Wednesday, March 12, 2025
“Major achievement”: Iraq, BP ink deal to boost Kirkuk oil output, 12 MARCH
“Major achievement”: Iraq, BP ink deal to boost Kirkuk oil output
Shafaq News/ On Monday, the Iraqi Ministry of Oil, represented by the North Oil Company (NOC) and the North Gas Company (NGC), signed a contract with British energy giant BP to develop the Kirkuk oil fields.
In a statement, Deputy Prime Minister for Energy Affairs and Oil Minister Hayyan Abdul-Ghani called the contract signing for the development of NOC fields a “major achievement” for both the ministry and the company, especially after a period of stagnation.
The development and rehabilitation efforts will boost national production, and increase gas investment and production to support electricity generation, he noted, emphasizing that "the ministry is focused on maximizing the state's oil and gas resources, which will positively impact the federal budget's financial resources.”
The contract reportedly includes the rehabilitation and development of the four Kirkuk oil fields (the Baba and Avana domes, Bai Hassan, Jambur, and Khabbaz,) along with the rehabilitation and expansion of gas facilities at the NOC.
Last week, a delegation from BP visited the North Oil Company’s headquarters to finalize steps for rehabilitating the four fields.
The Iraqi government, in February, signed an agreement with the British company to develop Kirkuk’s fields and ensure “the optimal utilization of energy resources.”
AJ 📢Update on Iraq’s Brewing Energy Crisis, 12 MARCH
AJ
Update on Iraq’s Brewing Energy Crisis'
Iraq's exemption for importing gas and electricity from Iran was lifted on March 8, 2024. This prompted the Chairman of the Economic Committee of the Iraqi Parliament to meet with the U.S. Charge d'Affaires in Baghdad the previous night.
He emphasized that preventing the import of Iranian gas by the U.S. would have catastrophic consequences for the people of Iraq, especially in the summer, as it would lead to the collapse of the country's state electricity system.
The Iraqi Parliament Economic Committee's press office reported that Atwan Al-Atwani, the Chairman of the Committee, met with Daniel Rubenstein, the U.S. Charge d'Affaires, and his accompanying delegation. Al-Atwani pointed out the importance of this meeting in the current sensitive situation and emphasized the need for continuous communication to rectify the relations between the two countries.
The U.S. Charge d'Affaires responded during the meeting, stating that he understood the issues raised by Al-Atwani concerning energy and banking sanctions and promised to relay these messages to the U.S. government in hopes of finding permanent solutions that would serve the interests of both nations. He also noted that sanctions have not yet included the import of natural gas.
On the other hand, the U.S. Ambassador, while expressing sympathy for the issues Al-Atwani raised, especially regarding energy and banking sanctions, promised to convey these messages to his government. He expressed hope that permanent solutions and measures could be found to address these issues in a way that benefits both nations.
Daniel Rubenstein also emphasized that natural gas imports have so far been outside the "sanctions framework."
Under the March 2024 agreement, Iran committed to exporting 50 million cubic meters of gas per day to Iraq, a contract valued at about six billion dollars annually. In addition, in July 2022, Iraq signed a five-year contract to purchase 400 megawatts of electricity from Iran.
In recent years, Iraq has been working to reduce its dependence on Iranian gas. Several projects have been initiated to secure energy from other sources. In October 2024, Iraq signed an agreement to import 20 million cubic meters of gas per day from Turkmenistan, which could serve as an alternative to Iranian gas.
Another possibility is purchasing LNG from Qatar. Iraq is building an LNG storage terminal in the Faw port, where Qatar is likely to be the main supplier. Additionally, the Qatar-Turkey gas pipeline, which was halted in 2009 but has since regained attention following the fall of Bashar al-Assad's regime, could also provide an alternative.
Initially, the Qatar gas pipeline was planned to pass through Saudi Arabia and Syria, reaching Turkey and then to Europe. The pipeline also passes near Iraq’s border, and it is said that it could supply gas to the country’s power plants and industries.
Furthermore, connecting Iraq to the Gulf Cooperation Council’s electricity grid could reduce Iraq’s dependence on Iran. This project includes an electricity transmission line from Kuwait to Basra, which could supply Iraq’s electricity needs.
Additionally, a $27 billion contract has been signed with Total Energy to develop gas fields. In July 2023, Iraq and Total Energy, a French company, signed a $27 billion contract to increase oil production and enhance the country’s energy production capacity with four oil, gas, and renewable energy projects.
It is important to note that these solutions require time and significant investment. In the short term, Iraq remains dependent on Iranian gas, and finding an immediate alternative is difficult.
In this context, three Iraqi energy officials told Reuters on Sunday that Iraq has no immediate alternative to replace the energy it imports from Iran, which will lead to significant issues in providing enough electricity for domestic consumption, especially in the summer.
One senior official from Iraq’s Ministry of Electricity told Reuters, “The government has started taking urgent measures to reduce the impact of the U.S. decision on Iraq’s electricity supply.”
US sanctions on Iran leave Iraq in a difficult position, analyst says, 12 MARCH
US sanctions on Iran leave Iraq in a difficult position, analyst says
Shafaq News/ The administration of US President Donald Trump is pursuing its policy of “maximum pressure” against Iran without regard for its impact on Iraq, political analyst Nizar Haidar said on Tuesday.
“Unfortunately, the Trump administration does not care about the collateral effects Iraq may suffer due to this policy,” Haidar told Shafaq News. “The White House sees Iraq as an incidental casualty of sanctions that will only tighten over time. Washington believes this is Baghdad’s problem, not its own, particularly concerning the US dollar, electricity, and gas.”
The US waiver allowing Iraq to import Iranian gas for electricity generation expired on March 8, 2025, preventing Baghdad from purchasing the gas needed to operate its power plants.
Dependence on Iranian Gas
Haidar criticized Iraqi policymakers for failing to anticipate the fallout from these sanctions and for not adopting independent national strategies in the energy sector. “Iraq should have foreseen these scenarios long before they materialized,” he said. “Yet, it has delayed too much due to its failure to implement true national policies in electricity and gas.”
He pointed to Baghdad’s reliance on Iranian gas as a primary vulnerability, attributing it to political influence within Iraq. “Despite knowing the risks, Iraq has remained dependent on Iranian gas to fully meet its energy needs. This dependence persists because of the influence of Tehran’s proxies, including political leaders and militia commanders, who have obstructed alternative solutions.”
Haidar outlined three key failures in Iraq’s energy strategy:
-Reliance on gas-powered plants: Iraq has insisted on using gas-fired power plants for the past two decades, deepening its dependence on Iranian gas, which is subject to US sanctions.
-Rejection of alternative gas supplies: Iraq has dismissed initiatives to diversify its gas imports, including a Qatari proposal offering gas at a preferential price. “Proxies of Iran blocked this project from advancing,” Haidar noted.
-Failure to utilize domestic gas resources: Iraq has repeatedly stalled or abandoned projects to capture associated gas from its oil fields. “Due to gas flaring, Iraq loses more than $12 billion annually,” he said.
However, Iraqi officials say they have yet to receive a formal notification of the decision. “The Ministry of Electricity has not received any official notice from the American side or the US embassy regarding this matter so far,” ministry spokesperson Ahmed Mousa told Shafaq News.
SANDY INGRAM CC HIGHLIGHTS NOTES: Iraq in Serious Trouble US is the Reason #iqd Rate, 12 MARCH
SANDY INGRAM CC HIGHLIGHTS NOTES
Highlights
Summary
In this video, Sandy Ingram discusses the precarious situation faced by Iraq following the expiration of a U.S. waiver that previously allowed the country to import electricity from Iran without incurring sanctions.
The implications of this decision are profound, as Iraq’s reliance on Iranian energy is substantial, and the lack of an alternative energy source poses a significant risk to the country’s stability. With a history marred by war and corruption, Iraq struggles with electricity shortages, particularly during the scorching summer months.
The expiration of the waiver could lead to widespread protests among citizens who face the prospect of increased power outages and the potential for a humanitarian crisis. The U.S. aims to pressure Iran regarding its nuclear program, yet the consequences of this strategy could destabilize Iraq further. As the Iraqi government seeks alternatives and grapples with its energy crisis, the video underscores the complex interplay of international relations, local governance, and the impact on everyday citizens.
- ⚡ U.S. Waiver Expiration: The U.S. has chosen not to renew a waiver allowing Iraq to import electricity from Iran, raising concerns about energy shortages.
- 🌍 Iranian Energy Dependence: Iraq’s heavy reliance on Iranian gas and electricity due to decades of war and poor management leaves it vulnerable to energy crises.
- 🔥 Summer Electricity Crisis: With summer temperatures soaring above 50°C, electricity failures can turn life-threatening, especially for vulnerable populations.
- 📉 Potential Protests: Iraqi citizens are likely to protest against the government if electricity shortages worsen, highlighting the fragility of public support.
- 💰 Financial Constraints: Iraq has significant funds allocated for Iranian gas but can only use them for humanitarian purposes, complicating energy procurement.
- ⚖️ U.S. Foreign Policy Impact: The U.S. aims to restrict Iran’s capabilities but risks destabilizing Iraq, which could have broader geopolitical consequences.
- 🚨 Simultaneous U.S. Energy Issues: The U.S. faces its own electricity challenges, as highlighted by potential power shutoffs in states amid trade tensions with Canada.
Key Insights
⚡ Impact of Energy Sanctions on Iraq: The expiration of the U.S. waiver significantly affects Iraq’s energy stability. This decision reflects a broader strategy aimed at curbing Iran’s influence in the region but disregards the immediate needs of Iraqi citizens. The reliance on Iranian energy is a direct result of years of conflict and mismanagement, and the sudden withdrawal of support could lead to dire consequences for the populace.
🌍 Humanitarian Concerns Amid Political Maneuvering: The U.S. stance on sanctions is intertwined with humanitarian implications. While the intention may be to limit Iran’s power, the inability of Iraq to secure energy could lead to humanitarian crises. With extreme summer temperatures, the lack of electricity could cause health emergencies, particularly among the elderly and infants, thus highlighting the need for a balance between international policy and local humanitarian needs.
🔥 Public Sentiment and Government Stability: The potential for public protests in Iraq due to electricity shortages illustrates the fragile nature of the current government. Citizens have historically demonstrated against poor governance and service delivery, and worsening electricity failures could trigger widespread unrest. This reflects the broader trend in the Middle East, where government legitimacy is often tied to the ability to provide basic services.
📉 Economic Strain and Resource Allocation: Iraq’s financial situation complicates its energy crisis. Despite having funds set aside for gas imports, restrictions on their use limit the government’s ability to address the immediate energy needs of its citizens. This situation underscores the challenges faced by governments in crisis, where financial resources are often tied up in bureaucratic or international constraints.
⚖️ Geopolitical Tensions and Local Consequences: The U.S.'s pressure on Iran through sanctions could have unintended consequences on Iraq, a country already struggling with governance and infrastructure challenges. The lack of a cohesive energy strategy may exacerbate tensions within Iraq, leading to both civil unrest and a potential humanitarian crisis. This highlights the interconnectedness of geopolitical strategies and local realities.
🚨 Broader Implications of Energy Dependency: The reliance on a single source for energy exposes Iraq to risks not only from external powers like Iran but also from fluctuations in international policy. As Iraq seeks to diversify its energy sources, the transition may be slow and fraught with challenges, affecting overall national stability and the daily lives of citizens.
💡 Searching for Alternatives: Iraq is actively seeking alternative energy sources, but the transition will take time and resources. This situation presents both a challenge and an opportunity for Iraq to explore sustainable energy solutions, potentially leading to long-term benefits if managed effectively. However, immediate needs must be met to prevent further deterioration of public order.
In conclusion, the video sheds light on the intricate web of political, economic, and social factors influencing Iraq’s energy crisis. As the country grapples with the repercussions of U.S. foreign policy, the potential for unrest looms large, underscoring the need for immediate action to secure energy independence and ensure the safety and wellbeing of its citizens. The interplay between international relations and local governance remains a critical area of concern for Iraq’s future stability.
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