Page 17 - DMEA Week 01 2021

DMEA POLICY DMEA

Iran resumes gas exports,

cuts oil target

IRAN IRAN has restarted gas flows to Iraq after an in Iraq more quickly to purchase basic goods
agreement was reached between Tehran and and other needed items in the near future.”
Supplies were cut in Baghdad regarding the latter’s arrears. Mean- Meanwhile, Baghdad said on December 21 that
late December because while, the Islamic Republic’s parliament lowered it would export 700,000 tonnes of barley to Iran
of Baghdad’s debts. the government’s oil export target from 2.3mn for $125 per tonne as part of the repayment plan,
barrels per day to 1.5mn bpd. with cash and other goods to be used in a partial
Gas supplies to Iraq were cut in late Decem- barter arrangement.
ber with Baghdad owing its neighbour more
than $6bn for gas already provided, increasing Export cut
the likelihood of power shortages across the Iran initially proposed boosting its exports con-
country. However, an agreement was reached siderably with an incoming US Biden admin-
by Iranian Energy Minister Reza Ardakanian istration; however, the knock-on effect from
and his Iraqi counterpart, Majid Mahdi, during coronavirus (COVID-19) on global demand and
a meeting in Baghdad for flows to resume at the possibility of extended sanctions have caused
normal rates. the country to revise down its figures.
Ardakanian told state news agency IRNA: The Iranian parliament’s corporate commit-
“good agreements were reached with the Iraqi tee, in charge of the overall official export fig-
officials to withdraw Iranian funds from Iraq ure, said with the current situation that export
to pay for the purchase of the coronavirus vac- number was “unrealistic” and would need to be
cine from Europe using Iran’s existing financial changed.
resources in Iraq.” This followed the announce- “The 2.3mn-barrel sales ceiling was unreal-
ment by Tehran that it had been given the istic and non-realisable ... In the most optimis-
go-ahead by US authorities to transfer $244mn tic case, members of the commission reached
to buy coronavirus vaccines from the WHO’s the conclusion that the government could
COVAX alliance. achieve exports of 1.5mn barrels,” said Malek
The gas deal was reached after Iraq had paid Shariati-Niasar, head of the energy board in the
an “appreciable portion” of the debt to Iranian parliament.
state gas and electricity companies, according to He added that the commission had con-
Ardakanian. cluded that the government can count on only
He added: “With these new arrangements, 1mn bpd in the current climate, but noted: “we
we hope to use our existing financial resources can revise this up to 1.5mn bpd.”™

Week 01 07•January•2021 www. NEWSBASE .com P17