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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.  

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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.

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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

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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.

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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.

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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.

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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

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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.

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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.  

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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.

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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." 

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Iraq tightens grip on autonomous Kurdish region

AFP Iraq is using a period of relative stability to assert more control over the autonomous Kurdistan region that has long had fraught relations with federal authorities, analysts and politicians say. Long-simmering disputes between Baghdad and Irbil, the capital of the northern region, came to a head recently after several Supreme Court rulings that the Kurds saw as an attempt to weaken the region’s autonomy. Regional Prime Minister Masrour Barzani warned last week of “conspiracies aimed at undermining and dismantling the Kurdistan region” with “internal support within Kurdistan.” The pressure is aimed at Barzani’s Kurdistan Democratic Party or KDP, which has been locked in a never-ending rivalry with the other main party, the Patriotic Union of Kurdistan or PUK. Kurds in Iraq were persecuted under the Sunni Arab-dominated regime of the late dictator Saddam Hussein but the 2005 constitution formalized their autonomy after the 2003 US-led invasion that toppled Saddam. But mending the volatile ties between the central government in Baghdad and Kurdistan has been a persistent challenge. Consecutive federal governments have long been preoccupied with “crises and complex challenges,” said a senior official in Baghdad about years of war, the fight against the Daesh group, and anti-government protests. “That is why they never looked into Kurdistan’s mistakes ... (such as) oil deals and exports, the region’s financial system, and several illegal decisions that have been made,” he added. But, he added: “Now is the time to fix these mistakes.” Despite facing the same problems as Baghdad, such as endemic corruption, fractious politics, and entrenched ruling elites, the US-backed Kurdistan region has portrayed itself as a hub of stability and economic growth in contrast to the conflicts and crises that have besieged federal Iraq. Last year, civil servants and lawyers from the city of Sulaimaniyah, the PUK stronghold, had taken the regional and national authorities to court over unpaid salaries in Kurdistan, where officials have long accused Baghdad of not sending the necessary funds. In February, the Federal Supreme Court in Baghdad ordered the federal government to pay public sector salaries in Kurdistan directly instead of via the regional administration under a previous long-standing arrangement. It also demanded that Irbil hand over all “oil and non-oil revenues” to Baghdad. In a separate case, the court ruled to reduce the number of seats in the Kurdish parliament from 111 to 100, effectively eliminating a quota reserved for Turkmen, Armenian, and Christian minorities. In response, Barzani’s KDP, the largest party in the outgoing parliament with 45 seats against 21 for the PUK, said it would boycott legislative polls due to take place in June. The tussle with the federal court has aggravated an already tense disagreement over oil exports. In March 2023, the federal government won international arbitration, recognizing its right to control Kurdish oil exports through Turkiye. The ruling led to the suspension of exports, which blocked a significant source of income for the regional administration. Irbil later agreed in principle that sales of Kurdish oil would pass through Baghdad in exchange for 12.6 percent of Iraq’s public spending, but the agreement’s implementation has stalled. When Prime Minister Mohammed Shia Al-Sudani first came to power in 2021, Baghdad and Irbil enjoyed better relations than they had seen in years. But experts say that some parties that brought Al-Sudani to power are now determined to weaken the autonomous Kurdistan region. “Some politicians desire to undermine the constitutional state of the Kurdistan region out of political vengeance,” said Ihsan Al-Shammari, a political scientist at the University of Baghdad. Although court decisions concerning Kurdistan are “constitutional,” they are “political,” Al-Shammari said. The recent tension undermines Irbil’s relationship with Baghdad and aims to “politically” weaken the KDP, Al-Shammari added. Political bickering between the KDP and its main rival, the PUK, which enjoys friendlier ties with the federal government, has always shaped politics in the autonomous region. PUK chief Bafel Jalal Talabani announced his support for the Supreme Court’s decisions — an institution he said helped “protect the political system in Iraq.” But Sabah Sobhi, a KDP lawmaker, said the decisions undermined Iraq’s current political system. He said some political parties wanted to replace “the federal and decentralized” system with a “centralized and authoritarian” rule. “Disagreements among Kurds would undoubtedly” worsen the situation, Sobhi warned.  

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Iraqi Ministry of Finance releases salaries for KRI's security personnel

The Federal Ministry of Finance announced, on Wednesday, the disbursement of salaries for security personnel in the Kurdistan Region (KRI) for February. According to a statement from the ministry, "the Accounting Department within the ministry initiated the funding for the remaining salaries of security personnel in the Region for the month of February." "This action follows the procedures outlined by the Ministry of Finance for financing the Region's salaries per the decision of the Federal Court." "The funding was released based on the Ministry of Finance Accounting Department's letter numbered 9133 dated April 3, 2024, after fulfilling all the required procedures for financing the salaries of federal government employees." Notably, on February 21, the Federal Supreme Court, the highest judicial authority in Iraq, decided to obligate both Prime Ministers Mohammed Shia Al-Sudani and Masrour Barzani to localize the salaries of employees and workers in the public sector at federal banks. The Court's new decision has sparked anger and criticism among Kurdish politicians, with some claiming that the decision is unconstitutional and politically motivated and that it undermines the autonomy and finances of the Kurdistan Region. However, some observers and experts argue that the decisions are correct and consistent with the law and the constitution and will ensure everyone's rights and end the suffering of the Region's employees.

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Iraq And Iran Will Expedite Development Of Sanctions-Busting Shared Oil Fields

A key reason why oil prices have remained relatively subdued despite the ongoing Russia-Ukraine and Israel-Hamas wars is that Iran has been producing much more oil than widely known, with the tacit agreement of the U.S. This acquiescence stems from the White House’s desire to avoid the sort of surging energy prices that caused inflation and interest rates to spike in it and its key allies in the aftermath of the Russian invasion of Ukraine in 2022, risking economic recessions in several of them. It also comes from the political awareness that rising oil prices cause gasoline prices to rise as well, and this directly affects a sitting U.S. president’s chances of re-election, as analysed in full in my new book on the new global oil market order. This massive additional quantity of oil from Iran over and above the official figures has gone to China for a basic discount of 30 percent minimum to the relevant grade benchmarks, which has reduced China’s demand for oil in the open market and has consequently acted as a dampening factor on global oil prices. The reason why it does not show up in any official figures is that these ‘unofficial’ oil flows from Iran are held by China in ‘bonded storage’, and oil that goes into bonded storage is not put through China’s General Administration of Customs (GAC) – it is not even recorded as having been ‘paid for’ - and consequently does not appear on any GAC documentation. Much of these unofficial flows have come from increases in the oil fields shared between Iran and Iraq, so it is little wonder that both countries are working now to dramatically increase these further. There are many shared fields between the two countries, but the most notable ones are Azadegan (on the Iran side)/Majnoon (on the Iraq side), Azar (Iran)/Badra (Iraq), Yadavaran (Iran)/Sinbad (Iraq), Naft Shahr (Iran)/Naft Khana (Iraq), Dehloran (Iran)/Abu Ghurab (Iraq), West Paydar (Iran)/Fakka/Fauqa (Iraq), and Arvand (Iran)/South Abu Ghurab (Iraq). The new development initiative between Iran and Iraq will see predominantly local companies, many of which are closely affiliated to Iran’s Islamic Revolutionary Guard Corps (IRGC) or its Iraqi proxies, tasked with increasing the oil recovery yield from the smaller shared fields, while Russian and Chinese companies take the lead on the bigger fields. The idea behind using the local firms for the smaller fields is to allow them to develop their oil recovery techniques (with help from Russia and China) so that they can consistently average more than the 3.5 percent recovery rates that they have so far managed on sites they have been assigned. Just before sanctions were re-introduced on Iran in 2018, by comparison, a well-known Western oil firm produced a feasible plan to increase the recovery rates on a group of these smaller fields to over 12.5 percent within 12 months from starting (from the then-2.5 percent average), 20 percent a year after that, and then to around 50 percent within three years from then. The hope in Iran’s Petroleum Ministry is that by increasing the technical abilities of these local companies, they can be increasingly involved with developing the bigger fields, which would enable the Islamic Republic to reduce the discount on oil sold to China as part of the overall field development packages signed with its companies. The same hope is held for the bigger fields too, and the financial potential from even relatively small increases in the oil recovery rate are massive. Looking at just the shared fields in the exceptionally oil-rich cluster of fields in the West Karoun area - which comprises the fields of North Azadegan, South Azadegan, North Yaran, South Yaran, and Yadavaran, for example - these are conservatively estimated to contain at least 67 billion barrels of oil in place and, even more propitiously, have an average recovery rate currently of just 5 percent. This compares to average recovery rate across Saudi Arabia of at least 50 percent. “For every one percent increase in the average rate of recovery across West Karoun, the recoverable reserves figure would increase by 670 million barrels, or around US$34 billion in revenues, even if we were only to sell at US$50 a barrel,” the Iran source told OilPrice.com. “With the right joint development, an increase in recovery rate across the [West Karoun] sites to at least 25 percent over a 20-year contract period could be expected to add US$838 billion in revenues for Iran,” he added. Currently, West Karoun’s oil output averages around 360,000 barrels per day (bpd), with spikes to 380,000 bpd, compared to 120,000 bpd in 2017, according to the Iran source. A key part of the all-encompassing ‘Iran-China 25-Year Comprehensive Cooperation Agreement’, as first revealed anywhere in the world in my 3 September 2019 article on the subject and also analysed in full in my new book on the new global oil market order, was that Chinese firms increase the collective output from the West Karoun fields by at least 500,000 bpd. This should not be difficult, given that the average US$1-2 lifting cost per barrel of crude oil in Iran – a proxy for ease of extraction - is the same as in Saudi Arabia and Iraq. So far, though, no meaningful increases have been effected by Chinese firms, which may be another reason why Iran and Iraq want to increase the abilities of their own people in exploiting their enormous oil resources. The shared fields of Iran and Iraq have also been invaluable as the basis for Tehran’s highly successful efforts over the years to avoid oil sanctions from either the U.S. or Europe. The oil on the non-sanctioned Iraqi side of the border is often drilled from the same reservoirs as the oil drilled on the sanctioned Iranian side, sometimes even through long-distance horizontal directional drilling. Even if the Americans, Europeans, or any of their most trusted appointees stationed people at every single rig in every single shared field in Iraq they would not be able to tell if the oil coming out it was from the Iraq side or the Iranian side. So this has allowed for decades Iranian oil simply to be rebranded at source as Iraqi oil and shipped to wherever is required in the world. Other layers of complexity have been added to this to further obfuscate the true origin of the oil in question, as also analysed in full in my new book on the new global oil market order. One simple but very effective method is just to switch off a ship’s automatic identification systems (AIS) transponder, making the vessel much more difficult to track. Another involves simply lying about a ship’s final destination in the freight documentation and in the vessel’s voyage plan. This standard Iranian sanctions-avoidance measure was openly acknowledged in 2020 by its former Petroleum Minister, Bijan Zanganeh, when he said: “What we export is not under Iran’s name. The documents are changed over and over, as well as [the] specifications.” Additionally, transfers at sea in territorial waters of Malaysia and Indonesia have proven another popular way for Iran to move oil ultimately to China. As Iran’s then-Foreign Minister, Mohammad Zarif, stated in December 2018 at the Doha Forum: “If there is an art that we have perfected in Iran, [that] we can teach to others for a price, it is the art of evading sanctions.”  In any event, following the recent meeting of Iran’s Petroleum Minister, Javad Owji, and his Iraqi counterpart, Hayan Abdel-Ghani, the development of these shared oil fields is to be expedited, with further meetings scheduled in the coming month to task individual local firms with new awards to do so. These discussions will also include finalising corollary details such as the further development of required infrastructure, methods to move money related to these developments, and how to monetise gas produced at the oil fields, according to the Iran source. By Simon Watkins for Oilprice.com

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Iraq Is Yet to Amend Budget to Get Kurdish Oil Flowing Again

Oil Minister Hayyan Abdul Ghani said that the Iraqi government is still studying a proposed amendment to the federal budget that would enable Baghdad to pay international oil companies working in the Kurdistan region. The change would allow producers in the semi-autonomous region to resume output — and eventually exports via the Turkish port of Ceyhan. Turkey shut the pipeline bringing crude from Kurdistan last March, and that’s resulted in billions of dollars of lost revenue for the governments and companies involved. A key hurdle to restarting flows is the production cost of Kurdish oil. Prime Minister Mohammed Shia Al-Sudani in December put that cost at $21 a barrel, compared with just $8 in other regions of Iraq. “We seek to accelerate the settlement of the cost issue and resume exports as soon as possible,” Bloomberg quoted the Minister. The Oil Ministry hopes to review and amend contracts signed between the Kurdistan Regional Government and the international companies, he said. Turkiye closed the pipeline after an arbitration court ordered it to pay Iraq $1.5 billion in compensation for transporting oil through the link without Baghdad’s approval. Ankara, which claimed the pipe was shut for repairs, said in October it was ready for operations and it was up to Iraq to resume flows. Turkish President Recep Tayyip Erdogan is due to visit Baghdad next month, which may help resolve other sticking points, including the fine. Abdul Ghani told Bloomberg that Iraq is keen to restart exports through Ceyhan and to maintain strong economic ties with Turkiye.

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