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Kurdistan Oil & Gas Development

A collection of threads on topics that get updated regularly :
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Tue Apr 28, 2020 3:25 pm

Oil low price unleashes
unprecedented crisis


The agreement reached two weeks ago, in the OPEC + Russia, and prompted by pressures from the President of the United States, to cut production by almost 10 million barrels from May, was followed by Trump's statements that the US would contribute to a further drop in production

However, the sharp drop in international demand, as a result of the international coronavirus pandemic, has been compounded by congestion in storage capacity, which is why the announced reduction in oil production is still a long way from stabilizing prices in the market.

Thus, last Monday, 20 April, the Texas-type oil, a benchmark in the US, experienced the unusual situation of trading at less than $ 40 a barrel, that is to say: one almost had to pay in order to sell and transport it.

Trump's promise that the US Government would fill all its strategic storage capacity led to a positive return for the Texas barrel by Wednesday, and the European benchmark Brent rate saw its price rising slightly.

In any case, the average price of crude oil at the weekend barely reached $ 20 per barrel, so all producing countries, without exception, extracted their crude oil at a loss and no longer had the capacity to store it.

According to specialists, the current conditions are far from changing in the short term, which is why they point out that the first bankruptcies of the current system should occur in the North American companies that produce crude oil through the controversial method of fracking, which has the highest extraction cost, which which could entail a strong chain of financial failures in North American banks.

The short-term solution, to avoid a chain of bankruptcies, seems to pass through a possible intervention by the North American government, as a rescue of the three big private fracking companies.

A state intervention that would not only contravene the neoliberal policy that the US advocates, but would also have a difficult financial cost to calculate and limited sustainability, given that the conditions of the international market, as well as the demand, still seem very far from recovering some 'normality'.
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Re: Kurdistan Oil & Gas Development

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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Thu May 07, 2020 8:03 pm

Kurdistan should seek
independence from oil and gas

By Prsha Abubakr Othman

Like the rest of the world, Kurdistan is facing a convergence of crises. COVID-19 has brought the economy to a halt, and even if it were to start up again tomorrow, the oil that forms the cornerstone of our economy has become practically worthless

Recent history offers no shortage of lessons: threats coming from Baghdad and powerful neighbors, who have at various times restricted fuel, oil trade and electricity to the region to exert political influence. Add to that erratic oil price fluctuations, and you have a picture of a region whose energy security has historically been hostage to the geopolitical whims of its neighbours.

What a misfortune it is that with all the beauty that surrounds us in the Kurdistan Region, with its lush green mountains, flat and fertile plains and rivers; it seems that only dark days lie ahead of us. What we need now is some common sense solutions to the economic woes that are plaguing us. Perhaps the answer lies right in front of our eyes.

The solution is for Kurdistan to make a bold investment in renewable energy that will make it a global example of economic recovery. Not only does such a visionary strategy pose major benefits to the health of people and planet, it makes economic sense. Renewable energy is the most cost-effective way to get past not only this oil crash, but also the next one. It can provide electricity, create more employment opportunities, enhance human welfare, and increase incomes.

While oil has always symbolized the Kurdistan Region’s prosperity, it has also symbolized its dependence. Currently, the global oil industry is in its worst crisis since the great depression. The value of oil has plummeted with the debacle over production quotas between Russia and OPEC countries. To make matters worse, the new OPEC+ cut of 9.7 million barrels a day is not expected to be enough to allow the world’s oversupply to drain away — global demand has dropped to its lowest in 25 years.

Though the current crisis only adds urgency, the pressure to go beyond oil and gas started mounting a long time ago. For starters, Kurdistan is not self-sufficient in its energy needs. It’s dependent on neighbours to provide enough energy for without natural gas and hydropower from Turkey and electricity from Iran, Kurdistan cannot keep the lights on. As the KRG’s Electricity Minister Kamal Mohammed Saleh pointed out, the power needs of the Kurdistan Region are 7000MW, but its actual production is half that amount. This huge demand is impossible to be met by poor electricity production.

Kurdistan’s economic struggles are inherently tied to its political entanglements. When the region lost the Kirkuk oil fields to Baghdad after the abortive attempt at gaining its independence through referendum, it only took pulling the strings of oil to get the KRG to bend: Iran banned fuel trade in the region, while Turkey threatened oil flow and imposed a blockade.

According to the Ministry of Planning in Kurdistan Region, new electricity development projects have totaled around five billion dollars. Except for the two hydropower stations in Kurdistan, too little had been done so far in support of the energy transition.

Renewable energy could produce a considerable portion of the region’s domestic electricity needs and overcome the electricity shortages. According to a 2017 study that assessed the possibility of applying renewable energy in the Kurdistan Region, “The initial cost of renewable energy building plants cost $1.16 billion, which is almost 20% of that budget and gives 97% to 99% reduction in CO2 emission in the region.”

The Kurdistan Regional Government has made a commitment alongside Baghdad to trim its oil output in accordance with OPEC agreements. This still won’t be enough to ensure economic growth and save Kurdistan’s people from imminent economic shortages. Oil has had its chance to prove itself worthy of our trust in making it the sole driver of prosperity. It’s time to admit that it has failed, and act now to invest in sustainable energy.

Policymakers can and must address the current crisis using the natural resources which are already available. The Kurdistan Region’s unique geographical location gives it favorable conditions to replace fossil fuels with three key, abundant renewable energy sources — wind, solar, and hydropower.

Mountainous areas are ideal for wind turbine developments, since the wind speed is high, regular and reliable there. Mountains in the north part of the region create wind corridors with high wind speeds.

High average sunshine makes it suitable for solar power investment, especially in the south part of Kurdistan Region. For instance, the Garmiyan district can be a great place for this purpose because of its very high light intensity throughout the year, especially in summer, compared to other places in Kurdistan.

By acting quickly to seize the opportunity presented by the crash of oil prices, the government can carry out energy sector reforms to gradually make the shift toward renewable resources. In the immediate term, this can start meeting Kurdistan’s energy demand through domestic production, and in the long term, end its reliance on oil.

Such a shift has transformative potential for the region, but it requires the government of Kurdistan to develop a national strategy that treats energy security not only as an afterthought, but the centerpiece of its long-term planning.

At first glance, this will likely spark panic among the oil companies, policy makers, and private sector interests.

The good news is that we are not alone. An oil company is an energy company, after all — and many of the world’s biggest oil companies have already seen the writing on the wall and started investing in renewable energy. These steps have been small, but they show that there is an economic rationale for preparing for energy transition, and that the energy industry is changing.

The fact that Shell, Equinor, and Total have planned backup frameworks beyond oil shows that even oil giants are not banking completely on oil. Taken together, the world’s top 25 oil companies made a decisive move into renewable energy and invested $3.5 billion in low carbon energy technology in 2018 alone.

To date, the Kurdistan Regional Government has more than 70 oil and gas contracts with international companies. Its strategy has always been to attract the biggest investment in order to achieve economic sustainability. It also has seeded renewable investments in solar energy that have the capacity of producing 25 megawatts of electricity for each station, in Erbil, Sulaimani, and Duhok — if and when they finally become operational.

But policymakers have been blind to what it is they are investing in, and whether they represent the best of intentions for the Kurdish people. The KRG should partner with oil companies that are interested in Kurdistan not only for its oil, but with the prosperity of its people in mind.

Investment in renewable energy must be seen not just as short term investment, but for the long term as well. Ramping up investment in solar energy, wind power, geothermal energy, and hydropower plants to kick start economic growth and environmental and social benefit will take vision and enthusiasm. For that, the government should reach out and listen to talented youth in the energy sector to join in the race to find new solutions that will benefit their people. At the same time, policymakers should incentivize the private sector, and individuals with the means to privately invest in renewable energy, notably solar and wind power. Installing solar panels in people’s homes makes families more energy independent on both a micro and macro level.

With a green new vision, Kurdistan can emerge from this crisis by transforming into a haven for sustainable power that will make it an example of energy independence for the whole world to follow.

Prsha Abubakr Othman is a graduating Energy Engineering student at the American University of Iraq–Sulaimani (AUIS). She is a founder and president of the AUIS Society of Petroleum Engineers and is currently working on a project designed to inspire women to enter STEM. She is a leadership exchange alumni from the U.S Department of State.

https://www.rudaw.net/english/opinion/g ... n-06052020
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Tue May 26, 2020 6:37 pm

Kurdistan making
money on oil production


The Kurdistan Region and wider Middle East could stand to benefit from a global oil price collapse exacerbated by the COVID-19 pandemic, according to a Britain-based economic analyst

Speaking to Rudaw TV via video call on Thursday, analyst Nasser Kalawoun said that if a decrease in energy consumption is induced by a second wave of COVID-19 and oil prices remain at around $35 per barrel, “there will be a deep cut quickly, and this is a problem for producers” in the UK.

“There is at least a third of the production in the North Sea that, if the price [of a barrel of oil] stays around $35, cannot be commercially produced from the UK," Kalawoun continued. "So, this can benefit Iraq and Kurdistan, perhaps for 100,000 barrels [per day]...it can favour Middle Eastern producers."

Brent crude oil prices currently sit at around $36 per barrel, while the OPEC crude oil price is around $28.

Continued spread of the virus and suspension of most flights mean oil prices are unlikely to climb significantly in the forseeable future - but value could creep up to $40 a barrel, Kalawoun said.

https://www.rudaw.net/english/business/21052020
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Fri Sep 04, 2020 2:25 am

US funds reconstruction in Syria

The United States is funding a number of reconstruction and agriculture projects in Syria’s troubled Deir ez-Zor province, home to oil fields Washington wants to control

“To support the agricultural sector in Deir ez-Zour, the U.S. Department of State and USAID are rehabilitating bakeries and mills, expanding access to subsidized bread for nearly 30,000 people,” the US embassy in Damascus announced on Facebook on Wednesday.

The US is also handing out seeds, fertilizer, drip irrigation equipment, and livestock to farming households, is aiding firefighters, and is rehabilitating irrigation canals that feed over 800 hectares of land, and a drinking water station in Hajin. Repairs to canals off the Euphrates River are expected to benefit 350,000 people in Deir ez-Zor and 50,000 people in Hasaka, to the north, according to the embassy statement.

It was in Deir ez-Zor that the Islamic State (ISIS) made its last stand before its so-called caliphate fell to the Syrian Democratic Forces (SDF) and the global coalition in 2019. The eastern province, which borders Iraq, is home to Syria’s largest oil reserves. Holding onto that oil is US President Donald Trump’s main goal in Syria now that ISIS is defeated.

American troops in Syria are “down to almost nothing, except we kept the oil,” Trump said in Washington last month.

US oil company Delta Crescent Energy LLC has reportedly struck a deal with the Kurdish administration of northeast Syria (Rojava) for that crude. The agreement is to repair and develop oil fields that were damaged during ISIS’ reign. Only 20 percent of the oil fields were still operational after the war with ISIS, according to senior Rojava politician Aldar Khalil.

Relations are strained, however, between the Kurdish-led administration and the Arab tribes of Deir ez-Zor. Normally simmering tensions exploded this summer after a high profile assassination of a tribal leader. Security is a concern in the province that borders regime-held areas and where small groups of ISIS militants remain active.

Intense talks are ongoing between senior Kurds, including SDF commander Mazloum Abdi who visited Deir ez-Zor in August, and tribal leaders, with the US military often playing a mediation role.

https://www.rudaw.net/english/middleeas ... /030920201
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Mon Oct 26, 2020 11:50 pm

Dana Gas to amp up investments

Dana Gas announced that it will increase its investments in the Kurdistan Region by selling some of its assets in Egypt it will begin implementing its plans to increase natural gas production

"We will expand our investments in world-class refineries in the Kurdistan Region by selling most of our investments in Egypt to Egypt-based IPR Wastani for $ 236 million," Patrick Allman Ward, General Manager of Dana Gas, said in a statement.

Patrick Allman Ward stated that the sale of their investments in Egypt is a strategic transformation of their companies and said, "We want to concentrate more on our refineries in the Kurdistan Region, currently with a capacity of one billion barrels of oil production and more suitable for increasing existing capacity and production."

The Dana Gas company, which produces 400 million cubic feet of natural gas (TFC) per day in the Khor Mor refinery in the Kurdistan Region, plans to increase its natural gas production to 650 million cubic meters per day in 2020 and 900 million cubic meters of natural gas daily by 2023.

https://www.rudaw.net/english/kurdistan/261020201
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Thu Nov 12, 2020 7:04 pm

Kurdish MPs storm out of parliament

Kurdish MPs stormed out of an Iraqi parliament session on a fiscal debt bill passed this morning, over requirements for the Kurdistan Region to hand over an unspecified amount of oil revenue to Baghdad in return for its monthly share of the federal budget

The Iraqi parliament met on Wednesday afternoon to discuss the Fiscal Deficit Coverage Bill, which was set to decide the fate of Iraqi civil servant salaries, in addition to salaries of the Kurdistan Region employees for the last two months of the year. The session ended at 6am on Thursday, with the bill passed by a majority vote.

Baghdad will now borrow 12 trillion Iraqi dinars (10 billion USD) from the central bank in an attempt to cover the fiscal deficit and pay civil sector employees. Initially, Kadhimi had asked the finance committee for 30 trillion dinars ($25 billion USD) – seen as a “waste of money” by some MPs.

Members of the Kurdish parties decided to leave the parliamentary session after arguments with Shiite bloc members regarding the 320 billion dinar ($268 million) monthly budget share of the Kurdistan Region.

“The Shiite bloc and the parliament speaker told us to attend the meeting and they will delay voting on that section concerning the Kurdistan Region,” Viyan Sabri told Rudaw’s Nalin Hassan on Wednesday.

“However when we accepted and entered the meeting, they disregarded their own statement.”

According to the legislation passed, the Kurdistan Region will have to send monthly oil income to Baghdad, the amount of which will be decided between the Kurdistan Regional Government (KRG) and the State Organization for Marketing of Oil (SOMO) in return for the Region’s share of the federal budget - which Kurdish MPs say was not part of the original bill.

Committee members of Al-Sadiqoun Bloc [Asaib Ahl al-Haq], Sairoon Alliance, and State of Law Coalition told the parliament’s finance committee that they would not agree on a single dinar being sent over to Kurdistan Region if the KRG does not deliver oil revenue,” said Ahmed Haji Rashid, a member of the parliament’s finance committee.

Control of oil revenues has long been a thorny issue between Erbil and Baghdad. The KRG has operated an independent oil and gas sector since 2006 and later began exporting its oil to the international market via a pipeline through Turkey – angering Baghdad, who then cut Erbil’s budget share to zero.

The KRG has struggled to pay civil servant salaries on time and in full for five years, due to an economic crisis, the war against the Islamic State (ISIS) and a drop in oil prices

Kurdish officials have openly said they cannot pay civil servants without money from the federal government. The KRG has not paid public sector employees on time and in full since Baghdad stopped sending funds in April.

Erbil says it is entitled to its 12.67% share of federal funds, as stipulated by Iraq’s 2019 budget law, while Baghdad says the KRG has not lived up to its end of the deal that includes turning over 250,000 barrels of oil daily SOMO.

Erbil and Baghdad have continued to bicker over various versions of the oil-for-budget agreement, with the KRG receiving a share of the 2019 federal budget yet failing to hand over a single barrel of oil.

https://www.rudaw.net/english/middleeast/iraq/12112020
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Fri Jan 29, 2021 12:02 am

KRG must hand over all oil to Baghdad

MPs from leading blocs in the Iraqi parliament have spoken out on the Kurdistan Region’s oil exports to Baghdad, key to ongoing budget disputes between Erbil and Baghdad, saying Erbil must hand over all of its oil to receive federal funds

“Iraq’s revenue is federal. The oil of Basra, the Kurdistan Region, and any other province shall be under the supervision of the Iraqi government, and the Kurdistan Region should abide by this,” Alaa Rubai, an MP from the Sairoon alliance - the parliament’s biggest political bloc, led by Shiite cleric Muqtada al-Sadr - told Rudaw’s Mustafa Goran on Wednesday.

Muhammad Baldawi, an MP from the Shiite Al-Sadiqoun bloc, a party affiliated with the Iran-backed Asa’ib Ahl al-Haq militia, also said that the Kurdistan Region needs to hand over all revenues to the federal government.

“Only then might we send the region’s full share of the budget,” he said.

The 2021 budget bill was approved by Iraq’s Council of Ministers on December 21. Parliament has met twice to discuss the bill.

The Kurdistan Region’s share of the federal budget has attracted great opposition from Shiite MPs in the parliament.

On Saturday, more than 100 Iraqi MPs, mostly Shiite, signed a letter asking that the 2021 budget bill obliges the Kurdistan Region to hand over all its oil to the State Organization of Marketing of Oil (SOMO) in exchange for federal funds.

On December 22, Deputy Prime Minister of the Kurdistan Region Qubad Talabani announced Erbil and Baghdad had reached a deal on Iraq’s Federal Budget Bill for 2021 after months of disagreements. As a result of budget disputes and low oil prices, the Region’s civil servants went unpaid for most of 2020 – prompting deadly protests across the Kurdistan Region.

The deal “keeps the common interest of all Iraqi people, including the people of Kurdistan Region,” Talabani said at the time.

Talabani arrived in Baghdad on Monday to lead a delegation meeting with the Iraqi parliament regarding Erbil’s share of the federal budget, which has been a long-standing point of contention between the two governments.

The delegation met with President Barham Salih, and deputy speakers of the parliament on Monday to discuss Kurdistan Region’s share of the budget.

Deputy speaker of the Iraqi parliament Basheer Haddad told Goran on Wednesday that the delegation will return to Baghdad next week “to finalize their talks with the parliament and reach a deal that benefits both sides.”

Baghdad failed to pass a budget in 2020 because of political turmoil, record low oil prices, and the coronavirus pandemic. In November, Iraqi lawmakers passed the Fiscal Deficit Coverage Bill approving loans to cover civil servant salaries for the last two months of the year.

The bill passed with a majority vote, despite a walkout staged by Kurdish MPs, angered that Erbil is obliged to hand over an unspecified amount of oil in exchange for funds – a clause they said was not in the original bill.

In December 2019, Baghdad agreed to send Erbil a 12.67 percent share of the federal budget in exchange for 250,000 barrels of oil per day. Neither side fully abided by the agreement, however.

https://www.rudaw.net/english/middleeast/iraq/270120213
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Mon Feb 01, 2021 1:40 am

KRG needs oil deal with Baghdad

A senior Kurdish politician on Sunday argued that the Kurdistan Regional Government (KRG) should reach a deal with Baghdad over the exchange of oil for its share of the federal budget, claiming that the resource has not been as economically valuable as they had hoped

“A lot of money has gone to companies, a lot of money went to Turkey, and oil was sold cheap, so Kurds have not benefited economically from the selling oil as much as they intended,” Mahmood Othman, a former member of Iraqi parliament, told Rudaw’s Sangar Abdulrahman on Sunday.

“Kurdistan should review their oil dossier, not only for [the sake of] Baghdad, but for themselves too. They should be more transparent, and work toward achieving economic benefit for the Kurdistan Region,” said the former head of the Kurdistan Socialist Party. “In case they see that the advantage is not that big, they should come up with a deal with Baghdad so they can abide by with [State Organization of Marketing of Oil] SOMO.”

Control of the Kurdistan Region’s oil revenue has long been a thorny issue between Erbil and Baghdad. The KRG has operated an independent oil and gas sector since 2006 and later began exporting its oil to the international market via a pipeline through Turkey in 2013.

Years of tensions over the independent oil sales came to a head in 2014 when then-Prime Minister Maliki suspended the sending of the Kurdistan Region’s share of the federal budget – leaving hundreds of thousands of public sector employees with unpaid salaries.

That same year, the Peshmerga took control of security in the disputed territory of Kirkuk, allowing the KRG to also seize control of the province’s bountiful oilfields.

When Iraqi forces retook the area in October 2017, the KRG lost around half of its oil revenue, and the government was compelled to suspend exports via Turkey for several months.

In December 2019, Baghdad agreed to send Erbil a 12.67 percent share of the federal budget in exchange for 250,000 barrels of oil per day. However, neither side fully abided by the agreement, and the federal money was frozen again.

In regard to accusations that Shiite parties are not cooperating with KRG to reach a deal, Othman claimed that they have always tried to “reduce the authority of the KRG” and “increase the federal government’s control over the region’s revenue.”

“Apart from Ayad Allawi’s cabinet, every other cabinet that has come after it has tried to reduce the budget of the Kurdistan Region, reduce its authority and take over its oil sector,” Othman said. “It is true that many of these people were once allies with the Kurds, but their interest is more important to them, Iran’s influence is more important, and the idea of centralized power is more important to them, and that is why they are trying to reduce the power of the KRG politically, economically, and in terms of security.”

“Unfortunately the international community is not playing a great role in this matter, because in Iraq, countries like America and Russia do not have the real influence, but Iran does, and Iran’s relationship with the Kurdistan Region is not in the best position now,” he added.

Baghdad failed to pass a budget in 2020 because of political turmoil, record low oil prices, and the coronavirus pandemic. In November, Iraqi lawmakers passed the Fiscal Deficit Coverage Bill approving loans to cover civil servant salaries for the last two months of the year.

The bill passed with a majority vote, despite a walkout staged by Kurdish MPs angered that Erbil is obliged to hand over an unspecified amount of oil in exchange for funds – a clause they said was not in the original bill.

The 2021 budget bill was approved by Iraq’s Council of Ministers on December 21. Parliament has met twice to discuss the bill.

The Kurdistan Region’s share of the federal budget has attracted great opposition from Shiite MPs in the parliament.

On Saturday, more than 100 Iraqi MPs, mostly Shiite, signed a letter asking that the 2021 budget bill obliges the Kurdistan Region to hand over all its oil to the SOMO in exchange for federal funds.

“Iraq’s revenue is federal. The oil of Basra, the Kurdistan Region, and any other province shall be under the supervision of the Iraqi government, and the Kurdistan Region should abide by this,” Alaa Rubai, an MP from the Sairoon alliance - the parliament’s biggest political bloc, led by Shiite cleric Muqtada al-Sadr - told Rudaw’s Mustafa Goran on Wednesday.

KRG delegation, led by deputy PM Qubad Talabani returned to Baghdad today to finalize negotiations with Iraqi’ parliament parties and the financial committee, after not reaching a final agreement in their last visit earlier this month.

https://www.rudaw.net/english/middleeast/iraq/310120211
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Tue Feb 02, 2021 12:07 am

Iraq oil exports slightly up for January

The Iraqi government in January exported over 88 million barrels of oil, slightly more than the previous month, according to new figures from the oil ministry

The ministry said in a statement on Monday that the State Organization for Marketing of Oil (SOMO) exported 88.9 million barrels in January, adding that the average export per day was 2.8 million barrels.

SOMO exported 88.2 million barrels in December and seven million less in November.

The ministry also said in the statement that the exports brought a total revenue of $4.7 billion, selling a barrel at an average price of $53.29.

Iraq is financially dependent on oil revenues and low prices have worsened the country’s economic woes. Baghdad borrowed 12 trillion Iraqi dinars ($10 billion) from the central bank to cover the fiscal deficit and pay civil sector employees.

Currently, Iraqi political parties are in talks to pass the 2021 budget bill but there has been little progress due to differences, including Kurdistan Region’s share of the budget. There have also been disagreements over the average price for a barrel of oil should be set at.

https://www.rudaw.net/english/middleeast/iraq/010220211
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Sat Feb 06, 2021 4:15 pm

Qubad Talabani calls for
new oil company in Iraq


Deputy prime minister of the Kurdistan Region Qubad Talabani on Friday called for the establishment of a new state oil company with Kurds at the helm

Image

“We hope to build a new oil and finance relationship with the central government, and we have faith that this will be achieved step by step, until we reach the establishment of a new SOMO company in which there are Kurdish members on the Board of Directors,” Talabani told Iraqi National News Center, referring to the State Organization for Marketing of Oil (SOMO).

SOMO, based in Baghdad, is a state-owned company responsible for the exporting and marketing of Iraqi oil. Rudaw English was unable to reach officials able to comment on the present state of leadership in the company.

“However, we are still at the beginning and more work needs to be done to increase trust between the two parties,” added the deputy PM.

The control of oil revenue has long been a thorny issue between Erbil and Baghdad. The KRG has operated an independent oil and gas sector since 2006 and later began exporting its oil to the international market via a pipeline through Turkey in 2013.

Years of tensions over the independent oil sales came to a head in 2014 when then-PM Maliki suspended the Kurdistan Region’s share of the federal budget – leaving hundreds of thousands of public sector employees unpaid for months.

In December 2019, Baghdad agreed to send Erbil a 12.67 percent share of the federal budget in exchange for 250,000 barrels of oil per day. However, neither side fully abided by the agreement, and the federal money was frozen again.

Despite scores of meetings between Erbil and Baghdad over the last year, both governments have failed to reach a concrete deal to end the long-lasting issue.

KRG delegations, mostly led by Talabani, have made several visits to Baghdad to return to finalize negotiations with Iraqi political parties represented in the parliament, as well as its financial committee, after not reaching a final agreement in their visit last month.

Their last visit was on Sunday, but they returned to Kurdistan on Wednesday without coming to a fruitful end.

Iraq’s Council of Ministers approved the 2021 budget bill on December 21, 2020. Parliament has met twice to discuss the bill, but has yet to pass it.

https://www.rudaw.net/english/middleeast/iraq/06022021
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Thu Jul 01, 2021 7:29 pm

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Iraq $6 billion in June oil sales

The figures for June’s oil exports and revenue were announced by the Iraqi Ministry of Oil on Thursday, with revenues exceeding six billion dollars

More than 83 million barrels of crude oil were exported in June from oil fields in central and southern Iraq, and three million barrels from Kirkuk through Ceyhan port, bringing in $6.14 billion in revenues, the ministry revealed.

The average price per barrel was $70.77.

Iraq has almost exclusively relied on oil revenues since the US invasion in 2003. The country’s economy mainly depends on exporting oil. In return, it imports gas and refined products, primarily from Iran.

As part of the Organisation of Petroleum Exporting Countries (OPEC) it had to cut its levels of oil production last year, but the alliance has now started to increase production as global demand rises.

Earlier in June, the Ministry of Oil announced that it will reduce the value of importing oil derivatives by $2 billion in the near future.

https://www.rudaw.net/english/middleeast/iraq/010720211
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Thu Sep 09, 2021 12:31 am

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Expansion of gas production in Kurdistan

The UAE-based Dana Gas and Crescent Petroleum companies signed a financial agreement with the United States to expand gas production in the Kurdistan Region, Dana Gas said on Wednesday

The two companies have “signed a $250 million financing agreement with the U.S. International Development Finance Corporation (“DFC”) to support the gas expansion works currently under way at the Khor Mor gas plant in the Kurdistan Region of Iraq (KRI),” Dana Gas announced in a press release on Wednesday.

The seven-year financing support will support the increase “in gas production capacity by 50% to 690 million standard cubic feet (scf)/day to meet rising demand for clean natural gas for electricity generation and industry in the KRI,” added Dana Gas.

Kurdistan Region Prime Minister Masrour Barzani said he was "delighted" that Dana Gas secured the funding to expand Khor Mor. "This will increase our production of clean, cheap electricity; and create many jobs here in Kurdistan so we can build a better future for our homeland," he tweeted.

The Khor Mor field is jointly operated by Dana Gas and Crescent Petroleum on behalf of the Pearl Petroleum Consortium. They have been operating in the Kurdistan Region since the Kurdistan Regional Government (KRG) began producing oil and gas independently of Baghdad in 2007, and selling independently in 2013.

“DFC’s investment in the Khor Mor expansion will substantially increase access to energy for people all across the Kurdistan Region of Iraq. This highly developmental project represents the United States’ continuing investment in the KRI,” Dev Jagadesan, acting CEO of DFC, said.

In a press release in April, Dana Gas said it produces 440 million cubic feet per day and will invest further. The company also announced a nine percent natural gas production increase in the first quarter of 2021 in comparison to the same period last year.

In December, Dana Gas announced record high production in the Khor Mor plant, resuming expansion plans halted by coronavirus in March.

The KRG has struggled with economic woes for many years and has struggled to pay the oil companies operating in the Kurdistan Region. However, it has managed to pay the companies regular payments in recent months as the economic impact of COVID-19 lessens and oil prices increase.

https://www.rudaw.net/english/kurdistan/080920212
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Thu Sep 09, 2021 11:35 pm

Gas expansion project

The expansion of a gas production agreement between oil and gas companies and the United States will bring back trust to the Kurdistan Region’s energy sector amid its financial woes and the withdrawal of big oil companies, a researcher told Rudaw

“Some of the big companies like Exxon had gotten out because of the financial issues in the Kurdistan Region. This decreased some of the trust in the Kurdistan Region’s oil sector. This $250 million deal, which is from an agency of the American government to a company that works in the Kurdistan Region, will generally bring back trust to this sector,” Bilal Wahab, a researcher at the Washington Institute, told Rudaw.

The UAE-based Dana Gas and Crescent Petroleum companies “signed a $250 million financing agreement with the U.S. International Development Finance Corporation (“DFC”) to support the gas expansion works currently under way at the Khor Mor gas plant in the Kurdistan Region of Iraq (KRI),” they announced on Wednesday.

The project is to be finished by April 2023, “that will result in resolving the electricity issue in the Kurdistan region to a good extent, and another point is the Kurdistan Region might be able to sell gas or electricity directly to southern Iraq which is another source of revenue, that’s why in that regard it’s good news for the economic sector in the Kurdistan Region,” added Wahab.

The Khor Mor field is jointly operated by Dana Gas and Crescent Petroleum on behalf of the Pearl Petroleum Consortium. They have been operating in the Kurdistan Region since the Kurdistan Regional Government (KRG) began producing oil and gas independently of Baghdad in 2007, and selling independently in 2013.

"We are confident that the gas expansion plans we have in place will enable 24-hour electricity in the Kurdistan Region … We have discovered, thanks to our investment, enough gas resources in the fields of Khor Mor and Chamchamal to meet the full needs of the Kurdistan Region, not only for electricity but to support local industry," CEO of Crescent Petroleum and Managing Director of Dana Gas, Majid Jafar told Rudaw's Omar Moradi in an interview on June 13.

    I am delighted to hear that @DFCgov's agreement with Dana Gas has secured $250m to expand the KRI’s Khor Mor gas plant.

    This will increase our production of clean, cheap electricity; and create many jobs here in Kurdistan so we can build a better future for our homeland.
    — Masrour Barzani پابەندین# (@masrour_barzani) September 8, 2021
The KRG has struggled with economic woes for many years and paying the oil companies operating in the Kurdistan Region. However, it has managed to pay the companies regular payments in recent months as the economic impact of COVID-19 lessens and oil prices increase.

In a press release in April, Dana Gas said it produces 440 million cubic feet per day and will invest further. The company also announced a nine percent natural gas production increase in the first quarter of 2021 in comparison to the same period last year.

In December, Dana Gas announced record high production in the Khor Mor plant, resuming expansion plans halted by coronavirus in March.

https://www.rudaw.net/english/kurdistan/090920213
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Thu Dec 09, 2021 1:56 am

KRG made $1.7 billion from oil sales

Kurdistan exported a total of nearly 80 million barrels of crude oil in the first half of 2021, collecting a net $1.7 billion, according to audited data published by the KRG on Wednesday

The report, which covers January 1 to June 30, shows that the KRG exported 77.35 barrels of crude oil through its pipelines - of these, 76,869 million barrels were lifted by buyers from Ceyhan Export Terminal in Turkey. The average price of each barrel was $53.446.

“The KRG has generated revenues of USD 4.1 billion from crude oil export sales during the first half of 2021. After making payments to oil producers, pipeline operators, and repayments to the buyers, the KRG retained net revenues from crude oil sales of US$ 1.737 billion,” read the report.

“The KRG has engaged in discussions with international buyers and oil producers in continuing its efforts to maximize sales prices and reduce production costs to maximize value for the people of Kurdistan,” said the government in a statement which accompanied the report, adding that it acknowledges the positive feedback received from domestic and international stakeholders.”

There are 52 oil blocks in the Kurdistan Region, 16 of them are in production and 15 are in exploration phases. Over 30 international and local companies are working in the sector. Many of the contracts were signed with prepayment schemes and the Kurdistan Region owes a large amount of money.

In late June, the Council of Ministers Secretary General Amanj Raheem told parliament that the KRG owes around $4.3 billion to oil companies. The government has also said it inherited a $28 billion debt from the previous administration.

Kurdistan Region's Minister of Natural Resources Kamal Atroshi in late June attended a parliamentary session to answer questions about the government's finances. He said at the time that 40 percent of the money from oil sales is spent to cover oil sector costs - 20 percent for production costs, 14 percent in payments to international oil companies, and around six percent for transportation.

The KRG's biggest expense by far is its payroll and it has struggled to pay its employees in full and on time for several years because of several factors including budget disputes with Baghdad and low oil prices during the coronavirus pandemic.

The amount of money that the Kurdistan Region’s finance ministry collects from oil revenues is around a third of what it should be receiving, Rewaz Fayaq, speaker of Kurdistan Parliament, told reporters late last month.

“When you think of oil revenue, the amount that enters the finance ministry is not natural, it is $350 million, but when you calculate it is around $900 million,” she said, adding that “Not everything enters the finance ministry.”

https://www.rudaw.net/english/business/08122021
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Re: Kurdistan Oil & Gas Development

PostAuthor: Anthea » Mon Dec 13, 2021 1:27 am

KRG cancels two gas contracts

Genel Energy on Sunday said it has no choice but to accept the Kurdistan Regional Government’s (KRG) cancellation of two gas contracts, claiming they would pursue compensation through international arbitration

A statement released by the energy company said they had no choice but to accept the contract terminations “as a consequence of the KRG’s repudiatory breach and to claim compensation from the KRG.”

“Genel’s claims are substantial and will be brought in a London seated international arbitration,” it added, saying the government had blocked the company’s efforts to develop the fields in accordance to the contracts.

The KRG’s ministry of natural resources later issued a statement, saying the government "strongly denies that it is in repudiatory breach.”

It also disputed the claim that Genel is entitled to compensation.

"The Government will vigorously defend any claim that is brought by Genel, and intends to pursue its own counterclaims for damages resulting from Genel’s renunciation of the” contracts, reads the statement.

The KRG in August served notice that it intends to cancel the Bina Bawi and Miran gas contracts. The UK-listed company contested the termination.

The two fields have large natural gas reserves. The Bina Bawi field holds an estimated 8.2 trillion cubic feet of natural gas and 37 million barrels of oil. Volume estimates at Miran are 6.6 trillion cubic feet of raw gas and 93 million barrels of oil and condensates.

“Genel believes that the KRG has no grounds for issuing its notices of intention to terminate,” the company stated, adding they had agreed in September 2019 to develop the fields and the KRG confirmed it would not cancel the contract while negotiations were ongoing.

Genel Energy operates four fields in the Kurdistan Region – Taq Taq, Sarta, Tawke, and Peshkabir – with total reserves of some 117 million barrels of oil.

https://www.rudaw.net/english/kurdistan/121220211
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