Gulf Keystone Petroleum Share Discussion Threads

[beernut1] 03/4/2024 10:38

KRG delegation arrives in Baghdad for salaries, budget talks
Among other topics of discussion at the meeting are the Peshmerga and Kurdistan Region security salaries. author_image Kurdistan 24
3 Hours

Senior KRG delegation in Baghdad, April 3, 2024. (Photo: KRG)
Senior KRG delegation in Baghdad, April 3, 2024. (Photo: KRG)
Kurdistan Budget civil servant salaries Awat Janab Noori
ERBIL (Kurdistan24) – A delegation of the Kurdistan Regional Government (KRG) led by Kurdistan Regional Government (KRG) Minister of Finance and Economy Awat Janab Noori has arrived in Baghdad to discuss salaries and budget issues, according to a statement issued by the Ministry of Finance and Economy.

Among other topics of discussion at the meeting are the Peshmerga and Kurdistan Region security salaries.

Muhammed Abdulqadir, Director General of Accounting at the Ministry of Finance, told Kurdistan24 that the March salary list would be sent to Baghdad in two ways. However, the second list of March salaries will be prepared and sent within 20 days.

The Iraqi Ministry of Finance has so far only sent salaries for December and February this year to the Kurdistan Region.

Previously, Narmin Ma'roof, a member of the Iraqi Parliament's Finance Committee, told Kurdistan24 that procedures for sending Kurdistan Region civil servant salaries for March will be will be like those of February.

In the absence of paying the Kurdish share of the federal budget, the Iraqi government has released several payments as loans to Erbil for it to be able to pay its civil servants.

Since its adoption in early June, KRG diplomats have alleged the budget has not been implemented properly by the government. Instead of paying the Kurdish share, they allege Baghdad has released allowances to Erbil to cover public salaries.

Hailed as one of the country’s biggest budgets, state expenditures were set at 198.91 trillion Iraqi dinars ($153 billion), with a deficit of more than 64 trillion dinars (over $48 billion).

[beernut1] 03/4/2024 10:34

US Ambassador Meets Iraqi Oil Minister ahead of Prime Minister’s Visit to Washington
A major item on the U.S. agenda for Sudani's visit will be to secure the resumption of Kurdish oil exports. author_image Laurie Mylroie
13 Minutes

U.S. ambassador to Iraq, Alina Romanowski (left), during his meeting with Iraqi Deputy Prime Minister and Oil Minister, Hayan Abdelghanii, April 3, 2024. (Photo: Alina Romanowski/ X)
U.S. ambassador to Iraq, Alina Romanowski (left), during his meeting with Iraqi Deputy Prime Minister and Oil Minister, Hayan Abdelghanii, April 3, 2024. (Photo: Alina Romanowski/ X)
World Alina L Romanowski Hayan Abdelghanii
WASHINGTON DC, United States (Kurdistan 24) – Iraqi Prime Minister Mohammed Shia’ al-Sudani is to visit Washington on April 15, when he will meet with U.S. President Joe Biden.

Read More: Iraqi Prime Minister to Make First Visit to Washington

It will be the first meeting between the two leaders. Indeed it will be Sudani’s first visit to the U.S. capital, although he did visit New York last September for the opening of the U.N. General Assembly, where he met Secretary of State Antony Blinken.

In that meeting, Blinken “conveyed an invitation from President Biden to the Prime Minister to visit the White House soon,” according to the U.S. read-out.

U.S. Says Baghdad Should Allow Renewed Kurdish Oil Exports

A major item on the U.S. agenda will be to secure the resumption of Kurdish oil exports, which had previously gone to the international market through the pipeline to Ceyhan, Turkey, on the Mediterranean coast.

They were halted a year ago, in March 2023, after Iraq won an international court ruling, saying that Ankara had not properly sought Baghdad’s permission to export Kurdish oil.

A year later, that pipeline remains closed. With the announcement of Sudani’s visit, the oil companies operating in the Kurdistan Region, which have formed The Association of the Petroleum Industry of Kurdistan (APIKUR), called on the U.S. Congress in late January to help “persuade the Federal Government of Iraq (GOI) to promptly resolve issues that have resulted in the halt of greater than 400,000 barrels a day of crude oil exports from the KRI [Kurdistan Region of Iraq] to global markets.”

Read More: Kurdistan-based oil companies call on U.S. Congress to help resume oil exports

And that, indeed, is an issue that Congress is pressing on the Biden administration.

Read More: Congressmen Call for Baghdad’s Mistreatment of ‘Kurdish Allies’ to End, as Sudani’s Visit to Washington Approaches

It is also an issue that the administration is pressing with Baghdad. On Tuesday, the U.S. ambassador to Iraq, Alina Romanowski, met with Iraqi Deputy Prime Minister and Oil Minister, Hayan Abdelghanii.

“In preparation for PM Sudani’s visit to the US @HAbdalghanii @iqministryofoil and I discussed Iraqi energy independence benefiting Iraqis,” she tweeted.

“Leveraging Iraq Kurdistan Region-based oil and gas can help Iraq on its path towards energy autonomy,” her tweet added.


Iraq imports electricity from Iran, and the U.S. regularly gives Iraq a sanctions waiver to do so. If Iraq succeeded in gaining energy independence, the entire process would be unnecessary. Thus, the U.S. would decidedly like to see that happen,

Last week, Iraqi Foreign Minister Fuad Hussein visited Washington in preparation for Sudani’s visit. The U.S. officials with whom he met urged an improvement in relations with Erbil, including the renewal of Kurdish oil exports.

Read More: U.S. Encourages Better Ties Between Baghdad and Erbil, including Resumption of KRG Oil Exports

As Blinken and Hussein met, State Department Spokesperson Matthew Miller affirmed, “The U.S. has been engaged at the most senior levels” on this issue, “and we have urged all parties to reach an agreement to resume the flow of oil through this pipeline.”

“We believe that restarting oil exports through the pipeline would be mutually beneficial to all parties,” Miller continued, “and because of that reason, that’s why we’ll continue to pursue it.”

Thus, the U.S. position is clear. What remains to be seen is how effective Wasington will be in securing Baghdad’s agreement.

[punter26] 03/4/2024 10:28

(Similar to this mornings Kurdistan Chronicle article)...

...“Leveraging Iraq Kurdistan Region-based oil and gas can help Iraq on its path towards energy autonomy,” (Romanowski's) tweet added"...


US Ambassador Meets Iraqi Oil Minister ahead of Prime Minister’s Visit to Washington.
(A major item on the U.S. agenda for Sudani's visit will be to secure the resumption of Kurdish oil exports).

(Kurdistan 24: 4 Mins ago)


"WASHINGTON DC, United States – Iraqi Prime Minister Mohammed Shia’ al-Sudani is to visit Washington on April 15, when he will meet with U.S. President Joe Biden.

(Read More: Iraqi Prime Minister to Make First Visit to Washington)

It will be the first meeting between the two leaders. Indeed it will be Sudani’s first visit to the U.S. capital, although he did visit New York last September for the opening of the U.N. General Assembly, where he met Secretary of State Antony Blinken.

In that meeting, Blinken “conveyed an invitation from President Biden to the Prime Minister to visit the White House soon,” according to the U.S. read-out.


U.S. Says Baghdad Should Allow Renewed Kurdish Oil Exports
-------------------------------------------------------
A major item on the U.S. agenda will be to secure the resumption of Kurdish oil exports, which had previously gone to the international market through the pipeline to Ceyhan, Turkey, on the Mediterranean coast.

They were halted a year ago, in March 2023, after Iraq won an international court ruling, saying that Ankara had not properly sought Baghdad’s permission to export Kurdish oil.

A year later, that pipeline remains closed. With the announcement of Sudani’s visit, the oil companies operating in the Kurdistan Region, which have formed The Association of the Petroleum Industry of Kurdistan (APIKUR), called on the U.S. Congress in late January to help “persuade the Federal Government of Iraq (GOI) to promptly resolve issues that have resulted in the halt of greater than 400,000 barrels a day of crude oil exports from the KRI [Kurdistan Region of Iraq] to global markets.”

(Read More: Kurdistan-based oil companies call on U.S. Congress to help resume oil exports)

And that, indeed, is an issue that Congress is pressing on the Biden administration.

(Read More: Congressmen Call for Baghdad’s Mistreatment of ‘Kurdish Allies’ to End, as Sudani’s Visit to Washington Approaches)

It is also an issue that the administration is pressing with Baghdad. On Tuesday, the U.S. ambassador to Iraq, Alina Romanowski, met with Iraqi Deputy Prime Minister and Oil Minister, Hayan Abdelghanii.

“In preparation for PM Sudani’s visit to the US @HAbdalghanii @iqministryofoil and I discussed Iraqi energy independence benefiting Iraqis,” she tweeted.

“Leveraging Iraq Kurdistan Region-based oil and gas can help Iraq on its path towards energy autonomy,” her tweet added.

Iraq imports electricity from Iran, and the U.S. regularly gives Iraq a sanctions waiver to do so. If Iraq succeeded in gaining energy independence, the entire process would be unnecessary. Thus, the U.S. would decidedly like to see that happen,

Last week, Iraqi Foreign Minister Fuad Hussein visited Washington in preparation for Sudani’s visit. The U.S. officials with whom he met urged an improvement in relations with Erbil, including the renewal of Kurdish oil exports.

(Read More: U.S. Encourages Better Ties Between Baghdad and Erbil, including Resumption of KRG Oil Exports)

As Blinken and Hussein met, State Department Spokesperson Matthew Miller affirmed, “The U.S. has been engaged at the most senior levels” on this issue, “and we have urged all parties to reach an agreement to resume the flow of oil through this pipeline.”

“We believe that restarting oil exports through the pipeline would be mutually beneficial to all parties,” Miller continued, “and because of that reason, that’s why we’ll continue to pursue it.”

Thus, the U.S. position is clear. What remains to be seen is how effective Wasington will be in securing Baghdad’s agreement."

[hugetakeaway] 03/4/2024 10:18

I really don't think shareholders here need to worry about pipelines anymore.It is increasingly highly likely the company has finally been sold.TBA.The BOD have been very consistent in awarding themselves huge fwd performance incentives.They haven't this year as they won't be listed much longer and the deal will have been done on watershed of last audited accounts, along with the number of employee, PDMR, BOD options which will all vest immediately on sale, being fixed as of that date.

[ptmorris1] 03/4/2024 10:00

What is the difference between the two pipelines apart from the 'new' one only being 85% ready?

[punter26] 03/4/2024 09:25

("Yaqub cautioned that 'IRAQ2' may be vulnerable to interference or manipulation by the United States, posing a significant threat to Iraq's financial stability". Its not clear whether this account closure was originally intended to exert pressure by the US upon Baghdad. Nevertheless, as Habshan mentioned yesterday, apparently it could be used in such a way now - Punter26)


US Closure of Iraqi Oil Account Sparks Stability Concerns
(Bas News April 2 2024)

"ERBIL — Iraq's economic stability has been cast into doubt following the closure of the account used by the country to collect revenue from oil sales by the United States, according to a letter disclosed to the Finance Committee of the Iraqi Parliament.

Dated March 18, 2024, the letter, signed by Ammar Khalaf, Deputy Governor of the Central Bank, outlined the closure of the Development Fund for Iraq (DFI) account, which has been operational since 2003. This account, overseen by the United Nations and the United States, has been crucial in facilitating Iraq's oil revenue collection and management.

Previously held at the US Federal Reserve Bank, the DFI account allowed Iraq to receive oil revenues in dollars and allocate them for essential expenditures under agreements with the United States. However, with the account's closure, Iraq's oil revenue is now directed to a new account, identified as IRAQ2.

The transition has sparked concerns among experts such as Kamaran Qadir Yaqub, a finance and banking specialist, who warns of potential risks to the protection of Iraq's revenue. Yaqub cautioned that IRAQ2 may be vulnerable to interference or manipulation by the United States, posing a significant threat to Iraq's financial stability.

Additionally, the letter highlighted a contractual agreement between Iraq and a US company for the transportation of dollars from the United States to Iraq. Iraq paid a security deposit of $441,000, with a transportation fee of $216,310 for each convoy of dollars, as detailed in the correspondence."

[punter26] 03/4/2024 09:13

Mohammed A. Salih reposted
Kurdistan Chronicle@KurdChronicle

"In a meeting with Iraqi Deputy PM for Energy Affairs and Minister of Oil Hayyan Abdul Ghani & US Ambassador to Iraq underlined that “leveraging oil and gas resources based in the Kurdistan Region of Iraq can assist Iraq in advancing towards energy autonomy.”
From kurdistanchronicle.com
10:33 PM · Apr 2, 2024
----------------------------------


U.S. Ambassador Underlines Leveraging Oil and Gas in Kurdistan Can Help Iraq

(Kurdistan Chronicle: Wladimir van Wilgenburg - April 03, 2024)


"In a meeting on April 2 with Iraqi Deputy Prime Minister for Energy Affairs and Minister of Oil Hayyan Abdul Ghani, U.S. Ambassador Alina L. Romanowski underlined that “leveraging oil and gas resources based in the Kurdistan Region of Iraq can assist Iraq in advancing towards energy autonomy.”

In a post on X, she added that the meeting was in preparation for Iraqi Prime Minister Mohammed Shia’ Al Sudani’s visit to the United States, which is set to take place on April 15.

(Read More: U.S. Encourages Efforts to Enhance Baghdad-Erbil Ties)

During a meeting between U.S. Secretary of State Antony J. Blinken and Iraqi Foreign Minister Fuad Hussein on March 26, Secretary Blinken encouraged efforts to enhance the Baghdad-Erbil relationship.

On March 25, 2023, independent oil exports from the Kurdistan Region through Turkey were stopped after a Paris-based international arbitration court in favor of Baghdad against Ankara.

(Read More: Congressmen Urge Biden to Press Baghdad on Kurdistan Oil Exports)

In a letter released on March 28, eight Republican members of Congress urged President Joe Biden to make the immediate resumption of the Kurdistan Region’s oil exports a precondition for any visit by Iraqi Prime Minister Sudani to the United States.

Moreover, in a statement released on March 23, the Association of the Petroleum Industry of Kurdistan, which represents several international oil companies in the Kurdistan Region, called on the Biden administration and U.S. members of Congress to push the Iraqi government to resume crude oil exports from the Kurdistan Region.

During an official visit to Washington, D.C., in February, Kurdistan Regional Government Prime Minister Masrour Barzani called on the Biden administration to accelerate the resumption of oil exports.

“The lack of exports has hurt everyone — costing billions in lost revenues. It makes no sense,” Prime Minister Barzani wrote on X on March 1.

[furenstaurus] 03/4/2024 09:12

The LTIP was approved by Gulf Keystone Petroleum Limited's shareholders at the Company's Annual General Meeting held on 17 July 2014; this is the sixth award to be made under the LTIP and is in accordance with the agreed annual issue cycle which follows release of the Company's full year results. The awards are made to eligible employees of the wider workforce, including to employees in Kurdistan.................................................Every year awarded within 1-6 days of FY.We now at day 13 after results, for this year.No award so far.................................................If new awards remain absent, and it looks like they wiil, implies a friendly sale agreed, with dilutive option share numbers finalised as at 2023 FY.One of several indicators a deal done , most important so far.Fill yer boots

[furenstaurus] 03/4/2024 07:35

Increasingly likely the company has an agreed sale TBA..https://x.com/goodnightcharl1/status/1775409089738113513?s=61&t=EEAJRmerpfLiAmForyb8Dw.

[furenstaurus] 03/4/2024 07:35

Mid May resumption of exportsWill take operators a few weeks to setup export ops so looks good for an announcement shortly,with mid May practical restart..https://x.com/john78846295/status/1775257623862124773?s=61&t=EEAJRmerpfLiAmForyb8Dw

[tygarreg] 03/4/2024 07:35

I wonder if the local sales end up in an export pipeline anyway but with IOC making the profit!

[furenstaurus] 03/4/2024 07:33

Increasingly likely the company has an agreed sale TBA..https://x.com/goodnightcharl1/status/1775409089738113513?s=61&t=EEAJRmerpfLiAmForyb8Dw.

[tygarreg] 03/4/2024 07:33

So that's kicked down the line another 6 weeks!

[furenstaurus] 03/4/2024 07:32

Mid May resumption of exports.https://x.com/john78846295/status/1775257623862124773?s=61&t=EEAJRmerpfLiAmForyb8Dw

[diamondandpearls] 03/4/2024 07:17

Mid May in 2026 more likely!! Resumption isn't going to happen this year that's a given ..local sales for a long time yet with prices being squeezed down to $20 you just know it.
The thieves keep thieving of the poor IOCs who no choose to except whatever they are given now.

[beernut1] 03/4/2024 07:03

From Lse on oil account shut down

US closes Iraqi oil revenue account2 Apr 2024 23:12
Clarification by the Central Bank of Iraq - so I assume its a planed moved rather than a threat as posted on Kurdistan 24?:

hxxps://shafaq.com/en/Economy/The-legal-basis-for-depositing-oil-revenues-in-the-US-Federal-Reserve-CBI-clarified

Shafaq News/ The Central Bank of Iraq (CBI) clarified on Monday the legal rationale behind depositing oil revenues in the US Federal Reserve.

Documents released by the bank and seen by Shafaq News agency state that "the legal basis for depositing oil revenues in the Federal Reserve Bank in New York under the IRAQ2 account instead of the Development Fund for Iraq (DFI) is linked to the expiration of Executive Order 13303 issued by the US President in March 2003. This order granted immunity to Iraqi funds deposited in the DFI account at that time. Furthermore, the protection of Iraqi funds provided by UN Security Council Resolution 1483 of 2003 ended with the issuance of UN Resolution 1956 at the close of 2010."

The documents elaborate, "Hence, the IRAQ2 account was established to receive proceeds from Iraqi crude oil exports, subsequently transferred to the Central Bank of Iraq's account at the Federal Reserve Bank within 24 hours to safeguard them from creditors' claims. These funds are categorized as belonging to the Iraqi government, derived from crude oil exports. This arrangement was formalized through a Memorandum of Understanding signed between the Iraqi Ministry of Finance and the Central Bank of Iraq on 2/6/2014, which serves as the legal framework for the IRAQ2 account as an alternative to the Development Fund for Iraq account."

The documents clarify, "Immunity granted by these documents is applicable solely to sovereign funds and does not extend to funds utilized for commercial purposes."

Addressing the third paragraph, the documents detail that "foreign reserves may be deposited with various external entities, central banks, and financial institutions, not limited to the Federal Reserve Bank. Interest rates vary based on investment category, duration, and the institution. Additionally, Orient, the contracted shipping company, transports dollar shipments from the Federal Reserve Bank to Baghdad International Airport, with insurance at $414,000 per shipment and transportation fees of $216,310 provided by the Legislative Affairs Department, Parliamentary Oversight Division."

Furthermore, they state, "Domestic transfer of oil sales revenues is impractical due to operational constraints, risking Iraq's financial operations if funds remain within the country. Closing the Federal Reserve Bank account could expose Iraq to international claims and hinder settlements in US dollars without an account at the Federal Reserve Bank or another American commercial bank."

[eddie47] 02/4/2024 22:58

APIKUR POST. 23m Kurdistan Chronicle.In a meeting with Iraqi Deputy PM for Energy Affairs and Minister of Oil Hayyan Abdul Ghani, @USAmbIraq underlined that "leveraging oil and gas resources based in the Kurdistan Region of Iraq can assist Iraq in advancing towards energy autonomy."

[furenstaurus] 02/4/2024 21:33

Mid May resumption of exports.https://x.com/john78846295/status/1775257623862124773?s=61&t=EEAJRmerpfLiAmForyb8Dw

[justiceforthemany] 02/4/2024 21:05

Stop all aid payments to Baghdad.
Stop (US) purchasing Iraqi oil.
Playing hardball means a deal is closer than it was.
Just days before Sudani's visit now.

[habshan] 02/4/2024 20:12

"A senior official in the Iraqi Oil Ministry told NRT that they have completed 85 percent of the technical work and expect to resume oil exports in mid-May through the Kirkuk-Jahan oil pipeline and part of the oil pipeline Kirkuk – Mosul – Turkey is exported."

So if that's correct it looks like the plan is for the oil from the Kurdish fields, and the oil from Kirkuk which will go through the old pipe that's recently been refurbished, to both feed into the main line at Fishkabour and then on to Ceyhan.

Fingers crossed.

02/04/24 - Oil Ministry: Negotiations to resume oil exports continue.

A spokesman for the Iraqi Oil Ministry told NRT that most of the rehabilitation of the Kirkuk-Jahan oil pipeline has been completed and the rest depends on technical measures inside Iraq. "We are in talks with the Ministry of Natural Resources of the current government on the oil issue," he said.

The Iraqi Oil Ministry spokesman Assem Jihad told NRT Tuesday that the technical work of the Kirkuk-Jahan oil pipeline has been completed.

He added that the two Iraqi Oil Ministries and the Kurdistan Regional Government (KRG) are in talks on their agreements on oil exports and the understandings are expected to have positive results in the near future. "The priority of the Iraqi government is to resolve the oil issue through legal and constitutional means and for this purpose they have met with Turkey to determine the transportation fee for a barrel of oil," he said".

A senior official in the Iraqi Oil Ministry told NRT that they have completed 85 percent of the technical work and expect to resume oil exports in mid-May through the Kirkuk-Jahan oil pipeline and part of the oil pipeline Kirkuk – Mosul – Turkey is exported.

According to the Ministry of Natural Resources, the Kurdistan Regional Government (KRG) has lost $12 billion in oil exports to the region.

[hugetakeaway] 02/4/2024 17:56

https://twitter.com/ChicagoJack5/status/1775133653573443809?t=3Hl_BkVKG0R-2FX_pqUmzw&s=19

[hugetakeaway] 02/4/2024 17:55

"Iraqi economy faces threat as US closes oil revenue account."It's interesting that since 2003 Iraq maintained an account with the US Federal Reserve called the DFI account, and that account under the supervision and protection of the United Nations and the United States served as the mechanism for Iraq to collect and manage its oil revenues.The US has closed that account.Iraq's oil revenues are now being directed to a new account called the IRAQ2 account.This move raises concerns among experts, including finance and banking specialist Kamaran Qadir Yaqub, who warns that the protection previously afforded to Iraq's revenue may no longer be guaranteed and that this new account and Iraq's oil revenues could be vulnerable to interference and manipulation by the US.It seems that the US has now given itself leverage over Iraq's oil revenues and therefore it's economy which it didn't have before.So after 21 years, why now.

[broadford bay] 02/4/2024 17:42

I would say that the closure of the DFI Account (Development Fund for Iraq) and replacing it with Iraq2 account raises concerns mostly among those in Iraq who were able to cream off such USD funds.

Shafaq gives a much more reasoned reporting of the change than does the biased Kurdistan24.

[habshan] 02/4/2024 16:39

"Iraqi economy faces threat as US closes oil revenue account."

It's interesting that since 2003 Iraq maintained an account with the US Federal Reserve called the DFI account, and that account under the supervision and protection of the United Nations and the United States served as the mechanism for Iraq to collect and manage its oil revenues.

The US has closed that account.

Iraq's oil revenues are now being directed to a new account called the IRAQ2 account.

This move raises concerns among experts, including finance and banking specialist Kamaran Qadir Yaqub, who warns that the protection previously afforded to Iraq's revenue may no longer be guaranteed and that this new account and Iraq's oil revenues could be vulnerable to interference and manipulation by the US.

It seems that the US has now given itself leverage over Iraq's oil revenues and therefore it's economy which it didn't have before.

So after 21 years, why now.