Iraq Finalises March Oil Exports

By John Lee.

Iraq’s Ministry of Oil has announced finalised oil exports for March of 100,579,612 barrels, giving an average for the month of 3.244 million barrels per day (bpd), down slightly from the 3.314 million bpd exported in February.

The exports from the oilfields in central and southern Iraq amounted to approximately 99,130,677 barrels, while exports from the Kirkuk fields through the port of Ceyhan amounted to 1,488,935 barrels.

Revenues for the month were $10.913 billion, at an average price of $108.503 per barrel. According to the Ministry, this is the highest monthly oil revenue in Iraq since 1972.

February’s export figures can be found here.

(Source: Ministry of Oil)

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WHO marks 5 Yrs of Strategic Partnership with USAID in Iraq

WHO marks five years of strategic partnership with USAID in Iraq

The World Health Organization (WHO) marks the five-year milestone of its strategic partnership with the United States Agency for International Development (USAID) to support the provision of life-saving and essential healthcare services to vulnerable populations in Iraq.

Over the past five years, USAID has provided WHO Iraq with support totalling US$122 million.

Dr Ahmed Zouiten, WHO Representative in Iraq, said@

USAID has been the biggest funding partner of WHO in Iraq over the past five years. We’re proud of this genuine and growing partnership, which helped us expand access to much-needed healthcare services for millions of people in different governorates.

“We greatly value and appreciate this impactful partnership, and we’re exploring new opportunities to deepen this collaborative partnership further.”

Impact of USAID’s contribution

Thanks to the generous contribution from USAID, over 6 million primary health care consultations, including mental and physical rehabilitation services, were provided to Iraqi citizens, while over 1,500 individuals benefited from various capacity building training.

USAID support also provided 56 new ambulances to the Iraqi health system, helping to ensure uninterrupted access to referral services. Funds also went to delivering essential medicines, medical supplies and diagnostic equipment to various conflict-affected governorates to provide comprehensive primary health care services to millions of people, including around 300,000 Syrian refugees and host communities in Erbil, Dahuk and Sulaymaniyah governorates.

In addition, USAID has contributed to WHO-Iraq’s preparedness and response to COVID-19 by adding up to 800 new COVID-19 vaccination locations, including in challenging humanitarian areas, such as in camps housing refugees and internally displaced persons.

It is also providing equipment and supplies, as well as technical assistance to Iraqi laboratories, clinics, and hospitals for testing, diagnosing, and treating COVID-19. USAID funding is also helping train frontline workers on caring for COVID-19 patients and organizing awareness-raising campaigns.

Heather Schildge, Acting USAID Mission Director to Iraq, said:

“The United States is the leading humanitarian assistance provider in Iraq. We are pleased to celebrate five years of fruitful partnership with the WHO and stand committed to working with the Government of Iraq and other partners to provide critical services to Iraq’s most vulnerable populations.”

(Source: UN)

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UNICEF Iraq gets $26m from Germany for COVID Response

UNICEF receives US$26 Million from the Government of Germany to support the provision of basic services and the COVID-19 response in Iraq

The funding will allow 1 million children and adolescents to have continued access to learning through a combination of approaches such as blended learning and 50,000 vulnerable people to receive critical child protection services

The Government of Germany has contributed $26 million to UNICEF to support UNICEF in its ongoing efforts to assist the Government of Iraq in strengthening its systems and improve access to quality basic services for children and their families in the context of COVID-19. This amount brings the German Government’s total contributions to UNICEF in Iraq to over 200 million dollars since 2015.

The funding includes support for measures addressing the impact of COVID-19 by ensuring communities continue to receive essential water, sanitation, education and child protection preventive and response services. This will include the provision of personal protective equipment to 20,000 healthcare providers and hand sanitizer gel, soap bars and hand hygiene promotion to over 200,000 people.

“This funding is crucial as we support Iraq to increase access to basic services and bolster the national COVID-19 vaccination campaign. UNICEF thanks the Government of Germany for this timely support and partnership to accelerate our efforts to ensure every child in Iraq has access to safe water, education, social and child protection services when required,” said Sheema SenGupta, UNICEF’s Representative in Iraq.

“Children belong to the most vulnerable members of the Iraqi population, especially those living in IDP camps. I was very touched recently by my visit in a UNICEF-built school in Shariya Camp”, said GER Ambassador to Iraq, Martin Jäger. “Germany is funding UNICEF activities to make sure that Iraqi children grow up equipped with what they need most: health and education, because we can only overcome the Covid pandemic together, it is a global challenge where no one is safe until everyone is safe.”

An estimated 1 million children and adolescents will have continued access to learning through a combination of approaches such as blended learning, education TV & online portals and self-learning materials. At least 50,000 people will receive critical child protection services mainly from high-risk areas across Iraq and areas with vulnerable populations, such as camps for the internally displaced and returnee community areas.

In addition, UNICEF will support provision of access to safe, equitable, gender-inclusive water and sanitation services for over 700,000 vulnerable people and their families in targeted governorates, including community-focused hygiene promotion and improvement of WASH services in schools and healthcare facilities.

The project will primarily benefit children and young people, who make up more than half the population of Iraq. As the country marks two years since the pandemic was declared, the number of children and young people estimated to be under the poverty line has doubled. Children and young people are also the most at risk of experiencing poverty, service disruptions in critical basic services like primary health, water sanitation and hygiene, education and increase in rights violations.

UNICEF, in collaboration with the Government of Iraq and partners, will continue to work on long-term sustainability of national systems by strengthening national capacity to provide integrated access to basic services with the goal of enabling children to overcome poverty, enjoy their rights and fulfil their full potential.

(Source: UN)

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5K Run to help Iraq’s most Vulnerable Children

From Iraq Solidarity News (Al-Thawra). Re-published with permission by Iraq Business News.

Global 5K run aims to help Iraq’s most vulnerable children

Liz McRae is the Executive Director of the Iraqi Children Foundation and in this interview, Hussein Al-alak speaks with Liz McRae about the work of the ICF, along with finding out more about their upcoming ‘In Their Shoes‘ global 5K run, on May 21st, 2022.

Who are the Iraqi Children Foundation?

The Iraqi Children Foundation (ICF) intervenes in the lives of orphans and street children who are vulnerable to abuse, neglect, and exploitation by criminals, traffickers and extremists. The organization was set up ten years ago by Americans who saw the need to help rebuild Iraq after so many years of conflict.

More than 800,000 children were orphaned as a result of the Iraq War, and the ISIS occupation displaced another 1.3 million. Our vision is that all children in Iraq have a voice, and are empowered to reach their full potential. All our programs have this goal in mind.

We help vulnerable children through programs like “The Hope Buses”; we convert used city buses into colorful, child friendly classrooms. Each bus has two teachers and a social worker, and serves around 50 children with tutoring, nutrition, health care, social services, practical life lessons, community, and fun.

Another program is called “The Street Lawyers”; a team of lawyers who provide legal protection for children who are targeted by criminals and traffickers, abused by employers, or are facing other risks. They also assist children to get their papers so that they can go to school.

You were recently in Iraq for the ICF, can you tell us more about this?

It was a privilege to travel to Iraq this past month, to visit our programs and meet with our partners. It is so important to experience our programs first hand. During this trip, I visited our Hope Buses and Street Lawyers in Baghdad, and our Center for Girls in Mosul.

Something that stood out to me when visiting our projects was how happy and comfortable the children are when they are at the Hope Bus or our Girls Center. The staff are so kind and caring, and the children are all looking healthy and content. The hardest thing to see was the number of children waiting outside the Hope Buses and peering inside, wishing that they could join in the fun and learning.

Will you tell us more about the In Their Shoes 5K?

Our “In Their Shoes” 5K is a fun run which we hold in Washington D.C. each year. It is an opportunity for people from all walks of life to get together and stand in solidarity with the children of Iraq. This year is our 10th Anniversary event, so we hope that many people can join us. It’s a fun family event with face painting, juggling, and snacks. During COVID, we started providing a virtual option for our race as well, so folks can join us from anywhere in the world.

How can people across the United Kingdom get involved?

We hope lots of people from the UK can join us this year – we want to send a message to the world that Iraqi children matter, and that we stand in solidarity with them. Signing up for the race is the best way you can help ICF and these kids – we need help to provide support to so many at-risk children in Iraq.

You can sign up and register as a virtual participant, and we will send you a finishers medal.

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Iraq’s Economic Update — April 2022

Iraq’s economy is gradually recovering from the twin shocks of the pandemic and collapse in oil prices in 2020. Both oil and non-oil growth are on track to reach their pre-pandemic levels as oil production increases and the easing of COVID-19 restrictions restores domestic economic activity.

Fiscal and external deficits are back to surpluses as oil prices continue to surge. Growth in the medium term is projected to be driven by the oil sector as OPEC+ production cuts are phased out. The outlook remains subject to significant risks including uncertainties relating to the impact of geopolitical tensions, the ongoing pandemic, security challenges, and climate change.

Recent Developments

Iraq’s economy is gradually rebounding following the deep economic strains of the COVID-19 pandemic. Real GDP is estimated to have edged up by 1.3% in 2021, after a sharp contraction of 11.3% in 2020. The rebound was mainly driven by the non-oil sector which grew by 6% in 9 months of 2021-2021 year-on-year (y/y), underpinned by a strong performance of the high contact sectors including transport, accommodation, and retail sectors.

However, agriculture and construction contracted by 17.5% and 36.8% respectively, following severe droughts, energy outages, and the rising global price of inputs. In 9M-2021, oil GDP contracted by 4%(y/y) as Iraq adjusted its oil production as per the OPEC+ agreement. Headline and core inflation edged up to an average of 6% and 6.6%(y/y) in 2021, respectively, following the 23% devaluation in December of 2020 and the gradual recovery in domestic demand.

Outlook

The turnaround in oil markets has significantly improved Iraq’s economic outlook in the medium term. Overall growth in 2022 is now forecast at 8.9% as OPEC+ quotas end and Iraq’s production surpasses its pre-pandemic level of 4.6 mbpd. Growth in the outer years is projected to remain modest at 3.7% on average as oil production moderates.

Non-oil GDP growth is projected to converge to its long-term potential growth trend in part aided by higher investments that would be financed through the oil windfall. However, growth is forecast to remain constrained by the economy’s limited absorptive capacity and other inefficiencies.

Click here to download the full report.

(Source: World Bank)

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Iraqi Working Group to coordinate with Iran on Gas Supply

By John Lee

Iraqi Prime Minister Mustafa al-Kadhimi has ordered that a working team from the Ministry of Electricity travel to Iran to solve problems related to the supplying of gas.

At a meeting with the Electricity Ministry and senior officials on Sunday, there was discussion about the high electricity demand in summer, and how to remove obstacles relating to the production and distribution of electricity.

The meeting addressed plans to protect electric pylons from sabotage, and the status of the rehabilitation work on the Baghdad / Baiji 400KV line.

(Source: Office of the Iraqi Prime Minister)

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Iraq-Jordan Pipeline Decision Delayed Again

By John Lee.

Iraq’s oil ministry has said that future of the long-delayed oil export pipeline from Iraq to the Jordanian port of Aqaba will be decided by the next government.

The country has still not formed a new government following parliamentary elections in October.

At a press conference at the weekend, the Ministry of Oil clarified that the project, which it says will not exceed $8.5 billion, is still “under technical study“, and has not yet been put out to contract.

It also revealed that the Council of Ministers agreed to change the contract basis from BOOT (build-own-operate-transfer) to EPCF (engineering, procurement, construction and financing), which is sometimes referred to as “turnkey“, for the entire project; it had previously been split between the two methodologies.

The total capacity of the pipeline from Basra to Haditha is planned to be 2 million barrels per day (bpd), with one million bpd planned for the section from Haditha and Aqaba.

The American company Honeywell UOP was recently approved to develop Haditha refinery.

See also.

(Source: Ministry of Oil)

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DNO releases latest Production Data

By John Lee.

DNO has issued an update on production and sales volumes for the quarter as well as other key financial information.

Volumes (boepd):

Gross operated production Q1 2022 Q4 2021 Q1 2021
  Kurdistan 106,465 107,472 111,985
  North Sea
Net entitlement production Q1 2022 Q4 2021 Q1 2021
  Kurdistan 26,670 29,367 28,593
  North Sea 12,700 13,571 15,173
Sales Q1 2022 Q4 2021 Q1 2021
  Kurdistan 26,670 29,367 28,593
  North Sea 10,689 23,289 10,953

Selected cash flow items

During the quarter, DNO received USD 206.6 million net from the Kurdistan Regional Government, of which USD 160.7 million represents the entitlement share of October, November and December 2021 Tawke license crude oil deliveries.

Of the balance, USD 13.8 million represents override payments equivalent to three percent of gross October and November 2021 Tawke license revenues and USD 32.1 million represents payments towards arrears built up from non-payment of certain invoices in 2019 and 2020.

DNO paid one tax installment of USD 12.6 million in Norway as tax losses for 2021 ended lower than estimated tax losses that were the basis for tax refunds received during H2 2021.

The Company paid a dividend of NOK 0.20 per share, totaling USD 22.2 million.

(Source: DNO)

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KRG to continue Oil Negotiations with Baghdad

By John Lee.

The KRG’s Council of Ministers held its weekly meeting on Wednesday, led by Prime Minister Masrour Barzani.

Referring to the recent round of discussions to resolve the dispute over oil sales between Erbil and Baghdad, the Council stressed the importance of continuing to defend the Kurdistan Region’s constitutional rights within Iraq.

It added that negotiations with Baghdad will continue until a mutually acceptable agreement is reached concerning the Region’s oil and gas industry.

With no final agreement having yet been reached, the Council added that, while they regard the situation as a violation of the Iraqi oil and gas law, contractual obligations to oil companies currently engaged in the Region will be fulfilled regardless.

(Source: KRG)

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