0. Oil revenue is a significant government income for several oil producing countries. In fact, the majority of the participants were businesspeople, including representatives of such Russian oil and gas companies as Gazprom Neft, Rosneft, Soyuzneftegaz, and Lukoil. Vera Mironova is a visiting fellow at Harvard University. Still, Iraq is “undoubtedly” one of Lukoil’s “prioritized regions,” he said. It has long targeted production of 5 million barrels daily, with a capacity to export about the same amount. (Bloomberg) --Lukoil PJSC is seeking to develop new oilfield projects in Iraq even as slumping crude prices and OPEC+ supply cuts have compelled the company to slash production in the country. So we do not see it as an issue.”. Russian companies are already well represented among oil companies in Iraq. © Autonomous Nonprofit Organization “TV-Novosti”, 2005–2020. All that changed with increased sectarian conflict in 2009. “Only bilateral trade relations were discussed on the meetings,” one source with ties to the Iraqi prime minister who requested anonymity told us this month. All rights reserved. The common belief in Kurdistan was that having a trade deal with them will also bring other, political and security, benefits.”, Even sanctions don’t seem to bother the Russians or Iraqis. S. Jaishankar’s “The India Way” is a rare book by a sitting foreign minister. Smoke billows from a fire that broke out at the North Oil Company installations in the disputed oil-rich province of Kirkuk, north of Baghdad, on Aug. 29. Instead, Lukoil has reined in production to 280,000 barrels a day to help Iraq comply with its quota under the global supply-cuts agreement, said Egor Zubarev, managing director of the company’s Middle Eastern business. Low oil price put pressure on state financials. Twitter: @vera_mironov, Mohammed Hussein is the policy director at the Iraqi Center for Policy Analysis and Research. 129. Rather, it will be Russia in charge on the ground. Later, when the Kurdish leaders got disappointed with Americans, Russians appeared stronger and friendlier. And soon, even the dollar might not have a place in the trade: Iraq and Russia have been discussing denominating payments in either rubles or dinars rather than the dollar to avoid any interaction with the U.S. system. The lasting impact of Sanders and Corbyn, a profile of the UAE’s invisible Palestinian hand, and a drift toward authoritarianism in West Africa. Still, Iraq has failed to fully comply with the cuts, while the oil price crash has severely constrained its budget, oil sales being the main source of income for the government. And due to the long-term nature of oil and gas contracts, Russia’s market share will only increase over time. Denmark removes final hurdle for Russian gas pipeline to Europe, Russia gets closer to new wheat harvest record thanks to surging grain yields, Iran is building a massive energy network to boost its geopolitical influence, Dump the dollar: Goldman warns US currency could plummet. Iraq’s financial constraints present a challenge. By Vera Mironova and Mohammed Hussein, for Foreign Policy. Read RT Privacy policy to find out more. Russia’s entry was welcomed in Iraq. 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After the fall of the Saddam Hussein regime in 2003 and following the occupation of Iraq, Russian companies were largely absent from the playing field. Oil is about 96 percent of Iraq’s export, but without a pipeline to export it, oil simply has no value to the country. However, due to the pandemic and the oil price crash, which resulted in new OPEC+ production cuts, Lukoil cut production at the West Qurna-2 oilfield to 280,000 bpd, according to Lukoil’s Zubarev. Russia’s second-biggest oil producer pumped 400,000 barrels a day last year at its West Qurna 2 project in southern Iraq, and it had planned to boost output there in 2020. It could be true that the region’s fields will never again be controlled by the Islamic State, but it is unlikely that the United States will play the biggest role, either. “Russians wanted to make sure everything is going smoothly regarding Russian energy companies’ projects in Iraq.” Another source with links to the Kurdistan Regional Government (KRG), which is headquartered in Erbil, concurred. Russian influence over the oil in Iraq and Syria is not only a long-term economic blow to the United States, but a political one, too. The oil is secure.” In regards to Iraq, the president has also lamented that the United States didn’t take control over the country’s reserves after the Iraq War. With Rosneft having effectively taken control of Kurdistan’s oil and gas sector in northern Iraq through the deal done in November 2017, Russia had been looking to leverage this presence into a similarly powerful position in the south of the country. Today, this field is only producing at a rate of around 400,000 barrels per day, but it already represents 9 percent of total Iraqi production of crude oil and 12 percent of Iraq’s oil exports. Russian influence over the oil in Iraq and Syria is not only a long-term economic blow to the United States, but a political one, too. May 28, 2020. Despite ongoing protests in Baghdad, which have seen the departure of many foreign diplomats for security concerns, Russia has doubled down. U.S. President Donald Trump might like to claim that the United States still has a hand in the region’s oil sector. Exxon, BP, and Lukoil are among the largest foreign producers in Iraq, and all were asked to reduce output. Oil prices are 36% lower this year since the coronavirus gutted fuel demand, and Lukoil, like other producers, has had to postpone its immediate plans to raise output. Oil is the main currency in those two countries, so whoever controls it also has a major say in the region’s geopolitics. Relations between Russians and the people of Iraq long predate the formation of the modern Iraqi and Russian states. Russia’s second-biggest oil producer pumped 400,000 barrels a day last year at its West Qurna 2 project in southern Iraq, and it had planned to boost output there in 2020. The project is slated to last 25 years with a target of achieving production of 800,000 barrels per day by the end of 2024. Lower crude prices are putting pressure on the government’s budget, and some oil projects have slowed due to Baghdad’s shortage of cash, Oil Minister Ihsan Abdul Jabbar said Tuesday in an online conference. His tour did not look like a regular diplomatic mission. In spring 2018, Rosneft also announced the signing of an agreement with the KRG’s Ministry of Natural Resources to develop its oil and gas infrastructure, including a new gas pipeline that is expected to have export capacity of up to 30 billion cubic meters of gas per year. Lukoil has a 75% stake in West Qurna 2 and is working on projects to explore other parts of the field as well as the separate Block 10 area. Other deals since 2011 include $2.5 billion in investments by Gazprom and its partners in central Iraq and the Kurdistan region alone. Gazprom has produced 3 million barrels of oil from the Sarqala fields in Garmian, for example, and it has launched several exploration projects in the Halabja and Shakal fields. Also in attendance were representatives of Technopromexport, a Russian company that builds energy facilities, and from Russia’s Federal Service of Military-Technical Cooperation. Around that time, many Western oil companies (such as ExxonMobil and Chevron) partially or totally left the region due to the security concerns. In the Middle Ages, merchants and explorers travelled between the two countries using the Volga trade route and Caspian Sea, and then overland. We will NEVER let a reconstituted ISIS have those fields!” And in a meeting with Turkish President Recep Tayyip Erdogan, he noted, “We’re keeping the oil. Iraq, OPEC’s second-largest producer, ordered international companies working at its fields to pump less oil after the Organization of Petroleum Exporting Countries and allies including Russia agreed in April to take nearly a 10th of the world’s supply off the market. “For a long time now,” said one in November, “Iraq is working with Russian companies that are sanctioned by the U.S. Treasury and till now those deals have not triggered any strong reactions by the U.S. administration. Due to the OPEC+ deal, Iraq told the international oil majors working on its large oilfields to cut crude oil production. That amounts to approximately 6 percent of Europe’s total gas demand. Many demonstrators see Tehran’s hand in widespread violence and support for the embattled prime minister. Some even want military rule. Democratic Socialists Lost, but Their Ideas Have Won, Election Violence in the United States Is a Clear and Present Danger, ‘We Don’t Believe in a Political Solution’ in Nagorno-Karabakh, Fighters Say, America’s Cultural Institutions Are Quietly Fueled by Russian Corruption. Lukoil plans to file proposals to Iraq’s authorities “soon” to develop a separate area in southern Iraq known as Block 10, Zubarev said. Russia’s second-largest producer, Lukoil, is eager to increase its oil production in Iraq once the production cuts of the OPEC+ group end, Egor Zubarev, Managing Director of Lukoil Mid-East, told Bloomberg. © 2020 World Oil, © 2020 Gulf Publishing Company LLC. Subscribe to RT newsletter to get stories the mainstream media won’t tell you, FILE PHOTO: The company logo of Lukoil is seen in West Qurna oilfield, Iraq © Reuters / Essam Al-Sudani, OPEC+ key breakaway asks BP to cut production at its biggest oilfield to finally comply with oil deal – report, Libya’s oil industry lifts force majeure on its biggest oilfield, We won’t deal with ships operating in Venezuela, Brazil’s Petrobras says amid US sanctions on oil trade with Caracas, Russia now makes more money from gold than natural gas exports, Russia proposes $20 billion in new investment projects with China, Australians can visit Antarctica during pandemic with no passport or luggage required, Sanctioned Venezuelan oil exports rise from historic lows thanks to increase in India sales – report, Exxon eyes global job cuts to keep afloat after oil price collapse, Central Bank of Russia does not rule out another pandemic wave & $25 oil price, Major banks, food & cosmetics brands linked to massive abuses in palm oil industry – report, Iran significantly boosts oil exports despite sanctions, Full stream ahead!

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