A power plant smokestack in Basra. Iraq, the second-largest oil producer within Opec, has room to grow output substantially. AFP
A power plant smokestack in Basra. Iraq, the second-largest oil producer within Opec, has room to grow output substantially. AFP
A power plant smokestack in Basra. Iraq, the second-largest oil producer within Opec, has room to grow output substantially. AFP
A power plant smokestack in Basra. Iraq, the second-largest oil producer within Opec, has room to grow output substantially. AFP

Addressing political differences key to Iraq's energy sector revival


Robin Mills
  • English
  • Arabic

It’s a rare forum these days that can bring together senior figures from the US, Russia, Turkey, the Iraqi federal government, including groups close to Iran, and the two main parties from the Kurdistan Region of Iraq.

The Erbil Forum last week did that, but it also illustrated just how hard it will be to find common ground between all parties involved — and that is before throwing China into the mix.

There was a general feeling that, amid the war in Ukraine and the strategic competition with Beijing, Washington had lost interest in Iraq.

Yet the country remains pivotal to global energy. The second-largest oil producer within Opec, Iraq has room to grow output substantially and is a critical part of replacing any losses from Russia, if and when the group decides to open the taps. The Iraqi Kurdistan region’s gas resources could power the rest of Iraq and export to Turkey, providing Europe with a partial alternative to Moscow.

It is the fourth-largest Arab country both by population and greenhouse gas emissions. Its people languish in heat and darkness, while its renewable energy potential remains virtually untouched.

The geopolitical games are multilayered. Iraqi affairs have gradually improved since the darkest days of the civil war in 2006-2007 and the onslaught of ISIS in 2014.

But the country now risks being drawn into conflicts not of its making, involving two regional players, Iran and Turkey, and three outside powers, the US, Russia and China.

Two weeks ago, the federal government finally concluded six petroleum contracts waiting for signature since the fifth bid round in 2018.

Three were with Sharjah-based Crescent Petroleum, which already operates Iraqi Kurdistan’s largest gasfield, Khor Mor, in partnership with Abu Dhabi-listed Dana Gas and three European companies.

The gas production from these blocks could be crucial in improving electricity supply and in supplementing Iraq’s costly and unreliable imports from Iran.

This was doubly interesting.

Firstly, rocket attacks on Khor Mor in recent months were interpreted as warnings to Kurdish parties to fall in line with Tehran’s plans for the new government in Baghdad, but since they occurred again after government formation, they may also be seen as a threat not to pursue independent gas exports in competition with Iran in Iraq and Turkey.

Secondly, the Federal Ministry of Oil had warned companies not to operate in the Iraqi Kurdistan region, after a February 2022 supreme court ruling that its oil and gas law was unconstitutional. The judgement was seen as politicised, but still has been enough to scare off several leading oil service companies and possibly to discourage traders from renewing arrangements to purchase Kurdish oil.

Nevertheless, Prime Minister Mohammed Shia Al Sudani showed himself ready to sign with one of the most prominent operators in the semi-autonomous region.

Iraq's Prime Minister Mohammed Shia Al Sudani addressing the final signing ceremony of the contracts for the latest licensing round for oil and gas border exploration blocks and fields in Baghdad. AFP
Iraq's Prime Minister Mohammed Shia Al Sudani addressing the final signing ceremony of the contracts for the latest licensing round for oil and gas border exploration blocks and fields in Baghdad. AFP

A long-running arbitration wending its way through a Paris-based tribunal is expected soon to find in favour of Baghdad versus Ankara in declaring that Turkey breached a treaty when it allowed the Kurds to send oil through the Iraq-Turkey pipeline. Ankara won’t pay up the mooted multiple billions of dollars in damages, but whatever compromise is reached could also cast aside Kurdish interests.

Three of the other new field development contracts went to Chinese companies. They have become increasingly dominant in Iraq as others have packed their bags. If ExxonMobil leaves the West Qurna-1 field in favour of a Chinese partner, as is widely expected, China would operate more than half of Iraqi oil output. Chinese credit lines help underpin lending to Iraqi infrastructure, and Baghdad recently announced it was open to conducting some trade in yuan.

Russian corporations — Rosneft, Gazprom Neft and Lukoil — also have a strong position. Rosneft paid and loaned up to $3 billion to the Iraqi Kurdistan region for oil sales, fields and pipelines just ahead of Erbil’s referendum on independence in September 2017. They are unlikely to expand their position, though, given the difficulties of access to finance, banking and technology imposed by the Western sanctions.

The Iraqis themselves are aware of the danger of over-dependence on Beijing, but their investment-unfriendly policies block off alternatives. Recently, France’s TotalEnergies reportedly nearly walked away from a multibillion package to develop oil, gas, water injection and solar power.

A last-minute change of heart in Baghdad has brought them back to the negotiating table. However, there is not a great appetite from the other major international oil companies to do more, given their decarbonisation trajectories and the spread of opportunities elsewhere.

Iraq could manage external powers better if its own house were in order. But a federal law that would resolve management of the Kurdish petroleum sector, how oil should be sold and the revenues divided, appears out of reach. Despite talk of progress, the outline sounds like several previous deals that fell apart almost as soon as concluded.

The Kurdish position, meanwhile, is weakening, because of the widening split between the two main parties and even within the smaller of them, the Patriotic Union of Kurdistan. The colourful Bafel Talabani, leader of the PUK, appeared at the forum wearing his trademark mountain boots and, at the conclusion of his interview, theatrically tore off his tie, reportedly borrowed from his urbane brother Qubad.

He has previously said that gas exports to Turkey, from fields located in PUK-controlled areas, would take place over his “dead body” if the people’s interest were not fairly consulted.

But with oil resources running down, major gas projects are the main hope for new revenues and political importance.

Iraq thus illustrates in microcosm the dilemmas that many smaller and fragile states will encounter as Sino-Russo-American relations become increasingly uncompromising.

Stronger non-aligned countries can cleverly play off one great power against another. Weaker ones can easily be torn apart — bad news not just for their people, but for global energy security.

Robin M. Mills is chief executive of Qamar Energy and author of The Myth of the Oil Crisis

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
While you're here
Results

6.30pm Al Maktoum Challenge Round-3 Group 1 (PA) US$100,000 (Dirt) 2,000m, Winner Bandar, Fernando Jara (jockey), Majed Al Jahouri (trainer).

7.05pm Meydan Classic Listed (TB) $175,000 (Turf) 1,600m, ​​​​​​​Winner Well Of Wisdom, William Buick, Charlie Appleby.

7.40pm Handicap (TB) $135,000 (T) 2,000m, ​​​​​​​Winner Star Safari, Mickael Barzalona, Charlie Appleby.

8.15pm Handicap (TB) $135,000 (D) 1,600m, Winner Moqarrar, Fabrice Veron, Erwan Charpy.

8.50pm Nad Al Sheba Trophy Group 2 (TB) $300,000 (T) 2,810m, Winner Secret Advisor, William Buick, Charlie Appleby.

9.25pm Curlin Stakes Listed (TB) $175,000 (D) 2,000m, ​​​​​​​Winner Parsimony, William Buick, Doug O’Neill.

10pm Handicap (TB) $135,000 (T) 2,000m, Winner Simsir, Ronan Whelan, Michael Halford.

10.35pm Handicap (TB) $175,000 (T) 1,400m, ​​​​​​​Winner Velorum, Mickael Barzalona, Charlie Appleby.

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Fixtures and results:

Wed, Aug 29:

  • Malaysia bt Hong Kong by 3 wickets
  • Oman bt Nepal by 7 wickets
  • UAE bt Singapore by 215 runs

Thu, Aug 30: 

  • UAE bt Nepal by 78 runs
  • Hong Kong bt Singapore by 5 wickets
  • Oman bt Malaysia by 2 wickets

Sat, Sep 1: UAE v Hong Kong; Oman v Singapore; Malaysia v Nepal

Sun, Sep 2: Hong Kong v Oman; Malaysia v UAE; Nepal v Singapore

Tue, Sep 4: Malaysia v Singapore; UAE v Oman; Nepal v Hong Kong

Thu, Sep 6: Final

Combating coronavirus

The Vines - In Miracle Land
Two stars

Naga
%3Cp%3E%3Cstrong%3EDirector%3A%C2%A0%3C%2Fstrong%3EMeshal%20Al%20Jaser%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%C2%A0%3C%2Fstrong%3EAdwa%20Bader%2C%20Yazeed%20Almajyul%2C%20Khalid%20Bin%20Shaddad%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
Recycle Reuse Repurpose

New central waste facility on site at expo Dubai South area to  handle estimated 173 tonne of waste generated daily by millions of visitors

Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site

Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area

Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent  organic waste  and 13 per cent  general waste.

About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor

Recycling at Ras Al Khor unit:

Plastic items to be converted to plastic bags and recycled

Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays

Glass waste into bowls, lights, candle holders, serving trays and coasters

Aim is for 85 per cent of waste from the site to be diverted from landfill 

If you go

The flights

The closest international airport for those travelling from the UAE is Denver, Colorado. British Airways (www.ba.com) flies from the UAE via London from Dh3,700 return, including taxes. From there, transfers can be arranged to the ranch or it’s a seven-hour drive. Alternatively, take an internal flight to the counties of Cody, Casper, or Billings

The stay

Red Reflet offers a series of packages, with prices varying depending on season. All meals and activities are included, with prices starting from US$2,218 (Dh7,150) per person for a minimum stay of three nights, including taxes. For more information, visit red-reflet-ranch.net.

 

Stuck in a job without a pay rise? Here's what to do

Chris Greaves, the managing director of Hays Gulf Region, says those without a pay rise for an extended period must start asking questions – both of themselves and their employer.

“First, are they happy with that or do they want more?” he says. “Job-seeking is a time-consuming, frustrating and long-winded affair so are they prepared to put themselves through that rigmarole? Before they consider that, they must ask their employer what is happening.”

Most employees bring up pay rise queries at their annual performance appraisal and find out what the company has in store for them from a career perspective.

Those with no formal appraisal system, Mr Greaves says, should ask HR or their line manager for an assessment.

“You want to find out how they value your contribution and where your job could go,” he says. “You’ve got to be brave enough to ask some questions and if you don’t like the answers then you have to develop a strategy or change jobs if you are prepared to go through the job-seeking process.”

For those that do reach the salary negotiation with their current employer, Mr Greaves says there is no point in asking for less than 5 per cent.

“However, this can only really have any chance of success if you can identify where you add value to the business (preferably you can put a monetary value on it), or you can point to a sustained contribution above the call of duty or to other achievements you think your employer will value.”

 

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

box

COMPANY PROFILE

Company name: Letstango.com

Started: June 2013

Founder: Alex Tchablakian

Based: Dubai

Industry: e-commerce

Initial investment: Dh10 million

Investors: Self-funded

Total customers: 300,000 unique customers every month

Greatest Royal Rumble match listing

50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias

Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match

WWE World Heavyweight ChampionshipAJ Styles (champion) v Shinsuke Nakamura

Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe

United States Championship Jeff Hardy (champion) v Jinder Mahal

SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos

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Casket match The Undertaker v Rusev

Singles match John Cena v Triple H

Cruiserweight Championship Cedric Alexander v Kalisto

Updated: March 06, 2023, 3:00 AM