Page 4 - MEOG Week 35 2022

MEOG COMMENTARY MEOG

Iraqi exports increase as legal

and security issues continue

Iraq’s oil exports have increased despite political and security concerns as
a 10-month wait to form a new government shows little signs of resolution.

IRAQ IRAQ’S federal authorities reported this week officials were quoted as saying that the court had
that the country’s total oil exports hit 3.3mn bar- taken action against UK-based Genel Energy,
rels per day in July, with production increasing Norway’s DNO, Canadian firm Western Zagros
WHAT: by 100,000 bpd on the month. and US-based HKN.
Iraqi oil exports rose Meanwhile, the country’s long wait for a new These companies, alongside Addax, Gulf
by 100,000 bpd during government became violent as protests engulfed Keystone Petroleum and Shamaran Petroleum,
July as work continues the heart of Baghdad. were summoned to a court date by the MoO in
to raise upstream May.
production levels. Regional rammy Meanwhile, the KRG moved to dispel con-
The export update comes as Baghdad has cerns about Kurdish crude purchases, saying
WHY: renewed threats against companies facilitating that the region’s oil “continues to be produced,
Baghdad continues to the Kurdistan Regional Government’s (KRG) to be shipped, to be sold, to be refined, and to
benefit from high oil independent oil sales. Having already initiated be consumed. Investment interest remains and
prices, but that has court proceedings against several of the IOCs production is expected to increase,” noting
done little to ease its developing the Kurdistan Region’s oil and gas that production is currently running at around
quarrels with Erbil over assets, the federal authorities are looking to 450,000 bpd.
Kurdistan’s independent take similar measures against those loading and It rejected Al-Yassiri’s comments while add-
development of transporting Kurdish crude. ing that it did not recognise the legitimacy of
resources. In a letter to oil traders and crude buyers the Karkh court, saying instead that the issues
– which was leaked to various news outlets – “must be resolved in accordance with the Federal
WHAT NEXT: Alaa al-Yassiri, director-general of the state oil Constitution and the constitutional rights of the
As those arguments marketer Somo, said that the Iraqi government people of the Kurdistan Region and all of Iraq.”
rumble on, the fight came planned to take legal action. Al-Yassiri said steps Erbil concluded by saying that it would “con-
much closer to home would be taken “against all parties involved, in tinue to take vigorous steps to defend those
this week as supporters order to block loadings of those unlawful car- rights”.
of Moqtada al-Sadr goes originating from Iraq including but not lim- Meanwhile, reports emerged this week that
clashed with other groups ited to those from Kurdistan Region”, according contractors working on the expansion of the
in central Baghdad to the Iraq Oil Report. Khor Mor gas field in the Kurdistan Region have
following his retirement In July, the Karkh Commercial Court failed to return to the project following a string of
from politics. in Baghdad moved to annul oil contracts recent rocket attacks, said to be aimed at destabi-
between IOCs and the KRG’s Ministry of Nat- lising Erbil’s efforts to export gas through Turkey
ural Resources. Senior Ministry of Oil (MoO) with the support of Israel.

P4 www. NEWSBASE .com Week 35 31•August•2022