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News / Iraq

Iraq generated about 10 billion US dollars in revenues from its oil sales in August

Draw Media Iraq generated about 10 billion US dollars in revenues from its oil sales in August, according to the Iraqi Oil Ministry. • Oil revenues in August reached (9 billion 784 million) dollars, or (14 trillion 620 billion) dinars • The average amount of crude oil exports in August reached (101 million 859 thousand 528 thousand) barrels 3 million 286 thousand barrels of oil were sold daily. - The average price of oil reached $96 a barrel in August. The Iraqi Oil Ministry announced the oil revenues and sales in July • Oil revenues in July reached (10 billion 608 million) dollars, or (15 trillion 381 billion) dinars • The average amount of crude oil exports in July reached (102 million 385 thousand 49 thousand) barrels 3 million 303 thousand barrels of oil were sold daily. - The average price of oil in July reached $ 103 a barrel.

Sadr announces resignation from political life

Iraq's powerful nationalist Shiite cleric Moqtada Al Sadr has announced his final resignation from political life and the closure of his personal offices, according to a statement he released on Twitter. Sadr's announcement comes after he asked lawmakers from his Sadrist bloc to resign from the parliament.

As Iraq's political crisis deepens, US influence dwindles

By Sean Mathews - Middle East Eye Two days after protesters stormed the Iraqi parliament in July, a group named Ashab al-Kahf, or Companions of the Cave, released a threatening statement about the true source of Iraq's political implosion. "The US embassy and British embassy and other Nato countries" had fomented unrest between Iraq's Shia, the group said on 1 August, and "all of their embassies and bases [would] be targeted" in return. The statement from the Iran-backed militia underscored many of the factors at play in Iraq, where the country's main Shia blocs are locked in a bitter power struggle after the collapse of 10 months of talks aimed at forming a government. The standoff pits influential Shia cleric Muqtada al-Sadr, who emerged as the biggest winner in Iraq's October elections, against a coalition of Iran-backed Shia parties that have frustrated the cleric's attempts to cobble together a government. The crisis escalated in June after Sadr withdrew his bloc of MPs from parliament and told his supporters to storm Iraq's green zone, the country's cloistered centre of power. For more than two weeks, thousands of Sadrists have been camped outside parliament as their mercurial leader calls for a total overhaul of the country's political system, new elections and potentially a new constitution. While the Iranian militia claims the US is behind the chaos, analysts and former US officials say that, far from demonstrating Washington's ability to drive events in Iraq, the unfolding crisis marks the US' dwindling power, and interest, in the country. "The US has relatively little to do with what's going on in Iraq, and has few ways to influence it in a positive or negative way," Douglas Silliman, president of the Arab Gulf States Institute in Washington, DC and a former US ambassador to Iraq, told Middle East Eye. 'Absent engagement' Washington is certainly less visible in Iraq today than it has been in decades. While 2,500 US troops remain in Iraq, late last year the Pentagon's combat mission to defeat the Islamic State group transitioned to an "advise and assist" role in support of the Iraqi army. This lower profile has extended beyond the military realm. Iraq has hosted just two senior US government visits in the months since the country's October election. Meanwhile, the sprawling US embassy has been operating with a skeleton crew since 2019, when the US ordered all "non-emergency" staff to leave Iraq amid security threats. "US engagement in Iraq's political process has been almost completely absent," Jonathan Lord, a former Iraq country director at the Department of Defense, now head of the Middle East security programme at CNAS, a Washington think tank, told MEE. Some consider the past ten months a missed opportunity for the US. Washington apprehensively welcomed what was generally seen as a peaceful election, albeit one plagued by record low turnout, where big political parties backed by armed militias demonstrated their staying power. But there were some signs of progress. The US had supported changes to a law making it easier for independent and reformist candidates to be elected. The move was a response to the Tishreen protests that swept Iraq in 2019. Some independent candidates were voted in, however, Sadr made the biggest gains under the new system. Still, "the result of the election was pretty pleasing to Washington", Silliman said. "The US saw the elections as a relatively good sign that Iraq was moving towards institutional politics that are more stable, and produce more moderate governments." There is little love between the US and Sadr, an Iran-educated cleric who led an armed resistance movement against the US occupation. But in recent years, Sadr has billed himself as an Iraqi nationalist. Some in Washington view him as a potential hedge against Tehran, despite concerns about his thirst for power and aims for a religous government styled along the lines of Iran's own theocracy. "The US sees Sadr as a volatile nationalist with a huge base. He is viewed as someone who needs to be steered in a direction beneficial to the US, and that is what the US has tried to do, and will continue to do," Lahib Higel, senior Iraq analyst at International Crisis Group, told MEE. The US has limited scope for dialogue with Sadr. While Sadrists in the Iraqi government do engage with Western officials, they refuse to speak directly to the US. Communication is left to intermediaries. Following the October election, Washington's main political effort in Iraq has revolved around trying to broker talks between Kurdish KDP and KUP parties to agree on a consensus candidate for president, analysts and former US officials say. Iraq operates under a sectarian power-sharing system imposed after the US occupation. The president of Iraq is always a Kurd, the prime minister an Arab Shia, and the president of the parliament an Arab Sunni. "The US' stated position after the elections was that it was neutral, but to some a preferred route was the tripartite alliance between the KDP, the Sunnis and the Sadrists to slowly push out Iran aligned groups," Renad Mansour, Iraq initiative director at Chatham House, told MEE. But Iraq was not a top priority for the Biden administration last autumn. The October elections came as Washington dealt with the fallout of its chaotic withdrawal from Afghanistan. The US was also deep into negotiations with Iran about re-entering the 2015 nuclear deal. The US was likely unwilling to put forth the level of engagement needed to bring the Iraqi groups together. "The reason we haven't seen much talk of the US in Iraq's political process is simply because they don't have much of a role, and they haven't wanted to," Higel said. After the US-led invasion that toppled Saddam Hussein in 2003, Iraq descended into civil war. The Islamic State group then conquered vast swathes of the country. The economy has also stalled. About 90 percent of Iraq's government revenue comes from oil sales. Private sector growth is anaemic. Rampant corruption means ordinary Iraqis have seen little relief from rising crude prices, while food and other living costs have increased, exacerbated in part by Russia's invasion of Ukraine. At the same time, the country is in the middle of an historic drought. And compounding the domestic challenges is the proliferation of Iran-backed militias. The dire situation means Iraq's series of weak governments, cobbled together as compromises between the country's bickering factions, have looked abroad for success. Prime Minister Mustafa Kadhimi has led efforts to mediate between Iran and Saudi Arabia. He has also spearheaded deeper integration with Jordan and Egypt. Ahead of his trip to the region, US President Joe Biden lauded Baghdad as a “platform for diplomacy". But some say the focus on diplomatic forays abroad has only made the government appear more oblivious and unresponsive to the needs of average Iraqis, such as those blockading parliament. "How much do we celebrate a government in which the main successes come when they go to conferences abroad, while the country is falling apart?" said Mansour from Chatham House. Meanwhile, Iraq's political crisis drags on, and the US embassy in Baghdad remains eerily empty.

Iraq exports over 102 mln barrels of crude oil in July

Draw Media Iraq exported 102.38 million barrels of crude oil in July at revenues of 10.6 billion U.S. dollars, said the Iraqi Oil Ministry. The average price for crude oil in July was 103.6 dollars per barrel, according to a ministry statement, citing statistics from the State Organization for Marketing of Oil. A total of 99.96 million barrels were exported from oil fields in central and southern Iraq via the Port of Basra, while about 2.34 million barrels from the northern province of Kirkuk via the Turkish port of Ceyhan on the Mediterranean, the statement said. Oil prices have risen in global markets since the outbreak of the Russia-Ukraine crisis, benefiting Iraq and other oil export countries. Iraq's economy heavily relies on crude oil exports, which account for more than 90 percent of the country's revenues.

Iraqi Oil Revenue (2004 - 2020)

Ibtsam Abdul Latif Mohammed: Research of the House of Representatives Research Office According to the data of the Central Bank of Iraq, revenue and expenditure, the amount of deficit and revenue surplus during the years (2004-2020) were as follows; 1. Total revenue was (1 quadrillion 296 trillion 284 billion) dinars, of which 1 quadrillion 202 trillion 222 billion dinars were oil revenue by (93%). 2. The total expenditure during that period was (1 quadrillion 144 trillion 731 billion) dinars. 3. The deficit was recorded only in 2015, 2016, 2019 and 2020, the total deficit was (33 trillion and 625 billion dinars). - The highest level of deficit in 2020 by (8.5%), one point higher than the deficit rate in 2016. - All other years recorded a surplus of revenue; the total surplus was (196 trillion and 262 billion) dinars. - The highest level of revenue surplus was recorded in 2011 at 20%, which is slightly higher than the surplus in 2012 - If we subtract the total deficit from the total revenue surplus during the period (2004 - 2020), the net surplus will be about (162 trillion and 637 billion) dinars. Iraqi Oil Revenue (2004 - 2020) 1. Total revenue was (1 quadrillion 296 trillion 284 billion) dinars, of which oil revenue was (1 quadrillion 202 trillion 222 billion) dinars. 2. The highest level of gross income was recorded in 2012, followed by 2013 and 2019, due to rising oil prices in the world markets. 3. Total oil revenue during (2004 - 2020) was (1 quadrillion 202 trillion 222 billion) dinars. 4. Iraq's gross revenue is mainly dependent on oil revenues, except for the years (2015, 2016, 2017 and 2020) in all other years by (90%) and more the gross revenues came from oil. Revenue, expenditure, revenue surplus and deficit of Iraq in 2004 – 2020 1. The total revenue of Iraq during (2004 - 2020) was ((1 quadrillion 296 trillion 284 billion)) dinars, the highest rate of revenue recorded in (2012) and (2013). 2. The total expenditure during (2004 - 2020) was (1 quadrillion 144 trillion 731 billion) dinars. 3. The deficit was recorded only in 2015, 2016, 2019 and 2020, the total deficit was (33 trillion and 625 billion dinars). 4. The highest level of deficit in 2020 and was (8.5%), one point higher than the deficit rate in 2016. 5. All other years recorded a surplus of revenue; the total surplus was (196 trillion and 262 billion) dinars. 6. The highest level of revenue surplus was recorded in 2011 at 20%, which is slightly higher than the surplus in 2012 7. If we subtract the total deficit from the total revenue surplus during the period (2004 - 2020), the net surplus will be about (162 trillion and 637 billion) dinars.

Recent Iraqi Supreme Court Decision Likely to Trigger Investment Arbitration Claims

On February 15, 2022, the Federal Supreme Court of the Republic of Iraq (“Iraq”) issued a sweeping decision upending the existing legal framework governing the oil sector in the country (“Court Decision”).[1] The Government of Iraq has since taken numerous steps to implement the decision, which may have significant and far-reaching repercussions on international oil companies operating under petroleum contracts with the Kurdistan Regional Government (“KRG”). The Court Decision, among other things, purports to (i) repeal the Kurdistan Region Oil and Gas Law (No. 22 of 2007) based on which the KRG has entered into Production Sharing Contracts (“PSCs”) with international oil companies, (ii) rule that the Federal Ministry of Oil is entitled to pursue the nullification of any contracts entered into by the KRG with third parties regarding oil exploration, extraction, export and sale, (iii) rule that the Ministry of Oil and the Federal Board of Supreme Audit are entitled to review and revise any oil contracts entered into by the KRG, and (iv) order the KRG to hand over to the federal government all oil production it has extracted from oilfields. In response to the Court Decision, the KRG Prime Minister reaffirmed the KRG’s commitment to its contracts with international oil companies and emphasized that the KRG will not relinquish any of its rights.[2] In addition, on May 30, 2022, Kurdistan’s Judicial Council released a statement challenging the legality of the Court Decision and the validity and competence of the Court itself.[3] While the Court Decision does not automatically terminate contracts with international oil companies, the Government of Iraq has indicated that it intends to force the cancellation or substantial revision of such contracts. On February 26, 2022, the Oil Minister of Iraq issued an order creating a committee with the purpose of executing the Court Decision.[4] On March 24, 2022, the Oil Minister issued an order to the KRG to send for its review copies of all oil and gas contracts it has entered into since 2004.[5] The Oil Minister has also proposed establishing a state-owned regional oil company that would manage oil assets in the KRG and that would be overseen by the Government of Iraq.[6] More recently, the Oil Ministry has also commenced proceedings with several international oil companies, summoning such companies to appear before the Court in Baghdad on June 5, 2022.[7] While the date of the initial hearing was postponed in order to allow for the summons to be perfected, the proceedings are ongoing.[8] Such interference by the Iraqi Government seems all but certain to lead international oil companies to commence legal proceedings against Iraq if the matter is not resolved promptly. The affected investors are expected to seek redress before international fora, in particular, contract-based arbitrations under the terms of the PSCs and, in parallel, treaty-based arbitrations under applicable international investment agreements. Given the number of international oil companies operating in the Kurdistan Region pursuant to long-term contracts with the KRG (over 30), Iraq’s exposure to damages claims could well reach tens of billions of dollars. I. Contract Claims under Production Sharing Contracts Iraq could be held contractually liable for breaching the PSCs by taking any action to either terminate or modify these agreements. It could also be held liable for violating the stabilization clause (contained within the KRG Model PSC (“Model PSC”)) if it takes any measure altering the fiscal or economic conditions resulting from laws or regulations in force on the date of signature of these agreements.[9] Iraq could be contractually on the hook since, as a matter of Iraqi constitutional law, the KRG is a constituent subdivision of Iraq.[10] In the circumstances, international and/or English legal principles such as attribution or alter ego are likely to be relevant (English law being the applicable law stipulated in the Model PSC).h .[11] In this regard, Claimants could in particular point to a recent decision by the High Court of Justice in England which found, in connection with breaches of two oil and gas PSCs, that acts by the KRG “were done in exercise of the sovereign authority of the state of Iraq.”[12] Investors are expected to initiate arbitrations seated in London, England, and governed by the London Court of International Arbitration (“LCIA”) Rules, as expressly provided for in the Model PSC.[13] Notably, the Model PSC broadly defines the scope of “disputes” to cover, among other things, any dispute as to the “existence,” “validity,” “enforceability,” or “termination” of the contract.[14] II. Treaty Claims under Applicable International Investment Agreements Iraq has also entered into several Bilateral Investment Treaties (“BITs”) and multilateral Treaties with Investment Provisions (“TIPs”) that provide substantive protections to investors and commit Iraq to resolving disputes through arbitration. For example, the Japan-Iraq Bilateral Investment Treaty (“BIT”) protects against “expropriation” and “arbitrary measures” and affirms that investors are to be afforded both “fair and equitable treatment” and “full protection and security.”[15] Similarly, investors who are nationals of a member State of the Organization of the Islamic Conference (“OIC”) can initiate arbitration pursuant to the OIC Investment Agreement. The OIC Investment Agreement both protects nationals of OIC Member States against expropriation and allows such nationals, through its most-favored-nation provision, to avail themselves of substantive protections contained in other investment treaties to which Iraq is a party.[16] III. Conclusion The international oil companies impacted by the Court Decision have numerous legal avenues for seeking redress as a result of the substantial harm they may suffer. It is therefore very possible that Iraq will find itself subject to numerous claims in the range of tens of billions of dollars (if not more) before international fora for years to come due to the Court Decision and the Government’s actions to implement that decision. ______________________ [1] Federal Minister of Oil and Ali Shadad Fares v. Minister of Natural Resources of the Kurdistan Region and Speaker of Parliament of the Kurdistan Region, Supreme Court of the Republic of Iraq, 59/Federal/2012 unified with 110/Federal/2019 (15 February 2022). [2] Press Conference of Masrour Barzani, Prime Minister of the Kurdistan Region of Iraq, 3 March 2022. [3] Statement of the Judicial Council of the Kurdistan Region of Iraq No. 1511, 30 May 2022. The KRG maintains that the Court was not properly constituted as the Federal Supreme Court capable of determining matters of constitutional law. [4] Iraq Oil Reporter, Uncertainty Deepens After Landmark Ruling Against Kurdistan’s Oil Sector, 8 March 2022, accessible: https://www.iraqoilreport.com/news/uncertainty-deepens-after-landmark-ruling-against-kurdistans-oil-sector-44651/ [5] Iraq Oil Reporter, Uncertainty Deepens After Landmark Ruling Against Kurdistan’s Oil Sector, 8 March 2022, accessible: https://www.iraqoilreport.com/news/uncertainty-deepens-after-landmark-ruling-against-kurdistans-oil-sector-44651/ [6] Iraq Oil Reporter, Baghdad Launches Legal Action Against Kurdistan’s Oil Companies, 2 June 2022, accessible here. [7] Iraq Oil Reporter, Kurdistan Opens New Front in Baghdad Legal Battles, 9 June 2022, accessible: https://www.iraqoilreport.com/news/kurdistan-opens-new-front-in-baghdad-legal-battles-44896/ [8] Iraq Oil Reporter, Kurdistan Opens New Front in Baghdad Legal Battles, 9 June 2022, accessible: https://www.iraqoilreport.com/news/kurdistan-opens-new-front-in-baghdad-legal-battles-44896/ [9] Model Production Sharing Contract, Kurdistan Regional Government, Article 43. [10] See Constitution of the Republic of Iraq, Article 117. [11] Model Production Sharing Contract, Kurdistan Regional Government, Article 43; See Chevron Bangladesh Block Twelve, Ltd. and Chevron Bangladesh Blocks Thirteen and Fourteen, Ltd. v. People’s Republic of Bangladesh, ICSID Case No. ARB/06/10, Award (17 May 2010); Perenco Ecuador Limited v. Republic of Ecuador and Petroecuador, ICSID Case No. ARB/08/6, Decision on Jurisdiction (30 June 2011). [12] Dynasty Company for Oil and Gas Trading Limited v. Kurdistan Regional Government of Iraq and Dr. Ashti Hawrami, English High Court of Justice 2021 EWHC 953 (Comm) (23 April 2021). [13] Model Production Sharing Contract, Kurdistan Regional Government, Article 42.1. [14] Model Production Sharing Contract, Kurdistan Regional Government, Article 42.1. [15] Agreement between Japan and the Republic of Iraq for the Promotion and Protection of Investments, 25 February 2014, Articles 5(1), 5(2), and 5(3).

Baghdad court rejects Kurdistan’s delay tactics in lawsuit against IOCs

Draw Media, Iraq Oil Report The Oil Ministry’s lawsuit against seven oil companies operating in Kurdistan gained momentum as a Baghdad judge moves toward reviewing contracts. A Baghdad court dealt a setback Sunday to the Kurdistan Regional Government’s (KRG) legal strategy of attempting to delay a federal lawsuit against seven international oil companies (IOCs) operating in Kurdistan. Judge Mohammed Ali Mahmoud Nadeem said the federal Oil Ministry’s case against the IOCs at Baghdad’s Karkh Commercial Court could move forward even though the KRG Ministry of Natural Resources (MNR) has filed a related lawsuit against several Oil Ministry leaders at Erbil’s Court of Criminal Investigation.

Halliburton pledges to obey blacklist policy against KRG oil sector

Draw Media, Iraq Oil Report Three major U.S. oil services companies have now told the Oil Ministry they will comply with new restrictions stemming from February's landmark court ruling against Kurdistan. U.S. oil services giant Halliburton joined Schlumberger and Baker Hughes in notifying Iraq's Oil Ministry that it will comply with a Federal Supreme Court (FSC) ruling invalidating the legal foundations of Iraqi Kurdistan’s energy sector. In a letter dated June 28 and addressed to Iraqi Oil Minister Ihsan Ismaael, which was seen by Iraq Oil Report and confirmed as authentic, Halliburton said it would refrain from entering into new contracts or participating in ongoing tenders in the Kurdistan region without Baghdad’s blessing. Halliburton's letter came in response to a set of circular letters — one from the Ministry of Oil to the Iraqi National Oil Company and one from the Basra Oil Company — instructing “all lead contractors and sub-contractors” to sever their contractual engagements with the KRG within three months or risk being blacklisted by Baghdad.

Iraq's oil revenue in May was $11.436 billion

Draw Media The Iraqi Oil Ministry announced oil revenues in May. • Oil revenues in March reached (11 billion 436 million) dollars, or (16 trillion 580 billion) dinars • The average amount of crude oil exports in April reached (102 million 303 thousand 20 thousand) barrels • 3.3 million barrels of oil were sold daily. - The average price of oil in April reached $ 111.79 a barrel. The Iraqi Oil Ministry announced the oil revenues and sales in April. • Oil revenues in March reached $10.55 billion. • The average amount of crude oil exports in April reached (101 million 390 thousand 662 thousand) barrels 3 million 380 thousand barrels of oil were sold daily. - The average price of oil in April reached $ 104,091 a barrel. The Iraqi Oil Ministry announced the oil revenues and sales in March: • Oil revenues in March reached (10 billion 913 million 197 thousand) dollars. • The average amount of crude oil exports in March reached (100 million 579 thousand 612 thousand barrels) and is distributed among the oil fields as follows: - 99 million 130 thousand 677 barrels of oil were exported from central and southern Iraq. - 1 million 448 thousand 935 barrels of oil were exported from Kirkuk to Turkey. - The average price of oil in March reached $ 108,503 per barrel. - The oil exported in March was loaded by 34 international companies from the southern port and the port of Jayhan.

Iraq tells energy firms in Kurdish region to sign new deals with SOMO

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 said on May 7 that Iraq’s oil ministry would start implementing a February federal court ruling which deemed the legal foundations of the Kurdistan region’s oil and gas sector unconstitutional. A letter seen by Reuters shows 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, marks 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) and 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, Chevron and Gulf Keystone, 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 said.

The Sinjar Dilemma: The PKK and Iraqi National Security

Dr. Firas Elias / Researcher Introduction It is no secret to anyone that the complex nature of the conflicts in the Sinjar district today. Some of them stem from the nature of the Iraqi internal reality, which is represented by the struggle for influence and control between the armed groups in Sinjar, others are related to being part of a Turkish-Iranian regional conflict that resonates in this district, which is located on the edges of the Iraqi-Turkish-Iranian triangle and is connected to a geographical belt along the northern Iraq-Syria border. This makes the security environment in Sinjar extraordinarily complex, and constitutes a major challenge to Iraqi national security, due to the negative setbacks and challenges caused by the PKK’s presence there. Looking at the nature of the security reality in the district indicates that it is still suffering from challenges after its liberation from ISIS, whether at the level of social and political stability, or the security and economic structure. The state of local and regional interference in the district has resulted in major crises, represented in the weakening of the Iraqi government’s control over it, and the indulgence of Turkey and Iran in the game of influence and control, which in turn indicates the great complexity of the PKK’s presence in Sinjar at present. First: The security and administrative reality in Sinjar The PKK was able to establish a military presence in Sinjar after the US invasion of Iraq in 2003, because of the security vacuum in the country. With the success of the Kurdish Peshmerga forces of the Kurdistan Democratic Party in filling this void and others in the disputed areas. However, this did not prevent the PKK from rushing toward Sinjar, and the struggle to fill the void in Sinjar witnessed a significant escalation after its liberation from ISIS control. The circle of conflict is no longer confined to the Kurdistan Democratic Party and the PKK, but the entry of the Popular Mobilization into it has led to an expansion of the circle of influence struggle, which has exacerbated the security in the city. In addition to the emergence of Yazidi factions allied with the PKK, most notably the Sinjar Resistance Units and the Êzîdxan Women’s Units, which are deployed in the city. Êzîdxan’s forces are led by the former representative in the Iraqi parliament, Haidar Shasho, and have allied themselves with the Kurdistan Democratic Party. Sinjar has become a major focus of tensions between the KDP, the PKK, and the PMF factions, Because of the weak control of the central government in Baghdad over the situation in the district.

Iraq's Oil income was about 11 billion dollars in March

Draw Media The Ministry of Oil declared the total exports and revenues of last March, based on the final statistic of Oil Marketing Company (SOMO), where the total crude oil exported quantities was (100) million, (579) thousand, (612) barrels (one hundred million, five hundred seventy-nine thousand, six hundred twelve barrels), with total revenue of (10) billion, (913) million, (197) thousand dollars (ten billion, nine hundred thirteen million, one hundred ninety-seven thousand dollars). The statistic showed that the total crude oil exported quantities, last March, from Iraq's southern and middle fields reached (99) million, (130) thousand, (677) barrels, and the exported quantities from Kirkuk fields through the port of Ceyhan reached (1) million, (448) thousand (935) barrels. The average price per barrel is (108,503) dollars. An additional revenue was generated by selling the crude oil exported quantities with a premium price, where the total revenue was (273.804.794) million dollars. The statistic mentioned that the exported quantities were lifted by (34) international companies from different nationalities, through the ports of Basra and Khor Al-Amia, the Single Point Mooring in the Gulf, and the Turkish port of Ceyhan. The Ministry of Oil took this monthly action as it believes in letting the Iraqi people informed about the exported crude oil and related revenues.

"We will not accept the sale of the KRG’s oil at less than the price of SOMO"

Draw Media "We have received the Kurdistan region's response through the media, and the federal court has given us the power to cancel the region's oil contracts, and we will not accept the sale of the KRG’s oil at less than the price of Iraq's oil," Iraqi Oil Minister said. In an interview with the (Al Iraqiya) channel, Iraqi Oil Minister Ihsan Abdul-Jabbar said Turkey illegally uses the Iraqi oil pipeline and the dossier is in the international courts. Regarding the federal court's decision, the Iraqi oil minister said "The decision has given the ministry of oil the authority to cancel the contracts that the Kurdistan Region has made, Also, it gave us the authority to look for the financial consequences of the process of selling oil and gas of the region in the past years”. He mentioned that the ministry of oil has recently sent some proposals on the system of managing oil resources in the Kurdistan Region, and the proposals are clear, based on parallel contracts legally and commercially. Creating a new entity called the Kurdistan Oil Company, which the federal government owns, as well as creating a guaranteed bank account for the Kurdistan Region, which will belong to the Iraqi Ministry of Finance, to guarantee the payment of the salaries of the people of Kurdistan. Regarding the Kurdistan Region's response to the Iraqi oil ministry's proposals, Ihsan Abdul-Jabbar said, "The Kurdistan regional government has two different answers which we have received from the media, but we have not received an official response yet. Once they say we will not accept the proposals, later they say: "We will deal positively with the proposals, but in a way that guarantees the constitution." "We've officially told them that we do not accept the sale of Kurdistan Region's oil at a different price than the price of SOMO and we will not accept that the cost of producing a barrel of oil in the region reaches 59 percent of its price," the Iraqi oil minister said. He pointed out that the difference between the region's oil sales price and SOMO is 9%, and there is now an attempt by the Kurdish leaders to narrow this difference and negotiate with the oil traders about it. Part of the damage caused to the region is due to the legality or illegality of oil contracts and the central government's protests over the contracts.

Russian invasion of Ukraine has sharp impact on Iraq's economy

Salam Zidane Russia's invasion of Ukraine has caused shortages of food in Iraq and forced the government to pay more in gasoline subsidies, but the high price of crude oil plus sanctions on Russia has opened new opportunities for Iraq. Like many other countries, Iraq was affected by Russia’s invasion of Ukraine due to its dependence on the warring countries' agricultural products. Iraq participated in a four-way summit last week in Aqaba, Jordan, to discuss food security challenges and alternatives. In the meantime, Iraq's oil market is booming after several oil-importing countries cut off Russian supplies. Iraq received oil purchase requests from European countries on March 3 in the wake of the European and US sanctions on the Russian economy. This enables Iraq to enhance its presence in the European market, which it began losing to Russia years ago. Iraq’s daily production amounts to 4.26 million barrels, most of which are exported to China, India, and South Korea. About 1.1 million barrels per day are exported to Europe and purchased by Spain, Greece, and Italy, among others. Russian investments in Iraq are estimated at more than $10 billion, mostly in the oil sector. Several Russian companies operate in southern Iraq and the Kurdistan region in fields with a reserve of 17 billion barrels and currently produce more than 500,000 barrels per day. Chief among these companies is Lukoil in the West Qurna-2 field and Gazbom in the Badra and Rosneft fields in Kurdistan. A spokesman for the Oil Ministry Assem Jihad told Al-Monitor, “In the wake of the Russian-Ukrainian crisis, Iraq received requests to buy oil from European, Asian, and US countries.” The State Organization for the Marketing of Oil (SOMO) discusses such requests, Jihad said, but “Iraqi oil is only sold to refineries and cannot be speculated in the market.” SOMO Deputy Head Ali Nizar said that Russian oil is of similar quality to Iraqi oil, and some countries’ refusal to buy it due to sanctions will increase the demand for Iraqi oil in European and East Asian countries. Thus, Iraq is getting more money for its oil, which benefits the country's financial position. Oil provides 89% of Iraq’s budget, and rising prices have allowed the government to repay foreign debt and resume projects stalled during the past years due to the financial crisis that hit the country in 2020 as a result of the decline in oil prices. The Russian-Ukrainian crisis may lead Iraq to lose the Indian and Chinese markets, which buy Russian oil at $30 less than Brent crude, especially considering that Iraq exports most of its oil to China and India. Iraq is now facing some problems in the West Qurna 2 field, which is operated by the Russian Lukoil Company. Iraq's export capacity is at its highest now, he said, and increasing it by 300,000 barrels per day would require very large investments that take more than six months. On the home front, Iraq is experiencing a gasoline crisis due to the lack of sufficient refineries operating in the country. Director of the Oil Products Distribution Company Hussein Talib said, “When oil prices were below $55, we used to import a barrel of gasoline at $50, but now this barrel costs $110, and we are still selling it at the same subsidized prices, which amount to 31 cents a liter.” Iraq imports 16 million liters of gasoline per day, he said, and “the government spends about $4 million per day to subsidize gasoline prices, and the rise in oil prices increases this amount.” However, Ihsan al-Attar, a Ministry of Oil official who is on the committee that regulates oil licensing, told Al-Monitor that two types of Russian oil companies operate in Iraq. Companies that are the primary investors in oil fields receive their revenues in oil and sell it to international refineries. But the secondary oil companies, he said, "will face a problem because they receive their money in dollars.” He added that Russian companies operating in Iraq will face problems in providing equipment and technology that Iraq needs in its oil fields due to international sanctions against Russia. The Central Bank of Iraq called on state institutions not to deal with Russian companies or transfer money to Russia in order to protect the Iraqi financial system against international sanctions, and the Iraqi Trade Bank is entitled to suspend correspondence with Russian banks. Economist Omar al-Rubaie told Al-Monitor, “Iraq can expand its presence in the European market and stand in the way of Saudi Arabia or any other country getting the chance to have a share in Europe.” Sanctions against Russia will last for years, he said, so Iraq can invest up to $10 billion in the oil sector and increase its production to 8 million barrels per day under current oil prices. The Russian-Ukrainian crisis has also nearly doubled Iraqi food prices since the country depends almost entirely on imports. The government has subsidized basic materials such as wheat and oil, with the aim of reducing prices in the local market. Al-Rubaie, however, noted that trading partners such as Iran and Turkey are suffering today from high inflation, which has created greater demand for domestically produced Iraqi foodstuffs at a lower price. Having said that, if the war continues, the food security of Iraq will remain threatened, because the country cannot grow enough wheat, corn, barley, and rice, due to the water crisis after Iran and Turkey cut off water, increased desertification, and decreased the proportion of arable land. Source: Al-Monitor

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.