Latest news with #Kurdistan
Zawya
2 days ago
- Business
- Zawya
Iraqi Kurdistan oil output at around 120,000 bpd, Kurdish officials say
BAGHDAD - Oil production in Iraq's semi-autonomous Kurdistan region has reached around 120,000 barrels per day (bpd) and is expected to rise to an average of 280,000 bpd by mid-August, two Iraqi Kurdish energy officials said on Sunday. No timeline has yet been agreed with Iraq's oil ministry to resume crude exports from the north of the country, the officials said. A series of drone attacks has hit oilfields in Iraqi Kurdistan in July. Several oilfields halted operations due to significant infrastructure damage, the Kurdistan region's Ministry of Natural Resources said, adding that the attacks also aimed to threaten the safety of civilian workers in the energy sector. No casualties have been reported, but oil output in the region has been slashed. The region's total production was around 285,000 barrels per day (bpd), Iraqi Kurdistan energy officials said. (Reporting by Ahmed Rasheed in Baghdad Editing by Matthew Lewis)
The National
3 days ago
- Business
- The National
Why solving Iraq's gas problem is crucial for its economy and environment
It was a week of good, bad and ambiguous news for Iraq's natural gas industry. What stood out is the fact that solving its gas problem is the single most feasible and effective thing the government could do for its economy, environment and quality of life. But meddlesome forces stand in the way. On the good side, Iraq signed an agreement with US oil services giant SLB (formerly Schlumberger) to develop the Akkas field on the Syrian border, a large but geologically challenging resource. Iraqi prime minister Mohammed Shia Al Sudani inaugurated two new gas processing plants in the Basra province, including one at the Faihaa field, in which Dubai-based Dragon Oil is a partner. And US-based HKN agreed to expand oil and gas output from the Hamrin field in the Salahaddin province. In May, HKN had been awarded a contract to develop the Miran gasfield, while compatriot Western Zagros signed terms for Topkhana. These are two of the largest undeveloped gas accumulations in the Kurdistan region and, indeed, the whole of Iraq. And Sharjah-based Crescent Petroleum is moving ahead with work on Chemchemal, another large gasfield in Kurdistan, while it completes work to expand its long-standing Khor Mor field. Agreement signalled that a logjam between the two main Kurdish political parties had been broken – the Kurdistan Democratic Party, which controls the capital Erbil, the oil sector and most of the government, and the smaller Patriotic Union of Kurdistan, which holds the gasfields themselves and territory through which pipelines have to run. On the bad side, drones launched by unidentified assailants struck several oilfields in the semi-autonomous Kurdistan region. Fortunately, and probably by design, no one was killed or injured, and the damage to facilities seems to be limited. But most of the region's oil output has now been closed down as a precautionary measure. One of the two initial targets was the Sarsang field, operated by HKN. The company has been one of the most vocal in pressing its rights in Baghdad, and bringing US political pressure to bear. These bombings are the most widespread and clearly targeted assault on the Kurdish petroleum sector so far. Earlier attacks were sporadic, and mostly consisted of unguided rockets aimed at Khor Mor. One strike killed four workers at the field in April last year, the only deadly incident known of this campaign. Iran-aligned armed groups are well-understood to be the culprits, which used Iranian-model drones, though they denied responsibility. Their aims seem to be to attack American interests, deter alleged ties of the Kurdistan region with Israel, prevent competition to Iranian gas supplies to Iraq, and keep up pressure on Mr Al Sudani's government as it seeks a workable arrangement with Erbil and as federal elections in November loom. In the ambiguous category is Turkey's decision to exit the treaty governing the Iraq-Turkey oil pipeline when it expires next July. The pipeline has been shut anyway since March 2023 when an arbitral judgment went against Turkey. But the main sticking point since then has been the need for an accord between the Kurdistan region and the federal authorities in Baghdad over the rules for oil export, the responsibility for sales, the distribution of revenue, and the contractual position of the oil companies operating in Kurdistan. Ankara seems to favour replacement of the treaty with a more expansive agreement covering gas and electricity as well as oil. That could be good news for facilitating Kurdish gas exports finally, after a decade of discussion. But Turkey is playing a complicated game, including balancing tensions within Iraq, its interests in Syria, which include gas supply and electricity investments, and its gas trade with Russia, Iran and European neighbours. Iraq has struggled to provide adequate electricity to its people since the 1990-91 Gulf War and particularly following the botched US occupation after 2003. This creates discontent as people swelter through ever-hotter summers without adequate air-conditioning. It holds back the development of an economy beyond oil. In turn, a large part of the electricity problem stems from the failure to supply enough gas. Iraq is the world's third worst flarer of unused gas from oil production, behind only Russia and Iran. This causes local pollution and massive greenhouse gas releases. Yet it burns more than 300,000 barrels per day of extra oil for power generation in the summer, causing further pollution and wasting fuel that could be exported. Gas capture has increased in the past few years, but oil production has also grown, so the flaring problem has hardly diminished. Iraq's fast-rising population means the gas and electricity deficits do not narrow either. Supplies of Iranian gas and electricity, vital to help fill the gap, have become increasingly unreliable because of US sanctions and Iran's own worsening shortages. The US has devoted significant diplomatic effort to solving this mess, with mixed motives including the noble – promoting Iraqi stability, well-being and the environment – and the more self-interested, including its campaign against Iran, and boosting the prospects of American companies. The optimal development of gas in Kurdistan and the rest of Iraq is the key that would unlock several other doors. It could foster a more constructive relationship between Baghdad and Erbil. It would improve Iraq's economy and help it move on from over-reliance on oil exports, by providing reliable energy for industry. It is plausible that it would not even harm Iran. Tehran cannot meet its supply commitments to Iraq anyway, because of its own shortfall and because of US sanctions. Its exports to Turkey too are coming under increasing strain. If Iran overcame these problems, Iraq would be ready to continue buying its gas: domestic Iraqi, including Kurdish, supplies will not be enough for years to come, so great is the deficit and the pent-up demand. Turkey would gain from a greater pool of gas which it can combine with its own burgeoning supplies, to on-sell to Europe. Europe too would be aided in its attempts to eliminate its remaining fraction of Russian gas imports. Brussels' lack of realpolitik and its allergy to hydrocarbons unfortunately prevent it from playing the active role it should. Gulf, European, Turkish and American companies may be able to tread a path between Baghdad, Erbil and Ankara. But first, the shadowy figures behind the drone swarm need to be stopped.
France 24
22-07-2025
- Politics
- France 24
Kurdish farmers return to mountains in peace as PKK tensions calm
"We've been coming here for a long time. Thirty years ago we used to come and go, but then we couldn't come. Now we just started to come again and to bring our animals as we want," said 57-year-old Selahattin Irinc, speaking Kurdish, while gently pressing his hand on a sheep's neck to keep it from moving during shearing. On July 11 a symbolic weapons destruction ceremony in Iraqi Kurdistan marked a major step in the transition of the Kurdistan Workers' Party (PKK) from armed insurgency to democratic politics -- part of a broader effort to end one of the region's longest-running conflicts. The PKK, listed as a terror group by Turkey and much of the international community, was formed in 1978 by Ankara University students, with the ultimate goal of achieving the Kurds' liberation. It took up arms in 1984. The conflict has caused 50,000 deaths among civilians and 2,000 among soldiers, according to Turkey's President Recep Tayyip Erdogan. Alongside with several other men and women, Irinc practices animal husbandry in the grassy highlands at the foot of the Cilo Mountains and its Resko peak, which stands as the second-highest in the country with an altitude of 4,137 meters (13,572 feet). A place of scenic beauty, with waterfalls, glacial lakes and trekking routes, Cilo has gradually opened its roads over the past few years to shepherds and tourists alike as the armed conflict with PKK died down on the backdrop of peace negotiations. But the picturesque mountains had long been the scene of heavy fighting between the Turkish army and PKK fighters who took advantage of the rough terrain to hide and strike. It left the Kurdish farmers often at odds with the army. "In the past we always had problems with the Turkish soldiers. They accused us of helping PKK fighters by feeding them things like milk and meat from our herd," another Kurdish livestock owner, who asked not to be named, told AFP, rejecting such claims. "Now it's calmer," he added. 'Last generation' Although the peace process brought more openness and ease to the region, tensions did not vanish overnight. Checkpoints remain present around the city of Hakkari, and also to the main access point to the trekking path leading to Cilo glacier, a major tourist attraction. "Life is quite good and it's very beautiful here. Tourists come and stay in the mountains for one or two days with their tents, food, water and so on," said farmer Mahir Irinc. But the mountains are a hard, demanding environment for those making a living in their imposing shadow, and the 37-year-old thinks his generation might be the last to do animal husbandry far away from the city. "I don't think a new generation will come after us. We will be happy if it does, but the young people nowadays don't want to raise animals, they just do whatever job is easier," he lamented. An open truck carrying more than a dozen Kurdish women made its way to another farm in the heart of the mountains, where sheep waited to be fed and milked. The livestock graze at the foot of the mountains for three to four months, while the weather is warm, before being brought back to the village. "We all work here. Mothers, sisters, our whole family. Normally I'm preparing for university, but today I was forced to come because my mother is sick," explained 22-year-old Hicran Denis. "I told my mother: don't do this anymore, because it's so tiring. But when you live in a village, livestock is the only work. There's nothing else," she said. © 2025 AFP
Economy ME
22-07-2025
- Business
- Economy ME
Crude oil prices drop 0.75 percent to $68.60 amid rising trade tensions, demand concerns
Oil prices declined on Tuesday amid rising concerns that the escalating trade conflict between major crude consumers, the U.S. and the European Union, could hinder fuel demand growth by stifling economic activity, which has negatively impacted investor sentiment. Brent crude futures saw a decrease of 52 cents, or 0.75 percent, settling at $68.69 a barrel by 03:25 GMT (currently trading above $68.60). Meanwhile, U.S. West Texas Intermediate crude was priced at $66.69 a barrel, down 51 cents, or 0.76 percent (currently trading above $65.35). Both benchmarks experienced a slight decline on Monday. The August WTI contract is set to expire on Tuesday, with the more actively traded September contract dropping 54 cents, or 0.82 percent, to $65.41 a barrel. Supply concerns eased Supply concerns have largely diminished, thanks to major producers ramping up output and the ceasefire established on June 24, which ended the hostilities between Israel and Iran. However, apprehensions regarding the global economy are growing amid shifts in U.S. trade policy. In a significant development, the Iraqi government has officially resumed crude oil exports from the Kurdistan Region after a halt lasting over two years. This move is anticipated to ease tensions between Baghdad and Erbil while enhancing national export volumes. Kurdistan aims to contribute 230,000 barrels per day (bpd) of crude to Iraq's market once exports are fully operational. The prospect of increased crude exports from Iraq may augment global oil supplies and exert downward pressure on WTI prices in the short term. Furthermore, the impending U.S. tariff deadline could also affect WTI prices. U.S. tariffs on EU imports are expected to take effect on August 1, raising trade anxieties that extend beyond the oil sector. Commerce Secretary Howard Lutnick expressed optimism about reaching an agreement with the EU, yet the ongoing tariff risks continue to limit crude's potential for price increases. Read more: Oil prices climb to $69.36 as new EU sanctions hit Russian oil supplies Support from a weaker dollar The European Union's measures regarding Russian crude supply may lend some support to oil prices. Last week, the EU approved the 18th package of sanctions against Russia due to its conflict in Ukraine, which also targeted India's Nayara Energy, an exporter of oil products refined from Russian crude. This action followed U.S. President Donald Trump's threats to impose sanctions on buyers of Russian exports unless a peace deal is negotiated within 50 days. A weaker U.S. dollar has provided some support for crude prices, as buyers using alternative currencies are finding it relatively less expensive. The EU is also contemplating a wider array of counter-measures against the United States, as the chances of a favorable trade agreement with Washington continue to diminish, according to EU diplomats. The U.S. has threatened to implement a 30 percent tariff on EU imports come August 1 if no agreement is reached. Additionally, there are indications that the rising oil supply is beginning to saturate the market, as the Organization of the Petroleum Exporting Countries and their allies begin to unwind their output cuts. Data from the Joint Organizations Data Initiative (JODI) revealed that Saudi Arabia's crude oil exports in May surged to their highest level in three months.
Yahoo
21-07-2025
- Business
- Yahoo
Crude Oil Prices Slip on Concerns of a Mounting Global Oil Supply Glut
August WTI crude oil (CLQ25) on Monday closed down -0.14 (-0.21%), and August RBOB gasoline (RBQ25) closed down -0.0215 (-1.00%). Crude oil and gasoline prices on Monday settled lower, with gasoline dropping to a 2-week low. The outlook for larger crude exports from Iraq may boost global oil supplies and is weighing on prices. Expectations for increased Iraqi crude exports may also prompt Saudi Arabia to boost its crude exports to maintain its market share, further exacerbating a global oil supply glut. Losses in crude were limited Monday due to a weaker dollar and the rally in the S&P 500 to a new all-time high, which shows confidence in the economic outlook that is bullish for energy demand. More News from Barchart Crude Oil Prices Pressured by Concerns of Oversupply Nat-Gas Prices Sink on the Outlook for Cooler US Temps and Higher Gas Production Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Weighing on crude is the outlook for Iraq to boost crude exports from its northern Kurdish region through the Iraq-Turkey pipeline, where oil exports have been halted since March 2023. The Iraqi government approved a plan for the semi-autonomous Kurdish region to resume oil exports. Kurdistan expects to supply Iraq's crude market with 230,000 bpd of crude once exports resume. Iraq is OPEC's second-biggest oil producer. Crude prices have carryover support from last Friday when the European Union approved fresh sanctions on Russian crude exports and its energy trade over its war in Ukraine. The sanctions package includes cutting off 20 more Russian banks from the international payments system SWIFT, as well as restrictions imposed on Russian petroleum refined in other countries. A large oil refinery in India, part-owned by Russia's Rosneft PJSC, was also blacklisted. Additionally, 105 more ships in Russia's shadow fleet were sanctioned, bringing the total number above 400 ships. Concern about a global oil glut is negative for crude prices. On July 5, OPEC+ agreed to raise its crude production by 548,000 barrels per day (bpd) beginning August 1, exceeding expectations of a 411,000 bpd increase. Saudi Arabia also stated that additional similar-sized increases in crude output could follow, which is viewed as a strategy to reduce oil prices and penalize overproducing OPEC+ members, such as Kazakhstan and Iraq. OPEC+ is boosting output to reverse the 2-year-long production cut, gradually restoring a total of 2.2 million bpd of production by September 2026. On May 31, OPEC+ agreed to a 411,000 bpd increase in crude production for July, following the same 411,000 bpd hike for June. June crude production rose +360,000 bpd to a 1.5-year high of 28.10 million bpd. In a supportive factor for oil prices, Bloomberg reported on July 10 that OPEC+ is discussing a pause in further production increases from October, following its next monthly hike in September of 548,000 barrels. OPEC+ may be concerned about a slowdown in global oil demand in the second half of this year that could lead to a supply glut if the group keeps boosting production. The International Energy Agency said inventories have been accumulating at a rate of 1 million bpd and that the global crude oil market faces a surplus by Q4-2025 equivalent to 1.5% of global crude consumption. A decrease in crude oil held worldwide on tankers is bullish for oil prices. Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -14% w/w to 66.31 million bbl in the week ended July 18. Last Wednesday's weekly EIA report showed that US crude inventories in the week ended July 11 fell by -3.859 million bbls, the first draw in three weeks. Gasoline inventories rose +3.399 million bbls, and distillate inventories rose by +4.173 million bbls. The EIA report showed that (1) US crude oil inventories as of July 11 were -8.0% below the seasonal 5-year average, (2) gasoline inventories were -0.1% below the seasonal 5-year average, and (3) distillate inventories were -21.1% below the 5-year seasonal average. US crude oil production in the week ending July 11 fell -0.1% w/w to 13.375 million bpd, modestly below the record high of 13.631 million bpd posted in the week of 12/6/2024. Baker Hughes reported last Friday that the number of active US oil rigs in the week ending July 18 decreased by -2 rigs to a new 3.75-year low of 422 rigs. Over the past 2.5 years, the number of US oil rigs has fallen sharply from the 5.25-year high of 627 rigs reported in December 2022. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
