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Iraqi Kurdistan region's oil output at risk after Turkey halts pipeline exports

(Reuters) Oil in the Kurdistan Region is at risk after a halt in northern exports has forced firms operating there to divert crude to storage, where capacity is limited.  Iraq was forced to halt around 450,000 barrels per day (bpd) of crude exports from the KRI on Saturday through an export pipeline that runs from its northern Kirkuk oil fields to the Turkish port of Ceyhan. Turkey halted the pumping of Iraqi crude from the pipeline after Iraq won an arbitration case in which it said Turkey had violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil to Ceyhan without Baghdad’s consent. Oil firms operating in the region have been left in limbo as they await the outcome of ongoing discussions between Ankara, Baghdad, and the KRG to find a way to resume exports. Gulf Keystone Petroleum, which operates the 55,000 bpd Shaikan field in the KRI, said in a statement on Monday that its “facilities have storage capacity that allow continued production at a curtailed rate over the coming days, after which the company will suspend production”. DNO and Genel Energy, which also operate in the region, said they are currently storing oil in tanks, which can accommodate several days of production. Shamaran Petroleum, another operator, said in a statement: “The company will remain in close contact with the other oil producers in the Kurdistan Region and with relevant government officials, and will continue to monitor this situation closely.”

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Iraq demands KRG to hand over oil to SOMO

In the first meeting after the decision of the Paris Court, the Iraqi Oil Minister rejected the proposals of the Kurdistan Regional Government delegation, now the federal government is not dealing with the budget agreement, demanding the handover of oil to SOMO. The Kurdistan Regional Government (KRG) delegation will return to Baghdad in the next two days.  A delegation from the Kurdistan Regional Government (KRG) arrived in Baghdad on Sunday to discuss upcoming steps and mechanisms of exporting the Region’s oil with the Iraqi oil ministry, following a decision from an arbitration court against Erbil’s independent oil exports. During the meeting the Iraqi Oil Ministry demands KRG to hand over oil to SOMO and they made it clear that "there must be compliance with the laws and the constitution, and the management of the oil topic must be in the hands of the federal government.”  

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Iraq wins arbitration case against Turkey over Kurdish oil exports, officials say

Iraq was officially informed by Turkey that an international arbitration court ruled in its favor in the long-running case against Ankara over Kurdish crude exports, in yet another blow to Iraq’s semi-autonomous Kurdish region. Turkey also said it will not allow shipments carrying crude from the Iraqi Kurdistan region to leave its coastal port of Ceyhan without the consent of the federal government in Baghdad, the source added. The case at the International Chamber of Commerce’s International Court of Arbitration in Paris has been running for almost nine years and centers on Iraq’s claim that Turkey has violated a 1973 pipeline transit agreement by allowing crude exports from Iraq’s Kurdish region without Baghdad’s consent. The dispute dates back to 2014 when the Kurdistan Regional Government (KRG), independent of Baghdad, connected its oilfields to the Turkish border crossing at Fishkhabor, tapping into the existing Iraq-Turkey Pipeline. The pipeline previously delivered crude from Iraq’s northern Kirkuk oilfield to Turkey’s port of Ceyhan. Iraq’s Kurdistan depends on crude oil exports through Turkey, and the Paris court ruling will further tighten the noose on Erbil, weakening its hand in negotiations with Baghdad over an authoritative legal framework for the country’s oil sector. The government of prime minister Mohammed Shia al-Sudani and the KRG have held several rounds of talks to try and reach a solution. Al-Sudani’s government, however, is now armed with the Paris court ruling in addition to Iraq’s federal court ruling from February 2022 that declared Kurdistan Regional Government’s oil and gas legislation “unconstitutional”. The federal court also invalidated the KRG’s contracts with foreign oil firms. Baghdad, ever since, has been trying to bring Kurdistan’s energy resources under federal control. The country’s oil ministry last year said US companies are in the process of liquidating and exiting tenders and contracts in Kurdistan to comply with the federal supreme court decision. Additionally, major trading firm Trafigura at the end of January severed ties with the KRG, a step that will only exacerbate the Kurdistan region’s challenges and complicate its ability to market its crude.  

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February oil sales rise on higher northern exports

Increase of 94,000 bpd mainly due to higher volumes of both KRG and federal exports via Turkey. Iraq’s nationwide crude oil exports rose to 3.738 million barrels per day (bpd) in February after slumping in January to 3.644 million bpd, according to preliminary data from the Oil Ministry and industry officials. The increase came mostly from Iraq's northern exports, despite earthquakes in early February that temporarily took exports offline. According to Oil Ministry data, the semi-autonomous Kurdistan Regional Government (KRG) boosted oil sales to to 443,000 bpd — an increase of 65,000 bpd compared to the prior month — and the federal government's exports via the KRG-controlled pipeline system to Turkey averaged 101,000 bpd, an increase of 21,000 bpd.

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'Iraq is not an Islamic country': Minorities protest Baghdad's alcohol ban as unconstitutional

The Iraqi government's renewed effort to prohibit alcohol is not only worrisome for Christian and Yazidi minorities, but also raises constitutionality questions. Draw Media, Al-Monitor Iraq officially banned the import, production and sale of alcoholic beverages of all kinds on March 4, in a repeat of a ban that was passed in 2016, but its implementation was paused  due to strong objections from secularists and minorities at the time. The new law imposes fines for violations of between 10 million and 25 million dinars ($7,700-$19,000). Last month, the law instituting the ban was published in Iraq's official gazette, paving the way for implementation. The coalition of new Iraqi Prime Minister Mohammed Shia al-Sudani, who took office last October, is dominated by Shiite Islamist parties and militias in the so-called Coordination Framework who support the ban.  Now, with the law going into effect, liquor stores are still open in Baghdad, Erbil and other parts of the country. But some Iraqis, especially those from the Yazidi and Christian communities, are raising concerns.   'Not an Islamic country' Iraq has great religious diversity. The majority of the population is Shiite and Sunni Muslims, but there are also sizable communities of Christians, Yazidis, Zorastrians, Mandaeans and others. Some analysts believe the law is a step toward turning Iraq into an Islamic country. "This is ethnic discrimination," Diya Butros, an activist in the predominantly Chaldean Catholic town of Ankawa, told Al-Monitor. "It's a violation of the rights of non-Muslim religions that do not forbid alcohol." Ali Saheb, an Iraqi political analyst, told Independent Arabia on March 6 that Iraq is not an Islamic country, and "Some religions allow drinking alcohol, and the government cannot impose a certain opinion or ideology on others." Unlike Islam, the Yazidi and Christian faiths do not forbid alcohol consumption. Some even use it in their religious rituals.  Others argue the law violates the Iraqi constitution, which guarantees personal, religious and cultural freedom. Mirza Dinnayi is a Yazidi activist and chairman of Luftbrucke Irak, a non-governmental organization that helps victims of conflict in Iraq. He told Al-Monitor, "The law is contrary to the constitution because Iraq is a multi-ethnic, -religious and -cultural country, and drinking alcohol is not prohibited for many."  Dinnayi also argued that if alcohol drinkers turn to other alternatives, the ban could provide an opportunity for the spread of drug use “The majority of Muslim countries do not ban alcohol, but rather regulate it. Why doesn’t the Iraqi government do something similar, instead of banning it totally?”  The law is especially troublesome for Yazidis and Christians, who manage the overwhelming majority of alcohol shops in the country. Many Christians and Yazidis have been attacked in recent years for working in this sector, and some fear this law could lead to an increase in violence against them. It is therefore unsurprising that Iraqi civil society groups have come out strongly against the law. More than 1,000 prominent Iraqi researchers, academics, journalists and activists drafted an open letter to the secretary general of the United Nations earlier this month criticizing the ban.  In addition to the objections on constitutional grounds, the autonomous Kurdistan Regional Government (KRG) in northern Iraq may reject the law. The Kurdistan Region is home to much of Iraq's Christian and foreign population, particularly in Ankawa and the nearby regional capital Erbil. A KRG customs official told the Kurdish news outlet Rudaw earlier this month that they reserve the right to make their own decision on the ban.  Religious authorities' views The law is religiously motivated by the Islamic prohibition on alcohol, but Shiite religious authorities did not play a role in it. The highest religious authority for Iraq's Shiite majority, in the holy city of Najaf, is headed by Ayatollah Ali Sistani. Throughout the 21st century, Sistani has vocally supported a civil state and rejected the imposition of religion.  Sistani has not commented on the law, but a prominent cleric told Al-Monitor that the religious authority in Najaf is against this legislation or any similar action. “The religious authority in Najaf has been always calling for a ‘civil state’ in Iraq, rejecting any kind of imposition of religiosity in the state institution,” he said, speaking on condition of anonymity.    The source referred to stances taken by Sistani in the past, such as when he rejected the Personal Status Law in 2013 due to its imposition of Sharia, as well as the leader's rejection of displaying religious symbols in state offices.  When asked about Sistani's current silence, the cleric said, “Sistani had made it very clear for a long time that he is against such a law, and there is no need to repeat the same thing.” With corruption and militia control rampant in Iraq, however, many worry that the ban will drive Iraqis to the black market to purchase alcohol. In this context, the ban may increase drug smuggling into the country, as well as encourage other forms of substance abuse.   

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Report Reveals Only One Million Iraqi Women Are Employed

According to this United Nations report, women’s participation rates in the global labour market between the ages of 25 and 54 increased in the 1990s to between 60 and 85 percent. Unfortunately, this has not been the case for Iraqi women, whereby women’s entry into the labour market is a huge challenge in Iraq.  Increasing women’s participation in the labour force would improve the productive capacity of the country and support economic growth. In turn, this could help give women the ability to express their opinion in society and play a leading role in the family. To date, there is little research that explores the reason for the decline in women’s participation in the labour force in Iraq. Despite the importance of the subject, research that has been conducted is on a limited scale. The latest report in 2021 was conducted by the International Labor Organization, in cooperation with the Ministry of Planning, and the Central Statistical Organization. The report shockingly revealed that “there are 13 million women within the working age, of whom only one million are engaged in work.” Iraqi Women’s Participation in the Labour Force in Numbers Those aged 15 and older, who are of working age, account for 6.63% of the total population of Iraq. Men constitute 50.3% and women are 49.7% – almost half of the country’s population. Unfortunately, this percentage is not reflected in women’s participation in the labour force, nor in equal access to resources and opportunities. According to the 2021 Labor Force Survey in Iraq, the percentage of the labour force in Iraq reached 39.5% of the total population of working age. Men accounted for 86.6% while women were only 13.4%. The labour force participation rate for women was 10.6%, compared to 68% for males. These rates are among the lowest rates of female labour participation in the world. This significant decrease in women’s labour force participation is due to several reasons, including Iraq’s instability, a lack of culturally sensitive spaces, financial constraints, and a competitive job market with few jobs available. In addition to the unemployment rate, which reached 16.5% in Iraq, the above graphic shows that there is one unemployed person for every 5 people. On the other hand, the female unemployment rate reached 28%, which is double the male unemployment rate of 14%. According to the results of the Ministry of Planning / Central Statistical Organization, women tend to be more concentrated in the fields of services (73%) and agriculture (14%), compared to 62% and 7%, respectively, for men. The results also showed that the following sectors are male dominated: Construction and related professions Protection services Drivers of cars, trucks and motorcyclists Sales representatives While the professions dominated by women are: Primary education and kindergarten High school Garment industry and related professions As for the preferences of work sectors, 71% of women prefer to work in the government sector, while 29% of them prefer to work in the private sector. While for men, 34% of them prefer to work in the government sector and 65% of them prefer to work in the private sector. Steps to Expand the Scope of Women’s Work The World Economic Forum’s Global Gender Gap Report indicated that Iraq ranked 154 out of 156 countries in the Global Gender Gap Index for the year 2021. These numbers show the seriousness and importance of the issue. Unless real and decisive steps are taken to support women, Iraqi women will continue to fall behind. Institutions must work together to reduce the gap by developing female talent for the industries of the future. Additionally, the government must develop legislation for early marriage and childbearing, as is the case in the Kingdom of Saudi Arabia, which has placed women as a priority in the labour market, in both its private and public sectors, and in all aspects of life. Removing these disparities would reduce the unemployment rate, raise the level of women’s participation, enhance competition among jobseekers, revitalise the efforts of many vital sectors and ultimately grow the country’s GDP. In The End Women have an important and active role in society, and they represent half of it! Despite the limited opportunities and obstacles faced, many Iraqi women have proven that they can be successful and contributing members of society. But the question is, where does the problem lie in these statistics? The percentage of women’s participation in the labour market in developing countries, including Iraq, is less than the global average, noting that the percentage of women’s participation in developed countries is more than 67%. What Iraqi women need today is not limited to increasing available job opportunities, but we must also realise the many complexities and challenges that women face in the labour market. And as the data has highlighted, we need to facilitate women’s participation in the workforce by addressing social norms, establishing sound policies, and real commitment to implement these frameworks across the country. Today, we live in a rapidly evolving digital world where the digital economy can provide more opportunities for women to be involved in the workforce, and create new job opportunities that women can easily adapt to. This work has been done by the support of MiCT organisation and Germany cooperation GIZ Iraq. 

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Iraq issues arrest warrants for four former officials over heist of the century

Iraq’s judiciary issued arrest warrants on Saturday for four former officials who are accused of facilitating the theft of $2.5 billion in public funds in one of the country’s biggest-ever corruption scandals. An investigating judge in Baghdad has “issued arrest warrants for four senior officials of the former government”, the government’s anti-corruption agency said in a statement. The four men, who include a former finance minister and staff members of former prime minister Mustafa al-Kadhemi, are all living outside the country, according to an official at the agency who spoke on condition of anonymity. The warrants do not name any of the officials, but according to the official, they are former finance minister Ali Allawi, the director of cabinet Raed Jouhi, personal secretary Ahmed Najati, and adviser Mushrik Abbas. Allawi, a respected politician and academic, resigned in August last year. When the scandal broke a few months later, he denied all responsibility. Al-Kadhemi defended his record on fighting corruption, saying his government had discovered the case, launched an investigation and taken legal action. The case, which has been dubbed “the heist of the century”, sparked outrage in oil-rich Iraq, which critics say is plagued by corruption. At least $2.5 billion was stolen between September 2021 and August 2022 through 247 cheques that were cashed by five companies. The money was then withdrawn in cash from the accounts of these companies, most of whose owners are on the run. The four men are accused of “facilitating the embezzlement of sums belonging to the tax authorities,” the statement said, adding that they would also be subject to an asset freeze. The country’s current Prime Minister Mohammed Shia al-Sudani has vowed to crack down on corruption since his appointment in late October.

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Iraq: Disintegration of Coordination Framework, or New Early Elections

Asharq Al-Awsat, Draw Media Sources close to influential parties in Iraq point that the political equation that brought about the government of Mohammad Shia al-Sudani will undergo sharp changes.   The sources cited various circumstances, the most important of which is the highly probable return of the leader of As-Sadr movement, Muqtada al-Sadr, to the political arena, and the sharp divisions among the poles of the Coordination Framework.   Shiite parties are trying to anticipate “unexpected big turns” by drawing a new map that may include setting a date for early elections and reaching an understanding with al-Sadr on the next stage.   According to informed sources, the relationship between Sudani and the Framework has become “turbulent and lacking coordination.”   “Al-Sudani and the Framework are both working in opposite directions, and each side looks at the other in a way of domination, not cooperation,” the sources said.   Local media claimed that Al-Sudani would resort to a cabinet reshuffle that might include partisan figures with whom Washington has banned dealings, due to their association with the armed factions. However, Iraqi politicians, who spoke to Asharq Al-Awsat, said that the premier’s intention was linked to the conflict within the Coordination Framework.   In a video broadcast on state television, Sudani appeared to be criticizing the performance of some ministers, noting that others had received threats from their parties.   The Iraqi prime minister had never made such frank statements publicly, which were seen by local public opinion as directed at the Framework coalition.   “A minister’s relationship with the political forces ends after he is nominated and gains the confidence of parliament [...]. Whoever feels pressured or threatened, I am here,” he said.   Questions arise on the status of the Framework, and whether it is able to remain united in supporting the government that it formed.   A leader in the Framework said: “Al-Sadr is ready to move, and everything he does raises the anxiety of the leaders of the Shiite parties, while they got involved in major disputes over the sphere of influence within the government.”   Meanwhile, US Ambassador to Baghdad Alina Romanowski, held several meetings with anti-Washington Shiite leaders, such as the leader of Asa'ib Ahl al-Haq and the deputy speaker of parliament, Mohsen al-Mandalawi.   Although the official statements issued at the end of those meetings were brief in general, the atmosphere of “the coordination framework and the sharp polarization between its parties indicate an accelerated movement that paves the way for a new phase,” as stated by a Shiite leader who assumed a high position in the two previous governments.

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Shiite rivalries could break Iraq’s deceptive calm in 2023

 Brookings, Draw Media Since the appointment of Prime Minister Mohammed Shia al-Sudani in October 2022, Iraq’s Popular Mobilization Forces (PMF), an umbrella organization of mostly Shiite militia groups that is accorded a formal status as an auxiliary branch of the Iraqi security forces, is making a comeback. Despite many challenges and serious setbacks since 2018, the PMF has shown a marked ability to bounce back from weakened leadership and internal fractures, a significant electoral defeat, and the loss of political capital with large segments of the Iraqi public. It has survived pressures resulting from the January 2020 U.S. assassinations of its former commander, Abu Mahdi al-Muhandis, and his Iranian sponsor, Qassem Soleimani, the former head of the Islamic Revolutionary Guard Corps (IRGC) Quds Force, and from measures undertaken by the former prime minister, Mustafa al-Kadhimi. Not only has the PMF proved resilient, but it also retains political and military advantages that are likely to make it a force to be reckoned with for decades to come. et the PMF also faces challenges, and its malign activities, which include human rights abuses, may yet be curtailed, especially if the West and its regional allies can work with moderate actors in Iraq or those that fear the organization’s monopolization of power. The most significant of the PMF’s difficulties comes in the form of Iraq’s intra-Shiite political rivalries. Both the PMF’s power and vulnerabilities were manifest last August when Iraq was pushed to the brink of civil war following political tensions and violent confrontations between the PMF and its political allies, known as the Shiite Coordination Framework, and their rival, Muqtada al-Sadr. Sadr heads Iraq’s most powerful sociopolitical movement, the Sadrist movement, and one of the country’s most powerful militia groups, Saraya al-Salam. Although his withdrawal from politics is likely temporary, Sadr will remain a significant challenge for the PMF in future religious leadership succession contests, economic turf battles, and day-to-day politicking. This intra-Shiite contestation as well as external pressures will not only threaten the PMF but can also reignite more violence, even another civil war.   THE RISE AND WEAKENING OF THE PMF   Since the 2003 U.S. invasion of Iraq, Shiite militia groups have enjoyed dramatic success in expanding their influence, augmenting their combat capabilities, and transitioning from rag-tag militia groups to powerful political players with considerable control over the Iraqi state. Some, like the Badr Brigade, established in the 1980s during the Iran-Iraq War, were already firmly entrenched political actors with a loyal support base. Others, like Asaib Ahl al-Haq and Kataib Hezbollah, designated as terrorist groups by the United States, drew on their battlefield successes against the Islamic State (ISIS) between 2014 and 2018 to evolve into major political players. Iraq’s Shiite militia network is underpinned by an array of informal sociopolitical, cultural, and security structures. Some emerged in the post-invasion tumult, others developed during the years of Baathist rule. The 1980-88 Iran-Iraq War forged friendships, kinships, and revolutionary camaraderie among the main factions and their leaders. The network is also undergirded by Iran. As head of the PMF and Kataib Hezbollah and Soleimani’s right-hand man, Muhandis had played a critical role in enhancing Iran’s influence over the Iraqi political system. As a result, Iran had been able to outsource some of its local security requirements to Muhandis in recent years, just as it had done with Badr Brigade leader Hadi al-Amiri during the 1990s and after the U.S. invasion in 2003. In Iraq’s 2018 parliamentary elections, the political parties linked to the PMF came in second. That impressive outcome solidified the PMF’s status as a formidable political actor. But the January 2020 assassinations of Muhandis and Soleimani widened internal fractures. The PMF’s new leadership has lacked their authority and strategic acumen. Instead, key PMF groups such as the Badr Brigade and Asaib Ahl al-Haq have pivoted toward Nouri al-Maliki of the Islamic Dawa Party, whose tenure as prime minister (2006-14) hastened the PMF’s ascension. Moreover, in March 2020, several PMF factions aligned with Iraq’s Ayatollah Ali al-Sistani withdrew from the PMF and placed themselves directly under the authority of the Iraqi Armed Forces. These militia groups had previously resisted Iran’s influence but operated within the ambit of the PMF during the war against ISIS. This split significantly weakened the PMF, which had drawn significant religious legitimacy and political influence under the cover of Iraqi nationalism and patriotism from al-Sistani’s blessing in 2014. However, the PMF’s legitimacy had already been undermined by its actions in 2018, when its Iran-backed factions systematically repressed civilians during the Tishreen protests, which challenged Iraq’s ruling elite and its misgovernance as well as Iran’s influence in the country. This cumulative weakening, alongside Sadr’s electoral acumen and superiority, was displayed in Iraq’s 2021 parliamentary elections: the PMF won a meager 17 seats, down from the 47 it won in 2018. The organization’s defeat contrasted with the success of its foremost rivals, the Sadrists, who won 73 seats (an increase from the 54 they won in 2018).   THE PMF’S COMEBACK   In the subsequent months, Sadr attempted to form a coalition majority in the Iraqi parliament at the expense of the PMF and the Shiite Coordination Framework, whose poor electoral performance presented him with an opportunity to exclude them from the government. However, Sadr’s decision departed from the power-sharing consensus that had underscored relations between Iraq’s most powerful parties and its fiercest rivals. This intensified the intra-Shiite rivalries, which finally exploded in the August 2022 violence that claimed casualties on both sides. Consequently, Sadr decided to give up his hopes of forming a majority and (perhaps temporarily) withdrew from Iraq’s political fray. The miscalculation paved the way for Mohamed Shia al-Sudani, a Maliki proxy and Dawa stalwart, to be appointed prime minister in October. This political outcome has been a boon for the PMF. The organization has further entrenched itself in the Iraqi state, widening its economic capabilities, diversifying its revenue streams, and expanding its patronage network. In November 2022, Sudani approved the creation of a PMF trading company called Al-Muhandis (after the slain PMF commander of the same name), a state-sanctioned body with an operating budget of at least $67 million.   But challenges also lie ahead for the PMF.   Despite his withdrawal from Iraqi politics, Sadr is not going anywhere. As the heir to the political and religious leadership of his father, Mohammed Mohammed Sadeq al-Sadr, who was controversially appointed as a marja’ (source of emulation) in the 1990s, Sadr the younger still sees himself as the rightful leader of Iraq’s political and religious Shiite community. Sadr’s limited religious credentials do not give him enough religious credibility to succeed Sistani, but his following of 2 million to 3 million Iraqi Shiites gives him a sufficient sociopolitical basis on which to contest the post-Sistani political order in Iraq. This coming religious succession struggle will escalate the rivalries between Sadr and the PMF and its political allies such as the Islamic Dawa Party. These political intra-Shiite contests could turn increasingly violent. The August 2022 violence may unfortunately preview what’s ahead for Iraq. The clashes caused at least 23 deaths and many more injuries as the country teetered on the edge of another civil war. Crucial mediation by the Iraqi clerical establishment in Najaf and by Hassan Nasrallah, the Lebanese Shiite cleric who heads Hezbollah, pulled Iraq back from the abyss. But tensions between Asaib Ahl al-Haq and Sadr remain very high, particularly in oil-rich Basra. The city’s many resources provide a vital economic base for both organizations, and it constitutes a vital strategic hub for their illicit commercial operations. Clashes over its resources may become deadly again. Apart from intra-Shiite political rivalries, Iraq is also beset by wider regional enmities that could violently play out on its territory. They include tensions between Saudi Arabia and Iran as the latter grapples with its ongoing uprising. Since the unrest unfolded, Iran has launched attacks on alleged Iranian opposition group bases in Iraqi Kurdistan and has struck targets in the north and south as part of its shadow war with Israel and the United States. If tensions escalate further, Iraq could be caught in a regional conflagration, which Sadr and the PMF may exploit. Domestically, Iraqis’ socioeconomic grievances remain vast, and Sudani will struggle to address them. Any revived Tishreen protests could again be weaponized by Sadr and the PMF and retrigger clashes between them. Thus, the calm since Sudani’s appointment is likely deceptive. If Iraq is again gripped by violence, the PMF is likely to come out on top. Moreover, the fact that the PMF is so deeply embedded within the Iraqi state makes it difficult to manage and leaves Western conventional state-building practices ill-suited to addressing its multifaceted challenge. The West and its allies must instead bank on empowering Iraqi political actors who want to address the PMF’s human rights abuses and its efforts to monopolize power with the guidance and support of Iran. To collectively push back against the PMF, they must first address their own internal divisions over Iraq’s future and reconcile their differences over how to share power and manage the country’s wealth.

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Iraqi oil exports, prices and revenues between (2021 – 2022)

Draw Media • Iraq sold 1 billion 102 million 188 thousand 981 barrels of oil in 2021, an average of 3 million 19 thousand 520 barrels per day. However, in 2022, sales will increase by about 10 percent to 1 billion 208 million 531 thousand 119 barrels per day, an average of 3 million 311 thousand 416 barrels per day. • In 2021, a barrel of Iraqi oil sold for $6. However, in 2022, Iraqi oil sold for about 40 percent more and the average price of oil was $95.53 per barrel. • Iraq's total oil revenue in 2021 was (75 billion 650 million 606 thousand dollars). However, in the following year, oil revenues increased by 52.6 percent to $115 billion, 466 million 245 thousand. • Of the total oil sold by SOMO in 2021, 36 million 774 thousand 286 barrels, or 3.45%, were exported from Kirkuk oil fields. However, in 2022, Kirkuk's share of total oil exports dropped to 2.23% of Iraq's total oil exports which was only 27 million 43 thousand 971 barrels.   Iraqi oil sales between 2021 and 2022 Iraq earned a huge revenue from oil exports in 2022, benefiting from rising oil prices due to the war between Russia and Ukraine, as well as increasing the amount of crude oil exported to foreign markets. Iraq has succeeded in increasing its oil exports to 1 billion 208 million 531 thousand 119 billion barrels in 2022, which is 3 million 311 thousand 416 million barrels per day. while in (2021) Iraq sold 1 billion 102 million 188 thousand 981 barrels of oil at an average of 3 million 19 thousand 520 barrels per day, an increase of about 10 percent in 2022.      

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Iraq to increase oil and gas production with multiple exploration deals

Iraq signed several deals with foreign companies aimed at boosting the OPEC member’s oil and natural gas production in the coming years. The government expects oil output to increase by 250,000 bpd once the blocks covered by the agreements start producing, Oil Minister Hayyan Abdul Ghani said on local television on Tuesday. He didn’t give a timeframe. Iraq is OPEC’s biggest producer after Saudi Arabia, pumping about 4.5 MMbpd. Still, some foreign companies have soured on the country due to political instability and stringent bureaucracy. Crescent Petroleum is one of the firms involved in Tuesday’s signings. Based in Sharjah in the United Arab Emirates, it is set to develop three oil and gas blocks. The first two of those — both in Diyala province in the east — will be able to extract between 150 million and 250 million cubic feet a day of gas, according to Crescent’s executive director for exploration and production, Abdulla Al-Qadi. “The initial plan will start with a fast-track gas output from Khashim Al Ahmr-Injana” in Diyala, he said in an interview in Baghdad. “We expect within 18 months from contract signing to start first gas production.” Crescent will also develop Gilabat-Qumar in Diyala and the Khider Al-Mai block in Basra province in the south. Each agreement spans 20 years. The company already operates in Kurdistan in the north of Iraq, pumping about 500 million cubic feet per day of gas. It hopes to boost output by 50% by next year, Al-Qadi said. Iraq also signed deals with two Chinese companies, including Geo-Jade Petroleum Corp., the minister said.  

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Iraq PM risks new crisis as tensions with Kurds resurface

By Amina Ismail and Ahmed Rasheed Summary KDP threatens to stop supporting Sudani's government Sudani's agenda could be hampered if KDP withdraws support Baghdad-Erbil talks continue, Sudani trying to find solution After more than a year of political deadlock, Iraqi Prime Minister Mohammed Shia al-Sudani could face a debilitating new crisis with Kurdish leaders that risks undermining his efforts to set policy and compile a badly needed state budget. Sudani, whose government was approved in October, has vowed to reform the economy, fight corruption, improve deteriorating public services and combat poverty and unemployment -- tall orders in a country that has been craving stability and cash since the 2003 U.S.-led invasion. Without support from the powerful Kurdish Democratic Party (KDP) which helped him come to power and holds 31 seats in parliament, he would find it difficult to advance his agenda. The central government's strained relations with the Kurds -- often part of Iraq's political landscape since Saddam Hussein was toppled in the 2003 invasion -- could hamper Sudani's efforts after a long period of paralysis. The KDP may withdraw its support for the federal government if he fails to fulfil his promises to fix long-standing disputes between Erbil and Baghdad, according to two Iraqi lawmakers and a Kurdish government official. That could leave him struggling to pass bills in parliament and enact reforms. Before Sudani formed his government he struck a deal with the KDP, which dominates the administration in Erbil, capital of the semi-autonomous region in northern Iraq. The agreement included ending a long-running dispute over budget transfers to Erbil and oil revenue sharing between the national government and Kurdistan, according to three Kurdish officials. Under the Iraqi constitution, the Kurdish region is entitled to a portion of the national budget. But the arrangement collapsed in 2014 when the Kurds began selling crude independently from Kurdistan. In 2017, Iraqi forces retook disputed territories including the oil city of Kirkuk. Baghdad resumed some budget payments, but they have been sporadic. The KDP made it clear that they would stop supporting Sudani if he didn't keep his promises, according to one of the Kurdish officials. Sudani came to power after more than a year of political deadlock as infighting among Shi'ite and Kurdish groups prevented the formation of a government, hampering efforts to rebuild a country on its knees after decades of conflict. The paralysis left Iraq without a budget for 2022 holding up spending on much-needed infrastructure projects and economic reform and depriving Kurdish authorities of revenues needed to pay international oil firms and the salaries of thousands of local workers. A KDP official said after the government was formed last year that the Kurds wanted to end the deadlock, which was why they supported Sudani's government, but that if the other side failed to deliver they would withdraw that support. "There are some political forces that are trying to break our will and we reject this and won't allow it," said Shawan Taha, a KDP spokesman. In January, the Iraqi Federal Supreme Court ruled that orders from the Baghdad government to transfer money to the Kurdistan Regional Government (KRG) to pay salaries in 2021 and 2022 were illegal because they broke Iraq's budget law. Massoud Barzani, president of the ruling KDP, said the court has taken a "hostile position" against the region and "seems to have replaced the revolutionary court in the previous regime", referring to an infamous court of the Baathist regime known for issuing death sentences against regime opponents. A spokesman for the KRG, Jotiar Adil, said the "politically motivated" court was trying to spoil the deal between Erbil and Baghdad. A KRG delegation was in Baghdad on Monday to discuss the budget as well as hydrocarbon laws. A source with knowledge of the meetings said Erbil and Baghdad remained far apart on the hydrocarbon law. According to an adviser, who spoke on condition of anonymity, Sudani has tasked the cabinet's legal team with finding a solution to allow salary transfers without breaching the court verdict. Other political actors in Sudani’s camp in Baghdad see escalation with the Kurds by using such court rulings as a necessary political tactic to put him in a stronger negotiating position, according to lawmakers. But the KRG's Adil was still hopeful that a compromise could be agreed on. He said the KRG delegation would be in Baghdad again on Sunday, and he denied that the KDP was threatening to withdraw its support for the government in Baghdad. "There are obstacles in reaching an agreement with Baghdad. But there is a serious and real intention to reach an agreement from the KRG, and we felt the seriousness as well from Sudani to solve those obstacles," he said.  

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Iraq signs 5th round contracts, previews potential 6th round

Iraq has finally inked deals first awarded in 2018, raising hopes for the Oil Ministry's efforts to prepare a sixth contract licensing round. Iraq's Oil Ministry signed six oil and gas contracts on Tuesday that had been awarded in its fifth licensing round in 2018, while also teasing another round of gas-focused deals that could soon be offered. "We congratulate you on the final signing of the contracts for the long-awaited fifth round," said Iraqi Prime Minister Mohammed Shia al-Sudani at the Oil Ministry's signing ceremony, according a written excerpt of his remarks published by his office. Sudani noted that the deals had been "stalled for five years, costing Iraq millions of dollars and causing harmful environmental damage." Multiple senior Oil Ministry officials and one industry official said the contracts are final and binding. Their signings represent a major step forward for Iraq's plans to boost domestic energy production, diversify revenue streams, and reduce dependence on costly and unreliable gas imports from Iran.

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Iraq to enter global gas market

The Iraqi Prime Minister, Mohammed Shia Al-Sudani, confirmed on Tuesday that Iraq is seeking to reach self-sufficiency in gas within three years, the state news agency (INA) reported. Al-Sudani, during a ceremony held to sign to final contracts of licenses related to oilfields, said that the reform in the oil sector is represented in the optimal investment of oil wealth, and Iraq’s entry into the global gas market is an option that we planned for and will be implemented, INA mentioned. Al-Sudani noted that it is not possible to continue burning the associated gas that wastes wealth and affects the environment. “One of the main reasons behind the electricity crisis is the lack of fuel,” Al-Sudani stated. “We spend 10 trillion dinars (nearly 6.85 billion USD) annually on gas imports. Iraq imports even oil derivatives, although it is an oil producer and exporter,” Al-Sudani clarified. “We will work to sign contracts for the establishment of refineries, and we will reach self-sufficiency in gas within three years to cover all our needs,” Al-Sudani illustrated. “We emphasize the need to benefit from the associated gas in all our foreign visits and meetings,” Al-Sudani said. “We are looking forward to seeing the Ministry of Oil benefiting from Iraq’s resources of natural gas and associated gas,” Al-Sudani added. The Iraqi Prime Minister also mentioned that Iraq is now in a transitional phase to shift from total dependence on oil revenues to diversify its sources of income.

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Talks in Washington to benefit from associated gas in Iraq

The advisor to the Prime Minister for Energy Affairs, Imad Al-Alaq, announced that meetings are held in Washington to benefit from the associated gas in Iraq, the Iraqi News Agency (INA) reported. Al-Alaq said that the meetings in Washington focused on enabling Iraq benefit from the associated gas and produce electric energy, INA mentioned. Al-Alaq added that the meetings also discussed accelerating the regional electrical interconnection with Jordan, Saudi Arabia and the Gulf states, according to INA. Al-Alaq explained that the United States is serious about building long-term strategic relations to enable Iraq to take advantage of its natural resources. “Iraq burns more than 18 billion cubic meters of associated gas annually. The associated gas burned every year in Iraq is worth 6.5 billion USD,” Al-Alaq stated.   Al-Alaq also mentioned that burning the associated gas causes environmental pollution, contributes to the spread of diseases, and increases global warming. Al-Alaq added that Washington is serious about enabling Iraq to develop effective medium and long-term strategic solutions to invest these resources and support the electrical network.  

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