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Iraq says technical matters holding back oil from Turkey

Draw media ByKadhim Ajrash and Khalid Al Ansary-  bloomberg  Iraq said it’s working with oil buyers and the Turkish government to resume almost half a million barrels a day of crude exports from a Mediterranean port “as soon as possible.” Iraq said it’s working with oil buyers and the Turkish government to resume almost half a million barrels a day of crude exports from a Mediterranean port “as soon as possible.” The delay is due to “technical procedures only and they need to be completed legally,” Basim al-Awadi, a government spokesman, said to Bloomberg on Wednesday. This should “only take a short period.” Ankara halted Iraqi shipments from Ceyhan — most of them from the region of Kurdistan — just over a month ago. That was in response to an international legal ruling that it owed Baghdad $1.5 billion related to past exports from the terminal. The dispute has held back oil worth hundreds of millions of dollars. It helped propel Brent crude beyond $85 a barrel in early April, before traders’ concerns over the state of the global economy pushed the benchmark below $80. If the supplies restart soon, they could put further pressure on prices. As part of the discussions with oil traders, Somo wants to ensure that Kurdish crude is sold according to international prices, al-Awadi said. That signals that Baghdad will try to cut the steep discount long applied to Kurdish oil. Iraq brought the case against Turkey at the Paris-based International Chamber of Commerce as part of a broader attempt to rein in the semi-autonomous Kurdistan Regional Government and force it to stop exporting oil through Ceyhan independently. Baghdad and the Kurdish government struck a temporary deal earlier this month designed to get oil flowing again from the port. But Turkey has yet to agree to that. “There is communication with the Turkish government,” said al-Awadi. Turkish authorities have “requested a short period of time as they examine the oil-pumping lines and pipelines in order to ensure their safety following two devastating nearby earthquakes in February,” he said. Officials from Turkey have previously said they want to negotiate the $1.5 billion settlement before reopening a pipeline running from northern Iraq to Ceyhan and restarting shipments. Gulf Keystone Petroleum Ltd., a London-listed company operating in Kurdistan, said it would cut spending to preserve liquidity as the shut-in drags on. Its stock slumped by 6.3 percent to the lowest in more than two years on a closing basis on Thursday, with the firm saying it’s now owed more than $100 million by the KRG for its production. The shares of DNO ASA and Genel Energy Plc, which also pump crude in Kurdistan, are down this week too. “The lack of crude oil exports for a month has further exacerbated delays in KRG payments to international oil companies,” Gulf Keystone said in a statement.  

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Energy Geopolitics and Conflict between Energy Basins

Draw Media Bahrooz Jaafar Executive Summary Since early 2022, Russia and Iran have been enjoying rising oil and natural gas prices due to the smell of the war in Ukraine. Only one month before the Ukraine war broke out, the US secretary department sent a non-formal massage (non-paper) to each of the energy departments in Greece, Cyprus and Israel's s foreign affairs ministries, announcing that they suspend their support for Eastern Mediterranean Gas Pipeline. This will kill Israel and Cyprus's dream to export natural gas to Europe via the Crete island in Greece! Are these conflicts more energy-related, or do they have historical and political depth? Will natural gas pipelines (the new energy geopolitics) lead to a new common regional cooperation system, or is it a source of conflict and increasing regional problems? This study, from the Mediterranean Institute for Regional Studies, attempts to understand the essence of problems by identifying three main energy basins and showing what the new regional and global energy system will look like. First: Energy security and the world's need for oil and natural gas Energy security means balancing national security with the availability of cheap natural resources to meet domestic needs. According to the US Energy Information Administration, in 1980, the world consumed 53 trillion cubic feet of natural gas, but in 2010, the world consumed 113 trillion cubic feet of natural gas{1}. In 2022, the world's demand for natural gas will reach 146.482 trillion cubic feet of natural gas, which means that the world's demand for natural gas will increase by 4.6% annually{2}. Similarly, in 2010, the world consumed 86.4 million barrels of oil per day, but in 2020, 91 million barrels of oil per day, and in 2022, the world consumed 100.80 million barrels per day{3}. The demand for natural gas and oil has increased: In the simplest terms, this means that oil and natural gas are still the world's top commodities, and millions, if not billions, of cars, planes, ships, factories, power grids, and large and medium-sized industries are still employed. Without natural gas and oil, the global economy would be largely paralyzed. It also means that although humanity has reached the last stage of great progress and innovation in its history, it has yet to find an alternative to oil and natural gas. Just as coal was hugely influential in previous centuries, and then the role became oil, today, natural gas is in the most influential days of its life. In 2022, natural gas has had the strongest impact on international relations: Second: The Caspian Basin: a new Silk Road, a new conflict, a new integration Caspian refers to the world's largest enclosed sea; Iran, Russia, Azerbaijan, Kazakhstan, and Turkmenistan are located in the Caspian basin. All of them have owned oil and natural gas reserves. Geographically, it lies between Europe and Asia; east of the Caucasus, West of the broad steppe of Central Asia, south of the fertile plains of Southern Russia in Eastern Europe, and north of the mountainous Iranian Plateau of Western Asia (this region is known as the heart of the world. Whoever controls it can control the world){4}. These regional factions have long sought to build an integration like the European Union. After the 2021 tensions between Armenia and Azerbaijan, it became clear that Russia has a complete hegemony and ally in the region. 2. 1. Europe will no longer heat itself with Russian gas? However, it can be seen hydrocarbon as a common ground. However, the first third of the world's natural gas reserves are located in Asia: Russia (19.9%) of natural gas and Iran (17.1%) and Qatar (13.1%) in the Arabian Gulf. Although Qatar is a US ally and European natural gas supply, at the same time, Qatar is the Taliban and Iran's ally. By this word, (50.1%) of the world's natural gas reserves are owned by three alliance countries. Fourth is the United States (6.7%), which uses it more for domestic needs{5}. Europe consumes 540 billion cubic meters of gas annually, while Russia supplies 40 per cent of that. The Nord Stream 2 pipeline will transport Russian natural gas to Germany via Ukraine. Ukraine itself is a good beneficiary of taxes on gas pipelines{6}. On September 27, 2022, it was discovered that natural gas had leaked into the water from the North Stream 2 pipeline 70 meters underwater. EU foreign policy chief Josep Borrell called the incident deliberate and said the aim was to make natural gas more expensive for Europe; 2-2. Russian-Ukrainian War: Diplomacy failed to prevent war Indeed, this is not a conflict between the two ordinary countries; as we have seen, with the outbreak of the war on February 24 and February 24, 2022, the borders and sovereignty of countries, in general, have faded. This is the collision of at least two great continents, two different civilizations that have been in conflict for thousands of years. Therefore, it is still the beginning of the war, which Russia, Europe, the United States, Britain, China and Ukraine are part of; the spark has reached Taiwan and the Middle East. Is the gas pipeline alone responsible for the huge smoke that has engulfed the world, or where does the problem come from? In 1991, Mikhail Gorbachev declared the fall of the Soviet Union: 16 countries declared independence due to the dissolution of the Soviet Union. The world entered a different phase under the US and NATO presidencies, and Russia accepted the new system on the condition that its current hegemony and borders would be maintained. However, after 1999, the United States and Europe invited Poland, Hungary and the Czech Republic to the European Club and made them members of NATO. The United States assured it would not deploy nuclear weapons in these countries, and Russia remained silent. In 2004, US President George W. Bush announced that Romania, Slovakia, Slovenia, Bulgaria, Lithuania and Estonia would become members of NATO. All these countries were formerly under the control of the Soviet Union. The Kremlin, therefore, understood that it should take the threat seriously. Then, in (2008) the US administration, under the direct supervision of Barack Obama and members of Bulgaria, Austria, Turkey and Romania, signed the Nabucco Pipeline project to transport natural gas from Central Asia (from the Caspian region) to Central Europe (They tried to transport gas from the region under Russia's ears without valuing Russia). In 2014, Ukrainian protesters, as media agencies showed that the United States and Europe backed them) forced President Viktor Yanukovych to flee to Moscow and turn his royal palace into a museum. They brought forward another team close to the West and have been trying to make Ukraine a member of NATO for a long time! This time, Russia considered regaining control of the Crimean peninsula. In 2014, they fought Crimea (Crimea: located north of the Black Sea and south of Ukraine, the island has a great military and material position, especially the port of Sevastopol, where most of the world's powers are clashed from here). With the occupation of Crimea, the Western power will no longer be able to receive any military assistance from the Black Sea. In addition, the threat of a NATO-Russian conflict in Crimea disrupted the Nabucco pipeline, especially when the world was busy with the war against terrorism (ISIS). The outbreak of the Syrian crisis in 2011 gave Russia an excuse to cross the Mediterranean Sea: This occurred from the Black Sea to the Marmara, and Russian warships reached the port of Tartus in Syria. Russia is still an important player in the Syrian conflict. The US administration has described China's economic and Russian military incursions as the biggest threat to national security. Therefore, the United States deployed long-range weapons and missiles in Romania (2016) and Poland (2020). Third: Conceptualization and theorizing: A call to securitization theory Theory in international relations helps us to understand phenomena. The securitization theory sparked in 1983 with Barry Buzan's book, "People, State, Fear: The National Security Problem in International Relations". Later, Buzan and their colleague established "the Copenhagen School" as an important contribution to the science of international relations. According to this school, national security policy is not natural but carefully formulated by politicians and thinkers{7}. Here, securitization means that when an issue is labeled a "threat" and "danger", the social and political institutions must be provided for it. In other words, security issues do not come from the outside alone but must be addressed from the inside by security actors. For example, indicating "immigrants" as a threat to national security makes "immigrants" a less important issue to be directly addressed at all levels of "borders". This theory emphasizes that issues are not inherently dangerous but that when they are "securitized," they become security problems. This "security" was previously seen in a narrow context as a matter of military confrontation during the Soviet-American Cold War. Then the concept shifted to various levels such as regional security, energy security, environmental security, social security, food security, cyber security, etc. Hence, "issues" or "new phenomena" are considered security threats to culture, identity, economic status and national incomes. When US troops suddenly withdrew from Afghanistan in 2021, in less than a week, the entire Afghanistan, worth (85) billion US$, weapons and military equipment fell into the hands of the Taliban{8}. This made serious questions about the US personality and gave Putin an incentive to impose an energy embargo on Europe and invade Ukraine in a cold winter. Ukraine has been under Russian rule for 200 years. For the Russians, Ukraine is an important part of Russian identity, language, geography and authenticity. From the beginning of the war, the price of oil rose from $ 60 to $ 94; the Wall Street Journal saw the price of oil reach $ 100-120, then reach the same price and more{9}. The European gas crisis and the sale of Russian gas and grain in the country's currency (Ruble) mean that Russia has done its duties successfully. Even the Biden administration has called on OPEC to increase oil production, but OPEC has ignored it from the beginning. Three allies, Russia, China, and Iran, have been prominent factors in global energy prices. On the other hand, another weakness of Europe is that they do not have a unified army; their entire military presence is considered to be NATO, which the United States dominates. Fourth: The gas pipeline in the eastern Mediterranean region Knowing the nature of the distribution of power relations about energy issues depends on recognizing the strategic energy basins and alliances in these regions. This is "energy geopolitics": In 2010, Cyprus and Israel announced that they had discovered underwater natural gas in their offshore borders. In August 2019, Cyprus, Israel and Greece signed a natural gas alliance agreement in Athens with the support of the United States. Even Frank Fannon, the US Assistant Secretary of State for Natural Resources, was present {10}. Egypt, Cyprus, Israel and Greece have established the Eastern Mediterranean Gas Forum (EMGF), AS France, Italy, Spain, Jordan, the Palestinian Authority, and Lebanon are also members of the EMGF, and former US Presidents and Secretaries of State Mike Pompeo have expressed strong support for the project. The discovery of the reserves in several major fields concerned Turkey in the southern Mediterranean. A strategic dream has been true in Southern Europe on the other side: Europe does not need Russian natural gas؛. From here on, another pipeline to Europe imports gas from Israel and Cyprus. In early 2021, the 1,900-km East-Med Pipeline has commissioned to transport Israeli and Cypriot natural gas through Greece to Italy, Macedonia, Serbia and other countries. However, this project is very controversial:  - The Cyprus issue remains pending in the region. Turkey does not recognize the Greek Cypriot state and the Turkish part of Cyprus (TRNC) remains marginalized by the international community, which has exacerbated the natural gas problem. The main heads of gas production in the eastern Mediterranean are at odds with Turkey. So, it has been the main cause of regional tension. - Russia is stationed in Syria, and Turkey does not want the northeastern regions of Syria, which contain oil and natural gas reserves, to be under the control of Kurdish forces. - The Mediterranean Sea is the crossroads between three continents: Asia, Africa and Europe (Egypt, Israel, Cyprus, Greece and Turkey). - Environmental problems, migrants, human trafficking, etc., continue in this region. - The deployment of Italian and French warships in the Mediterranean Sea to oppose Turkey's maneuvers. - US and British warships stationed in the Mediterranean basin - The project has led Israel and motivated to become a producer and exporter of natural gas (Israel: imported natural gas from Azerbaijan through Turkish territory in the 1990s and from Egypt from 2008 to 2012). In March 2021, Israel's Delek Drilling sold a 22 per cent stake in the Tamar gas field to UAE's Mubadala Petroleum for more than $1 billion {11}. - the Mediterranean, led by France in Europe and Israel in the Middle East, Britain and the United States, look forward to the oil and gas reserves in Kirkuk and the Kurdistan Region into part of the eastern faction. Therefore, in response to these steps of the West, Russian and Turkish companies are participating in all fields of oil and gas services in the Kurdistan Region of Iraq. 4. 1. Why did the US administration withdraw support for the East-Med pipeline project? On January 9 January 9. 2022. the ministries of foreign affairs of Greece, Israel and Cyprus received a non-formal letter from the US secretary department. The letter states that the US administration will suspend its support for the East-Med gas pipeline project, which has sparked regional tensions. The additional gas reserves in the region can be utilized through electricity cables to produce and promote the joint regional project. The letter comes as the United States and Europe have been preparing for a dangerous confrontation with Russia (a month before the outbreak of the Russian-Ukrainian war). The Eastern Mediterranean Natural Gas Project is immensely important to the United States and the West, so it does not make any excuse for any researcher to believe that support for Europe and the United States will be suspended for this project. However, the following points should be considered: The project has been hurting Turkey for ten years. Therefore, the rumors of suspending US aid are directly related to the Ukraine crisis, a US compromise for Turkey not to get closer to Russia. If the US administration intended to end the project, it would have notified them through the embassies of the three countries in Washington. The US administration believes that the project will bring regional tension and conflict rather than peace and cooperation and has led to the neglect of Turkey in the region. Therefore, Turkey described the US announcement to suspend the EMGF as a great victory for itself. However, Turkey has received this message erroneously because they state that "every line to Europe must pass through Turkey. The United States desire the natural gas projects in the eastern Mediterranean to be in line with European environmental plans and policies. Therefore, they proposed to become an electricity and cable exchange network in the region. The European Union has decided to reduce its use of natural gas by 25 per cent by 2030 and not use it completely by 2050{12}. · The project is expensive and will not solve Europe's energy crisis entirely. Substantially, during the discovery of natural gas, energy giant companies have flocked to the eastern Mediterranean since 2010, such as Noble Energy and Exxon Mobile as the two major US companies, British Petroleum (BP), French Total, Italian Eni, Israeli Delek Drilling, German DEA. Recently, the UAE has devoted all its political, economic and diplomatic strength to the Mediterranean. The UAE has normalized relations with Israel and Turkey. In 2022, Syrian President Bashar al-Assad visited the UAE after 12 years of war and crisis in Syria. Are these signs a simple event and a normal regional step? Is it normal to spend $7 billion and start transporting Cypriot and Israeli natural gas to Greece and other countries in 2021? Fifth: The West and its environmental issues The European Energy Network has announced that it will reach a neutral level of environmental issues by 2050. According to this roadmap, Europe will no longer rely on oil and natural gas (neither exported nor imported). Europe and the Mediterranean countries have had stable agreements since the end of the Cold War; For example, the Barcelona Declaration of 1999: these three continents fall on the same sea; they called it the Euro-Mediterranean Partnership. In 2008, it was renamed the Union for the Mediterranean. According to these agreements, Europe will intervene in any country in the name of cooperation in the Mediterranean Sea, such as Syria, Lebanon, Cyprus, Libya, etc. Therefore, the US administration has called for the Eastern Mediterranean gas project to be conducted by European environmental policies. Establishment of a large joint power line to transport and use excess gas produced off the coast of Cyprus, Israel and Egypt with Greece, thus connecting three neighboring countries on different continents. However, it is not easy because it covers a large area of more than 1,300 miles, and again, this project will cause Turkey's objections. Legally, these waters have an UN-designated exclusive economic zone (EEZ), which mostly passes through Turkey. Experts believe that after the US decision in early 2022, the gas in the eastern Mediterranean will be only for the Mediterranean region, and a certain region will not be economically relevant to Europe. Investors are more likely to follow the statements of Israeli Energy Minister Karin Elharar, who said that in 2022, his office would focus on renewable energy for the production of energy, especially through wind and solar {13}. Sixth: Kurdistan Region of Iraq: Hydrocarbon potential, geographical location, political decisions The population of the Kurdistan Region has exceeded 6 million people, more than 5 million of whom live in cities. 1.4 million people receive salaries from the government, which requires 870 billion Iraqi dinars (about 750 million US dollars) monthly. The armed and security forces of the Kurdistan Region are 270,000 people{14}. However, the Kurdistan Regional Government (KRG) claims to have between 3.7 and 5.3 trillion cubic feet of natural gas and 45 to 60 billion barrels of oil reserves. Almost the Kurdistan Region ranks between the seventh and ninth-largest natural gas reserves in the world, with between 3% and 5% of the world's natural gas reserves{15}. The existence of hydrocarbon potential for the Kurdistan Region within the framework of the Iraqi state requires deep thinking in the regional chessboard and conflicts: How does the geopolitical aspect of the Kurdistan Region affect its natural reserves? The Kurdistan Region is directly involved in the war between Russia and NATO in the Caspian region. It is also more directly involved in the eastern Mediterranean's energy geopolitics, environment and political conflict. Russian companies are currently operating in Kurdistan Region. Iran is a Russian ally in all areas of the Kurdistan Region, while the Germans have been training the Kurdish forces (Peshmerga) since 2014. The French consider the Kurds their friends, and the US has the largest military base in the Kurdistan Region. In other words, the KRI and its natural gas are located between three different energy geopolitical basins: the Mediterranean Sea in the northwest the Qazvin (Caspian) basin in the east and northeast the Gulf region ( Qatar, UAE and Saudi Arabia) from the south For this reason, if the KRI does not maintain the balance, the Kurdistan energy line will bring chaos to the region. This geopolitical influence is reflected in decision-makers behavior in the Kurdistan Region; When the UAE normalized relations with Israel and Turkey in 2021, the KRG's Prime Minister Masrour Barzani will visit the UAE directly, and then the KRG's President Nechirvan Barzani will visit Turkey. In 2022, when the natural gas and fuel crisis in Europe and the United States due to the war in Ukraine, the Emir of Qatar visited the United States; following this, the Prime Minister of the KRG arrived in Doha on February 15, 2022, at the invitation of Emir Tamim bin Hamad Al Thani. As well as, during his participation in the 2022 global energy forum –Atlantic Council, the PM of the KRG pointed out that "We will also export natural gas to Baghdad, Turkey and Europe" he said Atlantic Council's Global Energy Forum in Dubai, United Arab Emirates (UAE), March 28, 2022{16}. Moreover, Our goal is to export Kurdistan's gas to Europe," said Deputy Prime Minister Qubad Talabani at the Delphi Economic Forum in Athens in April 2022. The Islamic Republic targeted the residence of Sheikh Baz Karim Barzanji, the executive director of Kar group company, with 16 missiles. Further to remind, 60% of the Kurdistan oil pipeline is owned by Kar company, and Rosneft owns 40% of Kurdistan and its oil marketing. So, Russia and Iran will never want the Kurdistan Region's natural gas to replace Iranian gas for Iraq, nor become it facilitates for Europe. Subsequently, in June and July 2022, militia armed groups targeted the Kormor field three times (Kor Mor is the largest natural gas and LPG field in the Kurdistan Region, operated by UAE Pearl Petroleum since 2007). The Kurdistan Region can work to maintain its balance of power and neutrality; Perhaps the best scenario is for the Kurdistan Region to exercise its power and validities within the framework of the Iraqi Constitution, Articles 111, 112, 116 and 122, as well as Law No. 22 of 2005 on the Oil and Gas Law which is issued in the Kurdistan Parliament in (2007). Iraq is not a stable country. The Kurdistan Region should take every opportunity to work with the central government to pass an oil and gas law with the support of the US administration (because Iraq still needs an oil and gas law). This opportunity is also important for the Iraqi central government; instead of importing natural gas from Iran at higher market prices, or instead of demanding electricity from Jordan, Egypt and the Gulf, Kurdistan's gas should be used inside Iraq to generate electricity for central and southern provinces of Iraq: It is geographically closer, it is cheaper, it will be implemented within one country, it will lead to more political coexistence, and the Shiite militias close to Iran may not repeat the threats and shelling of the Kurdistan Region's fields. "Everywhere, the oil and gas is not only related to oil and gas in terms of chemical composition and geological dimensions, not only an economic issue but also an environmental, security, political and geopolitical issue. So, It is not an exaggeration to say, "Tell me where the pipeline is going, and I will tell you where your political destiny is going". Conclusion Finally, so-called "energy security" is generally related to the reasons for the world's high and low prices of oil and natural gas. All three main basins of the Caspian, the Gulf, and the eastern Mediterranean are direct threats to global economic and political security. The US administration's decision to withdraw their support for the EMG project in January 2022 was a tactic through an unofficial paper. This is further confirmed by signing a new deal between Israel, Egypt and the European Union in June 2022 to export gas from the eastern Mediterranean. As the president of the European Commission, Ursula von der Leyen said the EU would use Cypriot and Israeli natural gas as an alternative to Russian gas. However, the European Union and the United States will continue their environmental programs to reduce their dependence on oil and natural gas. Pressure on OPEC will continue to supply much more amount of oil. All this does not mean that by mid-2023, we will see oil prices below $70, But in 2024, we will see oil prices below $40. However, natural gas will be the main market and geopolitical conflict topic for many years. Therefore, it is better for developing oil-producing countries such as Iraq, which suffers from unnatural political conflict and violence, to take advantage of this temporary opportunity. Finally, one of the main characteristics that distinguish the Russia and Ukraine war from other world wars is that instead of only a great military, economic, financial and political impact on the two direct countries participating in the war, the war has also created great political, economic and security pressure on those indirectly involved in the war.      Click here to PDF  References {1} US. Energy Information Administration (2012) Global natural gas consumption doubled from 1980 to 2010. For more: https://www.eia.gov/todayinenergy/detail.php?id=5810 {2} Jazeera Net (2019) How much oil do we consume?.. Facts about black gold in the world. For more click here (Translated from Arabic to English language).    https://www.aljazeera.net › 2019 › كم... {3} Statista (2021) Daily global crude oil demand 2006-2026 – Statista {4} Mammadyarov, E (2007) "A new way for the Caspian region: cooperation and integration". Turkish Policy Quarterly (TPQ). P 2-8. {5} Henderson, S (2022) "Reality Check for Israel’s Natural Gas Plans", The Washington Institute for Near East Policy. {6}Reuters (2021) Explainer: Why Russian exports hold sway over European and British gas prices. See here: https://www.reuters.com/business/energy/why-russian-exports-hold-sway-over-european-british-gas-prices-2021-11-03/  {7} Stritzel. H (2014) Securitization Theory and the Copenhagen School. Palgrave Macmillan, London. DOI: https://doi.org/10.1057/9781137307576_2 {8} The hill (2022) McCaul says US withdrawal from Afghanistan has emboldened Russia on Ukraine {9} WSJ (2022) What’s Behind Wall Street’s $100 Oil Forecast? {10} Barkey, J (2022) US pipeline withdrawal marks new chapter in Eastern Mediterranean. Ekathimerini:https: //www.ekathimerini.com/opinion/1176904/us-pipeline-withdrawal-marks-new-chapter-in-eastern-mediterranean/ {11} Bloomberg (2021) UAE-Israel Ties Deepen as Mubadala Buys Gas Stake for $1 Billion . see here: https://www.bloomberg.com/news/articles/2021-09-02/uae-israel-ties-deepen-as-mubadala-buys-gas-stake-for-1-billion {12} Henderson, S (2022). (OP. Cit). {13} I24 News (2021) Energy Minister: Israel wants to focus on renewable energy: https://www.i24news.tv/en/news/israel/politics/1639586438-energy-minister-israel-wants-to-focus-on-renewable-energy {14} Rudaw (2021) Ministry of Planning: The population of the Kurdistan Region is 6.17 million (translated from Kurdish to English language) see here: https://www.rudaw.net/arabic/kurdistan/180120214 {15} Mediterranean Institute for Regional Studies (2020) Stubborn Kurdish Petroleum Resources: Surveying Actual data and investigating the declared Numbers. Research Paper {16} Daily Sabah (2022) KRG in Iraq to start energy exports to Turkey soon: PM Barzani. https://www.dailysabah.com/business/energy/krg-in-iraq-to-start-energy-exports-to-turkey-soon-pm-barzani

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Iraq bids to control Kurdistan oil revenue with contract switch

Draw: Reuters  By Rowena Edwards and Amina Ismail Iraq has made a fresh attempt to control revenue from the semi-autonomous region of Kurdistan by asking oil and gas firms operating there to sign new contracts with state-owned marketer SOMO rather than the Kurdistan Regional Government (KRG). Oil minister Ihsan Ismael on May 7 said Iraq's oil ministry would start implementing a February federal court ruling that deemed the legal foundations of the Kurdistan region's oil and gas sector unconstitutional. read more A letter seen by Reuters shows that the oil ministry appointed international law firm Cleary Gottlieb Steen and Hamilton to approach some oil and gas firms operating in the Kurdistan region to "initiate discussions to bring their operations into line with applicable Iraqi law." Implementing the court decision "will require changes to the contractual regime" for the companies, the letter added. Other firms received a letter directly from the oil minister, one source said. The KRG has repeatedly rejected the federal court ruling. The letters, which were sent on May 8, mark the first direct contact between the ministry and oil firms operating in the Kurdistan region. The move follows years of attempts by the federal government to bring KRG revenues under its control, including local court rulings and threats of international arbitration. The implications of the latest move are not fully clear as more than seven months since elections in Iraq, the formation of a government is still underway. An Iraqi oil ministry legal adviser, who spoke on condition of anonymity, told Reuters that a joint government committee, including representatives from the oil ministry including the minister, Iraq’s National Oil Company (Inoc) as well as the Federal Board of Supreme Audit (FBSA), will conduct a contractual review. The aim is to eventually sign contracts with the central government and not the KRG, the adviser added. Foreign oil firms present in the Kurdistan region including Genel Energy (GENL.L) , Chevron and Gulf Keystone (GKP.L) , and Cleary Gottlieb declined to comment, while Iraq’s oil ministry and oil and gas firm DNO did not immediately respond to requests for comment. The oil ministry has yet to receive responses from the companies concerned and could take further legal measures in the case of no response, one oil ministry official said, without elaborating. Foreign oil firms are unlikely to engage with Baghdad directly without coordination with the KRG, one oil firm representative told Reuters. TENSIONS FLARE UP Baghdad’s persistent attempts to implement the ruling has the capacity to worsen already fraught tensions with Erbil. Iraq’s state-owned North Oil (NOC) claimed on Saturday that KRG forces took control of some oil wells in the disputed region of Kirkuk but the KRG denied the allegation, claiming it was designed to create chaos. read more On May 12, Inoc published an analysis detailing how the KRG’s production-sharing contracts are financially worse for both the government and foreign oil firms than federal Iraq’s own technical service contracts. Meanwhile, Iraq has struggled to attract major fresh investments into its federal energy industry since signing a flurry of post U.S.-invasion deals over a decade ago. read more The Iraqi government has cut oil output targets repeatedly as international oil companies that signed those initial deals leave due to poor returns. Ismael on Monday said Iraq now plans to boost its crude production capacity from around 5 million barrels per day (bpd) to 6 million bpd of crude capacity by the end of 2027, a sharp downward revision from a previous target of 8 mln bpd by that year.

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The KRG oil and gas will be given to KROC

Draw Media In light of the federal court's decision, the Iraqi oil ministry has issued a letter calling for the creation of a company to manage the Kurdistan Oil and Gas, which will belong to the central government, named KROC, and its headquarters would be in Erbil. According to a letter sent by the Iraqi ministry of oil to the Kurdistan Regional Government on March 24, the regional government has been asked to: 🔹 Within 15 days, hand over a copy of all the contracts he has signed since 2004 with oil and gas companies in the field of oil (discovery, development, transportation, sale, export), along with record sales and exports of crude and gas oil, for: 🔸 A team of experts and advisers from the Iraqi oil ministry in the presence of the regional government's authorized representative review all the documents. 🔸 Adapting Kurdistan’s contracts and coordinating them to Iraqi law and the decision of the Supreme Federal Court of Iraq. 🔹 Submitting a request to the Council of Ministers to create an oil company, To be given the authority to manage all the oil and gas activities in those fields that have been contracted by the Kurdistan Regional Government. 🔸 All the rights and obligations of the agreements and contracts made by the regional government will be transferred to its name. 🔸 creating more investment in oil resources through: reducing investment expenditures, better management of oil and gas fields, and increasing exports. 🔹 The Iraqi ministry of oil proposes that the company that manages the region's oil and gas case be named KROC and be under the supervision of the Iraqi Financial Supervisory Board and that the company be owned by the federal government and headquartered in Erbil. 🔹 An expert employee, whose rank is no less than that of the general manager, is in coordination with the Council of Ministers, the Ministry of Finance and the Central Bank of Iraq to open an account at one of the most trusted international banks, and to put all the exports and sales of Oil and Gas in Kurdistan into this bank account. It will be paid on the basis of the region's share of Iraq's public budget, as well as in an arrangement with the Iraqi Ministry of Finance, provided that this is done within 45 days of the agreement to issue the letter (with the approval of the Council of Ministers). 🔹 All the procedures set out in this article as a new policy for the future and all relevant parties will be responsible for their adherence.

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Turkish military planning mid-April operation into southern Iraqi Kurdistan

Draw Media The Turkish military is planning an operation into southern Iraqi Kurdistan in mid-April, the Kurdish Fırat news agency (ANF) reported on Sunday, citing sources in the region. The incursion by the Turkish Armed Forces will take place with the “active participation” of the Kurdistan Democratic Party (KDP) in Iraq, ANF said, the predominant party in Iraqi Kurdistan's western Erbil and Duhok provinces that's a Turkish ally. According to the information, on April 15, 2022, the Turkish army will launch an invasion of HPG guerrilla bases in the Kani Masi area of Duhok province. Turkey regularly launches airstrikes into northern Iraq, where the outlawed Kurdistan Workers’ Party (PKK) has several bases, including its main headquarters in the Qandil mountains.

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Turkey's Grip in the Oil Process Of the Kurdistan Region

Draw Media Turkish oil companies work in the Kurdistan region's 8 oil fields in a way that the Genel Energy company has a share in these oil blocks: Tawke (25%), Bir Bahr (40%), Duhok (40%), Bna Bawe (44%), Taqtaq (44%), Miran (75%), Chia Surkh (60%). While Petoil company has a 20% share in the fields of Chia Surkh and Palkana. This is despite 75 percent of Kurdistan's oil pipeline passing through Turkish territory and being owned by the Turkish energy company. Most of the money for selling Kurdistan's oil goes through filters from Turkish banks and then goes back to the KRG. The importance of the KRG's oil and energy to Turkey The Kurdistan Region has a unique position in turkey's current situation from many perspectives. Without Kurdistan's natural resources, Turkey cannot continue to thrive, without the Controlled Market of Kurdistan, turkey's economy will be in crisis. Without contact with the region, the unemployment problem in the Kurdish areas would increase and the PKK would be more active. Without relations with the Kurdistan region, Turkey will be deprived of Iraq's oil and its future would be more difficult when its hands off the region's oil and gas pipelines. Turkey's need for oil and gas Turkey has undergone major economic growth between 2002 and 2017, making it the 13th largest economy in the world. According to the OECD data, Turkey ranks first in terms of energy needs for the economy to continue to grow. It must be provided continuously and without interruption to the sectors that provide economic growth. Oil production in the Kurdistan region Since 2006, the Kurdistan Region of Iraq has been rapidly conducting search and inspection activities due to contracts with oil companies, with a total of 10 oil wells, 8 of which have had positive results. Gulf Keystone Petroleum company, in the Shekhan fields near the Turkish border, has found a wide area of oil, which is estimated to be between 12 to 15 billion barrels of oil. 45 billion barrels of oil have been found in the Kurdistan Region of Iraq, according to statistics from the KRG's Ministry of Natural Resources, and with the oil have founded in the Shekhan area is expected to be 60-65 billion barrels of oil. Turkey's grip in the region's oil process First: The region's oil pipeline in Turkey The KRG exports about 450,000 barrels of oil abroad daily, all through the Kurdistan Oil Pipeline, which passes through Turkish territory. The Kurdistan Region's oil pipeline is 896 kilometers long, starting at the Kurdistan Region's border at the Khurmalawa field and reaching 221 kilometers by Fishkhabur, according to which 24.6 percent of the oil pipeline is on the Kurdistan Region's border, owned by both Kar Group and Rosneft, a Russian company. The part of the Turkish border is owned by the Turkish energy company and operates by Turkish company Botas. Its 675 kilometers from Fishkhabur to the Turkish port of Jayhan, forms (74.6 percent) of the pipeline's length. Second: Turkish companies in the oil fields of the Kurdistan region Two major Turkish energy companies work in the Kurdistan Region, Both Genal Energy and Petoil currently have contracts and shares with the KRG in several oil fields in the Kurdistan Region. Third: Oil money and Halkbank The KRG's oil money will be transferred to the KRG's private account of Turkish banks. In 2015, the Kurdistan Regional Government's Council of Ministers decided in a letter no. 983: All oil exports and sales revenues must be transferred directly to the KRG's account at the Halkbank in Turkey without the mediation of the Third Bank. The KRG's decision shows the fact that the total amount of oil sales in the Kurdistan Region is being collected in Turkey, and the Central Iraqi Government has pressured turkey on this issue several times, but the process has remained the same.  

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In 4 years of the Turkish occupation of Afrin, (SOHR) has documented over 2,300 violations

Turkish of Afrin four years on | Nearly 7,500 kidnappings and arrests and 2,300 other violations by Turkish forces and their proxy factions Draw Media  The Syrian Observatory for Human Rights (SOHR) has documented the death of 639 Kurdish civilians in Afrin, including 95 children and 86 women in explosions of IEDs and car bombs, airstrikes and ground bombardment by Turkish forces and executions, while some died under torture in prisons run by Turkish-backed factions. Also, SOHR has documented, since the beginning of the Turkish occupation of Afrin until the evening of March 17, 2022, the kidnapping and arrest of over 7,497 Kurdish civilians from Afrin, 1,300 of whom remained imprisoned, while the rest have been released, after most of them paid large ransoms which factions of the Turkish-backed “National Army” required. According to SOHR statistics, over 4,180 families from different Syrian provinces were settled in Afrin, after having been forced to displace from their land, as a part of Turkey’s plan to change the demography of Afrin. Under Russian-Turkish agreements, Afrin was handed over to the Turks in return for allowing the Syrian regime to capture eastern Ghouta. The Syrian Observatory has been all along warning against the Turkish plan of systematic demographic change in Afrin since the first day of the Turkish occupation, where over half of the population of Afrin canton has been forced to displace from their homes, while thousands of families from other provinces have been settled in the canton instead; all of this has taken place in full view of the international community which seemed to be indifferent and kept silent.

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The KRG’s oil income in February

Draw Media The region's oil revenues for February this year were revealed by Masrour Barzani as follows: Last month, February, was 28 days. • The region has sold (422,000) barrels of oil every day. • In February, (11 million and 816,000) barrels of oil were sold. • The average price of a barrel of oil was 83 dollars in February.  • Total revenue was: (980) million dollars. • From The oil sales revenues for last month, only 420 million dollars have remained for the government. • 58 million dollars of the oil revenues have gone to the company's debt. • The amount of 67 million dollars of the revenues have gone to the pipeline rent. • The amount of 435 million dollars of oil revenues have gone to the oil companies spending. • The net revenues that have returned to the government treasury were 420 million dollars. • out of the 420 million dollars of the revenues, 134 million dollars were spent on the employees’ paycheck. • Now, only 286 million dollars are left from the February revenues.  

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“Europe can no longer remain reliant on Kremlin gas”

“Our way of life is worth defending. It is worth the cost. For the next generation, for all those in Ukraine and around the world who believe in Europe. For all those who want to be free.” Addressing the extraordinary Plenary Session of the European Parliament on “Russian aggression against Ukraine”, European Parliament President Roberta Metsola set our four important principles for the future of the European Union. First, Europe can no longer remain reliant on Kremlin gas. “We need to re-double our efforts to diversify our energy systems towards a Europe that is no longer at the behest of autocrats. This will put our energy security on stronger footing.” Secondly, President Metsola said that Europe can no longer welcome Kremlin cash and pretend there are no strings attached. “Putin’s oligarchs and those who bankroll him should no longer be able to use their purchasing power to hide behind a veneer of respectability, in our cities, communities or our sports clubs.” Thirdly, investment in our defense must match our rhetoric. President Metsola emphasized that “Europe must move to have real security and defense Union. We have shown the last week that it is possible and desirable, and more than anything it is necessary.” Fourthly, President Metsola spoke about the importance of fighting the Kremlin’s disinformation campaign. “I call on social media and tech conglomerates to take their responsibility seriously and to understand that there is no being neutral between the fire and the fire brigade. Thanking Ukrainian President Zelenskyy for showing the world what it means to stand up, President Metsola said that the European Parliament recognizes Ukraine’s European perspective. “As our Resolution clearly states, we welcome Ukraine’s application for candidate status and we will work towards that goal. We must face the future together.” In her speech, President Metsola also announced that having a long, proud history of being a thorn in the side of autocrats, the European Parliament will seek a ban on any representative of the Kremlin from entering its premises. “Aggressors and warmongers have no place in the House of democracy.”    

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The Share of the Foreign Companies in the KRG’s Oil Blocks

Draw Media The Kurdistan Region is divided into 57 oil and gas blocks, in Erbil province (21%), Sulaymaniyah province 21%, Duhok, including Mosul province, 32%, and in Garmian with the disputed areas 26% of the blocks. The Ministry of Natural Resources has signed contracts with about 40 foreign companies in 56 blocks, and the KRG's share of all blocks does not exceed 20 percent - 25 percent. In The Kurdistan Region, there are only nine active oil blocks. Seven of them are located in Erbil and Duhok provinces making up 92.7 percent of all the region's oil products, and 7.2 percent of which are located between Sulaymaniyah and Garmian. First: geographical division of Kurdistan region's oil blocks The Kurdistan Region is divided into 57 (oil and gas) metal blocks, 17 of which are located within the borders of disputed areas (but within the KRG's authority). The blocks are divided into areas and provinces in the region in a way that Erbil governorate 12 blocks, Sulaymaniyah governorate 12 blocks, Duhok governorate 18 blocks, and Garmian 15 blocks. Details of the geographical distribution of the oil blocks 1. Tauka block: In Duhok province, it is located in the Zakho district, which is 594 square kilometers and has a total of 1.9 billion barrels of oil. 2. Duhok Center Block: it is located in the north of Duhok city and the middle of the province and is 600 kilometers square. 3. Slevani block: In Duhok province, it covers the south of Zakho district to Mosul Lake and is 700 kilometers square. 4. Sindi-Amedi block: In Duhok province, this block covers Amedi district, Sindi plain, and the north of Zakho district. It’s 2358 km square. 5. Sarsang block: In Duhok province, includes Sarsang, Swaratuka, and northeast of Duhok. Its 1,085 kilometers square and is expected to have 2 billion barrels of oil reserve. 6. Bir Bahr block: In Duhok province, the northern city of Duhok. Its 350 kilometers, contains 1.92 billion barrels of oil reserve. 7. Sheikh Adi block: In Duhok province, it is located in the east of Duhok city and north of Shekhan. It’s 180 square kilometers and contains 1.9 billion barrels of oil reserve. 8. Duhok block: Located in the Center of the Duhok district and the south of Duhok city and Smel district. It’s 162 square kilometers. Contains (2.2) billion barrels of oil reserve. 9. Alqush block: In Duhok governorate, it is located in the south of Duhok city, and its a 331 km square area. 10. Atrush block: In Duhok province. Located the south of the Duhok district. It’s 269 square kilometers and contains 3 billion barrels of oil. 11. Shekhan Block: In Duhok province, 283 square kilometers, It is estimated to be about 10.5 billion barrels of oil reserve. 12. Ain Safni Block: Locate in the Ain Safni area in eastern Mosul. Its 840 kilometers and contains one billion barrels of oil. 13. Dinarta block: In Duhok governorate, includes, Mirga Sur, Barzan, south Akre, and Shiladze. It is 1,139 square kilometers. 14. Akra-Bejil block: In Duhok province, Includes, the Akre district and the Bijil district until the Bekhma area, Its 889 square kilometers and more than one billion barrels of oil reserve. 15. Ruvia block: In Duhok province, Includes, the south of bardarash and the north of the Akre district. It’s 517 square kilometers and contains 1 billion barrels of oil. 16. Sarta block: In Erbil province, it is located in the west of Masif district and south of Akre. It is 607 square kilometers and contains 1 billion barrels of oil. 17. Barda Rash block: In Duhok province, located in the Bardarash district. It is 265 kilometers square and contains 1.5 billion barrels of oil. 18. Bashik block: Located in the town of Bashik in the east of Mosul. It is 350 square kilometers. 19. Erbil block: It is located northwest of Erbil and the Bastora area. It’s 313 square kilometers and is expected to be 1 billion barrels of oil. 20. Erbil Damir Dagh block: Erbil city, Erbil plain, Makhmur road, and Kalak district. it is 1531 square kilometers. 21. Harir block: In Erbil province, Harir district, northern Shaqlawa districts until Soran, 700 kilometers. it is expected to contain about one billion barrels of oil. 22. Pirmam block: In Erbil province. Located in the center of the Pirmam district, and Sary rash area. 180 Squares kilometers. 23. Betwata block: 650 Squares kilometers, in Sulaymaniyah province, it starts from Hajiawa town and reaches Betwata, Balisan, Khoshnawati. 24. Choman: From Erbil province, it was first given to the Turkish Energy company, but then the company withdrew from the block. 25. Handren: In Erbil province. Just like the Choman block was given to the Turkish Energy company, the company later withdrew from this block too. 26. Shakrok block: In Sulaimaniyah province, it starts in the Khedrani district in Dukan until near Shaqlawa. 418 square kilometers. 27. Safin block: In Erbil governorate. Starts from Safina mountain to Hizop, it is 500 square kilometers. 28. Bana Bawe block: In Erbil province, it covers from the Hiran and Nazinin areas to Goma span, in 240 square kilometers has more than a billion barrels of oil. 29. Shorsh Block: In Erbil province, From the north-east of Erbil and the Degala district to Goma span, in 526 square kilometers. 30. Mala Umer Block: In Erbil province, it is south-east of Erbil and 285 square kilometers, is expected to be 500 million barrels of oil. 31. Qushtpa block: In Erbil province, it starts from Qushtapa, south of Erbil, to Dubzu and Prde. it’s 1,180 Square kilometers. 32. Qaladze block: In Sulaymaniyah province, it covers all Kaladze districts, Marqa, Dukan Lake, and Rania. It is about 2,000 kilometers square. 33. Khalakan block: In Sulaymaniyah province, Kalakan town, Haybat Sultan Mountain, and a part of Koya plain until Little Zab River. In 624 square kilometers has (2,450) billion barrels of oil. 34. Taqtaq blocks: is located in Koya district, Taqtaq district, and Aghja district in Chamchamal, containing more than one billion barrels of oil reserve, 951 square kilometers. 35. Piramagrun block: In Sulaimaniyah province, east of Dukan-Sulaymaniyah road and the foothills of Piramagrun mountain till it reaches Dukan town, it is more than 730 square kilometers. 36. Miran block: In Sulaimaniyah province, it starts from Tasluja, west of Dukan-Sulaymaniyah road, including a part of Agjalar, Bazian, and Chamy Razan Resort. It's 1015 square kilometers. Contains two big oil fields; east Miran which is expected to have 1,637 billion barrels of oil, and west Miran, which contains 4,808 billion barrels of oil. 37. Bazian block: In Sulaimaniyah province, Sagarma mountain, west of Bazian, Takia town, and part of Agjalar in Chamchamal district. Its 473 square kilometers, and has 1,178 billion barrels of oil reserve. 38. North Sangawa block: In Garmian. it is located north of Sangaw in Chamchamal district. it contains 6,163 billion barrels of oil in 492 square kilometers. 39. Top xana block, In Garmian. East of Qadir Karam district and Jabari area. Contains 4 billion barrels of oil in 945 square kilometers, despite a large amount of gas. 40. Taza block, In Garmian. Including a part of Nawjul and west of Qadir Karam district. It is expected to be 3 billion in oil and a large amount of gas in 700 square kilometers. 41. Palkana block: In Garmian, Duzkhurmatu, and Jabara district, which is 529 square kilometers, containing 1.58 billion barrels of oil reserve. 42. Penjwen Block: In Sulaymaniyah province. Extends from the center of Penjwen to the Iranian border, and it is worth mentioning that no investment has been made in this block so far. 43. East Arabat block: in Sulaymaniyah province, it covers Siwail, Barzanja, and a part of Sharazur to Nalparez district in Penjwen district and is 700 km square. 44. Arabat block, in Sulaimaniyah city. Extends from Arabat to New-Halabja District. Including Goizha and Azmar mountain. Its 974 square kilometers, containing 1,177 billion barrels of oil. 45. Baranan block: In Sulaymaniyah province, containing south-east of Sulaymaniyah and Baranan mountain until it reaches Darbandikhan lake. It's 722 square kilometers. 46. Qaradagh block: In Sulaymaniyah province, including the Qaradagh area and the east of Sagarma Mountain and west of the Sirwan River to Darbandikhan. it contains 4,896 billion barrels of oil in 846 square kilometers. 47. South Sangawa block: In Garmian, it covers the center of the Sangaw district and its surroundings. It is 846 square kilometers and is expected to have 2 billion barrels of oil and one trillion cubic meters of natural gas. 48. Kordamir block: In Garmian. Located in the south of Sangaw district and the north of the Kalar district until the Sirwan River. contains 5,129 billion barrels of oil reserve in 620 square kilometers. 49. Garmian block: Including the northern district of Kalar, Bawanur, Sarqalla, and Sheikh Tawel. Contains more than 4 billion barrels of oil in 2120 square Kilometers. 50. Shakal block: In the Garmian area, it covers the south of Kalar, Rizgari district, and Kafri district. which contains about 2 billion barrels of oil in 832 square kilometers. 51. Chia Surkh block: In Garmian. Located in the east of the Sirwan River. Extents from Qoratu and Maidan district in Khanaqin until the Iranian border. Contains 5,656 billion barrels of oil in 938 square kilometers. 52. Kor Mor Block, in Garmian: The first Block of Kor Mor; is located in the Qadir Karam district of Chamchamal. Containing more than 2 trillion cubic meters of natural gas in 510 square kilometers. Second Block of Kor Mor; It’s a separate block from the Qadir Karam block. It’s around 300 square kilometers and has a large amount of gas and oil. 53. Chamchamal block: In Garmian area. Extends from small Zab until Basara river to Chamchamal district, and its 1169 square kilometers 54. Qara Hanjir block: In Garmian, it is located between Chamchamal and Kirkuk, which Contains Shwan, Qara Hanjir, and the Takai Jabari district. It’s expected to be 5 to 10 billion barrels of oil in 1,200 square Kilometers. 55. Khurmala block: In Erbil province, it is in the southwest of Erbil. Extends from Kirkuk field, which includes both Khurmala and the Avana of Khurmala. 56. Halabja block: in Sulaymaniyah province, it is located in Halabja district. Contains Khurmal, Sirwan, Biara, Gelejal, Halabja district center, and a part of Sayed Sadiq. Contain an estimated 650 million barrels of oil in about 1000 square kilometers. 57. Jabal Kand block: It covers the northeast of Mosul and is 400 square kilometers. Second: foreign companies in the Kurdistan Region The KRG has started oil contracts with foreign companies from 2002 until 2013, the number of companies in the Kurdistan Region to develop the region's oil sector has reached about 40 companies. Third: the share of foreign companies in the oil and gas blocks of the Kurdistan region As we mentioned earlier, the Kurdistan Region is divided into 57 oil and gas blocks, the Ministry of Natural Resources has signed contracts with about 40 foreign companies in 56 blocks, and the Kurdistan Region's share of all blocks does not exceed 20%-25%. Fourth: The stages of work and production capability in oil blocks The oil blocks are generally divided into three types, two of which are oil blocks (those in production and those in pre-production), the third of which are gas blocks.                                                                       

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KRG Oil Sales and Revenues in 2021

Draw Media In 2021, the Kurdistan Regional Government exported more than 151 million barrels of oil. According to the data collected, the average price of oil was more than 70 dollars in the world's markets. According to that, the Kurdistan Regional Government crude oil exports in 2021 had a value of more than 10 billion 670 million dollars. But after subtracting the costs and considering the KRG oil price, which is 10 dollars cheaper than the world markets, only $3 billion and $870 million in revenue remains.   Brent oil prices in 2021 According to the Economy Country website, the price of Brent oil in the world markets for 2021 was 70.68 US dollars. As of October 2021, the highest was recorded, which was 83.54 dollars, and the lowest oil price of the year was in January 2021, which was 54.77 dollars.   KRG Oil Sales and Revenues in 2021 The Kurdistan Regional Government exported 151,211,000 barrels of oil to the world markets through the Turkish port of Jayhan in 2021. The KRG's oil revenues before subtracting expenses and based on the oil price of the global market: According to data collected, the Kurdistan Regional Government had the highest oil revenues in September 2021, with 13,090,000 barrels of oil exported, this month the oil price was 74.49 dollars.  If The region's oil was not sold at a cheaper price, and without subtracting oil costs, its total value would be 1 billion, 35 million, and 411 thousand dollars. The lowest income was recorded in January 2021, when 12,800,000 barrels were exported, and the total price of oil in that month was 54.77 dollars. According to which oil revenues in that month were 701,056,000 US dollars. Regarding the region's total oil sales and revenues in 2021, the Kurdistan Regional Government (KRG) exported 151,211,000 barrels of oil, when the average oil price per year was 70.68 US dollars. The oil exported by the Kurdistan Regional Government in 2021 without any cost and based on the world market is (10 billion, 670 million, 453 thousand and 860 dollars)   KRG Oil Sales and Revenues (After subtracting the costs and selling at lower prices in the global market) On June 28, 2021, in a joint meeting with the Kurdistan parliament, (Kamal Atrushi, Minister of Natural Resources, announced that 58% of oil revenues would be given to the oil companies and the oil production costs. As he mentioned, 20% are the cost of extracting oil, 14% are Companies’ expenses, and 6% is the transportation, what remains is debt compensation. Even though the region's oil is constantly sold for 10 dollars less than the world’s markets. So, the revenue remains for the KRG in the sale of 151, 211, barrels of oil are (3 billion and 870 million 24,521 US dollars).   the KRG’S oil customers in 2021 In 2021, the region's oil was loaded from the Turkish port of Jayhan by 12 countries. The largest loading by Italian ships, which was 56,081,000 barrels of oil, by %37.1 of the KRG exported oil. The lowest amount of cargo was Polish and Bulgarian ships, with 600,000 barrels which were only 0.4 percent of the KRG exported oil.  

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P.U. K uses gas as a pressure card against K.D.P

A report by :Fazil Hama Raffat and Muhammed Rauf. The Patriotic Union of Kurdistan (PUK) is putting and testing a new pressure upon the Kurdistan Democratic Party (KDP). PUK wants to fight against the “PDK oil” with natural gas and start a strong economic and political relationship with Baghdad. Now, part of the natural gas in PUK areas reaches Afghanistan from Chamchamal every day. More details in this report by “Draw”  Does PUK make a decision?  This month, the Political Bureau of the Patriotic Union of Kurdistan will meet to discuss the latest PUK’s stance on its relations with the KDP. PUK asks for the implementation of administrative and financial decentralization for Sulaymaniyah Province, This project has not yet taken significant steps after a few months. PUK has given the KDP and the Prime Minister, Masrour Barzani ,the last permission to make their decision. If the project doesn’t start soon, it is said that PUK will make its final decision.   PUK’s decision! PUK movements have recently increased in Iraq, Lahur Sheikh Jangi, PUK co-leader, has been in Baghdad several times and meets Mustafa Kazmi, the prime minister and other Iraqi officials. PUK wants to achieve a kind of decentralization to the territories which are under its rule through the Iraqi government. For this, PUK has brought up the gas file. There are three gas-rich areas In Iraq, the PUK-controlled area is one of the richest areas. PUK wants to use this gas to strengthen its economic and political position against the KDP-controlled areas, which is the leading oil producer in the region. According to “Draw” report, there is an idea in the PUK that has not yet been fully outlined. The idea is to build a company called the Sulaimaniyah Gas Company. It will be joint between Sulaimaniyah province and the Iraqi oil ministry and it controls all the oil and gas fields in the PUK-controlled areas (Taq Taq, Kor Mor, Hasira,and Chia Surkh), including the fields in Kirkuk and Khanaqin borders.  "The PUK border gas can fill Iraq's internal needs and make Iraq no longer need to buy gas from Iran to operate power stations," said energy experts at the PUK. The Americans support this step and the United States has received guarantee from U.S. energy officials on this, but such a step may make Iranians worried and angry, especially when Kurdistan’s gas will be an alternative to Iran's gas in Iraq. In addition, 45,000 barrels of oil are produced daily in the PUK-controlled area, and the PUK wants to increase its oil investment level to 72,000 barrels per day through the agreement with Baghdad. PUK wants to do all this on the condition that Baghdad separately provide salaries separately for employees in the Sulaimaniyah border and deal directly with Sulaimaniyah province, not through the Kurdistan Regional Government and the KDP. This could be the reason that Masrour Barzani, the head of the regional government, recently said in front of the Kurdistan Parliament that some cases cannot be touched, as they may lead to the outbreak of civil war. To hand over gas and oil to Iraq, the PUK has resorted to Article 112 of the Iraqi constitution, which says oil and gas are run jointly between the federal government, the region and the provinces. In the PUK-controlled area in Garmian, there are two fields, Kurdamir and Topkhana, which are now escalated into conflict between the KRG and a company in the area of Sulaimaniyah (Petrolium Dynasti), the company is very close to the PUK. The Sulaimaniyah company in London Court has filed a lawsuit against Ashti Hawrami and wants to get a contract to invest in the fields, and in February this year, the Court will make its final decision, and if the Kurdistan Regional Government loses this case to the Dynasty Company, it will cause greater economic and political damage to the energy sector. The two fields, apart from oil, also has natural gas, but it has not been produced yet. Those who work for the PUK, dream of having the Turkish companies to invest gas in Garmian's fields and export it to Turkey after developing the fields and increasing the level of investment. It is unclear whether the Iraqi government will eventually reach such an agreement with the PUK. According to information achieved by “Draw”  from some PUK officials that Mustafa Kazmi, the Prime Minister of Iraq, is in favour of this scheme, but the problem is that it is unclear whether Kazmi will stay as the Prime Minister or not, especially when Iraq is in front of a pre-election. Gas in Kurdistan Region According to the official website of the Ministry of Natural Resources, the Kurdistan Region has 200 trillion cubic feet (5.7 trillion cubic meters) of natural gas reserves, which is 3% of the world's gas reserves. But this is the reserve that has not been proven, as the region's proven natural gas reserves, according to U.S. energy reports are only 25 trillion cubic feet. The Oil Price magazine which is a specific publication about energy, reported that last year only 10 trillion cubic feet were found and worked on, which is now produced in the PUK border in Kor Mor. The natural gas of Kor Mor field in Chamchamal, is produced by the United Arab Emirates — Dana Gas Company. The company now produces 430 million cubic feet, which was 850 tonnes over the past three years, showing that the UAE company has increased its investment level. The Kurdistan Region's natural gas reserves are mostly in the PUK-controlled area. Generally and geographically gas can be found in the following areas: PUK-controlled area reserve:   • Kor Mor Field: 8 trillion and 200 billion cubic feet Chamchamal Field: 4 trillion and 400 billion cubic feet Miran Field: 3 trillion and 46 billion cubic feet KDP-controlled area reserve:   • Bina Bawi field: 7 trillion and 100 billion cubic feet • Khurmala: 2 trillion and 260 billion cubic meters • Palkanafield: one trillion and 600 billion cubic feet • Shekhan Field: 900 billion cubic feet • Pirmam Field: 880 billion cubic feet The Kurdistan Region's gas is transferred to Afghanistan Generally, kurdistan region's natural gas is still used for local needs, meaning it is used for fuel power stations and provide household gas. What is known so far is that the Kurdistan Region's gas is not transferred to another country, but according to the information “Draw” has  gained from several sources at the Bashmakh border, the company that buys the gas of the Kor Mor Field, is illegally exporting 7 to 10 tanks of Liquefied petroleum gas (LPG) daily and the gas is taken to Afghanistan In the past few days, the Washington Institute has published a report on the Kurdistan Region's gas content. The report was about the discussion between the American and Kurdish officials on the future of gas in the region. One of the people who spoke in the meeting was Matthew Zais. He is the principal deputy assistant secretary for the Energy Department's Office of International Affairs. Matthew says: Kurdistan Region can increase the annual level of natural gas investment to 40 billion cubic meters by 2035, compared to the current level of gas investment in the region which is 5 billion cubic meters annually.  Matthew Zais has explained that co-operation in gas and electricity production may lead them to have better relationships.  Kurdistan Region's capacity in the field of energy will reduce the complexity between the region and Baghdad over the annual budget. It will also improve the circumstances in the region by giving guarantees to the worldwide oil companies in the field of oil. Matthew Zais, in another part of his speech, points out that the Kurdistan Region's power grid (electricity) is essentially generated by gas and it is exported to Iraq. Exporting electric power form Kurdistan Region to Iraq is more reasonable than the other suggestion which have been proposed to solve Iraq's electric power problems, including the suggestion to link Iraq's electric power to the power grid of the Gulf Cooperation Council (GCC) or Jordan. The US official expects that, like the region's oil exports to Turkey, the region's gas pipeline to Turkey will eventually be built, but he points out that Iran is constantly trying to restrict energy development in Iraq through its hegemony. Because according to him, Iran does not want Iraq to depend on its energy and electricity abilities. In addition, Iran is using its energy in Iraq for political purposes, so Iraqi officials must find a way to get rid of this challenge. The U.S. Consul General in Erbil, Rob Waller, said in the meeting that under the supervision of the U.S. Ministry of Energy, a recent study has been conducted on the fields in which the Kurdistan Regional Government can reform them in a way that can be rehabilitated and get benefit from them economically. One of the fields which was described in the research is the cooperation between Kurdistan Regional Government and the Iraqi Government in electricity sector which should be renewed with the development of gas sector. Changing the power stations that use diesel to natural gas leads to less cost and more production.  The American council states that the cooperation between KDP and PUK is an important priority in the public policy of the United States to develop gas sector in the region. He said in spite of having the tensions in the region, recent protests have prompted both parties to admit that their cooperation will revitalize the region, Rob Waller said. Bahroz Aziz is a senior advisor to the Kurdistan Regional Government's Minister of Natural resources, attended the Washington Institute meeting and has mentioned the obstacles in front of the Kurdistan Region's gas field to develop. Aziz also said that developing Kurdistan Region's gas sector will result in the end of using generators to provide household electricity. The generators use diesel which pollute the environment and would be harmful for public health, and the development of this sector will provide job opportunities for the residents of the region. The presence of large amounts of Sulfur in the Kurdistan Region's natural gas is one of the obstacles to the development of the Kurdistan Region's gas field, said Bahroz Aziz. He also said having a lot of sulfur in the gas has paralyzed investment in the region's gas, this is alongside some other reasons such as the danger of ISIS and the spread of The Coruna virus. despite this situation, the senior advisor to the Kurdistan Regional Government's minister of natural resources is optimistic about the future of gas in the region, saying: "The region did not have the expertise and money to develop its oil sector at first, but it was able to attract international companies and achieved both. The Ministry of Natural Resources needed experience and leadership to implement the same tools in the development of gas resources.  

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