Page 13 - MEOG Week 04 2021

MEOG NEWS IN BRIEF MEOG

POLICY Iran pumped about 2 million barrels on Tuesday, 113 MPs – mostly Shiite – have
of crude a day in December, according to called for various changes to the budget bill.
US tries to seize oil data compiled by Bloomberg. That’s barely section 2a of article 11 – which deals with the
The seventh point calls for a change of
half what it was producing before Trump
shipment it says came from left the nuclear deal, known as the Joint Kurdistan Region’s oil revenues, exchanged
Comprehensive Plan of Action, and tightened
for federal funds - to “the Kurdistan region
Iran sanctions. Of today’s output, only around 10% will abide by sending 460,000 barrels of oil
is exported, most of it to China.
per day (BOPD) to SOMO, and in case of
The US is trying to seize around 2 million The Achilleas, a vessel known as a Very overproduction, they abide by sending the
barrels of what it thinks is Iranian oil, Large Crude Carrier, received its oil from excess amount to SOMO as well.”
according to people familiar with the matter, another ship at the United Arab Emirates In December 2019, Baghdad agreed to
in Washington’s latest attempt to block the port of Fujairah in November. According to send Erbil a 12.67 percent share of the federal
Islamic Republic’s energy exports. the shipping documents, the Achilleas was budget in exchange for 250,000 barrels of
The crude is on board the Liberia-flagged then scheduled to sail to the Omani capital of oil per day. Neither side fully abided by the
Achilleas, which is sailing to the US after the Muscat. agreement, however.
Department of Justice issued a seizure order, Its tracking system was switched off from Baghdad failed to pass a budget in 2020
said the people, who asked not to be identified Jan. 1 until Jan. 13, when it was sailing near because of political turmoil, record low oil
as they’re not authorized to speak to media. South Africa, according to data compiled by prices, and the coronavirus pandemic. In
The order came before Joe Biden succeeded Bloomberg. It’s now traveling across the South November, Iraqi lawmakers passed the Fiscal
Donald Trump as US president on Jan. 20, Atlantic Ocean. Deficit Coverage Bill approving loans to cover
according to the people. Under Trump, The US has tried to seize Iranian petroleum civil servant salaries for the last two months of
Washington tightened sanctions on Iran in before. Last year, it intercepted vessels it the year.
an effort to halt its oil sales, end its nuclear said were carrying gasoline from the Islamic The bill passed with a majority vote,
activities and stop it interfering in other Republic to Venezuela. despite a walkout staged by Kurdish MPs,
Middle Eastern countries. Many ships leaving Iran switch off their angered that Erbil is obliged to hand over
The Achilleas’ Greek owner, Capital Ship transponders, making it difficult to track an unspecified amount of oil in exchange
Management Corp., alerted US authorities to them and to calculate the level of the country’s for funds – a clause they said was not in the
the possibility it had unknowingly taken on exports, which the government doesn’t original bill.
Iranian crude, after initially believing it came disclose. Kurdistan Region Deputy Prime Minister
from Iraq, said the people. The vessel is fully BLOOMBERG Qubad Talabani arrived in Baghdad on
loaded and can carry more than 2 million Monday to lead a delegation meeting with the
barrels, according to shipping documents. Iraqi MPs sign letter calling Iraqi parliament regarding Erbil’s share of the
A spokesperson for the Department of federal budget.
Justice declined to comment. on Kurdistan to hand over On December 22, Talabani announced
Biden has said he wants to renegotiate a Erbil and Baghdad had reached a deal on
nuclear pact with Iran that Trump abandoned all oil Iraq’s Federal Budget Bill for 2021 after
in 2018. But Biden’s nominee for Secretary months of dispute. As a result of budget
of State, Antony Blinken, said last week a More than 100 Iraqi MPs have a signed a disputes and low oil prices, the Region’s
rapprochement is a “long way” off. letter asking that the 2021 budget bill obliges civil servants went unpaid for most of 2020
Still, Tehran has said it’s already increasing the Kurdistan Region to hand over all its oil – prompting deadly protests across the
oil exports in anticipation that Biden will to the State Organization of Marketing of Oil Kurdistan Region.
take a softer line. Several firms that monitor (SOMO) in exchange for federal funds. The deal “keeps the common interest
Iranian output -- including Petro-Logistics In a 16-point letter sent to the head of of all Iraqi people, including the people of
SA, Kpler Ltd. and SVB International LLC -- the parliament on January 23 and released Kurdistan Region,” Talabani said at the time.
have said shipments are creeping up. by the state-owned al Sabah via Telegram The 2021 budget bill was approved by
Iraq’s Council of Ministers on December 21.
Parliament has met twice to discuss the bill.
Talabani said that the KRG’s proposed
share of the budget is the same as in 2019 -
at 12.67 percent, and is “less than what we
expected and deserve.”
“Apart from the section talking about the
reduction of dollar exchange rate, the rest of
the requests are empty and will not be worked
on,” Kurdistan Islamic Union (KIU) MP and
member of the Iraqi parliament’s finance
committee Jamal Kochar told Rudaw’s Srwa
Hawrami on Tuesday.
In another section of the letter, it requests
that the dollar exchange rate be reduced to
1,300 dinar per dollar.
According to the current draft, the value of

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