KRG


KRG pays Genel under Receivable Settlement Agreement

Genel Energy plc has announced that it has received an override payment of $7.05 million from the Kurdistan Regional Government (KRG).

The payment represents 4.5% of Tawke gross field revenues for the month of November 2017, as per the terms of the Receivable Settlement Agreement. 

Taken together with the monthly entitlement payments for Taq Taq and Tawke announced yesterday, Genel’s net share of payments relating to November 2017 exports totals $26.81 million.

(Source: Genel Energy)

Genel Energy gets more time for Gas Project

Genel Energy has announce that it has agreed with the Kurdistan Regional Government (KRG) a 12 month extension to the schedule for satisfying the conditions precedent (‘CPs’) contained within the Gas Lifting Agreements (‘GLA’s) for the Bina Bawi and Miran fields signed in February 2017.

The revised date by which the CPs are to be satisfied or waived is 9 February 2019.

The CPs contained within the February 2017 GLAs included, inter alia, the execution of final agreements on the midstream gas processing facilities and pipeline transportation, and the completion of updated competent person’s reports (‘CPRs’) for Bina Bawi and Miran.

The CPRs relating to the contingent gas resources at the Bina Bawi and Miran West fields have recently been completed, details of which were announced on 19 January 2018.

(Source: Genel Energy)

New EU Strategy on Iraq

By John Lee.

The European Union has adopted a new strategy on Iraq, following the joint communication by the High Representative and the Commission on elements for an EU strategy on Iraq adopted on 8 January 2018.

Among other items, the EU called on the Government of Iraq and the Kurdistan Regional Government to engage in a constructive and result-oriented dialogue on immediate issues, providing a foundation for a more detailed discussion on all open questions and towards a more stable and mutually beneficial long-term relationship based on the full application of the Iraqi constitution, including its provisions on Kurdish autonomy.

The full 23-point strategy document can be read here.

(Source: European Council)

GKP to Invest Further in Shaikan

Gulf Keystone Petroleum (GKP), operator of the Shaikan Field in the Kurdistan Region of Iraq, is today providing an operational and corporate update.

This is in advance of the Company’s full year results for the period ended 31 December 2017 which are expected to be announced on Wednesday 11 April 2018. The information contained herein has not been audited and may be subject to further review and amendment. 

Operational Update

  • GKP has continued its strong safety performance in 2017 and into 2018 with no lost-time incidents at the Shaikan field. Operations in the area remain secure.
  • Plant uptime of 99% in 2017 helped contribute to an average gross production of 35,298 barrels of oil per day (“bopd”), in the middle of our guidance range of 32,000-38,000 bopd for the year.
  • Since 15 November 2017, the Kurdistan Regional Government’s (“KRG”) Ministry of Natural Resources (“MNR”) has resumed exporting the Shaikan crude via the export pipeline to Turkey. The Company sees the latest export development as confirmation of the suitability of the Shaikan crude within the Kurdish blend.
  • The Company was encouraged by the signature of the crude oil sales agreement announced on 16 January 2018. The Company is also in dialogue with the MNR on the terms of a potential 2nd PSC Amendment.
  • Subject to resolution of the commercial matters and the KRG continuing regular payment of monthly invoices, the Company currently intends on investing this year in wells and facilities to expand production capacity to 55,000 bopd.
  • Part of these investments would include the hook-up of a short (400m) spur pipeline from Production Facility 2 to the Atrush export line, which links to the main export oil line to Turkey.  This will reduce trucking requirements, HSE risk and improve netbacks.
  • Final investment plans for 2018 are under review and will be provided to the market in due course.

Shaikan Crude Oil Sales Agreement Signed

Gulf Keystone Petroleum (GKP) has announced that a crude oil sales agreement has been signed between Gulf Keystone Petroleum International Ltd (“GKPI”), on behalf of the Shaikan contractors, and the Kurdistan Regional Government (KRG).

Under the agreement, the KRG will purchase Shaikan crude oil at the monthly average Dated Brent oil price minus a total of c.$22 per barrel for quality discount, as well as domestic and international transportation costs. This discount is based on the same variables contained within other oil sales agreements in the Kurdistan Region of Iraq. 

The majority of the Shaikan crude oil is currently being transported by truck from the Shaikan field to Fishkhabour, where it has been injected into the export pipeline to Turkey gradually since 15 November 2017, while the remainder is sold domestically. 

The agreement is effective from 1 October 2017 until 31 December 2018.  GKPI will now invoice the KRG for oil sales for the months from October 2017 onwards on the basis of the realised netback price and net entitlement volumes in accordance with the Shaikan Production Sharing Contract, as amended by the 1st PSC Amendment in 2010 (“Shaikan PSC”).

The Company continues its discussions with the KRG’s Ministry of Natural Resources (“MNR”) on the terms of a potential 2nd PSC Amendment.  The Company will inform the market of any material developments in this regard.

(Source: GKP)

KRG approves Reforms in Public Sector Employment

The KRG Council of Ministers recently discussed a number of issues, including the unfortunate events that took place recently in some towns in the Kurdistan Region. The Council stressed that people do have the right to peaceful and civil demonstrations, but expressed concern about the acts of violence perpetrated by some individuals during the demonstrations.

The Council of Ministers voiced their condolences to the families of the people who lost their lives and wished the injured a speedy recovery. It once again called upon the citizens of the Kurdistan Region to demand their rights in a peaceful and civil way and prevent any disorder that could threaten public properties which have been built to serve all the citizens.

Prime Minister Barzani shed light on his recent official visit to Germany and the outcomes of his meetings with the German Chancellor Angela Merkel, the Minister of Defence, the Foreign Minister as well as Foreign Relations and Defence Committees at the German Parliament.

He said that the need to resolve the problems between Erbil and Baghdad through dialogue on the basis of the Iraqi constitution, the political unity of the Kurdistan Region and the financial problems, were the main subjects discussed with German senior officials.

Prime Minister Barzani emphasized that both France and Germany desire a strong government in the Kurdistan Region, pointing out that both countries will continue helping the Kurdistan Peshmerga Forces.

He stressed they believe that the way the Iraqi Federal Government is treating the Kurdistan Region is unacceptable, and that they condition the continuation of their support to Iraq with the peaceful and constitutional resolution of its disputes with the Kurdistan Region.

The Council of Ministers also approved reforms in public sector employment, including reforms in public employees’ salaries, retirement, allowances and bounces.

(Source: KRG)

KRG approves Reforms in Public Sector Employment

The KRG Council of Ministers recently discussed a number of issues, including the unfortunate events that took place recently in some towns in the Kurdistan Region. The Council stressed that people do have the right to peaceful and civil demonstrations, but expressed concern about the acts of violence perpetrated by some individuals during the demonstrations.

The Council of Ministers voiced their condolences to the families of the people who lost their lives and wished the injured a speedy recovery. It once again called upon the citizens of the Kurdistan Region to demand their rights in a peaceful and civil way and prevent any disorder that could threaten public properties which have been built to serve all the citizens.

Prime Minister Barzani shed light on his recent official visit to Germany and the outcomes of his meetings with the German Chancellor Angela Merkel, the Minister of Defence, the Foreign Minister as well as Foreign Relations and Defence Committees at the German Parliament.

He said that the need to resolve the problems between Erbil and Baghdad through dialogue on the basis of the Iraqi constitution, the political unity of the Kurdistan Region and the financial problems, were the main subjects discussed with German senior officials.

Prime Minister Barzani emphasized that both France and Germany desire a strong government in the Kurdistan Region, pointing out that both countries will continue helping the Kurdistan Peshmerga Forces.

He stressed they believe that the way the Iraqi Federal Government is treating the Kurdistan Region is unacceptable, and that they condition the continuation of their support to Iraq with the peaceful and constitutional resolution of its disputes with the Kurdistan Region.

The Council of Ministers also approved reforms in public sector employment, including reforms in public employees’ salaries, retirement, allowances and bounces.

(Source: KRG)

Baghdad seeks Concessions before Negotiating with Kurds

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

Trying to jump-start discussions with Iraq’s central government, the Kurdistan Regional Government (KRG) in Erbil recently announced it will respect the Iraqi Federal Court’s ecision that the KRG independence referendum was unconstitutional. But Baghdad has amplified its demands for opening a dialogue, which makes negotiations unlikely to happen anytime soon.

The Kurdish independence referendum, which voters overwhelmingly approved in September, greatly escalated problems between Baghdad and the KRG. However, both sides have called for negotiations to resolve the issues based on the Iraqi Constitution.

Iraqi Prime Minister Haider al-Abadi has said Baghdad is continuing to work toward putting into effect some articles of the constitution that have never been implemented and would benefit the Kurds, while at the same time returning federal sovereignty to all areas of Iraq.

US Secretary of State Rex Tillerson touched on the subject this week during a speech at the Atlantic Council-Korea Foundation Forum in Washington DC, saying the United States will help officials implement the Iraqi Constitution completely.

“We have said we’ll stand with the Kurds to support them in the full implementation of the Iraqi Constitution … which, when it is fully implemented, will address a number of grievances that the Kurdish people have had for some time and we hope will lead to that unified Iraq,” Tillerson said at the Dec. 12 meeting.

An Iraqi parliamentary source told Al-Monitor, on condition of anonymity, Baghdad’s five recent conditions for opening negotiations.

Kurdistan quickly Descending into Chaos

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. 

The Kurdistan region of Iraq is fast descending into chaos, with protests continuing for the third day in some parts of Sulaimaniyah province and security forces using live ammunition to disperse them. Meanwhile, Iraqi Prime Minister Haider al-Abadi has threatened to intervene militarily.

Thousands of angry protesters including students, teachers and government employees across the province called for the resignation of the entire Kurdistan Regional Government (KRG) and the main two ruling parties for not being able to run the semi-autonomous region effectively.

“Some of the protesters fought the security forces,” a local journalist from the town of Raniya told Al-Monitor Dec. 19 on condition of anonymity for fear of reprisal. “Six people were killed, but the protesters are in charge of the city tonight.”

The KRG has been unable to pay the salaries of its civil servants for over two months following the ill-fated referendum for independence in September that brought on crippling punitive measures from Baghdad, Iran and Turkey.

In Sulaimaniyah city, for the second day, the police, the peshmerga and the security force known as Asayish internal police battled protesters with tear gas and water cannons in the main bazaar. Around a dozen people were wounded, and Al-Monitor observed a man being punched in the face by a member of the Asayish.

In a worrying development Dec. 19 that could have serious consequences for the region’s stability, the Patriotic Union of Kurdistan (PUK), which controls Sulaimaniyah province, appeared to call on vigilantes to maintain order and “support the democratic and patriotic path of their party” against “troublemakers.” The party shared a warning with the press. “It is not acceptable for some … media outlets to provoke protesters to cause trouble in the name of freedom of press. … These channels and their backers … are responsible for the blood of those who become victims.”