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Shafaq News
an hour ago
- Business
- Shafaq News
Kurdistan responds to Baghdad: A political statement detached from facts
Shafaq News/ The Kurdistan Regional Government (KRG) has sharply rebuked a recent statement issued by Iraq's Ministry of Oil, accusing Baghdad of distorting facts and perpetuating constitutional violations in a deepening dispute over oil production and revenues. Earlier today, the Federal Ministry of Oil called on KRG to adhere to the Constitution, court rulings, and the Budget Law by delivering oil to federal authorities. It warned that ongoing non-compliance 'causes major financial losses to Iraq and damages Iraq's international reputation,' citing alleged 'smuggling' from the Region and vowing legal action. In a detailed press release issued on Thursday, the KRG's Ministry of Natural Resources described the federal ministry's remarks as 'a political statement that is far removed from objective facts,' and held the federal government responsible for policies that have led to economic harm, halted exports, and undermined constitutional principles. "You are the ones who blatantly and continuously violate the constitution and have stood as an obstacle to passing the Federal Oil and Gas Law for many years," the ministry declared, directly challenging Baghdad's narrative. Oil Smuggling and Export Halt The Kurdish Ministry rejected accusations of oil smuggling, calling them a deflection from corruption and smuggling operations occurring 'in other parts of Iraq,' and accusing federal authorities of 'mixing oil and serving the interests of others instead of serving Iraq and its people.' Contrary to Baghdad's assertions, the KRG stated that it was not responsible for the halt in oil exports. Instead, the ministry pointed to a legal dispute initiated by the Federal Ministry of Oil itself against the Turkish Ministry of Energy, which resulted in the suspension of exports on March 25, 2023—causing what it described as losses 'exceeding $25B.' Although a new agreement to resume exports was reached just days later on April 4, 2023, Kurdish officials say federal budgetary conditions made it financially unfeasible for companies to operate. 'The budget law stipulated a production cost of $6 per barrel, prompting most producing companies to cease production under this restriction,' the ministry said. Despite this, the Region delivered over 11.8 million barrels of oil to a refinery working on behalf of the Ministry of Oil. However, 'not a single dinar was paid' for these quantities, prompting companies to halt further deliveries. Disputed Legal and Constitutional Grounds The Kurdish ministry emphasized that Iraq's ongoing oil disputes stem from the federal government's failure to 'respect' constitutional rights and to enact the long-delayed Federal Oil and Gas Law. While noting that a joint committee was formed at the beginning of the current federal government to draft the law, the ministry cited "noticeable delay and procrastination" by Baghdad, suggesting an absence of political will to resolve the issue. Referring to the Kurdistan Region's own Oil and Gas Law No. 22 of 2007, the ministry defended its contracts with international oil companies, claiming that the legality of these contracts has been implicitly affirmed by global investment. 'Had there been any real legal issue with these contracts, globally reputable companies would not have invested billions of dollars in the Region,' the statement noted. Federalism and Cooperation The ministry also reiterated the Region's commitment to constitutional federalism, emphasizing that it has consistently shown readiness to compromise and cooperate, including by agreeing to sell its oil through SOMO, deposit revenues in the state treasury, appoint a consulting firm, and open an escrow account. 'This renders your Ministry's claims about the futility of previous negotiations with the Region completely baseless,' the ministry stated, citing a 'flexibility and willingness to cooperate' that, it said, Baghdad has failed to reciprocate.
Iraqi News
3 days ago
- Business
- Iraqi News
Oil Ministry Announces Drilling and Rehabilitation of 18 Oil Wells in May
The Iraqi Drilling Company, affiliated with the Ministry of Oil, announced on Monday the completion of drilling and rehabilitating 18 oil wells during the month of May. According to a statement from the company's media office, obtained by the Iraqi News Agency (INA), 'In line with the directives of Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul Ghani Sawad, and under the direct supervision of the Deputy Minister for Extraction Affairs, the technical and engineering teams of the Iraqi Drilling Company completed the drilling and rehabilitation of 18 oil wells during May, as part of the company's operational plans to boost national production capacity across various Iraqi oil fields.' The company's Director General, Hassan Mohammed Hassan, stated, as quoted in the statement, that 'the specialized teams succeeded in drilling 6 new oil wells and rehabilitating 12 others, distributed across oil fields from the north to the south of the country, in favor of national extraction companies, in addition to contracts with several international companies operating in Iraq.' He added that 'these achievements reflect the company's efficiency and its ability to execute technical tasks according to scheduled timelines, contributing to the Ministry of Oil's efforts to increase production and enhance operational performance in the fields.'
Arab Times
26-05-2025
- Business
- Arab Times
Kuwait, Saudi strike new oil in joint zone
KUWAIT CITY, May 26 : The Governments of Kuwait and Saudi Arabia have declared new oil discovery in the partitioned zone, according to a joint press release, said the Kuwaiti Ministry of Oil on Monday. The ministry added in a statement that governments of the Kingdom of Saudi Arabia and the State of Kuwait announced that Wafra Joint Operations have made a new oil discovery in (North Wafra Wara-Burgan) field, located five kilometers north of Wafra field. Crude oil flowed from the Wara reservoir in the North Wafra (Wara-Burgan-1) well at a rate exceeding 500 barrels per day, with an API gravity of 26 to 27 degrees. This marks the first discovery since the resumption of production operations in the partitioned zone and its adjacent offshore area in mid-2020. The discovery is regarded as highly significant, given its positive impact on both countries standing as reliable global energy suppliers and their capabilities in the exploration and production sector. API gravity is a scale expressing the gravity or density of liquid petroleum products. (KUNA)
Iraq Business
25-05-2025
- Business
- Iraq Business
Iraq's Oil Ministry Outlines Roadmap for Carbon Emissions Reduction
By John Lee. The Iraqi Ministry of Oil has presented a strategic roadmap to reduce carbon emissions in the oil sector, structured around three core pillars: reducing flared gas, utilising gas and cutting methane emissions, and electrifying oil production operations to lower the carbon footprint. The plan was outlined by Abdulbaqi Khalaf, Energy Advisor to the Ministry, during a panel session on carbon reduction in the oil industry. The session was part of the First International Conference on Carbon Economies, held in Baghdad and organised by the Ministry of Environment's General Company for Carbon Economics in cooperation with the Ministry of Oil. The event opened on Wednesday and ran for two days. Khalaf emphasised the strong support from Deputy Prime Minister for Energy Affairs and Minister of Oil, Eng. Hayan Abdulghani Al-Sawad, for these initiatives. He added that while Iraqi crude oil has one of the lowest extraction costs globally, its carbon footprint is relatively high, necessitating targeted action across the three areas. Additional technical presentations during the session included: A paper by Marfa Al-Asadi, Deputy Managing Director of Basra Gas Company (BGC) , on carbon reduction in associated gas projects. , on carbon reduction in associated gas projects. A presentation by Mohammed Jabbar Ajrash, Head of Energy Affairs at the Directorate of Studies, Planning and Follow-Up, on planned reductions in the energy sector. A contribution from Midland Oil Company (MdOC) on the East Baghdad Field as a pilot project. on the East Baghdad Field as a pilot project. A paper titled " Green Fuel - Prospects for Industrial Reduction " by Ali Khayoun Abdul Ali, Head of Resource Management at the Technical Directorate. (Source: Ministry of Oil)
Iraqi News
23-05-2025
- Business
- Iraqi News
Oil Ministry welcomes and consistently seeks to collaborate with American companies in the development of oil and gas fields
Baghdad-INA The Ministry of Oil confirmed on Friday that American companies' dealings with the region, separate from the federal government, are unconstitutional. A statement by the Ministry received by the Iraqi News Agency (INA) stated: 'The Ministry of Oil welcomes and consistently seeks to collaborate with American companies in the development of oil and gas fields through direct relationships and contracts, in accordance with the Iraqi Constitution and the decisions of the Federal Court in this regard. It should be emphasized that the Ministry of Oil continues to maintain active contractual relationships with American companies across various sectors of the oil industry, including well drilling, associated oilfield services, and advisory and consultancy engagements, and the Ministry has no objection or reservation regarding engagement with these companies, provided that such engagement is not conducted directly with the Kurdistan Regional Government in isolation from the Federal Government and its official channels, as this would constitute a violation of the Iraqi Constitution and the applicable laws.'
