Kirkuk exports resume via Kurdistan

The Kurdistan and Federal Iraq governments have announced an agreement for the resumption of oil exports from Kirkuk via the Kurdistan export pipeline to Ceyhan. This positive development will benefit the public revenues of Federal Iraq which has been grappling with funding issues in recent years with the oil price collapse on the one hand and need to fund defences along its borders on the other. Kirkuk production was locked out of the Kurdistan...

Read More

Flight ban into Kurdistan lifted

Kurdistan operators can begin to ramp up operations again following the re-opening of the airport. As reported previously, the closure had caused logistical problems for the operators. Reuters reported yesterday that Iraq has lifted the ban on international flights to the semi-autonomous Kurdistan Region's airports. Prime Minister Haider al-Abadi said that Kurdistan's regional airports will be under the command of the Federal Ministry of the Interior. The ban on international flights was part of sanctions imposed on Kurdistan after September’s...

Read More

All’s well in western Kurdistan

The western part of Kurdistan appears to be holding up following the referendum last autumn. Although there is much to do to reconcile the fragile relationship between Federal Iraq and the Kurdistan region, things for now appear to have stabilised – however upcoming elections in both is limiting any meaningful progress with political candidates not willing to make any bold reconciliatory moves to avoid alienating voters. The operators in western...

Read More

SOCO terminates merger talks with Kuwait Energy

Soco has formally terminated merger talks with Kuwait Energy over valuation differences. Full press release from Soco below. On 8 January 2018, SOCO International plc (“SOCO”) announced that it was in preliminary discussions with the newly-constituted Board of Directors of Kuwait Energy plc (“Kuwait Energy”) regarding a potential transaction. SOCO confirms that it has terminated these discussions because it could not reach agreement with Kuwait Energy on the basis for an acceptable transaction. SOCO’s Board remains committed to its strategy...

Read More

Dragon Oil increases stake in Block 9 to 45% from Kuwait Energy

Kuwait Energy has farmed out a 15% interest in Block 9, Iraq to Dragon Oil. Kuwait Energy will reduce its interest to 45% and Dragon Oil will increase its stake to 45%. The 15% will be made up of the following: 8.57% for USD100 million cash; 6.43% in settlement of a dispute in favour of Dragon Oil Full press release by Kuwait Energy follows: Kuwait Energy Company is pleased to announce the signing of the Block 9, Iraq Farm-out Agreement with Dragon Oil Plc (a wholly-owned subsidiary of Emirates National Oil Company Ltd, the national oil company...

Read More

OPEC may extend yet

Saudi Arabia has been working tirelessly behind the scenes and appears to be gaining good momentum with the major actors of OPEC + 1 (i.e. Russia) for extending the OPEC output agreement beyond April 2018. Saudi Arabia and its new ally, Russia, are keenly in favour of maintaining the cuts until June 2018 and several other producers have recently signaled their support for an extension as well. Iran: Initially one of the tougher partners at the...

Read More

ISIS: Sectarian furies unleashed again

The recent events in Iraq is a continuation of a rift between Sunni and Shias that began over a thousand years ago Shias believed Ali, the son-in-law of the Prophet Muhammad should take over the leadership upon his death Sunnis believed the Muslim community should determine the new leadership by consensus Ali became the new leader, but upon his assassination in 661, war broke out between the two groups Islamic terrorism once seemed to wear...

Read More