Latest news with #SOMO
Rudaw Net
4 hours ago
- Business
- Rudaw Net
Baghdad nearing oil deal with Erbil, negotiating new export agreement with Ankara
Also in Iraq Iraq's water crisis spurs calls to block Turkish companies Eighth batch of Yazidi remains from ISIS genocide laid to rest in Shingal Dozens of Arbaeen pilgrims killed, injured in southern Iraq accident Iraq's electricity back online after nationwide outage A+ A- ERBIL, Kurdistan Region - Iraq's oil ministry is 'very close' to reaching a final agreement with the Kurdistan Region to resume oil exports, a senior ministry official told Rudaw on Wednesday, adding that talks are also ongoing with Ankara to negotiate a new oil export agreement through the Turkish port of Ceyhan. Speaking to Rudaw on condition of anonymity, the official confirmed, 'We are very close to a final agreement' with Erbil, adding that once exports resume, 'the Kurdistan Region's oil will be sold exclusively through [the State Organization for Marketing of Oil] SOMO,' Iraq's national oil marketer. For his part, Ali Nizar Faiq, general director of SOMO, confirmed to Rudaw on Wednesday that the company is prepared to 'receive and sell' oil from the Kurdistan Region, but noted that 'the Kurdistan Region has not handed over the oil yet.' Efforts to finalize the deal follow a mid-July agreement in which Erbil and Baghdad agreed on the daily transfer of 230,000 barrels of oil from the Kurdistan Region to SOMO for export through the Ceyhan pipeline. Exports along that route have been suspended since March 2023, following a ruling by a Paris-based arbitration court in favor of Baghdad. The court found that Ankara had breached a 1973 pipeline agreement by allowing the Kurdistan Regional Government (KRG) to independently export oil since 2014. Importantly, Turkish President Recep Tayyip Erdogan announced in mid-July that Turkey will not renew the 1973 Iraq-Turkey pipeline agreement, which is set to expire in 2026. However, the senior Iraqi oil ministry source told Rudaw that Baghdad is currently reviewing new proposals from Ankara. 'We are reviewing proposals from the Turkish government to finalize a new agreement, and we expect to reach a deal before the deadline expires.'
Iraqi News
3 days ago
- Business
- Iraqi News
Iraq rejects US claims of sanctioned Iran oil smuggling
Baghdad – Iraqi authorities denied on Friday that the country had played any part in Iranian efforts to evade US sanctions on oil exports after Washington last month linked a local businessman to the practice. In early July, the US State Department sanctioned six entities and identified four vessels as having 'knowingly engaged in a significant transaction for the purchase, acquisition, sale, transport, or marketing' of Iranian petroleum products. Among the sanctioned entities was a network of companies run by Iraqi businessman Salim Ahmed Said accused of having 'profited from smuggling Iranian oil disguised as, or blended with, Iraqi oil'. On Friday, the director of Iraq's state oil marketing company SOMO denied any Iraqi role in such sanctions evasion. 'There are no smuggling or (petroleum) blending operations at Iraqi ports or in its territorial waters,' Ali Nizar told the official INA press agency. 'It is totally false to speak of the existence of sites allowing the smuggling of Iraqi oil and mixture with oil from neighbouring countries.' On Tuesday, an AFP journalist, at the invitation of authorities, accompanied naval personnel on an operation to inspect the paperwork of oil vessels in territorial waters off southern Iraq. Iran has denounced US sanctions on its oil sector, calling a subsequent round of restrictions in late July a 'a malicious act aimed at undermining the economic development and welfare of the Iranian people'.
Shafaq News
3 days ago
- Business
- Shafaq News
Baghdad to push extradition demand in new Erbil talks
Shafaq News – Baghdad The Iraqi government is set to introduce new conditions in its negotiations with the Kurdistan Regional Government (KRG), adding a demand for the extradition of wanted figures based in Erbil to its long-standing list of disputes. A political source told Shafaq News that the list includes former leaders of the now-dissolved Baath Party, accused of crimes committed under Saddam Hussein's regime or involvement in post-2003 insurgent activities. Baghdad has pursued their return for years, arguing they face judicial warrants and remain emblematic of the country's unfinished transitional justice process. Oil remains the core of Baghdad–Erbil tensions. The source revealed that the federal government insists the KRG deliver agreed volumes of crude to the State Oil Marketing Organization (SOMO) as part of Iraq's national export system. Kurdish officials counter that the suspension of exports via Turkiye's Ceyhan port since March 2023 has drastically reduced revenues, leaving the region unable to meet its commitments. 'Federal committees sent to Erbil have yet to reach terms acceptable to Baghdad, which is now considering linking budget transfers directly to verified oil shipments.' Notably, an 'oil-for-salaries' arrangement in early 2025 briefly eased the standoff, with the KRG pledging to supply all crude—except 50,000 barrels per day for local consumption—to SOMO in exchange for guaranteed wages from Baghdad. That deal collapsed after mid-2025 drone strikes on regional oil facilities cut production by about 70%, leading to renewed payment delays. Plans to restart Ceyhan exports at roughly 80,000 barrels per day under federal control also remain stalled. Industry officials warn that no breakthrough is likely soon, while Turkiye's formal notice that it will terminate its 1973 pipeline agreement with Iraq by July 2026 could worsen the situation.
Al-Ahram Weekly
5 days ago
- Business
- Al-Ahram Weekly
Iraq denies any role in sanctioned Iran oil smuggling - Region
Iraqi authorities denied on Friday that the country had played any part in Iranian efforts to evade US sanctions on oil exports after Washington last month linked a local businessman to the practice. In early July, the US State Department sanctioned six entities and identified four vessels as having "knowingly engaged in a significant transaction for the purchase, acquisition, sale, transport, or marketing" of Iranian petroleum products. Among the sanctioned entities was a network of companies run by Iraqi businessman Salim Ahmed Said accused of having "profited from smuggling Iranian oil disguised as, or blended with, Iraqi oil". On Friday, the director of Iraq's state oil marketing company SOMO denied any Iraqi role in such sanctions evasion. "There are no smuggling or (petroleum) blending operations at Iraqi ports or in its territorial waters," Ali Nizar told the official INA press agency. "It is totally false to speak of the existence of sites allowing the smuggling of Iraqi oil and mixture with oil from neighbouring countries." On Tuesday, an AFP journalist, at the invitation of authorities, accompanied naval personnel on an operation to inspect the paperwork of oil vessels in territorial waters off southern Iraq. Iran has denounced US sanctions on its oil sector, calling a subsequent round of restrictions in late July a "a malicious act aimed at undermining the economic development and welfare of the Iranian people". Follow us on: Facebook Instagram Whatsapp Short link:
Rudaw Net
5 days ago
- Business
- Rudaw Net
Iraq denies oil smuggling after US sanctions Iran-linked network
Also in Iraq Flights to resume at Mosul airport in 2 months after 11-year hiatus Iraq says 'committed' to receiving 230,000 barrels of oil daily from KRG KRG delegation in Baghdad for salary talks after oil export deal KRG to resume oil exports after new agreement with Iraq A+ A- ERBIL, Kurdistan Region - Iraq's oil marketing agency on Friday denied reports of smuggling or blending Iraqi oil with that of neighboring countries, after United States sanctions targeted an Iraqi-linked network accused of disguising Iranian oil. "Talk about the existence of places that allow the smuggling of Iraqi oil and blending it with the oil of neighboring countries is untrue," Ali Nizar Faiq, general director of the State Oil Marketing Organization (SOMO), told state-run Iraqi News Agency (INA). "There are no blending or smuggling operations inside Iraqi ports or regional waters,' he added. Last month, the US Treasury Department announced sanctions against a network accused of smuggling 'billions of dollars' worth of Iranian oil.' The sanctions target companies allegedly controlled by Iraqi-British businessman Salim Ahmed Said, who is accused of using fraudulent documentation and ship-to-ship transfers to disguise Iranian oil as Iraqi, including through blending. 'There is no evidence in any international body that confirms the existence of this kind of blending or smuggling,' Faiq said. The sanctions are part of renewed US pressure on Iran following the reimposition of Washington's 'maximum pressure' policy in February. The July measures came shortly after a 12-day war between Iran and Israel, during which the US struck Iranian nuclear facilities. Kurdistan Region oil exports Faiq also said Iraq is prepared to resume oil exports from the Kurdistan Region once producing companies begin deliveries. SOMO 'has completed all preparations, and has completed contracts with the purchasing companies, and is fully prepared to start exporting oil from the region as soon as the producing companies in the region start delivering the produced quantities,' he said. Under a recent agreement between Erbil and Baghdad, the Kurdistan Regional Government (KRG) committed to exporting its oil - about 230,000 barrels per day - through SOMO. In return, Baghdad agreed to release delayed salaries for the KRG's public servants. Kurdistan Region's oil exports through the Iraq-Turkey pipeline have been halted since March 2023, when a Paris-based arbitration court ruled Ankara had violated a 1973 agreement by allowing the KRG to export oil independently starting in 2014. Talks between Baghdad, Erbil, and international oil companies continue about a long-term framework to fully restore the Region's exports.
