Iraq’s Government Orders Kurdistan Region to Immediately Transfer Oil Production to SOMO

The Iraqi Council of Ministers headed by Mohammed Shia Al-Sudani (INA)
The Iraqi Council of Ministers headed by Mohammed Shia Al-Sudani (INA)
TT

Iraq’s Government Orders Kurdistan Region to Immediately Transfer Oil Production to SOMO

The Iraqi Council of Ministers headed by Mohammed Shia Al-Sudani (INA)
The Iraqi Council of Ministers headed by Mohammed Shia Al-Sudani (INA)

The Iraqi government announced on Tuesday that it has ordered the Kurdistan region to immediately transfer its oil production to Iraq’s State Oil Marketing Organization (SOMO). The Iraqi cabinet also approved a budgetary measure to reimburse the Kurdish government for production and transportation costs, setting a rate of $16 per barrel for foreign oil companies operating in Iraqi Kurdistan.

Türkiye had halted oil flows through the Kurdistan Regional Government (KRG) pipeline in March 2023 after the International Chamber of Commerce ordered Ankara to pay $1.5 billion in compensation to Baghdad. This was due to unauthorized oil exports by the KRG between 2014 and 2018. The arbitration ruling concluded that Ankara had violated the 1973 treaty by enabling oil exports from the region without the Iraqi federal government’s approval.

Efforts to reopen the pipeline have been stalled by competing demands from the KRG, foreign oil companies, and the Iraqi federal government. According to a cabinet statement, Iraq’s Ministry of Oil, in coordination with the Kurdistan Ministry of Natural Resources, will appoint an international technical advisor to determine fair production and transport costs for each oil field within 60 days of the law’s implementation. If no agreement is reached within that period, the Iraqi cabinet will select an international advisory body independently of Kurdish authorities.

Iraq has attributed the delay in resuming crude exports to foreign companies and Kurdish authorities, stating that these entities have not yet submitted their contracts to the Iraqi Oil Ministry for review. Additionally, foreign companies have demanded higher production costs, a request the Iraqi government has rejected.



Saudi Arabia Joins International Partnership for Hydrogen and Fuel Cells in the Economy

Officials from the Saudi Energy Ministry after the official announcement of joining the International Partnership for the Hydrogen and Fuel Cells in the Economy (Saudi Energy Ministry)
Officials from the Saudi Energy Ministry after the official announcement of joining the International Partnership for the Hydrogen and Fuel Cells in the Economy (Saudi Energy Ministry)
TT

Saudi Arabia Joins International Partnership for Hydrogen and Fuel Cells in the Economy

Officials from the Saudi Energy Ministry after the official announcement of joining the International Partnership for the Hydrogen and Fuel Cells in the Economy (Saudi Energy Ministry)
Officials from the Saudi Energy Ministry after the official announcement of joining the International Partnership for the Hydrogen and Fuel Cells in the Economy (Saudi Energy Ministry)

The Saudi Energy Ministry announced Saturday that the Kingdom has officially joined the International Partnership for the Hydrogen and Fuel Cells in the Economy (IPHE), as part of its ongoing efforts to foster international collaboration in developing this vital sector.
This accession marks a major step for the Kingdom, reinforcing its pioneering role in global sustainability efforts and in innovating advanced solutions for clean energy, the Ministry said in a statement.
It aligns with Saudi Arabia’s ambition to become a key producer and exporter of clean hydrogen, and to achieve greenhouse gases (GHGs) net-zero through the circular carbon economy approach by 2060, or before depending on technology maturity and availability, the statement added.
Saudi Arabia’s involvement in IPHE underscores its commitment to international cooperation as a cornerstone for attaining a more sustainable energy future.
The move also supports the objectives of the “Saudi Green Initiative” and “Middle East Green Initiative,” which focus on reducing carbon emissions and stimulating global demand for clean hydrogen, according to the statement.
"It also aims to contribute to the development and harmonization of regulations and standards that bolster the clean hydrogen economy,” it added.
IPHE serves as a crucial platform for fostering collaboration among member states to expedite the advancement and deployment of hydrogen and fuel cell technologies.
The partnership is dedicated to exchanging knowledge, supporting relevant research and technologies, and raising awareness about the importance of clean hydrogen in achieving sustainable development.
In this spirit, Saudi Arabia actively participates in numerous international organizations and initiatives linked to the production of clean and low-emission fuels, including the Innovation Mission Initiative, the Clean Energy Ministerial Meeting, the Zero Neutrality Forum for Producers, the Global Methane Initiative, and other related efforts.