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At least nine killed after Iran launches airstrike against Kurdish group bases in KRI

An Iranian drone bombing campaign targeting the bases of an Iranian-Kurdish opposition group in northern Iraq on Wednesday killed at least nine people and wounded 32 others, the Kurdish Regional Government’s Health Ministry said. On the fifth consecutive day of bombardment, Iran targeted the opposition Kurdistan Freedom Party (PAK), the Kurdistan Democratic Party of Iran (KDPI), the Free Life Party of Kurdistan (PJAK), and Komala in both Sulaimani and Erbil provinces. The bombardment is ongoing. Iraq’s Foreign Ministry and the Kurdistan Regional Government have condemned the strikes. The Islamic Revolutionary Guard Corps (IRGC) said "Fateh-360 missiles and suicide drones” were used in the attacks, Iranian state media reported. The strikes took place as demonstrations continued to engulf the Islamic Republic after the death of Mahsa Amini, a 22-year-old Iranian Kurdish woman who was detained by the Iranian morality police.  

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The Kurdistan Region's oil revenue in the first half of 2022 was $6.85 billion

Draw Media # The Kurdistan Region sold 72 million barrels of oil through pipelines in the first six months of this year, worth $6.805 billion # Oil revenue in the first quarter (3 billion 63 million) dollars and in the second quarter (3 billion 789 million) dollars # Oil sales revenue increased by $726 million in the second quarter. # Revenue from oil sales to refineries decreased by (168%) and the amount of (21 million 609 thousand) dollars. # Oil processing costs increased by 2.5% from 56% to 58.5%. # Returns to the KRG treasury increased by $228 million and 144 thousand compared to the first quarter.   Comparison of Kurdistan Regional Oil in the first and second quarters of 2022 1. Difference in oil sales in the first and second quarters of 2022 The Kurdistan Regional Government (KRG) sold 34 million 932 thousand 168 barrels of oil through pipelines in the first quarter of this year, but in the second quarter it sold 37 million 618 thousand 577 barrels of oil through pipelines. Accordingly, in the second quarter sold (2 million 686 thousand 409) barrels more compared to the first quarter. However, the amount of oil sold to domestic refineries in the first quarter was (409 thousand 37) barrels and in the second quarter was (237 thousand 475) barrels of oil, Accordingly, the amount of (171 thousand 562) barrels sold to the domestic refineries, which means (42%) less. 2. The difference in oil prices in the first and second quarters of 2022 The total value of oil sold through the pipeline in the first quarter of 2022 was $3 billion 28 million 903 thousand However, the total value of oil sold through the pipeline in the second quarter of 2022 was $ 3 billion 776 million 446 thousand. Accordingly, oil revenues increased by $747 million 542 thousand 754 in the second quarter compared to the first quarter. Revenue from oil sales to domestic refineries in the first quarter of 2022 was $34 million 453 thousand 394, but in the second quarter the value fell to $12 million 844 thousand 28. It decreased by 168% and 21 million 609 thousand 366 dollars.

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KRG oil output could halve without investment: Govt documents

BY REUTERS Oil production in the semi-autonomous Kurdistan Regional Government (KRG) within Iraq could almost halve by 2027 if there is no new exploration or major investment in the sector, government documents seen by Reuters showed. A steep decline in oil revenue, a lifeline for the KRG, would compound the economic woes of a region already struggling financially within an unstable Iraq, diplomats, officials and energy experts said. According to the documents, the KRG oil output could rise to 580,000 barrels per day (bpd) in five years' time under a scenario in which investment is fully optimized, leaving 530,000 bpd available for export. But without new investment, the region might only have 240,000 bpd available to export as older wells become depleted, the documents, which have not previously been reported, show. "It is very dangerous," said KRG parliamentarian Karwan Gaznay, who is a member of the region's oil and gas committee. "We should be alarmed by it, but it will not be a real issue if we sort out our problems with the Iraqi government, then Kurdistan can develop new blocks and increase production. We have a lot of reservoirs," he said. The KRG did not respond to a request for comment. Under the Iraqi constitution, the region is entitled to a portion of the national budget. But the arrangement collapsed in 2014 when the Kurds seized control of Iraq's main northern oilfields in Kirkuk from Daesh and began selling crude from there independently. In 2018, Iraqi forces retook disputed territories, including the oil city of Kirkuk, and Baghdad resumed some budget payments but they have been sporadic. So far this year, it has sent two payments of 200 billion Iraqi dinars ($137 million). Natural decline KRG's debt currently stands at about $38 billion, according to a government official, and lawmaker Gaznay said oil exports accounted for 85% of the region's budget. The KRG's financial position has improved this year thanks to surging oil prices following Russia's invasion of Ukraine but a steep decline in output would significantly increase its fiscal constraints. The region's oil output has already slipped from about 468,000 bpd in 2019 to 445,000 last year and 434,000 in the first quarter of 2022, according to reports by Deloitte. "The reason that the current oil production is going down is due to the inability of the ministry of natural resources to bring timely additional investment online to overcome the natural decline of 15% to 20% each year in production for each well," a source in the KRG said. The government documents said falls in output at three major oilfields – Tawke, Khurmala and Taq Taq – are the main reason for decline. The potential slide in the Kurdish region's oil output makes it important for the government to boost gas production, but a project to expand one of the biggest fields in Iraq has been suspended due to security concerns. The oil in the region comes from drilling into fractures in limestone rocks. This initially results in high yields, but aggressive levels of production can rapidly drain the fractures and lead to water flooding in, energy experts said. Rising water levels in several fields, including Taq Taq, have made it harder to access the oil, according to a government official and energy experts, who put the rapid depletion of the wells down to bad management and the challenging geology. Energy experts and industry sources say attracting more investment could save the region from sliding into insolvency, but the difficult investment climate is getting in the way. "There is some field expansions, which are slow. Companies are finding it hard to get approvals and there haven't been significant new discoveries for several years now," said Robin Mills, chief executive of consultancy Qamar Energy. "Without big new developments they risk going into decline in the near future," he said. Oil sector setbacks The Kurdish region has proven oil reserves of less than 3 billion barrels at most, based on the most optimistic forecast, according to the KRG source, only a tiny fraction of Iraq's overall proven reserves of more than 140 billion barrels. And the region's energy sector has faced a number of recent setbacks. An Iraqi Federal Supreme Court ruling in February deemed the legal foundations of the oil and gas sector in the region to be unconstitutional, forcing some foreign firms, including U.S. oilfield services companies Schlumberger, Baker Hughes and Halliburton, to leave. The upcoming decision in an arbitration case dating back to 2014 between Türkiye and Iraq about the oil export pipeline that runs between the two countries is also sending ripples of uncertainty through foreign firms still in the Kurdish region. Iraq claims Türkiye has violated an agreement by giving the Kurdish region access to the pipeline without Baghdad's approval. The final hearing at the International Chamber of Commerce in Paris was in July and there will be a final decision in the next few months, according to Iraq's oil ministry and sources familiar with the matter. Foreign oil investors first came to Kurdistan in the era of former Iraqi President Saddam Hussein, when the region was considered more stable and secure than the rest of Iraq. But the region's star has started to fade, with the big foreign firms deterred by tensions between the region and the central government in Iraq, a string of downgrades to Iraqi Kurdistan's oil reserves and security problems. Now the region only has a handful of small and medium-sized operators, many of which complain about the difficult operating environment. If the investment environment does not improve KRG risks further withdrawals. "(Kurds) are living a dream and don't want to wake up," the KRG source said.

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US and KRG signed an agreement

Draw Media Celeste Wallander the US Assistant Secretary of Defense for International Security Affairs signed MoU with the (KRG) today. A statement by the KRG said that the memorandum of understanding is to support the Peshmerga forces and develop security and military cooperation. According to the agreement, the US will be responsible for training and arming the Peshmerga forces for five years, in exchange for the reunification of the Peshmerga forces and no forces will remain outside the Peshmerga Ministry.  The United States and its allies are currently providing 28 billion dinars monthly to the Kurdistan Peshmerga forces for salaries, besides the other aids for logistics, fuel, food and arming.  

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Pirmam: The meeting of Barzani and Bafel Talabani

Draw Media The meeting is expected to make an important decision on how to participate in the new Iraqi cabinet and how to manage the Kurdistan Region by both parties. The KDP and PUK have held several meetings in Baghdad in the past 10 days, according to Bangin Rekani, a member of the KDP negotiating delegation. The two parties disagree on the post of president, the sixth session of parliamentary elections and the government's financial administration. While the KDP wants to revive the “united Kurdish front” in Baghdad with the PUK, but just as the first round of negotiations after the October 10, 2021 elections, once again the KDP alone and without the PUK has prepared a draft for negotiations with the parties within the framework of coordination and agreed on most of the provisions of the draft with the Shiites. The PUK, which was on the front line of the coordination framework parties in the first round of conflicts, according to the information, one of the PUK’s condition in the talks is the post of Kirkuk governor, but the KDP has not yet agreed to this condition. In the agreement to form the ninth cabinet, the PUK had made it a condition for the KDP to take back the post of governor of Kirkuk, but this condition has not yet been implemented. Some blame the president, while others say Turkey has not agreed. Some KDP officials say the current talks between the PUK and the KDP could lead to a new strategic agreement similar to the 2005 agreement.  

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Masoud Barzani and Bafel Talabani expected to meet in Pirmam

Draw Media Masoud Barzani, president of the Kurdistan Democratic Party (KDP) and Bafel Talabani, leader of the Patriotic Union of Kurdistan (PUK) will meet tomorrow to reach a final agreement on the post of president and discuss several internal issues. According to the information obtained from the PUK leadership council meeting today, Bafel Talabani, the leader of the PUK, said that he will go to Pirmam tomorrow and meet with Massoud Barzani, the leader of the Kurdistan Democratic Party (KDP). This may be the last meeting to agree on the issue of the presidential candidate and the Kurdish share in the new Iraqi government, especially the Arbaeen anniversary of Imam Hussein has ended, the KDP and Sunnis have officially expressed their support for the formation of a new government. This is in addition to deciding on several other issues related to the Kurdistan Region, including the issue of the sixth session of the Kurdistan Parliament elections and the constitution of the region. A senior Kurdish official told the Sharq al-Awsat newspaper yesterday that the PUK and KDP are close to a final agreement, which is comprehensive and does not only cover the issue of the president. They want to rebuild a "united Kurdish front" in Iraq, with some talking about signing a "new strategic" agreement between the two parties similar to the 2005 agreement that was canceled after the death of PUK Secretary Jalal Talabani. Iraqi parties are expected to resume talks to form a new cabinet after the Arbaeen Anniversary of Imam Hussein. There are rumors that the parties of the coordination framework held behind-the-scenes talks with Sunnis and Kurds during the Arbaeen anniversary of Imam Hussein. Sadr, who called on Barzani and Halbusi to withdraw from parliament before the Arbaeen anniversary of Iman Hussein, received a negative response. Barzani and Halbusi announced their support for the continuation of parliament and the formation of a new cabinet in Iraq. Sadr has not yet responded to Barzani and Halbusi's message, but the message gave a strong impetus to the parties in the coordination framework.

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TotalEnergies closes divestment of 18% interest in Kurdistan's Sarsang oil field

Draw Media TotalEnergies has completed the divestment of its 18% interest in the onshore Sarsang oil field in the Kurdistan region of Iraq, to ShaMaran Petroleum, for a firm consideration of $ 155 million. ShaMaran’s president Adel Chaouch called the acquisition a “momentous day for ShaMaran.” “Dr. Adel Chaouch, President and Chief Executive Officer of ShaMaran stated, “This is a momentous day for ShaMaran as with this acquisition (effective date of January 1, 2021) we have transformed ShaMaran from being a single asset company into one owning a portfolio of stakes in three world class producing oil fields (Atrush, Swara Tika and East Swara Tika) in Kurdistan with improved oil qualities and complementary production horizons.” TotalEnergies share of production was around 3,5000 barrels per day in 2021, according to numbers published by the company. “The Sarsang field, discovered in 2011, is operated by HKN (62%), with KRG owning a 20% interest. TotalEnergies' share of production was around 3,500 barrels per day in 2021.” In Iraq, TotalEnergies started its activities in the 1920s with the discovery of Kirkuk field. The company currently has a 22.5% interest in the Halfaya oil field. TotalEnergies’ production in Iraq is about 14 000 boe per day in 2021. In September 2021, TotalEnergies signed major multi-energy agreements in Iraq covering the construction of a new gas network and treatment units, the construction of a large-scale seawater treatment unit and the construction of a 1 GW photovoltaic power plant. A February ruling by Iraq’s top court against the Kurdistan Region’s authority to administer its energy resources has cast insecurity on the legitimacy of international oil companies (IOCs) operating in the Region. The court found the Region’s oil and gas law to be “unconstitutional,” therefore striking down the legal basis for the independence of the Region’s oil and gas sector.  

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Production capacity in Sarsang oil field in the first half of 2022

HKN Energy Ltd. (“HKN”) presents an operating and financial update for the six months ended 30 June 2022. HKN holds a 62% PSC interest in the Sarsang Block in northern Kurdistan. Highlights • Revenue during 1H 2022 increased 80% from 1H 2021 due to a 74% increase in realized oil price and a 3% increase in oil sales volumes. • 1H 2022 production averaged 29.7k bopd compared to 28.9k bopd in 1H 2021; Sarsang cumulative production reached 47.6 million barrels as of 30 June 2022. • HKN received cash proceeds from oil sales of $178.0 million during 1H 2022, with an additional $33.6 million received in July 2022. During 1H 2022, we have received payments for oil sales an average of 80 days after invoice. Our current Oil Sales Agreement with the Kurdistan Regional Government (“KRG”) has a stated 60-day payment term. • During 2022, the KRG began adjusting the sales price for HKN's oil exports to account for increased costs to access and transport oil through the Iraq Turkey Pipeline. As a result, HKN's cash receipts for oil sales have been 2-3% lower than amounts invoiced to the KRG. HKN remains in discussions with the KRG on appropriate transportation differentials to be incorporated into its crude oil sales price. • Cash balance plus short-term U.S. Treasury investments on 30 June 2022 was $292.4 million, including restricted cash of $10.7 million. • Total investment since 2007 by HKN and its co-venturers exceeds $1.9 billion. o Approximately $4 billion contributed to the region’s GDP over 15 years. o 59,000 local jobs supported in 2021. • The 3D seismic acquisition project covering the western part of Swara Tika commenced in February 2022 and is planned to conclude in Q3 2022. We are evaluating the timing of the 3D seismic program on East Swara Tika. Notes: (1) Net based on 62% PSC interest. (2) Capex is shown on a cash basis. (3) Free Cash Flow is net cash generated from operating activities less cash outflow for capital expenditure. Free Cash Flow is before debt costs and dividends. (4) Face value of debt.   Outlook • We continue to closely monitor the business environment including timeliness of oil sales payments and are prepared to look aggressively at CAPEX reductions if we lose confidence in collecting future payments. This approach could have a negative impact on future production but reflects our prioritization of capital preservation. • HKN reiterates its 2022 gross production guidance for the Sarsang block: o 27k-30k bopd until first oil from the new 25k facility. o 45k-50k bopd following commissioning and optimization of the new 25k facility. o The EST-A1 well recommenced production in August 2022; we are currently optimizing production from the East Swara Tika facility. • The new 25k bopd facility on Swara Tika remains on target for first oil in September 2022. o Over the next 30+ days we will commission the facility, tie-in 5 previously drilled wells, conduct flow testing and then optimize production rates. o Total project cost of approximately $110 million (net to HKN) with 79% spent to date. o Export pipeline tie-in remains on track to align with completion of the 25k bopd facility. • We spudded the ST B8 well in the beginning of August and we expect to drill the additional ST B9 well immediately thereafter; these 2 wells will help maintain production plateau at both pad B production facilities. • We are lowering our 2022 CAPEX guidance to $140 – $150 million (net to HKN) as we expect to defer at least a portion of the East Swara Tika 3D seismic acquisition to 2023. • In August 2022 HKN declared and paid a $150 million dividend. HKN remained in a net-cash position following payment of the dividend.

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KRG announced its expenditure and revenue for the past three years

Draw Media The total revenue of the (KRG) in the past three years was 46.3 trillion dinars, while the total expenditure was 49.9 trillion dinars, said spokesman Jutiar Adel. Total revenue of the KRG in the past three years: The total revenue of the (KRG), which includes oil, non-oil, Iraqi government and coalition funding, was 46.3 trillion dinars. Total expenditure of the KRG in the past three years: The total expenditure of the (KRG), which includes salaries, oil expenditures, operation, investment and rent of power plants, as well as repayment of some debts, was 49.8 trillion dinars. Regarding the total revenue from oil sales, 55% of the revenue was spent on production, export, storage and transportation, and 45% returned to the government treasury as net revenue. Project expenditures during the past three years The ninth cabinet of the Kurdistan Regional Government (KRG) has spent 840 billion dinars on 884 projects in the past three years. - In 2019, 243 billion dinars. - In 2020, 151 billion dinars. - In 2021, 446 billion dinars was spent on projects. Expenditure by Sector: Roads: 392 billion Municipalities: 282 billion Electricity: 25 billion Silos (Agriculture): 37 billion Education: 26 billion Housing: 25 billion Dams: 22 billion Other sectors: 31 billion About the Investment Board: Kurdistan Regional Government (KRG) spokesman said: in addition to the projects carried out by the government itself, the (KRG) has licensed several projects in the investment sector to create job opportunities for the citizens of the Kurdistan Region through the private sector and more than 120,000 jobs have been created directly through this project, as follows: First year: In the first year of the ninth cabinet of the Kurdistan Regional Government, the Investment Board licensed 43 projects with a capital of $ 902 million on ​​875 dunams of land in the following sectors: 1. Industry: 12 projects with a capital of $357 million. 2. Housing: 5 projects with a capital of $375 million. 3. Education: 7 projects with a capital of $44 million. 4- Tourism: 6 projects with a capital of $30 million. 5- Sports: 3 projects with a capital of $30 million. 6. Commerce: 6 projects with a capital of $43 million. 7- Health: 3 projects with a capital of $20 million. 8- - Agriculture: 1 project with a capital of $3 million. Second year: In the second year of the Investment Board has licensed 87 projects with a capital of 7 billion 304 million dollars on ​​7075 dunams of land in the following sectors: 1. Industry: 29 projects with a capital of $1.13 billion. 2. Housing: 4 projects with a capital of $430 million. 3. Education: 5 projects with a capital of $26 million 4. Tourism: 15 projects with a capital of $5.6 billion. 5. Sports: 1 project with a capital of $2 million 6. Business: 19 projects with a capital of $309 million. 7. Health: 6 projects with a capital of $53 million. 8. Agriculture: 5 projects with a capital of $227 million. 9. Art: 1 project with a capital of $9 million. 10. Services: 2 projects with a capital of $58 million. Third year: In the third year of the ninth cabinet of the Kurdistan Regional Government, licenses were given to 64 projects with a capital of 2 billion 945 million on ​​2221 dunams of land in the following sectors: Industry: 14 projects with a capital of $204 million. Housing: 3 projects with a capital of $248 million Education: 7 projects with a capital of $38 million. Tourism: 8 projects with a capital of $2.34 billion. Sports: 3 projects with a capital of $7 million. Business: 22 projects with a capital of $243 million Health: 3 projects with a capital of $19 million. Agriculture: 2 projects with a capital of $133 million. Banks: 2 projects with a capital of $19 million The total capital invested in the investment sector over the past three years was $11.15 billion.    

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The capacity of the KRG's oil refineries to produce gasoline

Draw Media # There are about 1.9 million vehicles in the Kurdistan Region, of which 51% are in Erbil, 34% in Sulaimani and 15% in Duhok. # The Kurdistan Region needs (5 million) liters of gasoline daily, Erbil (2.5 million), Sulaimani (1.6 million) and Duhok (754 thousand) liters of gasoline. # Kurdistan Regional Government (KRG) oil refineries can produce more than 8.6 million liters of gasoline per day if they use all their capacity and are given crude oil. # The crude oil supplied by the Kurdistan Regional Government to the refineries in the first three months of this year, the average daily was (3.9 million) liters, (21%) of gasoline produced, which only (835 thousand) liters and that is only (17%) of domestic demand. first; Number and type of vehicles, Gasoline requirements in the provinces of the Kurdistan Region According to the statistics of the General Directorate of Traffic of the Kurdistan Region, there are more than (1 million 915 thousand) vehicles in the three provinces of the Kurdistan Region. In addition to (19,000) vehicles without license plates and vehicles of the Ministry of Peshmerga that are not registered in the statistics. Most of these vehicles run on gasoline and a small part on diesel. According to former Minister of Natural Resources Kamal Atroshi, the Kurdistan Region needs 5 million liters of gasoline daily, of which only about 1 million liters produced domestically and the rest is imported. If the Kurdistan Region needs (5 million) liters of gasoline daily, then Erbil province will need (2 million 571 thousand 409) liters of gasoline daily, Sulaimani province needs (1 million 674 thousand 609) liters of gasoline and Duhok province needs (753 thousand 981) liters of gasoline daily. second; The capacity of the Kurdistan Regional Government's oil refineries to produce gasoline Currently, there are four official refineries in the Kurdistan Region, together they have the capacity to refine 256,000 barrels of crude oil daily to produce fuel and energy needs. 1. Kar refinery (Kalak or Keurgosk) 2. Bazian Refinery 3. Lanaz Refinery 4. Tawke Refinery However, it should be noted that the crude oil refined in the Kurdistan Region generally produces 21.23% of gasoline per barrel - relatively and can vary according to the type of oil. Therefore, all the oil refineries in the region, which are (4) refineries, if they work at their full capacity and refine (256,000) barrels of crude oil per day - if a barrel of crude oil is (159) liters - as identified in the World Standard_ the refineries will have the capacity to refine 40 million 704 thousand liters of crude oil per day, of which if 21.23% of their production is gasoline, it means that they can produce 8 million 641 thousand 459 liters of gasoline. That is 3 million 641 thousand 459 liters more than the domestic demand. Third; KRG support for oil refineries to meet domestic needs According to the latest Deloitte oil audit report published in July 2022, the Kurdistan Regional Government (KRG), in the first three months of this year, has delivered only 2 million 226 thousand 83 barrels of crude oil were to refineries. Which means, it has delivered 24,734 barrels of crude oil daily to the refineries. If each barrel of crude oil is 159 liters according to international standards, the subsidy is 3 million 932,747 liters of crude oil If 21.23 percent of the gasoline is produced in the refineries, only 834,922 liters will remain to meet all domestic needs, which is less than one-fifth and meets 17 percent of demand.

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U.S. Assistant Secretary of State: Oil and Gas issue does need to be sorted

Draw Media U.S. Assistant Secretary of State for Near Eastern Affairs Barbara Leaf met with representatives of a number of media outlets. In response to Draw Medi’s question about the deepening disputes between the Kurdistan Region and Baghdad on the oil and gas issues and the role of the United States on this matter, she said “There have been substantial tensions in these last months. Over the course of 20 years of watching Iraq, there are many unresolved issues and this is one of the most important one, obviously. It really does need to be sorted. Sorted in a way that provides stability of planning and participation for the American oil firms or any others and service companies. It’s quite critical to the functioning of the KRG’s fields. So, our good advice I think is best provided in private.” Leaf discussed the recent violence in Baghdad, U.S. support for Iraqi sovereignty, stability, and security, a national hydrocarbons law, and a political settlement, all based on meaningful compromise and dialogue. She strongly encouraged all Iraqis, including the people of the IKR, to vote at every opportunity, remarking that this is the best way for citizens to take control of their government. Leaf also noted an erosion of the climate in which journalists exercise their responsibility to the public, and told the media representatives that we raise this issue frequently in our meetings with government officials.    

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Religious leader or politician: What does Muqtada al-Sadr really want?

Draw Media Dana Taib Menmy-  Iraq Analysis: Muqtada al-Sadr has been an influential figure in Iraqi politics for years, vowing to withdraw from political life multiple times only to return once again. Iraq is now experiencing an ominous calm before the next expected escalation between supporters of Shia cleric Muqtada al-Sadr and his Iranian-backed Shia rivals, who have been at the centre of the country's political stalemate for years. Iraq is now experiencing an ominous calm before the next expected escalation between supporters of Shia cleric Muqtada al-Sadr and his Iranian-backed Shia rivals, who have been at the centre of the country's political stalemate for years. Sadr, in a tweet on 29 August, unexpectedly announced his "final" retirement from politics, causing his supporters to take to the streets in Baghdad’s fortified Green Zone, as well as across central and southern Iraqi provinces.  His announcement turned the Green Zone - home to government buildings and embassies - into a battlefield, as Sadr supporters used machine guns, Rocket Propelled Grenades (RPG), and Katyusha rockets in pitched battles against their rivals, including former paramilitaries of the Iran-backed Al-Hashd Al-Shaabi network and the party of former prime minister Nouri Al-Maliki, a longtime foe of Sadr. "The recent violence in Iraq really demonstrated Sadr's power and ability to incite a civil war in the short-term" More than 30 people were killed and hundreds were injured. The fighting ended the next day with a call from Sadr to his fighters to cease fighting and withdraw from the area. “The violence escalated, Sadr gave 24 hours to his supporters to act without his instructions and needed to end it as it looked like the Sadrists were the outlaws attacking the state," Sajad Jiyad, a fellow at the Century International for Research and Policy, told The New Arab.  "It is possible this was a planned provocation and, in any case, he showed the power of his group and nothing more was to be gained.” During a press conference, Sadr went on to say that both those killed in the clashes and the killers "were in hell", with others speculating about whether the Shia cleric had ambitions of replacing Iraq's Grand Ayatollah Sayyid Ali Al-Sistani. RELATED The Iraq Report: Sadr at the heart of Iraq's political chaos Iraq Report The New Arab “Sadr was disappointed that his group resorted to such open violence and wanted to distance himself from it, which is why he blamed the killer and those killed for engaging in violence," Jiyad told TNA. "I think he cares very much about his image and religious legitimacy and does not want to be seen like any other political leader, which is natural as he is a cleric too.” Iraq’s political crisis is now in its 11th month after the country went to early elections on 10 October 2021 in which Muqtada al-Sadr's bloc won a majority with 73 seats. Sadr tried to form a 'national majority' government with several Sunni and Kurdish blocs, mobilising against pro-Iran Shia blocs organised under the Coordination Framework (CF). More than 30 people were killed and hundreds injured in clashes between Shia rivals last month. [Getty] Frustrated in his efforts to fulfil his promise to his supporters, however, Sadr ordered lawmakers from his bloc to resign, which all his MPs did on 12 June. The CF replaced Sadr's MPs with their own, becoming the biggest bloc in the Iraqi parliament. They vowed to form a consensus government that would include all the Sunni and Kurdish blocs. Iraqi analysts have told The New Arab that Sadr had made a mistake by withdrawing from the parliament and choosing to confront his rivals in the Iraqi streets and through his Saraya al-Salam and Al-Mahdi Army militias. Sadr, claiming to be a reformist, insists that the Iraqi parliament should be dissolved by the country’s Supreme Federal Court, and snap elections be held again. But the CF insists that the parliament should convene to elect a president, form a consensus government, amend the country’s election law, and then vote to dissolve itself. "Muqtada al-Sadr is interested in becoming the most powerful figure in Iraq, both politically and spiritually, and all of his moves are framed by his want to do so" Where is Iraq going? There are now several different scenarios for Iraq, including the possibility of snap elections, which even Iraq's President Barham Salih has voiced support for. "The trouble is that an election is actually unlikely to change anything on the ground, it could even make things worse, whilst only temporarily abating the different factions,” Shayan Talabany, an analyst at the Tony Blair Institute (TBI) focused on Iraq’s politics, told TNA. “Iraq’s last election had the lowest voter turnout in any election since 2003. With the recent violence, there are different dynamics that could play out in terms of voting. Some Iraqis could feel more encouraged to vote, which could be a source of optimism, as a large population of Iraqis would rather vote for those not currently in government,” Talabany said. RELATED The Iraq Report: Night of violence reveals grave instability Iraq Report The New Arab “Another very likely scenario is that Iraqis will be even more frustrated with the political process and not even vote, particularly if they feel that even when alternative parties do gain votes (such as in October 2021) these results are overridden by the traditional parties who are squabbling for power,” she added. “The real issue is that the political process of forming a government, the outbursts of violence, and the continuous back and forth between the different factions engaged in a power struggle have the ability to prolong the political process even further. This could quickly become very dangerous, given the ability of more regressive forces, such as Muqtada al-Sadr’s followers, to mobilise so quickly. The recent violence in Iraq really demonstrated Sadr’s power and ability to incite a civil war in the short-term.” She also cautioned that there is a high possibility that public anger and frustration could rise and potentially explode if the country’s needs and its people’s demands are further ignored. Sadr’s withdrawal from politics has also once again raised the question of whether he wants to be Iraq’s next Shia religious Marjaeya, replacing al-Sistani. Sadr's withdrawal from politics has once again raised the question of whether he wants to be Iraq’s next Shia religious Marjaeya. [Getty] “I think Muqtada al-Sadr is interested in becoming the most powerful figure in Iraq, both politically and spiritually, and all of his moves are framed by his want to do so. On the political front, the trouble is that Iraq’s system structurally prevents a single or central concentration of power, especially since former Prime Minister Noori al-Maliki was removed. We have seen this play out since the October 2021 elections,” Talabany said. “On the religious or spiritual front: Sadr does not have the qualifications nor calibre religiously to replace al-Sistani. The danger is however that Sadr thinks he can or should achieve both these pillars of authority. What Sadr wants and what is actually feasible, at least under the current circumstances, is therefore quite different.” Regarding the scenario that the US might fully withdraw from Iraq as it did in Afghanistan last year, Talabany ruled out such a possibility, given how different the situation in both countries is. "Sadr does not have the qualifications nor calibre religiously to replace al-Sistani. The danger is, however, that Sadr thinks he can or should achieve both these pillars of authority" “It is difficult to make the argument that Iraq is the centre of international interest. I think that apart from Iraq’s current important role as a major oil exporter during times of low energy supply, there is international fatigue with Iraq,” she said.  “There is a lot of international interest in Iraq that is solely centred on Iran. It is worrying to hear the large number of voices that seem very willing to allow Iraq to regress, for the sake of countering Iran, which is itself a really impractical and narrow-sighted way of viewing the country and its relationship with its neighbours,” Talabany added. "At the same time, if Iraq wants to be taken seriously, it has to maintain its security so that it can move on and attract positive attention and not just negative attention by being a security threat – but right now that seems quite unlikely.”  

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Iraq and the Kurdistan Region sold 112 million barrels of oil in August

Draw Media The Iraqi government sold 101 million barrels of oil, while the Kurdistan Region sold 11 million barrels of oil in last month. In August 2022, Iraq and the Kurdistan Region both together exported more than 112 million 600 thousand barrels of oil. The Kurdistan Regional Government exported 11 million 500 thousand barrels and the Baghdad government exported 101 million 100 thousand barrels. The country exported a total of 3 million 630 thousand barrels per day. The Kurdistan region's exports were 10.2% of the total oil exports. China was the top buyer of federal oil with 33.6 million barrels, followed by India with 26.3 million barrels and the United States with 6.8 million barrels. Greece was the largest buyer of oil in the Kurdistan Region, followed by Italy with 2.29 million barrels and the UAE with 748,000 barrels.

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Kurdistan Regional Government Revenue for August

Draw Media                                                 The total revenue of the Kurdistan Regional Government (KRG) in August after excluding oil expenditures was (970 billion) dinars, while oil revenue was (1 trillion 480 billion) dinars, of which (830 billion) dinars went for expenditures and (650 billion) dinars remaining for the government. summary Non-oil revenues • Non-oil revenues for August = (287 billion) dinars (according to the latest statements of the Minister of Finance) • Coalition financial aid to the Peshmerga forces = (31 billion 500 million) dinars • Kurdistan Region's share of the Iraqi budget = (0) dinars Oil revenues (pipeline exports) • In August 2022, the Kurdistan Region exported 11 million 560 thousand barrels of oil through Turkey. • The average price of Brent oil for August is $100.45 • Because the region sells its oil at $12 less, it sells oil at an average of $88.45 So: (11 million 560 thousand) barrels X (88.45) dollars = (1 billion 22 million 482 thousand) dollars. • According to the latest Deloitte report, 56% of oil revenues go to the production companies and 44% remains for the Ministry of Natural Resources. - So: (1 billion 22 million 482 thousand) dollars X (56%) = (572 million 589 thousand 920) dollars go to the cost of the oil process. - (1 billion 22 million 482 thousand) dollars X (44%) = (449 million 892 thousand 80) dollars of revenue remaining for the KRG.

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Investment recession in the PUK controlled areas

Draw Media # In the three years of the ninth cabinet, 206 investment projects worth $11.6 billion have been licensed. # In the KDP controlled areas (yellow zone), (136) projects with a percentage of (66%), in the PUK controlled areas (green zone), (70) projects with a percentage of (34%), received licenses. # The amount of capital invested in the yellow zone was $9.5 billion with a percentage of (82%), while in the green zone it was $2.1 billion with a percentage of  (18%). first; Investment projects in the ninth cabinet of the Kurdistan Regional Government According to the data of the Media and Information Office, the ninth cabinet of the Kurdistan Regional Government since its inauguration from (July 28, 2019 to June 27, 2022), in all sectors, especially the public service sector has carried out special investment projects. With a capital of (11 billion 629 million 355 thousand) dollars on an area of ​​(10 thousand 824) acres of land in different parts of the Kurdistan Region, most of these projects have been carried out by local investors. During this period, 206 investment projects with a capital of 11 billion 629 million 355 thousand dollars have been licensed on an area of 10 thousand 824 dunams of land in different parts of the Kurdistan Region, most of these projects have been carried out by local investors. Second; Total projects by province and autonomous administrations The Kurdistan Regional Government (KRG) has approved 206 projects in different sectors in the ninth cabinet Erbil Province  Erbil province has received 88 projects with a capital of 8 billion 911 million 758 thousand 113 dollars and the projects have been carried out on an area of ​​4 thousand 864 dunams. Sulaimani Province Sulaimani province comes in second place with (53) projects with a capital of (1 billion 594 million 915 thousand 213) dollars on an area of ​​(1 thousand 928) dunams. Duhok Province  In Duhok province, 48 projects have been implemented with a capital of 598 million 413 thousand 798 dollars on an area of ​​2 thousand 760 dunams of land. Halabja Province In Halabja province, one project with a capital of (6 million 846 thousand) dollars on an area of ​​(7) dunams of land has been licensed. Garmian Independent Administration  In Garmian Autonomous Administration (11) projects with a capital of (391 million 992 thousand 439) dollars and on an area of ​​(1 thousand 143) dunams of land have been carried out. Independent Administration of Raperin In Raperin Autonomous Administration, five projects have been carried out at a cost of $125 million 429 thousand 481 on an area of ​​119 dunams of land. third; Total projects by zone In the ninth cabinet, 206 investment projects with a capital of 11 billion 629 million 355 thousand 44 dollars have been approved. In the yellow zone (Erbil and Duhok) (136) projects with a percentage of (66%). In the green zone (Sulaimani, Halabja, Garmian and Raperin) (70) projects a percentage of (34%) have received licenses. The amount of capital invested in the yellow zone (9 billion 510 million 171 thousand 911) by (82%), in the green zone (2 billion 119 million 183 thousand 133) dollars by (18%).    

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