Page 5 - DMEA Week 14 2022
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DMEA                                         COMMENTARY                                               DMEA



                                                                                                  Baz Karim Barzanji









































                         transferred to the latter.           were Kurdish plans to export gas to Europe via
                           While Iraq continues to struggle to form  Turkey with the support and involvement of
                         a government, the next step of passing a 2022  Israel.
                         budget is likely, as in previous years, to be held   An Iraqi official said: “There had been two
                         up by wrangling about the KRG’s revenues from  recent meetings between Israeli and US energy
                         oil exports and non-oil revenues that include  officials and specialists at the villa to discuss ship-
                         customs fees and taxes.              ping Kurdistan gas to Turkey via a new pipeline.”
                           In previous budgets the KRG has been allo-  Meanwhile, Turkish officials said that talks
                         cated 12.67% of the total budget, with this con-  between US and Israel had been held to dis-
                         tingent on it handing over the net revenues from  cuss the plan, but did not disclose the location.
                         250,000 bpd of oil exports to Somo and giving  Another Iraqi security official said, however,
                         these to the central treasury.       that Barzanji’s villa had been the meeting place.
                                                              “There had been two recent meetings between
                         Refinery attack                      Israeli and US energy officials and specialists at
                         This week, three missiles landed near the 100,000  the villa to discuss shipping Kurdistan gas to Tur-
                         bpd Erbil refinery owned by the domestic KAR  key via a new pipeline,” he said.
                         Group.                                 For Iran’s part, Reuters quoted an Iranian
                           While the strikes did not cause and dam-  security official as saying that the strikes were a
                         age or casualties, the missiles mark the second  “multi-purposed message to many people and
                         attack to target related to KAR CEO Baz Karim  groups. It’s up to them how to interpret it. What-
                         Barzanji in the last few weeks after his home was  ever [Israel] is planning, from energy sector to
                         struck by ballistic missiles fired by Iran’s Islamic  agriculture, will not materialise.”
                         Revolutionary Guard Corps (IRGC).      However, Barzanji has insisted that he is not
                           This week, the Iraqi News Agency (INA) said  involved in any such discussions and has no
                         that “initial information show the missiles were  knowledge of plans to export gas from Kurdistan
                         launched from Nineveh” Province in Federal  to Europe, noting that he does not believe that
                         Iraq.                                the region has the capacity to export gas at any
                           KAR has previously drawn ire from Baghdad  point in the near future.
                         for its operation of the Bai Hassan and Avana oil-  While Kurdistan is developing sizeable
                         fields near Kirkuk, of which Kurdish Peshmerga  gas resources in addition to its well-known oil
                         fighters took control during efforts to counter  reserves, the expansion of the region’s energy
                         Islamic State insurgency. However, Iraqi and  sector will continue to draw the scrutiny of its
                         Turkey security officials have said that while the  southern and eastern neighbours, both of which
                         latest strikes have been meant as a warning to  would want to exert greater influence over
                         American allies, the main reason behind them  Erbil.™



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