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Iraq scrambles to avert energy crisis after Trump’s sanctions move
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Iraq scrambles to avert energy crisis after Trump’s sanctions move
2025-02-08 07:23
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Shafaq News/ Iraq is scrambling to avert a severe energy crisis after US President Donald Trump revoked its exemption from sanctions on Iranian gas and electricity imports, a move that threatens to cut off nearly 40% of the country’s power supply. Iraqi officials are racing to secure alternative energy sources and prevent widespread blackouts.
Iraq’s Energy Dilemma, Trump’s Order
Since the 1990s, Iraq has relied on electricity rationing due to low domestic power production, with households depending on private generators to make up the shortfall. To meet its energy needs, Iraq imports between one-third and 40% of its electricity and gas from Iran. However, ongoing US sanctions have made it increasingly difficult for Iraq to settle payments for these imports.
On January 31, 2025, Trump signed an executive order ending Iraq’s exemption from sanctions related to Iranian gas and electricity imports. The move, part of a broader sanctions package aimed at Iran, targets Iran’s economic activities, including its energy exports.
The executive order stipulates that the US will take immediate steps to prevent Iraq from using its financial system to facilitate Iranian sanctions evasion and to ensure that Gulf countries do not serve as transit points for Iranian energy exports. The memo also outlines measures to reduce Iran’s oil exports to zero, including shipments to China, and to revoke any exemptions that provide financial relief to Iran.
Iraq’s government now faces a complex challenge in navigating these sanctions, seeking solutions that balance its energy needs with its diplomatic and economic priorities. |
Genel were pretty forceful the other day when asked about the $16 quoted.They said that the $16 was a figure between Erbil and Baghdad and that they, Genel, would expect their entitlements on top of that.So it looks as though the IOCs will not accept anything worse than what their current agreed/legal PSC entitles them to.I am presuming they will have to agree separately with each individual IOC?
We await clarification from GKP.
GLA. |
Nice one B_G:- |
On February 2, 2025, the Iraqi Parliament ratified an amendment to Article 12 of the Budget Law. This amendment guarantees that international oil companies operating in KRI will receive compensation of USD16 per barrel, to be paid in advance. The oil shall be delivered to and sold through the State Oil Marketing Company (SOMO).Following the enactment of this law, a technical international consultant body, to be appointed by the federal and regional governments, will have a period of 60 days to assess and determine the estimated fair cost of production and transportation with each field in the KRI. The costs shall be settled after the new prices are determined by the consultant, which shall apply retroactively from the date of commencement of delivery pursuant to this amendment.The full amendment states as follows:The Council of Ministers and the Republic's President decided, based on Article 61/1 and 73/3 of the Constitution, to issue the following law:Law on the First Amendment to Federal Budget Law for the Republic of Iraq for financial years (2023, 2024, and 2025) No. (13 of 2023)Article 1) The provisions of Article 12-2-c of the Federal Budget Law for the Republic of Iraq for financial years (2023, 2024, and 2025) No. (13 of 2023) shall be cancelled and replaced with the following:1- The Federal Ministry of Finance shall compensate the Kurdistan Regional Government of Iraq from sovereign expenses for production and transportation costs for the quantities of oil produced in the region received by the State Oil Marketing Company (SOMO), or the Federal Ministry of Oil, in accordance with paragraphs (a) and (b) of this clause, provided that the fair estimated costs of production and transportation are calculated for each field separately by a specialized international technical consulting body, to be determined by the Federal Ministry of Oil in agreement with the Ministry of Natural Resources in the region, within (60) days of the entry into force of this law. In the event of failure to agree within the mentioned period, the Federal Council of Ministers shall determine the aforementioned consulting body.2- The consultant mentioned in the previous paragraph shall submit the estimated cost of production and transportation to the Federal Ministries of Oil and Finance and the Kurdistan Regional Government of Iraq, and it shall be approved for the purposes of this law. The calculation of the aforementioned compensation shall be based on the mentioned cost per barrel multiplied by the number of barrels received in accordance with paragraphs (a) and (b) of this clause, and the Federal Ministry of Finance shall pay the amounts to the Kurdistan Regional Government.3- The delivery of oil produced in the region shall immediately commence and be delivered to the State Oil Marketing Company (SOMO) or the Federal Ministry of Oil in accordance with paragraphs (a) and (b) of this clause, and the costs of production and transportation shall be compensated by the Federal Ministry of Finance as advances, at a rate of (16) dollars per barrel, to be settled later after the completion of the aforementioned specialized technical consultant, and retroactively from the date of commencement of delivery pursuant to this amendment.This amendment shall be effective as of the date of its publication in the official gazette.The amendment was passed in an effort to protect the national resources, to boost the actual federal revenues, and to enable the State Oil Marketing Company to make optimal use of and diversify export outlets.Notably, the amendment does not refer to the profits of oil sales, but rather only provides express compensation in respect of costs of production and transportation. It remains to be seen how this matter of profit and costs will be addressed by the technical consulting body in the future. |
Fun fact. Trumps pick Bessent worked for Soros and was instrumental in the sterling crash trade. |
George Soros and his son Max should have been jailed many years ago. They have done massive damage to the USA. Max Soros now holds the reins. |
535 keep em coming 1wav . Drain the swamp didn't happen 2016 maybe now it will this time. Lock up Soros for a start . |
Anyway just about to buy some more Gkp on this mini pullback GLA |
My prediction is that Musk and Trump will massively fall out within 3 months |
.
Can't walk away from a screen for a short while without coming back to yet more corruption in the US
Just a brief summary.
" BREAKING: Musk Says His DOGE Team Uncovered $100 BILLION in Medicare and Medicaid Waste After Gaining Access to the System
By Jim Hᴏft Feb. 7, 2025 8:00 am
“This is where the big money fraud is happening,” Musk tweeted on Wednesday in response to a post suggesting that aides using DOGE are searching the Medicare agency payment systems for fraud. "
Last one for the day, but there is a lot more to come.
D.O.G.E. only been going for about 2 weeks.
We should have a similar office in the saintly UK !!!
Eddie, really !.
I thought better of you.
. |
It appears the delay is due to assurances over the payment mechanism and receivables. GKPs receivables are fairly significant but other IOCs like Genel and Dana Gas have minimal receivables now so should not result in a long delay as far as they are concerned. |
IOCs are right for the plucking I would say. Buckle up! |
The BP mega deal seems to have forced Baghdad's hand. Would expect further meetings over the weekend.
If GoI continues to mess around and behave unreasonably it puts the $25Bn BP deal in jeopardy.
Has Musk cut off US Aid payments to Iraq...? |
LSE is full of new trolls today. They seem desperate again. |
Please seek help. |
eddie47
The President of the United States doesn't seem to think so.
"Here is his full comment on Truth Social.
President Trump: LOOKS LIKE BILLIONS OF DOLLARS HAVE BEEN STOLEN AT USAID, AND OTHER AGENCIES, MUCH OF IT GOING TO THE FAKE NEWS MEDIA AS A “PAYOFF” FOR CREATING GOOD STORIES ABOUT THE DEMOCRATS. THE LEFT WING “RAG,” KNOWN AS “POLITICO,R21; SEEMS TO HAVE RECEIVED $8,000,000. Did the New York Times receive money??? Who else did??? THIS COULD BE THE BIGGEST SCANDAL OF THEM ALL, PERHAPS THE BIGGEST IN HISTORY! THE DEMOCRATS CAN’T HIDE FROM THIS ONE. TOO BIG, TOO DIRTY! "
The American Government and people know all about this corruption.
Definitely much more to be come. Only just started. |
The SpareBank 1 Markets 2025 Energy Conference will be held on Tuesday 25 and Wednesday 26 February 2025.
08:30 - 09:30 Day 2 | 26/02/25
Kurdistan
Introductory remarks by Equity Research Analyst Teodor Sveen-Nilsen
DNO - Managing Director Chris Spencer
Gulf Keystone - CFO Gabriel Papineau-Legris
ShaMaran Petroleum - CEO Garrett Soden
hxxps://emaileditor.provisoevent.no/web-site/ac1c9777-b267-406e-9412-53ce61dd84bf/pages |
Looks like all the derampers (Bigdog5, Broadford Bay, Phillis etc) have gone on an offsite 5 day residential course to undertake remedial training on “Reputation Management in a Digital World” 😆
Combined with a workshop discussion to agree a collective format for their next line of GKP 🐂💩 |
Register to chat with like-minded investors on our interactive forums.
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