The latest twist in the battle between the Kurdish Regional Government (KRG) and Iraq’s central government over control of Kurd oil exports leaves the issue far from clear.
The future of Kurd crude oil exports is not only important for the two governments, which are facing dire financial circumstances, but also for the struggling international oil companies operating in the Kurdish region, several of which have ties to the UAE.
On Tuesday, a US appellate court upheld a previous ruling that required the KRG to give the central government in Baghdad notice of plans to sell oil in the United States.
The long-running dispute stems from the KRG’s efforts last year to market its oil independently after it failed to reach agreement with the central government on a revenue-sharing deal.
The KRG had sold dozens of cargoes of crude oil last year via the Turkish port of Ceyhan, including one that was forced to remain anchored off Houston for months after Baghdad used US courts to rule that it had sovereignty over oil originating in the Kurdish region.
The tanker, United Kalavryta, was finally acquired by parties in Israel, which meant the latest court decision was important mainly for what it means for future Kurd oil sales to the United States.
However, the two governments had different readings of the court ruling.
An Iraqi oil ministry official was quoted by Bloomberg as saying that the decision cleared the way for Baghdad to halt Kurd oil sales via US courts in the future.
The ministry of natural resources in Erbil took a different view.
“The state of play remains the same,” said the ministry yesterday.
“There is no prohibition on the KRG’s export of oil to the United States or elsewhere, and the KRG will continue to export hydrocarbons as the Iraqi constitution permits.”
There had been signs this year that the two governments might resolve the dispute after they reached agreement for the Kurds to market all oil via the State Oil Marketing Organisation and receive 17 per cent of Iraqi government revenues in return.
But the deal broke down as the parties continued to bicker over the details of how oil was being counted, including oil from Iraq’s Kirkuk field in the Kurdish region.
Meanwhile, the finances of both governments have deteriorated amid sinking oil prices and ongoing war in the country.
The KRG said oil exports last month fell about 100,000 barrels per day to 470,000 bpd because of a nine-day pipeline outage after it was bombed.
The KRG had hoped to alleviate the increasingly dire financial situation for international oil companies by agreeing to make payments from this month.
Two weeks ago, the Kurdish oil ministry said it allocated payments of US$30 million each to the operators of its largest fields, Taq Taq and Tawke, and $15m for Sheikhan, another large field, which together account for the bulk of its oil exports and foreign earnings.
Taq Taq is operated by Genel, which is chaired by the former BP chief Tony Hayward, in partnership with Addax Petroleum, a unit of China’s Sinopec. Tawke is operated by DNO, which is controlled by the UAE’s RAK Petroleum. Sheikhan is operated by Gulf Keystone Petroleum.
The companies have publicly welcomed the promised payments and their share prices surged after the announcement.
But the dispute over the control of oil exports adds another layer of uncertainty as their costs in the region continue to run well ahead of the paltry and intermittent payments.
Meanwhile, Sharjah-based Dana Gas has made final arguments to the international arbitration court in London for back payments of more than $2 billion it is owed by the KRG. Dana Gas is not an oil exporter, but it operates the Khor Mor and Chemchemal gasfields held through a 40 per cent share of Pearl Petroleum,
The court has ruled in favour of Dana Gas in its long-running dispute and will deliver its judgment in a few weeks. Dana Gas’s only practical course of action to recover the arrears would be to try to seize KRG’s assets in foreign jurisdictions – the disputed oil cargoes it is marketing internationally, that is.
Patrick Allman-Ward, the chief executive of Dana Gas, said he would prefer to reach a negotiated settlement with KRG.
But the international companies have all said they were running out of patience as their finances were being squeezed and had stalled any future investment in the region until reliable payments could be maintained.
amcauley@thenational.ae
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The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
The biog:
Languages: Arabic, Farsi, Hindi, basic Russian
Favourite food: Pizza
Best food on the road: rice
Favourite colour: silver
Favourite bike: Gold Wing, Honda
Favourite biking destination: Canada
ENGLAND SQUAD
For first two Test in India Joe Root (captain), Jofra Archer, Moeen Ali, James Anderson , Dom Bess, Stuart Broad , Rory Burns, Jos Buttler, Zak Crawley, Ben Foakes, Dan Lawrence, Jack Leach, Dom Sibley, Ben Stokes, Olly Stone, Chris Woakes. Reserves James Bracey, Mason Crane, Saqib Mahmood, Matthew Parkinson, Ollie Robinson, Amar Virdi.
Cherry
Directed by: Joe and Anthony Russo
Starring: Tom Holland, Ciara Bravo
1/5
MATCH INFO
Barcelona 4 (Messi 23' pen, 45 1', 48', Busquets 85')
Celta Vigo 1 (Olaza 42')
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Richard Jewell
Director: Clint Eastwood
Stars: Paul Walter Hauser, Sam Rockwell, Brandon Stanley
Two-and-a-half out of five stars
At Everton Appearances: 77; Goals: 17
At Manchester United Appearances: 559; Goals: 253
Gender equality in the workplace still 200 years away
It will take centuries to achieve gender parity in workplaces around the globe, according to a December report from the World Economic Forum.
The WEF study said there had been some improvements in wage equality in 2018 compared to 2017, when the global gender gap widened for the first time in a decade.
But it warned that these were offset by declining representation of women in politics, coupled with greater inequality in their access to health and education.
At current rates, the global gender gap across a range of areas will not close for another 108 years, while it is expected to take 202 years to close the workplace gap, WEF found.
The Geneva-based organisation's annual report tracked disparities between the sexes in 149 countries across four areas: education, health, economic opportunity and political empowerment.
After years of advances in education, health and political representation, women registered setbacks in all three areas this year, WEF said.
Only in the area of economic opportunity did the gender gap narrow somewhat, although there is not much to celebrate, with the global wage gap narrowing to nearly 51 per cent.
And the number of women in leadership roles has risen to 34 per cent globally, WEF said.
At the same time, the report showed there are now proportionately fewer women than men participating in the workforce, suggesting that automation is having a disproportionate impact on jobs traditionally performed by women.
And women are significantly under-represented in growing areas of employment that require science, technology, engineering and mathematics skills, WEF said.
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Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
Teachers' pay - what you need to know
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
'Munich: The Edge of War'
Director: Christian Schwochow
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
Rating: 3/5
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 178hp at 5,500rpm
Torque: 280Nm at 1,350-4,200rpm
Transmission: seven-speed dual-clutch auto
Price: from Dh209,000
On sale: now
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