A deal between Iraq's federal government and the Kurdistan Regional Government will allow oil from northern fields to start flowing again to Turkey's Ceyhan port, but many hurdles need to be overcome before the two sides can finally settle their long-running dispute, analysts tell The National.
The flow of about 450,000 barrels of oil per day from the semi-autonomous region and from fields in Kirkuk operated by the federal government were halted last month after an international arbitration ruling said Turkey breached a 1973 treaty with Iraq by allowing the Kurds to export oil without Baghdad’s permission through the northern pipeline.
Despite the deal signed on Tuesday, complications could arise due to a combination of unresolved issues, including the uncertain status of existing contracts that the KRG signed with international oil companies, which Baghdad has long considered unconstitutional.
Meanwhile, KRG debt to oil companies and traders, thought to be between $4 billion and $6 billion, and the task of turning a “temporary” deal into permanent legislation, could be other stumbling blocks.
Iraqi Prime Minister Mohammed Shia Al Sudani said last week that a federal oil and gas law would be revisited to settle how Baghdad and the Kurdish region co-operate on energy issues, outlined in a number of brief articles in the 2005 Iraqi constitution.
The 2005 document calls for the issue to be clarified in a law, but several draft bills presented since 2007 have not been passed by a fractious parliament.
The Kurds began exporting oil independently in 2012, first by lorry and then by pipeline from 2014, worsening a bitter row over energy. Baghdad reacted by withholding the Kurdish region’s share of the budget that it is entitled to under the constitution.
There are people in Baghdad who don’t even believe that the KRG should be in control of any natural resources. My view is that talks will drag on.
Noam Raydan,
regional energy analyst
Baghdad argued that the Kurds had violated the constitution by exporting oil independently, as well as by signing oil contracts known as Production Sharing Agreements that gave oil companies a percentage of the oil to be marketed.
Baghdad said this breached Article 111 of the constitution, which states that “oil and gas are owned by all the people of Iraq in all the regions and governorates”.
Noam Raydan, a regional energy analyst who works in Baghdad and Beirut, explained the possible stumbling blocks ahead.
“The oil and gas law is very controversial. There are people in Baghdad who don’t even believe that the KRG should be in control of any natural resources. My view is that talks will drag on. Another issue to bear in mind is Turkey, which is waiting for compensation fees from Baghdad — so we need to know if Turkey is willing to resume exports through the pipeline to Ceyhan before Baghdad pays the fees. Iraq Oil Report was the only one that highlighted this issue, and it’s important.”
Ms Raydan was referring to part of the arbitration court ruling that said Iraq had not paid what the industry calls throughput fees for use of the pipeline by the federal government, allegedly dating back decades. Iraq has been ordered to pay a sum of $1.5 billion as part of the settlement, according to Reuters.
She said the April 4 agreement was "just the beginning of a long process of negotiations over sticking points that could not be settled since 2005".
However, "the difference now is that the KRG is in a difficult financial situation and needs Baghdad for money”, she said.
The agreement says oil revenue from exports from Kurdish oilfields will be put into a jointly managed account monitored by Baghdad, while the oil will be marketed by the federal State Oil Marketing Organisation, Somo.
It is expected, but not confirmed, that Somo will have a senior board member from the Kurdish side, possibly from the region’s Ministry of Natural Resources.
This still leaves a question mark over Kurdish oil contracts.
Ali Shadad, a member of the Parliament’s Oil and Gas Committee, confirmed that all Kurdistan contracts will be reviewed and studied by a joint committee based on a Supreme Federal Court ruling in February last year.
The court decided a law regulating the oil industry that was passed in 2007 by the Iraqi Kurdistan parliament in Erbil, the regional capital, was unconstitutional. It demanded that Kurdish authorities hand over their crude supplies to Baghdad.
Acting on that ruling, the Ministry of Oil started to ask oil and gas firms operating in the region to sign new contracts with Somo rather than with the KRG.
“Some companies have expressed readiness to co-operate and offered concessions, while others may withdraw and those who refuse will be blacklisted,” Mr Shadad told The National without elaborating on the names of these companies.
Some companies have expressed readiness to co-operate and offered concessions, while others may withdraw and those who refuse will be blacklisted
Ali Shadad,
member of the Parliament’s Oil and Gas Committee,
“There is a possibility to change these contracts from production-sharing to service ones or reconsider their investment periods,” Mr Shadad added, referring to Baghdad’s preferred oil contract type, the Technical Service Contract.
In regard to the region’s commitments to the four companies contracted to market oil from the Kurdistan region and it lenders, Baghdad and Erbil agreed that the Oil Ministry reach “a legal settlement to solve these issues”, Mr Shadad said.
“But the payment will not be open,” he added, saying all claims will be reviewed by the Oil Ministry and the Federal Board of Supreme Audit of Iraq.
“One of the options on the table is to pay them oil in lieu of cash from the oil produced and exported from Kurdistan,” he said.
“The meetings will continue with the developers and companies and the discussions will take time,” he added. “Iraq is keen to continue co-operation with these companies.”
According to an Oil Ministry official in Baghdad, the issue of developer’s rights according to production-sharing contracts and the marketers of Kurdistan oil are not included in the deal.
"This deal is temporary just to resume the oil exports," the official told The National.
“Joint committees will be formed later to study the contracts and reach a deal," he said.
Building Baghdad-Erbil ties
"The current government of PM Sudani appears keen to improve relations with the Kurdistan Regional Government. The new PM wants to stabilise his government and Kurdish support within parliament and the political environment are key,” said Yesar Al Maliki, Gulf analyst at the Middle East Economic Survey.
"The deal builds up on months of negotiations between both governments and is a second breakthrough after reaching a budget deal. Actually, it even solidifies the budget deal."
Some Kurdish politicians have been pushing for the federal government to restore monthly budget payments to the region of 17 per cent, an agreement loosely based on a 2005 estimate of the Kurdish region’s share of the population.
Iraq abolished this level of payment in 2017 when the KRG attempted to annex the oil-rich Kirkuk governorate, reducing it to 12.67 per cent of the budget, which the federal government claimed was closer to a UN estimate of the Kurdish region’s population.
With the current budget draft, the KRG would receive record monthly sums, even at this level — providing current oil prices hold.
"While temporary, the deal allows exports to Ceyhan to continue and for the first time gives Baghdad an active role in the Kurdish oil and gas sector. For Erbil, it ensures higher revenues and a budget share,” Mr Al Maliki said.
He said that despite the complexity of the issues, agreement on an oil and gas law would be a stride forward for Iraq’s stability.
“For the future, it is a milestone in a trust-building exercise that could see both parties agreeing to an oil and gas law which is key to normalise petroleum sector management countrywide. Also, to end all historic disputes between the region and the central government,” he said.
Anxiety and work stress major factors
Anxiety, work stress and social isolation are all factors in the recogised rise in mental health problems.
A study UAE Ministry of Health researchers published in the summer also cited struggles with weight and illnesses as major contributors.
Its authors analysed a dozen separate UAE studies between 2007 and 2017. Prevalence was often higher in university students, women and in people on low incomes.
One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.
It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."
Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.
“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi.
“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."
Daniel Bardsley
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Changing visa rules
For decades the UAE has granted two and three year visas to foreign workers, tied to their current employer. Now that's changing.
Last year, the UAE cabinet also approved providing 10-year visas to foreigners with investments in the UAE of at least Dh10 million, if non-real estate assets account for at least 60 per cent of the total. Investors can bring their spouses and children into the country.
It also approved five-year residency to owners of UAE real estate worth at least 5 million dirhams.
The government also said that leading academics, medical doctors, scientists, engineers and star students would be eligible for similar long-term visas, without the need for financial investments in the country.
The first batch - 20 finalists for the Mohammed bin Rashid Medal for Scientific Distinction.- were awarded in January and more are expected to follow.
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Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
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THE SPECS
Jaguar F-Pace SVR
Engine: 5-litre supercharged V8
Transmission: 8-speed automatic
Power: 542bhp
Torque: 680Nm
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Mohammed bin Zayed Majlis
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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Results:
CSIL 2-star 145cm One Round with Jump-Off
1. Alice Debany Clero (USA) on Amareusa S 38.83 seconds
2. Anikka Sande (NOR) For Cash 2 39.09
3. Georgia Tame (GBR) Cash Up 39.42
4. Nadia Taryam (UAE) Askaria 3 39.63
5. Miriam Schneider (GER) Fidelius G 47.74
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The specs: 2018 Renault Koleos
Price, base: From Dh77,900
Engine: 2.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 170hp @ 6,000rpm
Torque: 233Nm @ 4,000rpm
Fuel economy, combined: 8.3L / 100km
The specs: 2019 Audi A7 Sportback
Price, base: Dh315,000
Engine: 3.0-litre V6
Transmission: Seven-speed automatic
Power: 335hp @ 5,000rpm
Torque: 500Nm @ 1,370rpm
Fuel economy 5.9L / 100km
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Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
The years Ramadan fell in May
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Engine: 80 kWh four-wheel-drive
Transmission: eight-speed automatic
Power: 402bhp
Torque: 760Nm
Price: From Dh280,000
The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
Zayed Sustainability Prize
KILLING OF QASSEM SULEIMANI
Killing of Qassem Suleimani
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Zayed Sustainability Prize
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The five pillars of Islam
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Why does a queen bee feast only on royal jelly?
Some facts about bees:
The queen bee eats only royal jelly, an extraordinary food created by worker bees so she lives much longer
The life cycle of a worker bee is from 40-60 days
A queen bee lives for 3-5 years
This allows her to lay millions of eggs and allows the continuity of the bee colony
About 20,000 honey bees and one queen populate each hive
Honey is packed with vital vitamins, minerals, enzymes, water and anti-oxidants.
Apart from honey, five other products are royal jelly, the special food bees feed their queen
Pollen is their protein source, a super food that is nutritious, rich in amino acids
Beewax is used to construct the combs. Due to its anti-fungal, anti-bacterial elements, it is used in skin treatments
Propolis, a resin-like material produced by bees is used to make hives. It has natural antibiotic qualities so works to sterilize hive, protects from disease, keeps their home free from germs. Also used to treat sores, infection, warts
Bee venom is used by bees to protect themselves. Has anti-inflammatory properties, sometimes used to relieve conditions such as rheumatoid arthritis, nerve and muscle pain
Honey, royal jelly, pollen have health enhancing qualities
The other three products are used for therapeutic purposes
Is beekeeping dangerous?
As long as you deal with bees gently, you will be safe, says Mohammed Al Najeh, who has worked with bees since he was a boy.
“The biggest mistake people make is they panic when they see a bee. They are small but smart creatures. If you move your hand quickly to hit the bees, this is an aggressive action and bees will defend themselves. They can sense the adrenalin in our body. But if we are calm, they are move away.”
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
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The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
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Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Zayed Sustainability Prize
