Top Energy Stories

Iraq's Federal Supreme Court issued a sweeping ruling against the legal foundations of Iraqi Kurdistan's independent oil sector. The court's decision could force a seismic shift in the balance of oil powers between the federal government and the semi-autonomous Kurdistan Regional Government (KRG) — potentially upending a 450,000 barrel per day (bpd) market and altering the dynamics of a government-formation process that has seen multiple blocs court Kurdish MPs. The decision strikes down the major legal pillars on which the KRG has justified the independent management of its oil sector, including signing contracts with foreign companies, exporting and marketing crude, and collecting revenue. Read the full story on Iraq Oil Report.

The long-delayed Karbala refinery is scheduled to start coming online in September, allowing Iraq to produce millions of liters per day of high-quality light oil products to meet growing domestic demand for gasoline – although the precise timeline is uncertain due to unresolved questions over financing the final stages of the project. The refinery will begin by processing 70,000 barrels per day (bpd) of medium and light crude oil this fall and likely ramp up to its full capacity of 140,000 bpd by 2023, according to refinery director Hayder Shareef Mohammed, who spoke with Iraq Oil Report during a site visit earlier this month. When fully operational, the Karbala plant will represent a significant improvement in the capacity and quality of Iraq’s refineries. It will allow the country to extract added value from its crude oil and boost high-quality gasoline production, thereby helping to reduce Iraq’s reliance on costly fuel imports. For a detailed look at the project, read the full story on Iraq Oil Report.

Iraq's federal government and Kurdistan region produced a combined 4.32 million bpd of crude oil in January as output slipped due to bad weather at southern terminals that delayed tanker loadings and forced production shut-ins at major southern oil fields.
The decline from December output of 4.49 million bpd came despite the country’s higher OPEC-plus quota for the month. The revenue impact was mitigated by rising global oil prices, however, which pushed export sales to their highest level in a decade. Read the full story on Iraq Oil Report.

National News

Jack Losh for Foreign Policy: In Iraq, the bitter legacy of war still lies hidden underground

The problem with using explosive weapons in populated areas is not only can they kill, injure, traumatize, and displace the population, but their temperamental design and inaccurate use mean many fail to explode on impact. That legacy can threaten civilians years after a conflict has ended, setting in motion a vicious cycle.

Their persisting presence impedes economic development and the return of refugees while hindering access to health, education, and other essential services. Across Iraq, more than a quarter of explosive ordnance contamination is found in agricultural areas, preventing farmers from using the land or making a living. Another fifth is found in infrastructure, hampering reconstruction efforts and attempts to kick-start the economy. Grievances stack up, creating flash points for further fighting.

Around 1,100 square miles of explosive-littered land have so far been recorded, according to the United Nations Mine Action Service. A fraction of that has been cleared. The true extent is not known and is likely far higher. Nor is the total number of casualties clear-cut, though researchers put the toll at more than 10,000 deaths and some 24,000 people injured over the last two decades.

Amwaj: Will Iraq's exit from EU money laundering blacklist bring investment?

The European Union (EU) has removed Iraq from its list of high-risk countries for money laundering and terrorism financing. Iraqi Prime Minister Mustafa Al-Kadhimi attributed the delisting to a “manifestation of our effective diplomatic efforts.” The move comes at a time of immense economic hardship in Iraq, and could bring about positive change by attracting direly-needed foreign investment.

The delisting will make it easier, at least on paper, for European and other foreign investors to operate in the country. Importantly, it eases constraints on remittances to and from Iraq, among other positive knock-on effects for the local banking sector.

Mengqi Sun for the Wall Street Journal: Ericsson details serious compliance breaches in Iraq

The Swedish telecommunications-equipment company on Tuesday said an internal investigation conducted in 2019 of compliance concerns in Iraq uncovered evidence of corruption-related misconduct and questionable payments made there.

... The company said it identified the use of suppliers to make cash payments and the improper use of sales agents and consultants.

The investigation team also found payment schemes and cash transactions that potentially presented a money-laundering risk, Ericsson said. It said investigators identified payments to intermediaries and use of alternate transport routes that aimed to circumvent Iraqi customs at a time when terrorist groups, such as Islamic State, controlled some transport routes, but investigators couldn’t determine the ultimate recipients of these payments. Ericsson said the probe also couldn’t identify that any its employees was directly involved in financing terrorist groups.

Qassim Abdul-Zahra and Abdelrahman Zeyad for AP: Iconic musician seeks to rebuild Iraq through music

War kept him away from his beloved homeland for decades. Now, virtuoso oud player Naseer Shamma hopes to help rebuild conflict-scarred Iraq through a series of concerts and other projects to support culture and education.

... The 59-year-old Shamma is considered a modern-day master of the oud, a pear-shaped stringed instrument similar to a lute whose deep tones and swift-changing chords are central to Arabic music.

... “The audience’s artistic taste had changed as a result of wars, but last night it was similar to the audiences of the ’80s. I felt as if it was in an international concert like one in Berlin,” Shamma said Friday after the first of four concerts he is holding in Baghdad this month.

The concert series, held under the slogan “Education First,” aims to highlight Iraq’s decaying education system, which has suffered under years of conflict, government negligence and corruption.

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