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Iraqi government approved a recommendation to supply gas from the Khor Mor field to the Kirkuk gas power plant

The Iraqi government is considering purchasing gas from the Kurdistan region's Khor Mor gas field following another attack on the field this week. The Khor Mor gas field, developed by the UAE's Dana Gas company, plays a vital role in supplying power to almost 80 per cent of the Kurdistan region's power plants. However, a recent drone attack led to disruption, as confirmed by local electricity authorities, resulting in the loss of 2,500 megawatts of electricity. On 26 April, a suicide drone struck the Khor Mor gas field in Sulaimaniyah province, leading to the death of four Yemeni nationals and injuries to two others. Late Monday night, the field faced another attack with two suspected drones. Kurdish guards responded by firing machine guns towards the objects, according to a reliable source who spoke to The New Arab on condition of anonymity. Despite the attacks, the Iraqi government reportedly aims to purchase gas from the field without the consent of the Kurdistan Regional Government (KRG), seeking approval solely from the ruling Patriotic Union of Kurdistan (PUK), the de facto ruler in Sulaimaniyah province. The source emphasised that procuring gas locally from the gas field entails lower costs than importing it from neighbouring Iran. In response, the KRG's Natural Resources Ministry emphasised on Wednesday that gas extracted from the Khor Mor field cannot be traded without prior approval from Erbil. This announcement comes as the Iraqi government recently approved plans to supply gas from the field to a power plant in Kirkuk during a cabinet session on Tuesday. The Natural Resources Ministry reiterated that as per the contract with Pearl Petroleum, gas from the field is reserved for the Kurdistan Region's electricity sector. "Any volume of gas produced must not be distributed without the express consent of the Kurdistan Regional Government," the ministry stated. US sanctions targeting Iranian oil and gas have hindered Iraq's ability to make payments for these imports, resulting in substantial arrears. In response, Iran has frequently retaliated by intermittently cutting off gas supplies. According to Dana Gas, the Khor Mor gas field produces over 500 million standard cubic feet of gas per day, serving as the primary gas source for power plants in the Kurdistan Region. However, pro-Iran militia factions have intermittently targeted the field, causing disruptions in electricity generation. This development comes at a critical time for Dana Gas, which secured US$250 million in financing from the US International Development Finance Corporation in September 2021 to expand gas production at the Khor Mor plant. However, the recent suspension of operations poses challenges to meeting project timelines. Enerflex, overseeing the expansion project, has withdrawn all staff and suspended operations following the drone attack. Similarly, nearly 3000 workers from the Turkish subcontractor, Biltek company, have been withdrawn. Efforts to obtain comments from Dana Gas and Biltek companies were unsuccessful at the time of this report. Despite the setbacks, both companies remain vigilant and are eager to resume operations once security conditions improve. However, the exact timeline for resuming operations remains uncertain. While the expansion project itself was not directly affected by the drone attack, delays may occur due to the suspension of operations at a nearby gas-collecting facility.

Iraq's oil and non-oil revenues

The Iraqi Ministry of Finance announced its revenues and expenditures for the third quarter of this year. 🔹 Until March 2024, the total revenue of the Iraqi Ministry of Finance, including both oil and non-oil revenues, was about (31 trillion and 223 billion) dinars. About 27 trillion and 689 billion dinars accounted for 89% of the total revenue was oil-dependent and about 3 trillion and 534 billion dinars accounted for 11% of the total revenue was non-oil revenues. 🔹 The total expenditures of the Ministry, including both expenditures (operation and investment), was more than (25 trillion and 77 billion) dinars, of which (92.4%) was for operational expenditures and (7.6%) for investment expenditures. 🔹 After deducting all expenditures from the total revenue of the Ministry of Finance, revenue exceeded expenditure by (19.2%) and revenue overflowed by (6 trillion 145 billion and 710 million) dinars. 🔹 More than (2 trillion and 223 billion) dinars were spent by the three presidencies, the House of Representatives more than (127 billion and 507 million) dinars, the presidency about (13 billion and 115 million) dinars and the Council of Ministers more than (2 trillion and 82 billion Dinars).

Iraq's latest oil bid round will draw China closer

The National Iraq’s latest oil and gas bidding round shows China’s growing influence in the Arab country’s energy sector, which faces challenges such as stagnant production and underdeveloped gas reserves, analysts say. In a three-day licensing round, 29 projects were made available for bidding across central, southern and western Iraq, and also included an offshore exploration block in the country's Arabian Gulf waters. By the end of the third day, only 13 projects were awarded, with 10 of them going to Chinese companies such as Zhongman Petroleum and Natural Gas Group, UEG and Geo-Jade. Most analysts were not surprised by the significant Chinese participation and the conspicuous absence of western oil majors, who have been pumping oil in Iraq for several decades. “With its huge investments in Iraq’s oil industry, China establishes a huge new source of oil for its economy. Moreover, it will do its utmost to prevent American oil majors from returning to Iraq,” said Mamdouh Salameh, an oil economist. “Western oil majors decided to remain on the sidelines partly to stop Iraq buying Iranian gas and mostly because of lack of transparency in Iraq,” Mr Salameh told The National. Iran, which has been facing international sanctions over its nuclear programme, is a major supplier of natural gas to Iraq, which uses the fuel for its power stations. Entities from Europe, the Gulf region, the UK, and Russia also remained “conspicuously absent” from the bidding process, Mahmood Baban, research fellow at Rudaw Research Centre, told The National. “Factors contributing to this included concerns over asset protection…and strategic shifts towards renewable energy investments among European nations,” Mr Baban said. Iraq began to attract international oil companies (IOCs) after the security situation in the country stabilised in 2008. Among major oil companies were ExxonMobil, Shell, the UK’s BP, China’s CNPC and Russia’s Lukoil. Since then, Iraq has awarded dozens of oil deals to develop major fields that hold more than half of its 145.02 billion barrels of proven reserves. Deals to tap natural gas resources have also been awarded. Iraq’s oil ministry plans to increase production to 6 million barrels per day in the next five years, from about 4 million bpd currently. It exports around 3.3 million bpd. China, the world's second-largest economy, is the biggest buyer of Iraqi crude, importing about 1.18 million bpd, which is more than a third of Iraq's total crude exports, according to S&P Global. “Chinese companies already dominate Iraq’s upstream sector, and the two countries enjoy strong diplomatic and trade ties. China is Iraq’s biggest crude market. So, there are plenty of synergies here,” said Vandana Hari, chief executive of Vanda Insights. In 2021, China’s state-run Sinopec energy company won a deal to develop a major gas field in eastern Iraq. A contract was signed to develop the 4.5 trillion cubic feet Mansuriya gas field for 25 years. Last year, the Central Bank of Iraq said it planned to allow trade with China to be settled directly in yuan for the first time to improve its access to foreign currency. The settlement of trade in the Chinese currency instead of the US dollar will help the Iraqi central bank to “stabilise exchange rates”, it said in a statement at the time. China’s heavy dependence on Middle Eastern oil and gas has prompted substantial investments in infrastructure projects via the Belt and Road Initiative. China is looking to position itself as an alternative to the US in the region. It has previously mediated talks between Iran and Saudi Arabia. Meanwhile, with the notable exceptions of Guyana, Mozambique, Liberia and Namibia, big international energy players have continued to retreat from established hydrocarbon basins around the world, Ms Hari said. “They have been variously replaced by smaller independents and national oil companies and in some cases, by Chinese state-owned giants, who still have the mandate to secure equity in oil and gas for the country’s future needs,” she added. China’s oil demand is expected to slow this year. Crude demand growth is set to fall by 63 per cent from 2023 to 620,000 bpd this year, the IEA said in a report earlier this year. Natural gas push The latest contracts could help Iraq harness its vast natural gas resources, which are key to addressing the country’s chronic electricity shortages, especially during hot summers. Despite billions of dollars spent on infrastructure over the past few decades, many Iraqi cities and towns still experience severe power cuts and rolling blackouts. The country’s electricity demand is set to double between 2019 and 2030, with its supply shortfall expected to widen as its population grows by more than a million a year, according to the IEA. Giovanni Staunovo, a strategist at UBS, said that increasing domestic gas usage may free up more crude for exports in the long term. However, some analysts have expressed concerns about Iraq’s ability to implement the oil and gas contracts. More than 20 years since the US invasion of Iraq, the country remains mired in challenges, compounded by political divisions and foreign interference. Most recently, Iraq became a battleground between Iran-backed Shia militias and US troops stationed in the country, arising from tit-for-tat violence related to the war in Gaza and the broader conflict between Tehran and Israel. “Iraq's recent contract signings represent a pivotal moment in its energy sector evolution,” Mr Baban said. “However, challenges persist, including political complexities and regional tensions, which could impede the smooth implementation of these contracts,” he added. “As Iraq navigates its path forward, addressing these issues will be critical to realising the full potential of its oil and gas reserves in the coming decades.”

Iraq signs gas flaring deal with Honeywell

The Iraqi government and Iraq’s private sector and Honeywell have signed a number of Memoranda of Understandings (MoUs). The MoUs will strengthen Iraq’s infrastructure as the nation deals with a growing demand for energy and power. The agreements were made in April 2024 while Iraqi Prime Minister Mohammed Shia Al-Sudani was visiting the US. A statement from the US company states that Honeywell was able to look into possible strategic alliances with Iraq’s oil and gas industries through these agreements. These alliances could involve the provision of development, automation, remote control, and monitoring services in addition to the prevention of gas flaring. “Honeywell has done remarkable work in Iraq, and I look forward to what we can do with these agreements,” said Ken West, president and CEO of Honeywell Energy and Sustainability Solutions (ESS). “While there has been significant development within the energy sector locally, there is still tremendous potential for growth and cooperation, all aimed at providing a more reliable and sustainable energy sector for Iraqis throughout the country,” added West. Since the 1970s, Honeywell has operated in Iraq, and most recently, Mohamad Shaboot was named President of Honeywell Iraq. “These agreements show a clear commitment by both Honeywell and the Iraqi public and private sectors to continue the modernization and development of local industry,” said Shaboot. “The focus on the energy sector is only continuing to grow and it is incumbent upon all of us to put in place the necessary technology and rigor to help realize a better energy future for the entire region.” Honeywell provides industrial services in a number of areas, such as energy, smart buildings, and aerospace.

Controversy and caution surrounds Iraq's bid to end UN mission

Iraq's government, led by Prime Minister Mohammed Shia al-Sudani, has called for the United Nations to end its longstanding political mission in Iraq by 2025, asserting that the mission has outlived its necessity. This plea has elicited a range of responses from Iraqi politicians and observers, with some endorsing the decision while others warn of potential consequences. Raed Al-Maliki, a member of the Iraqi Parliament's Legal Committee, welcomed the government's stance, affirming on the X platform that "The presence of this mission is based on Chapter VII resolutions of the United Nations Charter and it is a form of restricting sovereignty at the international level." He agreed with the government's view that the mission's continuation may impinge on Iraq's sovereignty. However, the decision has not been universally embraced. The Al-Hal party, led by politician Jamal Al-Karbouli, urged caution, stating, "The decision needs caution and review." Al-Karbouli highlighted instances where the UNAMI allegedly displayed bias towards political interests, particularly in its interactions with successive governments. He suggested that Jeanine Hennis-Plasschaert, the UN mission's representative, had influenced its trajectory, sometimes favouring certain political factions. The Iraqi government issued a statement on Sunday regarding the termination of the United Nations mission, indicating its request to conclude the UNAMI mission by the end of 2025. Government spokesperson Bassem al-Awadi stated that this decision aligns with the government's approved program by the parliament and its efforts to regulate Iraq's relations with international bodies in light of developments since 2003. The government formally submitted its request to the UN Security Council and the Secretary-General of the United Nations in May 2023, aiming to assess UNAMI's work objectively and prepare for its definitive closure, al-Awadi added. Plasschaert, who assumed her role in January 2018, succeeding Jan Kubis, has been praised and criticised for her approach. Despite her significant role in political dialogues, she faced backlash for perceived closeness to armed faction leaders, earning her the local nickname "the auntie." Before her UN appointment, Plasschaert served as the Netherlands' Minister of Defense from 2012 to 2017, making her the first woman to hold the position. In her final briefing in February, Plasschaert emphasised the critical juncture facing Iraq and urged restraint against internal and external threats. She also highlighted the continued prevalence of corruption, stressing the need for accountability to curb embezzlement and misuse of public funds. Responding to the government's call, Muhi al-Ansari, head of the Iraqi movement Al-Bayt Al-Iraqi, criticised the UN mission's perceived role, stating to The New Arab's Arabic-language sister publication, Al-Araby Al-Jadeed that it had contributed to institutional fragility and legitimised non-state armed groups, dubbing Plasschaert as the "saviour of the regime" amid the 2019-2020 protests. On the other hand, Iraqi political researcher Ghaleb al-Daimi acknowledged Plasschaert's controversial role but stressed the ongoing need for UN representation in Iraq despite criticism from various political factions. Ending the mission necessitates a decision from the United Nations Security Council, which mandates majority approval and requires no objection from any of the five permanent member states. This authority is derived from the powers bestowed upon the Security Council by the Charter, spanning from Article 39 to Article 52. This decision-making process underscores the Security Council's role in establishing and annually extending the mission. It reinforces the council's prerogative to terminate the mission, highlighting that such a decision can only be revoked through an official mechanism.

Chinese companies win more bids to explore for oil and gas in Iraq

No US oil majors have been involved, even after Iraqi Prime Minister Mohammed Shiaa al-Sudani met representatives of US companies last month. Iraq’s oil minister said Chinese companies won five more bids to explore Iraqi oil and gas fields as the Middle Eastern country’s hydrocarbon exploration licensing round continued into its second day. Chinese companies have been the only foreign players to win bids, taking licenses covering ten oil and gas fields, while Iraqi Kurdish company KAR Group took two. The oil and gas licences for 29 projects in total are mainly aimed at ramping up output for domestic use, with more than 20 companies pre-qualifying, including European, Chinese, Arab and Iraqi groups. Iraq wanted this licensing round, the country’s sixth, in particular to increase output of natural gas, which it needs to use to fire power plants that currently rely heavily on gas imported from Iran. However, no bids were made on at least six fields with gas potential, possibly undermining those efforts. Also notably no US oil majors have been involved, even after Iraqi Prime Minister Mohammed Shiaa al-Sudani met representatives of US companies on an official visit to the United States last month. Among specific awards, China’s CNOOC Iraq won a bid to develop for oil exploration Iraq’s Block 7, that extends across the country’s central and southern provinces of Diwaniya, Babil, Najaf, Wasit and Muthanna, said oil minister Hayan Abdul Ghani. ZhenHua, Anton Oilfield Services and Sinopec won bids to develop the Abu Khaymah oilfield in Muthanna, the Dhufriya field in Wasit and the Sumer field in Muthanna, respectively, the minister said. Iraq’s oil minister added that China’s Geo-Jade won a bid to develop the Jabal Sanam field for oil exploration in Basra province. Iraq, OPEC’s second-largest oil producer behind Saudi Arabia, has been hampered in its oil sector development by contract terms viewed as unfavourable by many major oil companies, as well as recurring military conflicts and growing investor focus on environmental, social and governance criteria.

Iraq Says It Won’t Agree to More OPEC+ Oil Output Cuts

Iraqi Oil Minister Hayan Abdul Ghani said on Saturday that his country would not agree to renew oil production cuts in the forthcoming OPEC+ meeting, scheduled for early next month in Vienna. Speaking at an oil and gas licensing event in Baghdad, Abdul Ghani stated that Iraq had already made enough voluntary oil production reductions and would not agree to "any renewals" proposed by OPEC+. OPEC+, comprising the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other non-OPEC producers, has been pushing for production cuts among its members to stabilize oil prices amid a weak global demand. Iraq said in March that it would extend a voluntary oil production cut, in accordance with a previous agreement with OPEC+, until the second quarter of 2024. As OPEC's second-largest oil producer, Iraq boasts over 145 billion barrels of proven oil reserves and approximately 132 trillion cubic feet of proven natural gas reserves. The country's economy is heavily dependent on crude oil exports, which constitute over 90 percent of its revenu

Iraq invests in 29 oil and gas fields in 12 provinces

Prime Minister Mohammed S. Al-Sudani sponsored the launch of the fifth supplementary and sixth licensing rounds. “These rounds include 29 projects encompassing oil and gas fields and exploratory blocks, distributed across 12 provinces in Iraq,” stated the Media Office of the Prime Minister in a statement.

Suspension of artistic and financial measures for the elections in the Kurdistan Region

Board of Commissioners: Suspension of artistic and financial measures for the elections in the Kurdistan Region "Until the complaint is resolved in the Federal Court" 🔹The Board of Commissioners of the Independent High Electoral Commission suspended the artistic, administrative and financial measures related to the Kurdistan region's parliamentary elections. The Independent High Electoral Commission has decided to suspend the technical and financial measures related to the Kurdistan parliamentary elections until the complaint is resolved before the Federal Court. According to the statement of the High Electoral Commission, the Board of Commissioners decided to: 1- Suspension of the technical and financial measures related to the Iraqi Kurdistan Parliamentary Elections (2024), until the resolution of the complaint before the Federal Supreme Court No. (126/Federal/2024). 2. Instruct the electoral administration to take the necessary measures. 3. This decision shall be published on the website of the Commission.

From challenges to collaborations: IRAQ-TURKIYE relations in focus

Iraq and Turkiye's relationship spans a spectrum of challenges and collaborations, from addressing security concerns related to the PKK to fostering robust trade ties and navigating complexities in the oil and water sectors. This report sets the stage for a closer examination of the multifaceted dynamics shaping their bilateral interactions. Turkiye's Military Operations And Iraq's Evolving Response The Turkish Armed Forces have been conducting cross-border military operations against the Kurdistan Workers' Party (PKK) since the 1980s. The PKK maintains bases in the mountainous areas of northern Iraq near the Turkish border. This proximity allows them to launch attacks into Turkiye. In contrast, the Turkish army has established several military bases at strategic points in the Matin mountain range in Iraqi Kurdistan, citing the expulsion of Kurdistan Workers' Party militants as justification. In July 2015, a two-and-a-half year-long ceasefire broke down, and the conflict between Ankara and militants of the PKK – recognized as a terrorist organization by Turkiye, the U.S., and the European Union – entered one of its deadliest chapters in nearly four decades. Since that date, the conflict has progressed through several phases. Between roughly 2015 and 2017, the violence devastated communities in some urban centers of Turkiye's majority Kurdish southeast and – at times – struck into the heart of the country's largest metropolitan centers. From 2017 onward, the fighting moved into rural areas of Turkiye's southeast. As the Turkish military pushed more militants out of Turkiye, by 2019, the conflict's concentration shifted to northern Iraq and northern Syria. In 2020, the first mission triggered a series of subsequent operations with similar names and methods of execution, each justified differently. Between June and September 2020, Ankara launched Operation Claw Eagle and Claw Tiger, characterized by airstrikes carried out by aircraft and drones targeting PKK positions in Mount Sinjar. Additionally, ground operations were conducted in Haftanin (Zakho District of Duhok) against Kurdish guerrilla forces. In April 2021, the Turkish army launched Claw-Lightning and Claw-Thunderbolt operations along the Iraq-Turkiye border near Metina, Zap, and Avashin-Basyan. In April 2022, Ankara commenced Operation Claw-Lock in northern Iraq, establishing several bases in Duhok Governorate. Iraq views Turkish airstrikes and bases as a violation of its sovereignty and territorial integrity. These operations commonly cause civilian casualties and damage infrastructure alongside the killing of PKK members. The Iraqi government also worries that Turkish military presence in northern Iraq could destabilize the Region and empower Kurdish separatists within Iraq. The PKK conflict, spanning about four decades, has been a persistent challenge, with Turkiye expressing disappointment in the Iraqi government's historical "reluctance" to acknowledge and ban the PKK as a terrorist organization. However, recent developments have signaled a shift in Iraq's stance. Last March, Turkiye proposed the establishment of a "joint operation center" with Iraq to combat the Kurdistan Workers' Party (PKK), a move that has received a positive response from Baghdad. Previously, a high-level Turkish delegation, including Foreign Minister Hakan Fidan, Defense Minister Yasar Guler, and National Intelligence Organization (MIT) head Ibrahim Kalin, visited Baghdad for a top security meeting with Iraqi counterparts. This meeting marked the second round of discussions, with the first round held in Ankara in December. During a press conference in Ankara, Brigadier General Zeki Akturk, the Turkish defense ministry's media, and public relations advisor stated that Iraq and Turkiye are ready to sign a strategic framework document. This document aims to establish a joint operations center as part of Ankara's efforts to combat terrorism. "Both countries are positively inclined towards our proposals for the Joint Operations Center and other cooperation efforts in combating terrorism," said Akturk. He also noted that Iraq recognizes the PKK as a threat. According to a Turkish defense ministry official, the proposal aims to enhance cooperation in addressing the PKK's activities along the Iraq-Turkiye border. Following the high-level talks, Iraq announced the designation of the PKK as a "banned organization." Moreover, the Kurdistan Region is always confirmed to turn the Region into a source of conflict with neighboring countries. In a TV interview last February, the President of Kurdistan Region, Nechirvan Barzani, was asked if Turkiye coordinates with Erbil when launching strikes against PKK in the Region; Barzani explained, "The (Kurdistan) Workers' Party is a severe headache for the Kurdistan Region and Iraq as well. They do not value the legitimacy of the Kurdistan Region's institutions and threaten Turkiye from our territories. While we completely reject the principle of turning the lands of the Kurdistan Region into a source of threat to our neighbors, whether this neighbor is Turkiye or Iran." He rejected that PKK, as opponents of Tehran and Ankara, "make the Kurdistan Region a safe area to create problems for these countries. It is regrettable that the PKK plays a very negative role in this context and uses the mountainous areas of the Kurdistan Region and tries to create problems for Turkiye. This is absolutely unacceptable from our side." Iraq-Turkiye's Growing Economic Partnership Iraq and Turkiye have a long history of trade relations; Turkiye's most important exports to Iraq include chemicals and products, the oilseed sector and its derivatives, grains and legumes, furniture, paper and forest products, the construction sector, and medicines. On the other hand, Iraq's most important exports to Turkiye are mainly oil. On Saturday, the Turkish Ministry of Trade revealed that Turkish exports to Iraq would soon increase to $15 billion and $20 billion by 2030. Turkish Minister of Trade Omer Polat told Anadolu Agency that "Iraq has always been one of the most important countries for Turkiye in terms of trade and economic relations," noting that "Iraq's share of Turkish exports over the past ten years exceeded 5% of the country's total exports." Polat clarified that "Turkish exports to Iraq encompassed most sectors, with the trade volume between the two countries reaching $24.2 billion in 2022 and $19.9 billion last year." "Our exports to Iraq decreased by 7.2% compared to the previous year, reaching $12.8 billion, while our imports from Iraq decreased by 31.1% to approximately $7.2 billion during the same period. Our foreign trade surplus was $5.6 billion last year." Polat emphasized that "exports increased by 24.5% during the first three months of 2024 compared to the same period last year, reaching $3.4 billion, while imports decreased by 46.2% to $835 million." The Turkish Minister of Trade concluded by indicating that "Turkish exports to Iraq are poised to reach $15 billion soon and $20 billion by 2030, with the completion of the Development Road project." Oil Diplomacy: Tensions And Renewed Efforts In Iraq-Turkiye Energy Relations The energy dynamics between Iraq and Turkiye have played a pivotal role in their diplomatic ties, given Turkiye's energy consumption and reliance on imports, primarily from hydrocarbons, due to limited domestic resources. Iraq, particularly the Kurdistan Region of Iraq (KRI), has emerged as a crucial partner for Turkiye, particularly in oil and gas reserves. Over the years, Turkiye has become a key strategic ally for the KRI, facilitating the export of approximately 500 thousand barrels per day (mb/d) of oil through the Ceyhan port. However, tensions escalated in March 2022 when Turkiye halted oil exports amounting to 450,000 bpd from Kurdistan following a compensation order by the International Chamber of Commerce related to "unauthorized" oil exports by the KRG between 2014 and 2018. The crux of the dispute revolves around accusations that Turkiye breached a 50-year-old pipeline transit agreement by allowing oil exports from KRG-controlled areas without Iraq's consent. Baghdad contends that Ankara and the Turkish state energy company BOTAS violated the terms of a 1973 Iraq-Turkiye pipeline agreement by handling oil from Kurdistan without official approval. Iraq asserts that only the state-owned marketer SOMO has the authority to manage crude exports via Ceyhan. While most of Iraq's crude exports pass through southern ports, the northern route via Turkiye still contributes around 0.5% of the global oil supply. The halt in exports contributed to the oil barrel to reach 80$ at that time. During a visit to Erbil in November 2023, Iraqi oil minister Hayan Abdel-Ghani expressed optimism about reaching an agreement with the KRG and foreign oil companies to resume oil production from Kurdish oilfields. Despite Turkiye's prior announcement that the pipeline was ready to operate, Iraq maintained that it had yet to receive official notification and highlighted unresolved financial and technical issues. However, recent discussions between the Iraqi PM Mohammed Shia Al-Sudani and U.S. President Joe Biden emphasized the importance of ensuring Iraqi oil reaches international markets, signaling a renewed effort to reopen the pipeline between Iraq and Turkiye. In response, the Association of the Petroleum Industry of Kurdistan (APIKUR) expressed readiness to engage in discussions with Iraqi and KRG officials to resume oil exports, stressing the need for guarantees regarding financial obligations per existing agreements. Water Crisis: Turkiye's Dams And Iraq's Droughts The water problem between Iraq and Turkiye primarily revolves around the flow of the Tigris and Euphrates rivers, which originate in Turkiye and flow through Syria and Iraq. The construction of dams and large irrigation systems by Turkiye has led to a massive reduction in water flow into Iraq by 30-40%, causing droughts and water shortages. In addition, Turkiye's Southeastern Anatolia Project (GAP) and the Ilısu Dam project are particularly contentious. They have resulted in a 40% cut in water flows into Syria and Iraq, impacting agriculture, energy production, and the overall water supply in these countries. This reduction in water flow has been a major source of tension between the two countries, with Turkiye's projects leading to droughts in Iraq and exacerbating the water shortage crisis in the Region.

The Iraqi Commission set the date of the Kurdistan election campaign

A spokeswoman for the Iraqi Election Commission said “May 10 is the date set for the start of the campaign for the Kurdistan parliamentary elections and the final decision is up to the council of commissioners". Jumana Ghalay added: The Iraqi High Election Commission announced that May 10 will be the start of the party's, lists and independent candidates’ campaign for the upcoming Kurdistan parliamentary elections and will last 28 days. She added that the election campaign of political parties and coalitions would be suspended 24 hours before the special vote and 48 hours before the general vote

Iraq’s external debt reduced to $9 billion

The Iraqi government revealed that it succeeded in reducing external debt by more than 50 percent from the end of 2022 until 2024. The spokesperson for the Iraqi government, Basem Al-Awadi, said that the external debt decreased to about $9 billion in 2024, compared to $19.72 billion in 2022, according to the Iraqi News Agency (INA). Al-Awadi said in a statement that the government adopted several executive actions and approved a set of financial choices, resulting in a more than 50 percent reduction in the external debt, which dropped to about $8.9 billion in 2024. The Iraqi official explained that the government took steps such as restructuring certain debts and directing them to be used for important initiatives, in addition to canceling loans that were unproductive. Al-Awadi pointed out that the government provided sovereign guarantees to assure the completion of private sector initiatives carried out for the government’s benefit but only permitted financial cooperation with other countries in specific circumstances, such as direct productive borrowing.

Iraq will reopen the Kirkuk–Ceyhan Oil Pipeline by the end of this month

A senior Iraqi official in the oil sector revealed that Baghdad is working on repairing a pipeline that might enable it to transfer 350,000 barrels per day to Turkey by the end of the month. This development is expected to enrage international oil companies as well as the Kurdistan Regional Government (KRG), according to Reuters. Reopening the ten-year-old Kirkuk-Ceyhan pipeline would offer an alternative route to the Kurdistan region’s pipeline, which has been closed for a year due to an impasse in discussions between Baghdad and the KRG over the resumption of oil exports. Production-sharing agreements between Iraqi Kurdistan and international corporations utilizing the KRG pipeline are unlawful in Baghdad’s eyes. Oil firms will have to negotiate with the federal government in Baghdad to export their oil to Turkey through the reopened pipeline, which might infuriate the KRG, which depends on oil revenues. The 960-kilometer (600-mile) pipeline’s exports were stopped in 2014 as a result of several attacks by ISIS terrorists. The pipeline used to handle 0.5 percent of the world’s supply. The deputy oil minister for upstream affairs, Basim Mohammed, told Reuters that although repair work is still proceeding, a large crude pumping station with storage facilities has been finished. Mohammed noted that the pipeline should be operational and ready to resume flows by the end of April. Turkey stopped Iraq’s exports of 450,000 barrels per day through the oil pipeline that extends from the Kurdistan region of Iraq to the Turkish port of Ceyhan on March 25, 2023. Turkey’s decision to suspend oil exports followed an arbitration decision issued by the International Chamber of Commerce (ICC) in Paris. The decision obliged Turkey to pay Baghdad $1.5 billion in compensation for damages caused by the KRG’s export of oil without permission from the federal government in Baghdad between 2014 and 2018. The KRG began exporting crude oil independently in 2013, a step Baghdad considered illegal.

Iraqi Chief Justice invites UNAMI to play a role in resolving the obstacles to holding the parliamentary elections in the KRI

The head of Iraq's Federal Supreme Court, Jassim Mohammed Aboud, on Sunday called on the United Nations Assistance Mission for Iraq (UNAMI) to play a role in resolving the obstacles to holding the parliamentary elections in the Kurdistan Region, which he described as a "federal region" citing article 117 of the Iraqi constitution. A statement from the council's media office said that "the Chief Justice, Judge Jassim Mohammed Aboud, received today the Special Representative of the United Nations Secretary-General in Iraq, Jeanine Hennis-Plasschaert, and her accompanying delegation at the headquarters of the council in Baghdad." During the meeting, the role of the United Nations Assistance Mission for Iraq (UNAMI) from 2003 until the present was discussed, and the issue of the decision issued by the Federal Supreme Court regarding the localization of the salaries of retirees, employees, and beneficiaries of the social protection network was discussed based on a lawsuit filed by employees in the region and the impact of that. The decision to distribute salaries to the segments mentioned above during this week in the Kurdistan region of Iraq, as the reason for this is the presence of problems between the federal government and the regional government regarding the implementation of the budget law, and the court stated in its decision that this should not be a reason for depriving employees and retirees in the region of their monthly salaries and must to be treated the same as other employees in all governorates in order to achieve the principle of equality. The President of the Federal Supreme Court explained that the Constitution of the Republic of Iraq, in accordance with Article (117), recognized the Iraqi Kurdistan region and its existing authorities as a federal region, and the authorities of the region, in accordance with Article (121/First) of this Constitution, have the right to exercise legislative, executive, and judicial powers in accordance with the provisions of this Constitution, with the exception of what is stated therein. It is the exclusive jurisdiction of the federal authorities. He pointed out that the Federal Supreme Court does not consider cases on its own, but rather based on lawsuits brought before it by plaintiffs, and that the court must resolve those lawsuits in accordance with the Constitution and the law. He pointed out that the United Nations Mission in Iraq must have a role in resolving obstacles facing holding elections for the parliament of the Kurdistan region of Iraq.

Iraq to stablish Wasit Oil Company

The Wasit Oil Company's establishment work was confirmed on Thursday by Hayyan Abdul Ghani, the Deputy Prime Minister for Energy Affairs and Minister of Oil. He also mentioned that international companies have been invited to develop three fields and exploratory spots in Wasit Governorate. "Deputy Prime Minister for Energy Affairs and Oil Minister Hayyan Abdul Ghani arrived in Wasit province and met with its governor, Muhammad Jamil al-Mayahi, and members of the government and local departments in the province," reads a statement from the Ministry of Oil. "Wasit province gains government attention and support, and we are keen to communicate with the local government and with the governor to advance the service reality and develop the oil industry," the oil minister reportedly stated in the statement. He emphasized "work to establish the Wasit Oil Company" and noted that "issues and projects of common interest were discussed to advance the service reality and the development of the oil industry in the province." "International companies were invited to develop three fields and exploratory spots in Wasit province as part of the fifth complementary oil licensing round," he said, pointing out that "specialized companies were invited to participate in investment opportunities to build the Wasit investment refinery." Noting that "allocations of social benefits have been increased to support the service and health sectors for citizens," the oil minister placed emphasis on "working to develop the distribution sector and promote the service reality in the province."