Category: Politics

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Video: Kurdistan Secession Bid takes a toll on Economy

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

The economy in the Kurdish region of Iraq has taken a hit after the referendum on secession.

The central government in Baghdad has closed international airspace, tourists are staying away, and there’s been fighting between Iraqi forces and Kurdish Peshmerga.

And while a ceasefire is now in place, uncertainty continues to affect the region and its economy.

The Kurds are disappointed in the people they thought were their allies, especially the US.

Al Jazeera‘s Stefanie Dekker reports from Dohuk, Northern Iraq@

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60 New Projects to be Announced at IBBC Dubai Conference

Iraqi ministers intend to announce and discuss up to 60 intended projects at the IBBC summit conference this weekend in Dubai.

In a surge of confidence, a number of Iraqi ministers will be unveiling a raft of infrastructure, oil, power and industrial projects across numerous industry sectors:

  • Construction: Water treatment, waste water, housing, malls & infrastructure projects
  • Industry & Minerals: 10 new projects, including petrochemicals, methanol and phosphates
  • Oil: 4 new refineries, 3 refurbishments and 2 new initiatives
  • Energy: 32 separate power projects
  • Transport: Port projects and new railways

Vikas Handa, Director of IBBC Dubai says:

“We have been pleasantly surprised by the volume of opportunities the Iraqi Ministers have come forward with this Autumn, and it’s clear they are keen to drive forward economic development through major projects. There are also numerous adjacent opportunities on offer for a broad range of sectors.

“For those companies interested to attend the Conference, they will also be able to engage with the Delegation at more intimate round table discussions.

“We welcome companies to enjoy the inside track, to meet the attending ministers and discuss how your company can engage with these opportunities.”

To attend, register and sign up for the conference here: www.webuildiraq.org/ibbc-conference/autumn-conference/

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Baghdad “Looks to Take Control of KRG Oil”

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

The Iraqi State Organization for Marketing Oil (SOMO) announced Nov. 2 that it is arranging with Turkey to allow SOMO to sell Iraqi crude from the disputed territories through the pipeline from Kirkuk to the Ceyhan Turkish port.

The Kurdistan Regional Government (KRG) used to export about 500,000 barrels per day independently through Ceyhan before the Baghdad operation to retake the disputed areas in mid-October.

It was not long after the Iraqi army took over the oil fields in Kirkuk in a military operation to “impose security,” as described by Prime Minister Haider al-Abadi, that the federal government resumed oil pumping operations.

The operations started about a week after the clashes between governmental forces and Kurdish peshmerga forces. Meanwhile, the Ministry of Oil rushed to increase oil production, and on Oct. 23, the ministry requested the help of the British petroleum company BP in increasing production in Kirkuk oil fields to more than 700,000 barrels per day. The ministry also announced the formation of a ministerial committee to advance the oil industry in the province of Kirkuk.

Kirkuk has more than 35 billion barrels in oil reserves and a production capacity ranging from 750,000 to 1 million barrels per day. The federal government seems determined to control the oil sources, especially in Kirkuk and the disputed areas. In light of this, on Oct. 19, the Iraqi minister of oil warned all countries and international petroleum companies against signing contracts with any Iraqi party without first consulting the federal government.

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Rosneft in the Kurdish Region: Moscow’s Balancing Act

By Ahmed Tabaqchali. Originally published by Iraq in Context; re-published by Iraq Business News with permission. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Between February 2017 and mid-October, Rosneft signed a number of deals with the Kurdish Regional Government (KRG) that established for it, and by extension for Russia, a major position as both an investor and stakeholder in the Kurdish Region of Iraq (KRI)’s hydrocarbon resources and infrastructure.

The move was interpreted, especially by the KRG, as implicit support for the KRG in its bid for independence, especially in light of the latest deal signed following the reassertion of Iraq’s federal control over Kirkuk and other disputed territories. While there is an element of truth to this thinking, the deals are part of a wider geopolitical positioning for Russia as a major gas supplier to Europe and as an emerging power in the Middle East.

The deals provide Rosneft, and by extension Russia, effective control of the KRG’s Oil & Gas infrastructure, and a controlling stake in the region’s finances in more ways than one.

Within the oil space it has established this in three ways. The first was by providing USD 1.5bn in financing via forward oil sales payable over 3-5 years. This would be payable in kind from the KRG’s exports, until recently at about 550,000-600,000 barrels per day (bbl/d). However, the loss of the Kirkuk fields takes away about 430,000 bbl/d of production or eventually about half of the KRG’s exports.

This leaves the KRG with a tiny revenue stream after payments to International Oil Companies (IOC)’s, from which to make payments on forward oil sales of up USD 3.5 bn including Rosneft’s USD 1.5bn. A complicating factor is the repayment of other KRG debt, estimated at over USD 21bn by end of 2017, which will have to be factored into debt payment sustainability.

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Baghdad may Export Kirkuk Oil to Iran

By John Lee.

Iraq’s State Oil Marketing Organization (SOMO) has reportedly confirmed that talks are ongoing between Baghdad and Tehran to export crude oil from Kirkuk to the Kermanshah refinery (pictured) in Iran.

SOMO Director Alaa al-Mussawi is quoted as saying that trucks would initially supply 15,000 barrels of crude oil per day (bpd) to the refinery, increasing to 25,000 bpd.

Kirkuk oil has until recently been exported to international markets via the Ceyhan port in Turkey.

(Source: Kurdistan 24)

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Will Iraqi-Saudi Rapprochement Undermine Iran’s Role in Iraq?

By Mustafa Saadoun for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

Iraqi-Saudi relations have witnessed significant improvement after years of boycott that had worsened during Nouri al-Maliki’s rule between 2006 and 2014. On Oct. 22, the establishment of a Coordination Council between the two countries was announced.

Iran, which is seeking to expand its influence in Iraq, might not like this rapprochement, especially following the latest meeting between Iraqi Prime Minister Haider al-Abadi and Saudi King Salman bin Abdul-Aziz Al Saud that took place with US blessing when US Secretary of State Rex Tillerson attended the launching of the Coordination Council.

Former Iraqi Ambassador to the US Lukman Faily told Al-Monitor, “Over the past years, the US attempted to take serious steps to mend ties between Iraq and Saudi Arabia. With this development, the region’s geopolitics will change.”

Saudi newspaper Asharq al-Awsat reported that the Iraqi-Saudi rapprochement will “curb the appetite of the parties that cause stability,” in a clear reference to Iran, which Saudi Arabia always accuses of “destabilizing the situation in the region.”

The results of the US-brokered Iraqi-Saudi rapprochement started appearing when Tillerson asked Iranian militias to leave Iraq, saying that the Iraqi-Saudi rapprochement will “counter some of the unproductive influences of Iran inside of Iraq.”

Hashem al-Haboubi, the deputy secretary general of the Iraqi National Accord movement spearheaded by Iraqi Vice President Ayad Allawi, told Asharq al-Awsat that the Iraqi-Saudi rapprochement might help Iraq break free from Iranian control.

The Iraqi-Saudi rapprochement does not include the Iraqi state in its explicit form only, but also expands to political parties that are at odds with Iran such as the Sadrist movement led by Muqtada al-Sadr, who visited Saudi Arabia and the United Arab Emirates two months ago and headed to Jordan recently to visit King Abdullah.

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How Iran is Winning game of chess in Kirkuk

By Fazel Hawramy for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

For now, Prime Minister Haider al-Abadi has pushed the separatist Kurds back and extended the power of the federal government once again to the areas considered disputed under the Iraqi Constitution. The Kurds are beaten. But the key question is how long this equilibrium will last.

The Kurds in Kirkuk and other disputed areas are disillusioned with the Kurdish parties, including the leadership of both the Patriotic Union of Kurdistan (PUK) and the Kurdistan Democratic Party (KDP). No Kurdish leader has come forward to apologize to their constituents for what went wrong, let alone attempt to explain what really happened on Oct. 15-16, when thousands of peshmerga retreated and left the people of Kirkuk to their own devices.

Meanwhile, the Turkmens in Kirkuk and nearby Tuz Khormato have become united through their opposition to the Sept. 25 Kurdish independence referendum and other perceived Kurdish excesses. But as the effect of Baghdad’s victory over the Kurds wears off, the old animosities and the regional states’ rivalries in Kirkuk are bound to resurface.

The Turkmens are divided along sectarian lines. The Shiite-dominated Popular Mobilization Units (PMU) that are protecting the Shiite Turkmens in the south of Kirkuk and the city of Tuz Khormato — the major Kurdish-Turkmens flashpoint — are directly linked to Tehran. On the other hand, most of the Sunni Turkmens in Kirkuk rally behind the Iraqi Turkmen Front, which has strong links to Ankara.

“There is no denying that, more than all groups in Iraq, the Turkmens are supported by Turkey. We are part of the Turkish people,” Ali Mahdi, the spokesperson for the Iraqi Turkmen Front told Niqash in May. “And we have always called upon them [Turkey] to play a role in developments taking place here.”

In 2014, the Turkmens failed to agree on a Turkmen candidate for the head of the Kirkuk provincial council, which could have prevented the Aug. 29 inclusion of the disputed city in the Sept. 25 Kurdish independence referendum. In parallel, the deep-rooted tension between the Kurds and the Turkmens, particularly in Tuz Khormato, has intensified as the threat of the Islamic State (IS) has receded.

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How Iran helped Baghdad seize back Kirkuk

By Fazel Hawramy for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

Around 8 p.m. on Oct. 15, an Iranian general from the powerful Islamic Revolutionary Guard Corps (IRGC) accompanied by Iraqi Commanders Abu Mahdi al-Muhandis and Hadi al-Ameri sat down with the Kurdish commanders in Kirkuk.

The IRGC commander, known only by his surname, Eqbalpour, who works closely with Quds Force chief Qasem Soleimani (pictured), told the Kurds to give up the city peacefully. “If you resist, we will crush you and you will lose everything,” the general warned the peshmerga commanders, a source with intimate knowledge of the meeting told Al-Monitor.

The Kurdish leadership had turned down repeated requests by Soleimani to cancel the Sept. 25 independence referendum, to his indignation. The peshmerga commanders who had fought Saddam Hussein’s army alongside Soleimani and other IRGC commanders in the 1980s knew that the Quds Force commander would take his revenge. After consulting with the top Kurdish leadership, the peshmerga commanders told Eqbalpour that they would not give up Kirkuk.

The Iranian commander took out a map of the area and spread it out in front of his Kurdish counterparts. “This is our military plan. We will hit you tonight from three points — here, here and here,” the Quds Force officer stated, and then left the meeting with his entourage.

Not far from the main Patriotic Union of Kurdistan (PUK) building in Kirkuk, where the meeting took place, a group of American military advisers sat at the sprawling K1 air base. The soldiers would keep their silence as Soleimani and the Iraqis orchestrated the attacks on Kirkuk. One Kurdish official even suggested that there must have been an international agreement to launch such a coordinated strike. The Kurds were in for a big surprise.

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How Iran helped Baghdad seize back Kirkuk

By Fazel Hawramy for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

Around 8 p.m. on Oct. 15, an Iranian general from the powerful Islamic Revolutionary Guard Corps (IRGC) accompanied by Iraqi Commanders Abu Mahdi al-Muhandis and Hadi al-Ameri sat down with the Kurdish commanders in Kirkuk.

The IRGC commander, known only by his surname, Eqbalpour, who works closely with Quds Force chief Qasem Soleimani (pictured), told the Kurds to give up the city peacefully. “If you resist, we will crush you and you will lose everything,” the general warned the peshmerga commanders, a source with intimate knowledge of the meeting told Al-Monitor.

The Kurdish leadership had turned down repeated requests by Soleimani to cancel the Sept. 25 independence referendum, to his indignation. The peshmerga commanders who had fought Saddam Hussein’s army alongside Soleimani and other IRGC commanders in the 1980s knew that the Quds Force commander would take his revenge. After consulting with the top Kurdish leadership, the peshmerga commanders told Eqbalpour that they would not give up Kirkuk.

The Iranian commander took out a map of the area and spread it out in front of his Kurdish counterparts. “This is our military plan. We will hit you tonight from three points — here, here and here,” the Quds Force officer stated, and then left the meeting with his entourage.

Not far from the main Patriotic Union of Kurdistan (PUK) building in Kirkuk, where the meeting took place, a group of American military advisers sat at the sprawling K1 air base. The soldiers would keep their silence as Soleimani and the Iraqis orchestrated the attacks on Kirkuk. One Kurdish official even suggested that there must have been an international agreement to launch such a coordinated strike. The Kurds were in for a big surprise.

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Luaibi asks BP to Return to Kirkuk Oilfields

By John Lee.

Iraqi Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) has asked UK-based BP to develop the disputed Kirkuk oilfields.

The move comes just a day after Baghdad regained control of the area from Kurdish forces. Control of the field remains split between the Kurdistan Regional Government (KRG) and Baghdad’s North Oil Company (NOC).

According to the Financial Times, BP’s chief executive Bob Dudley said before lunchtime yesterday that he had not yet heard from the Iraqi oil minister, but indicated the company could be interested.

(Sources: Ministry of Oil, Financial Times)