Latest news with #Shaddad
Iraqi News
2 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.
Shafaq News
13-03-2025
- Business
- Shafaq News
Urgent energy drive: Iraq expands production in Maysan
Shafaq News/ Iraq is working to expand oil and gas production in Maysan province, confirmed Ali Shaddad, a parliamentary oil and gas committee spokesman, on Thursday. Maysan's oilfields currently produce around 300,000 barrels of crude and 140 million cubic feet of associated gas daily. "Of this, 30-35 million cubic feet is used to power electricity stations within the Buzurgan, Fakka, and Abu Gharb fields," Shaddad explained. Efforts are underway to increase gas utilization for power generation. The drive to maximize domestic energy resources comes as the government works to address power shortages, especially in central and southern Iraq. "With electricity demand expected to rise as summer approaches, the situation has become more urgent after the US revoked Iraq's waiver to import Iranian gas," Shaddad remarked. Iraq, along with seven other OPEC+ members, is currently withholding 2.2 million bpd from the market. Starting in April, the group plans to gradually increase production, with Iraq's output rising by 12,000 bpd each month.
Zawya
10-03-2025
- Business
- Zawya
Iraq to finish Basra gasline within 4 months
Iraq has intensified work to complete a pipeline that will transport gas from an offshore terminal to gas facilities in the Southern oil hub of Basra, an Iraqi official has said. Authorities are pushing contractors to finish the project as soon as possible after the US decided last week to end exemption of Baghdad to import gas from nearby Iran, said Ali Shaddad, a member of Parliament's oil and gas committee. 'Work on this project started a month ago and we expect it to be completed after 120 days…this pipeline will transport gas from an offshore platform to Basra,' he said. Shaddad, quoted by the official Iraqi News Agency (INA) on Sunday, said the offshore terminal would receive gas from a Gulf country to offset the halt of Iranian supplies. He did not specify that country but Iraqi officials have indicated they are planning to buy Liquefied Natural Gas (LNG) from Qatar. Iraq is suffering from a severe gas supply shortage due to a sharp fall in Iranian supplies over the months few months. The shortage has aggravated Iraq's power crisis as the country relies heavily on Iranian gas to run its electricity facilities. (Reporting by Nadim Kawach; Editing by Anoop Menon)
Shafaq News
09-03-2025
- Business
- Shafaq News
Iraq accelerates Gulf gas imports as US ends Iran energy waivers
Shafaq News/ Iraq is shifting to Gulf gas imports to replace Iranian supplies after the expiration of US sanctions waivers, while also fast-tracking a major gas pipeline project in Basra, Parliament's Oil ane Gas Committee said Sunday. On March 8, 2025, the US waiver allowing Iraq to buy Iranian gas expired, blocking Baghdad from continuing its reliance on Tehran for power generation. Commitee spokesperson Ali Shaddad told Shafaq News that Iraq's electricity sector faces challenges because many power plants depend solely on gas. However, Basra's plants operate on gas, crude oil, and heavy fuel, ensuring greater grid stability. Shaddad revealed that Prime Minister Mohammed Shia Al-Sudani is personally overseeing the rapid completion of a gas pipeline from Basra's floating platform, a project launched 30 days ago by the Oil Ministry. "The pipeline is progressing at an accelerated pace and is expected to be completed within 120 days," he said, noting that 30% of the work is already done. Once operational, the pipeline will transport up to 200 million standard cubic feet per day (mmscf/d) of Gulf gas to Iraq's power grid. On Sunday, the US State Department formally ended Iraq's special exemptions that had allowed Baghdad to purchase Iranian electricity. For years, Iraq has relied on Iranian gas and electricity imports, especially during peak summer demand, benefiting from periodic US waivers issued multiple times a year. In October 2024, Iraq signed a deal with Turkmenistan to import 20 million cubic meters of gas per day via Iranian pipelines using a swap mechanism. However, implementation has stalled due to technical issues, according to Iraq's Ministry of Electricity.
Shafaq News
07-03-2025
- Business
- Shafaq News
Iraq warns Ukrainian firm over slow progress at Akkas field
Shafaq News/ The Iraqi government is to issue a final notice to terminate the contract of the Ukrainian company operating the Akkas gas field, Iraq's parliamentary oil and gas committee announced on Friday. The Committee Spokesperson, Ali Shaddad, told Shafaq News that the Ukrainian company had visited the site only twice and claimed it was blocked by unidentified armed groups during one of the visits—a claim denied by Midland Oil Company. The oil committee recently questioned the oil minister over the company's background after social media posts linked it to a beauty salon owner and raised doubts about its financial capacity. Shaddad further indicated that Iraq is increasingly facing a troubling trend of newly established companies securing major contracts through opaque processes, leading to delays in vital infrastructure projects. However, the minister confirmed that the company's official documents are valid and that it has the necessary financial resources and technical expertise for such projects, calling on those spreading the allegations to provide formal evidence. In 2024, Iraq's Oil Ministry signed a contract with a Ukrainian company to operate the field amid external pressure, Shaddad said, adding that the company provided a $50 million financial guarantee and is working jointly with North Oil Company and Basra Oil Company. Highlighting its strategic importance, Shaddad described the field as one of Iraq's most vital assets, thanks to its high-quality, pure gas and a production capacity of five million cubic meters. The field was originally awarded to a Turkish company after the fall of the former regime, but the contract was later canceled when the company withdrew following the ISIS incursion. Earlier, Oil Minister, Hayan Abdul Ghani, said the project aimed to supply additional natural gas to power stations across the country.
