Generic Hero BannerGeneric Hero Banner
Latest Market News

Iraq and KRG reach deal on 2021 budget

  • Spanish Market: Crude oil
  • 20/12/20

Baghdad has reached a deal with the Kurdistan Regional Government (KRG) in northern Iraq over the 2021 economic budget, which could pave the way for its approval within a week, according to finance minister Ali Allawi.

"The ministry reached an agreement with [the Kurdistan region] on the 2021 budget, and the present delegation is discussing its allocations for the year 2020," Allawi was quoted as saying by state-owned news agency Ina.

The draft budget — which requires parliamentary approval — assumes an oil price of $42/bl next year and crude exports of 3.25mn b/d. It could now reach parliament for a vote "within a week", Allawi said.

The 2021 draft budget is based on oil revenues of 73 trillion Iraqi dinar ($60.9bn), representing only 80pc of total government revenues. This is down from as high as 90pc in some previous budgets.

But Allawi did not address the issue of KRG oil exports — an issue which has caused delays to the progression of the draft budget. He only said "the Kurdistan region exports its oil at prices that are less than [state-owned marketer] Somo oil by $5/bl to $7/bl."

The draft budget states that the KRG must hand over 250,000 b/d of crude to Somo in order to receive its share of the federal budget, a clause that has long been a point of contention between Baghdad and Erbil.

The KRG has said it is unable to hand this over to Somo because of its long-term contracts with trading companies that previously provided loans, an Iraqi official told Argus last week, adding that politicians would need to find financial solutions in order to move forward.

Under the draft budget, Baghdad has agreed to pay transport costs for this 250,000 b/d of crude through the KRG export pipeline to the Turkish port of Ceyhan, in addition to 100,000 b/d of Kirkuk crude that the federal government currently exports through the pipeline. KRG crude exports have averaged around 415,000 b/d so far this year, which means it would have to pay the transport costs for the remaining 165,000 b/d itself.

Another sticking point has been plans by the government to devalue the Iraqi dinar in an attempt to help it navigate the liquidity crisis that was brought on by the collapse in oil prices earlier this year. A decision to move ahead with the plan was taken by the central bank yesterday, announcing that it had set the new rate at ID1,450 per dollar.

"The central bank will add a margin to the specified price," Allawi said. "The margin that the central bank will add will not be large and may reach ID1,490."

This is down from the earlier exchange rate of ID1,182 that had been in place since December 2015. A weaker dinar should help the government's balance sheet. The high cost of salaries has been difficult for Baghdad to cover in a low oil price environment.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

18/02/25

Guyana unfazed by Trump’s ‘drill, baby, drill’ vow

Guyana unfazed by Trump’s ‘drill, baby, drill’ vow

Georgetown, 18 February (Argus) — Guyana, one of the fastest-growing crude producers in the world, sees little threat from US President Donald Trump's pledge to flood global markets with cheap supplies. Despite Trump's vow to scrap a slew of regulations he claims are holding back US oil producers, Guyana's vice president Bharrat Jagdeo does not expect there to be a "major supply response." "If the prices come down, as President Trump wants, then it would also make some of the existing operations in the US — particular with (hydraulic fracturing) fracking — it may make them not feasible," Jagdeo said on the first day of the Guyana Energy Conference and Supply Chain Expo in Georgetown, Guyana, on Tuesday. Guyana's low breakeven costs and the quality of its crude will help it to maintain a competitive advantage going forward, he said. The vice president shrugged off concerns over the oil market as concerns grow over waning demand from China, the top importer. He pointed out that ExxonMobil just started the approval process for its seventh and eighth projects in the giant Stabroek block offshore Guyana, where the discovery of oil in 2015 has transformed the economic fortunes of the tiny South American nation. "They (ExxonMobil) study the oil markets, they probably know the oil markets more than any government official," Jagdeo said. "Clearly they see in the future a demand for fossil fuel, and they believe that in Guyana we have a unique opportunity to supply that market." Demand for fossil fuels is likely to remain "relatively high" for the foreseeable future while renewable sources lag behind, he said. Guyana, located on South America's northern coast bordering Venezuela, Suriname, and Brazil, has become a fast-growing non-Opec supplier since oil was first pumped in 2019. Output has accelerated to 650,000 b/d from zero in the space of around five years. And gross output is seen growing further to 1.3mn b/d by the end of the decade as new projects come online. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Нефтетранспорт - НТС: правила на рынке меняются


18/02/25
18/02/25

Нефтетранспорт - НТС: правила на рынке меняются

Moscow, 18 February (Argus) — Ситуация в сегменте железнодорожной транспортировки нефтеналивных грузов остается сложной. О причинах, приведших к этому, взаимодействии с грузоотправителями и планах строительства нового парка рассказал Argus генеральный директор Нефтетранссервиса (НТС) Сергей Ермолаев. — Как вы охарактеризуете текущую ситуацию на рынке перевозок нефтяных грузов по железной дороге? — Наблюдаем падение грузооборота и тоннажа отправок. Меры РЖД, которые должны были вернуть отправителям веру в надежное обеспечение парком, а также дать гарантии вывоза груза, пока не привели к результату. — Какие факторы к этому привели? В чем основные сложности для НТС? — Сегодня всем непросто, и наше положение не отличается от других субъектов экономики. Ограничения экспорта топлива из России, полное закрытие границ Казахстана на заезд порожнего парка цистерн, атаки на перерабатывающую и транспортную инфраструктуру, тарифные инициативы перевозчика, рост ключевой ставки Центрального банка России (ЦБР) — все это делает невозможным долгосрочный прогноз. А без прогноза нет инвестиций. В такой ситуации рынок выбирает простые схемы купил-продал. Это давит на переработку, на наших клиентов и на нас, соответственно. — НТС является одним из основных перевозчиков нефтеналивных грузов с заводов Роснефти. Как оцениваете итоги работы по этим долгосрочным контрактам? Как, на ваш взгляд, будет строиться дальнейшее сотрудничество с нефтяной компанией после завершения договора в конце I квартала 2026 г.? — Роснефть — наш главный клиент. Несмотря на то, что ни один из основных параметров, лежавших в основе долгосрочных договорных отношений, не сохранился в изначальном виде, компания чутко и оперативно адаптируется к новым обстоятельствам. В настоящее время мы совместно с коллегами выверяем позиции перед будущим тендером. У всех появился новый опыт, который должен быть учтен в новом цикле. Работа непростая, времени осталось совсем немного, но мы надеемся успеть вовремя. Разумеется, речь о ценах пока не идет. Нашей задачей является описать взаимные обязательства так, чтобы они имели ясные критерии исполнения и могли бы быть оцифрованы ставкой в ходе тендера. — Рынок в этом году столкнется со значительным выбытием нефтебензиновых цистерн. Планирует ли НТС покупки новых вагонов? — Мы ждем снижения ставки ЦБР, а точнее сужения разрыва между инфляцией и стоимостью кредитов. Также мы ждем, что из-за уменьшения заказов на постройку нового парка вагоностроители пересмотрят свою рентабельность до разумных уровней. Вероятно, после этого мы сможем начать постройку парка. Не исключено и принудительное снижение срока службы вагонов. Это создаст дефицит, увеличит требования к доходности нового парка из-за неопределенности будущего срока окупаемости. Тогда тоже можно будет строить. Но мы надеемся, что этого не произойдет: в условиях ограниченных ресурсов вряд ли нужно утилизировать то, что еще может послужить. Да и нагружать экспортеров новыми затратами странно, когда Россия нуждается в экспортных доходах. — Планирует ли НТС в ближайшее время развивать перевозки другой номенклатуры грузов, помимо нефтеналивных? — Мы всегда в поиске. Но вход в новые рынки требует хорошей аналитики, а сейчас мы находимся в ситуации отмены всех известных нам правил и принципов. В результате вся предыдущая статистика оказывается слабо применима. Если какие-то идеи выдержат и эти условия, обязательно их реализуем. Нефтетранссервис (НТС) Является одним из лидеров на рынке железнодорожных перевозок нефти и нефтепродуктов, парк в управлении превышает 35 тыс. единиц. Помимо вагонов-цистерн и локомотивов, холдингу принадлежат производственные предприятия в Центральном, Приволжском, Южном и Дальневосточном федеральных округах. Более 19 лет НТС сотрудничает с ведущими компаниями топливно-энергетического комплекса России. Сергей Ермолаев В 1997 г. окончил Московскую государственную академию приборостроения и информатики, в 2009 г. — Академию народного хозяйства при правительстве Москвы. В разные периоды времени занимал руководящие должности в сфере организации железнодорожных перевозок сначала в Северной грузовой компании, а затем в НТС, где в течение 2013—2021 гг. возглавлял коммерческое управление перевозок наливных грузов, направления логистики и эксплуатации подвижного состава. В начале 2022 г. был приглашен в Национальную транспортную компанию на должность коммерческого директора. С июня 2024 г. — генеральный директор НТС. Вы можете присылать комментарии по адресу или запросить дополнительную информацию feedback@argusmedia.com Copyright © 2025. Группа Argus Media . Все права защищены.

Nigeria cuts oil theft, upbeat on output growth plan


18/02/25
18/02/25

Nigeria cuts oil theft, upbeat on output growth plan

Lagos, 18 February (Argus) — Nigeria's upstream regulator NUPRC said losses from oil theft have fallen to just 5,000 b/d, down from 15,000 b/d in August of last year. At its peak in 2018, theft was costing Nigeria as much as 150,000 b/d, according to the Nigeria Extractive Industries Transparency Initiative. Sustained security interventions by the government have been successful in tackling the problem, said NUPRC chief executive Gbenga Komolafe. "Oil theft has significantly reduced to 5,000 b/d, leading to a steady [liquids] production increase to 1.7mn b/d," he added. State-owned oil firm NNPC said security measures have led to around 1,861 illegal connections being removed from pipelines, while 677 points of vandalism were found and fixed over the past 12 months. About 4,124 illegal refineries and 1,897 boats laden with stolen crude were also destroyed within the same period, NNPC said. NUPRC said last year that a forensic study showed 40pc of losses previously attributed to theft in 2020–22 were caused by metering inaccuracies. In July last year, the regulator launched an audit of Nigeria's 187 upstream flow stations to determine where meters are outdated or broken and which designated measurement points lack the required equipment. The audit was to have been completed by November 2024 but an NUPRC source told Argus that it is only being completed now. Komolafe also said a programme that aims to add 1.07mn b/d to Nigeria's liquids output by December 2026 is on track. The ambitious initiative aims to leverage "collaboration among operators, service providers, financiers and host communities", Komolafe said. The programme forecasts an injection of $1.45bn of capital into Nigerian oil blocks under joint venture agreements, $1.11bn into blocks under production-sharing contracts and $650mn into blocks under sole risk contracts. This investment will respectively yield additional output of 470,800 b/d, 224,700 b/d and 374,500 b/d, according to NUPRC. Nigeria has struggled with mobilising upstream investment in the past and has consistenly fallen short of less ambitious production growth targets in recent years. But an NUPRC source told Argus that easy wins are possible under the latest output growth programme, including 42,800 b/d from restarting shut-in wells, 74,900 b/d from the ramp-up of fields recently brought online, 96,300 b/d from drilling new wells and 256,800 b/d from well re-entry. The chief executive of local operator Heirs Energies, Osayande Igiehon, said his company restarted 40 shut-in wells in oil block OML 17, which the company operates with a 45pc stake in a joint venture with NNPC, between the third quarter of last year and 11 February this year. Production has risen to 55,000 b/d, up from 35,000 b/d in January of last year, he said. Nigeria has "the infrastructure in place to deliver up to 2mn b/d, more than 2mn b/d, but a lot of it is shut in, is closed in or is poorly worked," Igiehon said. "Beyond 2mn b/d, we need to do a lot of greenfield investments onshore, in shallow water and in the deep water, investments that will take a longer gestation period," he said. NUPRC data show Nigeria's liquids production rose by 4pc on the month to 1.74mn b/d in January, of which 1.54mn b/d was crude, leaving the country 2.6pc above its Opec+ quota. Argus estimates put Nigeria's January crude production lower, at 1.51mn b/d . Nigeria's junior oil minister Heineken Lokpobiri said the government expects a significant portion of the country's targeted oil output growth will be condensate. The government is considering infrastructure interventions to reduce the co-mingling of crude and condensate, further separation of condensate streams from crude streams in transportation and storage, and to increase marketing of Nigerian output as condensate. By Adebiyi Olusolape Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU nears lifting sanctions on Syria


17/02/25
17/02/25

EU nears lifting sanctions on Syria

Munich, 17 February (Argus) — The EU will meet on 24 February to discuss lifting sanctions on Syria, EU high representative for foreign affairs Kaja Kallas said on Sunday. But internal European politics and concerns raised by Greece and Cyprus over Turkey's growing influence in the region could slow the process. Speaking to Argus on the sidelines of the Munich Security Conference, Kallas said the prospect of lifting sanctions on Syria "is looking promising". The EU Foreign Affairs Council is scheduled to meet on 24 February to discuss Syria and other issues affecting the Middle East. France on 14 February convened an international conference on Syria in Paris, bringing together representatives from G7 nations, the EU, the UN, the Arab League, and the Gulf Cooperation Council. The parties issued a final statement calling for support of Syria's political transition, but the US did not join that statement. US sources with knowledge of the matter told Argus that the issues raised in the statement are things Washington has not decided on, since US president Donald Trump's administration is still formulating its policy regarding Syria. Another source with knowledge of ongoing European talks on Syria said Greece and Cyprus are more reluctant to lift sanctions on Syria. Any EU action will have to be agreed upon by all of the bloc's members. Both countries are leery of ties between Turkey and the Syrian Islamist group Hayat Tahrir al-Sham (HTS), the dominant faction in the new Syrian government. Greece and Cyprus are worried about an oversized Turkish influence in the eastern Mediterranean following the collapse of the regime of Bashar al-Assad in December. Sanctions remain one of the biggest obstacles to Syria's recovery. Damascus has been struggling to secure crude and refined oil products through public tenders largely because of those sanctions. Shipowners remain cautious about sending vessels there over concerns tankers being sanctioned or stranded. Last month the US waived sanctions prohibiting energy trade with Syria, but the country is still under EU and UK sanctions, which may have narrowed the pool for bidding. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

China's CNOOC starts output at Brazil Buzios7 oil field


17/02/25
17/02/25

China's CNOOC starts output at Brazil Buzios7 oil field

San Francisco, 16 February (Argus) — China's state-controlled CNOOC has started output at the Buzios7 oil field offshore Brazil's Santos basin, the firm announced today. CNOOC has a 7.34pc interest in the project while Brazil's state-controlled Petrobras, which operates the field, holds 88.99pc, with the remaining 3.67pc owned by China's state-controlled CNPC Exploration and Development (CNODC). The Buzios oil field is expected to commission a total of 11 projects by 2027 with total output expected to reach 1.5mn b/d by then, although its production capacity totals up to 2mn b/d, CNOOC said earlier this year. The latest production at Buzios7 will bring the output of the Buzios oil field up to 1mn b/d in the second half of 2025, CNOOC said. Buzios7 is located at a water depth of 1,900-2,200m and is also the sixth project commissioned from the oil field. The Buzios7 project includes a floating, production, storage and offloading (FPSO) and subsea production system. The FPSO can produce up to 225,000 bl of crude, process 12mn m³/d of natural gas and store 1.4mn bl of crude. It is also equipped with closed flare to reduce greenhouse gas emissions, and heat recovery devices to reduce energy consumption, CNOOC said. CNOOC expects a slightly smaller share of output from overseas projects, or around 31-33pc from 2025-27, from previous expectations of 33-34pc, although it did not provide a breakdown on actual output forecasts. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more