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Iran, Iraq Assess Drilling Cooperation in Oil Projects

A delegation of senior executives from Iraq’s National Oil Company visited senior officials with the National Iranian Drilling Company (NIDC) to discuss cooperation in drilling projects in Iraq.

Cooperation and facilitation of NIDC’s presence in Iraqi projects were discussed during the Monday meeting of the two companies.

A high-profile delegation from Iraq comprising executives of the Iraq National Oil Company and provincial officials from Iraq’s Zigar province paid a visit to NIDC in the southwestern city of Ahvaz, Khuzestan.

The two sides discussed views on facilitation of NIDC’s presence in Iraq, said Saeid Heidarian, an NIDC official.

Securing a toehold in the Iraqi drilling market has always been on NIDC’s agenda, he added.

(Source: Shana)

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Baghdad may Export Kirkuk Oil to Iran

By John Lee.

Iraq’s State Oil Marketing Organization (SOMO) has reportedly confirmed that talks are ongoing between Baghdad and Tehran to export crude oil from Kirkuk to the Kermanshah refinery (pictured) in Iran.

SOMO Director Alaa al-Mussawi is quoted as saying that trucks would initially supply 15,000 barrels of crude oil per day (bpd) to the refinery, increasing to 25,000 bpd.

Kirkuk oil has until recently been exported to international markets via the Ceyhan port in Turkey.

(Source: Kurdistan 24)

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Will Iraqi-Saudi Rapprochement Undermine Iran’s Role in Iraq?

By Mustafa Saadoun for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

Iraqi-Saudi relations have witnessed significant improvement after years of boycott that had worsened during Nouri al-Maliki’s rule between 2006 and 2014. On Oct. 22, the establishment of a Coordination Council between the two countries was announced.

Iran, which is seeking to expand its influence in Iraq, might not like this rapprochement, especially following the latest meeting between Iraqi Prime Minister Haider al-Abadi and Saudi King Salman bin Abdul-Aziz Al Saud that took place with US blessing when US Secretary of State Rex Tillerson attended the launching of the Coordination Council.

Former Iraqi Ambassador to the US Lukman Faily told Al-Monitor, “Over the past years, the US attempted to take serious steps to mend ties between Iraq and Saudi Arabia. With this development, the region’s geopolitics will change.”

Saudi newspaper Asharq al-Awsat reported that the Iraqi-Saudi rapprochement will “curb the appetite of the parties that cause stability,” in a clear reference to Iran, which Saudi Arabia always accuses of “destabilizing the situation in the region.”

The results of the US-brokered Iraqi-Saudi rapprochement started appearing when Tillerson asked Iranian militias to leave Iraq, saying that the Iraqi-Saudi rapprochement will “counter some of the unproductive influences of Iran inside of Iraq.”

Hashem al-Haboubi, the deputy secretary general of the Iraqi National Accord movement spearheaded by Iraqi Vice President Ayad Allawi, told Asharq al-Awsat that the Iraqi-Saudi rapprochement might help Iraq break free from Iranian control.

The Iraqi-Saudi rapprochement does not include the Iraqi state in its explicit form only, but also expands to political parties that are at odds with Iran such as the Sadrist movement led by Muqtada al-Sadr, who visited Saudi Arabia and the United Arab Emirates two months ago and headed to Jordan recently to visit King Abdullah.

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How Iran is Winning game of chess in Kirkuk

By Fazel Hawramy for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

For now, Prime Minister Haider al-Abadi has pushed the separatist Kurds back and extended the power of the federal government once again to the areas considered disputed under the Iraqi Constitution. The Kurds are beaten. But the key question is how long this equilibrium will last.

The Kurds in Kirkuk and other disputed areas are disillusioned with the Kurdish parties, including the leadership of both the Patriotic Union of Kurdistan (PUK) and the Kurdistan Democratic Party (KDP). No Kurdish leader has come forward to apologize to their constituents for what went wrong, let alone attempt to explain what really happened on Oct. 15-16, when thousands of peshmerga retreated and left the people of Kirkuk to their own devices.

Meanwhile, the Turkmens in Kirkuk and nearby Tuz Khormato have become united through their opposition to the Sept. 25 Kurdish independence referendum and other perceived Kurdish excesses. But as the effect of Baghdad’s victory over the Kurds wears off, the old animosities and the regional states’ rivalries in Kirkuk are bound to resurface.

The Turkmens are divided along sectarian lines. The Shiite-dominated Popular Mobilization Units (PMU) that are protecting the Shiite Turkmens in the south of Kirkuk and the city of Tuz Khormato — the major Kurdish-Turkmens flashpoint — are directly linked to Tehran. On the other hand, most of the Sunni Turkmens in Kirkuk rally behind the Iraqi Turkmen Front, which has strong links to Ankara.

“There is no denying that, more than all groups in Iraq, the Turkmens are supported by Turkey. We are part of the Turkish people,” Ali Mahdi, the spokesperson for the Iraqi Turkmen Front told Niqash in May. “And we have always called upon them [Turkey] to play a role in developments taking place here.”

In 2014, the Turkmens failed to agree on a Turkmen candidate for the head of the Kirkuk provincial council, which could have prevented the Aug. 29 inclusion of the disputed city in the Sept. 25 Kurdish independence referendum. In parallel, the deep-rooted tension between the Kurds and the Turkmens, particularly in Tuz Khormato, has intensified as the threat of the Islamic State (IS) has receded.

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How Iran helped Baghdad seize back Kirkuk

By Fazel Hawramy for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

Around 8 p.m. on Oct. 15, an Iranian general from the powerful Islamic Revolutionary Guard Corps (IRGC) accompanied by Iraqi Commanders Abu Mahdi al-Muhandis and Hadi al-Ameri sat down with the Kurdish commanders in Kirkuk.

The IRGC commander, known only by his surname, Eqbalpour, who works closely with Quds Force chief Qasem Soleimani (pictured), told the Kurds to give up the city peacefully. “If you resist, we will crush you and you will lose everything,” the general warned the peshmerga commanders, a source with intimate knowledge of the meeting told Al-Monitor.

The Kurdish leadership had turned down repeated requests by Soleimani to cancel the Sept. 25 independence referendum, to his indignation. The peshmerga commanders who had fought Saddam Hussein’s army alongside Soleimani and other IRGC commanders in the 1980s knew that the Quds Force commander would take his revenge. After consulting with the top Kurdish leadership, the peshmerga commanders told Eqbalpour that they would not give up Kirkuk.

The Iranian commander took out a map of the area and spread it out in front of his Kurdish counterparts. “This is our military plan. We will hit you tonight from three points — here, here and here,” the Quds Force officer stated, and then left the meeting with his entourage.

Not far from the main Patriotic Union of Kurdistan (PUK) building in Kirkuk, where the meeting took place, a group of American military advisers sat at the sprawling K1 air base. The soldiers would keep their silence as Soleimani and the Iraqis orchestrated the attacks on Kirkuk. One Kurdish official even suggested that there must have been an international agreement to launch such a coordinated strike. The Kurds were in for a big surprise.

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How Iran helped Baghdad seize back Kirkuk

By Fazel Hawramy for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

Around 8 p.m. on Oct. 15, an Iranian general from the powerful Islamic Revolutionary Guard Corps (IRGC) accompanied by Iraqi Commanders Abu Mahdi al-Muhandis and Hadi al-Ameri sat down with the Kurdish commanders in Kirkuk.

The IRGC commander, known only by his surname, Eqbalpour, who works closely with Quds Force chief Qasem Soleimani (pictured), told the Kurds to give up the city peacefully. “If you resist, we will crush you and you will lose everything,” the general warned the peshmerga commanders, a source with intimate knowledge of the meeting told Al-Monitor.

The Kurdish leadership had turned down repeated requests by Soleimani to cancel the Sept. 25 independence referendum, to his indignation. The peshmerga commanders who had fought Saddam Hussein’s army alongside Soleimani and other IRGC commanders in the 1980s knew that the Quds Force commander would take his revenge. After consulting with the top Kurdish leadership, the peshmerga commanders told Eqbalpour that they would not give up Kirkuk.

The Iranian commander took out a map of the area and spread it out in front of his Kurdish counterparts. “This is our military plan. We will hit you tonight from three points — here, here and here,” the Quds Force officer stated, and then left the meeting with his entourage.

Not far from the main Patriotic Union of Kurdistan (PUK) building in Kirkuk, where the meeting took place, a group of American military advisers sat at the sprawling K1 air base. The soldiers would keep their silence as Soleimani and the Iraqis orchestrated the attacks on Kirkuk. One Kurdish official even suggested that there must have been an international agreement to launch such a coordinated strike. The Kurds were in for a big surprise.

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Assessing the Impact of Shifting Iran-KRG Relations

By Bijan Khajehpour, for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iran and the Kurdistan Regional Government (KRG) in Iraq have historically been on good terms. During the Saddam Hussein years, Iran was one of the main countries to host Kurdish leaders. In the post-Saddam era, Tehran and Erbil have enjoyed good neighborly relations.

This relationship manifested itself in Iranian forces coming to the rescue of the Kurdish regions in their fight against the Islamic State (IS) in the summer of 2014. However, the recent independence referendum in the KRG has angered Tehran, and it is clear that the Kurdish moves will impact on both bilateral ties and wider regional alignments.

One important aspect to consider when assessing the fallout between Iran and the KRG following the independence vote is the economic dimension of their relationship in the geostrategic context of Iranian concerns.

Iran and the KRG have a multilayered relationship; most importantly, it is not all driven by the government. On the one hand, there are various trade links between the two sides, starting from very active border markets up to cross-border trade and investment.

There are five border markets between Iran and Iraqi Kurdistan. Prior to the recent events, there were plans to expand such entities to create jobs and also shift the unofficial trade toward official channels. In fact, the KRG is an important market for Iranian exporters. The trade volume between the two sides amounted to $8 billion in 2014, which made Iran the KRG’s second-largest trading partner, after Turkey.

In recent years, Iranian exports to the Kurdistan Region have dropped due to the conflict against IS. Yet, according to Kurdish sources, the trade volume between Iran and the KRG stood at $4 billion in 2016. This means that approximately 40% of the Iran-Iraq trade goes through the KRG.

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Iran Bans Oil Products Shipment to Iraqi Kurdistan

Iran’s Ministry of Roads and Urban Development warned companies against shipment of oil products to and from the Iraqi Kurdistan “until further notice”.

The decision is in line with Tehran’s series of measures in response to a referendum held in the semi-autonomous region on possible secession from Iraq which has drawn international criticism.

“Given the recent developments in the region, it is suitable that international transportation companies and drivers active in this field avoid loading and carrying oil products to and from the Iraqi Kurdistan Region until further notice,” a directive by the ministry’s Road Maintenance and Transportation Organization said.

“It should be noted that the consequences of any action in this regard would befall the relevant company,” it added.

The transportation is mostly carried out by tanker trucks which take crude oil from the Iraqi Kurdistan to Iran and carry back refined products to the region.

The Iraqi Kurdistan Region went ahead with its plan to hold the referendum on Monday while Iraq’s neighbors and countries in the Middle East, including Iran and Turkey, had voiced opposition to such a move and supported the Baghdad central government.

On Monday night, thousands of Kurdish people in favor of KRG’s secession from Iraq took to the streets in Erbil, with some waving Israeli flags to celebrate.

No one in the region, except Israel’s Prime Minister Benjamin Netanyahu, endorsed the referendum, and all neighbors have warned that the secession plan would bring instability to the region and disintegrate Iraq.

Pressure has been building on officials in Erbil, Kurdistan’s regional capital, over the referendum, with regional carriers, including Turkish Airlines, Egypt Air and Lebanon’s Middle East Airlines submitting to Baghdad’s request to suspend their flights serving Iraqi Kurdistan.

(Source: Tasnim, under Creative Commons licence)

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Putin boxed in by Iran, Turkey on Iraqi Kurdish referendum

From Al Monitor. Any opinions here are those of the author, and do not necessarily reflect the views of Iraq Business News. 

Russian President Vladimir Putin had been banking on Iraqi Kurdistan Region President Massoud Barzani.

Over the past year, Russia has invested over $4 billion in the Kurdistan Region’s energy sector, overtaking the United States as the largest investor. By making such a commitment to northern Iraq, Putin was likely counting on both an eventual energy windfall and another card to play as a regional broker at the expense of the United States.

He could count on good, or at least working, relationships with Damascus, Tehran, Ankara, to some extent Baghdad and, with the massive oil and gas venture, Erbil.

What the Russian president had not banked on was that Barzani would go ahead with the independence referendum on Sept. 25 against widespread international and regional opposition. The Kremlin, of course, could not support ethnic separatism, and was probably hoping for a last-minute deal with Baghdad to stave off the vote.

As the prospects of a postponement collapsed, Barzani likely saw Russia’s investment as a hedge against the nearly unified international opposition to its referendum on independence.

Putin, of course, kept up appearances of being in control, but there was no denying the unusual nature of his visit to Ankara on Sept. 28 for consultations with Turkish President Recep Tayyip Erdogan, just three days after the referendum vote.

Erdogan’s position was predictable and blustery, including when he said, “No one has a right to throw our region into the fire,” as Yekaterina Chulkovskaya reports. But Putin sought to dial it down, and instead referred to the Russian Foreign Ministry’s statement, which included the phrase “Moscow respects the national aspirations of the Kurds” and the hope for a “constructive and respectful dialogue, with a view to devising a mutually acceptable formula of coexistence within a single Iraqi state,” as reported by Jasper Mortimer.

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Post-Referendum Threats And Demands

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iraqi Kurdish Politicians Talk About Post-Referendum Threats And Demands

While many uncertainties remain about Iraqi Kurdistan’s referendum on independence, there is one thing that seems clear to the people on the streets: On the day, the semi-autonomous region felt united in a way that it has not been for a long time.

Part of the reason Iraqi Kurdistan has remained an oasis of relative calm and security, while the rest of Iraq fell apart during the recent security crisis caused by the extremist group known as the Islamic State and earlier, is that the Kurdish people have always considered their ethnicity more important than the religious sect they belong to.

Ethnicity has trumped religion in their case and, despite infighting, has tended to unite locals in this area, with the long-term goal being to form their own nation.

In many other situations recently, the Kurdish have been divided – often between the two zones that basically make up the semi-autonomous northern region, which are run by the two major political parties, the Kurdistan Democratic Party, or KDP, and the Patriotic Union of Kurdistan, or PUK.

Up until the very last minute some of the region’s political parties remained opposed to the referendum. The KDP, the PUK and the Kurdistan Islamic Union had supported the referendum while the Change movement, also known as Goran, and the Islamic Group of Kurdistan wanted it postponed.

Just one day before the referendum though, when it became clear it was going ahead, the Islamic Group of Kurdistan relented and senior members said they would be voting “yes” in the poll.

Even the Change movement, a long-time opposition group in the region that formed on an anti-corruption platform, told members to follow their own consciences. Then the movement also told members they should vote, and that they should vote “yes”.