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Statement by the ministry of natural resources of KRG

The natural resources ministry of the Kurdistan Regional Government (KRG) on Tuesday accused the Iraqi government of “attributing the responsibility of the failure” of resumption of the Region’s oil export to the regional government in Erbil. “The Kurdistan Regional Government (KRG) has become aware of public comments recently made by the Ministry of Oil (MOI) of the Federal Government of Iraq (FGI) relating to the export of oil from the Kurdistan Region. Those comments seek to attribute responsibility for the failure of oil exports to the KRG itself,” read a statement from the natural resources ministry.  Statement by the ministry of natural resources of KRG The Kurdistan Regional Government (KRG) has become aware of public comments recently made by the Ministry of Oil (MOI) of the Federal Government of Iraq (FGI) relating to the export of oil from the Kurdistan Region. Those comments seek to attribute responsibility for the failure of oil exports to the KRG itself. In particular, the MOI states that it “…continues to insist on resuming exports through the Iraqi-Turkish pipeline as soon as possible, while adhering to the provisions of the constitution and the law”, but that the relevant KRG production contracts “have not been approved by the federal government or the federal Ministry of Oil at all, as they lack a sound constitutional and legal basis”. As the MOI well knows, there is no provision of the 2005 Constitution of Iraq that confers any power upon the FGI to “approve” contracts issued by the KRG. The legal basis for those production contracts is the 2007 KRG Oil and Gas Law, passed unanimously by the democratically-elected Kurdistan parliament. That 2007 law is acknowledged by the world’s leading constitutional and international lawyers as having a solid basis in the 2005 Constitution of Iraq. Those lawyers include the late Professor James Crawford, a Judge of the International Court of Justice, and more recently Judge Stephen Schwebel, a former President of the International Court of Justice. Both lawyers published their opinions. Those eminent opinions have, quite rightly, been the basis of hundreds of billions of dollars of investment, including a great deal of western investment, in Iraqi Kurdistan. By contrast, the MOI relies on nothing more than a February 2022 “order” from a panel or committee of political appointees in Baghdad that asserts the unconstitutionality of the 2007 KRG law. While the MOI publicly refers to that committee as the “Federal Supreme Court”, everyone knows that it is no such thing. The so-called “court” was not convened in accordance with the relevant provisions of the 2005 Constitution. It is revealing that the MOI does not even argue for the legitimacy of that committee. As one would expect, the February 2022 “order” of the political committee is, like the Saddam-era orders on which it is modelled, almost comically devoid of even the most rudimentary legal reasoning. It is an embarrassment to the people of Iraq. The KRG executive pointed out this plain fact from the moment the “order” was issued, followed soon after by the KRG legislature and judiciary. The KRG judiciary is properly constituted, and it does not recognise the 15 February 2022 order as the decision of a court. It is also revealing that the parliament of the FGI, unlike the parliament of the KRG, has still not passed an oil and gas law that is consistent with the 2005 Constitution. Indeed, the FGI has been unable, or unwilling, to pass any oil and gas legislation at all. The FGI oil sector is thus shrouded in a fog of corruption, over-centralisation and illegitimacy, seeking to rely in the meantime on the antiquated proclamations from the office of Saddam Hussein. The fact is that no federal Iraqi institution, “court” or otherwise, has the authority to invalidate the 2005 Constitution and invalidate KRG law. In January this year, senior delegations from each of the KRG and the FGI met, without prejudice to our respective constitutional rights, and agreed the terms of federal budget legislation that would address the technical matter of production costs in the Kurdistan Region. It was our joint understanding that the legislation would be implemented and that exports would resume without further delay. We encourage the FGI to adhere to the terms of the January agreement and to facilitate the resumption of exports. There is no justification, in the 2005 Constitution or anywhere else, for the MOI to introduce obstacles to oil export. Those exports are vital to the prosperity of all of the peoples of Iraq. They are also vital to the peace and energy security of the international community. In the meantime, the KRG will continue to embrace and promote the rule of law. The KRG will safeguard the integrity, independence, and constitutional jurisdiction of the courts of the Kurdistan Region. The 2007 KRG Oil and Gas Law, and all KRG laws, remain in full force. The KRG will, as always, protect the 2005 Constitution, uphold the 2007 law, and adhere to the terms of contracts entered into in accordance with that law.

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Soma Poormohammadi, a Kurdish language teacher, was sentenced to 11 years in prison

Soma Pourmohammadi, a Kurdish language lecturer and a member of the board of directors of the “Nojin” cultural-social organization in Sanandaj (Sine), has been sentenced to a total of 11 years in prison and exile to Kermanshah (Kermashan) on two separate charges. According to reports received by the Hengaw Organization for Human Rights, Soma Pourmohammadi, a female civil activist, Kurdish language lecturer, and member of the Nozhin cultural-social organization, was sentenced to 10 years in prison by Branch One of the Revolutionary Court in Sanandaj, presided over by Chief Judge Karami, and exile to Kermanshah Central Prison on charges of “forming groups against national security.” The trial for Soma Pourmohammad took place on April 17, 2024, and the verdict was officially announced three days later. Additionally, in another case, she has been sentenced to one year of suspended imprisonment by Branch 106 of the Criminal Court in Sanandaj on charges of “disrupting national security.” Soma Pourmohammadi, in a post on her Instagram account, stated, “Karami told me in the court hearing that the verdict had already been issued.” Soma Pourmohammadi was detained on January 18, 2022, while visiting the court in Sanandaj to inquire about her husband Edris Manbari’s case, who was arbitrarily detained previously. Mrs. Pourmohammadi was released on bail of one billion Tomans temporarily until the end of the trial proceedings after 27 days in detention.

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Economic relations between the Kurdistan Region and Baghdad was discussed in Draw Media Debate

On Saturday, Draw Media Organization, in cooperation with Al-Bayan Center for Planning and Studies held a debate entitled (Economic relations between the Kurdistan Region and Baghdad) at Draw Media office. During the Debate, Ali Taher Alhammood, the managing director of Al-Bayan Center and Mustafa Al-Sara, Director of the Political Research and Studies Department at Al-Bayan Center discussed the financial relations between the Kurdistan region and Baghdad and the impact of the Federal Court’s decisions in this regard.

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This is The Death Knell For Iraqi Kurdistan’s Independence

By Simon Watkins  The Federal Government of Iraq ordered the speeding up of crucial repairs to its own oil export pipeline into Turkey. The embargo on oil exports from the KRG remains in place. From the moment the oil export embargo was imposed on Iraqi Kurdistan on 25 March of 2023, the objective for Baghdad was always to end the region’s semi-autonomous status. The Federal Government of Iraq (FGI) centred in Baghdad several weeks ago ordered the speeding up of crucial repairs to its own oil export pipeline into Turkey while keeping its embargo on oil exports from the semi-autonomous Kurdistan Region of Iraqi (KRI) based in Erbil in place, a senior source who works closely with Iraq’s Oil Ministry exclusively told OilPrice.com last week. According to a subsequent statement from Iraqi’s Deputy Oil Minister for Upstream Affairs, Basim Mohammed, the pipeline is likely to be operational and ready to restart flows by the end of this month. As repeatedly highlighted by OilPrice.com, from the moment the oil export embargo was imposed on Iraqi Kurdistan on 25 March of 2023, the objective for Baghdad was always to end the region’s semi-autonomous status, which meant destroying all its financial independence, which meant stopping all independent oil sales. As far as foreign oil companies working in Iraqi Kurdistan are concerned, a senior European Union (E.U.) energy security source exclusively told OilPrice.com recently: “Baghdad […] is not concerned whether all [of them] operating there just leave.” There are several reasons for this view from Baghdad, according to the Iraqi oil and E.U. security sources. Financially, to begin with, the benefits to the FGI in Baghdad of the Kurdistan Region of Iraq are negligible, if not actually negative. “The deal between Baghdad and Erbil for budget payments to be made [from the FGI] in exchange for oil [from the KRI] was intended to provide a benefit for both sides, but it never worked properly, so continuing to allow the Kurds [the KRI] to keep selling oil independently does not benefit Baghdad one dinar,” said the Iraqi source. More specifically, the deal was made in November 2014, and involved the KRI exporting up to 550,000 barrels per day (bpd) of oil from its own fields and Kirkuk via the FGI’s State Organization for Marketing of Oil (SOMO). In return, Baghdad would send 17 percent of the federal budget after sovereign expenses (around US$500 million at that time) per month in budget payments to the Kurds. Even before Russia effectively took control of the KRI’s oil sector in late 2017 through three key deals, as analysed in depth in my new book on the new global oil market order, neither the FGI or the KRI fully lived up to their commitments. After Russia took control, disagreements between the two sides increased, with Moscow looking to create for itself the role of mediator so it could gain further traction for oil and gas developments in southern Iraq as well. “Without the deal working, Baghdad was losing out on billions of dollars a year in revenue from oil sales done independently by the Kurds, so why would it continue to put up with this?” said the Iraq oil source last week. Legally speaking as well, Baghdad thinks there is no reason why it should, as it believes Kurdistan’s oil exports are illegal and the international oil companies (IOCs) working in the region are complicit in breaking the law. This is founded on its interpretation of the Iraq Constitution, adopted by referendum in 2005. In this, it is clearly stated under Article 111 that oil and gas is under the ownership of all the people of Iraq in all the regions and governorates. Consequently, Baghdad argues, all IOCs that have not so far submitted contracts originally drawn up with the government of the Kurdistan region of Iraq (KRG) for them to be revised now by the Iraq Oil Ministry – so that they can revised in accordance with the Iraq Constitution – have no right to use independent Kurdish routes to export the oil they produce. The KRG, however, believes it has authority under Articles 112 and 115 of the Constitution to manage oil and gas in the Kurdistan Region extracted from fields that were not in production in 2005. “Again, for Baghdad it’s irrelevant whether the IOCs working in the Kurdish region stay or go, as it [the Federal Government] doesn’t benefit at all,” said the Iraq oil source. “If they [the IOCs in Iraqi Kurdistan] want to keep working there then they can apply for updated contracts here [in Baghdad] but if not they can go, as there are plenty of other oil companies that can replace them, and work well with the [Oil] Ministry,” he added. Politically as well, Baghdad believes there are no benefits at all from having a semi-autonomous Kurdish state in its north. For a start, there remains the constant threat that it might push again for full independence, for which it voted 92 percent in favour in the independence referendum on 25 September 2017, as also analysed in depth in my new book on the new global oil market order. For key Iraqi regional sponsor Iran, and for Turkey and Syria, rising Kurdish independence movements would also pose a distinct threat to the existing regimes, given the size of these populations in these countries. Iran’s Kurdish population is around 9 percent of its total, Syria’s 10 percent, and Turkey’s about 18 percent. Baghdad’s true view of this was shown in the quick and brutal clampdown on the KRI after the massive 2017 vote in favour of full independence. For its superpower sponsor of China, the fractious would-be breakaway Kurdistan Region of Iraq with strong former ties to the U.S. makes the administration of Iraq’s massive oil and gas sector much more difficult. China has been building up its influence in southern Iraq, through multiple deals done in the oil and gas sector that have then been leveraged into bigger infrastructure deals across the south. The apotheosis of Beijing’s vision for Iraq is all-encompassing ‘Iraq-China Framework Agreement’ of 2021. This in turn, was an extension in scale and scope of the ‘Oil for Reconstruction and Investment’ agreement signed by Baghdad and Beijing in September 2019, which allowed Chinese firms to invest in infrastructure projects in Iraq in exchange for oil. The same political concern applies for Russia, even with its strong position in the KRI’s oil sector, which would likely be continued anyway if Baghdad is successful in destroying the region’s remaining independence. That this remains a core aim of the Federal Government of Iraq was underlined on 3 August last year when Iraq Prime Minister, Mohammed Al-Sudani, stated that the new unified oil law – run, in every way that matters, out of Baghdad - will govern all oil and gas production and investments in both Iraq and its autonomous Kurdistan region and will constitute “a strong factor for Iraq’s unity”. The completion of the ongoing repairs to Baghdad’s own oil export pipeline to Turkey - bypassing any input from the Iraqi Kurdish region at all – clearly signals that the endgame is in sight for it. Baghdad’s 600-mile pipeline was the original Iraq-Turkey Pipeline, running from Kirkuk in Iraq’s north to Ceyhan in Turkey, before it was closed in 2014 after repeated attacks by various militant groups in the region, including Islamic State.  It consisted of two pipes, with a nameplate capacity of 1.6 million bpd combined (1.1 million bpd for the 46-inch diameter pipe, and 0.5 million bpd for the 40-inch one). It was only after it was closed that the Iraq Kurdistan regional government oversaw the construction of a new single side pipeline, from the Taq Taq field through Khurmala, which runs into the Kirkuk-Ceyhan pipeline in the border town of Fishkhabur. “With the Kurds cut out of the new pipeline and their own pipeline shut down, the new oil law can move forward, unifying the country’s oil sector as originally intended,” concluded the Iraq oil source.

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The KDP is boycotting the upcoming elections. Iraqi Kurdistan may get stuck in an electoral impasse

By Sarkawt Shamsulddin The Kurdistan Region of Iraq (KRI) faces a critical challenge as disputes between the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK) threaten to derail the upcoming June elections. The power struggle between these dominant parties has reached a boiling point, with the KDP’s March 18 announcement that it would boycott the elections sending shockwaves through the region’s political landscape. Despite their flaws, elections in the KRI have been the sole source of unity and legitimacy for the region, which has two separate intelligence agencies, two separate Peshmerga forces, and two separate administrations that operate almost independently. The importance of these elections cannot be overstated, as they provide a mechanism for the two dominant parties—the KDP and the PUK—to peacefully resolve their differences and maintain stability in the region. The tale of two parties Following the 1991 Kurdish uprising in Iraq, Iraqi President Saddam Hussein withdrew central administration institutions from the Kurdish-controlled provinces of Erbil, Duhok, and Sulaymaniyah. The United Nations Security Council (UNSC) passed Resolution 688, imposing a no-fly zone and allowing the KRI to hold its first elections in 1992. The KDP narrowly won the disputed 1992 elections. It eventually made a power-sharing agreement with the PUK to divide parliamentary seats and senior government positions equally. Later, in 1994, a civil war led to separate PUK and KDP administrations, with each party maintaining complete control over two separate geographical areas. The two parties became deeply entrenched, with Kurdistan Regional Government (KRG) institutions dependent on them. The next regional elections didn’t take place until 2005, after the 2003 US invasion of Iraq. The KDP and PUK ran as an alliance to avoid disputes and won the overwhelming majority of the seats. But in 2009, that balance faced a new challenge with the rise of an opposition in Kurdistan.   In 2009, the PUK faced an internal crisis as the opposition Change gained support from former PUK voters, leading the PUK to accept the KDP’s dominance over the KRG. The KDP exploited this to amend electoral laws, establish a regional electoral board, ratify results through the Kurdistan Judicial Council rather than the Federal Supreme Court, create a separate voter-registration system, and increase minority-quota seats—which historically voted in favor of the KDP in the parliament—from five to eleven. These changes allowed the KDP to increase its seats from 35 percent in 2005 to 44 percent in the 2018 elections, while the PUK declined from 34 percent in 2005 to 18 percent in 2018. The PUK, preoccupied with its internal struggles, tolerated this until 2021. The PUK’s resurgence: challenging the KDP’s hegemony After undergoing a leadership transformation in 2021, the PUK has focused on reforming the electoral law to restore the balance of power. The dispute between the two parties came to a head in 2022 when the KDP unilaterally passed a new electoral law with the support of minority seats, ignoring the PUK’s demands for voter-registration reform, district division, and minority-seat allocation. In response, the PUK filed a complaint with the Federal Supreme Court, which ultimately annulled the KDP-sponsored electoral law and ruled that the KRI would be divided into four districts, which meant eleven minority seats were canceled. The court also mandated that the Independent High Electoral Commission (IHEC), a federally elected board, oversee regional elections and that the federal voter-registration system be used. The KDP’s hesitancy to participate in the upcoming June elections goes beyond its public stance against the Federal Supreme Court. The 2023 provincial elections in the federally controlled provinces served as a wake-up call for the party, as it faced a shocking defeat to the PUK in disputed areas. Since 2005, the KDP has dominated Kurdish votes in these areas. Still, in the 2023 provincial elections, the PUK won nine seats while the KDP only secured six—a sharp decline from the 2021 national parliamentary elections when the KDP won ten seats and the PUK seven. Another concern is the new rules imposed by the IHEC, such as the exclusive use of electronic biometric cards for voting. This has disproportionately affected the KDP, as a majority of the nine hundred thousand voters of KRI use temporary cards—a temporary pass for voters without biometric voter IDs who reside in its strongholds of Erbil and Duhok. Voters in Iraq use biometric IDs to prevent voter fraud. Furthermore, discrepancies between the Iraqi Federal Census Bureau and the Kurdistan Census Bureau have raised concerns about the accuracy of voter-registration data. The Federal Census Bureau estimates the combined population of Duhok and Erbil to be 3.4 million, while the Kurdistan Census Bureau data shows 3.9 million—a difference of more than half a million. The PUK claims that the KDP-controlled Kurdistan census has inflated population numbers. Conversely, the Federal Census data estimates Sulaymaniyah and Halabja populations to be around 2,336,191, while Kurdistan data puts the figure at 2,268,000—a difference of 68,140 in Sulaymaniyah’s favor. The shift from KRG-controlled data to federal voter-registration data has left the KDP grappling with the prospect of diminished electoral performance. Behind closed doors, the KDP has made demands to the IHEC, including establishing a counting center in Erbil, using Kurdistan’s voter-registration system, allowing voters with temporary registration receipts to vote, and increasing Halabja governorate seats from three to six. The Kurdistan Region President Nechirvan Barzani also made an official request to the IHEC, addressing some of these concerns, but the IHEC rejected the request. The PUK may accept some of these changes to accommodate the KDP’s concerns but is unlikely to concede to all of them. Compromise or fragmentation? Although there is no clear constitutional or legal path to dealing with Kurdistan’s internal crisis, the outcome of this electoral impasse could lead to several scenarios. The KDP’s main goal appears to be delaying the June elections; the IHEC’s term will expire in July, making it impossible to hold parliamentary elections until next year. Meanwhile, the PUK insists on holding the elections on time. If elections are held and the KDP participates, the most likely outcome is a return to the 50-50 power-sharing agreement between the two parties, which the KDP seeks to avoid. If the PUK agrees, there might be a delay until October 2024 after some of KDP’s concerns are addressed. If the KDP refuses to participate and prevents elections in its dominated region, the PUK warns of the risk of the Kurdish Regional Government losing its legitimacy, which may invoke the unconstitutionality of Prime Minister Masrour Barzani’s position and call for the dissolution of the cabinet and for a transition government until elections are held. The worst-case scenario is a complete break-up of Sulaymaniyah from the KDP-controlled KRG, risking the Kurdistan Region of Iraq’s constitutional status as a federal region. As the June election deadline looms, the future of Kurdistan’s political stability hangs in the balance. The international community watches closely, hoping to reach a compromise to ensure the democratic process prevails in the Kurdistan Region of Iraq. Despite their flaws, elections have been a source of legitimacy for the KDP and PUK to resolve differences peacefully. The longer elections are delayed, the higher the risk that instability in the Kurdistan Region of Iraq will spill over to the rest of Iraq, as both parties are influential partners in forming the Iraqi government.

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The future of the Kurdistan oil pipeline

Iraq’s Oil Ministry announced on Monday its intention to operate a pipeline that runs from Kirkuk to the Turkish port of Ceyhan, which will rival the more than a year-old Kurdistan Jihan line, in a move that could anger Kurdish officials and companies operating there. “Baghdad is working to repair a pipeline that would allow it to pump 350,000 barrels per day of oil to Turkey by the end of this month,” Iraq’s deputy oil minister, Bassem Mohammed, told Reuters. The restart of the Kirkuk-Ceyhan pipeline, which has been closed for a decade, would provide a competitive route for a pipeline from the Kurdistan Region that has been suspended for a year amid stalled talks between Baghdad and the KRG over the resumption of exports. “The pipeline is likely to be ready to operate the flows by the end of this month, and the repair work is underway and a major crude pumping station with storage facilities has been completed,” Mohammed added. “Repairing the damaged parts inside Iraq and completing one basic pumping station will be the first phase of operations to return the pipeline to full capacity,” he stressed. For its part, three sources from the Baghdad-run North Oil Company said, “Crude oil test pumping began early last week to verify the pipeline parts operating inside Iraqi territory. The sources added, Reuters, that “the Iraqi technical crews, during the past period, have speeded up the repair of the affected parts that extend from Kirkuk through the provinces of Salah al-Din and Nineveh to the border area with Turkey.” According to the above, Reuters noted that the federal government in Baghdad will ask oil companies operating in the Kurdistan region to negotiate with it to sell their oil via the revived pipeline to Turkey, something that could anger the Kurds who are almost completely dependent on oil revenues. “Baghdad has rejected a Kurdia’s request that the federal government pay a transit fee of $6 a barrel for Russian oil company Rosneft, which partially owns the pipeline,” two Iraqi oil officials and a government energy adviser, speaking to Reuters, on condition of anonymity, said. “Iraqi Oil Ministry officials told the Kurdish negotiating team that they consider the agreement between the Kurdistan Regional Government and Rosneft illegal and a violation of applicable Iraqi laws,” Reuters quoted energy adviser in the Kurdistan Region as saying.

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U.S. Government invested $300 million for KRI's oil and gas sector

aught in the middle of a standoff between Baghdad, Erbil and Ankara, international oil companies operating in Iraq's semiautonomous Kurdistan region are warning they may no longer continue investing amid an "increasingly hostile business environment." Exports of the crude oil they produce have been blocked for more than a month, as Iraq and Turkey have yet to agree on terms to reopen a critical pipeline to the port of Ceyhan following an international arbitration ruling. Beyond that, lingering sovereignty disputes over oil revenues between the Kurdistan Regional Government and the federal Iraqi government are still casting a pall, while the expiry of the Iraq-Turkey pipeline agreement looms in 2025. The regulatory and political uncertainty threatens the approximately 450,000 b/d of Kurdish crude production, with five of the IOCs operating there forming a trade group to advocate for their interests. The Association of the Petroleum Industry in Kurdistan comprises DNO, Genel Energy, Gulf Keystone Petroleum, HKN Energy and Shamaran Petroleum. The group has largely kept its activities out of the spotlight since organizing in February due to the sensitivity of relations between the governments involved in getting Kurdish crude to market. But with no resolution in sight to the shutdown of exports from Ceyhan, some members say they need to become more active and visible. "The KRG is plateauing in [crude] production, and much of that is due to the political issues," said one representative of a company in APIKUR who asked not to be named. "It's too difficult to justify an increased investment. For the KRG and the IOCs, this is an existential imperative." Gulf Keystone said April 27 it was weighing legal action over the halt in exports that has forced it and other IOCs to shut in production. APIKUR met with KRG Prime Minister Masrour Barzani April 18 to lay out its concerns. The association has also urged the US and UK governments, where many members are listed or headquartered, to pressure Baghdad, Erbil and Ankara to resolve their disputes and closely monitor any agreements. In letters to American and British lawmakers, APIKUR has said its members "cannot continue to make significant new investments [in Kurdistan] given the increasingly hostile business environment," adding that without more upstream development, the region's largely mature oil fields will see major degradations in crude production, while mooted gas projects will not get off the ground. The US has also financed $300 million in energy projects in Kurdistan. At stake is the KRG's ability to remain solvent, with Western governments seeking Kurdistan as a bulwark against Iran's influence in the Middle East, as well as the Islamic State and other terror groups. "Kurdistan has historically been a strong ally to the West," said another APIKUR representative, who also spoke to S&P Global Commodity Insights on condition of anonymity. "The engagement has to step up very quickly, as an objective broker. There's a nexus of multiple issues: the political side, the financial side, protection of shareholder rights, but also protecting the Kurds and their way of life, which will be severely compromised." Sanctity of contracts Oil and gas revenues fund some 80% of the KRG's budget. But Kurdish crude production has fallen from a peak of nearly 600,000 b/d, in large part due to the sovereignty dispute that has constrained the KRG's finances. The federal Iraqi government in 2017 reclaimed some Kirkuk oil fields from the KRG, after the region's successful non-binding independence referendum escalated tensions between Baghdad and Erbil. Baghdad has at times withheld budget payments to the KRG as well, and federal oil marketer SOMO has threatened to sue buyers of Kurdish crude and block IOCs and service companies from operating there, citing an Iraqi Supreme Court decision from February 2022 that ruled the KRG's independent exports as unconstitutional. KRG officials have rejected the ruling. The cash-strapped KRG has racked up billions of dollars of debt to oil traders and the IOCs, which APIKUR says Baghdad needs to address if it is going to assume control of Kurdistan's oil sector. "What we really care about is contract sanctity and surety of payment," the first APIKUR representative said. The Iraqi oil ministry and the KRG did not respond to requests for comment, while a SOMO official who spoke on condition of anonymity said "technical" issues were still being ironed out. While the resumption of exports from Ceyhan is of immediate priority, APIKUR officials said the Iraqi budget, an oil and gas law, and the renewal of the Iraq-Turkey pipeline agreement are also of heightened importance. A preliminary deal reached in February that would see the KRG receive 12.67% of the federal budget and establish an account to handle revenues from Kurdish crude sales has yet to be ratified by the Iraqi parliament. Talks over comprehensive overhaul of the country's oil and gas law that could enshrine regulation of the Kurdish oil sector appear on the backburner. Meanwhile, a negotiating window to renew the Iraq-Turkey pipeline agreement is set to open later in 2023, two years before it expires. But that is likely to be complicated by the International Commercial Court's arbitration ruling March 23 that Baghdad says ordered Ankara to pay financial penalties for allowing the KRG to independently export its crude, in violation of the pipeline pact. Resolving those thorny matters would lift the regulatory cloud that hangs over the Kurdish oil sector, APIKUR says. "In good faith, the IOCs can commit to a capital deployment program if these issues are addressed -- fix the pipeline issue and the repayments," the second APIKUR official said. "The delay in payments puts pressure on us as IOCs to reestablish the confidence of the market in investing in Kurdistan. The more delays, the more reduction in the level of production, which then creates the shortfall in revenues. The situation is very severe."

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Bafel Talabani: The Kurdistan Parliamentary elections will be held on time

After the meeting of the parties involved in the Iraqi government, the President of the Patriotic Union of Kurdistan said: "There has been no proposal to postpone the elections". The parties involved in the Iraqi government led by Prime Minister Mohammed Shia Sudani met in the presence of President of Kurdistan Region Nechirvan Barzani on Saturday. After the meeting, Bafel Talabani, President of the Patriotic Union of Kurdistan, said that the meeting discussed many things. Regarding the postponement of the elections or holding it on time, Bafel Talabani said "The elections will be held on time in Kurdistan,". He said that there is no proposal to postpone the elections in the Kurdistan Region.  

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Baghdad Bank Joins KRG's 'MyAccount' Project

Baghdad Bank has been approved by the Central Bank of Iraq (CBI) to participate in the Kurdistan Regional Government's (KRG) "MyAccount" project, as reported on Sunday. The inclusion of Baghdad Bank in the project is poised to broaden the spectrum of banking services and products available to the people of the Kurdistan Region. This move is anticipated to streamline access to loans and facilitate private expenditures for the residents, according to the KRG's official website. With six branches already established in the Kurdistan Region, Baghdad Bank's participation is expected to strengthen the banking infrastructure and further enhance financial accessibility for the local population. Additionally, it is reported that more banks are slated to join the initiative later this month, as revealed by information obtained by BasNews. The KRG's concerted efforts in fostering partnerships with participating banks have resulted in the creation of over 200,000 bank accounts for public sector employees. The project is set to continue its momentum, with plans to register more than one million KRG employees by the year's end. Rebaz Hamlan, Assistant to Kurdistan Region Prime Minister Masrour Barzani, provided insights into the expansion of the "MyAccount" project, aimed at digitizing the payroll system for over one million public sector workers. Hamlan shared that following the Ramadan period, additional Iraqi banks, including the Commercial Bank of Iraq TBI, will join the initiative. Highlighting the collaborative efforts between the KRG and the federal government concerning the "MyAccount" project, Hamlan expressed optimism about visible progress post-holidays. He underscored the project's goal of transitioning towards a cashless society, which is expected to enhance financial security for beneficiaries and streamline financial transactions. Since September 2023, the KRG has been diligently pursuing its mission to transition the Kurdistan Region towards a cashless society, starting with the digitization of the payroll system for its extensive public sector workforce. This initiative aims to simplify salary collection, reinforce financial stability, and provide beneficiaries with access to a wide array of financial services, including savings accounts.

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DNO’s operations in Iraqi Kurdistan recovered after severe floods

Norwegian oil and gas operator DNO ASA announced on Thursday that production and field operations at the Tawke oil field in the Kurdistan region have rebounded following significant floods. The floods, caused by melting snow in Turkey and heavy rainfall in the region, resulted in the destruction of large sections of the Khabur River's banks, damaged roads, and disrupted the loading of tanker trucks for customer deliveries, as per a statement from DNO ASA.  The flooding compelled DNO to temporarily halt operations at the Tawke oil field, while operations at the Peshkabir oil field, unaffected by the floods, continued. During a ten-day period, gross license production dropped from over 80,000 barrels per day to an average of 65,000 barrels. However, by March 30, 2024, DNO had managed to restore production levels to pre-flood levels, employing measures to mitigate flood risks, assess damage, and implement corrective measures, including the installation of additional truck loading facilities.

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A year after Iraq-Turkey pipeline halt, no progress to resume flows

A year after the closure of the Iraq-Turkey oil pipeline, the conduit that once handled about 0.5% of global oil supply is still stuck in limbo as legal and financial hurdles impede the resumption of flows, three sources told Reuters. About 450,000 barrels per day of crude once flowed through Iraq's northern oil export route via Turkey, and its closure has led to the loss of roughly $11 billion to $12 billion for Iraq, the Association of the Petroleum Industry of Kurdistan (APIKUR) estimates. A restart is not being discussed at the moment, one of the sources with knowledge of the matter told Reuters. Ankara halted flows on March 25, 2023, after an arbitration ruling found it had violated provisions of a 1973 treaty by facilitating oil exports from the semi-autonomous region of Kurdistan without the consent of the Iraqi federal government in Baghdad. The court ordered Ankara to pay Baghdad $1.5 billion in damages for unauthorised exports between 2014 and 2018. A second ongoing arbitration case covers the period from 2018 onwards. The countries remain embroiled in a protracted legal tussle, two sources familiar with litigation said. Meanwhile, Iraq owes Turkey minimum payments as long as the pipeline is technically operational - estimated by consultancy Wood Mackenzie at around $25 million per month - as part of the treaty, in theory providing an incentive to restart flows. But with Iraq deepening oil export cuts as part of OPEC+'s broader mission to support oil prices, a resumption of northern flows is not on the agenda, two sources told Reuters. Geopolitical factors are also a stumbling block. The Iraqi government's strained relations with the Kurds, a feature of Iraq's political landscape since Saddam Hussein was toppled in the 2003 U.S.-led invasion, have recently soured further. The United States, which would benefit from the pipeline restart lowering oil prices, has also made a handful of attempts to help broker a deal, said Michael Knights, an Iraq expert at the Washington Institute think-tank. But with war raging in Ukraine and Gaza, the U.S. government is spread thin, he said. "They've tried to fix this problem about five or six times. And they're tired of it." The U.S. State Department did not respond to a request for comment. Also key to any restart deal are the international oil companies operating in the Kurdistan region, who were forced to halt exports as a result of the pipeline closure. Instead, they can only sell oil locally in Kurdistan at a significant discount. With more than $1 billion collectively owed in overdue payments for oil delivered between October 2022 and March 2023, according to APIKUR, the group continues to push for compensation in line with their contracts. The companies have also collectively lost more than $1.5 billion in direct revenue since the closure, the group said. Despite several meetings, neither APIKUR nor its members have received any formal proposals or agreements from Iraqi or Kurdish officials that would lead to a resumption of exports, an APIKUR spokesperson said. Reuters  

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Fourth Decree of Nechirvan Barzani on the verge of dissolution

Kurdistan Ministry of Justice published number (317) of the Waqai Kurdistan Newspaper. All laws, decisions and instructions published in this newspaper shall come into force immediately. In this issue of Waqa'i newspaper, Regional Decree No. (50) of 2024 has been published which was issued by Nechirvan Barzani, President of the Kurdistan Region and he has set June 10 as the date for the sixth round of parliamentary elections. The publication of this Decree in the Waqai Kurdistan Newspaper comes at a time when the Kurdistan Democratic Party (KDP) announced its withdrawal from the election, and the PUK insists that elections must be held on schedule. Nechirvan Barzani, as the president of the Kurdistan Region, so far issued four decrees to hold the sixth round of parliamentary elections, three of which were canceled and the elections were not held. If the elections are delayed this time, that will be the fourth time to dissolve Nechirvan Barzani's decree. Nechirvan Barzani's decrees for the sixth round of elections: • February 24, 2022 Decree, to hold elections on October 1, • March 26, 2023 Decree, to hold elections on November 18, • August 3, 2023 Decree, to hold elections on February 25, • March 3, 2024 Decree, to hold elections on June 10,  

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They registered a new party for the elections

A number of former parliamentarians and political figures registered a new party in Baghdad  to participate in the Kurdistan parliamentary elections. So far, a number of political parties and two coalitions have registered for the Kurdistan parliamentary elections: • Kurdistan Democratic Party • Patriotic Union of Kurdistan • New Generation Movement • Gorran Movement • KUrdistan Islamic Union • Kurdistan Justice Society • Kurdistan Islamic Movement • National Coalition • People's Front Party • National Stand Party    Two coalitions have been registered so far: Kurdistan Alliance  Sardam Coalition A number of former Kurdistan parliamentarians have registered a new party in Baghdad today. The new party includes a number of parliamentarians and political figures, including: • Massoud Abdulkhaliq • Salim Koyi • Ali Hama Saleh • Dr. Ghalib Mohammed • Dr. Karwan Hamasaleh • Dr. Rebwar Karim • Badal Barwari

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Christians and Turkmen Parties Decide to Boycott Kurdistan Elections After Iraqi Court Ruling

 Kurdistan Region's Turkmen parties on Tuesday announced that they will be boycotting the Region's upcoming parliamentary elections in protest to Iraq's top court ruling that stripped them of the quota seats allocated to them in the parliament. At the same time, a coalition of Chaldean, Syrian, Assyrian, and Armenian Christian parties and associations on Monday announced their decision to boycott the upcoming parliamentary elections in the Kurdistan Region. The announcement was made during a press conference held in Erbil province where the coalition voiced their concerns over what they perceive as an attack on coexistence and a violation of constitutional principles and laws. The coalition criticized the Iraqi Federal Court's decision to annul final seats, attributing it to a historical error made by the Patriotic Union of Kurdistan (PUK) to serve their immediate political interests. They highlighted the negative impact of this decision on communal harmony and democracy in the Kurdistan Region. "By passing this unjust and unjustified ruling which deprived the indigenous components of Kurdistan from exercising their democratic rights, the federal court and the Patriotic Union of Kurdistan (PUK) have inflicted a heavy wound in the hearts of our nation," Turkmen parties said in a news conference in Erbil today. As Turkmen parties, we have decided to boycott the upcoming Kurdistan parliamentary elections unless the quota seats are reinstated." In late February of this year, Iraq's Supreme Federal Court ruled that the allocation of quota seats for ethnic and religious components in the Kurdistan parliament were "unconstitutional." The Kurdistan Region is set to hold parliamentary elections in June this year. Political parties will now be vying for 100 seats at the Region's parliament, which had previously allocated 11 seats for ethnic and religious components in the Region. Emphasizing the significance of the existing parliamentary system, established since 1992, the coalition argued that it provides a guaranteed framework for political representation of Christian and Turkmen minorities. They expressed reservations about the ability of minority groups to compete fairly in elections due to the dominance of Kurdish communities and the lack of balanced opportunities. The decision to boycott the elections reflects the rejection of what they perceive as historic mistakes by the Federal Court and the PUK-led coalition against Chaldean, Assyrian, Syrian, and Armenian communities. However, they clarified that their stance is subject to change if their constituents demand participation. Furthermore, the coalition called for early parliamentary elections to uphold democratic values and strengthen the constitutional framework of the Kurdistan Region. The declaration was jointly signed by prominent parties and associations representing Chaldean, Syrian, Assyrian, and Armenian communities, including the Chaldean Democratic Union Party, the World Chaldean Alliance, the Syrian Gathering Movement Party, and others. The Federal Supreme Court's recent decisions regarding the Kurdistan Parliamentary Elections were also discussed during the press conference, particularly the abolishment of quota seats and the increase in the total number of parliamentary seats from 111 to 100.  

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"We have called on the United States and the West to support the communities"

The Minister of Transportation and Communications in the Kurdistan Region Ano Jawhar stated on Thursday that "we have called on all our friends in the United States and Europe to support the constitutional components of the Region." Minister Jawhar considered the complaint of the Patriotic Union of Kurdistan (PUK) against the quota seats for components in the Kurdistan Electoral Law as "a historical mistake," adding, "the actions of the PUK and the decision of the Federal Court resemble the Revolutionary Court during the Baath regime era." He continued, "We condemn the decision of the Federal Court as a threat to the constitutional entity of the Kurdistan Region," adding, "We visited the United Nations two months ago, where we participated in the international conference on the right to freedom of religion and expression, and discussed the situation of Kurdistan’s Christians and components." He pointed out that "we have called on all our friends in the United States and Europe, through representatives of 137 countries who attended the conference, to support the components and entity of the Kurdistan Region." Notably, the Supreme Federal Court decided last February to cancel the quota seats in the legislative elections law for the Region, and to reduce the number of seats in the Kurdistan Parliament from 111 to only 100, which sparked widespread discontent among minorities, leading to a declaration of their boycott of the upcoming elections scheduled for next June. Turkmen parties in Kurdistan announced, on Tuesday, the boycott of the parliamentary elections in the Region, scheduled to be held on June 10, in protest against the Federal Court's decision to cancel the "quota" seats. Representative of the Turkmen parties Kerkhi Alti Barmak said that "the cancellation of the quota seats is unconstitutional and contravenes Article 49, which guarantees the rights of components," adding that "the court's decision will weaken the principles of democracy in the Region." The representatives of the Turkmen parties called on the United Nations, the President of the Republic, the Prime Minister, and the Parliament to intervene to cancel this decision. He also called on the Regional President and Prime Minister to intervene to cancel the decision, confirming that "the Turkmen parties have decided to boycott the parliamentary elections until the quota system for components is reinstated."

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