Top Energy StoriesWhat rights does ExxonMobil have as it seeks to exit the West Qurna 1 project? The American super-major told Iraq earlier this year that it wanted to sell its stake to the Chinese companies PetroChina and CNOOC, but the Oil Ministry rejected the plan, setting the stage for potential conflict. One key question is what exactly the contract says about such a sale — and few people know the contract as well as Abdul Mahdy al-Ameedi. The former director general of the Oil Ministry's Petroleum Contracts and Licensing Directorate, Ameedi oversaw the negotiation, signing, and implementation of Iraq's technical service contracts with international oil companies. In an opinion piece for Iraq Oil Report, he quotes extensively from the West Qurna 1 contract and gives his take on Exxon's limited options. Read the full article here. BP is looking to restructure its relationship with the Rumaila oil field proejct. Reporting for the Wall Street Journal, Sarah McFarlane and Benoit Faucon write that "the new company would hold BP’s interest in Iraq’s giant Rumaila oil field — one of the world's largest — and be jointly owned by China National Petroleum Corp. [CNPC], one of the British company's partners at the site, the people [familiar with the matter] said. The new entity would hold its own debt, separate from BP, and distribute profits via dividends." The impetus for the plan appears to be tied to the company's efforts to become — or to appear to become — more responsive to the climate change crisis. On paper, the plan would shift capital spending to the newly formed entity, enabling BP to show reduced spending on oil and gas while still receiving profits from the project. It is not clear what kind of a practical difference the new arrangement would make for Iraq, if any. The field is already run by a BP-led consortium called the Rumaila Operating Organization (ROO), which also includes CNPC and the state-run Basra Oil Company (BOC). The limited details available suggest the new plan would change the way in which ROO's financial and environmental liabilities are reflected on BP's books, but would do little to alter BP's fundamental relationship with Iraq. National NewsParamilitary commander Qassim Musleh walked free from Iraqi custody on Wednesday, in what the Washington Post’s Louisa Loveluck and Mustafa Salim described as an “embarrassment” for Iraqi Prime Minister Mustafa al-Kadhimi’s attempt to limit impunity among Iran-backed armed groups. The reporters write that the case shows that influential paramilitary groups hold the upper hand over the commander-in-chief. Musleh was arrested on May 26 on suspicion of involvement in the killing of prominent activists in Karbala. The arrest was met with anger by Iran-linked paramilitary fighters who converged on the Green Zone in Baghdad and faced off against members of the Counter-Terrorism Forces. In a statement on Wednesday, Iraq’s judiciary said “it had not seen sufficient evidence to convict Musleh and that he had provided a document showing he was out of the country during the killing of at least one of two civil society activists in Karbala whose deaths he is being linked to,” according to the Post. Writing for the Washington Institute, Michael Knights argues that the release of Musleh "is a reminder that Iraq’s judiciary is the weakest link in the state’s ability to protect the Iraqi people and hold perpetrators accountable. There can be no rule of law — nor much of a state — if judges are unable or unwilling to evaluate evidence without fear of intimidation." Multiple rockets hit Iraqi bases hosting U.S. troops and foreign contractors on Wednesday, according to Qassim Adul-Zahra, reporting for AP. Three rockets hit Balad Air Base and hours later, one missile hit close to a military base next to Baghdad airport, according to Iraqi security officials. Preliminary findings indicated the Baghdad base had been attacked by a drone. No casualties were reported. No one claimed responsibility for the attacks, but U.S. officials have previously blamed Iran-backed Iraqi paramilitary factions for such assaults, Abdul-Zahra writes. The attacks are the latest in a string of assaults targeting U.S. forces in Iraq amid ongoing discussions over the timetable for the withdrawal of U.S. troops from Iraq. Iraq has “lurched deeper into decline over the past few weeks” as paramilitary groups appear to shrug of government attempts to hold them accountable for campaigns of assassinations. The impunity has “deeply scarred” Iraqi civil society and “seriously weakened” Kadhimi, according to Thanassis Cambanis, writing for the World Politics Review. A further sign of the worsening situation was the assassination of a senior intelligence official, Col. Nebras Farman, in Baghdad on Monday. Elections will not provide alternatives to the status quo, writes the Cambanis, and the protest movement which began in October 2019 has also not coalesced around a political alternative. “A U.S. statement of support for Kadhimi’s effort to impose the rule of law on militias did nothing to change this balance of power in Baghdad,” Cambanis says. The average household income in the Kurdistan Region fell dramatically during the coronavirus pandemic, according to a new UNDP report cited by NRT news. The report said the drop occurred because of KRG salary cuts and delays due to the economic fallout from the pandemic and budget disputes with Baghdad. Before the pandemic, the average monthly income in the Kurdistan Region was 526,570 Iraqi dinars ($363), but this declined by 31 percent to 361,099 dinars ($249) by December 2020. Iraqis experienced a 12 percent drop in average monthly income – much narrower than the loss experienced in the Kurdistan Region. The UNDP said that aside from public sector workers, daily labourers and casual workers were among the hardest hit economically by the pandemic. Women, young people, people with disabilities, and IDPs were also disproportionately affected by the pandemic. Canadian soldiers who saw videos of possible war crimes committed by Iraqi soldiers are now being interviewed by military police investigators. The incidents apparently occurred three years ago at a training base near Mosul when Canadian soldiers “were shown videos of possible war crimes shot by their students,” according to CBC News. The videos reportedly showed rape, torture, as well as the execution of an IS prisoner. The Canadian trainers reportedly grew concerned and informed their commander following the incident. Since then, the matter might have been buried and forgotten, but a briefing note prepared for a new commander of the 3rd Battalion Royal Canadian Regiment said that a soldier had tried three times to bring official attention to the matter. |
