Latest news with #HayyanAbdulGhani
Rudaw Net
4 days ago
- Business
- Rudaw Net
Iraq signs oil deal with US firm
Also in Iraq Water crisis in Iraq, Kurdistan Region to halve supply per person by 2035: Rudaw Research Center Sadr expels 31 affiliates for defying elections boycott Baghdad says Erbil's demand for more domestic oil delays export restart Drone downed near Peshmerga position in Kirkuk A+ A- ERBIL, Kurdistan Region - Iraq's state-run North Oil Company on Tuesday signed an initial agreement with US-based HKN Energy for the development of the Hamrin oil field in Basra province, just hours after a drone strike targeted one of HKN's oil fields in the Kurdistan Region. The agreement, signed under supervision of Iraqi Oil Minister Hayyan Abdul Ghani, aims to raise Hamrin's output to 60,000 barrels per day (bpd), up from its current 20,000 to 25,000 bpd. It also includes plans to invest 45 to 50 million cubic meters of associated gas to fuel power stations, according to a statement from the oil ministry. Abdul Ghani reaffirmed the ministry's 'commitment to cooperating with reputable American and Western companies' to enhance production capacity and support Iraq's economy. He added that negotiations are underway with other firms to expand investment in oil, gas, and energy. The oil ministry cited HKN Vice President Matthew Zais as saying that the company is 'very proud to work and cooperate with the Ministry of Oil,' aiming to develop the field to its full capacity while utilizing Iraqi capabilities for 80 percent of operations and supporting local communities. The signing ceremony was attended by US charge d'affaires Steven Fagin, who welcomed the deal and expressed hopes for more American investment in Iraq. 'We are pleased to attend today's signing ceremony at the Iraqi Ministry of Oil,' Fagin was quoted by the ministry as saying. 'We would like to see much more business with Iraq.' According to the statement, Amer Khalil Ahmed, head of the North Oil Company said that agreement lays the foundation for a development contract that will cover well expansion, staff training, and securing gas for power generation. Iraqi Prime Minister Mohammed Shia' al-Sudani also received Zais and Fagin on Tuesday, expressing the government's vision of increasing both oil output and associated gas investments. The agreement comes hours after an early morning explosion was reported at the Sarsang oil field in Duhok province, operated by HKN Energy. The company did not report any casualties, with staff reporting a drone strike. HKN holds a 62 percent stake in the field. Baghdad's finance ministry in late May suspended budget transfers to the Kurdistan Regional Government (KRG) for the rest of the year, claiming Erbil had already received its full 2025 allocation and failed to hand over agreed oil and non-oil revenues. The Kurdistan Region's Finance Minister Awat Sheikh Janab dismissed the justification as 'laughable.' HKN and WesternZagros signed two major oil and gas deals in May worth $110 billion over their lifespan in the Kurdistan Region, prompting a lawsuit from the federal oil ministry. At the time, Zais criticized Baghdad's legal action and warned it could undermine efforts to resume Kurdish oil exports. The Iraqi oil ministry claimed the contracts violated federal court rulings and the Iraqi constitution, while the KRG defended them as extensions of existing contracts that benefit all of Iraq. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been halted since March 2023 when a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014. During his meeting with Zais and Fagin on Tuesday, Sudani reaffirmed his government's "ongoing efforts' to resume the exportation of oil to Turkey.
Iraqi News
5 days ago
- Business
- Iraqi News
Iraq's oil sector faces dual crisis: KRG export deal stalled amid warnings of US sanctions risk
Baghdad ( – Iraq's vital oil sector, the lifeblood of its economy, is facing a perilous dual crisis. Negotiations between the federal government and the Kurdistan Regional Government (KRG) to resume northern oil exports have stalled, while simultaneously, a parliamentary committee has raised alarms over what it calls a 'structural collapse' within the Ministry of Oil that could expose the country to devastating US sanctions. The Iraqi Parliament's Oil and Gas Committee hosted Federal Oil Minister Hayyan Abdul Ghani and other senior officials on Monday (July 14, 2025) to address several 'dangerous' files. Following the meeting, committee member Bahaa Al-Din Nuri confirmed that negotiations with the KRG to restart oil exports through the Ceyhan pipeline in Turkey have reached a dead end. According to Minister Abdul Ghani's testimony, key points of disagreement remain over local consumption figures and the mechanism for handing over oil revenues to the federal government. Nuri added that while the Ministry of Oil has completed all technical preparations to export the oil, the KRG has not complied with the agreement stipulated in the budget law and has refused entry to a designated international consulting firm. A KRG delegation is expected in Baghdad within 24 hours to attempt to break the stalemate. In a more alarming development from the same meeting, committee spokesperson Ali Shaddad warned of a potential 'structural collapse within the Ministry of Oil,' citing indicators of influence from external parties, including an individual identified only as 'Omed' who has allegedly gained control over sensitive areas of the ministry. Shaddad issued a grave warning that Iraq now faces the risk of direct US sanctions on the Ministry of Oil itself due to 'transgressions and mismanagement' that could be interpreted as a breach of international obligations. This comes after the U.S. Treasury recently sanctioned networks involved in smuggling fuel and illicit financing in the region, with international reports cautioning that official Iraqi institutions could be targeted if complicity is found. For Iraq, whose national budget is almost entirely dependent on oil exports, any sanctions targeting the Ministry of Oil or its marketing arm (SOMO) would represent a direct threat to the nation's economic stability, potentially leading to 'widespread economic paralysis,' according to Shaddad. As Iraq's leadership grapples with both a critical internal political dispute with the KRG and the looming threat of international sanctions due to alleged internal failures, the stability of the country's most crucial economic sector hangs in the balance. The outcome of the upcoming Baghdad-Erbil talks and the parliamentary committee's investigation will be critical in determining whether Iraq can navigate this perilous period.
Rudaw Net
5 days ago
- Business
- Rudaw Net
Baghdad pledges non-interference in oil firms as KRG export resumption nears: Sources
Also in ECONOMY Iraq gold surges, inflation dips as deficit grows: Central Bank Fate of trade on Iraqi ports as Iran-Israel war escalates Erbil, Baghdad trade accusations over financial disputes Iraq close to Saudi, Emirati solar deals: Electricity ministry A+ A- ERBIL, Kurdistan Region - The Iraqi government has agreed to refrain from modifying the contracts of international oil companies operating in the Kurdistan Region, senior sources told Rudaw on Tuesday, with the Region's long-stalled oil exports on the cusp of resumption. A joint committee is set to be formed between Erbil and Baghdad to restart oil exports with all parties awaiting the results of a crucial Coordination Framework, Iraq's ruling coalition, meeting expected to be held on Tuesday night. 'The meeting will be decisive in resolving disagreements about oil and salaries,' a senior source in Baghdad told Rudaw, on the condition of anonymity. Another source from the Association of the Petroleum Industry of Kurdistan (APIKUR) said that they have obtained guarantees regarding their demands for oil production and export. 'Guarantees have been given that the consulting company that estimates the costs of oil production and transportation will not make changes to the contracts during its work period,' the source told Rudaw. In a statement, APIKUR on Tuesday hailed the expedited efforts by the federal government and the Kurdistan Regional Government (KRG) to resume oil exports. International Oil Companies (OICs) 'reiterated that they are prepared to immediately resume exports through the ITP [Iraq-Turkey pipeline] once binding agreements are in place that ensure payment certainty for such exports which reflect each IOC's existing, legally valid contractual terms as well as resolution of the outstanding payment arrears to be agreed with each company,' the oil association said in a statement. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been halted since March 2023 when a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014. 'APIKUR member companies stand ready to resume exports as soon as written agreements are executed that honor our existing contracts which are governed by international law,' the statement cited the association's spokesperson Myles Caggins as saying, reiterating that existing contracts 'must be honored in every respect.' Under the 2025 budget law, the KRG is required to deliver 400,000 barrels per day to the State Oil Marketing Organization (SOMO). On Saturday, Iraqi Oil Minister Hayyan Abdul Ghani attributed the delay in restarting exports to new demands from Erbil for higher volumes of oil for domestic use, explaining that while the KRG initially agreed on 46,000 barrels per day for internal consumption, it is 'now requesting it to be 65,000, thus violating the budget law.' The halt in exports and disputes with Baghdad have put an enormous financial strain on the KRG, which has lost more than $25 billion in oil revenues. Erbil is not able to pay its civil servants and is dependent on funds from Baghdad. In May, Iraq's federal finance ministry halted all budget transfers to the KRG, including payments for public employee salaries, claiming the KRG had exceeded its share of federal budget funds and failed to deliver its oil to SOMO. Public sector workers have not been paid since. Hastyar Qadir contributed to this report.
Rudaw Net
6 days ago
- Business
- Rudaw Net
Baghdad says Erbil's demand for more domestic oil delays export restart
Also in Iraq Sadr expels 31 affiliates for defying elections boycott Drone downed near Peshmerga position in Kirkuk Iraq's top court to hear key cases on delayed Kurdistan salaries Over 700 daily overflights as Iraqi airspace fully recovers post-tensions A+ A- ERBIL, Kurdistan Region - Iraq's oil minister said on Saturday that Erbil is demanding more oil for domestic consumption and this is delaying the resumption of Kurdish oil exports. Erbil initially agreed to receive 46,000 barrels of oil per day for internal consumption, but 'the Region is now requesting it be 65,000, thus violating the budget law,' Oil Minister Hayyan Abdul Ghani told Iraqi state media. Kurdistan Region's oil exports have been suspended since 2023. Erbil and Baghdad have had multiple rounds of negotiations to hammer out an agreement that would see the exports resume via the pipeline through Turkey. 'Almost all clauses have been agreed upon except this one, and we hope that in the final stages the Region will accept the quantity that was agreed upon between the federal and regional financial audit bureaus in order to implement the agreement,' Ghani said. Under the Iraqi budget, the Kurdistan Regional Government (KRG) is required to hand over 400,000 barrels per day to the federal government's State Oil Marketing Organization (SOMO). Ghani said the federal government has informed both Turkish and Kurdish sides of its readiness to resume exports via the Iraq-Turkey pipeline, adding that 'Turkey is ready,' but Baghdad is still 'waiting for our brothers in the Region to deliver this quantity of oil.' He noted that Iraq is currently losing around 300,000 barrels per day, as the Region's production is counted within the country's OPEC quota 'despite the federal government not benefiting from it.' The halt in exports and disputes with Baghdad have put an enormous financial strain on the KRG, which has lost more than $25 billion in oil revenues. Erbil is not able to pay its civil servants and is dependent on funds from Baghdad. In May, Iraq's federal finance ministry halted all budget transfers to the KRG, including payments for public employee salaries, claiming the KRG had exceeded its share of federal budget funds and failed to deliver its oil to SOMO. Public sector workers have not been paid since. Dilshad Mawani, an oil and gas expert, told Rudaw on Saturday that an escrow account could be a viable option in this situation. An escrow is a financial arrangement in which a neutral third party holds funds or assets on behalf of two parties until predetermined conditions of a contract are fulfilled. 'Escrow accounts… can be an option so that operations or investment don't stop… when there is no political agreement or… no important political decision or a decision from a court to resolve one of the matters,' he said.
Zawya
23-05-2025
- Business
- Zawya
Iraq's Ministry of Oil advances low-carbon agenda
Iraq's Ministry of Oil is rolling out a series of initiatives aimed at supporting a just transition to a low-carbon economy, in line with the country's international commitments under the Paris Climate Agreement. Speaking at the First Conference on Carbon Economics held earlier this week, the Minister of Oil Hayyan Abdul Ghani outlined key initiatives that includes deployment of solar energy within oil operations and novel financing mechanisms to fund emission reduction projects. He outlined the 1,000 megawatt (MW) Basra Sun project, which is being implemented by TotalEnergies in partnership with QatarEnergy. The project will be delivered in four phases of 250 MW each across Artawi, Siba, Al-Fihaya, and Basra. The first plant is expected to come online by the end of this year. The ministry is also supporting renewable energy development through crude oil payment mechanisms—also known as Payment in Kind (PIK)—to help fund the Ministry of Electricity's solar power projects. It has also extended support to a 400 MW solar project in Basra and a 200 MW project in Siba. Efforts are underway to scale up carbon bond financing, following the Midland Oil Company's successful issuance tied to emission reduction at the East Baghdad oil field. As part of its decarbonisation strategy, the Ministry is investing in methane abatement and associated gas utilisation projects, with a target to eliminate routine gas flaring by 2029. (Writing by Majda Muhsen; Editing by Anoop Menon)
