By Ahmed Mousa Jiyad.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The Ministry of Oil should withdraw its plan to offer 12 new oilfields.

In a rather surprise move, the Ministry of Oil (MoO) announced its “intention” to offer 12 medium and small oilfields to IOCs for development and production.

The most alarming and absurd components of the announcement are the contractual modality and the process of awarding and contracting.

Considering the danger and implications of the announcement I call upon the Ministry of Oil to withdraw this announcement immediately and focus instead on properly manage and monitor what has been contracted already. Otherwise, the Iraqi upstream petroleum could suffer from devastating consequences at a time when the country is liberating its provinces, especially Mousil from Da’esh.

The offered fields are Sindebad, Um-Qaser, Rachi and Abu-Khema (in Basra Governorate); Kumait, Noor, Umara, Dema and Dujaila (in Missan Province); and Merjan, Kifl and West Kifl-all known as Mid-Euphrates (in Middle Iraq).  MoO announcement provides further information which will be addressed in this commentary.

At the outset, this is not a new move at all. After completing the fourth bid rounds, the MoO has at least formally announced three times its intention for new offering. The first was during the former Minister Abdul Kareem Luaibi, who in March 2013 announced a fifth bid round comprising “10 oilfields”, then in October he postponed that round to “next year”.

The second was related to the well-known Nassiriya Integrated Project-NIP, which combines the development of Nassiriya oilfields with a 300kbd modern refinery. Though NIP attracted good number of reputable IOCs, the project was put on shelves and related bid round was postponed indefinitely in June 2014. Recently, MoO offered Nassiriya Refinery for private investors, thus NIP is dead!

The third is related to linking Ratawi and Bin-Umar oilfields (in Basra) to funding the water-injection Common Seawater Supply Project (CSSP) reportedly negotiated with ExxonMobil and PetroChina (CNPC). Since January this year no further information is publically available on earmarking the two oilfields to CSSP.

The current Minister of Oil made many pledges when he took office among them two of particular relevance to this topic: first, he emphasized the “national efforts” in upstream petroleum development and second, decision will be based on “solid and thorough studies and assessment”. The recent announcement by the Ministry is diametrically opposing to what the Minster has recently pledged.

By offering these 12 oilfields to IOCs “whether as independent (individual) company or as consortium of companies” in addition to what was contracted under the previous four bid rounds nothing meaningful is left for the “national efforts” role in this sub-sector. Moreover, where are these “solid and thorough studies and assessment” which the recent announcement was premised upon?   None!

Please click here to download Ahmed Mousa Jiyad’s full report.

Mr Jiyad is an independent development consultant, scholar and Associate with Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email:, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad’s biography here.

By John Lee.

Shares in Genel Energy were trading near their all-time low on Thursday, as markets reacted to the company’s warning on Wednesday that “2016 revenue is expected to be at the lower end of the previously communicated $200-230 million guidance range“.

It also said that production levels for the year would come in at the bottom of its target range of 53,000 bpd to 60,000 bpd.

Daniel Slater, research director at Arden Partners, told Reuters:

“We are disappointed to see the continued decline at Taq Taq [pictured] and the delays in revenue from the KRG have not helped here.”

(Sources: Yahoo!, Reuters, Genel Energy)

KDP respond strongly to al-Maliki: established an army of Bart did not stand up to two hours Daesh
October 27, 2016

response of the political bureau of the Democratic Party of Kurdistan on Wednesday evening severe tone of the statements made by the head of a coalition of state law , Nuri al – Maliki, which attacked the President of the Kurdistan region , Massoud Barzani.

A spokesman for the party’s political bureau said in a statement posted on the Alalkrona the site of the party briefed "Nur News," a copy of it today that "al-Maliki spoke during an interview with the agency," Euronews "news about things that are not Bmahlha the right of the Kurdistan Region and its president, Massoud Barzani, and the Democratic Party of Kurdistan.

He added that "among all the citizens in Iraq, international organizations and the role of al-Maliki clearly and openly in the lighting of sectarianism, and the disclosure of financial and administrative corruption in the state and its departments institutions, and the destruction of the fabric of political, social, economic, and security of life in the country."

He continued the spokesman said, "In a period of the rule of al-Maliki has founded the cartoon army, which did not stand up to organize Daesh two hours of time, and handed over half of Iraq as well as weapons and accessories are not a military teams to Daesh," adding that "al-Maliki foundations of army loyalty is not to the nation but to anti Peshmerga forces ".

He went on saying that "al-Maliki not bear to see the cooperation between the Iraqi army and the Peshmerga forces to cooperate in a rare scene of fighting terrorism and edit zones presented by al-Maliki Army (as he put it) and Jnralth cowards as a gift to the organization Daesh."

He said the party spokesman that "what hurts Maliki parking Peshmerga and the army on one front, and their investigation after the other victories in the war on terror."

He pointed out that al-Maliki spoke in the interview about the borders of the Kurdistan Democratic Party of Kurdistan and the Peshmerga, here we assure him that these limits are not Saddam and al-Maliki drawn, and these limits have been made by the Peshmerga blood to liberation from the hands of Daesh.

He went on saying that "al-Maliki still dreaming rule Iraq again, and this is impossible to happen."

The spokesman concluded by saying that "al-Maliki if he had a little bit of modesty and a face when he went out on the screen and spoke of Mosul and freed." 8%B7%D9%8A-%D8%A7%D9%84%D9%83%D8%B1%D8%AF%D8%B3%D8%AA%D8%A7%D 9%86%D9%8A-%D9%8A%D8%B1%D8%AF-%D8%A8%D9%82%D9%88%D8%A9-%D8%B9%D9%84%D9%89-%D8%A7%D9%84/

Hakim meets with Barzani, the leader of the fight against terrorism device south of Mosul

  • October 27, 2016 12:48

BAGHDAD / Baghdadi News / ..

The Head of the National Alliance, Ammar al-Hakim, on Thursday, meeting with President of Iraqi Kurdistan, Massoud Barzani, leader of the counter-terrorism apparatus Lt. Gen. Abdul-Ghani al-Asadi to discuss military operations south of Mosul.

Alehikm said in a statement issued after the meeting and seen by / Baghdadi News /, "It is heartening to see the army and the peshmerga, are fighting together Daesh terrorist gangs and we are proud of this cohesion."

For his part, Barzani said, "There is a joint collaboration between the army and the Peshmerga, and we are in control of most of the areas and dangerous after day," while team-Asadi noted that "Daesh gangs holding families in Mosul, in order to use them as human shields to protect itself,.…B-AkLNZHk.html

Barzani: Peshmerga forces would not enter Mosul

October 27 2016 – 13:53

The head of the Kurdish region in Iraq, Massoud Barzani, on Thursday, that the Peshmerga forces will not enter the city of Mosul. He pledged continued cooperation between the Peshmerga and Iraqi forces in the Battle of the restoration of the city of Mosul in the north from the grip of the organization of the Islamic state.

Barzani said in a meeting with John Doe Hakim, head of the National Alliance (the largest Shiite bloc in parliament), at the center of Alkwyr northeast of Mosul, said the "ongoing joint cooperation between the Iraqi army and the Peshmerga forces in the battle to liberate the city of Mosul.

" He pointed to "the existence of solidarity among the political forces, keen on the interest of the country", without naming it.

Barzani said, "We are in control of most of the areas not dangerous to Daesh after day," stressing that "the Peshmerga forces will not enter the center of the city of Mosul during the current editing operations, and counter terrorism forces are will enter Mosul."

And launched, in October 17 / October of this, the battle of the restoration of the city of Mosul of the "State", with the participation of about 45 thousand of the Iraqi government forces, whether from the army or the police, as well as "popular crowd" (Shiite), and "Guard Nineveh "(Sunni) as well as the Peshmerga forces air and the assignment of the international coalition.

And given the military campaign aerial cover of the international coalition led by the United States of America. 8%A9-%D9%84%D9%86-%D8%AA%D8%AF%D8%AE%D9%84-%D8%A7%D9%84%D9%85%D9%88%D8%B5%D9%84-897968

Maliki: Massoud Barzani, a traitor and a strong relationship with Israel

Last updated: October 27, 2016-12:19 pm

Baghdad/Iraq News Network-
President attacked the State of law Coalition Nuri al-Maliki, Prime Minister, scathing terms that "Israeli influence in Kurdistan is very large, Barzani became a focal point for policy of America and Israel," as he put it, and said in a television interview late Wednesday:

"the territory, by which I mean areas controlled by the Democratic Party and not every region, has become a fulcrum and a strategic station for American and Israeli policy on extended relations background out between Barzani’s family and Israel.

" he added that "the relationship between Barzani and Israel reached That light is held for Shimon Peres in the territory, and that Jewish exhibition in Erbil, the Israeli channel 2 to battle regaining Mosul and accompanied by two forces.

And Maliki, Kurdistan has taken advantage of the Iraqi Government and army was busy fighting with ISIS and began yatmid Twal, control Kirkuk and part of Mosul and areas where 27 billion barrels of oil, "stressing the need to return to Kurdistan borders adopted by the Governing Council in 2003.

" the head of State of law Coalition, that the Government of Kurdistan may not start the demand of Turkey to intervene militarily in the battle of Mosul, indicating that the Turkish army reached the camp mistress in Mosul with the desire and welcome from By Kurdistan who feels he is a neighbor and friend of Iraq and not a part of it,

"saying" the Kurdistan Regional Government does not have any legal document based on it in its decisions, the territorial policy contrary to the Constitution and the law and unity. "

Experiencing political arena lately, recriminations between Maliki and Kurdish coalitions, the practice of "dictatorship" and squandering the riches of the country arrived to accuse Barzani in collaboration with former President Saddam Hussein. Maliki also accused of possession of the sovereign and security positions in the State.

Kurdistan President Massoud Barzani visited Baghdad earlier and met most of the leaders of the political forces, but the visit did not include meeting the State of law coalition leader Nouri al-Maliki, while State of law coalition led by Nouri al-Maliki, the leader of the "honour" to meet with the President of the Kurdistan region Massoud Barzani. 8%B3%D8%B9%D9%88%D8%AF-%D8%A7%D9%84%D8%A8%D8%B1%D8%B2%D8%A7%D9%86%D9%8A-%D8%AE%D8%A7%D8%A6%D9%86-%D9%88%D8%B9%D9%84%D8%A7%D9%82%D8%AA%D9%87-%D9%82/

The Iraqi Minister for Oil has committed to support the efforts of the Organization of the Petroleum Exporting Countries (OPEC) aimed at stabilization of the oil market.

At a meeting in Baghdad on Wednesday, Minister Jabbar Ali Hussein Al-Luiebi told OPEC Secretary General, HE Mohammad Sanusi Barkindo:

“Your visit comes at a time when Iraq is working hard to develop its oil industry, while at the same time fighting terrorism and achieving victories against ISIS in Mosul and other places in Iraq.”

HE Al-Luiebi also reiterated Iraq’s support to OPEC in the current oil market environment. He pledged that Iraq would continue to back the OPEC Secretariat and work together with Member Countries, as well as non-OPEC countries, to help stabilize and bring balance to the oil market.

Thanking HE Al-Luiebi for his welcome, HE Mohammad Barkindo expressed his happiness to visit Iraq, the birth place of the OPEC and the cradle of ancient civilizations. He stated that Iraq has played, and continues to play an important role alongside other Member Countries in helping achieve the stability that all producers, as well as consumers, desire.

In speaking about the current oil market, HE Mohammad Barkindo said that between June 2014 and January 2016 the OPEC Reference Basket price fell by 80%. It is, he added, the largest percentage fall in the six cycles of sharp price declines that have been observed over the past three decades.

HE Mohammad Barkindo also stressed that it was important to recognize that the current oil cycle has led to a dramatic drop off in oil market investments. He said that global exploration and production spending fell by around 26% in 2015 and a further 22% drop is anticipated this year, which overall equates to over $300 billion.

Later in the day, HE Barkindo met with the leader of the National Alliance, the largest Iraqi parliamentary bloc, and head of the Islamic Supreme Council of Iraq (ISCI) Ammar Al-Hakim.

The Secretary General will hold further talks with Prime Minister of Iraq, Dr. Haider Al-Abadi, on Wednesday and pay a courtesy call on the President of Iraq, Dr. Fuad Masum.

Secretary General Barkindo is expected to visit Kuwait and the United Arab Emirates early November in continuation of the extensive consultations post Algiers Accord.

(Source: OPEC)

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

The head of the Security and Defense Committee in the Iraqi parliament, Hakem al-Zamili, has spoken out about the corruption prevailing over Iraq’s border crossings. In a press conference held Oct. 3, he stated that the state was not benefiting from financial revenue that is directly going into the pockets of corrupt officials.

Corruption is robbing the state of potential revenue from the tariff law implemented this year to reduce the deficit in the current budget, which amounted to 24 trillion dinars ($18 billion). The General Customs Authority has announced that it had expected to collect $5 billion this year, but only $306.5 million had been received as of August.

Alaa Matar, a food merchant from Baghdad, told Al-Monitor, “The officials at the border crossings and customs are delaying processing their goods for up to a month to force [merchants] to deal with middlemen to reduce the delay to a week.”

He said, “Border crossing and customs employees work as middlemen between the managers and merchants and get paid 1 million dinars [$766] for each transaction. When it comes to imported goods with high taxes, these middlemen coordinate with the officials to change their category to goods with low taxes in exchange for thousands of dollars that go into the pockets of the customs officials.”

Matar added, “The goods coming from the Kurdistan Regional Government to Baghdad and the southern provinces should be taxed at the main entrance to the capital, but merchants are paying $2,500 to middlemen for each car to evade inspection.”

From 2003 until the end of 2015, the Iraqi government stopped applying the tariff law and merely applied the Iraq reconstruction tax, which amounted to 5% of the value of the goods, under Resolution 38 for 2003 issued by the Coalition Provisional Authority headed by Paul Bremer.

A major conflict erupted in 2015 between the local governments in southern Iraq and the KRG and the central government when the local bodies refused to enforce the law, but Baghdad finally used its power and applied the law and set up customs points around the capital to double-check customs.