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Gazprom “Not Reducing Investment” in Iraqi Kurdistan

By John Lee.

Russia’s Gazprom Neft has reportedly said it will not reduce investment in its projects in Iraqi Kurdistan, despite a request from the Kurdistan Regional Government (KRG) to do so.

Reuters reports that following a slump in oil prices, oil producers have been asked to reduce their investments, which governments often have to partially reimburse as part of their contractual arrangements.

Gazprom Neft holds a participating interest of 40 percent in the Garmian block and 80 percent in the Halabja and Shakal blocks. The Sarqala field is located within the Garmian block.

More here.

(Source: Ekurd, Reuters)

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KRG to Investigate Alleged $250m payment from Rosneft?

By John Lee.

The Prime Minister of the Kurdistan Regional Government (KRG), Masrour Barzani, has reportedly called for the public prosecutor to launch an investigation into allegations that Russian state oil company Rosneft paid $250 million to a consultant to secure deals in Iraqi Kurdistan.

Earlier this month, Bloomberg claimed that the oil company paid the money an unknown individual in 2017 and 2018 to become the dominant foreign player in the Kurdish oil industry.

More here.

(Source: Ekurd)

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Rosneft “Paid Mystery Consultant $250m in Iraq Deal”

By John Lee.

Russia’s state oil company Rosneft has reportedly paid $250 million to an external consultant to help secure deals in Iraqi Kurdistan.

Bloomberg reports that Rosneft Trading SA in 2017 “entered into an advisory agreement with an external consultant for advisory services relating to Rosneft Group’s proposed concession agreement and Production Sharing Contracts (“PSCs”) with the Kurdistan Regional Government of Iraq (“KRG”)”.

Click here to read the full story.

(Source: Bloomberg)

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KRG takes action to Prevent Spread of Coronavirus

KRG Prime Minister Masrour Barzani and Deputy Prime Minister Qubad Talabani (pictured) today chaired a cabinet meeting with governors from the Kurdistan Region to discuss recent developments, along with the steps the Kurdistan Regional Government (KRG) is taking to prevent an outbreak of the coronavirus.

Minister of Health Saman Hussein Muhammed updated the Prime Minister and his cabinet on the latest data regarding the spread of the coronavirus around the world and across the region, and presented immediate actions and measures the KRG is undertaking to prevent the virus from entering the Kurdistan Region.

The KRG Council of Ministers issued several decisions to protect the health of the Kurdistan Region’s citizens, as follows:

• The KRG will deliver up-to-date accurate information and instructions to the public on a daily basis, with the help of media organisations.

• The KRG will declare the period of 26 February to 10 March a public holiday for all public and private schools and kindergartens in the Kurdistan Region. Public and private universities will be closed from 29 February to 10 March. All schools and universities will remain closed during the spring break (10 March – 23 March) before reopening on 24 March. The Ministries of Education and Higher Education and Scientific Research will prepare a schedule that enables students to catch up with their studies.

• The KRG will screen domestic and international tourists entering the Kurdistan Region, in addition to limiting their movements. No one will be permitted to enter the Kurdistan Region without the required medical checks.

• The KRG will ensure people have access to everyday commodities, and that shops in the Kurdistan Region will continue stocking essential goods. The KRG will prevent the price manipulation of essential goods, and take action against anyone who attempts to benefit illegally from this situation.

• The Ministry of Finance and Economy will provide financial support to governorates and local administrations, working closely with the Ministries of Interior and Health.

The KRG is encouraging everyone to help with the implementation of these preventative steps, and to follow instructions and advice provided by healthcare professionals to protect themselves from the coronavirus.

Prime Minister Barzani also briefed ministers on the KRG delegation’s recent series of important meetings with world leaders in Germany, Italy and the Vatican. He provided an update on the latest efforts in Baghdad to form a new federal government, and stressed the Kurdistan Region, as an official and constitutional entity in Iraq, is the only body which can decide on its representatives in the federal government’s cabinet.

He added that all Kurdistani political parties in Baghdad were in agreement, and praised them for presenting a united front.

(Source: KRG)

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KRG “Agrees 2020 Budget Share with Baghdad”

By John Lee.

Erbil and Baghdad have reportedly reached an agreement on Erbil’s contribution to the 2020 federal budget.

According to Reuters, the state news agency INA says the deal includes a transfer of 250,000 barrels per day (bpd) from the oil-producing region to Iraq’s national budget.

Iraq’s 2020 federal budget is currently under discussion in parliament.

(Source: Reuters)

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KRG Delays Payments to Oil Firms

By John Lee.

The Kurdistan Regional Government (KRG) has delayed payments to oil producers by several weeks.

In statements to the markets on on Thursday, Genel Energy, Gulf Keystone Petroleum (GKP) and Shamaran Petroleum said that payments relating to invoices for oil production in August and September, which were due to be paid in November and December, will be received in January 2020.

(Sources: Genel Energy, Gulf Keystone Petroleum (GKP), Shamaran Petroleum)

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KRG Delays Payments to Oil Firms

By John Lee.

The Kurdistan Regional Government (KRG) has delayed payments to oil producers by several weeks.

In statements to the markets on on Thursday, Genel Energy, Gulf Keystone Petroleum (GKP) and Shamaran Petroleum said that payments relating to invoices for oil production in August and September, which were due to be paid in November and December, will be received in January 2020.

(Sources: Genel Energy, Gulf Keystone Petroleum (GKP), Shamaran Petroleum)

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DNO announces Oil and Gas Discovery

DNO ASA, the Norwegian oil and gas operator, today announced issuance of a notice of discovery to the Kurdistan Regional Government of Iraq on the Baeshiqa-2 exploration well, in accordance with the requirements of the Production Sharing Contract, after flowing hydrocarbons to surface from the upper part of Triassic Kurra Chine B reservoir.

Following acid stimulation, the zone flowed variable rates of light oil and sour gas. Further testing of this and other Jurassic and Triassic zones is ongoing and will determine the next steps towards appraisal and assessment of commerciality.

The Baeshiqa-2 well was spud in February 2019 and drilled to a total depth of 3,204 meters (2,549 meters TVDSS).

DNO acquired a 32 percent interest and operatorship of the Baeshiqa license in 2017. Partners include ExxonMobil with 32 percent, Turkish Energy Company (TEC) with 16 percent and the Kurdistan Regional Government (KRG) with 20 percent.

(Source: DNO)

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DNO announces Oil and Gas Discovery

DNO ASA, the Norwegian oil and gas operator, today announced issuance of a notice of discovery to the Kurdistan Regional Government of Iraq on the Baeshiqa-2 exploration well, in accordance with the requirements of the Production Sharing Contract, after flowing hydrocarbons to surface from the upper part of Triassic Kurra Chine B reservoir.

Following acid stimulation, the zone flowed variable rates of light oil and sour gas. Further testing of this and other Jurassic and Triassic zones is ongoing and will determine the next steps towards appraisal and assessment of commerciality.

The Baeshiqa-2 well was spud in February 2019 and drilled to a total depth of 3,204 meters (2,549 meters TVDSS).

DNO acquired a 32 percent interest and operatorship of the Baeshiqa license in 2017. Partners include ExxonMobil with 32 percent, Turkish Energy Company (TEC) with 16 percent and the Kurdistan Regional Government (KRG) with 20 percent.

(Source: DNO)

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Baghdad sends delegation to Erbil to Resolve Disputes

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

Iraqi President Barham Salih met separately Sept. 18 with four Kurdistan Regional Government (KRG) leaders — President Nechirvan Barzani, Prime Minister Masrour Barzani, parliament Speaker Rewaz Fayaq and Deputy Prime Minister Qubad Talabani in Erbil, the KRG capital.

The purpose of Salih’s visit was to warn the KRG about the region’s share in Iraq’s federal budget for 2020, scheduled to be passed by the national parliament by the end of the year.

A well-informed source close to the ruing elites in both Baghdad and Erbil told Al-Monitor on condition of anonymity that the Iraqi president — who is Kurdish — cautioned the Kurdish leadership that the federal government in Baghdad will cut the Kurdistan region’s share of budget, including salaries of the KRG employees, if Erbil fails to hand over a portion of its oil to the State Organization for Marketing of Oil. The organization is responsible for selling Iraq’s oil.

Click here to read the full story.