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The value of Kurdistan's oil; exporting through SOMO or independently

Draw media In 2021, the KRG has sold 151 million barrels of oil, with only 25 dollars per barrel remaining, the total will be 3.8 billion dollars. While, if the same amount of oil were exported through The Iraqi National Oil Marketing Company SOMO, it would have earned nearly three times as much revenue, in a way that would have been 10 billion dollars revenue. How? More details are available in this report. First: The difference in the value of Kurdistan's oil; exports through SOMO or independently (before excluding expenditures) According to the information, in 2021, the KRG has exported 151.2 million barrels of oil through the Turkish port of Jayhan. The average price of Brent oil per barrel in 2021 was 71 dollars. While the Kurdistan Region’s oil is sold for 10 dollars less than the price of crude oil, The average price of oil per barrel of KRG oil was 61 dollars. So, the KRG's total oil exported in 2021 was 9.2 billion dollars before excluding expenditures. But what would be the difference if the same amount of oil exported by the Kurdistan Region in 2021 was exported through the central government and the Iraqi oil marketing company SOMO? According to the Iraqi Ministry of Oil, SOMO has sold an average 72 dollars per barrel of oil in 2021, which means the amount of oil the KRG has sold independently if it was through SOMO, would have been worth 10.3 billion dollars, according to which the Kurdistan region's oil has been sold 1.1 billion dollars cheaper than the Iraqi oil in 2021. Second: The difference in the value of Kurdistan's oil; exports through SOMO or independently (after excluding expenditures) According to both the KRG President and the Minister of Natural Resources, more than 58% of oil revenues are given to oil companies and oil production expenditures, in a way that 20% goes for the cost of oil production and 14% goes for the oil companies and 6% for the transportation. What remains is for the compensation of the debts. So, after extracting the costs of the oil process and selling it for a cheaper price, only 3.8 billion dollars remains from selling 151.2 million barrels of oil, meaning that on average, only 25.62 dollars per barrel of oil has remained for the KRG during the year. This comes at a time when, on the same assumption as before, if the Kurdistan Region would have exported the same amount of oil through the Iraqi oil marketing company SOMO, for each barrel of oil, the KRG would have had a total of $42.76 in 2021, making it a total of 6.4 billion dollars. In other words, instead of 3.8 billion dollars, the KRG would get about three times that amount. Which would have been 10.3 billion dollars revenue. Oil revenue between Iraq and the Kurdistan region According to data from the Iraqi ministry of oil in 2021, the Iraqi government exported 1.1 billion barrels of oil through the SOMO oil marketing company, which was 75.6 billion dollars. In 2021, the Kurdistan Regional Government (KRG) exported 151.2 million barrels of oil, the revenue of the oil exported by the Kurdistan Regional Government before excluding expenditures was 10.6 billion dollars, and the remaining income for the KRG was 3.8 billion dollars. Iraq’s oil revenue in 2021 was 75.6 billion dollars, but KRG’s oil revenue for the same year was 3.8 billion dollars. According to that, the Kurdistan region's oil sales in 2021 were 13% of Iraq's oil sales, but the KRG’s oil revenues were only 5% of Iraq's oil revenue. In other words, the Iraqi government has received 68 dollars from each barrel of oil, while the KRG has only received 25 dollars. Therefore, if the KRG would have handed over oil to SOMO, it would have received 43 more dollars per barrel. Also, if the KRG would have sold its oil at the price of SOMO, instead of 3 billion dollars, would have received 10 billion dollars in revenue. This means KRG lost 7 billion dollars in revenue in 2021.

Iraq's oil revenue was 75 billion dollars and the Kurdistan region was 4 billion dollars, in 2021

Draw Media The Iraqi government exported more than 1 billion barrels of oil in 2021, with revenues of 75 billion dollars, while the KRG exported more than 151 million barrels of oil, after extracting the coast of the production process, only 3 billion and 870 million dollars of revenue have left for the KRG. First: Iraq's oil exports and revenues in 2021 According to data from the Iraqi ministry of oil in 2021, the Iraqi government exported 1 billion, 102 million, 188 thousand, and 981 barrels of oil through the Iraqi oil company SOMO. On average, Iraq exported 3 million, 19 thousand and, 520 barrels of oil daily. The Iraqi government's total revenue from oil sales was 75 billion, 650 million, and 606 thousand dollars. Second: Iraq's exported oil source in 2021 According to the data, the total oil exported by the Iraqi government was 1 billion, 102 million, 188 thousand and, 981 barrels of oil. The oil is mostly exported from the oil fields in central and southern Iraq, particularly in Basra province, an area that produces the lion’s share of the crude exporting country’s oil. The Basra province alone exported 96.65 percent of all oil exports from Iraqi, which was 1 billion, 65 million, 414 thousand, and 695 barrels for more than 73 billion dollars. The remaining amount of oil exports were from the fields in Kirkuk province, which were 36 million, 774 thousand, and 286 barrels. Its only 3.45 percent of all oil exports from Iraqi, with a value of only 2 billion, 449 million, 754 thousand, and 946 dollars. Third: the KRG's oil revenues in 2021 The Kurdistan region's oil revenues, at the price of the international market In 2021, the KRG has exported 151 million and 211 thousand barrels of oil. The average price of oil per year was 70.6 dollars. The value of the oil exported by the KRG was 10.6 billion dollars. The KRG's oil sales and revenues, after extracting the coast of the production process and selling it at a lower price On June 28, 2021, at a joint meeting between the Kurdistan Parliament and the Kurdistan Regional Government (KRG), Kamal Atrushi, minister of natural resources, announced that 58% of oil revenues would be spent on the companies and oil production costs, in a way that 20% goes for the cost of oil production and 14% goes for the oil companies and 6% for the transportation. What remains is for the compensation of the debts. This is despite the fact that the region's oil is constantly sold for $10 less than the world markets, so after extracting the costs of the oil process and selling it for a cheaper price, only 3.8 billion dollars remains from selling 151 million and 211 thousand barrels of oil, while the amount of 5.3 billion dollars goes to the costs of the production process and companies’ loans.

The KRG’s oil income in February

Draw Media The region's oil revenues for February this year were revealed by Masrour Barzani as follows: Last month, February, was 28 days. • The region has sold (422,000) barrels of oil every day. • In February, (11 million and 816,000) barrels of oil were sold. • The average price of a barrel of oil was 83 dollars in February. • Total revenue was: (980) million dollars. • From The oil sales revenues for last month, only 420 million dollars have remained for the government. • 58 million dollars of the oil revenues have gone to the company's debt. • The amount of 67 million dollars of the revenues have gone to the pipeline rent. • The amount of 435 million dollars of oil revenues have gone to the oil companies spending. • The net revenues that have returned to the government treasury were 420 million dollars. • out of the 420 million dollars of the revenues, 134 million dollars were spent on the employees’ paycheck. • Now, only 286 million dollars are left from the February revenues.

Kurdistan Natural Gas Knocks EU Market, If Could Withstand The Challenges

By Shahriar Sheikhlar* One week after Putin’s troops launches an invasion of Ukraine, the west is cautiously whispering the sanctions against Russia, as the European countries, even they believe the necessity of those sanctions, couldn’t suspend importing the energy fossil resources from Russia. Selecting the coldest days of winter for attacking Ukraine, shows not only the deep dependence of Europe’s energy security on Russia’s natural gas but proved the west leaders’ fault in diversifying EU’s energy suppliers. Russia’s Natural Gas share in the EU market, raised to 40% in 2021, against only 27% in 2011, which could be hiked to 50%, if U.S concerns didn’t ban gas flow in the Nord Stream II pipeline. Despite EU countries are avoiding removing all of the Russian banks from SWIFT, mainly to avoid the risk of even a short shutoff in Russia’s gas flow, which could shake their energy market, but now, U.S and European countries, more loudly think about new more reliable gas sources، but the choices are not abundant, or need a long time for developing their infrastructures to reach Europe. While, expanding current suppliers’ capacity, mainly Iran and Azerbayjan, could be technically complicated, developing the recent growing Mediterranean natural gas reservoirs, such as North Africa, Israel and Cyprus-Greece, is facing reserve ownership challenges, bilaterally and with Turkey. Another reliable option, is Kurdistan’s natural gas, rich semi-autonomous region in northern Iraq. Developing of the Kurdistan’s gas reserves, which is estimated to about 3 TCM (2% of world total), kicked off at 2007, but advanced after 2019. Kurdistan’s main gas field, has been developed by PEARL Petroleum, an international consortium, mainly directed by U.A.E gas companies, Crescent Petroleum and Dana Gas. The field’s production is reached to more than 450 MMSCUFPD and planned to more than 700 MMSCUFTPD by 2023 and double of current amount, by 2025. The consortium, recently secured $250 million in financing from the U.S. International Development Finance Corp (DFC) for its development plan. This boosting plans, enabled the KRG to evaluate different scenarios, including supply internal demands (mainly for Power Generation, Industrial and Residential consumers), or feed Iraq’s Power Plants, which now are mainly receive natural gas from Iran, or eventually think the foreign markets, including Turkey and Europe. Kurdistan’s geopolitical advantages, is a key factor in easy reach to Turkey and European markets. Also, the KRG’s natural gas reservoirs’ characteristics, which enabled its fast development, enhanced chance of this region in joining European strategic plan for diversifying their gas sources. While, Iraqi federal government has failed during last 18 years in developing its natural gas fields, and even gathering and treating its huge associated gas capacities, which are second world flared amount (about 1.7 billion Cubic feet per day), supplying fuels for the power plants becomes a crisis. Iraq’s current demand for electricity is estimated above 40,000 MW/hr, while the current potential capacity is less than 30,000 MW/hr, but about one-third of this amount is missed, mainly for lack of fuel. That’s why Iraq’s acting electricity minister visited Qatar, on February 7, 2022, to talk about importing natural gas from Qatar. This plan, not only could satisfy Iraq’s increasing demand for natural gas, from one of the biggest producers, in parallel with their current pipeline from Iran but could make Qatar – Turkey’s pipeline dream come true, which has been archived by the Syrian internal war. Kurdistan’s geopolitical location, connecting Iraq to Turkey, could expedite the development of Kurdistan’s natural gas infrastructure and production plan if could be connected to the Qatar pipeline. In the future, Kurdistan’s natural gas network could join Iran’s gas pipeline in the role of the regional gas hub to the EU and Turkey. Despite Kurdistan Gas having significant advantages, but should pass through a rocky road. The main challenge is the Iraqi federal government’s view on Kurdistan’s oil and gas. The obese government, heavy public payroll, undeveloped private sectors, and endemic corruption are the main encourages for the Iraqi federal government to be greedy for Kurdistan’s oil and gas. While, about one trillion dollars of Iraqi federal government incomes from oil revenue, during the last 18 years, are without significant improvement in public welfare or economic growth have been achieved, the Iraqi parties continuously attacking Kurdistan’s oil and gas but with no plan for more effective directing of the federal oil sector, which is producing more than 4,000,000 barrels of oil per a day. On the other hand, though, the second part of article 112 of the Iraqi federal constitution, which was approved in 2005, clearly authorized the Iraqi semi-autonomous regions, still only including the Kurdistan Regional Government, to manage the non-producing and future fields of oil and gas, but Iraqi central government has continuously sought ways to undertake the Kurdistan’s oil and gas. Several claims in internal and international courts, threatening International Oil Companies s (IOCs) working in Kurdistan, and complaints against Turkey, are only some attempts in pushing KRG to hand over Kurdistan’s oil and gas dossier to the central government. The last step against the region’s oil and gas was taken recently by the federal court. The court’s decision, 15 years after the region’s oil and gas law approval and 10 years of registering the complaint in the court, found the law to be “unconstitutional,” and therefore struck down the legal basis for the independence of the Kurdistan Region’s oil and gas sector, Rudaw English reported. Moat of analysis on the main causes for this court’s approach, which named “unconstitutional” and “unjust” by KRG, addressing the momentous step in Kurdistan’s gas industry. The court’s decision comes some days after the visit of the KRG’s President, Mr. Nechirvan Barzani, from Turkey’s President, Erdogan, on February 2nd, 2022, where they discussed mutually the opportunities for Kurdistan’s natural gas in Turkey’s and European markets. The Erdogan’s interview after his visit from Ukraine, two days after his meeting with President Barzani, ignited objections against Kurdistan’s natural gas industry in Baghdad, especially when it followed by the KRG’s Prime Minister, Mr. Masrror Barzani’s visit to Qatar, where he met with Qatar’s Emir, Sheikh Tamim Bin Hamad, only some weeks after he met with Abu Dhabi’s crown prince, Sheikh Mohammed Bin Zayed. While, Kurdistan’s natural gas requires rapid and radical improvements in administration, as well as fast expansion of infrastructures, to meet the export requirements, the recent confrontation of Baghdad, could slow down the Kurdistan gas’ development plan. Natural gas’s role in EU energy security and main suppliers’ stiff competition on the market share, which was interpreted as the main cause of Syria’s destiny, when were nominated as a potential gas route to Europe, could make Kurdish leaders more cautious on their gas expert project. Abandoning of Kurdish people in the Erbil and Baghdad’s conflicts against controlling Kurdish region outside the KRG, mainly the rich oil city of Kirkuk, clearly could show the unfriendly relationship between the two capitals and lack of Kurds to west supports for geopolitical conflicts. Then, the potential confrontation against natural gas, not only could deepen the bilateral conflicts but could threaten the plans for supplying natural gas to the EU, from both Kurdistan and Qatar. Now, it’s time for the US and EU to bring the two governments closer and resolve main constitutional disputes, as they have done during the last two decades. Calming down the conflicts could accelerate the expansion of the oil and gas field in disputed areas, according to article 140 of the Iraqi federal constitution, releasing significant potential to supply the EU’s market. Conducting this arrangement, of course, would be opposed by Russia, which has a critical position in Iraqi and KRG’s oil and gas sector. Russia’s Rosneft and Gasprom giant companies have a significant share in big oil and gas fields of both areas, which could be considered in any export or transit of gas from Iraq. Scaling down the US and EU involvement in Iraq’s oil and gas, sought as a strategic plan, opened the door for Russian and Chinese companies to Iraq’s oil and gas industry, what’s currently to be managed if the west looks Iraq to play a role in their European energy puzzle. Kurdistan’s natural gas could be a reliable and stable source for Turkey and the EU, only if US and EU are serious in withstanding the challenges, internally or with the competitors. Next, months could be vital for the EU’s energy security, to be diversified or dependent on Russia. * Shahriar Sheikhlar is independent energy security and strategic development analyst, in Erbil, Kurdistan Region of Iraq. Mr. Sheikhlar, holds a postgraduate in Management, Strategy. He is giving advice and services to some local and international think tanks and news agencies.

The fate of the KRG’s oil sector after the decision of the federal court

Draw Media Following the federal court's decision, the KRG is facing several options and scenarios, the most dangerous for the KRG to hand over the entire oil process. From the beginning of the Kurdistan Regional Government's decision for selling oil independently, the KRG was constantly in conflict with the Iraqi government, until the conflict in 2014 led to cutting the region's share of Iraq's public budget. On January 15, 2022, a decision by the federal Supreme Court on the region's oil and gas sector, complicated the case much more. The implementation of the decision will be a major disadvantage for the Kurdistan Region. First, the federal court's decision on the region's oil case On January 15, 2022, the Iraqi Federal Supreme Court, in the presence of 9 members of the court and with a majority of 7 members and 2 votes against, decided on the invalidity of the region's oil and gas law and the unconstitutionality of oil sales by the KRG. according to the court's decision; 1. The region's oil and gas law, No. 22, 2007, is unconstitutional and against the articles (110, 111, 112, 115, 121, and 130.) 2. The KRG will abide by handing over all the region's oil products to the Iraqi ministry of oil. 3. The right has been given to complainants to pursue the cancellation of oil contracts signed by the regional government with the outside parties, the states, and the companies. 4. The decision allows the Iraqi Ministry of Oil and the Financial Supervisory Board to review all oil contracts to scrutinize and determine the financial bonds that are on to the regional government. Then under the light of that, the region's share of the federal budget will be determined. Second, the reasons behind the federal court's decision Regarding the federal court's decision on the region's oil case, different interpretations are made for the reasons behind the court's decision, particularly the time of the decision. Since two other complaints about the same issue have been filed before the court in 2012 and 2019, no decision has been made. But choosing this moment arises a few questions, Among them, for 15 years, the Kurdistan Parliament has approved the regional oil and gas law, began extracting oil in 2009, and exporting oil since 2014. Why has this matter been brought before the federal court after all this time? Therefore, we see that the political parties and officials have different interpretations and responses to the reasons behind the federal court's decision; 1. The federal supreme court's decision to take legal action, but has been postponed under the influence of some cases, said Ali al-Tamimi, a legal expert, in a statement to the al-Hara website. “Iraq is a federal country, not a confederation, and the Iraqi oil marketing company SOMO should be the only party to export oil.” 2. Another group of experts believes that the decision is more political rather than a legal issue, and they attribute the reason for the rapprochement of political forces such as the Kurdistan Democratic Party (KDP) and the Sadr Bloc, led by Muhammad al-Halbousi. 3. The third group says; Whether political or legal, the decision does not change much, but the fact is that after the referendum in the Kurdistan Region and the events of October 16, 2017, the region's position in Baghdad has continued to weaken, and Baghdad does not want the region's position to be strong. 4. Another group believes that; start exporting the region's gas; with the arrival of the new year (2022). The in efforts to industrialize the region's gas and export gas to Turkey and European countries similar to oil. Therefore, some observers attribute the federal court's decision to the KRG's move, which they consider to be against gas investment, not oil. Third, the scenarios and options in front of the KRG regarding the federal court's decision Although the decision is decisive and must be implemented, according to Article 94 of Iraq's permanent constitution, the court's decisions are decisive, stating that "all powers must abide by it", according to which the KRG will face several scenarios and options, including; 1. The implementation of the decision has to do with the rapprochement and nature of political relations and the relationship between the Kurdish and the Iraqi parties. It can be worked out through political relations to keep the decision on the paper and not being implemented. 2. Launching diplomatic efforts in the Kurdistan Region and putting pressure on the central government to prevent the court's decision from being implemented. 3. The KRG would surrender oil fields bordering disputed areas outside the KRG's control (Mosul, Kirkuk, Diyala, and Salahaddin). 4. The Kurdistan Region work to pass the oil gas law in the Iraqi parliament and be able to implement the law that would allow the KRG to manage the region's oil, or jointly. 5. The last scenario, which is a weak scenario, is handing over the region's oil revenues to the central government and managing oil fields by the KRG (which is impossible for both sides).

The U.S. Consul General visited Draw Media

Draw Media U.S. Consul General Robert Palladino visited the office of Draw Media in Sulaymaniyah. In the meeting, they discussed journalism and freedom of expression in The Kurdistan Region. The Consul General had a chance to learn about Draw media programs, including a grant awarded by the National Endowment for Democracy (NED), as well as the challenges faced by journalists and media outlets. U.S. Consul General said: “Independent journalism is important to Democracy and that is really we aspire for the Kurdistan Region to have a strong Democracy, so the United States will continue to support freedom of the press and will continue to support journalism and independent journalists, and it’s an honor to be here today.”

Last Month the KRG Has Sold a Barrel of Oil for $85

Draw Media: Last February, the Kurdistan regional government sold 11 million barrels of oil for 85 dollars, and the region's oil revenues in February were a trillion and 400 billion dinars, which remained 589 billion dinars for the government, with internal and allied revenues giving 784 billion dinars. Non-oil income • The region's non-oil revenues for February = (164 billion) dinars (only for government expenditures because domestic income is more than 350 billion dinars per month) • Coalition assistance for Peshmerga forces = (31 billion 500 million) dinars The region's share in Iraq's budget section = no amount of money has come Oil revenues (pipeline export) • In February 2022, the Kurdistan Region exported 11 million and 404,000 barrels of oil through the Turkish port of Jihan, which provides 407,285 barrels daily for 28 days in February. • The average price of Brent oil for February is $ 96.85. • Because the region sells its oil for less than $12, it has sold an average of $84.85 So, (11 million and 404 thousand) barrels X (84.85) dollars = (967 million, 629 thousand and 400) dollars. In IQD would be: (967 million, 629 thousand and 400) dollars X (1450) dinars = (1 trillion 403 billion, 62 million, and 630 thousand) dinars. • According to the Deloitte report, 58% of oil revenues will go to the oil production expenses and 42% will remain for the Ministry of Natural Resources. - So: (967 million, 629 thousand and 400) dollars X (58%) = (561 million, 225 thousand and 52) dollars go to the cost of the oil production process. -In IQD is (561 million, 225 thousand and 52) dollars X (1450 dinars = (813 billion, 776 million and 325 thousand and 400) dinars is oil expenditure. - (967 million, 629 thousand and 400) dollars X (42%) = (406 million, 404 thousand and 384) dollars of income remains. The KRG Oil revenue in IQD is 406 million, 404,384 dollars X (1,450) dinars= (589 billion, 286 million, 304,600) dinars. Total income in February 2022 (dinar) • (589 billion, 286 million, 304 thousand and 600) oil income + (164 billion) internal income + (31 billion 500 million) Coalition assistance for Peshmerga forces = (784 billion, 786 million and 304 thousand and 600) dinars

“Rosneft finances the cost of the Russian war in Ukraine"

Draw Media The Russian company Rosneft, which works at 6 of the Kurdistan region's oil farms and owns 60 percent of the Kurdistan Region's oil pipeline, is accused of financing the cost of the Russian war in Ukraine. The British Petroleum Company, a British group known as BP, announced its withdrawal from its 19.75% stake in the Russian company, Rosneft. BP accuses Rosneft of financing the war: “Rosneft finances the cost of the Russian war in Ukraine, and as a protest against the war, we are pulling out of our partnership with this company." Bernard Looney resigned from the board of Rosneft with immediate effect. “The Ukrainian war has led us to reconsider our work with Rosneft," (BP) chief executive officer Bernard Looney said in a statement. The decision of some global oil companies has shown an effect on Russia’s economy, particularly the Shell Company, which owns 27.5% of (Gazprom’s Sakhalin II), and Exon Mobil, which has been dealing with Russian companies belonging to the Rosneft Group for 25 years. Another company, Glinkur, owns 11 percent of the Russian energy company AN+, along with several other companies that work with Russia. The Suspension of British BP with Russian Rosneft comes after the western allies-imposed sanctions on Russia over Russia's attack on Ukraine. Including the expulsion of some Russian banks into the Swift system of international financial exchange. This poses a major risk to the Russian company’s work. Rosneft in The Kurdistan Region The Russian company Rosneft owns 60% of the Kurdistan region's oil pipeline shares (the part of the pipeline that is inside the region's territory on Turkey’s border). In addition, the company is searching for oil in 6 Kurdistan fields, which are located on the Erbil-Duhok border, including: • Bartla • Zaweta • Harir • Bejil • Qasrook • Daratu

The Kurdistan region between Russia and Ukraine

Russia owns 60% of the Kurdistan Region's oil pipeline, but Ukraine had only some trades with the Kurdistan Region such as; cattle, Indomie, wheat, and coal, which has been terminated by the war. The region's government and leadership have not yet expressed their stance on the Russia-Ukraine war. But the Kurdistan regional government and leadership have not yet taken any action. The region between Russia and Ukraine It has been a few days since Russia's attack on Ukraine has begun, most countries in the region and around the world have expressed their stance on the war, but the Kurdistan regional government has not yet taken any action. To understand the Kurdistan Region's relationship with both sides of the war, we have to take a look at the region's economic relations with Russia and Ukraine. The economic relations of the KRG with Ukraine According to the Sulaymaniyah Chamber of Commerce and Industry, the region’s trade with Ukraine has completely terminated since Ukraine has imposed a state of emergency for 30 days. Ukraine has a lot of trade relations with the Kurdistan Region and Iraq, and because of the war, all business has now been suspended. “Ukraine had significant trade relations and cooperation with Kurdistan Region, but escalating Ukraine-Russia crisis will greatly harm our business.” Said: Peshawa Sirwan, a businessman in Sulaymaniyah. According to Sirwan, Ukraine’s products exported to the region were: • Food • Juice • Milk • Indomie • Cleanser • Coal • Sunflower oil • Wheat • Cattle The war situation has led traders to find alternatives to Ukrainian products, particularly in neighboring countries such as Iran and Turkey so that they continue their business. According to the director of Sulaymaniyah International Airport, in 2017, (86,144) cattle have been imported to Sulaymaniyah, and most of them were imported from Ukraine. Some traders from the Kurdistan region have been importing Ukrainian wheat and mixing it with the wheat of the region's farmers and handing it over to Baghdad. This was a reason for the Iraqi government to delay farmers’ payments. Economic relations between Russia and the KRG Russia was one of the countries that did not support the fall of the Baathist regime in Iraq, but soon after the fall of the regime, Russia began building a new relationship and opened its consulate in Erbil in 2007. Russia now has economic interests in the Kurdistan Region, the 60% share of the Kurdistan Region's oil pipeline is owned by the Rosneft Company. The Kurdistan regional government sold pipelines in return for receiving loans from this Russian company. According to data, the owner of The Rosneft Company, who has close ties to the Russian president Vladimir Putin, earned $272 million in revenue from the region's oil pipeline in just six months of 2021. The contract for selling the Kurdistan Region's oil pipeline to Rosneft company was signed on June 2, 2017, in Saint Petersburg, Russia. 60% of the Kurdistan Region's pipeline share was sold to the Russian company for one billion and 700 million dollars. In addition, the Russian Gazprom company operates in two oil fields in Garmian, Sulaymaniyah, which was launched in 2012. This was the beginning of the Kurdistan Region's economic relationship with Russia after Saddam's fall. Russia maintained its neutrality between Baghdad and the region during the 2017 Kurdistan Regional Government's independence referendum and has not clearly expressed its stance. Russia is now one of the countries that, similar to the Europeans, is looking at natural gas in the Kurdistan Region.

Kurdistan Region's Oil Pipeline

Draw Media The Kurdistan Regional Government (KRG) created the Kurdistan Oil Pipeline and sold it in 2017 for one billion and 700 million dollars, but from the beginning of 2019 to mid-2021 the government paid $1 billion and $744 million to the rent of the oil pipeline. In Kurdistan Region's oil revenues in 2021 were $4 billion and $108 million, only one billion and 725 million dollars were for the government's treasury, and 454 million dollars alone were for the oil pipeline rent, which is 11 percent of the revenue. Ownership of Kurdistan region oil pipeline According to a statement from a member of Kurdistan Parliament, Ali Hama Salih, regarding the Kurdistan oil pipeline and the region's oil transport fee. The oil pipeline in the Kurdistan Region has been under construction since 2010, and at the end of 2013, the Kurdistan region's oil was transported to the Turkish port of Jayhan for the first time. According to the information, Kar Group built the oil pipeline, which was coasted 600 million dollars and 40 percent of the pipeline is owned by the company. 60% of the region's oil pipeline is owned by the Russian company Rosneft, when on June 2, 2017, in San Petersburg, in the presence of the KRG president and his deputy and minister of natural resources in The eighth cabinet, signed a contract with Rosneft's executive director. A part of which was the sale of 60 percent of the Kurdistan oil pipeline to Rosneft for 1 billion and 700 million dollars. The length of the Kurdistan Region's oil pipeline is 896 kilometers, starting at the Kurdistan Region's border at the Khurmala field and passing through (Erbil, Bardarash, Ain Safni, Jabal Kand, Alqush, Duhok, and Silvan) and it’s 221 kilometers till reaches Fishkhabur. According to which 24.6 percent of the oil pipeline is on the Border of the Kurdistan Region, owned by both companies Kar and Rosneft. The part of the oil pipeline on the Turkish border, owned by the Turkish energy company Botash, is extended from Fishkhabur to the Turkish port of Jayhan, which is 74.6 percent of the overall pipeline length. According to financial statements by the Singapore branch of Rosneft, the company has given 250 million US dollars to an external consultant to ensure that they get the oil agreements in the Kurdistan Region. The region's oil pipeline to The Turkish Port of Jahan The cost of transporting the region's oil through the Kurdistan Region pipeline According to Deloitte's reports on 1/1/2019- 30/6/2021, the KRG exported 393,528,260 barrels of oil through pipelines to the world markets. According to the company's report, 1,744,391,437 dollars have been spent as oil transport fares through the pipeline, which is 4.4 dollars per barrel. The cost is more than the amount the KRG received in 2017 by selling the Kurdistan oil pipeline to Rosneft, which amounted to $1 billion and $700 million, as we mentioned above. The cost of transporting the region's oil through the oil pipeline constantly rising. According to Deloitte's reports from the beginning of 2019 to the first half of 2021, the rise of the cost of transporting oil is clearly seen, for example in Deloitte's first report, which explained the details of exporting oil process during (1/1/2019- 31/3/2019). The KRG’s transport fee of one barrel of oil was 3.2 dollars on the KRG, but in the latest report of the audit company during (1/4/2021 - 30/6/2021) the transportation fee of one barrel of the region's oil was increased to 6.1 dollars. In a way that (1/1/2019 - 31/3/2019) the total cost of oil transportation of the region was (122,055,061) dollars on the KRG, but the latest Deloitte report focused on the KRG's total oil transport fee was (238,932,863) dollars during the period 1/4/2021- 30/6/2021. The Kurdish parliament member, Ali Hama Salih stated that from 2020 till the mid of 2021, a year and six months, (1 billion and 584 million DOLLARS) were paid for the region's oil transport through pipelines. In 2020, 21.3 percent of the total oil revenues were paid to the region's oil pipeline. When the Kurdistan region's border pipeline is only 24.6 percent of the total length of the oil pipeline from Khurmalawa to the Port of Jayhan but 70 percent of the total transport fee has been paid to this part. Based on the information, 70% of the oil transport fees have gone for (Kar and Rosneft) companies and only (30%) to the Turkish energy company. Is it possible that the oil pipeline at the Turkish border to be twice as much as an oil pipeline on the border of the Kurdistan Region, but the pipeline fee will be much higher than the Turkish border?

Pennsylvania Man Charged With Torturing Employee at Iraq Construction Site

A Pennsylvania man has been arrested on charges he allegedly tortured a victim in the Kurdistan region of Iraq in 2015. Ross Roggio, 53, from Stroudsburg, Pennsylvania, allegedly suffocated the victim with a belt, threatened to cut off one of the victim’s fingers and directed Kurdish soldiers to inflict other severe pain and suffering in the victim, according to the superseding indictment. U.S. Attorney John C. Gurganus for the Middle District of Pennsylvania and The Department of Justice announced the arrest on Friday, Feb 18. The indictment stated that Roggio was managing a project in 2015 to construct a factory and produce weapons in the Kurdistan region of Iraq. One of Roggio’s employees had raised concerns about the weapons project, and Roggio allegedly arranged for Kurdish soldiers to abduct the employee. The employee was kept by Kurdish soldiers at their military compound for around 39 days. Roggio interrogated the employee several times and allegedly directed the soldiers to suffocate the individual with a bag, tased the individual in the groin and other areas of the body, beat the individual with fists and rubber hoses, violently jumped on the person's chest while wearing military boots and threatened to cut off one of their fingers while applying pressure with a large cutting tool. If convicted, Roggio faces a maximum sentence of 20 years in prison for each of the torture charges as well as a maximum total statutory penalty of 705 years in prison for the remaining 37 counts.

U.S. Ambassador to Iraq: We Committed to Not Allow the Oppression of the Previous Regime to Be Repeated

Draw Media On Thursday, Feb. 17, 2022, U.S. Ambassador to Iraq Matthew Tueller and U.S. Consul General Robert Palladino visited the Amna Suraka museum in Sulaymaniyah, which was a place of torturing and oppressing Kurdish people during the Ba'athist regime, and now it’s a national museum. After visiting the museum and seeing the suffering of the Kurdish people in the past, the U.S. ambassador to Iraq said, “It’s a deeply impactful reminder of the tyranny and oppression that the Kurdish and the Iraqi people suffered”. U.S. Ambassador to Iraq Matthew Tueller also said, “We committed to stand with those who want to ensure that future generations never again see the return of this type of tyranny and oppression.”

The Share of the Foreign Companies in the KRG’s Oil Blocks

Draw Media The Kurdistan Region is divided into 57 oil and gas blocks, in Erbil province (21%), Sulaymaniyah province 21%, Duhok, including Mosul province, 32%, and in Garmian with the disputed areas 26% of the blocks. The Ministry of Natural Resources has signed contracts with about 40 foreign companies in 56 blocks, and the KRG's share of all blocks does not exceed 20 percent - 25 percent. In The Kurdistan Region, there are only nine active oil blocks. Seven of them are located in Erbil and Duhok provinces making up 92.7 percent of all the region's oil products, and 7.2 percent of which are located between Sulaymaniyah and Garmian. First: geographical division of Kurdistan region's oil blocks The Kurdistan Region is divided into 57 (oil and gas) metal blocks, 17 of which are located within the borders of disputed areas (but within the KRG's authority). The blocks are divided into areas and provinces in the region in a way that Erbil governorate 12 blocks, Sulaymaniyah governorate 12 blocks, Duhok governorate 18 blocks, and Garmian 15 blocks. Details of the geographical distribution of the oil blocks 1. Tauka block: In Duhok province, it is located in the Zakho district, which is 594 square kilometers and has a total of 1.9 billion barrels of oil. 2. Duhok Center Block: it is located in the north of Duhok city and the middle of the province and is 600 kilometers square. 3. Slevani block: In Duhok province, it covers the south of Zakho district to Mosul Lake and is 700 kilometers square. 4. Sindi-Amedi block: In Duhok province, this block covers Amedi district, Sindi plain, and the north of Zakho district. It’s 2358 km square. 5. Sarsang block: In Duhok province, includes Sarsang, Swaratuka, and northeast of Duhok. Its 1,085 kilometers square and is expected to have 2 billion barrels of oil reserve. 6. Bir Bahr block: In Duhok province, the northern city of Duhok. Its 350 kilometers, contains 1.92 billion barrels of oil reserve. 7. Sheikh Adi block: In Duhok province, it is located in the east of Duhok city and north of Shekhan. It’s 180 square kilometers and contains 1.9 billion barrels of oil reserve. 8. Duhok block: Located in the Center of the Duhok district and the south of Duhok city and Smel district. It’s 162 square kilometers. Contains (2.2) billion barrels of oil reserve. 9. Alqush block: In Duhok governorate, it is located in the south of Duhok city, and its a 331 km square area. 10. Atrush block: In Duhok province. Located the south of the Duhok district. It’s 269 square kilometers and contains 3 billion barrels of oil. 11. Shekhan Block: In Duhok province, 283 square kilometers, It is estimated to be about 10.5 billion barrels of oil reserve. 12. Ain Safni Block: Locate in the Ain Safni area in eastern Mosul. Its 840 kilometers and contains one billion barrels of oil. 13. Dinarta block: In Duhok governorate, includes, Mirga Sur, Barzan, south Akre, and Shiladze. It is 1,139 square kilometers. 14. Akra-Bejil block: In Duhok province, Includes, the Akre district and the Bijil district until the Bekhma area, Its 889 square kilometers and more than one billion barrels of oil reserve. 15. Ruvia block: In Duhok province, Includes, the south of bardarash and the north of the Akre district. It’s 517 square kilometers and contains 1 billion barrels of oil. 16. Sarta block: In Erbil province, it is located in the west of Masif district and south of Akre. It is 607 square kilometers and contains 1 billion barrels of oil. 17. Barda Rash block: In Duhok province, located in the Bardarash district. It is 265 kilometers square and contains 1.5 billion barrels of oil. 18. Bashik block: Located in the town of Bashik in the east of Mosul. It is 350 square kilometers. 19. Erbil block: It is located northwest of Erbil and the Bastora area. It’s 313 square kilometers and is expected to be 1 billion barrels of oil. 20. Erbil Damir Dagh block: Erbil city, Erbil plain, Makhmur road, and Kalak district. it is 1531 square kilometers. 21. Harir block: In Erbil province, Harir district, northern Shaqlawa districts until Soran, 700 kilometers. it is expected to contain about one billion barrels of oil. 22. Pirmam block: In Erbil province. Located in the center of the Pirmam district, and Sary rash area. 180 Squares kilometers. 23. Betwata block: 650 Squares kilometers, in Sulaymaniyah province, it starts from Hajiawa town and reaches Betwata, Balisan, Khoshnawati. 24. Choman: From Erbil province, it was first given to the Turkish Energy company, but then the company withdrew from the block. 25. Handren: In Erbil province. Just like the Choman block was given to the Turkish Energy company, the company later withdrew from this block too. 26. Shakrok block: In Sulaimaniyah province, it starts in the Khedrani district in Dukan until near Shaqlawa. 418 square kilometers. 27. Safin block: In Erbil governorate. Starts from Safina mountain to Hizop, it is 500 square kilometers. 28. Bana Bawe block: In Erbil province, it covers from the Hiran and Nazinin areas to Goma span, in 240 square kilometers has more than a billion barrels of oil. 29. Shorsh Block: In Erbil province, From the north-east of Erbil and the Degala district to Goma span, in 526 square kilometers. 30. Mala Umer Block: In Erbil province, it is south-east of Erbil and 285 square kilometers, is expected to be 500 million barrels of oil. 31. Qushtpa block: In Erbil province, it starts from Qushtapa, south of Erbil, to Dubzu and Prde. it’s 1,180 Square kilometers. 32. Qaladze block: In Sulaymaniyah province, it covers all Kaladze districts, Marqa, Dukan Lake, and Rania. It is about 2,000 kilometers square. 33. Khalakan block: In Sulaymaniyah province, Kalakan town, Haybat Sultan Mountain, and a part of Koya plain until Little Zab River. In 624 square kilometers has (2,450) billion barrels of oil. 34. Taqtaq blocks: is located in Koya district, Taqtaq district, and Aghja district in Chamchamal, containing more than one billion barrels of oil reserve, 951 square kilometers. 35. Piramagrun block: In Sulaimaniyah province, east of Dukan-Sulaymaniyah road and the foothills of Piramagrun mountain till it reaches Dukan town, it is more than 730 square kilometers. 36. Miran block: In Sulaimaniyah province, it starts from Tasluja, west of Dukan-Sulaymaniyah road, including a part of Agjalar, Bazian, and Chamy Razan Resort. It's 1015 square kilometers. Contains two big oil fields; east Miran which is expected to have 1,637 billion barrels of oil, and west Miran, which contains 4,808 billion barrels of oil. 37. Bazian block: In Sulaimaniyah province, Sagarma mountain, west of Bazian, Takia town, and part of Agjalar in Chamchamal district. Its 473 square kilometers, and has 1,178 billion barrels of oil reserve. 38. North Sangawa block: In Garmian. it is located north of Sangaw in Chamchamal district. it contains 6,163 billion barrels of oil in 492 square kilometers. 39. Top xana block, In Garmian. East of Qadir Karam district and Jabari area. Contains 4 billion barrels of oil in 945 square kilometers, despite a large amount of gas. 40. Taza block, In Garmian. Including a part of Nawjul and west of Qadir Karam district. It is expected to be 3 billion in oil and a large amount of gas in 700 square kilometers. 41. Palkana block: In Garmian, Duzkhurmatu, and Jabara district, which is 529 square kilometers, containing 1.58 billion barrels of oil reserve. 42. Penjwen Block: In Sulaymaniyah province. Extends from the center of Penjwen to the Iranian border, and it is worth mentioning that no investment has been made in this block so far. 43. East Arabat block: in Sulaymaniyah province, it covers Siwail, Barzanja, and a part of Sharazur to Nalparez district in Penjwen district and is 700 km square. 44. Arabat block, in Sulaimaniyah city. Extends from Arabat to New-Halabja District. Including Goizha and Azmar mountain. Its 974 square kilometers, containing 1,177 billion barrels of oil. 45. Baranan block: In Sulaymaniyah province, containing south-east of Sulaymaniyah and Baranan mountain until it reaches Darbandikhan lake. It's 722 square kilometers. 46. Qaradagh block: In Sulaymaniyah province, including the Qaradagh area and the east of Sagarma Mountain and west of the Sirwan River to Darbandikhan. it contains 4,896 billion barrels of oil in 846 square kilometers. 47. South Sangawa block: In Garmian, it covers the center of the Sangaw district and its surroundings. It is 846 square kilometers and is expected to have 2 billion barrels of oil and one trillion cubic meters of natural gas. 48. Kordamir block: In Garmian. Located in the south of Sangaw district and the north of the Kalar district until the Sirwan River. contains 5,129 billion barrels of oil reserve in 620 square kilometers. 49. Garmian block: Including the northern district of Kalar, Bawanur, Sarqalla, and Sheikh Tawel. Contains more than 4 billion barrels of oil in 2120 square Kilometers. 50. Shakal block: In the Garmian area, it covers the south of Kalar, Rizgari district, and Kafri district. which contains about 2 billion barrels of oil in 832 square kilometers. 51. Chia Surkh block: In Garmian. Located in the east of the Sirwan River. Extents from Qoratu and Maidan district in Khanaqin until the Iranian border. Contains 5,656 billion barrels of oil in 938 square kilometers. 52. Kor Mor Block, in Garmian: The first Block of Kor Mor; is located in the Qadir Karam district of Chamchamal. Containing more than 2 trillion cubic meters of natural gas in 510 square kilometers. Second Block of Kor Mor; It’s a separate block from the Qadir Karam block. It’s around 300 square kilometers and has a large amount of gas and oil. 53. Chamchamal block: In Garmian area. Extends from small Zab until Basara river to Chamchamal district, and its 1169 square kilometers 54. Qara Hanjir block: In Garmian, it is located between Chamchamal and Kirkuk, which Contains Shwan, Qara Hanjir, and the Takai Jabari district. It’s expected to be 5 to 10 billion barrels of oil in 1,200 square Kilometers. 55. Khurmala block: In Erbil province, it is in the southwest of Erbil. Extends from Kirkuk field, which includes both Khurmala and the Avana of Khurmala. 56. Halabja block: in Sulaymaniyah province, it is located in Halabja district. Contains Khurmal, Sirwan, Biara, Gelejal, Halabja district center, and a part of Sayed Sadiq. Contain an estimated 650 million barrels of oil in about 1000 square kilometers. 57. Jabal Kand block: It covers the northeast of Mosul and is 400 square kilometers. Second: foreign companies in the Kurdistan Region The KRG has started oil contracts with foreign companies from 2002 until 2013, the number of companies in the Kurdistan Region to develop the region's oil sector has reached about 40 companies. Third: the share of foreign companies in the oil and gas blocks of the Kurdistan region As we mentioned earlier, the Kurdistan Region is divided into 57 oil and gas blocks, the Ministry of Natural Resources has signed contracts with about 40 foreign companies in 56 blocks, and the Kurdistan Region's share of all blocks does not exceed 20%-25%. Fourth: The stages of work and production capability in oil blocks The oil blocks are generally divided into three types, two of which are oil blocks (those in production and those in pre-production), the third of which are gas blocks.

Federal Court: The KRG must hand over oil to the federal government

Draw Media The Supreme Federal Court of Iraq, which has the highest legal authority, has issued its final decision regarding the export of oil from the Kurdistan Region. The Supreme Court decision summary: • The Kurdistan Region's Oil and Gas Act No. 22 of 2007 has been repealed. • The Kurdistan regional government's commitment to (handing over all oil products from the Kurdistan region's farms and other areas, from which the ministry of natural resources extracts oil and is handed over to the federal government). • Claimant has the right to investigate the cancellation of oil contracts signed by the Regional Government and its representative (Minister of Natural Resources) with foreign parties, states, and companies regarding the discovery, extraction, export, and sale of oil. The Kurdistan Regional Government's commitment to allow the Iraqi Ministry of Oil and the Federal Financial Supervisory Bureau, to review all oil contracts signed by the Kurdistan Regional Government regarding the export and sale of oil and gas. To scrutinize them and determine the financial rights of the regional government, and determine the region's share of the public budget.

Dana Gas Company Last Year Got 184 million Dollars in Kurdistan Region

* The Company's Revenue Has Increased by 30% to 452 Million Dollars Sharjah-based Dana Gas, one of the region's largest private natural gas companies, swung to a record net profit in 2021 as revenue surged amid higher oil prices. Net profit for the 12 months to the end of December climbed to $317 million, compared to a loss of $376m in 2020, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. The profit included other income of $608m related to an arbitration award against the state-owned National Iranian Oil Company. However, that was partially offset by impairments of $451m related to UAE gas assets and goodwill. Adjusted net profit for last year, excluding other income and impairments, came in at $128m, a more than 250 percent rise from 2020 adjusted profit of $36m, which reflects a robust underlying operating performance, the company said. Revenue increased 30 percent year-on-year to $452m in 2021, supported mainly by higher oil prices and increased production in the Kurdistan Region of Iraq (KRI). “We closed the year on a strong financial footing as a result of a robust operational performance over the last 12 months, said Patrick Allman-Ward, chief executive of Dana Gas. “We had record gas and LPG production in the KRI in December, achieving a 50 percent growth in gas production over the past three years as well as record collections of $377m, all of which contributed to our record profit.” Average group production fell 2 percent year-on-year during 2021 to 62,100 barrels of oil equivalent per day, mainly driven by a 7 percent annual decline in Egypt production to 28,300 boepd. The production decline was offset by a 5 percent jump in output from the KRI, which reached 33,800 boepd at the end of 2021. In the KRI, the KM250 gas expansion project currently underway at the Khor Mor plant is progressing on schedule. The project is now fully financed after securing a seven-year $250m loan from the US International Development Finance Corporation in September 2021. The company, which spent about $126m in capital expenditure in 2021, is expected to maintain the same level of spending this year. During a media earnings call, it does not have an immediate requirement to raise further debt, Mr. Allman-Ward said. Cash balance at year-end stood at $185m, an increase of 70 percent compared to $109m at the end of 2020. The cash balance includes $67m held by Pearl Petroleum, of which Dana Gas has a 35 percent share. The group collected a total of $377m in 2021, up from $182m in collections in 2020. Egypt and KRI contributed $193m and $184m respectively. Collections from Egypt and the KRI rose 107 percent year-on-year in 2021, marking a record for the company on the back of a strong rebound in oil prices, an accelerated pace of payments from Egypt, and the settlement of past outstanding KRI receivables from 2019 and 2020. The company’s Egypt receivables stood at $24m at the end of December, the lowest level since Dana Gas started operations in the country in 2007. Total outstanding receivables in KRI at the end of last year came in at $43m. "The decrease in receivables in Egypt and the payment of past outstanding receivables in the KRI further strengthened the company’s balance sheet and allowed the additional interim dividend payment of 3.5 fils per share," Dana Gas said.