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KRG lines up new oil chief
Kurdistan
Former Minister of Natural Resources Ashti Hawrami
THE Kurdistan Regional Government (KRG) is believed to have chosen its preferred candi- date to fill the vacant role of Minister of Natural Resources, following ashti Hawrami’s mid-year move into the cabinet of Prime Minister Masrour Barzani.
Iraq Oil Report this week quoted sources close to proceedings as saying that the man to replace Hawrami would be Baz Karim, the pres- ident and CEO of the local KaR Group.
One source was quoted as saying: “It’s effec- tively a done deal; it’s just a matter of time. He has the connections locally and internationally, he is well respected, and he is in the main position. But it is Kurdistan, so he is not appointed until he is appointed – but effectively he is the man.”
KaR Group is a significant player in the Kurdish oil and gas industry, owning refining and distribution assets.
Hawrami left the post in July, having headed up the Ministry of Natural Resources (MNR) since 2006, during which time, he spearheaded Kurdistan’s development of the region’s own oil and gas assets.
He was made an advisor to Barzani and remains a member of the KRG’s Oil and Gas
Council, which is the final decision-maker on strategy and contracts within the sector.
Lawmaker Sirwan Baban was quoted by Reu- ters on July 21 as saying that there remain “differ- ences between the key political parties over who will succeed Hawrami”.
In his new role, Hawrami will advise Barzani on energy affairs and “help run the energy port- folio until a new minister is appointed”, Baban added.
Hawrami has been in the spotlight in recent months as a result of a large corruption case against him and the KRG relating to illicit pay- ments in return for hydrocarbons concessions, from which he and other senior officials are reported to have directly benefitted.
In June, the Barzani family tightened its grip on power with Masrour’s appointment as Prime Minister and his cousin Nechirvan as President. While the pair now hold the official top spots in government, Masrour’s father Masoud, remains kingpin.
Masoud Barzani resigned from office in late 2017 following his failed independence push, which saw Iraqi forces move in to take control of the key Kirkuk oilfields.
Iran demands Seoul settles of $6bn oil bill but sanctions pose problem
iran
IRaN has demanded a $6bn payment from South Korea for crude oil deliveries made in the past few years, Tasnim news agency reported on December 17 citing South Korean news reports referred to by Bloomberg that quote unnamed government officials.
The South Koreans have, according to daily Chosun Ilbo, reportedly deposited the funds in two South Korean banks but they have not been transferred to Iran because of US sanc- tions imposed on the Iranians that bar use of the global financial system.
Iran’s foreign ministry is said to have called in the South Korean ambassador to Tehran last month to express “strong regret” over the situa- tion. The Koreans are said to have explained that they would cooperate with the US to successfully complete the financial transfer.
South Korea was one of eight big importers of Iranian oil importers that for several months until May this year were able to import crude from Iran without fear of sanctions thanks to waivers agreed by the US.
However, once those waivers were removed, after Washington opted to pursue a strategy of attempting to push Iranian crude exports down to zero, South Korea was forced to wind down its purchases of the commodity and find alternative suppliers. Seoul, highly dependent on US back- ing in its disputes with North Korea, was quick to comply when it came to ending purchases of Iranian oil and substantially covered the created deficit in supplies by buying US oil, according to various reports.
Financial transactions between Seoul and Tehran for shipments of food and medical items have even effectively run aground since Wash- ington toughened sanctions against the Central Bank of Iran (CBI) in September, announcing that it required third countries to provide infor- mation on such trade with the Islamic Republic.
The CBI has South Korean won-based accounts at Woori Bank and the Industrial Bank of Korea in Seoul for payments covering oil imports and products that are not subject to sanctions such as food and medicines.
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w w w . N E W S B A S E . c o m Week 50 18•December•2019
