Page 13 - DMEA Week 03 2023

DMEA NEWS IN BRIEF DMEA

POLICY of six months. I don’t know if that would be December 2022. The gasoline price will also
realistic ... but I’m hoping that we can do it as be cut to SDG506 ($0.88) from SDG620 last
Kurdish PM sees oil soon as possible.†month.
Under the Iraqi constitution, the KRG is
Sudan’s energy ministry is regularly
revenue deal with Baghdad entitled to a portion of the national budget. reviewing fuel prices each month based on
global oil prices, since the commodity was
But the arrangement collapsed in 2014
in months when the Kurds seized control of Iraq’s main completely liberalised in January 2021.
Last year, the government announced
northern oilfields in Kirkuk from Islamic State
A long-running dispute on oil revenue- militants and began selling crude from there the final lifting of fuel subsidies as part
sharing between Iraq’s national government independently. of economic reforms agreed with the
and the semi-autonomous Kurdistan In 2018, Iraqi forces retook disputed International Monetary Fund (IMF). Reforms
region may be resolved within months with territories, including the oil city of Kirkuk. included liberalising the local currency in
agreement on a hydrocarbons law, Iraqi Baghdad resumed some budget payments a bid to eliminate economic and monetary
Kurdish Prime Minister Masrour Barzani said but they have been sporadic, and the federal imbalances.
on Tuesday. government has tried to bring KRG revenues After the succession of South Sudan in
Speaking after talks in Baghdad last week under its control, including through local 2011, Sudan’s oil production declined from
with Iraqi Prime Minister Mohammed al- court rulings and threats of international 450,000 barrels per day (bpd) to less than
Sudani, Barzani said the federal government arbitration. 60,000 (bpd), prompting the government to
committed to freeze for now court actions it The standoff has affected the KRG’s import more than 60% of its oil needs.
had taken for control of oil and gas revenues ability to pay international oil companies BNE
from the Kurdish region. (IOCs) operating on its territory and to pay
The dispute between Erbil and Baghdad thousands of local employees. PetroSA seeks partner to
erupted last year after a February federal court “We always made sure that all the IOCs
ruling that deemed the legal foundations and oil traders know that the KRG is very resume full production at
of the Kurdistan region’s oil and gas sector committed to paying whatever they owe to the
unconstitutional. companies,” Barzani said. Mossel Bay
Agreement on regular budget payments When it agreement was reached with
from Baghdad would help authorities in Baghdad, the KRG would “expedite the State-owned Petroleum Oil and Gas
the Kurdish Regional Government resolve payments and make sure we can close the gap Corporation of South Africa (PetroSA)
payment delays to international oil companies ... that they have been tolerating so far.” has issued a request for proposals (RFP) to
in the region, as well as easing a backlog in REUTERS establish a partnership for the development,
salary payments for KRG employees. refurbishment, modification, upgrade,
“What we have agreed is that all those funding and/or operation of its gas-to-liquids
pressures on the KRG will be halted and FUELS (GTL) refinery, in Mossel Bay.
stopped for the moment and we will wait PetroSA is planning to reinstate to full
until we have the hydrocarbon law,†Barzani Sudan cuts local fuel prices production its Mossel Bay production assets,
told Reuters on the sidelines of the World which includes the FA Platform and GTL
Economic Forum in Davos. for January refinery (gas loop and liquids refinery) in the
Until that deal was reached, the two sides earliest possible time, at least cost, following
would cooperate in oilfield management, oil The Sudanese government decided to reduce suspension of production in 2020 owing to
sales and revenue-sharing - which he said local fuel prices for the rest of January starting feedstock challenges.
would eventually be formalised in the budget. from Thursday (January 11), the state news The Mossel Bay refinery is able to process
Asked about the timing for agreement on agency said citing the energy ministry. both gas and condensate.
the hydrocarbon law, Barzani said it should The local price for diesel will be cut to PetroSA says a long-term feedstock
be within months. “We had a time frame SDG628 ($1.11) from SDG660 ($1.14) in solution is under development, which is
expected to supply feedstock to enable full
production capacity as of 2027/28.
This solution is most likely to affect the FA
Platform and gas loop section. The condensate
section could be decoupled from this long-
term solution – ensuring uninterrupted
production.
PetroSA says its shareholder is in support
of a partnership agreement to accelerate
production reinstatement and optimise the
operation in the short to medium term.
Interested parties are invited to submit
conceptual proposals, on an incentivised basis,
to partner with PetroSA on the project.
Incentivisation proposals should take into
account PetroSA’s desire to link the success
of the projects to financial incentives for the

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