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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.

Norwegian DNO revenue increased by 63% in 2021

🔹 More than 86% of its income is obtained from the Kurdistan region's oil 🔹For the first time, DNO revenue reaches more than 1 billion dollars Oslo, 10 February 2022 – DNO ASA, the Norwegian oil and gas operator, today reported record revenues exceeding USD 1 billion in 2021, up 63 percent from a year earlier, on the back of high oil and gas prices and solid production performance. Annual operating profit climbed to USD 321 million, reversing an operating loss of USD 315 million in 2020. Strong 2021 free cash flow of USD 362 million drove a 68 percent reduction in net debt to USD 153 million at yearend. “Notwithstanding the continued impact of the pandemic, DNO became a billion-dollar company last year on the fiftieth anniversary of its founding,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani. “We are as committed as ever to explore for and produce oil and gas in a commercially attractive but also socially responsible and environmentally sensitive manner,” he said, adding, “This is our business model, this is DNO’s DNA.” As previously reported, gross production at the Company’s flagship Tawke license in Kurdistan averaged 108,700 barrels of oil per day (bopd) last year, of which the Peshkabir field contributed 61,800 bopd and the Tawke field 46,900 bopd. Of the total, 81,500 bopd were net to DNO’s interest. North Sea net production averaged 12,900 barrels of oil equivalent per day (boepd), bringing the Company’s total 2021 net production to 94,500 boepd. In 2022, DNO plans an operational spend of USD 800 million across the portfolio. In Kurdistan, DNO is ramping up its drilling activities to maintain Tawke license gross production at around 105,000 bopd during the year, as well as a contribution from the operated Baeshiqa license in excess of 4,000 bopd. In December, the first phase field development plan for the license was approved by the Kurdistan Regional Government, clearing the way for a fast-track project to deliver early production from previously drilled but suspended discovery wells. Three additional Baeshiqa development wells will also be drilled this year. In the North Sea, DNO projects net production in 2022 to remain around 13,000 boepd. The Company will participate in drilling the highly anticipated Edinburgh exploration well in the UK and six additional prospects offshore Norway, aiming to build on last year’s successes with the Røver Nord exploration well and the Bergknapp appraisal well. Also in Norway, the DNO-operated Brasse project as well as the partner-operated Iris-Hades, Gjøk and Orion discovieries target 2022 project sanction, supporting the Company’s North Sea growth ambitions. The Company’s net reserves stood at 321 million barrels of oil equivalent (MMboe) of proven and probable reserves (2P) at yearend 2021 with additional contingent resources (2C) of 189 MMboe, according to preliminary numbers. DNO ASA is a Norwegian oil and gas operator focused on the Middle East and the North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development, and production in the Kurdistan region of Iraq, Norway, the United Kingdom, Netherlands, Ireland, and Yemen.

UAE's Dana Gas may hit 950 MMcf/d capacity in Iraq's Kurdish region before 2025

AuthorDania Saadi EditorAdithya Ram UAE's Dana Gas may hit a gas production capacity of 950 MMcf/d following a second train expansion at the Kurdish field of Khor Mor and the supply to local markets or beyond will depend on market needs, the company's CEO said Feb. 9. Dana Gas, which is currently expecting first gas from the first 250 MMcf/d gas train expansion by the second quarter of 2023 to add to the current 452 MMcf/d, is in talks with the Kurdistan Regional Government for a sales agreement for the second train that will add another 250 MMcf/d by late 2024 or the beginning of 2025, Patrick Allman-Ward said on a media call. "We are in discussions with the Kurdistan Regional Government for a gas sales agreement for the second 250 MMcf/d Khor Mor gas train," said Allman-Ward. "We hope those will be finalized shortly. As long as the market is there once the second train comes on stream, we should ramp up in a couple of months." Dana Gas production from Kurdistan rose 5% in 2021 to 33,800 boe/d, which includes condensate and LPG. If the KRG were to take all of the company's gas for power generation, it would be producing far too much electricity than it currently needs, which may necessitate the export of electricity or the gas itself, the CEO said. "The KRG has got a total installed generation capacity to absorb the amount of gas but would generate far too much for its requirements," said Allman-Ward. "If they take all the gas for power generation then they will need to export electricity to markets in the area or export the gas directly to other markets." Erbil-Duhok pipeline However, a potential export market is Turkey following the decision to construct a common user pipeline connecting the Kurdish capital Erbil to Duhok near the border with Turkey, he said. With the expansion of pipelines in Kurdistan, the second train gas will flow from Khor Mor to Erbil, doubling the gas export line, he added. "The good news of course with the common user pipeline and expansion being put in place and the expansion from Khor Mor to Erbil is that we will be able to put the entire volume of gas through to the common user pipeline," Allman-Ward said. "The Turks have already built gas pipelines to the border. It does not take very much additional effort to connect the whole [gas] system together. We have for years been flagging the massive resources we have available in our Khor Mor and Chemchemal fields in in the Kurdistan region and the potential for these fields to supply markets not just domestically in Kurdistan and in Iraq as a whole but also to further markets in Turkey and the European Union," he added. The semi-autonomous Kurdistan region has also previously held talks with the federal government in Baghdad on potential gas supply. Federal gas needs Federal Iraq is in dire need of domestic gas supplies because most of its production is pumped with oil and is flared, prompting Baghdad to rely on Iranian gas and electricity supply to plug power shortages. However, Iraq is receiving US waivers to continue importing Iranian energy, which has been subject to sanctions reimposed by Washington under the previous administration of Donald Trump in 2018. "We have flagged to the federal government and the ministry of oil that we have spare capacity available from our Khor Mor field to potentially supply the federal government through the Jambur pipeline, which originally was purposed for condensate export but can be repurposed for gas export," Allman-Ward said. "Discussions have taken place, but they have not concluded yet." In April 2007, Dana Gas and Crescent Petroleum entered into an agreement with the Kurdistan Regional Government for exclusive rights to appraise, develop, produce, market and sell petroleum and gas from the Khor Mor and Chemchemal fields in the region. The other shareholders in the Pearl consortium are OMV, MOL and RWE with a 10% stake each.

The Losses of the KRG’s Oil Sales

Draw Media The Kurdistan Regional Government (KRG) has sold more than one billion and 100 million barrels of oil in the past eight years but has less than 31 trillion dinars in revenue. This is at a time when the region has lost 81 trillion dinars in Iraq’s public budget due to the independent sale of oil and has also owed 45 trillion dinars. The region's share in Iraq's budget Kurdistan Region's share of Iraq's public budget between 2014 and 2021 was 97 trillion dinars, of which only 15 trillion dinars were sent to the region, meaning 81 trillion dinars were withheld from the region's share. First: The region's share of Iraq's public budget, (2004-2014) Before the independent economic decision, oil was sold independently by the regional government, in Iraq's public budget, as a monthly share, a large amount of money was sent from Baghdad to the region. So from 2004 till 2014, the federal government had sent 17 percent of the public budget to the region. According to sources, the money that KRG received from the Iraqi federal government, continued from 2004 to 2014, was 75 billion and 177 million dollars. According to sources, the money that KRG received from the Iraqi federal government, continued from 2004 to 2014, was 75 billion and 177 million dollars. In 2014, due to the ISIS war and the problems of forming Iraq’s central government, there was no budget law, spending power was given to the ministries, and the region's share was cut from here. According to a study published in October 2020 by the Office of Research and Investigation of the Iraqi House of Representatives, the Kurdistan Region Government received 96 trillion, 196 billion, and 503 million dinars from Baghdad, from 2005 to 2019. In return, the KRG returned only 2 trillion, 273 billion, and 430 million dinars from its income to the central government in Baghdad. Second, the region's share of Iraq's public budget, (2014-2021) Since 2014, the situation has been changed, although the Kurdistan region's share has been determined in the 2014-2021 budget laws, the region has never received its share from the Iraqi budget. That was all due to the region's decision to follow independent economic policy, and not submit oil to the central government. Region's share of Iraq's budget, (2014-2021) * The Iraqi government did not have a budget law in 2020. * In The first three months of 2020, 453 billion dinars were sent from Bagdad to the Kurdistan Region every month. * The first six months of 2021 passed, but the Iraqi government did not send any budget to the region. In the second six months of 2021, the Iraqi government has sent 200 billion dinars monthly as advances to the Kurdistan Region. *The Kurdistan region's share between 2014 and 2021 was 97 trillion, 540 billion, and 995 million dinars. *Only 15 trillion, 929 billion, and 533 million dinars have been sent to the Kurdistan Region. *The amount of 81 trillion, 611 billion, and 422 million dinars have been withheld from the Kurdistan region's share by the Iraqi central government. Third, the KRG’s income of oil independently Within the framework of an independent economic policy, the Kurdistan Regional Government exported more than 1 billion and 100 million barrels of oil from 2014 to the end of 2021. The average price of a barrel of oil was 54$ in that period. In general, without any expenses and costs, the value of the amount of oil that KRG sold was more than $55 billion. Fourth; the result of independent oil sales If we compare the income that the regional government has made through the sale of oil, with the portion of Iraq's budget that KRG lost, then: * Since 2014, the Iraqi government has withheld 81 trillion dinars, 611 billion, and 422 million dinars of Kurdistan’s share. * The Kurdistan Regional Government (KRG) was able to export 1 billion, 103 million, and 857,335 barrels of oil within 8 years, and get 30 trillion, 863 billion 374 million, and 220,231 dinars after coasts, expenses, and selling it for a cheaper price. *The difference between independent oil sales and Iraq's general budget is 50 trillion, 748 billion, and 47 million 779,769 dinars. Fifth: Accumulated public debt Due to the continued crises from 2014 to 2020, the Kurdistan Region has been subject to a large amount of international and local debts. The amount of these debts is more than 31 billion U.S. dollars. A large portion of the debt goes back to the Kurdistan Regional Governments' previous cabinets.

After Oil, Erdogan Asks for the KRG's Gas

Draw Media After the oil, Erdogan asks for gas in the Kurdistan Region, Nechirvan Barzani secured his position with the region's oil. After a while of marginalization, he returned to the field and began a new deal with Erdogan. While oil has now become a major issue between the region and Baghdad. It is not clear how the gas deal will affect the region in the future. More details are in this report. Turkey wants the gas Suddenly, he arrived in Ankara and met with President Recep Tayyip Erdogan. Nechirvan Barzani's visit was so sudden that even his media did not know it, and they reported it from the Turkish president’s website. The KRG's presidency website did not provide any information about the Nechirvan Barzani's meeting with Erdogan, but Erdogan told journalists on the sidelines of his visit to Ukraine, that he and Nechirvan Barzani had discussed sending natural gas from the Kurdistan Region to Turkey. Nechirvan Barzani told Erdogan, "I will do whatever I can and discuss the gas deal with the central Iraqi government." Gas after oil Nechirvan Barzani, the engineer of the 50-year deal with Turkey to export Kurdish oil. Referring to the agreement the Kurdistan Region delivers its oil pipeline through Jihan port to Countries, such as Italy, Spain, Greece, Israel, Bulgaria, and Croatia. After oil, Nechirvan Barzani wants to send the KRG natural gas to Turkey, which is happening at a time, when European countries are afraid of facing a natural gas crisis because of the possibility of a Russian attack on Ukraine, and Russia, as the world's largest gas exporter, would stop sending gas to Europe. According to the official website of the Ministry of Natural Resources, the Kurdistan Region has 200 trillion cubic feet (5.7 trillion cubic meters) of natural gas reserves, which are 3 percent of the world's gas reserves. But this is not proven yet, as the region's proven rate of natural gas reserves is only 25 trillion cubic feet, according to U.S. energy reports. In a 2020 report, the Oil Price, Special Issue on Global Market for Crude Oil, mentions that only 10 trillion cubic feet of natural gas has been found and is being used, which is now produced within the borders of the PUK-controlled area in the Kormor oil field. The division of gas between KDP and PUK Natural gas reserves are divided into PUK and KDP-controlled territories, as follows: Reserves of the PUK-controlled territories • Kormor Field: 8 trillion and 200 billion cubic feet Chamchamal Field: 4 trillion and 400 billion cubic feet • Miran Field: 3 trillion and 46 billion cubic feet • Plkana Field: A trillion and 600 billion cubic feet Reserves of the KDP-controlled territories • Bna Bawe field: 7 trillion and 100 billion cubic feet • Khormala field: 2 trillion and 260 billion cubic meters • Shekhan field: 900 billion cubic feet • Pirmam field: 880 billion cubic feet Nechirvan Returns to the Political Activities After 17 years of government leadership, in mid-2019, as part of a family agreement, Nechirvan Barzani left the prime minister position for Masrour Barzani, his cousin, and instead, Masoud Barzani vacated the post of the Kurdistan Region President for Nechirvan Barzani. Since he took the post of President of the Kurdistan Region, Nechirvan Barzani has been marginalized, and foreign delegations have visited Masoud Barzani as before. But on the presidency issue, When Iran tightened its pressure on the KDP, Nechirvan Barzani's role was revealed when Masoud Barzani sent him as his representative to Najaf to discuss with Muqtada Al-Sadr. After Iran, Turkey also gave Nechirvan Barzani another chance to return to the political field. Nechirvan Barzani's visit to Erdogan gave Nechirvan Barzani another chance to regain Kurdistan Region's energy case to Nechirvan Barzani.