Saturday Afternoon Iraq Economic News Highlights 7-16-22

Iraq Is Close To Resolving An Oil Dispute With Turkey In Its Favour

Baghdad / Obelisk: Oil Minister Ihsan Abdul-Jabbar announced on Friday 15/07/2022 that Iraq is close to resolving an oil dispute with Turkey in its favour, by an international decision.

A statement issued by the Ministry of Oil said that the final session of the arbitration panel of the International Chamber of Commerce in the dispute between the Republic of Iraq and the Republic of Turkey regarding the pipeline agreement between Iraq and Turkey was held in Paris in July 2022.

The Minister of Oil, Ihsan Abdul-Jabbar Ismail, affirmed Iraq's keenness to restore its legitimate rights to its national wealth in accordance with international laws and treaties, stressing Iraq's respect for just and equitable decisions issued by the courts and the concerned authorities that consider cases related to violations and disputes, including those related to oil wealth.

The Minister of Oil added that he firmly believes that the correct approach is to work on resolving these issues by resorting to peaceful legal methods.

According to the statement, the International Chamber of Commerce is considering the arbitration case filed by the Republic of Iraq against the Republic of Turkey for violating the provisions of the Iraqi-Turkish pipeline agreement signed in 1973, which stipulates that the Turkish government must comply with the instructions of the Iraqi side regarding the movement of crude oil coming from Iraq in all centers Storage, drainage and terminal.

At the hearing, which was held in Paris, the Ministry of Oil was represented by the Minister personally, a number of ministry officials, the Iraqi embassy in Paris, and the legal and technical work team, due to the importance of the lawsuit as it is the largest in the history of Iraq.

The Minister of Oil said, according to the statement, that the arbitral tribunal closed the presentation of the case by the parties, after hearing their regulations and their pleas, and that there was no further opportunity for extension or postponement. He expected that the arbitral tribunal of the International Chamber of Commerce in Paris would issue its final and decisive decision within the next few months.

The Minister of Oil expressed his gratitude to the arbitration panel of the International Chamber of Commerce in Paris for its professional handling of the dispute, which gave the two parties the opportunity and time to defend their positions.

He explained that Iraq has good relations with Turkey and that this arbitration does not constitute an obstacle to the development and expansion of bilateral relations to achieve common interests, while Iraq retains its constitutional powers and sovereignty over all its wealth.

The Minister of Oil praised the distinguished efforts of the International Legal Advisory Office and the Ministry’s Legal Committee in defending Iraq’s rights to manage its oil wealth and the Ministry of Oil’s possession of its constitutional powers and authorities, for their serious efforts over the past years to achieve justice and restore Iraq’s legitimate rights in order to preserve its security and sovereignty in accordance with for the statement. https://almasalah.com/archives/3950

Resources: Turkey Is Ready To Cooperate With Iraq On Increasing Water Releases

Baghdad / Obelisk: The State of Turkey announced, 07/16/2022, its readiness to increase water releases to Iraq in the coming days.

The Ministry of Water Resources said in a statement received by Al-Masala, that Minister Mahdi Al-Hamdani, the special envoy of the Iraqi Prime Minister for Water Affairs, held a virtual meeting with the envoy of the Turkish President for Water Affairs Vesel Oroglu to discuss the situation of water imports of the Tigris and Euphrates rivers entering Iraq.

She added that the meeting included Al-Hamdani's request from the Turkish side to reconsider the water release plan in a way that secures Iraq's need to overcome the current water scarcity conditions.

She pointed out that the Turkish President's Special Envoy for Water Affairs expressed his readiness to cooperate with Iraq by instructing the Turkish Water and Dams Corporation to increase water releases during the next few days and according to their available reserves.

And she continued: During the virtual meeting, it was agreed between the two sides to send an Iraqi technical delegation to view on-site the reality of the water storage in the Turkish dams and to discuss the operational plans for those dams according to the available storage to overcome the current water scarcity crisis that Iraq is going through.    https://almasalah.com/archives/4059

The oil dispute puts Baghdad in front of “big” legal problems.. Billions of compensation for Erbil (details)

Economie 2022/07/16 Baghdad today -

Baghdad The American international legal firm Gibson Dunn, commenting on the problems between the Iraqi Ministry of Oil and oil companies operating in the Kurdistan region, announced that these companies can file cases in international courts, and demand tens of billions in compensation from the Iraqi government, if the latter insists on its efforts to cancel its contracts. in the Kurdistan region .

And the company said in a statement received (Baghdad today), that "taking into account the articles of the Iraqi constitution and the oil and gas law in the Kurdistan region, the file of oil companies operating in the Kurdistan region is strong, to the extent that allows them to file cases against the Iraqi government ."

Gibson Dunn stressed in her comment that "the Iraqi government will face major legal problems in light of this, and will have to pay billions of dollars in compensation ." The company added that "the Kurdistan region is part of Iraq in all circumstances, and Iraq must abide by international laws, especially since the Iraqi Oil Ministry has become a threat to the work environment of oil companies in the Kurdistan region ."

The company indicated that the Iraqi Oil Ministry's steps "contradict international laws and the decisions of the Organization of the Islamic Conference, of which Iraq is a member," stressing the need for "the Iraqi government's commitment to guaranteeing the rights of foreign investors."

The crisis over oil reached between the two governments; Federalism in Baghdad and the Kurdistan Region, advanced stages of complexity, with the Kurdish Judicial Council declaring the Federal Court unconstitutional. The Kurdish oil file has been managed since 2014 according to a formula of understandings concluded during the period of the government of Prime Minister Haider al-Abadi, obligating the region to hand over a percentage of its extracted oil or its revenues, or to deduct a percentage of the revenue values from the region’s share in the budget.

The disputes reached their climax after the Federal Court issued a decision on February 15, in which it considered the oil and gas law enacted in the regional parliament contrary to the constitution.

And the court’s decision obliges the region to hand over its entire oil production to Baghdad, and to allow the concerned federal authorities to “review all its oil contracts,” but Erbil rejected the decision, so that the Federal Oil Minister, Ihsan Abdul-Jabbar, announced on May 7 that the talks had stalled, and that practical measures had been taken to compel the companies.

Foreign women working in the region to cancel their contracts with Erbil and conclude them with Baghdad. And earlier, the Iraqi Oil Ministry issued a clarification regarding the position of the international oil companies operating in the Kurdistan region, northern Iraq, towards the decision of the Federal Court .

And the ministry's statement said that, in response to a number of questions addressed to it by the international and local press, regarding the position of American oil services companies operating in the Kurdistan region, towards the decision of the Federal Court, "We affirm that the companies (Schlumberger, Big Hughes, and Halliburton), which are considered It is one of the sober international companies in the field of oil services, and according to its official addresses to the ministry, it confirmed not to submit to new projects in the region, in compliance with the decision of the Federal Court, and the directives of the steering committee formed in the Ministry of Oil .

The statement added that the companies, referred to above, are "now in the process of liquidation and closing of existing tenders and contracts ." The ministry confirmed that, according to this pledge, these companies “do not own a commercial entity or other companies operating in the region, whether through their trademark or others, or on their behalf, in a manner that does not violate the decision of the Federal Court, or intersect with the ministry’s directives.” .   LINK

Statement From Oil: We Are Close To Acquiring Iraq's Historical Rights To Manage Its Entire Oil Activity

Baghdad - people       The final session of the International Chamber of Commerce’s arbitration panel in the dispute between Iraq and Turkey was held today, Friday, on the pipeline agreement between Iraq and Turkey, in Paris in July 2022.

  Oil Minister Ihsan Abdul-Jabbar Ismail confirmed, according to a statement issued by the ministry, that "Nass" received a copy of it (July 15, 2022) "Iraq's keenness to restore its legitimate rights to its national wealth in accordance with international laws and treaties."

  He stressed, "Iraq's respect for the just and equitable decisions issued by the courts and the concerned authorities that consider cases related to violations and disputes, including those related to oil wealth."

  The Minister of Oil added that he "firmly believes that the correct approach is to work on resolving these issues by resorting to peaceful legal methods."

  The International Chamber of Commerce is considering the arbitration case filed by the Republic of Iraq against the Republic of Turkey for violating the provisions of the Iraqi-Turkish pipeline agreement signed in 1973, which stipulates that the Turkish government must comply with the instructions of the Iraqi side regarding the movement of crude oil coming from Iraq in all storage and disposal centers And the final station.

At the hearing held in Paris, the Oil Ministry was personally represented by the Minister, a number of ministry officials, the Iraqi embassy in Paris, and the legal and technical work team, due to the importance of the lawsuit as it is the largest in the history of Iraq, according to the statement.

  The Minister of Oil said that "the arbitral tribunal closed the presentation of the case by the parties, after hearing their regulations and their pleas, and that there is no further opportunity for extension or postponement, expecting that the arbitral tribunal of the International Chamber of Commerce in Paris will issue its final and decisive decision within the next few months."

  The Minister of Oil expressed his "gratitude to the arbitration panel of the International Chamber of Commerce in Paris for its professional handling of the dispute, which gave the two parties the opportunity and time to defend their positions."

  He explained that "Iraq has good relations with Turkey, and this arbitration does not constitute an obstacle to the development and expansion of bilateral relations to achieve common interests, while Iraq retains its constitutional powers and sovereignty over all its wealth."  https://www.nasnews.com/view.php?cat=89999