to clarify the KRG’s contracts with international oil companies (IOCs) as well as finding new buyers for the oil at the Turkish port. The agreement is expected to provide stability for the IOCs and buyers.  

The SOMO source added that “many” issues were agreed upon by Erbil and Baghdad in the latest agreement. 

Rudaw understands that the agreement consists of joint oil exports by the KRG’s Ministry of Natural Resources and Iraq’s State Organization for Marketing of Oil (SOMO). The revenue from the exports will be stored in an account managed by the KRG under the observation of the federal government in Iraq, the source added. 

The suspension of the Region's oil exports from the port of Ceyhan has had a significant impact on the oil market. Oil prices rose an average of 5.7 percent in a week when the Kurdistan Region’s 400,000 barrels per day were taken out of the market. 

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

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Pavel Talabani supports the export of Kurdistan's oil through "SOMO" and sets conditions

2023.04.02 - 14:34

 

Baghdad - people  

On Sunday, the President of the Patriotic Union of Kurdistan, Pavel Talabani, commented on the decision of the Paris Court regarding the export of the oil of the Kurdistan region.  

  

 

  

Talabani said in a statement, which "NAS" received a copy of, (April 2, 2023), "After the decision issued by the Paris Court and stopping the export of Kurdistan Region's oil via Turkey, and in order to ensure the future of our people and prevent the occurrence of major problems and crises, the time has come to make the right decision, that The SOMO company sells the oil of the Kurdistan region and enters all imports from all over Iraq into one treasury, and it determines the share of the Kurdistan region from the Iraqi budget and imports and guarantees the salaries of employees and retirees of the region, and it connects the fuel and oil distribution system for the Kurdistan region with Iraq, and it is sold to citizens at the same Iraqi price, and that it be There is a representative of the Kurdistan region in the SOMO company and the entire Iraqi oil and gas system, and he is part of the management and decision-making.  

  

He continued, "The Patriotic Union of Kurdistan has been seeking for years to agree with Baghdad and end the differences. The correct thinking is coordination and joint action, not divergence and deepening problems. Internal disputes and exclusivity weaken our entity and endanger our region, not joint action and demanding our rights in Baghdad. The Patriotic Union has presented Kurdistan is a river of blood for the sake of the elevation and supremacy of Kurdistan, and we do not consider any force or party more loyal than us to Kurdistan and achieving its supreme interests, so the logical and responsible step is to agree with Baghdad and secure our rights.  

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via Jehan

Oil: We are keen to expedite the resumption of oil exports from Kurdistan to Turkey

2023.04.02 - 15:56

 

 

Baghdad - Nas   

Today, Sunday, the Ministry of Oil issued a clarification regarding the export of the region's oil, while noting that the new understandings will be announced.  

  

 

  

  

The ministry said in a statement, which "NAS" received a copy of, (April 2, 2023), "The Ministry of Oil confirms the keenness of the government and the ministry to expedite the resumption of oil exports for the region's oil through the Turkish port of Ceyhan and work to bring points of view closer to serve the public interest, and the ministry indicated that it has sponsored The flexibility required to move forward towards achieving the goal of resuming exports first according to the new data after the decision of the International Court, and then discussing other outstanding technical issues between the center and the region, for the Ministry of Oil to realize the importance of the revenues derived from resuming the export of the region’s oil in supplementing the federal budget according to the quantities agreed upon.  

  

And she continued, "The Ministry of Oil expressed all of this in bilateral meetings with the delegation of the region, and the ministry hopes, in light of the positive atmosphere and bilateral understandings, to reach an agreement to resume oil exports soon, and in the event that a final agreement is reached in accordance with the new understandings to export oil, this will be announced in due course."  

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The Ministry of Oil issues a clarification on exporting the region's oil

• Time: 04/02/2023 15:54:58
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• Read: 390 times

  

{Economic: Al Furat News} The Ministry of Oil announced the government and the ministry's keenness to expedite the resumption of oil exports for the region's oil through the Turkish port of Ceyhan, and to work to bring points of view closer to serve the public interest.

The ministry said in a statement that {Euphrates News} received a copy of it that it "has sponsored the flexibility required to move forward towards achieving the goal of resuming exports first according to the new data after the decision of the International Tribunal, and then discussing other outstanding technical issues between the center and the region, for the Ministry of Oil to realize the importance of the revenues generated." From resuming the export of the region's oil in supplying the federal budget according to the quantities agreed upon.

And the Oil Ministry expressed "all of this in bilateral meetings with the region's delegation, and the ministry hopes, in light of the positive atmosphere and bilateral understandings, to reach an agreement to resume oil exports soon."

And she indicated that "in the event that a final agreement is reached in accordance with the new understandings for the export of oil, this will be announced in due course."

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Talabani encourages the region to agree with Baghdad and guarantee the salaries of its employees

• Time: 04/02/2023 15:23:15
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• Read: 663 times

  

{Politics: Al Furat News} The President of the Patriotic Union of Kurdistan, Pavel Jalal Talabani, encouraged the Kurdistan region to reach an agreement with the federal government regarding its oil exports.

Talabani said in a statement, which {Euphrates News} received a copy of: "After the decision issued by the Paris court and stopping the export of Kurdistan region's oil via Turkey, and in order to ensure the future of our people and prevent the occurrence of major problems and crises, the time has come to take the right decision for SOMO to sell Kurdistan Oil and enter All imports from all over Iraq are in one treasury."
He called for "determining the Kurdistan Region's share of the Iraqi budget and imports, including the salaries of the region's employees and retirees, and linking the fuel and oil distribution system for the Kurdistan Region to Iraq and selling it to citizens at the same Iraqi price."
He stressed that "there will be a representative of the Kurdistan Region in the SOMO company and the entire Iraqi oil and gas system, and he will be part of the administration and the decision."
Talabani pointed out that "the Patriotic Union of Kurdistan has sought for years to agree with Baghdad and end the differences: noting that" the correct thinking is coordination and joint action, not divergence and deepening problems. Internal disputes and exclusivity weaken our entity and endanger our region, not joint action and demanding our rights in Baghdad
. "The Patriotic Union of Kurdistan has offered a river of blood for the sake of the elevation and supremacy of Kurdistan, and we do not consider any force or party more loyal than us to Kurdistan and achieving its supreme interests, so the logical and responsible step is to agree with Baghdad and secure our rights."

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Baghdad and Erbil agree to resume oil... and SOMO announces an agreement of "many points."

• Time: 04/02/2023 12:08:53
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• Read: 1,573 times

  

{Economic: Al Furat News} A member of the Kurdistan Democratic Party, Wafaa Muhammad Karim, revealed an agreement between the two federal governments and the Kurdistan Regional Government to resume exports of the region's oil.

 

Karim told {Euphrates News} agency: "It was agreed last night to resume exporting the region's oil to the National Oil Company (SOMO), and that the account of those exports to the region be managed by Baghdad."

He added, "This matter will be temporary until the oil and gas law is passed."

Karim pointed out that the agreement came "because of pressure from foreign companies operating and contracting with the region that oil should resume again."

For its part, the company (SOMO) confirmed that it had reached an agreement with the Kurdistan region on "many points."

Sumo said in a press statement that it will announce "the agreement with the Kurdistan Region soon."
And Kurdish media reported, quoting informed sources, that "a joint room will be formed between the Ministry of Natural Resources of the Kurdistan region and the National Oil Marketing Company (SOMO), which will assume the tasks of selling the oil of the Kurdistan region."

And she adds, "The position of deputy general manager of SOMO will be given to the Kurds, in order for the Kurdish side to also participate in the process of selling Iraqi and Kurdistan oil."

After signing the agreement and the letter directed regarding the export of the Kurdistan region's oil, it will be sent to Turkey to resume the sale of oil. "Erbil and Baghdad will take the necessary steps and wait for Ankara's answer," according to the sources.

It indicates that a positive meeting was held last Friday between the representatives of the Kurdistan region and the federal government, and they agreed on a new mechanism for selling the oil of the Kurdistan region jointly.

Earlier on Saturday, Al-Monitor news website in Washington reported that "Iraqi and Turkish officials are expected to meet soon to discuss new procedures for exporting Iraqi oil through Turkey."

A spokesman for the Ministry of Oil, Assem Jihad, stated that a delegation representing the government will visit Ankara soon to negotiate, stressing that "neither the Turkish side nor the Kurdistan region rejected the decision issued by the International Arbitration Tribunal," and that this, as he put it, would pave the way for a "new beginning."   

 

Raghad Daham

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Oil: We are keen to accelerate the consumption of oil exports to the region's oil

Posted 9 seconds ago

 

Oil: We are keen to expedite the resumption of oil exports to the region's oil (iraqakhbar-com.translate.goog)

News Source /Mawazine News

Economy |03:53 – 02/04/2023

Baghdad - MawazineNews
The Ministry of Oil confirmed on Sunday its keenness to speed up the consumption ofoil exports to the region's
oil through the Turkish Ceyhan port.

The ministryHe said in a statement received by Mawazine News, a copy of it, that "the government is keen to speed up
the resumption of oil exports to the region through the Turkish port of Ceyhan and work to bring viewsto serve the public interest," noting that "the flexibility required to move
forward towards achieving the goal of resuming export first according to the new data closer after the decision of the International Court, and then discuss other outstanding technical issues between the center and the region.”

And the ministry stressed
, according to the statement, “the importance of the revenues derived from the resumption of exporting the region’s oil in supplying
the federal budget according to the quantities agreed upon,” noting that it “expressed
all this in bilateral meetings with the region’s delegation.”

And she expressed her hope,
"in light of the positive atmosphere and bilateral understandings, to reach an agreement to resume
oil exports soon," explaining that "if a final agreement is reached
in accordance with the new oil export understandings, this will be announced in due time." Ended 29 / M99

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Clarification from the Ministry of Oil on the export of oil in the region

Economic Agency News - Clarification from the Ministry of Oil on the export of oil in the region (economy-news.net)

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Economy News / Baghdad

On Sunday, the Oil Ministry issued a clarification on the region's oil export, while expressing hope to reach an agreement to resume oil exports soon.

The ministry said in a statement that "the government is keen to speed up the resumption of exports to the region's oil through the Turkish Ceyhan port and work to bring views closer to serve the public interest," noting that "the flexibility required to move forward towards achieving the goal of resuming exports first according to the new data after the decision of the International Court, and then discuss other outstanding technical issues between the center and the region."

The ministry stressed "the importance of revenues derived from the resumption of the region's oil export in supplementing the federal budget according to the agreed quantities," pointing out that it "expressed all this in bilateral meetings with the region's delegation."

She expressed her hope that "in light of the positive atmosphere and bilateral understandings, an agreement will be reached to resume oil exports soon," explaining that "in the event that a final agreement is reached in accordance with the new understandings for oil exports, this will be announced in due course."

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Added 2023/04/02 - 4:04 PM

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Iraqi Kurdistan government: a preliminary agreement with Baghdad to resume oil exports

energy

02 April 2023

 

The suspension of exports caused losses to the Iraqi oil sector (Getty)

 

Today, Sunday, a spokesman for the Iraqi Kurdistan Regional Government said that the Iraqi federal government and the government of the semi-autonomous region in the north of the country had reached a preliminary agreement to resume oil exports from the north this week.

"After several meetings between the KRG and the federal government, a preliminary agreement was reached to resume oil exports through Ceyhan (port) this week," Lawk Ghafouri, the KRG's foreign media liaison officer, wrote on Twitter.

 

He continued, "This agreement will remain in force until the Iraqi parliament approves the draft oil and gas law."

 

A senior Iraqi official in the oil sector and an official in the Kurdistan Regional Government told Reuters yesterday that the initial agreement stipulates that oil from northern Iraq will be exported jointly by the state-owned Oil Marketing Company (SOMO) and the Ministry of Natural Resources in the Kurdistan Regional Government. According to two sources.

The KRG official said the revenues would be deposited in an account run by the Ministry of Natural Resources and supervised by Baghdad.

The two sources stated that the initial agreement was referred to the Iraqi Prime Minister, Muhammad Shia' al-Sudani, for final approval.

"The federal government and the Ministry of Oil are keen to resume oil export operations from the Kurdistan region," the spokesman for the Iraqi Oil Ministry, Assem Jihad, told reporters, attributing this to "its importance to Iraq as a whole."

He added, "Iraq aims to maximize oil revenues from oil exports, whether from the central and southern fields, or from the Kurdistan region, because this will be reflected in Iraqi society with all its sects and nationalities," noting that a delegation from the Kurdistan region visited Baghdad, and held consultations for Expedite the export process.

Turkey stopped the flow of oil through the pipeline from the Kirkuk fields in the semi-autonomous northern region to the port of Ceyhan on March 25, after losing a case filed by Baghdad before the arbitration panel of the International Chamber of Commerce.

 

In the facts of the lawsuit, Iraq accused Turkey of violating the 1973 pipeline agreement, by allowing the Kurdistan Regional Government to export oil without Baghdad's approval between 2014 and 2018.

The quantities that were flowing through the pipeline to the Turkish port of Ceyhan, which are about 450 thousand barrels per day, represent only about 0.5% of global oil supplies.

But the stoppage, which forced oil companies operating in the region to stop production, or transfer it to fast-filling storage tanks, contributed last week to raising oil prices to nearly $80 a barrel.

(Reuters, The New Arab)

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The Ministry of Oil issues a clarification on the export of Kurdistan oil

Sunday 02, April 2023 16:06 |EconomicalViews: 155

The Ministry of Oil issues a clarification on the export of Kurdistan oil (ninanews-com.translate.goog)

Bagdad (Nina) - The Ministry of Oil issued on Sunday a clarification on the export of oil in the region, expressing hope to reach an agreement to resume oil exports soon. The ministry said in a statement: "The government is keen to speed up the consumption of exports to the region's oil through the Turkish Ceyhan port and work to bring views closer to serve the public interest," noting that "the flexibility required to move forward Towards achieving the goal of resuming exports, it was taken into account first according to the new data after the decision of the International Court, and then discussed other outstanding technical issues between the center and the region.”

The ministry stressed "the importance of revenues derived from the consumption of the region's oil export in supplementing the federal budget according to the agreed quantities," pointing out: "It expressed all this in bilateral meetings with the region's delegation."
She expressed her hope that "in light of the positive atmosphere and bilateral understandings, an agreement will be reached for resume oil exports soon," explaining that "in the event that a final agreement is reached according to the new understandings for oil exports, this will be announced at the time.” / End7
 

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Clarification from the Ministry of Oil on exporting the region's oil

 

energy
   

Economy News / Baghdad
On Sunday, the Ministry of Oil issued a clarification regarding the export of the region's oil, while expressing its hope to reach an agreement to resume oil exports soon.

 

The ministry said in a statement that "the government is keen to expedite the resumption of exports of the region's oil through the Turkish port of Ceyhan and to work to bring points of view closer to serve the public interest," noting that "the required flexibility was taken into account to move forward towards achieving the goal of resuming exports first according to the new data after the court's decision." International, and then discuss other outstanding technical issues between the center and the region.

 

The ministry stressed, "the importance of revenues from resuming the region's oil exports in supplying the federal budget according to the agreed quantities," noting that it "expressed all of this in bilateral meetings with the region's delegation."

 

And she expressed her hope, "in light of the positive atmosphere and bilateral understandings, to reach an agreement to resume oil exports soon," explaining that "in the event that a final agreement is reached in accordance with the new understandings to export oil, this will be announced in due course." 

 

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Views 34

Added 04/02/2023 - 4:04 PM

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Oil: Resumption of exports through Ceyhan port will be fast

• Today 16:00
• Oil: Resumption of exports through Ceyhan port will be fast | Information (almaalomah-me.translate.goog)

Information/follow-up.

On Sunday, the Oil Ministry issued a clarification on the region's oil exports, while expressing hope that an agreement to resume oil exports will be reached soon.

The ministry said in a statement received by the agency / information /, that "the government is keen to speed up the consumption of oil exports to the region through the Turkish port of Ceyhan and work to bring closer views to serve the public interest, Noting that "the flexibility is required to move forward towards achieving the goal of resuming export first according to the new data after the decision of the International Court, and then discussing other outstanding technical issues between the center and the region."

The ministry stressed "the importance of revenues derived from the consumption of the region's oil export in supplementing the federal budget according to the agreed quantities," pointing out that it "expressed all this in bilateral meetings with the region's delegation."

She expressed her hope that "in light of the positive atmosphere and bilateral understandings, an agreement will be reached to resume oil exports soon," explaining that "in the event that a final agreement is reached in accordance with the new understandings for oil exports, this will be announced in due course.” Finished/25hr

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Formation of a joint room between the Ministry of Natural Resources in the Kurdistan Region and the National Oil Marketing Company "SOMO"

One News One News

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Reuters: Paris court embarrassed Türkiye and Kurdistan

 18 hours ago

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A Reuters report confirmed that the ruling of the International Trade Court in Paris in favor of the Iraqi government against Kurdistan's illegal oil exports and the exposed Turkish complicity put them in a legal impasse after the court's ruling showed that the Iraqi government has the right to control loading exports.

The report stated, “According to three sources, Turkey was also asked to pay 50 percent of the discount under which the KRG oil was sold. However, Turkey claimed that the international tribunal canceled four of Iraq’s five demands and ordered Iraq to pay compensation to Turkey, without mentioning the amount. One of the sources said that Turkey also won a corresponding demand that Iraq pay the pipeline production fees.

A source familiar with the case said, “Based on all judgments, the net amount owed by Turkey to Iraq was about $1.5 billion before interest. According to a Turkish source, Iraq’s initial request was about $33 billion,” noting that “the arbitration case covers the period from 2014 to 2018, while the second arbitration case, which will take about two years, will cover the period from 2018 onwards.”

And the report indicated that “the ruling forced Turkey to stop pumping about 450 thousand barrels per day of Iraqi oil through the pipeline to Ceyhan, while an informed source said that this consisted of 370 thousand barrels per day of KRG crude and only 75 thousand barrels per day of federal crude.” ".

He explained that "the Iraqi SOMO company will have to issue instructions to Turkey regarding shipping the ships, otherwise the crude oil will be stored without anywhere to go," noting that "the legal impasse in which Turkey and Kurdistan were placed forced the two to conduct negotiations with the Iraqi government on how to reach an agreement." Mutual on the exports of northern Iraq. A KRG source said Turkey had no choice but to halt pipeline flows until an agreement was reached.

The report indicated that “Kurdistan’s sales of crude oil reached a total value of $12.3 billion in 2022, an increase of 62 percent over 2017, and as of June 2015, the Kurdistan Regional Government resumed independent oil sales and signed several prepayment agreements with oil trading houses without reference.” to the federal government, while commercial sources said that the Kurdistan region, with the cessation of its oil exports, stopped paying energy traders, including Vitol and Petraco, for crude shipping deals worth six billion dollars.

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The Iraqi Oil Ministry has issued a statement on the oil issue in the Kurdistan Region

04:06 - 02/04/2023

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The Iraqi Oil Ministry has issued a statement on the export of oil from the Kurdistan Region of Iraq (KRG).
 
The Iraqi Oil Ministry said in a statement that the government insists on accelerating the resumption of oil exports from the Kurdistan Region through the Turkish World Port, as well as working to bring views closer to serve the public interest.

We have taken the necessary steps to resume oil exports 

"We have shown softness and taken the necessary steps to resume oil exports after the decision of the International Court of Justice, and then discuss other pending technical issues between the center and the region

After the two sides reach an agreement, it will be officially announced and oil exports will resume

The Oil Ministry stressed the importance of resuming oil exports to complete the federal budget according to the amount agreed in the budget, and said, "All these issues were discussed in bilateral meetings with the Kurdistan Regional Government delegation. . . . .

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Mahmoud Hafidzadeh: The agreement with Baghdad on oil is a great victory

10:12 - 02/04/2023

Read 4521 times

 

 

 

KURDISH:

Kurdistan Regional Government (KRG) will continue to export oil to Baghdad, said Mahmoud Hafidzadeh, grandson of Kurdistan's King Sheikh Mahmoud Hafidzadeh.

"This is a great victory for the Kurds and the Kurdistan Regional Government, contrary to the analysts who understand that this agreement is a failure of the Kurds and the Kurdistan Regional Government," Hafidzadeh wrote.

 The oil revenue goes directly to the KRG bank account without any problems

He added that the Kurdistan Regional Government will continue to export oil, the oil revenues will go directly to the bank account of the Kurdistan Regional Government and will be treated independently.

The KRG will continue to discover new oil fields and new contracts

Mahmoud Hafidzadeh said the Kurdistan Regional Government will continue to find new oil fields and new contracts with Kurdistan oil buyers, and alongside the Iraqi government with SOMO will supervise the entire process and only sell through SOMO, which is easy for the Kurdistan Regional Government

He said that the sale of oil will be more profitable for the Kurdistan Region than before, which is $ 10 per barrel difference, in terms of political and international law, the Kurdistan Region can sell its oil without problems  Countries refused to buy Kurdistan oil for various legal and political reasons.

Kurdistan Regional Government (KRG) has suspended oil exports through Turkey since March 25 this year

Kurdistan Regional Government (KRG) has suspended oil exports from the Kurdistan Region through Turkey since March 25, 2013. The Iraqi government and the Kurdistan Regional Government (KRG) are currently in talks to resume oil exports.

The Kurdistan Regional Government (KRG) will resume oil exports to Turkey within two days after more than a week of suspension of oil exports and an agreement between Baghdad and Erbil on the management of the oil issue, two sources said.

The sources said that the Kurdistan Region and Baghdad have agreed to sell oil through the Iraqi Oil Marketing Company (SOMO), which means that Erbil will no longer unilaterally manage the oil issue.

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Bafel Jalal Talabani issued a message

02:21 - 02/04/2023

It has been read 20416 times

 

 

 

KUNDUZ

, Kurdistan Regional Government (KRG) President Bafel Jalal Talabani said on Wednesday that the PUK has been trying to reach an agreement with Baghdad for years And it puts our region in danger rather than working together and demanding our rights in Baghdad. 

Bafel Jalal Talabani, the Kurdistan Regional Government (KRG) President, said in a message Sunday afternoon, "After the decision of the Paris Court and the suspension of oil exports through Turkey, for the future of our nation "The total oil revenues throughout Iraq should go to one treasury.

The share of the region  should be determined and the salaries of the employees and pensioners should be guaranteed

He said the Kurdistan Region's share in the Iraqi budget and revenue should be determined and the salaries of employees and pensioners should be guaranteed Have Iraqi oil and gas and be part of management and decision-making.

Internal conflicts and authoritarianism weaken our institution

"The PUK has been trying to reach an agreement with Baghdad for years and end the conflicts. The right thinking, coordination and working together, not distance and deepening the problems, internal conflicts and dictatorship, weakens our institution and puts our region in danger Demanding our rights in Baghdad.” 

 We do not consider any force or party more loyal to Kurdistan and its highest interests than ourselves

"The PUK has shed a river of blood for the sake of Kurdistan's pride and prosperity and we do not consider any force or party more loyal to Kurdistan and achieve its highest interests, so the logical and responsible step is to reach an agreement with Baghdad."

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Baghdad, Erbil to jointly manage Kurdistan’s oil under new deal: Source

22 hours ago

Aveen Karimaveeenkarim

The Kurdistan Region's independent oil pipeline near the Turkish border on June 1, 2013. Photo: Fazel Hawramy

ERBIL, Kurdistan Region - Baghdad and Erbil are expected to sign a deal that will allow both parties to jointly manage oil exports from the Kurdistan Region and will see a resumption in exports as early as Tuesday, a source briefed about the agreement told Rudaw English.

As negotiations continue between the Kurdistan Regional Government (KRG) and the federal government in Iraq aimed at finalizing the deal, the source said on Saturday evening that the agreement is expected to be officially announced early next week.

Rudaw understands that the agreement consists of joint oil exports by the KRG’s Ministry of Natural Resources and Iraq’s State Organization for Marketing of Oil (SOMO). The revenue from the exports will be stored in an account managed by the KRG under the observation of the federal government in Iraq, the source added.

Oil firms in the Kurdistan Region halted production or reduced output after a Paris-based arbitration court last week ruled that Turkey had violated an agreement with Iraq by allowing independent oil exports from the Region through its pipeline in 2014. Oil exports from the Kurdistan Region have been halted for a week as a result.

In the wake of the ruling, KRG delegations have traveled to Baghdad in an attempt to reach an agreement.

Another source familiar with the negotiations told Rudaw on Friday that the KRG and Iraqi government had reached a preliminary agreement, but that other meetings were still needed.

The anticipated deal will restore stability to the oil market as well as for international oil companies (IOCs) operating in the Region. The halt in oil exports has jeopardized the production of around 450,000 barrels of oil per day as IOCs are storing produce. The suspension of oil exports to the port of Ceyhan also contributed to a 5.7 percent rise in global oil prices.

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

The court ruling and Baghdad-Erbil relations

Tension between the KRG and federal Iraq flared following a court ruling early last year which declared the Kurdistan Region’s energy sector unconstitutional.

“If Baghdad and Erbil now quickly agree a joint marketing scheme, perhaps just one to last until a federal hydrocarbons law is passed, then there is no damage to Baghdad-Kurdistan relations and the crisis has actually just moved us to a solution even faster,” Michael Knights, analyst and fellow at The Washington Institute, told Rudaw English on Wednesday.

The peak of tense relations between the KRG and Iraq coincided with a time of political uncertainty and instability, but Iraqi Prime Minister Mohammed Shia’ al-Sudani has shown signs of working to ease them since he took office in October.

Last month, a budget agreement was reached between Erbil and Baghdad, with the country finally passing a budget after nearly a year without one in place.

“The Sudani government was moving ahead with a joint marketing deal with Kurdistan and this will only accelerate the negotiations, because now half a million barrels of global supply is on the line,” Knights added talks regarding oil between both sides.

Arbitration court ruling

The International Chamber of Commerce (ICC) arbitration court ruled on March 23 that Turkey had breached a 1973 pipeline agreement that obliges the Turkish government to abide by instructions issued by Iraq regarding the transport of crude oil exported from Iraq. Iraq welcomed the ruling, claiming to be triumphant.

However, Turkey’s Ministry of Energy and Natural Resources then issued a statement arguing that the court had in fact rejected four of Iraq’s five claims, without mentioning what these were, adding that Iraq should in fact pay Turkey compensation.

Following the decision, Turkey informed Iraq that Ankara would no longer allow KRG crude to be loaded onto ships at Ceyhan port without permission from Baghdad.

“The case in question is essentially a result of the ongoing dispute on the right to manage oil resources between the Federal Government of Iraq and the Kurdistan Regional Government, a constitutional part of Iraq,” the ministry added, suggesting the disagreement lies between Baghdad and Erbil.

On Friday, the United States urged Baghdad and Ankara to end the week-long halt of the flow of the Kurdistan Region's oil. "We have urged the governments of Turkey and Iraq to resume the flow of oil through the Iraq-Turkey pipeline," a US State Department official told Rudaw.

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POSTED ON 2023-04-02 BY SOTALIRAQ

New agreement between Baghdad and Erbil

Informed sources revealed that a meeting was held between the delegation of Kurdistan and the federal government in Baghdad yesterday, which resulted in an agreement on a new mechanism for selling the oil of the Kurdistan region in a joint way.

This meeting will be followed by other meetings to agree on oil contracts for the Kurdistan region and find new buyers for the region's oil from the port of Ceyhan, jointly, in addition to the existing buyers, in a step that would reassure the producing companies and buyers.

The President of the Kurdistan Region, Nechirvan Barzani, had sent a message to the Prime Minister, Muhammad Shia al-Sudani, and the President of the Kurdistan Regional Government, Masrour Barzani, held talks with the Prime Minister during a telephone conversation. According to the sources, “all the companies that were buying the oil of the Kurdistan region have been informed of the need to sign new contracts, as the oil of the Kurdistan region will be sold from now on according to international prices, that is, it will not be sold for $10 less, but rather at the price at which the Iraqi Oil Marketing Company sells it.” Somo oil, and with this agreement, the sale of the Kurdistan region’s oil will be approved by the Iraqi government.”

Earlier, "international oil companies confirmed that there is a great opportunity to reach an agreement between the Kurdistan Regional Government and the federal government to resume oil exports."